The news-review. (Roseburg, Or.) 1948-1994, August 10, 1949, Page 15, Image 15

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    World Bank Loans Shielded
From Being Written Off As
Gifts From American People
Terms On "Hard-Headed" Business
Basis Cited By David Gordon, Staff
Worker, On Visit With Roseburg Kin
. . i i '"" dltor. N.w.-Rtvl.w
America it lending money to Europe today through mtdium
which safeguards its lo.ns against bting written off as gifts by
the American people. A "hard-headed businessman" might make
the international investments which thit nation it making with
47 other countries, with some promise of a return.
This is being achieved through the International Bank for Re
construction and Development, more commonly known as the
world bank," said David Gordon of Washington, D. C, in Rose
burg Monday for a visit with relatives.
uoraon, who describes himself
at "a handy man" on the staff of
the World bank, explained that
the organization was set up fol
lowing the Bretton Woods confer
ence in August of 1944. Forty
eight member nations have con
tributed to its capitalization of
eight billion dollars.
Al the largest member, the
United States has paid or pledged
approximately one-third of this
figure. Other nations are repre
sented by lesser amounts, propor
tionate representation on the
board of directors.
Gordon pointed out that loans,
mainly for technical and indus
trial development in the world's
backward areas, may be made
only within the 48-member na
tions to a government, or under
guarantee of a government to a
private industry.
$680 Million So Far Loaned
-oans made during the three
years of the bank's ex'stence
have totaled about $680,000,000.
largely in gold or in local curren
cy of the nation's involved, said
Gordon. Most of the loans have
been made in Europe, but several
have also been made in South
One large loan was made in
Brazil, backed by the Brazilian
government, to the Brazilian
trAf lily -.
- i I 1 I , . 'f,l
POLICE SHOOT IT OUT WITH TRAPPED CUNMAN Heavily armed police reinforcements
(left! arrive to aid policemen (background) engaged in a gun battle with a desperado trapped
in a Chicago railway express office after wounding three officers. Cunman, identified by police
as Edward S. Shumak of Chicago, was shot to death after police poured machine gun bullets and
tear gas into the washroom, (AP Wirephoto Copyright, 1949, by the Chicago Sun-Times.)
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pany, a Canadian corporation, for
hydroelectric development. Simi
lar loans have been made in
Mexico and Chile.
The World bank lends its tech
nical assistance by sending mis
sions to study overall develop
ment program of backward na
tions, establish over-all priorities
for needed projects, advise
against unproductive use of
money, and set-up banking and
financial systems.
Russia Excluded
Russia is not a member of the
International Bank for Recon
struction and Development, but
some nations within Russia's
sphere in Europe are. The bank is
"not an agency of U. S. foreign
policy" and under its charter the
bank cannot be governed by po
litical considerations, Gordon
pointed out.
Discussions have been held con
cerning loans to be made in Po
land and Czechoslovakia, while
mission is now in Yugoslavia. A
loan has been made to Finland.
Benefit. Outwelght Risk
Although there are certain po
litical risks in making loans in
these countries, the value of the
loans often outweigh such risks,
Gordon said.
"Our loans are not relief," he
pointed out. "They have to be
paid back, and they are used to
increase production." The loans
'are what a "hard-headed business
man" might undertake, but could
not necessarily afford because of
tne risks oi roreign investment.
The bank can make such loans
with the guarantees of the 38
member nations.
By the sale of bonds, the bank
also gives the private investor a
safe means to invest abroad. The
bank has sold some $282,000,000
worth of bonds to private invest
ors, Gordon said.
Although the bank hai been
operating approximately three
years, it is relatively soon to de
termine its value. Gordon pointed
out the bank will aid in restoring
the balance of international trade
and finances and in decreasing
the dollar shortage in other na
tions, which cannot now produce
goods at low enough cost to com
pete in the American market.
The bank provides a means for
Increasing imports to the United
States and raising standards of
living abroad.
The World bank cooperates
closely with America's Expo;t
Import bank, and in Europe with
the Economic Cooperation admin
istration. The latter administers
Marshall plan aid.
Cosmopolitan Staff
Gordon said there Is a cosmo
politan atmosphere in the bank's
headquarters in Washington, D.
