Evening star., 1941-08-10
Economic Board Guides Effort
OfU. S. in Trade War on Axis
American Weapons, Numerous and Potent, Still
Need Expert Use Both for Victory
and Postwar Problems
By OHver Mckee.


eral officials have laid special stress on
Latin America. The recently published
pro-AXis blacklist resulted from investi-
cations made by the Department Of
Commerce and the Office of Co-ordina-
tor of Inter-American Affairs. Govern
ment intelligence services provided much
pertinent data on the pro-Axis activities
of the United States firms in South and
Central America. According to the Com
merce Department, American firms have
already eliminated more than 1000 "un-
desirable connections" in Latin America.
The economic defense program also
aims to increase the buying power of the
American Republics, promote their in
duStrial -sufficiency and build, on a
permanent foundation. larger two-way
trade between the Americas. These are
the broad objectives of many of the loans
made by the Export Import Bank.
Through the purchase of strategic ma
terials, Federal Loan Administrator
Jones has helped to increase Latin Amer
ican exports to the United States. As
result in part Of these purchases, Latin
America, in its trade with the United
States, has a substantial balance in its
favor during the first six months of 1941
"a reversal of the trend of recent years,
Much Buying Preclusive.
In many instances, these materials
have been bought to prevent their sale
to Nazi and japanese agents Preclusive
buying is thus being used to halt the flow
OF strategic materials from the Eastern
Hemisphere TO the Axis. Under agree
ments recently negotiated. Mexico and
Brazil hereafter will sell all their ex-
portable surplus of certain war ma
terialS to the United States.
Freezing of the assets OF unfriendly
countries is an essential part of the
economic defense program. The Treas
| ury has placed Axis funds under an
effective control, and has prevented
their use to finace propaganda activities
in the American Republics and to pur-
chase strategic and other materials. Ac-
cordlng to reports reaching Washington,
the dollar blockade has increased the
difficulties of Axis agents operating in
South and Central America.
Economic defense includes another
financial weapon-aSsistance to friendly
nations. A good illustration of its use are
the loans made by the United States to
/ China.
Though so far there are no indications
that Soviet Russia will receive similar
assistance, the Washington Government
already has given assurances to Moscow
Of material aid. This is in line with one
OF the cardinal principles of our eco
nomic defense, polcy-to help, where
possible, the nations fighting Axis ag.
gression.
Boards Role Important.
Government agencies. for many
months, have been carrying on ECO
nomic warfare" over a wide front. A
close coordination of effort. so far. has
been lacking. AS the general staff"
directing an expanded program, Mr..
Wallaces board may be expected to
supply the needed coordination, with
emphasis on the proper timing upon
which the success of economic warfare
measures, as well as military moves,
largely depends
Since the economic weapons at the
/ disposal OF the United States are both
numerous and potent, the new board
seems headed for an important role in
the Nations expanding defense effort.
In its future actions it will no doubt hew
to the general line of economic defense
already charted by other Federal agen-
cies. Supplementary measures may be
necessary, such as the control of i'm
ports, increased shipment of materials
needed by Latin American and other
friendly nations, and a wider resort to
preclusive buying. Canada, too, may
require additional help to keep its war
economy on an even keel
Under the Executive order. the new
board will study the relationship of eco-
nomic defense to the problems of post
war reconstruction. Such studies are
clearly needed. Though the exact sys-
tenn of international economy that will
emerge from the war is any mans guess,
many changes are inevitable. 1t is the
part of wisdom, therefore, for the United
States to prepare plans to meet these
| changes.
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