The Vanishing Chemicals

Many millions of dollars worth of U.S.-made strategic items slip behind the Iron Curtain each year. For some the Reds will pay three times the current U.S. price.

Early last year the West German firm of Peter Meyns bought sodium bichromate and potassium bichromate (used in tanning leather) and paraffin wax from the U.S., had the chemicals shipped to West Germany. The Glasgow firm of Arbuckle, Smith & Co., a topnotch forwarding outfit which ships most of the Scotch whisky to the U.S., then stepped in and bought the consignment. Shortly afterward, the U.S. Commerce Dept. charged that Arbuckle, Smith had shipped the chemicals to Red China, where they would bring $100,000, or almost double their U.S. price. The Bureau of Foreign Commerce asked Arbuckle, Smith why it had made the transshipment without asking U.S. permission, thus violating the U.S. Export Control Act.

The firm refused to answer, and the chemicals continued flowing to China. Last April the Commerce Department suspended Peter Meyns from U.S. trading privileges, but Arbuckle, Smith ignored the warning. Last week the U.S. announced the suspension of Arbuckle, Smith from all U.S. trading privileges, the first British forwarding firm to be so treated.

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