Evening star. [volume], July 17, 1940, Page A-4, Image 4

About Evening star. [volume] (Washington, D.C.) 1854-1972

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'Suitable Measures'
Promised by Chile
As Spain Cuts Ties
Madrid Severs Relations
After Year of Dispute
Over Republican Refugees
By the AuoeUted Prese.
SANTIAGO, Chile, July 17 —Spain
has severed diplomatic relations
with Chile after more than a year
of dispute stemming from the Span*
is}i civil war.
delation between Chile's Popular
F.ont government and the Spanish
Nationalist government of Gen.
Francisco Franco had been strained
over Chile’s refusal to surrender a
group of Spanish Republican refu
gees sheltered in the Chilean Em
bassy in Madrid.
“Suitable Measures” Planned.
A high Chilean official, apprised
of the Spanish action last night,
said he could scarcely believe the
“rude and absurd news,” but added
the government would “take suitable
measures to meet such an unusual
and incomprehensible attitude."
(In Madrid, the Spaanish For
eign ministry declared it broke
off relations because the Chilean
government had permitted an
antl-Nationalist campaiagn which
had '“reached intolerable limits.”
(Exchange Telegraph, British
news agency, reported that
Spain accused Chile of helping
Spanish Communist elements to
escape from Spain and of sup
porting a campaign of insults
against Gen. Franco’s govern
1 ment and the nation.
(The news agency quoted a
Spanish communique as saying
this anti-Spanish campaign was
launched in public meetings and
in the Chilean press and culmi
nated in broadcasing of speech
es insulting Spain and Gen.
! Franca)
A few weeks after Chile recognized
the victorious Franco government of
Spain, April 5, 19^9, Nationalist
troops sought custody of 17 Repub
t lican refugees in the Chilean Em
bassy In Madrid on criminal charges.
Chile declined to recognize the Na
tionalist view that they were crim
inals and maintained she had the
right to grant them political asylum
and to take them out of Spain.
Thirteen Remain in Embassy.
Ultimately Gen. Franco permitted
four of the refugees to proceed to
the French border,' but 13 have re
mained in the Embassy.
Last August 6 the Chilean Foreign
Ministry announced it had broken
off negotiations with Spain in the
dispute.
Count Luca de Tena, named as
Spanish Ambassador to Chile, never
assumed his post.
(The Chilean Charge d’Affaires
in Madrid was handed his pass
port last night and the 8panish
government ordered its diplomatic
representatives in Chile to return
home immediately.)
It was announced that the Brazil
ian Embassy would handle Chilean
affairs in Spain.
Only yesterday, the Chilean gov
ernment took stem action against
alleged subversive elements, raiding
headquarters of the Nationalist and
Popular Socialist (NMl) parties and
ordering dissolution of "all appar
ently political organizations" formed
by "Rightiste.”
Chilean Interior Minister Hum
berto Alvarez announced Monday
that documents seiied by police in
the raids disclosed “activities against
the public order."
He said street disorders had been
provoked by “Rightists” and mem
bers of the Popular Socialist van
guard movements, known formerly
! as the Nacista (Nazi) party, 65 mem
bers of which were killed in an un
successful putsch September 5, 1938.
Nine persons were arrested in
Santiago Sunday, accused of setting
off noise-bombs in the streets and
distributing pamphlets attacking
President Pedro Aguirre Cerda for
having pardoned the Carabineros
who killed the Nacistas in 1938.
bpam Charges Chile
Aided Red Elements
!
MADRID, July 17 (/P).—The Span
; lsh government said today in a
j statement that it severed diplomatic
! relations with Chile because it was
“protecting and aiding Red elements
who fled from Spain,” and that pro
tests met with “only hostile inva
sions.”
The Chilean government, the
statement said, is “supporting all
campaigns of impudences, injuries
ai}d grossnesses in the press against
our nation and institutions.”
It charged that orators “gravely
insulted Spain and her glorious cau
dillo (Generalissimo Francisco
Franco) in speeches broadcast over
the official radio” in the presence of
the President and several ministers
of the republic, at a meeting in San
tiago June 17.
Argentine Bonds Urged
For Air Instruction
By the Associated t'ress.
BUENOS AIRES, July 17.—Fol
lowing formation of a national com
mittee to train 5,000 civilian airplane
pilots, a group of deputies introduced
in the Argentine chamber todayfa
bill to authorize a bond issue of
6,000,000 pesos (about $1,800,000) to
finance an extensive instruction pro
gram. Part of the sum would be
used to subsidize aviation training
centers.
