The Archive · 1934

Washington, Sept! 14

Far East Disclosures

Further startling disclosures regarding. the operations of American frunitions makers inthe Far' East were made to-day by the special Senate committee which is. investigating the. world-wide activities of {fle so-called. "Blood Brotherhood"

"The committee to-day produced evidence to show. that Mr. Montague Smith, the Shanghai agent for" the. I, Clu Pont de, Nemours Company, had suggested to 4 fice thet representations be made {fo the Department of State and the British Foreign Oflee seeking the Femoval of the British restrictions on qhe shipment of explosives SGuring the hostilities bel king and Centon. in. 1998."

Gniy bare details of this communication were made public by the committee and. no further elucidation of the "hostilities between Nanking and Canton in. 1982" was given, although Some believed. the committes might have. been referring. to" the Fukien rebellion last year. I Mr. Lamont Clu Pont, one of the brothers who control the vast Duy Pont interests, "was cross-examined by the commutes regarding. previous testimony that his company' Had paid Squeeze" to. high Chinese military ofoers In 1982 in. order to complete a'huge munitions deal Mrs Clu Pont admitted that these "commissions"" had passed into. the hands of the military. leaders it" was, an' unusual. procedure: not in accord with company polite Alleged Trade for Grain Senator Gerald P. Nye, chairman of) the. Investigating committe, Moged that China had. used a large Share "of the 1033 "Reconstruction Finance Corporation "loan to buy drain from the United States, which ya later traded with other countries for "arms and munitions for Chinese troops, engaged in hostilities against Again senator Nye did not reveal where there "hostilities" between Chinese "ana Japanese troops last Year were supposed to have occurred.

made public no further details about the accusation but. it was {indetatood that his evidence showed Tost of such grain was traded with

Nye that the Clu Pont company bad by Senator sought permission from the Depart-of State in 1932 to sell the!

eret process for the manufacture of hydrogen to the Mitsui interests of Japan, was substantiated by Mr, Lamont Clu Pont himself Mr. Clu Pont said the deal, if consummated, would have been'a high-important transaction for the company. He told the committee, however, that the process would not enable Japan to produce more ammonia, nitric acid, or munitions than could be manufactured without She process, but would only enable the Mitsuls to produce the stuff at a much cheaper cost.

The committee curtailed certain other startling disclosures due to the heated protest_of Mr. Cordell Hull, Secretary of State, and Mr. Daniel Roper, Secretary of Commerce, against the wide scope of the in-

Several foreign governments have filed formal protests with the State Department since the investigation started. Mr. Roper declared that American business would suffer severely as a result of the disclosures of private negotiations in such a manner.—United Press,

Text read from the printed page and cleaned; old type leaves the occasional error.

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