A BLOW AT ESPIONAGE

Otago Daily Times, Issue 24636, 18 June 1941, Page 4

A BLOW AT ESPIONAGE

Next to the passage of the Lease and Lend Act,. the decision of the United States Administration to " freeze" all German and Italian assets, and the order closing all German consulates and other Nazi agencies, represents perhaps the most severe blow that has been dealt at Nazi-ism in its attempt to prevent the American democracy from functioning as an ally of Great Britain in the war against totalitarianism. During the Great War, up to the time of 'American entry into the conflict, and to some extent thereafter, the United States offered the happy hunting ground of spies and saboteurs employed by Germany and the other Central Powers. The material damage for which these enemy agents were responsible amounted to millions of dollars, and, in addition, an incalculable cost in life and money was caused indirectly through the fomenting of strikes in industry and on the docks, the transmission to Germany of advice regarding Allied shipping movements, and the dissemination of propaganda hostile to the Allied cause. The exploits of such superspies as von Rintelen and the sinister

von Papen are notorious. America !up to the present time in the present - war has been harbouring men of a like proficiency in directing activities inimical to the British cause and, by obvious inference, to the American cause as well. As much was admitted when last year the Secretary of State took steps to expel two prominent Germans with official standing, the Nazi Trade Counsellor, Westrick, and his New York assistant. Last October the New York Post publicly denounced .the German vice-Consul in New York, Friedhelm Drager, as the head of a vast Nazi propaganda and espionage machine. Under this agent, it was shown by documentary evidence, an organisation called the Foreign Division of the National Socialist Party was operating throughout the United States, its activities being directed from the German consulates. - The order which has now ' been issued puts a period upon the blatant use by the Nazis of consular offices as espionage centres. The closing of the consulates, supported by measures to deal with German nationals in the United States who come under suspicion, will clearly, put a curb on .Nazi espionage. But provided unlimited funds remained available to the there would remain a possibility that their activities might merely have been driven further underground. The "freezing" of United States assets of the European Axis partners assures that the ■financial resources which are essential in their nefarious work will be sadly curtailed. It is estimated that the president's order, issued under his unlimited emergency decree, will prevent access by Germany and Italy to funds amounting to nearly £1,000,000,000' domiciled in the United States. The obvious use for this huge sum, since the Axis is unable to trade with America at the present time, was I 'as a fighting fund —for fighting democracy. Germany is now deprived both of convenient centres for the operation of an espionage and sabotage organisation, and of the principal source of the financial support of this organisation. It would be too much to assume that no other funds are at the disposal of the Hun agents. One likely source comprises American bonds seized in the occupied countries and smuggled into the United States for sale. The effect, however, of the action that has •now been taken by the Administration must be to handicap very materially the Nazi efforts to undermine United States morale, to disrupt war production, and to use America as a spy-nest in the Battle of the Atlantic. The Axis threats of " reprisals" may be regarded by Americans with a certain indifference. United States assets in Hitler's Europe are estimated at upwards of 4,000,060,'000 dollars, mostly in 'the form of great industrial plants, but these are'already " frozen," or, more precisely,-, have been incorporated in ' the Continent-wide war industrial effort of the Nazis, and their owners are deriving no benefit from them.