Evening star., 1941-07-27
Blacklist Hampering
Axis Activities in
South America
Freezing Of Credits Also
Said to Hamper Agents
Propaganda Work
By OLIVER MCKEE.

AS ISSulI Ol Tie dllJl-hAlS OloCh-
list recently announced by the
United States and the freezing of
dollar credits and funds held for
Axis accounts, German and Ital-
ian agents are finding it increas-
ingly difficult to continue their bus
iness and political activities in Lat
in-American countries, according 10
reports reaching trade otlclalS
here.
Approximately $4,000 900 held in
individual Axis accounts in Latin
America already has been frozen,
1t was estimated In addition, many
German and Italian corporations
and business firms have lost their
dollar capital through freezing Or
ders.
In Central America many Axis
firms are closing their Offices and
other companies are discharging
NaZl employees. Reports reaching
Washington indicate that the at
tempts of many Nazi firms to sell
their branches to dummy employees
have either failed or are facing Sc
rious obstacles.
Embassies Hold Securities.
IN many Latin American coun-
tries Germans are reported TO be
depositing their securities for safe
keeping" with German embassies
or legations. One Nazi is said to
have deposited securities valued at
more than $4,000.
The new economic blitzkrieg has
hit particularly hard the large army
Of German and Italian tourists
now travelling in South America.
These tourists" have reached the
Western Hemisphere, either by air,
or by way of Japan. Most of them
carry dollar funds. With dollar
credits frozen. members of the Axis
group face new barriers in their
travels, Federal officials pointed out
Since the German mark became
useless in international trade, many
German banks and commercial
houses have employed dollar de-
posits and dollar credits as business
capital. In several instances. gov
ernment banks have rejected Nazi
offers of large dollar deposits. Both
the Central Banks of Peru and Bra
I'll have refused to accept, under
special protective agreements. new
dollar deposits or credits offered
them by German and Italian con-
Germs.
During the first half of 1941. Ger
man and Italian agents had &C
cumulated large reserves of dollars
and dollar credits. These funds
were intended to provide capital for
both economic and political sctivi-
ties. The freezing of large part of
this capital is thus handicapping
the operations of Nazi agents in
South America.
AS appraised by trade experts, the
dollar blockade of Axis agents
throughout the Americas and the
loss Of representation of United
States products will have three i'm
portant results.
First, with dollar funds blockaded.
Nazi agents will find it difficult to
pay charges for shipping platinum
and other strategic materials from
South America to Europe, on Italian
transatlantic airplanes.
Newsprint to Be Restricted.
Second, representatives of Ger
man firms will be unable to secure
supplies from the United States to
fill orders for goods previously
shipped from Europe. thus reducing
the amount of revenue available for
propaganda purposes.
Third, German banks. many of
which serve as paymasters for po-
lltical and other subversive cam
paigns. will no longer be able to
continue their subsidies.
AS one Of the latest moves in its
economic drive against the Axis in
the Western Hemisphere. this Gov
ernment. it was revealed yesterday,
will refuse export licenses for ship
ment OF newsprint intended for use
OF German and Italian controlled
newspapers and other publications
in South and Central America. AS
a result of the cutting of supplies
from Scandinavia, Latin American
newspapers are now almost entirely
dependent for their newsprint on
shipments from North America.
American officials have prepared
= complete list of Latin American
publications known TO be receiving
Axis subsidies. Shipments of news
print, hereafter, will be confined to
newspapers and other publications
that are not under Axis control, or
receiving Axis subsidies.