By United Press

Washington, Jan. 27 - A Senate sub-committee today considered a plan to remove loyal citizens from among the more than 106,000 Japanese-Americans now in western settlement camps and put them in the Army or in war plants.

Chairman Albert B. Chandler, D., Ky., of a military affairs sub-committee investigating charges of "coddling" in the Japanese settlements, said two-thirds of the 106,000 are "nisei" - American-born and American-educated Japanese - who "are mostly loyal Americans who want to work and want to fight."

Our problem looks like a problem of segregation - how to separate the good from the bad," Chandler said after an executive session of the sub-committee. "It should have been done long ago."

Chandler said the sub-committee will meet tomorrow to ask former Ambassador to Japan Joseph C. Grew about the feasibility of separating "the sheep from the goats."

Pointing out that 2000 Americans of Japanese descent are now in the army, Chandler said: "We're going to put more of them into the army if we find they're loyal."

Charges Studied

Chandler's committee was appointed to study charges that the Japanese have been "pampered" by the War Relocation Authority, which has supervision over them. Sen. Mon C. Wallgren, D., Wash., has introduced legislation to place the colonies under direct army supervision.

Chandler said that after hearing from Grew and Dillon Myers, head of the relocation authority, the committee will visit the resettlement camps to make a first-hand study of conditions.

Chandler said the committee had questioned Rex I. Nicholson of Salt Lake City, a former WPA official who co-operated with the army last winter in moving Japanese out of west coast military zones. Chandler said after hearing Nicholson's testimony that the army and WPA "handled this problem without any trouble at all.

The December 7 riot at a Japanese camp at Manzanar, California, Chandler said, showed that "segregation is highly important - we've got to get the enemies out of there." One man was killed in the riot which came during a celebration of Pearl Harbor attack by pro-Japanese."