Evening star., 1941-08-31

BoftIeneck
Tying Up Contracts
With Latin America
Deliveries for Projects
Financed by Federal
Loans Cont Be Made
By OLIVER MCKEE.

BY OLIVER MCKEE.
Because of the priorities bottle
neck, American manufacturers have
been unable to make deliveries on
millions of dollars of Latin Amer
ican orders for equipment and ma
terials for projects financed by
United States loans, 1t was revealed
yesterday.
According to Commerce Depart
ment estimates, based on reports
from American exporters and busi-
nessmen, the contracts thus frozen
are valued at 1856 ,484. On many
of these American firms have al
ready received payment. Deliv-
cries have been held up, however,
because Of their inability to secure
priorities for the materials needed
to fill the orders.
Orders from private firms in Latin
America totaling $52,000,000 also
have been held up in the priorities
log jam. Approximately 1000 Amer
ican companies are represented in
this group.
The Export-Import Bank usually
stipulates that if equipment is
needed to carry out projects which
it Is financing, Latin American coun-
tries must obtain this equipment
in the United States. With the
help OF q recent Export Import
Bank loan, Brazil Is building road
connecting its new air bases, which
are part of the hemisphere defense
program. A 100000 order for road
building machinery was placed with
an American company. Though
shipment was requested by the
State Department and the Brazilian
Embassy on June /, defense agen-
cies have not yet given a green
light for the delivery OF this equip
ment.
Businessmen Protest.
In letters and personal visits, the
/ Commerce Department has received
protests from hundreds of American
/ businessmen against the delays ano
| difficulties which they are encoun-
tering in securing permission TO nj
orders from Latin America.
In talking with Commerce Officials
a few days ago, representatives o.
four large American companies indl-
Gated that they may move thell
factories to Canada unless they car
obtain the materials to manufacture
goods for South and Central Amer
ica. Canadian authorities have as
sured them of the necessary mate
rials and shipping space, they tole
officials here.
Here is a typical example Of th'
difficulties faced by many of the
American companies. With the en-
couragement of Washington Off
cials, New Jersey airplane manu-
facturer sent three pilots to South
America TO help in organizing civil
ian flying clubs. Recently this
company received from the Argen-
tine orders for 70 airplanes. De-
livery so far has been impossible
because the company has been un-
able to secure priorities for the
aluminium and other materials.
British Have Advantage.
"It is very important that we keer
this Western Hemisphere supplied
with goods to keep their economies
on a stable basis" leading Amer
| lean rubber company recently
pointed out in a letter to trade
| officials here
Our British competitors are MOI
restricted in the use of rubber a!
we are. The British government j.
giving their export manufacturer.
every possible encouragement no
! only to maintain, but also to i'm
prove their positions in oversee.
markets" In its letter. this COM
pany pointed out that it had beer
refused export licenses to market!
in which British manufacturers fac'
practically no export restrictions.
The difficulties experienced b!
/ American business men in obtaining
! permission to produce goods fol
| Latin America are due to two majol
causes, it was pointed out yester.
| day. One is the underestimate O.
| demand on our resources and pro-
duction facilities imposed by the de-
fense and aid-to-Britain program
The other is the fact that in esti.
mating our needs forAstrategic ane
other war materials, defense agen-
cies made no provision for the re-
quirements of Latin America, which
is now dependent on the United
States for many supplies.
Though expressing the hope that
the Economic Defense Board, ano
the new Priorities Board will soor
take action to expedite shipments to
the other American republics, trade
officials pointed out yesterday that
neither agency had been granted
specific authority to grant Latir
American priorities. The State ano
Commerce Departments have beer
urging an executive order deiegating
authority to make such priorities tl
a particular agency or official.