840.48 Refugees/759a: Telegram
The Secretary of State to the Ambassador in the United Kingdom ( Kennedy )
540. For Mr. Rublee from Messersmith.28 The questions discussed by the Committee and the Department in your cable No. 763 of August [Page 789] 15 and the Department’s reply No. 592 of August 27 have been given continued and more comprehensive consideration by the Department, and consequently I transmit to you a somewhat more extended and clarifying presentation of our thoughts.
The Department realizes that the success of the Intergovernmental Committee may well be vitally affected by the manner and extent to which it may be possible to arrange for these emigrants to secure in some part the proceeds of wealth possessed by them within Germany. It likewise realizes that the transfer of wealth required must largely take place through the movement of German goods, if at all.
On the other hand, it wished to place before you some preoccupations against which it is believed the Intergovernmental Committee will want to be on guard: First, it is possible that the German authorities, in view of the fact that American official initiative established the Intergovernmental Committee, may put forward proposals in which they will seek as a quid pro quo for permitting transfer of the capital of refugees, trade or other concessions from the American Government. It is unnecessary, I know, to inform you that the Department could not consider any proposals of this character. Second, arrangements may be suggested which in their continued operation would seriously displace current American trade with the outside world and perhaps even in some instances impair the value of commercial agreements which this Government has negotiated in recent years. Any such outcome would of course be regrettable and should be guarded against.
I am sure that the Intergovernmental Committee would want to bear these possibilities in mind in considering arrangements that might be worked out with the German Government.
I would not wish to have the preceding cautionary considerations construed as indicating any necessary active opposition on our part to any or all arrangements that might be worked out for facilitating such movement of German goods as would result in putting funds at the disposal of emigrants solely because they might involve bilateral export procedures. Rather, I am suggesting that, from the Department’s point of view, it is highly desirable that each specific arrangement be carefully appraised in the light of its possible effect upon ordinary and normal American trade operations, and the value of American commercial accords. This same consideration would obviously arise in connection with the attitude of other exporting countries to particular projects.
I should think that arrangements which were more or less fully worked out through goods movements for the direct use of the emigrants themselves rather than for general diffusion in ordinary commercial markets would not only be the simplest to execute but least susceptible of creating any difficulties of the preceding character. [Page 790] For one thing, it will be clear to everyone that trade of this character is taking place only because the immigration movement took place. No question therefore of actual displacement could arise. Further, I should think there might be possibilities of transfer in the field of proceeds arising out of the sale of services by Germany—particularly proceeds of tourist travel. As you no doubt know, this has been the chief means of facilitating payment and transfer under the Standstill Agreements.
I would conclude by again assuring that of course the Department is in every way eager that suitable practical methods be devised to enable the Intergovernmental Committee to carry out its task successfully. It is in that underlying thought that we should approach, of course, all specific suggestions which the Committee may formulate, and not with too rigid views or fears.
Of course it is not clear that projects for facilitating transfer by special arrangements with particular countries willing to enter into such arrangements would necessarily come before this Government in circumstances requiring it to take any position thereon. The Department is not arrogating to itself the authority to take decisions which are incumbent on others. However, questions in this field may come before the Intergovernmental Committee for consideration and it has seemed desirable to give you, in response to your inquiry, an indication of the point of view entertained by the Department in this field. [Messersmith.]
- George S. Messersmith, Assistant Secretary of State.↩