Pit q-:#1,- '.5z;

TEE REPLY OF NICOLAE MALAXATO THE REPORT OF THE CIAWRIOITAS.SENT TO THE FBI ONMAY 11, 1948 AND WHICH WASMADE PUBLIC IN COURT ON THEOCCASION Cr" THE COPION TRIAL

All of the statements in this report are false and aflagrant distortion of the truth and is based on unconditionalacceptance by the Intelligence Agency, without having Checkedand double-checked and without having documentary evidence whateverfor verification, of information deliberately planted with theIntelligence Agency by personal and business enemies of Nalaxa,who, taking cowardly advantage of the immunity offered informers,make irresponsible statements in a compaign instituted to defameand blacken his name.

ALLEGATIONS BY CIA

2. Malaxa began his career inRumania, following graduationfrom the School for Civil Eng-ineers In Bucharest,

by opening a small workshop forrepairing railroad cars.

By means of bribery of railroadofficials he was able to buildup a sizeable fortune,

.after which he undertook themanufacture of arms and •amunition.

ExLASl F 0 N - ,1? EL EASED .131.Y• CENTI ' Al. I:N . TEL 16E A6 ENYS . 0..0 'RISS METHODS E P.4 115 .T1.0 P43,412 B.NA21 WAR E :R ikES DI SCLOSUREIET.

CATE 2004 2006.

Malaxa pursued his studiestoward his engineer's degree in

-Germany (Boole Polytechnique ofKarlsruhe) and NOT in Bucharest.

He laid the foundation of hisbusiness by the repair oflocomotives and NOT of freight cars.

In 1927, public competition wasauthorized12z la lovand instituted •for the erection in Rumania of two .locomotive plants and three carfounderies. This competition wasopen not only to Rumanian indus-trialists .but foreign industrial-ists were also invited to submitbids. Malata was adjudged the •winner in this competition andwas awarded a twenty year contractfor the manufacture of locomotives.Therefore, his business andfortune was founded, not on bribery 0.

as alleged, but in competition forgovernment contracts open notonly to Rumanians but to foreigners:as well. '

In the period immediately preced-ing the Second World War ) all OfAurope proceeded to rearm.Rumania was compelled, to do the •same thing. Malaxa recognized asthe leading industrialist and thecreator of a metalUrgical industryin Rumania was solicited by theRumanian Government to give" his: •assistance in the realization•.of a .'rearmament program as enViSalby the .exigencies of,ithe;.tMaltaxs.. accepted amd- proposed ththe .0.eaticill.,̀ -cif the variou'splar

Page 2.

In 1933 he began a campaign againstthe import of war materials intoRumania, demanding the cancellationof contracts that had been enteredinto with the Skoda plant inCzechoslovakia.

be confided to Rumanian industrial-ists, other than Malaxa, for themanufacture of those defense pro-ducts which they felt they couldproduce. Malaxa himself took theresponsibility of producing thehighly technical and difficultproducts of this program whichothers refused.

The Skoda works of Czechoslovakiahad a representative in Rumaniawhose name was Seletzki. Uponsearching Seletzkl's home, documents'were found Which irrefutably Drovedthat Skoda, by means of bribery,had procured contracts for armamentwhich contracts rightfully shouldhave been given to the Britisharmament firm of Vickers, whichfirm was operating a plant inRumania in conjunction with the .Rumanian Government. Seletzkiwas tried and condemned to prison.As one of the results, the Rumanianpress carried a series of articlesexposing the scandal and corrup-tion, the sordid tale of 7hichbecame known throughout Europe.

Malaxa . demanded that in theinterest of national defense, •Rumanian industry should be giventhe opportunity to Drovide at leastpart of the needs'wf Rumanian arma-ment which had traditionally beendependent almost entirely onforeign. sources. He pointed outthat a continuation of Rumaniatsdependence on foreign sources forits armament placed in jeopardythe national defense..

