740.16112A/8–2245: Airgram

The Ambassador in El Salvador ( Simmons ) to the Secretary of State

A–196. The Department’s instruction No. 88 of July 19, 194548 and this Embassy’s airgram No. 159 of July 24, 1945. The Government of El Salvador to date has not given us assurances (1) that the remaining spearhead firms will be expropriated or subjected to liquidation or forced sale and (2) that these spearhead firms will not be returned to their former owners after the war. The matter was discussed with the Minister of Economy, who later brought it up in a regular Cabinet meeting, with no results. I mentioned it to the President yesterday and he said he would have it brought up in the next meeting of the Cabinet.

In addition to the delaying tactics already evident, it is felt that additional delay will be incurred because of rumored changes in the Cabinet. Any developments will be brought immediately to the Department’s attention.49

  1. Not printed.
  2. The delaying tactics continued through 1945. In airgram A–79, March 22, 1946, Ambassador Simmons reported as follows: “Liquidation may be said to be assured in the cases of commercial firms, with no prospects for liquidation of agricultural properties. Local controls are effective. The exception is, of course … when they have been removed from the Salvadoran list and granted full possession of the various properties and bank assets. Prestige of the list is good, since nobody will deal with listed persons or firms. Again the exception is .…” (740.00112A EW/3–2246)