740.00112A/9–2044: Circular telegram
The Secretary of State to the Diplomatic Representatives in the American Republics Except Argentina
The United States and British Governments will issue simultaneous statements on September 26 to the following effect:
“It has been determined by the United States Government and the British Government that the continuation of the Proclaimed and Statutory Lists will be necessary following the cessation of organized resistance in Germany. This action is required in order to permit the Allied Governments to deal properly with firms which have been part and parcel of the Axis effort to gain world domination. Many of these firms have been controlled from Axis territory and have been utilized as instruments of the Axis war machine. Control over these Axis subsidiaries will be necessary as a supplement to Allied control of the head offices of these firms in Germany until adequate measures are taken to prevent the further utilization of these firms as instruments of Axis policy. It will also be necessary to continue on the lists those firms that have sold themselves out to the Axis through their desire to make temporary exorbitant profits at the expense of the cause of democracy. The continuation of the lists is also necessary in order to maintain controls over foreign assets, which have been looted from their rightful owners by the Axis Governments, until steps are taken to deprive the Axis of this stolen property. Other firms on the lists constitute foreign investments by Axis leaders in an effort to finance themselves and their cause following the surrender of Germany. The lists will also constitute a means of furthering the war-time economic strangulation of Japan.
“While the lists will be maintained during the transition period from war to peacetime conditions wherever the remnants of Axis activity require, it is contemplated that the complete or virtual withdrawal of the lists will be possible at an early date with respect to those countries where adequate controls have been established and Axis spearhead firms have been eliminated.
“The United States Government expresses its hope that all governments and persons in support of the cause of democracy will cooperate to the end that these stated objectives shall be accomplished.”
You are requested to inform immediately the government to which you are accredited of the proposed statement and to express this government’s hope that it will cooperate in applying sanctions against firms wherever located which may remain on the lists during the period following the cessation of organized resistance in Germany.
You are further requested to inform the government that the complete or virtual withdrawal of the lists will be possible shortly following the cessation of organized resistance by Germany with respect to those countries which have eliminated the Axis spearhead firms and have instituted adequate controls to carry out the purposes of the continuation of the lists referred to in the proposed public statement.
It is believed that the possibility of a complete or virtual withdrawal of the Proclaimed List for the American republics which have eliminated the spearhead firms may be used as an inducement with those American republics which have not already completed an effective program for the nationalization of the spearhead firms to expedite such a program.
A number of the other American republics have instituted local lists or other controls which are based upon the Proclaimed List. You may assure any such government that the Proclaimed List will not be withdrawn with respect to such a country without full prior consultation in order that the time and manner of the withdrawal of the list for such a country may be fully integrated with the requirements of the local controls.
In view of a possible early end of hostilities in Europe and since it is desirable to accomplish the deletion program gradually through deletion of a number of names in successive supplements beginning with those firms which have contributed least to the Axis cause, you are requested to begin immediately a review of the Proclaimed List in the light of the above-mentioned post-resistance aims and to forward a report to the Department indicating (a) those names which should remain on the list during the post-hostilities period for which the lists will be maintained (including Axis spearhead firms, concerns which are enemy controlled, holders of property belonging to enemy nationals, receivers of property looted by enemy nationals, and in general any others likely to engage in activities detrimental to the above-mentioned post-resistance policies) and (b) the order in which the remaining names should be deleted, i.e., arranging the remaining names in the order of the seriousness of their offenses placing first those firms which have contributed least to the Axis cause.
You are requested to report the results of your approach to the government to which your are accredited.