HIT BY THE WAR

Wairarapa Times-Age, 24 April 1942, Page 4

HIT BY THE WAR

ARGENTINE ECONOMY lost export outlets. MOUNTING STORES OF GRAIN & LINSEED. Argentina’s granaries are overflowing as the nation gropes its way into the New Year seeking political but fearing economic isolation, a special correspondent, of the “Christian Science Monitor” wrote in February last. The state of siege may prevent a complete picture for the citizen of domestic and foreign issues, especially in continental defence, but the stodgy truth of the country’s economic position is unfolded in the dry and unremitting labour of the statistical officers.

Argentina began this year with total warehoused stocks of 4,592,537 tons of wheat and 1,225,697 tons of linseed. These are considerable increases on the December returns and are accounted for by the ingathering of hew harvests. But, however, temporary increases may be explained, the definite tendency is irresistible. Last year’s exports were the lowest in volume for a quarter of a century and the decline is due almost exclusively to grain and linseed. The 1940 exports of 9,467,000 tons dropped last year to 6,231,000 tons, and that was just about the measure of the decline in cereal shipments. BUDGET IN SUSPENSE.

There is no budget this year. Because Congress has not passed the estimates presented to it, the Government has prorogued last year’s, which in turn, was a prorogation of 1940’5. There are certain vegetative increases, however, in public administration which always require fresh financing, unless economies are effected. The result is an estimated deficit of 186,500,000 pesos, more than 15 per cent of total expenditure.

The general economic situation may easily become worse. Local assembly plants for automobiles are hardly likely to continue if corresponding North American production is diverted to the war effort. Factories, already rationed with prime material, are only at the beginning of their difficulties if shipping is restricted. The Government insists, almost screams, that the difficulties are purely economic—the logical results of war and a blockaded Europe. So far, in effect, it has argued that the difficulties --these great trials —must be borne under’ “absolute neutrality,” so that, when the war is over, everything will be all right again and prosperity restored. POPULACE ANTI-AXIS. The Argentines themselves, so far as majority impressions can be collected, think otherwise. They cannot say so because of the state of siege, declared by the Government to facilitate fulfilment of international obligations arising from the latest developments —that is to say, v the arrival of vzar in the western hemisphere.

The popular standpoint is that, as an export country, Argentina should have a foreign policy in consonance with its economic stake in the world markets. With the war issues crystal clear from the beginning, it is poihted out, it was practical politics- for Argentina to have thrown in its lot with Britain and its allies immediately. With North America involved in the conflict none seems to understand why there should still be talk of “absolute neutrality.” Question any pure Argentine find he will regret that his Government edged and dilly-dallied on foreign policy until it was faced with isolation or capitulation at Rio de Janeiro. With, the United States fighting for its very existence, no one in Buenos Aires believes that that country will continue normal good neighbourly trade with Argentina unless there is satisfactory political co-operation.