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Text of \ Defense Commission Report
Divisions Report Progress in Obtaining Materials,
In Production, Labor Supply and Other Vital Factors
Following it the text of the
Defense Commission report which
President Roosevelt issued at his
press conference yesterday, with
the comment that it reflected ex
tremely good progress:
FROM EDWARD R. 8TETTINIUS,
Jr., MATERIALS DIVISION—
Through the prompt co-operation
of the R. F. C. and the Treasury
with this division substantial sup
plies of strategic and critical raw
materials are being acquired. Ac
tual purchases have been negotiated
and the material loaded aboard
ship within a period of three or
four days after the availability of
the product was made known. This
division, through the co-operation
between experts In various Gov
ernment agencies and specialists on
thl staff of this division, has made
surveys of the entire Held of stra
tegic and critical materials. Where
bottlenecks which might develop in
connection with a total defense ef
fort have been discovered, "red
flags” have been marked on the
chart and a detailed study is then
made to explore every possible
means of relieving the pressure that
might develop.
For example, we have always been
dependent upon imports for rub
ber. By the end of the month It Is
expected that a plan will have been
worked out whereby It would be
possible In an emergency to supply
most of our needs through the man
ufacture of synthetic rubber.
One point of concentration at
present Involves the production of
100-octane gasoline. This product
is essential to the airplane program,
and substantially increased produc
tion Is being worked out to assure
the air services of adequate sup
plies. Plans are under way for the
storage of large quantities of this
gasoline at strategic locations under
ground.
Industry Co-operates
On Supply of Tin.
This division is working on plans
to relieve our dependence upon for
eign smelters for our tin supply
and has obtained the co-operation
of industry to this end.
Mr. Stettinius, Mr. Knudson and
Oano Dunn, the division head’s
senior consultant, went before com
mittees of the House and Senate
to urge expansion of the T. V. A.’s
power-producing facilities ip the
total amount of $65,000,000, of
which $25,000,000 was to be available
for construction during the current
fiscal year. Both committees report
ed out the proposal favorably, but
Representative McLean, Republican,
of New Jersey, objected to considera
tion by the House and was sup
ported by Representative Taber, Re
publican, New York, and Repre
sentative Dirksen, Republican, of
Illinois. This made passage impos
sible before recessing for the con
vention. This division has taken
the position that it is absolutely
essential to the national defense
that the T. V. A. power production
be Increased in the amount asked.
Delay of a few weeks in authorizing
this undertaking might mean delay
of a year in filling the dam for the
generation of power, as it is neces
sary to catch the flood waters next
spring.
Considerable of the work of this
division is highly technical and of
^.strictly confidential nature, mak
ing it impossible at this time to
disclose a number of its activities
FROM WILLIAM 8. KNUD SEN,
PRODUCTION DIVISION— From
June 6 to date, this division has
cleared contracts in the amount of
$1,661,981,494, which represents $1,
390,575,404.87 for the Navy and $271,
316.089.13 for the Navy. Material
covered under these contracts in
cludes airplanes, tanks, battleships,
ammunition, anti-tank guns, anti
aircraft searchlights, machine guns,
various fire-control precision instru
ments, tractors, trucks, blankets,
overcoating, serge cloth, worsted
shirting, service shoes, ship propul
sion machinery, storage batteries for
submarines, airport and alrstatlon
construction, barracks and many
other items necessary in equipping
the United States Army and Navy.
Production of this material is be
ing undertaken in plants from
Maine to California.
Heavy Tank Designs
Revised in Light on Combat.
Awarding of contracts by the
Army for tank construction has be
gun through a commitment With the
American Car 4c Foundry Co. lor
627 units. Mr. Knudsen has Inspect
ed at Aberdeen the light tanks and
the revised designs lor the heavy
tanks, which have been changed In
certain respects on the basis of com
bat experience In Europe.
The contract for the production
by Packard Motor Co. of Detroit of
9,000 Rolls-Royce liquid-cooled air
craft engines Is about to be signed,
the company having stated that it
is prepared to undertake this project.
