24 APRIL 1936, Page 2

The State and the Arms Industry The German General Staff

and the American Sehate Committee investigating the manufacture of armaments have come to opposite conclusions on the desirability of nationalising the armaments industry. A majority of the Senate Committee, in a report issued on Monday, recommends Government manufacture in peace-time of all warships, guns, and ammunition, and ownership by the Government of sufficient additional equipment to supply war-time needs. The German General Staff prefers private ownership, but with strict military control of the entire armaments industry in time of war. The arguments of the Senate Committee in favour of national- isatiOn are strong. The Committee accuses the private arinament firms of bribery, political intrigue, active opposition to limitation of armaments, the making of excessive profits and betrayal of American secrets to foreign countries.- It is unlikely that GovernMent control could eliminate such practices so long as the industry is in private hands, but it does not follow that because such evils prevail in the United States they prevail eqUally everywhere else. That is a matter on which Sir john Eldon Bankes' Committee is expected to throw light as regards conditions in this country.