The Waterbury Democrat., 1942-06-27
NAzI BLOCKADE POSES PROBLEM
 FOR ARGENTINA
By LAWRENCE S. HAAS United Press Latin American
 EMaAMwl

Edit0r)
 New York, June 27. (UP)-Ger- many,s announcement of the ex- tension of her submarine zone of operations to include the entire At- lantic coast defective June 26) was not expected materially to alter the situation with regard to United Na- tions' shipping, but it posed a prob lem for Argentina.
 The Argentine government is friendly with the Axis. Acting Pres ident Ramon c. Castillo's admin istratiou has refused to break dip- lomatic relations with Germany, Italy and Japan, although 19 of Argentina's 20 neighbors are either at war or have no intercourse with Axis countries.
 Germany has rendered Argentina a full apology for torpedo!ng and damaging the 13,000-ton tanker Victoria April IT, and has offered to pay for damages.
 Argentina, however, with grow ing merchant marine, must trade with the United States if she is to obtain badly needed coal and petro- leum and whatever newsprint, ma chinery and other manufactured products she is able to buy under priority rulings. If her ships put into United States Atlantic ports in defiance of the German blockade proclamation, they will be subject ed to submarine attack as readily as if Argentina had joined her neighbors in breaking of with the Axis. In such event, there Is little likelihood Germany would again apologize and pay for damages, which in any case would be of no benefit to Argentina.
 Chilean Ships Use Gulf
 Chile, the only other American republic maintaining normal rela- tions with the Axis, dispatches her ships to discharge and load at Gulf of Mexico ports, up to the present outside the German blockade zone.
 Argentine ships must pick up coal and other products at east coast ports. These products cannot be shipped overland to New Orleans or Mobile, due not only to prohibitively high freight rates but also to the fact that American railways prob- ably lack the facilities to carry them.
 As submarine activity continued unabated in Caribbean and north- ern South American waters, some South American sources voiced suspicion that the U-boats were getting valuable aid in the Western Hemisphere area from so-called neutrals within or close to the Axis orbit.
 Military men in Dutch Guiana were reported apprehensive over the situation said to exist in neigh boring French Guiana, a Vichy. controlled colony whose capital, Cayenne. has for generations been notorious as the seat of Frances ! overseas penal colony.
 Spies May Be in Cayenne
 A correspondent of the Dutch Indies Aneta news agency insinu- ated that Cayenne may now be center of Axis espionage reporting on shipping movements, if not ac- tually supply base for Axis sub- marines.
 Certain newspapers in Brazil, also a neighbor of French Guiana and nation which has lost num- Der of ships to Axis submarines, have urged United Nations action with regard to French Guiana.
 More recently the newspaper o Globo of Rio de Janeiro, charged that Spanish steamers are aiding the Axis In its submarine campaign in Western Hemisphere seas. o Globo pointed to the recent high seas incident in which the Spanish steamer Aldecoa was halt ed by a submarine and forced" to supply it with fuel oil. The captain of the Aldecoa reported the incl dent upon arrival at Rio de Janeiro, but he met with great difaculty in obtaining fuel oil from American firms to replace the combustlble he turned over to the submarine.
 The newspaper charged, further more, that many former Axis ships flying the Spanish flag are now in the greatly augmented trade be- tween European ports and BuenoS l Aires.