At this time he utilized the servicesof Puiu Dumitrescu, then privatesecretary to King Carol, Throughbribery of Dumitrescu he was able toestablish relations with Carol PndMadame Elena Lupescu. .After the dis-missal of Dumitrescu, Malaxa establish-ed similar relations with his successorErnest Urdarianu. During the period1933-1940, Malan used his influencein Palace circles: to secure theappointment of his own men to suchoffices as Manager of the State •Railroads and Minister of CUmmunica-tions.

King Carol, taking into considera-tion the role of Malaxa in theeconomic life of Rumania accorded..him the attention which was due hire.Malaxa was consulted from time totime on industrial questions.There was never at any time any-, thing unusual in Malaxa t s relationwith the aides of King Carol -Dumitrescu and Urdarianu. Themetalurgical industries as created •by Malaxa during the reign ofKing Ferdinand were flourishingeven before Xing Carol succeeded'

• King Michael to the throne of' "-..Rumania. MalaXa received:no.

•

Page 3.

favors from the King as regardshis industrial activities. Be hadtherefore no need of the supportof the collaborators of the King.King Carol and the cou zec,e4the activity and the 04)of the metalurgical works createdby Malaxa.

If one is truly interested in findiiout Who was interested in obtalping !the good graces of Xing Carol and jMadame Helene Lupescu, let himexamine a deposition from the Ausntb-Herascu trial in the courts of New

York, copies of which are attachedto this document. Berascu wasthe proprietor of an estate inBucharest which he sold to MaxAusnit for twenty thousand poundssterling or eighty thousand dollars 1

if. gift to Madame Helen Lupescu.L400and which Ausnit presented as

Ansnit had to resort to thesemethods to cover up fraudscommitted by him as administratorof the Resita Company, the largeststeel mills in Rumania, and ofwhich Xing Carol was one of theprincipal stockholders. It was forthis consideration that Auanittried to embroil Urdarianu byproposing Urdarianul s name aschairman of the board of Resitahoping that in this way he wouldbe shielded from retribution for.his frauds. Urdarianu, however,refused to lend himself to thisplan and brought Ausnit to thecourts of justice which condemnedAusnit to six years in jail plusthe payment of the equivalent oftwo million dollars to be restitu-.ted to Resita. The charges uponwhich he was condemned were basedon financial fraud committed intime of peace in the years running f

from 1930 to 1939. The courtdecision was registered in 1940,before Antonescu came into power •or before September 6, 1940.

It was not political persecutionthat put Ausnit in jail butfraudulent misuse of funds.

When AntonesoU with his Nazigovernment came into power,Ausnit offered them fifty-one(51%) percent of his factories .in Rumania to review this judgment. iStrong prassure was exercised. -by the Antonescu government on the 1courts to review the case but in i

•

Page 4,

3. During 1937 Nhlaxa began hiscollaboration with the Naziregime in Germany. He establishad close relations with Germanindustrialists, including AlberGoering, the brother of HermanGoering.

spite of this pressure the courtsagain condemned Ausnit. Heappealed the new sentence anddecision on this appeal was post-poned until November, 1944 whenthrough his intimate friend,Patrascanu (the leading Communistin the coalition government whichsucceeded Antonescu) who wasMinister of Justice, he wasacquitted.

The . alleged collaboration of -"!--Malaxa with the Nazi regime and -his relations with German indus-trialists in its final analysisturns out to be the usual relation-ship between supplier and buyer,that is to say, procurement ofmachines and installations forhis factories in Rumania. Longbefore the Nazi t s dreams wererealized, as far back as 1927,Malaxa bought his machinery inGermany, the reasons being finan-cial as Ruman/a did not have allthe foreign exchange which itneeded to buy in other countries.

Wien the Nazib occupied -Czechoslovakia and obtained possess-ion orthe company and factoriesgrouped under the name ZBROJOVKA,they came into possession also oftwo blocks of shares of Resita •which Vickers and the Cepi Companyof Monaco belonging to Mr. Ausnit,had previously sold to Zbrojovka.As a result of their holding thisstock, the Germans, through AlbertGoeringiin 1940, demanded thatthey be given places on the Boardof Directors of Resita. At thistime, Mr. Malaxa was a managingdirector of the company. It wasir,this manner that Malaya madethe acquaintance of Albert Goering..

