Evening star., 1943-06-30
BEW and RFC Aides
Prepare Statements
10 Dispute Charges
Jones Plans to Issue
More Detailed Reply
To Wallace Shortly

says, k1uSl, UOyS, keep IL III une
family" the singing battle between
Vice President Wallace and Secre-
tary of Commerce Jones may flame
up again, for today aides of both
cabinet members gathered fresh
firewood.
Mr.. Wallace started the rumpus
which cracked around the Board
of Economic Warfare-headed by
the Vice President-and the Recon-
struction Finance Corp-headed by
Mr.. Jones.
In both agencies information now
Is being prepared to dispute state
ments by the opposing leaders.
One BEW function is to locate
abroad for import here strategic
materials needed in this county S
war program. RFC, Government
banker" pays for the materials
which BEW tells it to buy.
Mr.. Wallace said Mr.. Jones and
his RFC were obstructing BEW
work by unnecessary delays in pur-
chases. Immediately Mr.. Jones ac-
cused the Vice President of malice
and misstatements" and said BEW
initiative accounted for only a small
part Of total RFC purchases.
BEW Preparing Figures.
Hearing that and wondering how
long period Mr.. Jones figures COW
ered BEW staffers began preparing
figures Of their own. Meanwhile
Mr.. Jones aides said he would issue
a more detailed replyl to Mr.. WAL
lace in few days
No matter who's scorched. one
thing is certain: Not all activities of
BEW will become public before the
wars end. Some of it's operations
require strictest secrecy as they
are tied in closely with the war.
But the agency, created in the
summer of l94l, has three ma jor re-
sponsibililties:
l. Presidential order in April. 1882,
gave BEW direction of all imports,
the power to arrange for their i'm
port and to order their import
through RFC-in the case OF woods,
fibers and metals and other mate
rials-or through the Commodity
Credit Corp. in the case of agricul-
tural products.
BEW does not 60 out on its own
and decide what is needed. 1t is told
so by two other Government agen-
cieS: The War Production Board
when it is materials, and the War
Food Administration, when it is
agricultural products.
Once told by WPB or VIA what
item is needed for the war program,
BEW, through its agents abroad,
finds and develops the sources.
Sometimes, BEW staffer ex-
plains, there is a loss to the Govern
ment-such as through war risk
shipping insurance costs-but this
is considered secondary since the
materials are needed for war and
loss on the materials cannot be
considered in normal, peacetime
terms.
Sometimes BEW may order pur-
chase of a material not because it is
vitally needed in America but to
keep it out of the hands of the Axis
which needs it more. Such as mer-
curry from Spain
The theory here is that it Is
worth losing money if, by purchasing
an item like mercury, the Axis may
be deprived of it and thus suffer
for want of it.
The board through the Office of
Imports is directing more than 200
purchase programs in 40 different
countries or areas. Nearly 600 items
are included in the list of programs.
2. BEW controls all exports ex-
cept for lease-lend and the armed
forces. This is done through licens-
ing controls. An exporter-there
are about $4,000 exporting firms in
the United States-who receives a
foreign order must obtain a license
fee from BEW.
5000 Applications Daily.
The agency daily receives about
5000 applications for export licenses
issues only about half that num-
Der. In all cases they are governed
by factors like shipping space, the
needs of the country to which the
export article is going and certainty
1t will not fail eventually into enemy
hands.
3. BEW has an economic warfare
analysis section which is a counter
part OF the British Ministry of Eco
nomic Warfare. It's job is to obtain
all possible economic information
on every country in the world, but
particularly enemy countries.
Trained analysts work over the in
formation to see where the United
States and its Allies can benefit most
or thee enemy be hurt the worst
BEW staffers say they work 100 per
cent in cooperation with the Brit
1sh, so much so that If they say they
have all necessary information on
Western Europe we devote ourselves
to the East or Asia"
Many of the most effective air
raids on Europe are plotted by BEW
or its British counterpart which,
through analysis of economic infor-
nation, knows where to hurt the
enemy fastest and worst