WAR EXPLOSIVES

Wairarapa Times-Age, 10 February 1940, Page 6

WAR EXPLOSIVES

PRODUCTION IN UNITED STATES BRITAIN FINANCING NEW FACTORY. DISCUSSION AT WHITE HOUSE. By Telegraph—Press Association— Copyright. WASHINGTON, February 9. Atlas Powder Company officials disclose that Britain has advanced money for the construction of an explosives plant, the total output of which will be consigned to England and Franco. It is ■ understood payment will be gauged according to tonnage. It is officially stated that the production capacity of the United States aero engine plants is 1000 monthly and will reach 1500 by mid-July and 2000 by the end of the year. It is estimated that the year’s production will be about 15,000 motors of an average of 1000 horsepower, of which the United States army and navy will require 7500 to 8000. The Allies have contracted for virtually all the remainder.

The Administration’s policy to meet the long range effects of continued large war purchases from the United States is likely to result in a conference between President Roosevelt, Mr Hull. Mr Woodring, Mr Edison and departmental heads at the White House today.

It is feared that foreign purchases may rapidly increase the prices ol materials needed at home, and also that the financing of expanded aeroplane factories with foreign capital may be carried too far and result in a post-war collapse of industry. President Roosevelt is reported to be anxious to formulate a policy for keeping war demands within reasonable bounds. The Secretary to the Treasury, Mr Morgenthau. declared that ho favoured letting industry formulate its own policies.