Evening star., 1942-01-26
REPORT TO THE NATION
Fourth InstoI|ment Of MucLeish
Statement on War Effort

licenses, but such licenses are not
granted until the blacklist has
been consulted. Issuing Of L.
censes has been greatly speeded
50 that legitimate industry does
not suffer. Some 5000 applica-
tions are being handled 4 day.
In most instances . decision IL
made within two days.
The elimination Of Axis-con-
trolled air lines in South Amer.
lea Is another excellent example
of successful economic warfare.
The shipment Of high -octane
gasoline to suspect companies was
cut of. Most Of the republics
wanted to buy out foreign own
ers, but lacked the means. An
$4,000 lending fund was set
up to facilitate these purchases.
In September Of 1889 there were
4,l09 miles OF Axis dominated
lines in Bolivia; now there are
none. There were 5,4o4 miles In
Colombia. 594 miles in Ecuador,
1910 miles In Peru. Now there
are none. The job Is virtually
complete In other countries.
Not content to block the ex-
port Of products from the United
States to the Axis, we have
worked to prevent the Axis from
getting strategic materials from
any country. We have con-
tracted for the purchase Of ma
terials which might otherwise be
sold to enemy agents.
Before the end of 1910 agree
ments had been signed which
assured us substantially the en-
tire copper production OF Chile,
Mexico and Peru. In November,
1910, we agreed to buy almost all
Bolivian tin not earmarked for
Great Britain. A few months
later, in the face Of higher jap
anese bids, an agreement was
made to purchase Bolivia's entire
tungsten output. Under the 1941
agreements with Brazil. Mexico
and Peru, we are taking the en-
tire exportable surplus Of almost
all their strategic materials. We
have made similar arrangements
for the control OF Colombian
platinum and Cuban sugar.
Reserve Supplies Guarded.
Choking of the enemy's sources
OF materials fitted naturally into
our broader efforts to obtain our
own stocks. The Governments
stock-piling programme build up
reserves Of imported war ma
terials which might be cut OF in
time of war-began in the sum-
mer of 1899, but feebly. 1t was
stepped up after the fall of
France. These reserves will con-
tinue to be bolstered, but their
exact size will be kept secret. As
users Of tires and golf balls are
now aware. supplies Of some ma
terials are not sufficient to meet
both our fighting needs and our
civilian desires. Il. s.-
Special studies have uncovered
processes for treating 'low-srade
domestic ores. providing new
sources Of strategic metals. Agri-
culture research men are work
ing to develop substitutes for ma
terials which we have imported
from the Far East. New uses
have been found for some of our
own most common products.
In the case Of rubber, we are
supplementing our stock pile by
building synthetic rubber plants,
by increasing the reclaiming Of
rubber, by stimulating rubber pro-
duction in South America, and
by preparing the way for in
creased production of guayule
rubber, which comes from . shrub
we can grow In our own South
west.
Our dependence on the democ-
racies Of the Americas for stra-
tegic materials carries with 1t an
obligation to send in return the
manufactured goods they can get
nowhere else. 1t is a part OF our
economic policy to continue sum-
cient exports to our neighbors to
satisfy their minimum essential
requirements, treating their civil
ian needs as We would our own.
Special consideration has been
given to supply them with ma
chinery needed for their part in
the productive effort. We have
granted export licenses for tin
plate to maintain the canning
industry Of South America. We
have given high priority ratings
for railroad equipment to Brazil.
Financing Explained.
The ALLEGATION Of supplies is
worked out, 30 far as possible. in
cooperation with the other
American governments.
To aid in the financing OF these
purchases and to develop new,
untouched resources the Export
Import Bank has granted loans
and credits to 10 American re-
publics. For example, credit was
extended to Brazil for the erec-