The Ambassador in Venezuela ( Corrigan ) to the Secretary of State

No. 4699

Sir: I have the honor to refer to the Department’s Circular Instruction of July 1, 1943,1 on the subject of elimination of enemy influence [Page 845] from insurance, requesting the Mission’s careful consideration of the proposals set out therein and its views thereon.

Although the Embassy endorses the proposals listed in the Instruction under reference, a hurried and superficial survey of the insurance situation in Venezuela reveals that few of the objections pointed to by these proposals exist in Venezuela. It is recalled that the most offensive condition in the insurance field with regard to our Economic Warfare Program was recently settled satisfactorily when Cia. Nacional Anonima de Seguros “La Previsora”, that reinsured with British Companies, cancelled all existing fire insurance policies with Proclaimed List Nationals (See Embassy Despatch No. 4580 dated July 7, 1943).2

The concrete proposals submitted in the Instruction under reference are considered in their respective order, to wit:

1: The survey made indicates that in Venezuela there are no insurance and reinsurance transactions with companies which operate directly from enemy territory or with companies in enemy territory which operate through agencies in this hemisphere.

2: There are no persons or firms in the insurance business in Venezuela who are included in the Proclaimed List of Certain Blocked Nationals.

3: From the brief survey made, it would appear that the problem with neutral European companies does not present itself in Venezuela.

4: This proposal will most nearly meet the problem in the insurance field which presents itself in Venezuela, and the obtaining of undertakings from non-listed companies by which they will agree not to insure any persons on the Proclaimed List or any property in which such persons have an interest is particularly endorsed, and it might be suggested that the form of Undertaking include the provision to cancel all such existing insurance as soon as possible.

In the dealings recently consummated and reported in Embassy Despatch No. 4580 dated July 7, 1943, by which Cia. Nacional Anonima de Seguros “La Previsora” cancelled existing fire insurance policies with Proclaimed List Nationals, it was learned that by this Company’s Policy No. 12926 it had insured a building in Caracas belonging to “Hauck” S.A. (PL) for the amount of Bs. 200,000., the policy designating the Banco Venezolano de Crédito as beneficiary in view of the fact that “Hauck” S.A. (PL) had mortgaged the building to this Bank to secure a loan in the amount of the policy. A similar problem presented itself in the case of the Policy No. 11462 by which a building in Valencia belonging to Giugni y Cia. Sucrs (PL) was insured for Bs. 150,000. which policy names the Banco Industrial de Venezuela as beneficiary, this building having been mortgaged to the Bank to secure a loan in the amount of the policy. The Embassy is now giving these problems its study because, although the beneficiary in the policy is not a Proclaimed List National, nevertheless in the event of loss, a Proclaimed List National will benefit indirectly.

Another problem now receiving the Embassy’s study, which falls [Page 846] in this category, is the matter of trucking companies obtaining floating insurance policies from local insurance companies for goods shipped from point to point within the Republic, particularly goods moving between Caracas and Maracaibo, Venezuela, because, in many instances, the truckers move goods belonging to Proclaimed List Nationals which are covered by these policies and it is difficult for the insurer to have knowledge thereof.

5: It would not appear that this proposal is applicable to the insurance situation existing in Venezuela.

It is not anticipated that any additional personnel may be needed to carry out these proposals in Venezuela.

Respectfully yours,

Frank P. Corrigan
  1. Not printed.
  2. Despatch not printed.