Evening star., 1941-05-23
u. 5. Maps Plane Pool
To Build Up Aviation
In Latin America
Postwar Market Also
Factor in Scheme Now
Being Worked Our
BY JOSEPH S. EDGERTON.

up ia UlOIldl dll IL ldllOlt
South America, to develop a post
war market for United States air.
planes and. in the process, TO drive
German and Italian airlines out of
this hemisphere is being prepared
by the United States Government in
cooperation with the South Amerl-
can republics affected.
The effort is to be financed with
'blank check" funds said to total
s8,O000 900 allocated by President
Roosevelt and with Reconstruction
Finance Corp. funds to an amount
not yet determined.
The plan calls for the diversion
of transport and cargo airplanes
of suitable types. now on order for
the Army Air Corps, to a pool
from which South American ma
tionS may draw 1t is hoped that
more of the South American re-
publics will follow the lead of
Brazil, Colombia and others in
ousting totalitarian airlines and es-
tablishing their own, using the
American equipment and assistance
of this country.
Rockefeller in Picture.
It has been learned that with
funds already allocated, an organi-
zation now is being set up under
the Joint supervision of Nelson A.
Rockefeller, co-ordinator of COM
mercial and cultural relations be-
tween the American republics. and
Jesse Jones, Federal loan admins
traitor.
Although the present organization
Is primarily creation of the Rookie
feller group, it is being closely tied
in with the r. F. c.. which. it is
understood, will actively enter the
picture in the near future, probably
dealing with the broader aspects
of hemisphere transportation as
a whole.
The funds which have been al
located by the White House, it is
said, will make possible the trans
fer of between 27 and 30 Douglas
and Lockheed Army transport cargo
be of the Lockheed "Lodestar" type,
which has been judged most suitable
for the high altitude operations re-
quired in South America. particu-
larly in the Pacific coastal regions.
Details Incomplete.
Details of the manner in which
the transfer will be made to the
South American operators have not
been completely worked out, but it
is planned to make them available
for purchase, lease or possibly loan
on easy terms.
Chief among the South American
nations which it is hoped will take
active part in the program are
Bolivia, which recently took over the
German Lloyd Boliviana system,
breaking a. kew German position on
the southern Pacific section; Bra
Zdi, which for nearly two years has
been engaged in the gradual elimi-
nation of foreign arplanes; Peru.
which has grounded German air
transport planes and personnel,
taking over operations with its own
army planes and pilots; Uruguay,
and Ecuador, where the German
Sedta line is about to be grounded.
Columbia last year broke up a
German air transport system which
was the first organized commercial
airline in the Americas and, with
the technical assistance of Pan
American Always and United
States planes, set up its own
national system. Colombia is said
TO be in good condition today and
probably will not need Immediate
assistance.
Argentina may come in line for
new equipment under the plan.
Both German and italian airlines |
have been active in that country, |
as they have all along the South |
American east coast and on trans |
Andean routes.
Planes Being Lined Up.
Edward R. StettiniuS. director Of |
priorities of the Office of Production |
Management, has been asked to |
clear the way for the transfer Of |
the necessary airplanes from the
Army, it was reported, and it is |
believed that planes will be avail
able for shipment to South America
as soon as the necessary interna- |
tional arrangements can be effected. |
The present ALLEGATION of funds, |
It is said will not interfere with |
the long-range program of the |
r. F. c., announced sketchily by |
Mr.. Jones May 7, when he dis
closed that under terms of the |
Brown-Steagall bill approved on
that day by the House Banking |
Committee, the R. F. C. was plan
ming to go into the airline business. |
The legislation provides for increas-
ing the r. F. C.'s lending authority |
by 81 100000 and would make |
possible air transport loans which |
Mr.. Jones said might serve Latin
America. the West Indies and |
Greenland.
A key man in the new Setup, |
who asked that his name be with |
neld until the organization is COM
pleted and officially announced, said |
that the move should not be con-
stdered in the light of a war to
drive out any one"
Seen as Permanent Policy.
Il think that it would be mis-
take to tie this program up with
the war or with the European ac-
tivities in South America" he said.
'We should =, consider it construc-
lively as program of cooperation
with Latin American neighbors who
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