Evening star., 1940-06-22
Five Republics Back
Chile S Plan 10 Defer
Farley Until July
Foreign Propaganda
Associations Fuce
Restrictive Lows
By the Associated Press.

~ ~
By the Associated Press.
BUENOS AIRES, June 22.-Ar-
gentina and Uruguay took the lead
among South American republics
today in stepping up defense and
preparedness programs.
Argentine congressional commit
tees studied an extraordinary de-
tense budget now calling for outlay
of 1,000000,00O pesos (about $780,
OO0,00O-a South American record
The figure was so per cent higher
than the 600,0O0,000 pesos (about
$180,O0O,0OO originally asked of
Congress only two days ago.
One source said this increase
might be regarded as an indication
of Argentinas determination to be
prepared in a world where right Is
rapidly giving way to might"
In Uruguay, President Alfredo
Baldomir promulgated new law
banning associations devoted to for
eign propaganda or illegal ends and
prohibiting press or radio references
Injurious" to countries with which
Uruguay maintains friendly rela-
tions.
Uruguayan congressional groups
began a drive for naming commit
tee to draft special measures sug-
gested by parliamentary investiga-
ton of Nazi activities.
Germans Questioned,
Nine Germans detained during
the inquiry we're undergoing ques-
tioning by Uruguayan police. who
said five of them had made state
ments and that another was being
questioned regarding plans-said to
have been found in his possession
for military occupation of Uruguay.
Argentine army and navy officials
had under advisement the possible
purchase of warplanes and at least
one heavy cruiser from the United
States.
The defense budget as it now
stands nearly equals Argentina's
ordinary budget, sent to Congress
last night by President Roberto NJ.
Ortiz, fixing Government expenses
at LOTT 100000 pesos and visible
revenues at 915 100000 pesos. Spe-
cial credits are expected to be pro-
vided to pay for the armaments
program.
New naval units and equipment
appeared destined to be the heaviest
item of expense. including construc-
ton of submarines, torpedo boats
and dry docks. Sizable provisions
also were contemplated to give
Argentina South Americas most
powerful air force and to provide
new artillery.
FavOrs Conference.
Argentine Foreign Minister Jose
Maria Cantilo indicated last night
that possible surrender of British,
French or Netherlands territory in
the Western Hemisphere had i'm
PEELED the United States to suggest
a prompt meeting of American re-
publics in Havana.
Cantilo coupled this with the as
sertion that he accepted the sugges-
ton for an early Pan-American con-
ference but had reserved to Argen-
tina all questions concerning SOW
ereignty of the Falkland Islands.
These islands long have been bone
of contention with Britain which
now uses them as a South Atlantic
naval base.
He said in an interview that
United States Ambassador Norman
Armour, in a formal note last Tues
day, called attention particularly
to the prospects suggested by a Ger
man victory over France and any
eventual peace discussions.
While the Ambassadors note did
not imply as much. it was inferred
from Cantilo's words that any agree
ment between Germany and France
might establish precedents applica-
bic to the Netherlands, and possibly
also to Britain, should the latter be
defeated.
The Chilean government an
nounced last night that it favored
not holding the american con-
sultative meeting before mid-July,
and that it had received the support
Of five other American republics in
this stand.
No date has yet been set. Havana,
which was to have been the scene
of the next regular Pan-American
meeting in October, has been most
prominently mentioned for this
special meeting.
Chile announced that Argentina,
Peru, Mexico. Uruguay and Para
quay concurred with her on the
mid-July date.