Evening star., 1941-09-26
Wallace Board Takes
Control Of Most
Export Licenses
Economic Defense
=. Unit Moves to Centrolize
Powers for Its Warfare
FACEGROUND-

BACKGROUND
Economic Defense Board OF
eight cabinet members, NTH Vice
President Wallace as chairman,
= iDas set up BY President RooSe-
relt July 81 to formulate and CO.
ordinate policies inDolred in eco
nomic UdrtGre program against
the AriS. One phase OF this pro-
gram is "blackHsting" from
2 United States trade OF pro-ArtS
firms in Latin America.
The Economic Defense Board
headed by Vice President Wallace
moved for greater Capitalization of
economic warfare and kindred de-
fense measures today by taking over
the issuance of most licenses re-
ouired for export of strategic mate
rials.
In line with President RooSevelt's
order of September Is to intensity
the policy of preventing shipments
to Axis-dominated countries" the
board plans to absorb next week
part of the State Departments Di-
vision of Controls, which heretofore
has issued export licenses in collab-
Grafton with the Office of Export
Control.
Mr.. Wallace's super defense board
=, I,- FOL tho
viously independent and Army
directed Office of Export Control,
with the objective of integrating its
functions into the broader work of
the board.
Under the previous setup, the
State Department issued export
licenses for restricted materials
Under "directives" from the Office
OF Export Control. The new move
for absorption of some functions of
the Division of Controls by the Eco
nomic Defense Board is aimed at
closer integration of the license con-
troll.
New Black List Issued.
The Division of Controls was set
UP in the State Department under
the Neutrality Act which places
authority for issuing licenses for ex-
port of arms, ammunition and i'm
plements of war in Hhe Secretary of
State. Unless the Neutrality Act is
modified, arms licenses will have to
continue to be issued by the State
Department. Guiding policies will
BE co-ordinated. however, under the
Economic Defense Board. Of which
Secretary Hull is member.
Meanwhile, the economic defense
organization issued a supplementary
black list" containing the names
of 300 persons and firms in the other
American republics to whom no
more shipments of American goods
will be permitted.
The 300 black listed firms have
been added to the original pro
claimed list of certain blocked ma
tionals" which contained more than
1900 individuals and firms in Latin
American countries. The names of
IS firms on the original list were de-
leted yesterday because satisfactory
corrective action" had been taken.
In announcing the original black
list" it was stated it was comprised
of persons or firms deemed to be
acting for the benefit of Germany
or Italy or nationals of those coun-
tries and persons to whom the ex-
portation, directly or indirectly, Of
various articles or materials is
deemed detrimental to the interest
of national defense"
French Firms Listed.
On the basis of continuous study
of economic affairs in the other
American republics, the new list in
cludes firms charged with acting
as 'cloaks' for effecting transactions
with firms already on the pro-
claimed list"
Many of the firms already on the
"black list" have suffered severely,
it was said, even to the extent of
being forced to close, for they were
dependent on supplies from the
United States.
On the latest list are Air France,
the French transatlantic airline,
and Lati, the italian overseas air
service, which have provided one of
the few remaining aerial links be-
tween South America and Axis
countries. Curtailment of their fuel
or other needed supplies as result
of the blacklist" action might
force abandonment of their service.
The newspaper Ell Pampero in
Buenos Aires, also named, has been
charged with pro-Nazi activities in
stirring up anti-American feeling in
Argentina
The Transocean News Agency.
which ceased business in the United
States when German consuls here
were ousted. was named on the pro-
claimed list in Chile, Colombia,