In 1941, Malaxa had been removedby the Antonescu Nazi governmentfrom his associatioamith Resitaand Mtrcea0juvara was namedChairman of the Board of Resita inspite of the fact that MirceaDjuvara had been the personalattorney of Ausnit and had defendedAnsnit in Resita r s trial against:him and which resulted in hisbeing condemned to six years in.jail for fraud. After the trialand after the appeal from thesentence had been lost, Djuveracontinued to look after. Aushitt.s,..interests. The/I:ensued-the:close t

At about the same time subjectbegan to subsidize the RumanianIron Guard, a Feacist organiza-tion. Following-the abdicationof Carol in September, 1940,Malaxa established still closerrelations with the Guard,. whichhad enteredfthe government ofGeneral Ion Antonescu. When theGuard unsuccessfully rebelled .against Antonescu in January,1941, it was discovered thatMalaxa had procured 'arms from

Page 5.

collaboration between Djuvara andAlbert Goering in all questionsconcerning Resita and from there

(c%C) 8-tagnras4e74440.0021aititgesetwo*N.40F.on all questions pertaining toRumanian industry. All thishappened at the same time that byRumanian Nazi government decreeall property belonging to the Jewswas confiscated and the Sewsdeported to Russia. Max Ausnit,through Albert Goering, succeededin keeping intact his fortune,the Germans-' taking nothing offactories nor was he deported terRussia. During the German domina-tion of Rumania, Melaxa, althoughnon-Jew, was placed in prison

and his factories were taken byforce and exploited by the Germans:In the meantime, Ausnit, althougha Jew, was permitted to leaveprison to enter a:nursing homethan to his own home and finallyfreed. His factories were nottouched by the Germans.

Malaxa gave Albert Goering an inter- This statement is completelyest in all his companies, including false. Not a single Share of thethe Rasita Iron and Steel Works Malaxa companies nor that of any

companies belonging to Nalaxa fromthe moment of their creation-tothe present, vas ever given toanyone, least of' all to AlbertGoering. The shares of the Malaxacompanies are here in the UnitedStates and are available for in-spection at any time. As far asResita share's are concerned, ithas already;been explained how theGermans obtained possession of .these shares and how in the finalanalysis, It was Ausnit's trans-

. actions with the Czechs that •resulted in those shares. falling .Into the hands Of the Germans.

(7.PhotosteS:s of official documents

I from thelMiniatry of .the Interior',herewith r annexed, and signed--by 1General Aided (todayoondemned to .ilife imprisonment by the Communists)!

. and also from the .Attorney GeneralPala, prove the. centrary. Inother words, Vaiaxa never partici-pated in any shape or manner inthe Iron. Guard movement and neverat any time financedp.(SEE.ANAirsgs .1,-,/.5„.4.4.44The truth, is the following:

MoVftftei ,v.

Page 6.

them; the Guard had so stronglyfortified his residence that anattillery bombardment wasr'pired to reduce it. Followingte collapse of the rebellionsubject was arrested; he wasimprisoned for a short period andhis factories were confiscated.

The Germans wanted at all coststo put their hands on the MalaxaWorks in order to destroy theircompetition in Rumania.

Having failed to persuade Mr.Malaxa to collaborate with them,they put strong pressure on theAntonescu government to turn theMalaxa Works over to them the

OtY 1414irr egP).°+VA°412,r111But the Ralaxa Works did not belongto the government. GeneralAntonescu needed a pretext to ganpossession of these Works. Itwas therefore necessary to arrest .Malaxa in order that, under pressurehe would cede his Works. Thismoment was found in the confusionattending the rebellion of theIron Guard. On the fallaciouspretext that Mr. Malaxalsactivities had been prejudicialto the state, he was arrested.But even in prison he resisted andrefused to cede . his Works to theGermans. Several days later, bya decree signed by Antonescu, theMalaxa 'Works were confiscated.

While Mr. Malaxa was under arrest,the :Rumanian 'Government concludedan agreementwith the HermanGoering Werke, a German companybelonging to theGerman Government, !whereby the Malaxa Works would be •exploited by a joint company knownas ROGIFER, of which half belonged -to the Rumanian Government andhalf to 'the German company.

