740.21112A/565: Airgram

The Secretary of State to the Chargé in Colombia (Daniels)

A–294. It was the intention of the Department that the statements made in its airgram 729, May 13, 194310 concerning residential property should be interpreted in the light of the circumstances described in your despatch no. 1980, April 14, 194310 rather than as defining a general policy to be applied in all circumstances.

Dealings in Proclaimed List residential property may or may not qualify the persons in interest for Proclaimed Listing depending on a number of factors such as the presence or absence of special conditions or circumstances, the effect which such dealings may have on the local prestige of the Proclaimed List, whether the dealing may be considered as an isolated transaction, etc. Since these factors are variable, the Department’s policy has been to consider each case on its merits rather than to attempt to apply hard and fast general rules. The following comments, however, may be helpful in connection with the questions raised in your airgram 265 of March 23, 1944:

(1) As a general rule the renting of residential property to a Proclaimed List national is not considered a valid basis for Proclaimed Listing since it is not desirable to prevent a Proclaimed List national from housing himself and his family.

(2) The renting of residential property from a Proclaimed List national presents a different problem because it is necessary to pay rental to the Proclaimed List national and thus contribute to his income.

Generally speaking, the mere fact that an otherwise politically satisfactory person rents from a Proclaimed List national does not in itself constitute a valid basis for Proclaimed Listing, particularly where such rental is explained by peculiar circumstances: For example, your despatch no. 1980 of April 14, 1943 states that there is a shortage of suitable houses in Barranquilla; that the Prado district is the only desirable residential district in the town; that a large number of the houses in such district are owned by Proclaimed List nationals; and that various persons (other than Americans) therefore customarily rent from Proclaimed List nationals. Under the circumstances, the Interdepartmental Committee was of the opinion that the mere renting of a residence from a Proclaimed List national did [Page 846] not, in itself and unaided by other circumstances, qualify the renter for listing.

The rental contract may, however, be a circumstance to be taken into consideration in appraising the status of the renter. Furthermore, persons making inquiry at the Embassy should be discouraged from following this practice provided such a position on the Embassy’s part is reasonable in the light of local housing conditions and the surrounding circumstances.

(3) Purchases and sales of residential property involving a Proclaimed List national should be considered on the same basis as the purchase or sale of any other type of real estate involving a Proclaimed List national.

(4) As regards real estate agents, no difference is perceived between the handling of residential property and other types of real estate. Such practice is not desirable and should not be encouraged by the Embassy.

Whether Agencia de la Espriella should be Proclaimed Listed for the transactions and attitude described in your airgram 265, March 23 depends in a large measure upon whether, in view of local conditions, the Embassy feels that the cooperation of other agents similarly situated can be obtained or, failing in this, whether the Embassy considers it feasible to apply the same treatment to them. Other material factors would be whether the practice injures the local prestige of the List, whether the practice is calculated to cause other violations of Proclaimed List policy, and whether the firm in question is otherwise politically satisfactory.

Should you feel that listing action is desirable in the case mentioned, or in any other similar case, please forward a complete report together with your recommendation.

Policy with respect to persons subject to the jurisdiction of the United States is set out in paragraph numbered 13 in the Department’s circular instruction of February 25, 1942.11

Hull
  1. Not printed.
  2. Not printed.
  3. Not printed; paragraph 13 stated that persons subject to the jurisdiction of the United States may not enter into leases of houses, apartments, rooms, or office space from owners on the Proclaimed List except under license and should terminate such existing leases as soon as legally practicable. Such transactions might be authorized in hardship cases. Use by American nationals of hotels on the Proclaimed List was to be discouraged. (740.00112A E. W. 1939/7879a)