Evening star., 1946-02-26
kilgore Fears Riff
On German Holdings
In Neutral Nations
BY the Assoeiuted Pres,

Senator Kilgore, Democrat, OF
West Virginia expressed concern
today lest a rift develop in the
United Nations over German
holdings in neutral countries
which can be seized as repara-
tionS.
Senator Kilgore made the COM
ment to newSmen after hearing Rus
sell A. Nixon, former official of the
American military government in
Germany, assert that the State De-
partment and the British and
French foreign Offices have sought
to eliminate Russia from the search
for German assets in Spain, Argen-
tina, Portugal, Sweden and SWitzer-
land.
Mr. Nixon said the purpose was
to go easy" in demanding German
assets in those countries.
Sees Threat of New War.
Senator Kilgore said he wanted to
hear from the State Department,
but asked, with reference to Mr..
Nixons version:
Isn't it start toward dividing
the United Nations-Russia and
Middle Europe on the one hand and
Britain, France, the United States
and the rest of the world on the
other?"
That, he said, would tend toward
balance of power politics and raise
the threat of future great war.
Mr.. Nixon testified yesterday be-
fore Senate Military Affairs Sub
committee of which Senator Kilgore
is chairman. He is Washington rep
resentative of the CIO United Elec-
trlcal Workers, but said he was
speaking as private citizen on the
basis of information gained as act
ing director of the division of in
vestigation of cartels and external
assets, Office of Military Government
in Germany, in 1945.
In that connection, Mr.. Nixon was
a member of the German External
Property Commission composed of
representatives of the four occupy
ing powers. His division of the
military government was abolished
last December Is and Mr.. Nixon was
returned to this country and dis
charged.
AS Mr.. Nixon told the story, there
was a difference of opinion between
him and the State Department then
concerning an Interpretation of the
Potsdam agreement.
At PotSdam, Russia renowned "all
claim in respect of reparations to
German foreign assets" in countries
other than Bulgaria. Finland, Hun
gary, Rumania and Western Austria.
Mr.. Nixon said the State Depart
ment proposed the work of the Ex-
ternal Property Commission be di-
vided into two units:
One in which Russia would have ;
sole voting power and which would ,
be concerned with German assets ,
in those countries where Russia had !,
not ~renounced claims for repara- !,
tions.
Champions Equal Rights.
A second in which the United
States, Britain and France would ,
have voting power, with a Russian ,
representative as observer. to be
with other nations where ,
there are German assets. l.
Mr.. Nixon contended that Russia,
by renouncing claims, had not re-
nounced equal rights in ferreting
out German assets in other coun-
tries.
Several weeks ago, Mr.. Nixon ac-
cused the State Department of pro
tecting Germany assets" In reply,
the department called his statements
misleading and insupportable" 1t
also said "the practice of the de-
partment has been and is to keep the
U. S. S. R. fully informed on all steps
on reparations.
Senator Kilgore said he hopes the
committee will hear State Depart
ment officials next week