Evening star. [volume] (Washington, D.C.) 1854-1972, 1941-10-23
New Axis Squeeze
Finances Propaganda
In South America
Nationals Forced to Place
Savings on Deposit
With Embassies
BY OLIVER MCKEE.

With their taxes on the profits of
German and italian commercial
houses rapidly diminishing in value
rs a revenue producer, for the rea-
son that the United States blacklist
and parallel measures taken by
other American Republics have cut
heavily into the business of these
firms, the Axis has devised a new
scheme to squeeze its nationals in
South and Central America, accord
ing to information received by Off
cials here.
Axis nationals are now required
to make regular deposits in savings
accounts, for use as nest egg when
they return home after the war.
These deposits, it is reported, are
made through Axis embassies, lega-
tons and consulates. Depositors are
told that after the war they will be
paid back two and half times the
amount of the credits which have
accumulated.
Control of these savings is in the
hands of the Nazis and is thus avail
able to help finance Axis propa-
ganda and other activities in the
Western Hemisphere.
All Nationals Listed.
The German and Italian alien
population in Latin America is eSti-
mated to number between 100000
and 100000. Though many Ger
mans and Italians have become
citizens of Latin American coun-
tries, Berlin and Rome still claim
their allegiance and are demanding
their support in the battle between
totalitarianiSm and democracy.
Axis Embassies and Legations,
which maintain large stats in Latin
America, are said to have complete
card indexes of all Germans and
Italians in the American repub-
lies. Commercial Attaches examine
regularly the books of Axis bust
ness firms.
The Axis imposes a 10 per cent
levy on the profits of German and
italian businessmen in Latin Amer
lea. In the past, some of these
firms handled United States mer-
chandise, and served as representa-
tiveS of American exporters. This
meant that Americans were indi-
rectly helping to finance Nazi oper-
atoms in the New World
Revenue Falls OFF.
The recent United States black
Eet L.
have made it impossible for many
German and italian companies to
secure needed machinery and mate
rails AS result, the levy on
profits is now producing compare
lively little revenue.
As another plan to tap their earn
mgs, the Axis has forced German
and italian nationals to purchase
food or other merchandise orders
for delivery to their relatives in
Europe. Purchasers are promised
that their relatives will receive
goods valued at twice the amount
of the deposits. Funds thus COL
lected, 1t is reported, are also being
used to finance Nazi activities in
Latin America.
AS the next step the Axis is re-
ported to be considering forced
sales Of property owned by Germans
and Italians.
Under a decree promulgated ear
her this month, Guatemala will
place under government admins
tration Germany's large coffee in
terests in that country. The decree
provides that profits derived from
the operation of these enterprises
will be held for the German owners
until the end of the present emer-
gency. OF the coffee exported by
Guatemala last year, more than half
was produced on German owned or
operated plantations.