Evening star., 1940-12-19
Cabinet Considerina
New Defense Setup:
British GetGo-Aheod
England Is Told
To Buy Pending
FinuI Finance Plan
BY BLAIR BOLLES.

BY BLAIR BOLLES.
President Roosevelt and Secretary
of the Treasury Morgenthau this
morning made a decision of vast
importance to the British cause, con-
Guiding that the British buying rep
resentatives should be given the 60
ahead sign at once to take all but
the final steps in negotiating for
the purchase here of new war ma
terials without concern about pay
ment
Mr.. Morganthau, in announcing
the decision at his press conference,
said that actual British contract
signing would have to await con-
sultation between Mr. Roosevelt and
the Congress on the financing plan
for British needs which the Presi-
dent outlined Tuesday Speed is the
watchword, and Stephen Early, the
White House secretary, explained
the idea behind the arrangement:
Instead of stopping their nego-
tiation, let them 60 ahead and get
everything ready for the actual
signing of contracts when the new
authority is at hand"
Ships Need Not Wait.
The construction of go cargo ships
in American yards for the British
will not have to await congressional
sanction of the Presidents British
financing plan. Mr.. Morgenthau
said. He announced that the Brit
ish would be told they could go
ahead at once with the business of
signing contracts for building these
vessels. Cargo ships are at the
moment the most urgent British
need.
The British have S5O,0O0,O00 in
cash earmarked for the ship-build-
ing. The vessels, Mr. Morgenthau
said, are to be 410 feet long and
weigh $500 tons each. 1t will take
year to year and one-half to
construct them
The orders have yet to be placed,
Mr.. Morgenthau said At the same
time the administrators legal ad-
visers are searching for a method
under international law by which
the United States might assume
title to 81 Danish vessels docked or
anchored in American ports and
turn them over to the British.
British Provide List of Needs.
Besides the ships and past orders,
the British prospective war material
purchases come to SO 5000 900, 900, one
quarter said. On Mr.. Morgenthaus
| desk during his press conference lay
a long catalogue Of British needs.
which he said had been presented
to him yesterday. The list has been
cleared, he said, by the Army. the
Navy and the National Defense Ad-
visory Commission.
The Secretary declined even to
hint at what the catalogue included.
But the goods listed there are the
things on which the British are
being told to negotiate for, provided
they sign no contracts until Con-
gress has had ample opportunity to
study the financing plan.
From other sources it was learned
by the Associated Press that the
British were seeking contracts for
10000 additional planes, at possible
cost of SLIPS, 100000; 1000 to $500
more tanks, and guns and ammuni-
ton costing about $1,70O 100000.
Secretary Morgenthau declined
himself to estimate the amount of
the new British potential contracts
and Mr.. Early at the White House
said he did not know what quantity
of arms England would need to
finish the war or whether she was
planning ahead for only year or so.
Orders, But No Money.
Everybody admits and agrees"
Mr.. Early said, that time is of the
essence. Now comes a period when,
I take it, the British authorities are
worrying about and working upon
orders to be made by them and for
which they will not have cash to
pay"
These orders will come under the
proposed leasing and mortgaging
system outlined by Mr.. Roosevelt,
provided, it was apparent from what
Mr.. Morgenthau said, that Congress
agrees with the Presidents idea.
The Secretary would not discuss de-
tails of the Presidents plan, but he
revealed that the Presidents press
conference Tuesday was the first
time that the revolutionary plan had
been made known to anybody out
side Government circles.
| Not even the British themselves
were aware of it, he said. Mr.. Nor
genthau said he told Sir Frederick
Phillips. the British Undersecretary
of the Treasury, about it at S pm.
on Tuesday. The Secretary said that
he had kept himself from all con-
tact with the press or the British
until that time on that day so he
would do nothing to let the plan
leak out prematurely.
Form Of "Consultation" Uncertain.
The Treasury Secretary said he
did not know what form the Con-
sultation" between the President and
the Congress would take-whether
Congress would be asked for legisla-
ton on the finance plan or requested
merely for its approval by resolution.
He made it clear, however, that
naturally we expect the British to
wait for signing contracts until
Congress has had a chance to study
this plan"
The orders for the desperately
needed go cargo vessels may be
placed by this weeks end, authori-
tative circles said. The ships will
be able to move at 10 to II knots
and cost about $1,250,00O apiece or
perhaps less. When it was drawn
to Mr.. Morgenthau's attention that
60 times $1,250,000 is a good deal
more than the $4,000 900 earmarked
by the British for the purpose, he
said:
If the ships cost more than that
($50, 0,000, ,000), they are good for more
tens, many more tens"-apparently
tens of millions.
AS for the Danish ships, their cap
tains have refused since the German