Evening star., 1941-09-01
Argentine Export
Controls Indicate
Shift Toward u. ).
Other Recent Moves Also
Hint Abandonment of
Neutrality Policy
~ the Associated Press.

- Neul1OIlIy IOIICy
~ the Associated Press.
BUENOS AIRES, Argentina. Sept.
1.-Argentina' S new law controlling
the export of strategic war mate
rials, as we'll as other recent moves,
81 Is accepted by observers here as in
dicating that this country is moving
away from her policy of strict neu-
trality in the European war and
closer to the United States.
Persons acquainted with negotia-
tions leading up to the export de-
cree published a few days ago as
an Argentine defense measure said
it was "one of the biggest breaks
vet" in Argentinas traditional pol
icy Of counteracting United States
influence in South America where
possible.
Part of Americas Program.
The action was requested by the
United States, these sources said,
and constitutes part OF the inter-
American program to make the
Western Hemisphere self sufficient
In war needs should ii face an inva-
sion threat alone, and TO seal re-
sources of the hemisphere against
the Axis.
Because of Argentinas prestige
. among her South American neigh
bors, her position on this program
has been WashingtOns biggest
headache.
Effect of the decree is TO cut off
from the Axis a mineral of which
Germany has little-tungsten Mixed
with steel TO make tools, tungsten is
vital to the munitions industry.
Chief sources are the Far East
and South America. The Far East
ern supply is controlled by the Chi
nese, English and Dutch. In South
America the Argentine decree COM
pletes an export barrier already
erected by the only other major
tungsten producing country, Bolivia
Informed sources expressed the
belief that Argentina would not
close door so important to the
Axis unless she was losing fear of
postwar trade retaliation from a
victorious Germany.
Other Materials Affected
The decree also gives the Americas
exclusive use of other vital raw ma
terials of this country, chiefly beryl,
mica. iron, copper. manganese and
aluminium. Beryl is used to harden
aluminium for airplanes and in gun
barrels so they can Withstand the
heat of firing. Mica is in big war
time demand to insllate sparkplugs,
magnetos and radio tubes.
Chile and Colombia are the only
South American countries not now
committed to keeping their mineral
resources out of the hands OF the
Axis. Colombia, however. Is rel
ativelv unimportant as source for
these materials. Chile is still nego-
tiating with Japan over copper,
mercury. cobalt manganese and
molybdenum. but is also considering
a United States bid for the full out
put.
Peru does not have export control,
but her production is in the hands
Of United States and British COM
NAMES. Bolivia restricts the sales OF
tin. tungsten and other minerals to
the United States and England.
Venezuela, rich oil producer. has
shut down tight control on exports.
Ecuador and Brazil. too. have fallen
in line. Uruguay does not have i'm
portant supplies of minerals, but has
banned the re-expoft of machines
and all types OF iron and steel.
Progressive Steps Taken.
Argentina s negotiation of trade
treaty with the United States after
years of stalemate investigation OF
NaZi activities in this country which
has led to the flight OF the German
Embassy's press attache. Gottfrled
Sandstede, and a legislative attack
on the German Ambassador, Ed
mund Won Thermann and the de-
cision to use interned Axis ships in
inter-American traffic were all
viewed by informed sources as pro-
gressive steps toward collaboration
with the United States.
It Is the widespread opinion
among observers that if the Senate
controlled by the Conservative party
of which Acting President Castillo
is a member-moves into the open
with an anti-Nazi inquiry which 1t
has been conducting secretly while
a parallel House probe was pro-
ceeding publicly. Castillo may pub
licly define a new policy before the
year-end elections in Buenos Aires
which historically are the key to the
choice of Presidents.