Foreign Relations of the United States: Diplomatic Papers, 1944, General: Economic and Social Matters, Volume II

840.51 Frozen Credits/12479a: Circular telegram

The Acting Secretary of State to Certain Diplomatic and Consular Officers ¹

Washington, February 22, 1944.

There is quoted below the text of a declaration issued by the Secretary of the Treasury² at twelve noon Eastern War Time, February 22, 1944. A similar declaration was issued by the United Kingdom and U.S.S.R. Treasuries.³

“On January 5, 1943 the United States and certain others of the United Nations issued a warning to all concerned, and in particular to persons in neutral countries, that they intend to do their utmost to defeat the methods of dispossession practiced by the governments with which they are at war against the countries and peoples who have been so wantonly assaulted and despoiled.⁴ Furthermore, it has been announced many times that one of the purposes of the financial and property controls of the United States Government is to prevent the liquidation in the United States of assets looted by the Axis through duress and conquest.

One of the particular methods of dispossession practiced by the Axis powers has been the illegal seizure of large amounts of gold belonging to the nations they have occupied and plundered. The Axis powers have purported to sell such looted gold to various countries which continue to maintain diplomatic and commercial relations with the Axis, such gold thereby providing an important source of foreign exchange to the Axis and enabling the Axis to obtain much-needed imports from these countries.

The United States Treasury has already taken measures designed 10 protect the assets of the invaded countries and to prevent the Axis from disposing of looted currencies, securities, and other looted assets on the world market. Similarly, the United States Government cannot in any way condone the policy of systematic plundering adopted by the Axis or participate in any way directly or indirectly in the unlawful disposition of looted gold.

In view of the foregoing facts and considerations, the United States Government formally declares that it does not and will not recognize the transference of title to the looted gold which the Axis at any time holds or has disposed of in world markets. It further declares that it will be the policy of the United States Treasury not to buy any gold presently located outside of the territorial limits of the United States from any country which has not broken relations with the Axis, or from any country which after the date of this announcement acquires gold from any country which has not broken relations with the Axis, unless and until the United States Treasury is fully satisfied that such gold is not gold which was acquired directly or indirectly from the Axis powers or is not gold which any-such country has been or is enabled to release as a result of the acquisition of gold directly or indirectly from the Axis powers.”⁵

You are instructed to bring the above declaration to the attention of the appropriate officials of the government to which you are accredited, and to inform such officials that it is our sincere hope that their government will take parallel action.⁶

Stettinius

1. In Algeria, Argentina, Australia, Bolivia, Brazil, Canada, Chile, China, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Egypt (repeated to the diplomatic representatives for Greece and Yugoslavia), El Salvador, Ethiopia, Great Britain (repeated to the diplomatic representative for Belgium, Czechoslovakia, the Netherlands, Norway and Poland), Guatemala, Haiti, Honduras, Iceland, India, Iran, Iraq, Liberia, Mexico, New Zealand, Nicaragua, Panama, Paraguay, Peru, Portugal, Spain, Sweden, Switzerland, Turkey, Union of South Africa (Pretoria and Capetown), Union of Soviet Socialist Republics, Uruguay, and Venezuela.
2. Henry Morgenthau, Jr.

3. A memorandum of December 27, 1943, by the Chief of the Financial Division (Livesey) stated: “The general policy expressed in the proposed declaration was thoroughly cleared in the Department and approved by two Assistant Secretaries and the Secretary. The Treasury was told of this general approval and of collateral suggestions by the Department of State that the issuance of the statement should be taken up with the British with a view to having them take parallel action.” (740.00113 European War/1253b)

   In a memorandum of December 29, 1943, the Chief of the Financial Division noted that Harry Dexter White, Assistant to the Secretary of the Treasury, had informed him in a telephone conversation on that date that Secretary Morgenthau, several days before, had suggested that the consultation with Great Britain regarding the proposed Treasury declaration be broadened by also consulting the Soviet Union (740.00113 European War 1939/1278).

4. For text of Inter-Allied declaration against acts of dispossession committed in territories under enemy occupation or control, January 5, 1943, see Foreign Relations, 1943, vol. i, p. 443.
5. A note of February 22 from the Soviet Ambassador (Gromyko) cited a letter from the Acting Secretary of the Treasury (Bell) to the effect that the provisions contained in the last paragraph of the Treasury declaration would not be applied to operations on gold transactions of the U.S.S.R. The Acting Secretary of State (Stettinius), in his note of February 22 to the Soviet Ambassador, confirmed that the provisions in the final section would not be held operative in respect to gold transactions of the U.S.S.R. (800.515/973)
6. During 1944, according to Department records, the following Governments-declared publicly their adherence to the declaration, or notified the Department of their acceptance of its principles and their intention to implement the declaration: Belgium, Brazil, China, Czechoslovakia, Dominican Republic, El Salvador, Ethiopia, Greece, Guatemala, Haiti, Iceland, India, Iran, Liberia, Luxembourg, Netherlands, New Zealand, Nicaragua, Norway, Peru, Poland, Union of South Africa, and Yugoslavia.