800.515/9–2945: Telegram

The Secretary of State to the Chargé in the United Kingdom (Gallman)

8972. Stockholm’s 3133, Sept 29,28 rptd to London as 1713, to Paris as 173; see also Lisbon’s SH report 386, Aug 29,28 copied to London. (1) Considering far greater importance of dealing with immediate questions relating to control and disposition of German property, time which has elapsed since introduction of freezing controls, opposition [Page 907] of Fr and inevitability of delay in convincing other Allied govts of desirability of freeze, Dept and other interested agencies are prepared to drop question of freezing of assets of formerly-occupied countries in Sweden and Portugal. Brit Emb here states its govt agrees. Dept feels that realistic view calls for elimination of time-consuming aspects of Safehaven program on which little dividends can be expected. It would be desirable for Stockholm and Lisbon to suggest to their Allied colleagues with whom program has been discussed that while we will not press for complete freeze it would be highly beneficial to Safehaven for them to suggest ad hoc blocking to Swedish and Portuguese Govts in appropriate instances. Altho Dept has not favored a selective freezing operation this would seem to be an acceptable compromise at this stage of discussion.

2) Stockholm is requested to consider whether it is feasible to suggest to Swedes census of assets of formerly-occupied countries, as has been done in Portugal, without freeze of such assets.

So far as dual census in Portugal is concerned, Dept continues of view that suggestions for such census outlined in Dept’s air mail instruction 86 of Aug 7, 194529 should be communicated to Portuguese authorities, particularly since it does not appear that Portuguese have been requested to undertake investigation of transactions involving transfer of enemy assets to Portugal since Jan 1, 1939. Dept, however, is willing to defer to Lisbon’s judgment in this connection if Emb considers that arrangements already instituted are adequate to insure that transfers of enemy assets can be traced.

3) Question of freezing of assets of Hungary, Bulgaria, and Rumania is continuing under consideration.

Sent to London as 8972, repeated to Lisbon as 1633, to Stockholm as 1900 and to Paris as 4713.

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