Evidence has developed Indicating
progress toward solution, for the
time being at least, of the bottle
necks in the machine tool Industry,
The Embargo Authority has con
tributed substantially to the reten
tion In this country of vital ma
chine tool units which otherwise
would have been exported. Plans
have been worked out to a point
where tomorrow (July 17) a meet
ing of the Machine Tool Defense
Committee, H. S. Vance, head of
the machine tool section of the pro
duction division, and Donald M. Nel
son, co-ordinator of defense pur
chases, will be held to take up a
co-operative plan under which a
definite percentage of machine tool
manufacturing facilities will be re
served for defense needs.
FROM SIDNEY HILLMAN. DI
VISION OF LABOR SUPPLY.—
This division has emphasized
formulation of plans for train
ing skilled workers in industry
under the direction of Owen D.
Young as advisory aid to Sidney
Hillman. Already between 30,000
and 40,000 enrollees are actively tak
ing training through facilities pro
vided by this program. In the vo
cational schools being utilized, train
ing is made available to workers on
| W. P. A. and N. Y. A. rolls and oth
j ers interested in securing such
courses, particularly those who feel
the need for refresher training to
retrieve their earlier skill.
Combined facilities of the N. Y. A.,
C. C. C. and Office of Education are
being co-ordinated to assure maxi
| mum use of existing facilities and
agencies of the Government. All
; training is in anticipation of meet
ing such demands for labor as may
arise in connection with the de
fense program. The first and major
! consideration is to provide employ
ment to those who are employable
, and now without jobs. The unem
ployed, in the opinion of this divi
sion, constitute the greatest labor
resource which can be used most ex
peditiously in this connection. It is
interesting to note that up to the
present there have been no specific
requests for skilled labor made to
the defense commission. It is evident
that thus far needs of private indus
I try for skilled and other labor are
being met. ,
Labor Organizations
I Represented on Advisory Board.
This division has organized a La
bor Advisory Board consisting of
representatives of the American
Federation of Labor and the Con
gress of Industrial Organizations,
together with the Railroad Brother
hoods. It meets each week with Mr.
Hillman and has pledged complete
co-operation of its combined mem
bership to the national defense pro
gram.
Through the intervention of the
labor supply division, acting with
the conciliation service of the De
partment of Labor, several serious
production stoppages have been
averted in the General Motors Corp.,
on Pacific Coast shipping, in ship
building on the gulf coast, in the
j copper industry in Utah, and in the
aluminum industry.
FROM LEON HENDERSON. DI
VISION OF PRICE STABILIZA
TION—The primary effort of this
division, during the past few weeks
has been directed toward the de
termination of the effects of the re
armament program on the Nation’s
price structure.
A central bureau of research and
statistics has been organized under
the direction of Stacy May as a
clearing house for Information re
quired by the various divisions of the
commission, particularly in respect
to information developed from other
Government agencies. Much of this
information deals with the determi
nation of materials and facilities re
quired by the armed forces and the
nature of the resources of the Na
tion available to fill both military
and civilian requirements.
Analysis of both the materials and
resources have been coupled with
consideration of measures for con
trol and price stabilization. Numer
ous proposals for price regulation
are being studied. With Donald
Nelson, co-ordinator of defense pur
chases, consideration is being given
application of priorities from the
viewpoint of their Impact on prices.
Surveys are also being made by this
division of the economic organiza
tion and controls within the bellig
erent countries.
Standards are being formulated to
guide procurement agencies in con
nection with recent legislation au
thorizing negotiated contract* in
lieu of competitive bidding.
Domestic Prices Watched
For Unjustified Increases.
The domestic price structure is un
der constant surveilance. When
price increases appear unjustified,
conferences have been held and will
continue to be arranged. Voluntary
agreement is sought in this con
nection, and thus far business has
evidenced its desire to co-operate.
The complicated problems Involved
In amortization for Income tax pur
poses, as well as those Inherent in
the Government policy for lending
through the R. F. C. to expedite
plant expansion, have occupied con
siderable time in this division. The
whole problem of plant expansion? is
being studied in co-operation with
Commissioners Knudsen and Stet
tinius, as well as representatives of
other Government agencies in
volved.
FROM CHESTER DAVIS, AGRI
CULTURAL DIVISION—Develop
ment of a unit of this division
has been undertaken to work
on the problem of new plant
location for defense purposes with
the view to utilizing surplus labor
particularly in agricultural areas
and thus avoid uneconomic concen
tration of industry.
Under the new powers, created by
Congress, to the Reconstruction
Finance Corp., advance payments
! can be made against future de
liveries of strategic materials. Funds
! thus made available can be used for
the purchase of agricultural com
1 modities. A substantial project in
this connection is now In the process
of preliminary negotiation.
