740.22112A/8–1744: Airgram
The Secretary of State to the Ambassador in Ecuador (Scotten)
A–411. Reference is made to Embassy’s despatch no. 2001 of August 17, 194490 concerning the decree authorizing the review and revision of transfers of Axis properties made under the Blocked Properties Control.
The Department concurs in the position of the Embassy as stated in the penultimate paragraph of this despatch to the effect that the interest of the United States in the question of Axis properties is primarily that the properties are not returned to their owners. Naturally, the Department would not look with favor on the transfer of the property to other inimical interests. However this does not appear to be a real danger since decree no. 488 provides that if a transfer is annulled the properties or enterprises in question shall pass to the National Bank of Development.
The Department is prepared to present Group 3 deletion recommendations to the Interdepartmental Committee for consideration for Supplement VIII–1 of the Proclaimed List, but since Group 3 is comprised of the names of liquidated firms, and persons who have departed from Ecuador, the Department would appreciate confirmation as soon as possible that the present government will abide by the assurances given by the former government to the effect that deletion from the Proclaimed List will not cause the unblocking of their funds in Ecuador. In this connection see Embassy’s note no. 65 of February 3, 1944, paragraph 2(a), to Minister of Foreign Affairs (Enclosure 1 to despatch no. 1367 of April 13, 1944)91 and the Minister’s reply of March 30, 1944 (Enclosure 2 to despatch no. 1367 of April 13, 1944) wherein the Ministry of Finance signifies its acceptance of all the conditions contained in Embassy’s note no. 65.