840.51 FC/10–2644: Airgram

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

A–411. Reference your airgram no. 450 of October 26, 1944, requesting that the Treasury Department’s attention be directed to the helpless position of the National Bank of Nicaragua resulting from the fact that the Proclaimed List nationals in Nicaragua owning frozen funds in the United States oppose the transfer of such funds to the National Bank of Nicaragua.

Treasury has expressed its understanding of the National Bank’s position, but states that it can take no action with regard to the release of the funds held in the United States until the banking institutions with which the accounts in question are maintained are authorized by their respective depositors to release the funds to the National Bank of Nicaragua. On the basis of such authorization, the Treasury Department would be willing to consider applications on the part of United States banking institutions for licenses permitting the transfers. This is not to imply any prior commitments on the part of the Treasury Department to release the funds.

The Department is confident that the National Bank of Nicaragua will appreciate that no banking institution in the United States, under these circumstances, is in a position to transfer funds belonging to its depositors without their instructions. Such action would undoubtedly result in the bank’s becoming liable to the depositors, whose accounts were transferred, for disposition of funds without appropriate authorization.

Stettinius