800.515/4–2245: Telegram

The Secretary of State to the Ambassador in the United Kingdom ( Winant )

3158.54 As the Government of Spain is aware, the United Nations for some time have been deeply concerned with the possibility that the illegal and reprehensible activities of looting and depredation, which have been carried out by the Axis occupying authorities in [Page 874] the territories of Europe which were previously and some of which are still under their domination, would lead to attempts to consummate such transactions in other countries. Moreover, the United Nations have perceived cause for anxiety in the possible flight of Axis capital for the use of war criminals and other dangerous persons and other Axis manipulation of assets located abroad to the detriment of both the peace and security of the post-war world and the welfare of the country in which such assets were located.

The Government of the United States has indicated its strong interest in these matters by its subscription to the United Nations Declaration of January 5, 1943,55 to the Gold Declaration which was issued on February 22, 1944,56 and by its endorsement of Resolution VI adopted at the United Nations Financial and Monetary Conference, held at Bretton Woods, New Hampshire. The Inter-American Conference on Problems of War and Peace57 has endorsed all of these measures. The Governments of Switzerland and Sweden have also undertaken certain measures to attain the objectives discussed in this note. In these steps, the United Nations have participated and cooperated, and the interest of various of the United Nations in these measures has been directly expressed to the Government of Spain.

On October 2, 1944, the American Ambassador had the honor to present to the Minister of Foreign Affairs a note which enclosed a copy of Resolution VI of the United Nations Financial and Monetary Conference, and which requested the Government of Spain to take steps to implement that Resolution.58 On November 6, 1944, there was addressed to the Minister of Foreign Affairs the Embassy’s note no. 333459 with respect to the statement of gold policy, in which assurances were requested that Spain would make no future purchases of gold in which there appeared any direct or indirect enemy interest. Until now, no comment has been received with respect to either of these communications.

The attention of the Government of Spain is again called to Bretton Woods Resolution VI and the statement of gold policy contained in the Embassy’s note dated November 6, 1944. Attention is also called to the United Nations Declaration of January 5, 1943 wherein the signatory nations, including the Government of the United States, [Page 875] expressed their intention to regard as invalid all transfers of looted property.

It is earnestly desired that the Government of Spain join other peace-loving nations in subscribing to the principles of, and in the full and effective implementation of the terms and spirit of these declarations. In order to state specifically the present implications of such implementation the following list of objectives is presented:

