Evening star., 1946-02-25
Effort 10 Freeze Out
Russia on German
Assets Charged Here
BY The Assoeiatsd Press

sNo0NAAAFS Az SS&AAo AAAo<NS W. ASNHS
Russia out of a search for Ger
man assets in such countries as
Spain and Argentina.
The contention was voiced to the
Senate War Mobilization Subcom-
mittee by Russell A. Nixon, former
acting director Of the division Of
investigation of cartels and external
assets. Office of Military Govern
ment in Germany.
Before the war Mr.. Nixon was
Washington representative Of the
CIO United Electrical Workers and
has now returned to that post.
Mr.. Nixon told the Senators in
testimony made public today:
IT charge elements in the United
States and the British and French
Foreign Offices with consciously
maneuvering to prevent all four
(occupying) powers from being in
volved in the search for external
assets in the neutral countries be-
cause that would lay bare the Fas-
cist or reactionary regimes in
countries such as Spain, Portugal,
Switzerland, Sweden and Argentina
and would reveal all the elements
of collaboration of certain interests
in the Allied countries with these
regimes.
Has Further Criticisms.
"Such genuine quadripartite ac-
ton would completely upset the ap-
plecart for plans Of compromise
regarding Germany's external assets
In the interest of trade and COM
mercial advantages, and in the in
terest of avoiding the creation Of
too radical regimes in the future"
The witness had further criticisms
Of the way German affairs are being
administered. He declared:
l. The war industry potential of
I. G. Farben, giant German chemi-
cal trust, has not been eliminated
as it was ordered to be.
2. No Decentralization law has been
promulgated.
3. The denazification program is
incomplete.
Mr.. Nixon told the Senators that
"Our drive to divest Germany Of its
external wealth has begged down
and is profoundly jeopardized."
THE United States State Depart
ment, together with the British and
French Foreign Offices" he asserted,
have maneuvered to split the quad
ripartite German external property
commission into eastern and west
ern uits' and are proceeding to crys-
tallize this split among the four
powers in regard to the external as
sets problem.
No Law on Subject.
"This unwarranted action, in my
Judgment, stems from the concern
on the part of certain influential
and apparently dominating influ-
ences in these Offices to avoid hav-
ing the Soviet Union involved
in the external assets question in
countries such as Spain, Portugal,
Switzerland, Sweden and Argen-
tina"
Mr.. Nixon said that after months
of negotiation and discussion, there
still is no law which would diffuse
the gigantic concentrations of eco
nomic power in Germany, curb
their activities or prohibit their
multiplication"
He also declared there is no evi-
dence that a real effort is being
made to carry out the objective OF
denazification.
"At every level of military govern
ment and from one end of the zone
to the other" he said, I'VE en-
countered the arguments of expedi-
ency and convenience, the necessity
Of keeping things running the
dangers of 'angering' the Germans
and creating a dissatisfied bloc
which would be ripe for Communism
the resentment of lower .headquar-
tiers against interference from
higher headquarters, the fantastic
COMPARISON of Nazi politics with
Democratic-Republican rivalry in
the U. S. A.
Responsible officers have cried
out against the injustice of remov-
ing a Nazi without a hearing de-
spite the fact that such hearings
were expressly prohibited. They
have argued that vigorous denazi-
fication lowers our prestige-I as
sumo with the Nazis-as compared
to the British who are reportedly
not no vigorous"
MI. Nixon said that when he left
Germany, plans were under way
for the wholesale release of security
suspects, adding:
The main reason given for re-
lease is, the jails are too full. Let's
get 'em of our hands and back
into productive employment
British Repayments Explained.
Thomas B. McCabe, foreign liqui-
dation commissioner, came back to
the committee to dispute a previous
report that the United States would
get only 10 per cent repayment on
lease-lend and surplus goods in the
hands of the British.
Mr.. McCabe said it never had been
intended to sell lease-lend supplies
to the British. He reminded that
the United States retained title and
the right to recapture unused sup
plies, although it had agreed in the
beginning that the recapture right
would not be used generally.
Having arrived at that decision
on principle, 1t is obvious that the
value Of military goods in the hands
of the United Kingdom armed forces
could not be taken into account in
fixing the settlement figure" he
declared.
He said the amount of Iease-lend
goods for which the British settled
for $472,000, 900 represented $780,
100000 in unused surplus and civil
ian lease-lend supplies, Al per cent
return in this category. Sales of
other surplus goods, he said, brought
the total return to so per cent Of the
cost to the United States.
Labor
Continued From First Page.)