Evening star., 1941-07-11
US. Studies Blacklist
Of Firms Serving as
Nazi Buying Agents
Leakage Of Supplies to
Germany Is Believed
Greatly CurtoiIed
BY JOHN NJ, HIGHTOWER,
Assnclated Press Stah Writer


United States defense officials, de-
termined to end leakage of Amer
team goods to Germany, were re-
ported giving serious consideration
today to the compilation of world
wide list of firms which serve as
Nazi purchasing agents.
The British are known to have
q blacklist" AS such listines are
called when prepared by belligerent
governments, and presumably this
information has been made avail
able to American ofiicials for such
Use as they desire.
Other sources of information un-
derstood to be at the disposal of
Brig. Gen. Russell L. Maxwell, ex-
port control chief. include an in
ventory being made by the Treas
TRY of foreign assets frozen in this
country and data on Nazi activities
in South America gathered by the
once of Commercial and Cultural
Relations between the American Re-
publics.
Flow Believed Curtaiied.
The extent to which American
manufactured supplies and raw ma
terials-steel, oil and the like-may
now be reaching Germany was not
ascertainable. Several factors how
ever lead officials to believe that
the flow has been greatly curtailed.
In the first place the hostilities
between the Reich and Russia has
had the effect of closing the Siberian
back-door route for supplies to Ger
many. Furthermore, the United
States has imposed export restric-
tions on most military valuable sup
plies in recent months. and stimuli
taneously has been waRine virtual
economic warfare on suspected Axis
agents in South America.
Guide for Departments.
II any further leaks are 10 be
plugged, the next step was believed
to be the preparation OF q master
list, which would provide 4 guide
for all interested Government de-
partments and also give exporters
an index enabling them to deter
mine what firms to deal with.
At the same time, this and other
steps were described as representing
In some respects an expansion of
the Governments export control
policy. Heretofore the primary pur-
pose of that policy has been to keep
In the United States all materials
required for defense production. Now
the indication is that there is
rapidly being added the specific pur-
pose of preventing any American ex-
ports from falling into the hands of
firms which would forward them to
Germany.
Possibly the most progress along
this line to date, according to all
indications. has been made in South
America where several countries
have set up restrictions of their own
to prevent export of the vital United
States materials reported reaching
them In large quantities.
Countries agreeing to establish
their own control systems receive
blanket licenses to obtain supplies
N this country, and, due to that
economic encouragement, the num-
Der of those having such systems is
expected to grow rapidly.
Rockefeller Reports.
Another aspect of the economic
situation in South America was re-
ported on today by Nelson Rookie
feller, co-ordinator of relations with
the American republics. who started
= drive several months ago to have
American businessmen drop any of
their Latin American representa-
tives who were engaged in anti
American activities.
Mr.. Rockefeller reported that
such anti-American representatives
had lost more than 1000 of their
United States accounts since the
campaign started and that in some
cases q single agent had lost as
many as Is accounts. Further, he
said that more than so per cent of
the snti-American handling of
business for United States firms had
been eliminated.
The chief effect of the Rockefeller
drive, officials said, has been to cut
out fees and other funds which
United States firms once paid to
the pro-Axis men and companies in
South America and which they, in
turn, used for the promotion of
Nazl propaganda there.