Foreign Relations of the United States: Diplomatic Papers, 1944, The American Republics, Volume VII

840.51 Frozen Credits 17/10–1344: Airgram

The Secretary of State to the Ambassador in Nicaragua (Stewart)

Washington, October 13, 1944—5:55 p.m.

A–367. Reference your despatch no. 2322 of June 15, 1944 with regard to the transfer to Nicaragua of funds frozen in the United States to the credit of Proclaimed List nationals in Nicaragua.

The information contained in the above-mentioned despatch was forwarded to the Treasury Department with the statement that there appeared to be no objection to the release of the amounts blocked in the name of Alberto Pataky & Co. and Impex Centro-Americana Cia. Ltda. under the policy previously outlined by it. The comments of the Treasury Department were requested on all the cases referred to in the despatch.

A memorandum dated October 5, 1944 has now been received from Foreign Funds Control, Treasury Department, the pertinent portion of which is quoted below:

“Your attention is called to our Letter No. 70426, dated August 11, 1944,⁵² addressed to Mr. Acheson⁵³ relative to the release to the Haitian Government of certain securities held in the United States in the name of Société Haitienne de Banque et de Placement, a Proclaimed List organization in Haiti, and certain other securities registered in the name of Arpad Plesch. In this letter, Treasury enunciated the policy of being prepared to release to the governmental authorities of a cooperating Latin American country the assets of a Proclaimed List firm organized in such country, whenever action has been taken which clearly demonstrates that the activities of such concern are being appropriately controlled and regulated by the appropriate authorities of such country.’ We, accordingly, do not anticipate any difficulty in releasing to the National Bank of Nicaragua the funds held in the names of the two firms specifically mentioned in Mr. Baker’s memorandum⁵⁴ and probably those of the additional firms referred to in the Embassy’s Despatch of June 15, 1944.⁵⁵

“This Department, however, cannot take any action pending receipt of appropriate applications for release of the funds in question. It is, accordingly, suggested that our Embassy be instructed to advise the National Bank of Nicaragua to make the necessary arrangements with the parties at interest to have the persons or firms in the United States holding the assets in question file appropriate applications through their respective Federal Reserve Banks. These applications should contain all pertinent detail, particularly the status of the Proclaimed List nationals involved. Our Embassy should, of course, be instructed that, in discussing this matter with the National Bank, no commitments should be made concerning Treasury action on any applications filed in connection with these cases.”

Hull

52. Not printed.
53. Dean Acheson, Chairman of the Executive Committee on Economic Foreign Policy, member of the Frozen Funds Committee, and Assistant Secretary of State.
54. Memorandum not found in Department files. The reference here is possibly to George W. Baker, Assistant Chief of the Division of World Trade Intelligence.
55. Presumably despatch 2322, supra.