Evening star., 1942-01-26


property.
These things. In themselves.
are the tools OF economic warfare.
The freezing Of assets paralyzed
German and Italian efforts to
acquire vital and strategic ma
terials in the Western Hemi-
sphere. The Axis was using
American dollars and American
banking facilities to underwrite
sabotage, spying and propa-
ganda campaign in both North
and South America. The block
ing of Axis assets abruptly choked
this poisonous stream.
Against Japan, the blow was
even more telling. Japan's econ-
omy is heavily dependent on
imports. So Is her war machine.
Japan's purchases Of mercury
vital in certain explosives-in-
creased 240 times in 1910 over
the amounts acquired In 1888.
Her purchases of zinc increased
60 times. In a 212-year pc
riod she bought 1850, 900 tons of
scrap iron and steel here. This
accumulation of stocks for the
war that is now a reality ended
on July 26, when the United
States. Great Britain and the
Dutch simultaneously applied
freezing control.
License Control Applied.
approximately $500 business
enterprises with varying degrees
of foreign domination now are
operating under licenses granted
by the Foreign Funds Control.
Each firm is required to file an
affidavit giving the organiza-
ton of the corporation, officers
and directors. nature of opera
tions, and its principal GUS
toners. Periodic reports must
also be filed. As a result of this,
plus the first comprehensive CEN
sus ever made of foreign-held
property in the United States, the
Treasury Department now has in
its files strategic information on
the structure, activities and back
ground of Axis-owned and Axis
dominated concerns.
All security accounts of for
eigners have been frozen. The
unlicensed importation of securi-
ties from any foreign country
has been prohibited. This struck
against the Axis, which has at
tempted to dump into the Ameri-
can market a wealth of securi-
ties looted from fallen coun-
tries.
Another powerful weapon in
fighting Axis influence has been
the blacklist or, to give it its
legal name, the proclaimed list
Of certain blocked nationals.
First. used against Axis agents in
this hemisphere, the blacklist has
now been extended to cover the
neutral nations of Europe.
The blacklist is, in effect, a roll
can Of inGivduals and firms WITH
which Americans must not trade.
There are now approximately
$500 names on the list. They
represent billions in Axis invest
ment. In one small Central
American country alone German
firms did an annual business OF
between $75,OO0,Oo0 and $780,
100000.
The names on the blacklist-a
Who's Who of Axis undercover
agents and their dummies-rep-
resent months of investigation
and intelligence work by the
Office of the Co-ordinator of In
ter-American Affairs, the De-
partment of Justice, Treasury,
the Department Of Commerce,
and State Departments diplo-
matte missions in the various
countries.
Dislocations Prevented.
Particular effort has been
made to prevent dislocation of
the economy of the democracies
of the Americas, as a result of
the eradication of Axis inf1u-
ences. Guatemala is an exam
pie. The Germans there owned
so per cent of the coffee indus
try. To have barred this Ger
man-grown coffee from the
United States would have Gre
ated a desperate financial crisis
In Guatemala. Treasury and
State Department representa-
tives arranged for the Guate-
malan government to take over
the coffee crop and clear it to
this country through a central
bank in Guatemala City.
The blacklist has effectively
ended, except for small quantity
smuggling, all direct trade with
Axis firms. The problem now is
to deal with firms serving as
cloaks for enemy trading. The
profits from dealing in contra
band are enormous. Some COM
panies have been offered as much
as IS per cent Of the value of an
export cargo merely for the use
Of their names as the shippers.
1t is now accurate to say that
Hitler and his partners will find
no further economic aid or COM
fort in the republics of the Amer
icas.
Directing our campaign in this
battle of trade, the Board of
Economic Warfare aids the mill
tary in the establishment of
blockades. 1t also is empowered
to control exports under a Ii
censing system and to requisition
and seize commodities whose
export is forbidden under emer-