Evening star., 1940-12-21
$1o0,o00,o00 Credit
To China Delayed
By Defense Tie-up
British Priority BoIks
Efforts to Place Orders
For Planes and Arms
BY BLAIR BOLLES.

| BY BLAIR BOLLES.
The Chinese, in desperate need of
planes and field pieces for the con-
duct Of their war against japan, are
now unable to buy a single bomber
or gun in this country, 1t was learned
today, although the Federal Govern
ment Is ready to hand them a $780,
900 900 credit If they can find some
way to spend 1t on American made
war materials.
/ The administration leaders, trying
to allocate American arms produc-
ton according to first needs, have
decided that the United States itself
and Britain come first, Greece next
and the Chinese third. The Chinese
have been told that every new item
of war goods in this country is
made for England.
This situation makes hollow, in
the Chinese estimation, the White
House announcement of three weeks
ago that 100000, 900 was on hand
for China, to be drawn from the
Export Import Bank and the Sta
bilization Fund. The money has to
be spent in the United States and
there is no means of spending 1t.
The $l00O00.00O announcement
was considered triumph for r. v.
Soong, special Chinese loan-arrang-
ing emissary. but inability to negoti-
ate contracts for war orders now is
saddening Mr.. Soong China was to
get $5O0OO.00O from the Export
Import Bank and $4,000. 900 from
the stabilization fund. Neither sum
has been made available.
China's situation has been made
doubly trying within the past 10
weeks by the reported stoppage OF
Soviet material assistance to the
Chinese. There is an authoritative
story in Washington that the Krem-
lin told Chang Kai-shek. the Chi
nese generalissimo in Chungking,
that the price of future Russian
help was the sovietization of the
Chinese state The generaissimo
is said to have refused this bargain
A list Of Chinese wants has been
for two weeks with Secretary OF
the Treasury Morgenthau. After
airplanes. artillery is the prime Chi
nese need. The Chinese are able to
manufacture small arms. but since
early last spring they have been
trying to get cannon from the
United States.
Empha sizes Defense Crisis.
The Chinese dilemma is a symp-
tom of the defense industry bog
down. The Administrations hope
for turning the United States into
an arsenal for equipping the de-
| tenders of democracy-this country
itself. England. China. Greece and
others-have failed yet of realiza-
ton, and not enough goods are roll
ing off the assembly lines to satisfy
the requirements of the United
States and England.
Even Greece, whose King George
received the assurances of PreSi-
dent Roosevelt that this country
would furnish material aid for his
soldiers. has received nothing. The
administration leaders. trying to al
locate American arms production
according to first needs, have de-
cided that Britain is first and
Greece next Help to Britain. how
ever. is help TO Greece. in the WASH
ington view. because the British
are closely supporting the Grecian
campaign against Italy.
However. it is expected that
Grecian negotiations may be COM
pleted in 10 days with English rep-
resentatives here for diversion to
Greek use of some American-Or-
dered planes for the British. The
plan for aiding Greece rests on the
agreement that Greece can have
| as much as England can spare to
/ her.
! At the same time Finland is get
ting small satisfaction on her re-
quest for American cooperation in
a plan for passing foodstuffs from
the United States to Finland
through the British blockade
/ The 500 100000 Chinese loan an
nouncement had double intention
political. as a portent to Japan, as
we'll as friendly, as basis of hope
for China. Mr.. Soong, however, is
said to have concluded that his ef-
forts of six months have peen in
vain and that China really has no
hope for getting the goods she
wants.
Mr.. Soong. the brother of Madam
Chang Kai-shek. was sent here
early last summer to assist Ambas-
sador HUI Shih, who was finding
difficulties in arranging for a loan
from the Export Import Bank. Mr..
Soong, as chairman of the Bank of
China, more experienced in bank
ing matters, was successful in get
ting the loan-s25 100000 in Sep
tember and then the promise of $50
900 000 to be matched with $50
100000 stabilization fund advance.
on December /.
Stopped at Second Hurdle.
But Mr.. Soong found that, while
he had hurdled the first problem,
the loan, the utmost efforts of both
himself and the Amba ssador could
not arrange for a purchase of goods
on which to spend the loan. The
stabilization fund arrangement,
which has since been applied to an
advance to Argentina, won the i'm
mediate approval of the Senate
Banking and Currency Committee
and the House Coinage Committee.
When the congressional commit
tees acted, Mr.. Morgenthau indi-
Gated that the completion of the
financial arrangement with China
was but a formality He said he
would proceed Immediately to close
the deal, commenting:
1--WE are going to 60 downtown
and do business as fast as the law
yers will let U.S."
Bandit Locks Up Worker
And Robs Firm of $362