C. Employes represent 24 differ
ent nations. The president Is
Eugene Black, formerly senior
vice president of the Chase Na
tional bank. He and the vice
president are American; head of
the loan edpartment is British;
head of economic research,
secretary, Canadian; treasurer,
Dutch, and general counsel,
American. Other nationalities are
represented at lower levels.
Gordon is a native of New
Hampshire, formerly employed
for a number of years by the
federal government. He and his
wife were here on their motor
tour of the west. In Roseburg Ihey
visited at the home of Mrs. Gor
don's twin sister, Mrs. Ross New
comb, and her husband. They
were to be here two days.
Forest Fire In
Idaho Spreads As
Wind Develops
BOISE. Idaho. Aug. 9 UP) A
raging forest fire forced a 75
man work camp to move out of
its path today as the wind-whipped
blaze spread over mountain
ous central Idaho.
Six hundred men are at the
scene, south of the balmon river
which cuts In a deep gorge
through an area accessible only
by pack train or from the air.
Forest service oiticlals said tne
fire has spread over an area of
4.000 to 5,000 acres with the blaze
still unchecked. Barring rain, they
said it fight be a week before it
is controlled.
Pavette National Forest Dis
patcher Vassar said a "blow up"
during the night forced the 75-
man camp to move.
The camp was re-estaonsnea
on a nigh ridge on tne extreme
east side of the blaze.
'They'll be supplied entirely
by air, Vassar said.
Tbe fire has been the indirect
cause of one death. Hans T. Holt,
74, of the Golden Anchor mine
died when his truck overturned
as he drove another man to the
fire lines.
Another Idaho fire was report
ed controlled.
The controlled place Is In the
Boise National forest northeast
of Idaho City. It has destroyed
2.400 acres of timber.
Fire fighters were taken to the
Salmon river lire irom as iar as
Salt Lake City, Reno and San
Dave Johnson, aviation editor
of the Idaho statesman at Boise,
who made a flight over the fire,
said living embers were starting
spot fires ahead of the main
23 Greek Communists
Sentenced To Death
ATHENS. Aug. 10. UP)
Twenty-three communists, includ
ing Brig. Badekos and his wife,
were sentenced to death by two
courts-martial yesterday. They
were accused of responsibility for
iui Killings.
Hve other women are amone
the doomed group.
Badekos, also known as Nicho
las Balalas, was convicted on five
counts. He was captured week
ago at the beginning of the cur
rent Greek army offensive against
the communist-led guerrillas In
the Grammos mountain area.
A general staff communique
said the offensive In the Gram
mos area Is continuing.
HELENA, Mont., Aug. 9. (.Pi
Man was winning today his fight
against the torrent of fire that
consumed li tenow numans ana
devastated 6.000 woodland acres.
The wild flames were being
corralled by 500 tolling men, dog
tired and grimy after a four-day
struggle. A. D. Moir, Helena Na
tional Forest Supervisor, said the
blaze should be 100 percent con-
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trolled by tomorrow.
Final control cannot be assured
until more mop-up work is done,
Moir said.
Regional Assistant Chief of
Fire Control Ralph Space of Mis
soula said fire history in the re
gion dates from the disastrous
fire of 1910, when more than 3,-
000,000 acres of timber land were
blackened. Probably the most
disastrous Montana fire since
1910, he added, was the half moon
fire near Kallspell in 1929.
'The last real bad fire we
had," Space went on. "was in
1934 when the Pete King fire in
Idaho destroyed 50,000-60.000
acres in the Selway and Lochsaw
War Fear Easing,
U. N. Secretary
Says In Report
LAK2 SUCCESS. Aug. 10.
U. N. Secret ry-General Trygve nas aavancea a six-noint pro
gram to strengthen the world
peace organization and reduce
the dangers of war.
The program is outlined in
Lle'i fourth annual report which
was published Monday. The re
port, by far the most optimistic
yet written by the Secretary-General,
said the fear of war has
definitely decreased since his last
Lie called the past 12 months
"a year of progress towards a
more peaceful world." Biggest
factor in the Improved atmo3
phere, he said, was the lifting of
the Berlin blockade.
At the top of his six-point pro
gram was continued consultation
and conciliation among the big
powers. He offered to help bring
the East and West together in
such outstanding world problems
as the German, Austrian and
Japanese peace treaties, atomic
control and creation of an inter
national police force.
