000046_Axis Ties With Argentina - Foreign Policy Reports 2-1-46

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Axis Ties with Argentina - Foreign Policy Reports 2/1/46 http://www.maebrussell.com/Argentina/Axis Ties with Argentina.html Foreign Policy Reports February 1, 1946 PUBLISHED TWICE A MONTH BY THE Foreign Policy Association, Incorporated MIDSTON HOUSE, 22 EAST 38TH STREET, NEW YORK 16, N.Y. VOLUME XXI NUMBER 23 $.25 a copy $5.00 a year Page 308 Axis Ties with Argentina By O. K. D. RINGWOOD AND OLIVE HOLMES Although the war ended with Argentina nominally an Allied power,(1) there is abundant
  Foreign PolicyReports February 1, 1946 PUBLISHED TWICE A MONTH BY THE Foreign Policy Association, Incorporated MIDSTON HOUSE, 22 EAST 38TH STREET, NEW YORK 16, N.Y.VOLUME XXI NUMBER 23 $.25 a copy $5.00 a year  Page 308 Axis Ties with Argentina By O. K. D. RINGWOOD AND OLIVE HOLMES Although the war ended with Argentina nominally an Allied power, (1) there isabundant evidence that Axis interests in that country are not only relativelyunmolested but are closely leagued with Colonel Juan Domingo Perón andmembers of the military government in the rearmament drive and in a program toextend Argentine hegemony over the River Plate basin. Until Buenos Airesterminated diplomatic relations with Germany and Japan, on January 26, 1944,Axis penetration into South America had been channeled through the GermanEmbassy in that capital. (2) Its activities, according to a report issued in 1943 bythe Emergency Advisory Committee for Political Defense of the Continent,located in Montevideo, were responsible for the loss of millions of dollars' worthof United States ships and supplies, as well as of the lives of hundreds of passengers when their ships were torpedoed. (3) After the break, however, the great German enterprises in Argentina took overthe organization of financing of the Nazi movement. The amount of Germaninvestments in Argentina is large, its character is extremely diversified and hasnot apparently been appreciably altered as a result of World War II. (4) Germaninvestments are located in the electric, metallurgical, steel and chemicalindustries, in the construction industry—both civilian and military—and insugar, cattle and other rural enterprises, and have been estimated to total 2,500million pesos (about $600 million). This figure does not include, however, recentclandestine accumulations of Nazi fugitive capital. When it became clear thatGermany would lose the war, a safe haven program was devised for thesecretion of German economic assets in neutral countries where control could beretained through various dummy arrangements. In this fashion, it is believedthat German capital and loot from occupied countries, and even experts andtechnicians, under assumed Spanish or Argentine identity, have been transferredto Argentina.The Argentine government on April 3, 1945 announced that 150 Germansubsidiaries, with an aggregate value of $40 million, had been confiscated andthat government inspectors had been placed in control of these firms pendingtransfer to Argentine hands. Assistant Secretary of State Clayton stated before asubcommittee of the Senate Military Affairs Committee on June 25, 1945,however, that not one of 108 major Axis enterprises suspected by the Allies of  xis Ties with Argentina - Foreign Policy Reports 2/1/46http://www.maebrussell.com/Argentina/Axis Ties with Argentina.html1 sur 224/08/2013 11:49  being the spearheads of German economic penetration and espionage had beeneliminated. (5) It is the contention of the United States that nothing less thencomplete liquidation of those Axis interests which figure on the United Statesand British black lists is adequate, and that at the time of the Clayton testimony—three months after Argentina had entered the war—only four of these spearheads were in the process of being eliminated. On November 30, 1945 of the directorate of the Enemy Properties Board, whose secretary charged ForeignMinister Juan Cooke with unwarranted interference with the committee's work,resigned in mass. (6) In addition, charges of complicity with Nazi espionage in Argentina have beenbrought against the police, the Ministry of War and the Foreign Ministry byArgentines as private citizens and in the press. In an article entitled NaziGermans are Well Protected, the Socialist Weekly  La Vanguardia linked thenames of Ludwig Freude, owner of the General Construction Company, FritzMandl, who possesses an interest in the IMPA arms corporation, and RicardoStaudt, with the Foreign Minister. (7) These individuals have not only been givenprotection from deportation in a variety of ways but have also been the recipientsof government contracts. In turn, they are alleged to have contributed large sumsto Perón's Presidential campaign.The United States has taken cognizance of the military government's diversionof critical materials to the Axis firms which received its contracts. (8) It has alsocalled pointed attention to the fashion in which certain Argentine newspapers,formerly subsidized by the German Embassy and now publishing freely undernew identities, are supporting the Perón candidacy. (9) The Farrell governmenthas not convincingly refuted these charges by either word or deed. 1. Argentina declared war on Japan and on Germany, in view of the character of the latter as anally of Japan, on March 27, 1945.2. Sax Bradford, The Battle for Buenos Aires (New York, Harcourt, Brace, 1943).3. First Annual Report of the Emergency Advisory Committee for Political Defense (Washington,Pan American Union, 1943).4. Luis Victor Sommi,  Los Capitales Alemanes en Argentina (Buenos Aires, Claridad, 1943). For adigest of this study, see German Capital in Argentina, The Economist  (London), September 22,1945, pp. 416-18.5.  New York Herald Tribune, June 26, 1945.6.  Ibid., December 5, 1945.7. Ibid. 8. State Department memorandum of July 26, 1944, Department of State,  Bulletin, July 30, 1944.9. On January 17, 1946 the U.S. Embassy in Buenos Aires released some of the documentsuncovered in Berlin proving Nazi connections with Argentine government officials and Nazicontrol over a part of the press. Home Axis Ties with Argentina - Foreign Policy Reports 2/1/46http://www.maebrussell.com/Argentina/Axis Ties with Argentina.html2 sur 224/08/2013 11:49
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