The Chargé in Nicaragua (Finley) to the Secretary of State
[Received February 23.]
Sir: I have the honor to refer to the Department’s confidential instruction no. 1498 of February 6, 19455 setting forth the three criteria now warranting retention of names on the Confidential List and transmitting twenty-two names proposed for retention on the List for Nicaragua as being those of cloaks for proclaimed firms. Of the three criteria only the first has any application here since there are no specially blocked nationals in Nicaragua and no goods are shipped from this country to the Argentine. As the present policy is to restrict use of the Confidential List to its original function of preventing goods from reaching Proclaimed List nationals, it is pertinent to point out that only a few proclaimed firms remain in business in Nicaragua [Page 304] and that in the exercise of its powers first as interventor and later as administrator, the National Bank of Nicaragua has refused to use moneys of such firms and persons for restocking. This policy has resulted in almost complete liquidation of all but a few proclaimed firms and even these have no temptation to procure additional stocks as the retail sale proceeds are frozen, and a forced auction sale, of all their goods with investment of the proceeds in frozen bonds is in prospect under Decree no. 276. I am of opinion nonetheless that retention of some Nicaraguan names on the Confidential List serves a useful purpose as a proclaimed individual may devote funds which have escaped Bank control to the operation of a new business conducted in the name of a cloak.
In respect of the names proposed for deletion I call the Department’s attention to details concerning the following:
[Here follows information on individual cases.]