740.24112A/10–344
The Chargé in Bolivia (McLaughlin) to the Secretary of State
[Received October 10.]
Sir: I have the honor to refer to the Department’s circular telegram of September 20, 1944, which contained the text of the simultaneous statements issued on September 26, 1944, by the United States and British Governments, concerning the Proclaimed and Statutory List policy to be followed upon the cessation of hostilities in Europe, and which instructed the Embassy to inform the Bolivian Government of this policy and its significance. A copy of the Embassy’s note to the Bolivian Foreign Office dated September 26, 1944, is attached.55
The telegram under reference also requested the Embassy to begin immediately a review of the Proclaimed List in the light of a possible early end of hostilities in Europe and the desire to accomplish the deletion of a number of listings beginning with those firms and individuals who have contributed least to the Axis cause. It was suggested that the Embassy classify the individual listings included in the Proclaimed List into two groups: “A. Those names which should remain on the list during the post hostilities for which the lists will be maintained;” and “B. The order in which the remaining names should be deleted.”
The situation in Bolivia is, as the Department is aware, still undefined with respect to twelve leading Axis firms, which have been classified as Axis spearheads. At the present time, the expropriation decrees are before the consideration of the National Convention, and the Government, although it has declared its intention to act immediately after the approval of these decrees, has so far taken no action to expropriate these key firms, pending the Convention’s decision.
In view of this circumstance and taking into account the possibilities (1) that the Convention may fail to approve the expropriation program; and (2) that the Government may fail to implement it satisfactorily if it is approved by the Convention, the Embassy has prepared two classifications of the list, one to take effect in the event that the expropriation-replacement program is not effected by the time that hostilities have ceased in Europe and the other to take effect in the event that the expropriation-replacement program is effectively implemented. Both classifications are enclosed with the attached memorandum.55
The Embassy regards the classifications, which have been worked out with the cooperation and approval of the British Legation, as subject to modifications, according to further developments. It is very [Page 533] probable that various of the individual cases will come up for revision in the normal course of Proclaimed List work; however, the two classifications are believed to represent a composite and general picture of the situation as it exists at this time.
Respectfully yours,
Commercial Attaché