Mr. Malaxa Was kept in prison andin houSe arrest altogether aroundten Months and he was only freedon the same day on which the lastact accompanying the cession ofhis Works was accomplished.

.Tire: coincidence of these dates -the beginning which marked bothhis arras-tend the conclusion ofthe agreement between the RumpflianGovernment and the Germans,' andthe lastidate which marked bothhis release from arrest and thelast formLOity turning the MalaxaWorks over to the jointRumanian-.German company, shows in a,mosteloquent manner the flimsy pretextused to arre'st' Mr. Malaxa., • '

•

Page 7.

Furthermore, Antonescu named themembers of three commissions ofinquiry to examine the accusationsagainst Mr. Malaxa.

One of these accusations, the oneconcerning the alleged collabora-tion of Malaxa with the Iron Guard,was looked into by a Commissionheaded by General Aldea (todaycondemned to life imprisonment bythe Communists). This Commission,as we have noted, establisheddefinitely that Mt. Malaxa nevel.Lparticipated in any manner, shapeop form in tha Iron Guard movement.'

u . csS .hrigA Arvel7-1As regards Mr. Malaxa's home, thiswas occupied by the rebels alongwith other houses surrounding this !one. They occupied his home butone night. How is it possible forany house in the space of a singlenight to be so fortified that itscapitulation necessitated anartillery bombardment? Furthermore,1the house is still standinkat thisday without a single mark on it ascan be affirmed by anyone goingout to look at it. This statementin the report makes no sense at all.

As the rebels were found to haveentered Mr. Malaxa's house byforce, a courtmarital in Bucarest!condemned them to three years inprison for entry by force. Thisis another proof that his housewas not placed at the dispositionof the rebels by its proprietorbut to the Contrary was seized by .force proving againthat the allege&relations of Mr. Malaxa with theIron Guard were absolutely non-

O.1? existent. tSrE ANAlela "

It is to be noted that his arrestand the subsequent confiscation.of,his Works were not based on charges.'that he had collaborated with theIron Guard, but that he had harmedthe interests of the governmentthrough the activities of his Works.These charges were investigated byanother commission, consisting ofthree members of the Supreme. Courtand three generals of the:Arty.This commission, after studyingthe .evidence over a.A)eriod of twOyears, found that the accusationswere completely baseless and

eg Meothrs. mission

Malaxa was exOnerated.

brthi r.

iC.Sp's ANMEXE

. SOMM4101,4040.1~Mwow,41M1747,,,....,98,4.....to ,,i4,7•1

N\s_ Page 8.

By means of bribery he secured theassistance of Mihai Antoaescu, VicePremier and Foreign Minister,through whose good offices he wasfreed from house arrest. A few ofhis factories were returned andnegotiations for the restorationof others were nearly completedwhen the Antonescu regime wasoverthrown.

5. After the coup d i etat of 25August, 1944, Malaxa attemptedto leave Rumania, but was unableto secure a passport. Within ashort time however, he hadestablished good relations withthe Rumanian Communists and theSoviet authorities. He securedthe return of three of his fac-tories not previously returnedby the Antonescu regime, and wasgiven in addition compensationamounting to approximately a halfa million dollars for the profitswhich he could have made duringthe preceding three years hadthese factories been under hiscontrol. It has been reportedthat this indemnity was dividedwith the Rumanian Communist Party.

Malaxa at no time ever gave any-thing to Mihai Antonescu. Onebribes a person to obtain somefavor or other but not to get whatlegally belongs to him. GeneralAntonescu committed a breach ofproperty rights in confiscatingthe Malaxa Works. If Antonescuhad made restitution of thisproperty, he only would have givenback to Malaxa what belonged to him.Why then, would Malaxa have had toresort to bribery?

