800.515/11–1545: Circular Telegram

The Secretary of State to Certain Diplomatic Missions Abroad 39

After further consideration, Dept has come to view that from an external security standpoint blocking of assets in neutrals of satellite countries (Hungary, Rumania, Bulgaria) is not of major importance. In view of current British position cited London’s 10004 Sept 2640 (rptd Paris 618, Stockholm 607, Bern 287, Lisbon 213, Moscow 325, Madrid 254) and fact that Soviets have not withdrawn their opposition to freezing of both public and private assets of satellite countries, there would seem to be little hope of pursuing matter to any concrete advantage. Dept is therefore willing to withdraw from its original position espousing complete blocking of above countries in neutrals as a primary Safehaven objective.

Consistent with foregoing Dept has no objection to Madrid’s approval (Madrid’s 2222 Oct 30,41 rptd to London as 6120) of ad hoc releases of assets of Hungarian, Rumanian and Bulgarian citizens from Spanish blocking decree, provided no info is available militating against such action.

Foregoing decision is not to be considered a renunciation of claims to such German external assets in neutrals as may eventually be found to have been secreted therein under the cloak of satellite ownership.

Sent to London for discussion with British, and to Paris, Stockholm, Bern, Lisbon, Moscow, Madrid, Ankara, Buenos Aires and Dublin for information.

  1. For Missions to which this telegram was sent, see last paragraph of telegram.
  2. Not printed; this telegram reported that the British opposed taking any-further action regarding the freezing of satellite assets in neutral countries (800.515/9–2645).
  3. Not printed.