Evening star., 1949-08-20
lang 10 Act 10 Curb
BLACK Market Traffic
lin Gifts Sent Germans
By the Assoeioted Press

BY the Assoeioted Press
FRANKFURT, Germany. Aug
20.-New Regulations governing
the shipment of gift parcels to
Germany probably will be an
nounced next week in an effort to
halt the fiow of black market
goods. American Military Govern
ment officials said yesterday.
They said the new regulations
will be part of a drive to kill an
illegal racket in gift shipments
from the United States to Ger
many. involving:
/. investigations by customs Of
ficials of what they call diversion
of gift parcels to the black market
2. Provisions for closing legis-
lative loopholes which have per-
mited some of the groups par
ticipating in the illegal traffic to
operate.
Military government officials
said the drive will be directed
against hundreds of phony charit-
able groups which have sprung ur
in Germany since the war.
Groups Licenses Cancelled.
The officials emphasized such
well-known agencies as the Amer
lean Red Cross, the British Red
Cross, and the Council Of Relief
Agencies are, licensed to operate
in Germany and are not involved
in illegal racketS.
Five Germans have been ar
rested in the cleanup drive, the
officials said. They will be charged
soon with violating German GUS
toms laws by selling duty-free
goods imported as gift parcels on
the black market.
August IL the Anglo o-American
Joint Export-Import Agency an
nounced it had Cancelled "an out
standing licenses and contracts in
the name of the Overseas Mail
Order Service (OMOS)."
The announcement said:
Acting on information received
from a United States customs
group concerning violations OF
regulations governing duty-free
gift shipments under JEIA In
struction No. Is, the JEIA main
office in Frankfurt has now or
dered the immediate cancellation
of all outstanding licenses and
contracts in the name of Overseas
Mail Order Service (OMOS).
No Charges Made, Firm Says.
AT the same time, all JEIA
branch Offices have been requested
to issue no further license OR con-
tract to OMOS or its successor
corporations without reference to
the JEIA head Office"
Last night Paul Hirsch. execu-
tive vice president of Overseas
Mail Order Service. Inc, of New
York, said in a statement:
mo specific allegations or
charges of violations have been
presented to OMOS officials here
or attributed to them. Imme-
diately upon hearing of the can
collation. of the only JE1A license
in force for OMOS. we immedi-
ately vent to the JEIA Office in
Stuttgart, where the license was
issued, to ascertain the reason
therefor, and the issuing Office
could give no reasons because
their orders to cancel the license
were accompanied by no reasons,
so they said.
AFTER that we came to the GUS
toms group in Frankfurt and have
discussed this matter and all
phases Of our operations and
activities with officials
of the customs group. Up to this
minute no direct allegations or
charges have been made against
OMOS and no reasons for the
cancellation of the license involv-
ing violations by OMOS have been
related to us.
Parcels Packed In Reich.
"Any charges or insinuations
that Overseas Mail Order Service
has been shipping contraband
merchandise such as drugs, money
fabrics, nylon stockings, ETC., in
gift packages to Germany are un-
true.
THE truth of the matter is that
Overseas Mail Order Service has
not shipped gift packages to Ger
many for about two years. This
company has had stock Of mer-
chandise in Germany since the
middle of 1947 from which gift
parcels have been packed. accord
ing to the selection of benef1-
Charles.
This stock of merchandise has
come into Germany legally, in
bulk shipments, and has at al,
times been under the control and
supervision of the proper authori-
ties"
Mr.. Hirsch said OMOS does not
sell any goods inside Germany
The goods are distributed, he said,
in gift parcels. sent to Germans
from stocks in Germany through
its distribution representative. q
large charitable organization in
this country.