The Chargé in the Soviet
Union (Kennan) to the Acting Secretary of State
2570. Safehaven .
Emb has not rec’d any reply (ReDeptel 1475, June 30l) to its Safehaven notes to FonOff of April 30 (London tel 4254, April 262) and June 18 (ReEmbtel 2169, June 193) or any indication of desire to discuss matter.
We believe Russians likely to persist in refusal to assent to general freezing of state as well as private assets unless strong pressure can be brought to bear or arguments adduced more forceful from Russian point of view than fact that general freeze is technically more practicable (sent Dept as 2570 rptd London as 360).
Russian aim is naturally to obtain for Soviet Govt maximum effective power of disposition over all these assets. Russians wish private assets blocked and placed at disposition of ACCs because they control all ACCs and only in this way can they effectively guard against disposal over these assets by private individuals without their knowledge or consent. They do not wish state assets blocked because they effectively control govts in question and are thus able to control all dispositions over these assets. Hence they have a clear material interest in arrangement they have proposed whereby private assets would be blocked and released only on orders of respective ACCs and state assets would not be blocked at all, and this interest will be uppermost in their minds in any consideration of these questions.
In view of above Emb would prefer to discuss entire problem with Rubin who is expected here shortly before recommending further approach to FonOff.