Evening star., 1942-04-04
EVENING STAR WASHINGTON D e. SATURDAY APRIL 1912
Truman Opposes Curb
On American Firms
Foreign Subsidiaries
Senator Disupproves
Berle Recommendation
In STANDARD Oil Case

BY the Associated Press.
Senator Truman, Democrat, Of
Missouri expressed opposition today
to a recommendation by Assistant
Secretary of State A. A. Berle, jr..
that "in some appropriate fashion"
the Government be empowered to
exercise control over international
business dealings Of foreign sub
sidiaries of American companies.
Mr.. Berle made the proposal after
testifying before the Senate Defense
Investigating Committee yesterday
that not until he had initiated steps
to place the Brazilian subsidiary of
Standard Oil Co. New Jersey on
the State Departments blacklist did
Standard agree to halt sales Of gaso-
line to Axis airlines.
The State Department official said
he had no specific proposal in mind
and was not certain how the problem
might be dealt with.
Legislative problem.
"I don't think we've got any busi-
ness controlling the business Of any
sovereign state except our own"
Senator Truman told reporters. IT
don't see how you could legislate in
this country to control a corporate
entity in Brazil"
Business concerns in other coun-
tries own subsidiaries in the United
States, he said, and any effort to
control them would be resisted by
the United States.
Mr.. Berle and William La Varre,
chief of the American Republics
Office for the Commerce Depart
ment, testified yesterday that Stand
ard was unwilling to cut of Ger
man and italian airlines from their
gasoline supply in Brazil, but finally
did so in October, 1941, when the
State Department insisted.
Contract Denied.
Standard ofdcials, Mr.. Berle said.
contended that they were bound
under a contract and would be sub
ject to suit If they did not make the
sales.
Mr.. La Varre, however, asserted
that this was a "subterfuge," and
declared that there was no contract
He suggested that the committee
call on Standard to produce the
document If 1t existed.
Offlcials said that the Brazilian
subsidiary never was actually black
listed, and Mr.. Berle testified that
since October 1t had co-operated
fully with the State Department.
Edward H. Foley, jr., Treasury
general counsel, testified that the
Treasury blocked a proposed sale
Of Standard Ons Hungarian prop
critics to I. G. Farben of Germany
IN 1s4l because approval would
have exposed us to the charge OF
being willing to accept the spoils
OF looting to help preferred Amer
ican companies"
Standards president, w. S. Parish,
testified the German firm offered
$24 ,000,0 900 in gold for the properties,
but on advice of the State Depart
ment and Economic Defense Board
it was rejected. - - -
This country" Mr.. Foley told the
committee, had much more to gain,
in terms Of retaining the confidence
and good will Of overrun European
peoples and subjugated govern
ments, by maintaining the high
moral principle Of preventing Ger
many from acquiring or making use
OF looted assets than this country
lost in not permitting the Stand
ard Oil Co. to sell its HUNGARIAN
properties for funds looted by Ger
many.
ANY approval Of the transaction
which contemplated shipment of
gold from Lisbon to the United
States would have involved us in
a breach of the British blockade
OF Europe which was being main
tanned to weaken Germany's eco
nomic and military position"