Evening star., 1945-06-25
Argentina Fails
To o0usf Nazis,
Clayton Says
Hasn't Eliminated
A Single Speorheod,
He Tells Senators
By the Associated Press,

He Tells Senators
BY the Associated Press.
A Senate committee received
State Department evidence to-
day that Argentina has failed to
eliminate a single case of sus-
pected German economic pene-
tration.
Appearing before a Military AZ
fairs Subcommittee studying Nazi
plans for third world war, As
sistant Secretary of State Will l..
Clayton submitted documents sum-
marizing results of department
campaign to stamp out Axis spear
heads in Latin America by sup
planting enemy control of various
business enterprises with friendly
ownership.
Mr.. Clayton said that in the case
of Argentina-most recent Western
Hemisphere member of the United
Nations-theer are 104 such spear
heads I'm which no action or non
elimination action has been taken
to date" Four others are In the
process Of elimination, he said. but
none has been eliminated COM
pletely.
Uruguay Also Listed.
IJr1l011aU
elimination of the enemy spear
heads, Mr.. Clayton said. None has
been completely put out of business.
only one is in the process of being
closed and q have not been acted
on in any way, he said.
Brazil, on the other hand. has
eliminated completely 48 listed
spearheads, has 70 others In the
process of elimination and has none
IN which no action has been taken
The spearheads, Mr.. Clayton said,
are companies which are known
centers Of espionage or other aggres-
slve activity. Elimination means
mat the company has either been
llquidated. seized and operated by
the local South American govern
ment in question, or sold to non
Nazi interests"
Haiti showed Is complete elimina-
tlons, Chile % and Ecuador 10,
Mr.. Clayton said results have
oeeh "encouraging," adding:
1t seems safe prediction .
TO say that German economic and
political penetration in this hemi-
sphere has. for the most part, been
dealt blow from which it will prob
ably not recover; and that the pros
poets are reasonably bright for the
substantial elimination of Axis
spearhead firms even in the areas
where they still survive"
Noting that victory in Europe has
brought an end to such former prob
lens as blockade, shipments of sun
plies from Germany to dangerous
firms in this hemisphere and re-
established trade relationships. Mr..
Clayton added:
What We do have to worry about
are those persons who may be hiding
Nazi loot or flight capital, and about
the control of German investments
IN all Of the republics"
The subcommittee, headed bv
Chairman Kilgore ordered its hear
ings on the basis of secret German
documents showing how the Nazis
hoped to hide behind a front of
postwar industrial progress while
maneuvering toward a new attempt
at world domination.
Mr.. Clayton, detailing Allied ef-
forts to thwart Axis war-making
possibilities in any field, told of Nazi
looting OF wealth and property. in
cluding art objects in countries over
run by German armies.
Saved Brains and SkilIs.
The latter. he said, because of
the ease with which they can be
concealed and smuggled, constitute
one means by which the Nazis could
transmit property abroad to be con-
verted into cash for use in arma-
ment research and development, es-
pionage or propaganda"
But flight of capital, Mr.. CLAYTON
said, "is not of treasure alone; the
brains and skills of men are also the
subjects Of German efforts to save
potential strength for another war"
Saying this is particularly true of
German scientific and managerial
personnel, the witness recited in
stances in which he said Germans
sought to set up business in foreign
countries by supplying their own
equipment and the men to run
them.
I'm a certain neutral country" M.
Clayton said, "the German elec-
trical company. Telefunken, bought
a plant in the summer of 1943. The
plant was Immediately modernized
and enlarged. 1t now has complete
facilities for testing the most intri-
cate short-wave radio equipment,
and magnificently equipped labora-
tories for research on the ultra short
wave and tone frequency field"