However, none of the factories,.was actually restored to Malaxa.When the German forces began toexperience serious reverses,because of the imminent day ofreckoning facing Antonescu, thelatter annulled the act of confis-cation and returned the ownershipback to Malaxa but not the actualact of possession which continuedto remain in the hands of theGovernment. •

None of the factories was actually •given back to Malaxa by Antonescu.The act restituting the threefactories belonging to the MalaxaWorks was initiated by the coali-tion government of General Radescu.This was confirmed in an interview -

(by General Radescu to the FBI onMay 5, 1948 and made public at a'.hearing during the Coplon trial.This was in line with the policyof the Rumanian Government restor-ing all property illegally confis-cated by the Antonescu and Naziregimes to their rightful owners.He was never reimbursed by theGovernment for half million dollars:worth of damages suffered:by hisfactories during the period hisplants were in the hands of theAntonescu and German regimes.Not even one dollar was ever, paidback to him for damages. Thereforel!there was nothing that could havebeen divided with the Communists.

Page 9.

The Soviet authorities claimed asreparations a large pipe millowned by Malaxa. The Communist-dominated Groza Government thereupongave the subject an indemnity of$2,400,000 which it is reliablyreported he also shared with theRumanian Communist Party. Sincethe Rumanian Government was unableto pay this in dollars, Malaxa waspermitted to exchange into dollarsthe payment received in lei byselling the Rumanian currency toAmericans and by exports. He real-ized two million dollars throughsale of lei to the Joint ReliefCommittee of New York and $400,000through exports.

6. According to a reliable source,Malaxa was characterized by Col.Finogenov, Chief of the SovietEconomic Mission in Rumania, asa man who was prepared to sellRumania to the USSR if he couldprofit from the transaction. Forthis reason, Col. Finogenov isreported to have said, Malaxawas to receive the support ofRumanian Communists.

9t.

(See Annex marked "A"). Thedeclaration that Ilalaxa dividedanything et all with the Commun-ists is completely without anyfoundation whatever and is false.

When they penetrated Rumania in1944, the Russians proposed to

Malaxa that Malaxa sell hisplants to them in exchange fordollars to be paid him in Switzer-land. This offer was laterreiterated by Colonel Finogenov.Malaxa refused in spite of thedangers of such a refusal:Confiscation and deportation.Ausnit, instead, offered of his own'volition to turn over to theRussians legal rights to Rumanianindustrial property. As a resultof the armistice agreement betweenthe Russians and Rumanians, Resitahad to return to the Russianscertain material taken from theRussians when Rumanian troupesoccupied parts of Russian'territory.In place or the material demanded,Ausnit proposed to give andactually did give to the Russians'ithirty (30%) percent of the sharesof Resita, giving them a legalfoothold on a property which wasthe largest and most importantsteel works in Rumania and upon'which the entire industry ofRumania depended. CSCEAthvgle Ze)

Using Ausnit's plan as anexample, the Russians demanded andcreated the so-called Rumanian-Russian companies known asSOVROM by the use of which compan-ies the Russians became the co;-proprietors with the Rumnniansof Rumanian property. Spreadingto other satellite countries, theoperation made in connection withResita and initiated by Ausnit,enabled the Russians to put their.,hands on the economy of'Centra4

L.

Page 10.

and Eastern Europe. In acknow-ledgement of his services, none ofAusnit l s property was touchedby the Russians in spite of thefact that in the same periodEnglish end American property inRumania was confiscated eventhough the English and Americansat that time were their allies.It is easy to understand that thedeclaration attributed toColonel Finogenov is pure invention.For it is Ausnit if anyone, 'Aro,gave to the Russians interests —

(194)belong1ng to Now Rumania. 'Mereit is to be noted that neither theRussians nor the Germans evertook anything belonging to Ausnit.-

Malaxa a'ssisted the then Ministerof Rumania to the United Statesin the floating of the wheat loan,as well as did Mr. Ausnit.(See Annex marked "B").

.11

7. Following his arrival in theUnited States in October, 1946,subject has worked closely withMihail Ralea, Rumanian Ministerto Washington. They have succeed-ed in securing a commercial loanof $13,000,000. Malaxa has alsobeen successful in unblockinghis large bank accounts in NewYork.

8. It is reliably reported that allofficials in the Rumanian Lega-tion in Washington who can servehis purposes are in Malaxa's pay.

