Evening star., 1944-12-13
Clayton Tells
Senators About
Cotton Deals
Firms Foreign Sales
Described; Hearing to
Recall MucLeish
BULLETIN.

The Senate Foreign Rela-
tions Committee completed it's
questioning of Will L. Clayton
shortly after / pm. and ar
ranged to reconvene at 2:30
pm. to hear Archibald Mac
LeiSh.
The Senate Foreign Relations
Committee today conducted a
searching inquiry into the views
of Will L. Clayton on foreign
economic problems and postwar
international trade.
The 64-year-old former cotton
broker, nominated to be an Assist
ant Secretary of State, was recalled
by the committee in its second day
of an inquiry into six State Depart
ment nominations. One of the other
nominees, Archibald MacLeish, also
is to be recalled for questioning.
The other appointees include Jo-
seph c.. Grew, named as Undersecre-
tary of State, and three other AS
sistant Secretaries-Nelson Rocke-
feller, James c. Dunn and Brig. Gen.
Julius C. Holmes.
Mr.. Clayton was asked particularly
about dealings of the cotton firm Of
Anderson & Clayton Co., with Japan,
Germany and Italy. Mr.. Clayton left
the firm in 1910 when he entered
Government service.
Tells of Cotton Sales.
Under questioning by Senator La
Toilette, Progressive, of Wisconsin,
Mr.. Clayton said the company made
its last sale of American cotton to
Japan about year before the at
tack on Pearl Harbor, but that a.
Peruvian subsidiary made a sale to
the japanese about three months
before Pearl Harbor.
Moving around to a seat near Mr..
Clayton's elbow, Senator La Fol-
lette opened a big, thick envelope
which he said contained restricted
documents obtained from certain
Federal agencies under an injunc-
ton of secrecy. He explained that
the committee had ruled they could
be used as the basis for his ques-
tions, although they were not to be
put into the hearing record.
Senator La Toilette asked about
Anderson-Clayton's dealings with
Italian customers after the outbreak
of the war in Europe in 1889. Mr..
Clayton said that while shipments
were made to Italy prior to her entry
into the struggle, the company
worked very closely with the British,
who had adopted navicert control of
shipping, with sales made only to
firms which, in the estimation of
} both Anderson Clayton and the
British, intended the cotton for their
own use and not for re-export to
Germany.
i Mr.. Clayton also denied knowledge
of any shipments of cotton by An
derson-Clayton's South American
subsidiaries going to Shanghai, then
into Japanese hands.
Never Heard of Arrangement.
Under further questioning, Mr..
Clayton said he had meyer heard
of any arrangement for shipping
1000 bales of cotton to Barcelona,
Spain, for later transhipment into
occupied France or of a proposal
for utilization of Brazilian bonds
held in occupied France to pay for
cotton purchased from an Ander-
son. Clayton subsidiary.
| You don't mean to say that An
derson-Clayton ever proposed such
a thing" as shipment of cotton into
occupied France?" Mr.. Clayton
asked.
! Senator La Toilette said no, the
proposal was" and then he
handed document to Mr. Clayton.
Il am sure that Anderson-C Clay
ton never shipped any yarn to occu-
pied France" Mr.. Clayton remarked
after studying the document.
Mr.. Clayton told the committee
his policy as Assistant Secretary of
State would be to have nothing to
do with any of the transactions
abroad of the cotton company in
which his money is invested. He
said he would ask the Secretary of
State, if any question ever came
up, to designate some other person
to deal with it.
Mr.. Clayton said he believed
American cotton production should
(see NOMINATIONS, Page A-5J
liar II 49,