1.
That the Government of Spain announce publicly its intention to adhere fully to the terms and spirit of Bretton Woods Resolution VI, the Gold Declaration of February 22, 1944, and the principles enumerated in the United Nations Declaration of January 5, 1943.
2.
That the Government of Spain freeze immediately and simultaneously with the public announcement referred to in Paragraph 1, all assets referred to in Items 3 and 4 below, and other such assets as may be subsequently uncovered by the Government of Spain or brought to its attention by the United States. Further in this connection that the Spanish Government investigate all transactions involving the transfer of assets to Spain or a change in title in assets located in, or managed from, Spain which have occurred since January 1, 1939 between Spanish subjects or persons subject to Spanish law or persons acting on behalf of such persons on the one hand, and persons or subjects of Axis or Axis-controlled countries, or persons, wherever situated, acting on their behalf, on the other hand, if such transactions involve sums exceeding ten thousand dollars or assets valued at ten thousand dollars or more, regardless of the amount of money involved in such transactions. That the Spanish Government immobilize assets so transferred where there is evidence that persons or subjects of Axis or Axis-controlled countries or persons acting in their behalf have an interest in such assets, direct or indirect, or where there is an obligation, expressed or implied, owing to such persons or subjects arising out of such transactions. That the Spanish Government make available full details to the US and UK Governments concerning any such transactions where there is evidence of such interest in the assets so transferred or where the assets were transferred without the payment of adequate and appropriate compensation. The principles for the licensing of transactions involving the assignment, transfer, withdrawal, payment, hypothecation, or other disposition of such assets shall be in accordance with such arrangements as are provided for by the Government of Spain, in agreement with the United States. Any such arrangements shall provide for submission to the United States of full information on all licenses so issued.
3.
That in order to execute fully its controls, the Government of Spain immobilize and facilitate the return of any looted assets, as described in Bretton Woods Resolution VI, regardless of present ownership of such assets.
4.
That the Government of Spain conduct a detailed census of all assets, regardless of form, located in Spain or held abroad through persons or firms in Spain which, or any interest in which, direct or indirect, is owned or controlled or held by, in behalf of, or in the name of, persons and firms who are nationals or residents or domiciled in Axis countries or in countries at any time controlled by Axis countries. The term assets, as used in this connection, shall include, [Page 876] but not by way of limitation, any real property or interest therein, enterprise (commercial, industrial, financial or scientific), security, or interest therein, patents, trademarks, corporate and contractual rights, including management contracts, patent licenses and arrangements, insurance policies and reinsurance contracts, bank accounts and deposits, including trusteeship accounts, safe deposit boxes, vaults, checks, drafts, credits, gold and other precious metals, options and any other types of arrangements or undertakings, written or unwritten. Further in this connection, that the Government of Spain provide that the penalty for failure to report fully or correctly will be sufficiently severe as to compel the submission of full and correct information even when large assets are involved, and that the Government of Spain make available to the United States the information obtained from the census.
5.
That the Government of Spain provide the United States with full information concerning all persons in Spain who possess the nationality of Axis countries and all such persons who have entered into Spain since January 1, 1939 and who are presently in Spain, regardless of present nationality. Such information shall include details as to their residence, occupation, travels from Spain made since initial entry into Spain, and such other information as will be relevant to ascertaining whether such persons are or may be acting for or in the interests of Axis or Axis-controlled countries or who, in the period following the occupation of such countries by the United Nations, may work against the interests of the occupying authorities. Also, that the Government of Spain submit similar information on all persons who have come to Spain since January 1, 1939 from countries which were previously satellites of the Axis countries or from countries now or previously controlled by the Axis countries where the evidence reveals that such persons are or may have been acting for or in the interest of the Axis or Axis-controlled countries. It is further recommended that the Government of Spain submit similar information to the United States on all persons who, during the period of hostilities, may enter Spain from Axis or Axis-controlled countries and such other persons as may be referred to the Government of Spain by the United States.
6.
That the Government of Spain establish effective controls with respect to any transactions with the Axis or Axis-controlled countries, or the nationals of such countries in order to prevent entry into Spain from such countries of any assets or the removal from Spain to such countries of any assets. The principles on which transactions shall be licensed will be in accordance with such arrangements as are provided for by the Government of Spain in agreement with the United States. Any such arrangement shall provide for the submission to the United States of full information on all such transactions which are authorized.
7.
That the Government of Spain, after the foregoing measures have been put into effect, investigate all suspicious cases, including, but not limited to, cases referred to it as being in such category by the United States and report the results of all such investigations to the United States.
8.
That the Government of Spain prosecute vigorously violations of the measures referred to in this agreement and take such other steps as are necessary to obtain rigid enforcement of such measures.
9.
That the Government of Spain establish a suitable procedure by which its officials concerned with the execution and operation of the foregoing measures may be consulted with at appropriate intervals by representatives of the United States regarding the implementation of such measures.

Sent to London, repeated to Lisbon as Department’s 635, to Madrid as Department’s 668, to Paris as Department’s 1624, and to Moscow as Department’s 932.

Stettinius
  1. Telegram 3157, April 22, 5 p.m., to London, had explained that telegram 3158 would transmit the text of a draft note to the Spanish Government whose content was to be discussed with the British Mission in Madrid for possible changes prior to its presentation (800.515/4–1445).
  2. For text of the Declaration Regarding Forced Transfers of Property in Enemy-Controlled Territory, see Foreign Relations, 1943, vol. i, p. 443.
  3. For text of the declaration issued by Secretary of the Treasury Henry Morgenthau, Jr., see circular telegram, February 22, 1944, ibid., 1944, vol. ii, p. 213.
  4. Held at Mexico City, February 21–March 8, 1945; for documentation, see vol. ix, pp. 1 ff.
  5. For text of this note as transmitted by the Department to Madrid for presentation to the Spanish Government, see circular telegram, September 29, 1944, 3 p.m., Foreign Relations, 1944, vol. ii, p. 235.
  6. Not printed.