This declaration is completelyfalse, like all the others. Mr.Malaxa does not give any money tothe Rumanian Legation in Washington'or to any of its members. In thepast he has advanced money in thefollowing instances and for the -following reasons indicated below:

(1) At the beginning of 1947, 0

when the loan for the purchase ofgrain was made, the Legation was in r

urgent need of $10,000 to be givenas a retainer fee to the law firmof Pehle and Lesser of Washington.Having no dollars available, itturned to Mr. Malaxa requesting ofhim a loan of $10,000 to be reimbur-sed at a later date. Under the fthen existing conditions he couldnot refuse this request. This sumhas not as yet been reimbursed. andMr. Malaxa will be obliged to filesuit.

and those refusing to cooperate arethreatened with recall or otherwiseintimidated. Remus Lula, Commercial,Attache, a nephew of Prime MinisterCroza, is reported to have beenthreatened with dismissal at subjecttsinstigation because he sent toRumania quotations for oil wellequipment without having notifiedMelaxa, who had already sent inflatedquotations to Bucharest.

Page 11.

(2) In August, 1947, Mt.Malaxa had signed an agreementwith INTERNATIONAL BARVESTER forindustrial cooperation. Thiscontract had been approved by theState Department and had to beapproved by the Rumanian Governmentalso. This contract was ofextreme importance for Mr. Malaxabecause:

(a) It contained a clansewhereby the Rumanian Gpvern;ament, in approving this con-tract, undertook not tonationalize his plants forten years.

(b) It granted toINTERNATIONAL HARVESTERthe right to acquire ablock of shares in theMalaxa plants and, there-fore, as a consequenbe,to reinforce United Stateseconomic penetration intoRumanian industry.

As was only natural, Mr. Malaxawished to obtain Rumanian approvalas soon as possible. The Legationagreed to send this contract bycourier to Bucharest, Mr. Malaxato bear the cost of the trip.Mr. Mslaxa remitted $1,500 towardthis end. The courier wasMr. Lazareanu.

The Rumanian Government refusedapproval.

(3) In 1947, during hisjourney to Rumania, Mr. P. .

Riposanu sold an automobile to -the Malaxa plants. At the requestof the plant managers, Mr. Malaxa'paid to .Mr. Riposanu, in Washington,ithe price of $1,825.

As far as having threatened to haveRemus Lula recalled as 'ComMerciaiAttache at the Rumanian Legation • .'in Mashingtor4 thi'would,haVea childish gesture on the parts ofMr. Malaxa. . After all, Mr. Lula. .•is the nephew of the Rumanian.Prime Minister, Mr. Graze:, andGroza,. who had , the power to tt4M13.,his own neph'ew-as.CtmmerciaI'Attache atWashingtoncertainlY..

. .

Page 12.

could have the same power toprotect him from any threats.It is quite probable that Lulasought to transact some businessin which there was a possibilityof personal profit for him. It isrumored that in fulfilling amission to buy $200,000 worth ofseeds for vegetables by theLegation to be sent back toRumania, Nri Lula succeeded inrealizing a certain profit fort.himself. The huge purchases of-wheat which followed were notentrusted to Lule,who, havingalready tasted of the headyfountain of profits, was naturallydispleased as for that matterwas his close associate, Mr. Ausnit..Lula used his influence in thegranting of a petroleum equipmentorder to a Swiss Company in whichit is reliably reported that .Ausnit was interested. This inspite of the fact that the bid ofthe Bethlehem Steel Corporation forthe same equipment as proposed byMalaxa, was lower.

9. In late 1947, sUbject was infor-med through his' own channelsthat his enterprises in Rumaniamight be taken over by theGovernment. He was in communica-tion with Ralea, who had.gone toRumania in January, 1948 ., and whohad promised to look into thesituation. Ralea cabled subjectthat the situation was seriousand advised him to return to.Bucharest. Instead, Malaxa gothis wife and son out of Rumania(his daughter and .son-in-la,Dr. Gheorghe Pallade, are ipresently in the United States). .

It is not exact that Ralea hadcabled Malaxa in 1948 that hisfactories were in danger unless hereturned immediately to Rumania.