"It is essential," he said, "for
(he great powers to keep in con
tact, to talk things over, and ser
iously to negotiate with one an
other." His other points dealt primari
ly with controversies before the
U.N. such as the dixjsllion of
Italy'a pre-war colonies, the ad
mission of new members and the
creation of a 300-man U.N. guard
force to aid peace missions
One of the hottest Issues was
the Italian colonies question
which comes up in the general
assembly in September. Lie
tumped into the big power squalv
ble with a proposal that the col
onies be placed under direct U.N.
trusteeship, with a single admin
istrator responsible directly to
the trusteeship council.
Russia has Insisted on a direct
trusteeship over the colonies with
a council or commission doing
tbe administering. The United
States and Britain have pushed
a plan which would olace the
colonics under trusteeship, with
individual territories being ad
ministered separately by Britain,
Italy and France.
PORTLAND. Aug. 10. m
Brigadier H. B. Collier, division
commander of he Salvation
Army for Oregon and southern
Idaho, has been promoted to
commands of the Hawaiian is
lands division.
He will leave for Honolulu after
a successor is named here.
Shopkeeper Makes Good
On Rash Promise To Kid
8POKANE, Aug. 9 P Two
little boys about flv. old
looked longingly at a display
of hunting knives, their .yea
fastened on a card of pearl
handled knlvei.
On. held up a tiny plattio
toy animal before the shopkeep
er: "Will you trade this for
en. of thou knlve.?" he asked,
"No, the only think that I'll
tak. for on. of those knives I.
your two front teeth' Joked
the man.
His mistake. A few days la
ter the boys were back. One
displayed a wide gap In hi.
mouth and two front teeth In
the palm of hi. hand.
He got the knife.
Wed., Aug. 10, 194 The News-Review, Roseburg, Ore. S
Blockading Of Red Chinese Ports
Poses Tough Subsistence Problem
Associated Press Foreign Newi Analyst
Chiang Kai-shek's strategic device for blockading Red Chinese
ports la working.
That Is, It is not winning the civil war or preventing Its loss lor
free China ii crumbling steadily.
But, by cutting ihe reds off
from normal foreign trade via
the sea, Chiang is driving them
more firmly into the arms of
Soviet Russia than ever before.
The prospect of normal trade be
tween red China ap t the West is
With Shanghai dying on their
hands as a great ixirt. the reds
are planning an organized evacu
ation of the city's surplus popula
tion and plan to reduce its event
ually to about hall lis present
swollen population of six million
The reds could he expected to
align themselves politically with
Moscow, but economically the
cards were stacked at first in
favor of considerable rade with
the west. This trt.'e, everyone
felt sure, would be largely on
red terms, but still was alluring
enough that many loreigner busi
nessmen planned to stay on and
give it a whirl. The fact was and
still is that Soviet Russia can
not be expected K supply th
vast range of industilal and con
sumer goods which China needs
to rebuild.
Whit. Elephants Acquired
But since the blockade by sea
and air went Into effect after
the fall of Shanghai, shipping has
been greatly curtailed. Factories
lacKea raw matetum. ine lob-
less Increased. The currency slip
ped. The reds realized what white
elephants they had fallen heir
to in tne places like Shanghai
and Tientsin. Without a large
volume of foreign trade they
mean noining oui irouoie.
Deodorant Offer Draws
Humor From L. A. Mayor
The mayor of Los Angeles has
accepted an offer froir a Miami,
ria., cnemical company to sup
ply gratis its deodorant In remov
ing unidentified foul odors that
have been permeating the atmos
phere here.
Saving he appreciated the hu
mor of the situation. Mayor Flet
cher Bowron commented that his
office "still has the odor of
bag of Florida oranges that was
presented to me several weeks
ago by some well meaning citi
zens of your slate who were va
cationing in California and en
joying our delightful summer
Black boars are fond of roots,
nuts, berries, and fruit, but will
also eat flesh and fish.
This has forced 'i drastic shift
In the reds' economic policy. It
appears to have speeded up their
political polarization. At first
their idea seemed to be to buy
abroad from anyon- tiiat would
treat them on what thev consid
ered equal terms. ,Sow the talk
is of getting along on what
China can produce herself, plus
what Soviet Russia uin supply.
This greatlv limits tne prosoect
for business of any kind in China,
and means hard times.
jfL Leslie Pfaff
jzu Tf era r.
Phone 1J4S-J
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