840.51 Frozen Credits/1961½
The Department of State to the Embassy of the Soviet Union
Aide-Mémoire
At the time of the issuance of Executive Order No. 8785 on June 14, 1941, it was announced that freezing control would be lifted with respect to certain countries, including the Union of Soviet Socialist Republics, by the issuance of general licenses, provided that certain assurances were received from the Governments of such countries within a reasonable time. Such Governments and their respective central banks will be required to assure this Government that they will engage in no transaction under such general license in which any foreign country designated in Section 3 of the Executive Order or nationals thereof, other than the Union of Soviet Socialist Republics [Page 763] and nationals thereof who are not also nationals of countries so designated, have an interest, direct or indirect. In addition such Governments and central banks will be required to assure this Government that they are taking appropriate and reasonable steps to prevent their residents and their other nationals from undertaking transactions under such general licenses in which any foreign countries designated in Section 3 of the Executive Order or nationals thereof, other than the Union of Soviet Socialist Republics and nationals thereof who are not also nationals of countries so designated, have an interest, direct or indirect.
Thus, such governments and their respective central banks will be required to assure this Government that they will engage in no transaction under such general license which will violate the terms thereof and such governments and central banks will be required to give assurances that they are taking appropriate and reasonable steps to prevent the residents and other nationals of that country from undertaking transactions under such general licenses in violation of the terms thereof.
It is expected that the general licenses to be issued79 will, among other things, require advance reporting of certain classes of transactions, daily reporting of all other transactions, and certifications with respect to all transactions engaged in under the general license that such transactions do not involve an interest, direct or indirect, of any foreign country designated in the Order or nationals thereof, other than the Union of Soviet Socialist Republics and its nationals who are not also nationals of other countries designated in the Order.
If in the actual operation of such a general licensing system it develops that the assurances and certifications do not have the effect of preventing evasion of the purposes of the Order, or if, for any other reason, the general licensing system proves to be inappropriate or unsatisfactory, it is understood that such system may be modified or rescinded at any time.