; The Rumanian. Government had con-sistently refused approval of all

• offers proposed by Malaxa, namely:A contract concluded by Malaxawith International Harvester Company.which had been approved by theState Department; an offer throughMalaxa by the Bethlehem SteelCorporation for petroleum,equipmentva refusal to permit the exportationof tubing from Rumania even thoughthe Government was obligated pre-viously by a decision of theCouncil of Ministers to approveexport permits, although they did'give approval to Ausnit to exportsteel sheets made in his ownplants from Rumania. The Govern-ment attacked through the pressMalaxa and his family, in the mosttrivial manner. Finally, at therisk of their lives his wife andson had to flee Rumania.;;;

Page 13.

Some time later, his factorieswere nationalized and he wasdeprived of any right to be reim-bursed because he remained in theUnited States. His closestassociates were condemned to prisonon the flimsiest pretexts beforekangaroo courts. Two of hisassociates were able to escape,from the country - the rest are,still in jail. By the Decree#1666 of September 30, 1948,Valaxa and his son were shorn ofRumanian citizenship and whatremained of his possessions afterhis plants were seized, was alsoconfiscated.

-In this way, Malaxa was three timesa victim of the World Mar II.

The NAZIS Put him in prison and 1confiscated his factories to exploitthem for the duration of the warthrough the Hermann Goering Werkeand the Rumanian Government.

The RUSSIANS seized one of histube mills for reparations by-force and he was not reimbursedby the Rumanian Government untiltwo years afterward and then inRumanian lei and not in foreignexChange as has been alleged. Itis to be noted that all otherswhose property was turned over tothe Russians for which Rumania wascredited on the account of repara-tions as stipulated in the armistice!agreement, (Article 11) were allreimbursed in lei. 1

1

The COMNDEISTS of Rumania, becaudeof his refusal to return toRumania:-

Confiscated his fortuneDeprived him of his citizen-

shipThrew his associates into

prisonForced his wife and son to

• escape secretly by nightin order to save their

• lives. lir+)(SEE ,ac.imEx5

10. Malaxa has established in NewYork a firm known as TheRumanian-American EconomicCorporation. Among the membersof its Board of Directors areViorel Tilea, former RumanianMinister to London, andGrigore Gapencu, formerPoreign Minister. Brutus Caste,

Cg) a formNapnian diplomat and aclose Of General NicoleeRadescu, receives $250 a monthfrom this corporation, allegedlyfor preparing reports on con-ditions in Rumania.

Page 14.

The State Department was keptinformed of all steps leading tothe formation of the Rumanian-American Economic Corporation.Neither Viorel Tilea nor GrigoreGafenco are actually, nor havethey been at any time, members ofthe Board of Directors or officersof this firm. And neither hasBrutus Caste ever received nordoes he actually receive 32507',per month from the Rumanian- -American Economic Corporation.

11. Melexa is presently financing

CanGeneral Radeseu, who is attempt-ing to organize his own resists-.ce movement. In turn, Rad2tans supported Malaxa's request

for an extension of his U, IS.vita. Adherents of RadescUi-notably Costa, are spreadingthe story that the CentralIntelligence Agency has inter-vened with the State Departmentto secure an extension ofMalaxa's visa, in return forwhich Malaxa will furnishRadescu $1,000,000 to financea resistance movement. Thisversion was given by Caste whenleaving a social affair in thehome of Lt. 'Col. David ScottCrist, U. S. Army, 2501 QuaStreet N.W., Washington, D.C.on April 26 or 27.

(Pe)(See Annex Iv exposing politicalbeliefs of Nicolae Melaxa)

It is not true that Melaxa offeredto finance the Rumanian ResistanceMovement with a million dollars inexchange for a vise permitting himto remain in the United States.If Mr. Costa made any such declara-tion, it is completely devoid ofany foundation of fact. Any money

(which Mr. Malaxa has given toi General Radescu was destined for

philanthropic work and to aid\Rumanian exiles in distress andhad nothing to do with the contin-ued residence of Mr. Malaxa in theUnited States.