This division has collaborated
w'ith Mr. Hillman in connection
with the development of plans for
! training American youth with a
: view to affording equal opportuni
ties to farm youth and those of the
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cities in the program soon to be in
augurated.
Several Wieses ef
Problem Taken Up.
Extensive collaboration with the
Department of Agriculture has been
undertaken in developing plans to:
(A) Promote increased use of sur
plus farm products at home and,
where possible, abroad to minimise
the effect of curtailed export outlets.
(B) Maintain agricultural produc
tion at most favorable levels for na
tional defense and health needs,
promoting simultaneously' the ob
jective of parity prices for farm
products.
(C) Work out in advance specific
plans to protect producers from un
favorable effects or changes that
may result from international de
velopments.
FROM MISS HARRIET ELLIOT,
DIVISION OF CONSUMER PRO
TECTION—This division has laid
the ground work for an exten
sive educational' campaign to mo
bilize public sentiment behind the
Idea that the civilian population
must be prepared physically to meet
the defense responsibilities placed
upon It by any emergency. To this
end the commission has approved
emphasizing the Importance wf
health and public welfare In the de
fense program. A co-ordinating
committee has been organized to
facilitate development of these
aspects of the program. The com
mittee Includes Surgeon - General
Thomas Parran, Dr. M. L. Wilson,
director, Extension Service, Depart
ment of Agriculture; Miss Kath
arine Lenroot, head of the Chil
dren’s Bureau. Department of Labor,
and Arthur J. Altmeyer, chairman,
Social Security Board.
Civic Leaden Consulted
On Human Resources.
Definite plans have been prepafed
for meetings with; (1) Leaders of
civic organizations called together to
mobilize human resources and direct
them into constructive channels; (2)
retailers, organized consumer groups,
manufacturers of consumer goods
and wholesalers.
Protection of the public from un
justifiable Increases In consumer
goods prices is a major project of
this division.
The stall In co-operation with
economists of other Government
agencies is on the alert in this con
nection and continuing studies are
under way to form the basis for
whatever recommendations may be
needed.
FROM RALPH BUDD, DIVI
SION OF TRANSPORTATION—
Emphasis has been placed by
this division upon securing a
suitable car supply to meet emer
gency demands upon rail transpor
tation. Tills end this division is
working closely with the Association
of American Railroads and the
American Short Line Railroad Asso
ciation. There is. at present, a dis
location of car loadings in the coun
try. Certain areas are confronted
with definite increases while others
are experiencing a decrease.
Concrete recommendations have
already been drawn up for acquisi
tion of very substantial numbers of
special rolling stock for handling
troops and their equipment. Con
ferences have been held with repre
sentatives of railway car shope in
Illinois, Indiana, Missouri and
Pennsylvania to discuss cost and
types of cars.
As a result of the study of the
availability of serviceable freight
cars, Mr. Budd has urged upon the
Association of American Railroads,
"the need for full performance by all
lines of the repair work necessary to
reduce cars In bad order to not more
than S per cent, as was agreed.”
Attention Being Given
To Army Maneuvers.
The entire subject of rail trans
portation, including special refer
ence to Army maneuvers scheduled
later this year, Is receiving earnest
and Intelligent consideration by Mr.
Budd and his entire staff.
Special attention Is being given by
the consultant to the commissioner
of transportation representing the
Great Lakes carriers in connection
with the movement of iron ore, a
basic factor in the defense program.
Four consultants representing the
highway users are making a study
of defense program requirements In
their fields to estimate demands
which may be made upon that form
of transportation In an emergency.
Studies Involving the Inland
waterways and pipe line problems
are being surveyed. Action has been
taken to Interest the various pipe
line operators In effecting the most
efficient transportation of petroleum
and its by-products by pipe line for
emergency requirements.
War 'Beautiful Test/
Nazi Labor Chief Says
Br the Aiiocleted Press.
BAYREUTH, Germany, July 17.—
“War is no punishment, but rather
the ultimate and most beautiful
test of strength of the German
people and their fitness to live,”
Nazi Labor Front Leader Robert
Ley declared last night at a press
reception.
He spoke to German newsmen
before the annual Wagnerian music
festival here, which is being pro
duced on a scale as elaborate as in
peacetime.
"For no other people is It so
completely true that the lyre and
the sword belong together,” Ley as
serted.
Consequently, he said, the festi
val is being attended by 19,000
soldiers and workers as guests of
Adolf Hitler.
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