Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-08-21
Defense operation
May Spur Trade Of
j. ). and Canada
Dominion's Economy
Is Already Closely
Geured to Ours
By OLIVER MCKEE.

Closer trade and economic rela-
lions between United States and
Canada are likely to result from the
plans for cooperation in defense,
Department of Commerce experts
predicted today.
Like the United States, Canada
will lose most of her export market
in Europe if the axis powers win
the war and established a closed
economy on the continent.
Canada's economy already Is
closely geared to that of the United
States. The two countries usually
share prosperity and hard times
together. If business in this country
continues to improve, the United
States is likely to increase its pur-
chases of Canadian products.
Canada's war effort, now large, is
expected to expand still further, as
Britain mobilizes the resources of
the empire in the battle against the
axis powers. In the expansion,
Canada may need financial assist
ance from the United States and
It Is believed this question will be
studied as an aftermath Of the de-
tense agreement between the two
countries. The possibilities OF
standardizing tanks, trucks, and
other defense supplies manufactured
in the two countries may also be
considered.
Director James w. Young Of the
Bureau of Foreign and Domestic
Commerce reported today that en-
ployment in Canada, due to the
large war orders on hand, had
reached a new high level. Since the
war, Canada has been buying much
larger quantities of American goods.
During the 10-month period ending
in June, Canada's imports from the
United States were valued at $780,
100000, as compared with $685.
600 1000 for the corresponding period
in 1938-1939.
War Materials Large Item.
War materials bulk large in the
increased shipments from the United
States. In addition to aircraft,
Canada has stepped up its purchases
of American coal, petroleum, iron
and steel, metal working machinery,
tractors and industrial chemicals.
Imports into the United States
from Canada also have increased.
For the 10-month period, according
to Department of Commerce figures,
these imports were valued at $342.-
900 900, as compared with $247 ,000, 900
for the corresponding period in 1888
1899. As a result of the virtual
elimination of the Scandinavian
countries as q source of supply, the
United States is buying much more
Canadian newsprint paper and wood
pulp. Our purchases Of Canadian
nickel. fertilizers, asbestos and furs
have likewise increased.
Canada is an important source
of strategic materials for the United
States. The Dominion furnishes
this country with most Of the nickel
used in industry and national de-
tense. Canada also has valuable
supplies of asbestos, radium, mer-
curry, aluminium and several other
materials Of strategic Importance.
Surplus Wheat Is Problem.
One of the biggest economic prob
lens faced by Canada today is that
of the surplus of wheat and its
storage. Last years crop was q
good one, leaving a carry-over Of
about 28O,000,0 900 bushels. There
will be another bumper crop this
year. with an estimated production
of 40O,000,0 900 bushels. The United
States can offer little outlet for
Canadian wheat. The war has
eliminated the European market.
and the United Kingdom buys wheat
from Australia and Argentina, as
well as Canada.
Canada's total exports to all for
eign countries in June were valued
at Sill ,000, 900, the highest figure in
a decade. The United Kingdom Is
Canadas best customer. For the
first six months of 1910, Canada's
exports were valued at $546 ,000, 900.
The United Kingdom and Canada.
In recent years, have been our two
best customers. The United States