Foreign Relations of the United States: Diplomatic Papers, 1942, Europe, Volume III

711.6121/7–142

Memorandum by the Assistant Chief of the Division of European Affairs (Henderson)⁶

[Washington,] July 15, 1942.

It may be ascertained from the attached memorandum of a conversation on July 1⁷ between the Soviet Ambassador and Mr. Acheson⁸ that the Soviet Ambassador has suggested that an exchange of notes be effected between the Soviet and American Governments to extend most favored nation treatment for Soviet consuls.

I do not believe that it is opportune at present to exchange notes of this kind. Since the most favored nation consul in the Soviet Union has practically no rights with respect to the matter of inheritances and in fact very few rights of any kind, the advantages accruing from a consular agreement of this kind would be of a unilateral nature.

So far as the question of inheritance is concerned, estates are being handled in the American courts in such a fashion that the interests of Soviet nationals are just as well protected and in some cases are probably more effectively protected, than would be the case if Soviet consuls were empowered by treaty to present themselves as interested parties.

For years the Soviet Government, through an American law firm headed by Mr. Charles Recht of New York, has been endeavoring to obtain control of all funds to which Soviet citizens may have claim. At present the procedure is somewhat as follows:

The Soviet Government through various agencies in this country learns that Soviet nationals may have a claim to certain funds. The Soviet authorities force the beneficiary or the owner in the Soviet Union to issue a Power of Attorney made out in favor of Charles Recht or one of his assistants. Armed with this Power of Attorney suit is brought by Recht in an American court for possession of the funds. A small portion of the proceeds is sometimes turned over to the owner or beneficiary in the Soviet Union. The bulk, however, goes into the coffers of the Soviet Government. The current file of a typical case is attached to this memorandum.⁹

It is not believed that we should take steps to facilitate this procedure. Most of the American citizens who leave bequests to relatives in the Soviet Union do not realize that the bulk of their bequests go, not to the legatee, but to the Soviet State.

The only treaty entered into by the Soviet Union which gave any substantial rights or privileges to foreign consuls was the Soviet-German Treaty of October 12, 1925.¹⁰ The Soviet authorities, however, during the last 15 years have so interpreted the various clauses of this Treaty that the rights and privileges of German consuls gradually diminished. Now that Germany and the Soviet Union are at war a most favored nation agreement would not give the American consul in the Soviet Union even the rights and privileges which theoretically the German consul in the Soviet Union possessed.

In my opinion it is preferable not to endeavor to negotiate any kind of a consular agreement with the Soviet authorities at the present time. The matter should be left until after the conclusion of hostilities and until such time as both Governments are in a position to give to the problem the consideration which it merits.

6. Addressed to Mr. Ray Atherton, Acting Chief of the Division of European Affairs, and to the Office of the Adviser on Political Relations (Dunn).
7. Not printed.
8. Dean Acheson, Assistant Secretary of State.
9. Not printed.
10. Agreement concerning Conditions of Residence and Business and Legal Protection in General, signed at Moscow; for text, see League of Nations Treaty Series, vol. liii, pp. 7–161. See also Foreign Relations, The Soviet Union, 1933–1939, pp. 33–34.