Evening star., 1943-07-06


Secretary OF Commerce Jesse
Jones said yesterday, in part, IN
detailed anSiCer to Vice PrcSi-
dent Wallace's charges OF Recon-
struction Finance Corporation
delays in handling strategic i'm
ports.
Ry the Associated Press
Mr.. Wallaces statement Of June
20. l943, says: Il now desire to
present additional evidence on Gov
ernment stockpiling-commodity by
commodity. for consideration by this
committee. by the entire Congress
and by the public at large
RFC is purchasing 81 different
metals. Mr.. Wallace conflres his dis
cussion to six. with a reference tc
two others
MANY of the statements made are
false: others are puTposely mislead-
ine. The net effect of these state
ments is to create the impression
that failure to obtain these materials
in large quantities, or more prompt
lv. has impeded the war effort, This
implication is maliciously false.
While the situation on tantalum
and corundum has been tight there
has been 20 shortage; and IN so lar
rs hervl cobalt. quartz crystal and
7irconium are concerned. our stock
piles are large and are lncreas-
ING
CONTRACT DELAYS.
Mr. Wallace refers to the 'obstruc-
ZIONIST efforts OF the RFC and gives
seven examples of the tactics" en-
ploved.
The desire and efforts of RFC
agencies 10 comply with their stat
utorv and administrative RESPONSE
bilities cannot properly be described
as tactics"
Since February 25. l943, all ne
potiatiors arc handled by BEW
More'S the pity In some cases RtC
is informed of the negotiations as
thew progress: in other cases RF'C S
first knowledge of the contracts is
obtained when they are sent by
the BEW to the seller for eXecu-
ton, with a copy to RFC; in still
other cases. RFC knows nothing of
the contracts until after they have
been executed by the seller and ere
sent to RFC with directive for
execution
The directors of RFC have not
felt free to execute contracts, as re-
ceived from BEW, with dlrectlVes,
without examination as to the legal
efTec, of the contracts and the OBJ
legations assumed by the Govern
ment under them
Denies Delay on Mine.
In Example No. 5 Mr.. Wallace
speaks of "three-Week delay IN
getting a new mine into production,
because RFC refused to sign the
contract until prior signing by the
producer" RFC actually expedited
this transaction by authorizing the
BEW representative in London to
sign the contract Immediately on
its execution by the producer. There
was no delay.
In Example No s Mr. Wallace
suggests that RFC refused to honor
a directive authorizing the loan or
rental of equipment to the Brazil
ian government because of informa-
ton that the equipment would be
rented and not loaned. This state
ment is both untrue and misleading
The facts are that cable from the
BEWs representative in Brazil in
Gicated that this equipment might
he given away. RFC pointed out to
BEW that it lacks authority to give
away Government property and
therefore asked for assurance that
the equipment would either be sold
or rented. This assurance being CIV
en-. the directive was approved.
Presidential Approval Required.
In Example No. z reference is
made to Brazilian contract being
delayed for four weeks pending for.
NAL approval required by the Sec.
retary of Commerce. This contract
involved a substantial advance pay.
ment. Under the law. advance pay
ments can only be made with the
approval of the President. The con.
tract had been signed in Brazil ane
was approved by the Secretary Of
Commerce for the President as soor
rs Il was received here.
Reply to Mr.. Wallace's charges re.
>atinc to materials other than metal!
follows: