740.00112A E.W./10–3045

The Ambassador in Guatemala (Kyle) to the Secretary of State

No. 784

Sir: I have the honor to refer to the Department’s airgram No. A–694 of October 15, 1945,51 concerning the proposed reduction in November of the Proclaimed List for Guatemala to a “hard core”, and to transmit herewith the Embassy’s recommendations.

The Embassy for practical purposes has up to now deemed it wise to base its Proclaimed List policy for Guatemala on the special considerations existing in this country. These special considerations were the subject of the Embassy’s Despatch No. 61 of May 23, 1945.52 It was specifically recommended in that despatch that “the proposed elimination of the Proclaimed List in Guatemala be carried out in accord with developments in the Guatemalan Government’s expropriation program, and not on the category basis originally contemplated”. In making this recommendation, the Embassy had the concurrence of the British Mission here.

It was the Guatemalan Government’s original intention to terminate the expropriation of Axis properties in this country by September 10, 1945. This intention unfortunately has not been fulfilled, for diverse reasons which need not be explained in this despatch. Nevertheless, although the Guatemalan Government has not completed its expropriation [Page 348] program, it has carried it forward to a point where a large number of the spearhead properties have passed to the Guatemalan Nation. The Embassy continues to believe that the most effective way in which the Guatemalans can be encouraged and/or assisted in completing their program is for the Proclaimed List to be integrated with Guatemalan policy and requirements.

Since the Department apparently feels, on the other hand, that it is no longer practicable to follow this policy, and that the List for Guatemala must be reduced in November to a “hard core”, the Embassy has again revised its previous recommendations and formulated a suggested “hard core” list which it is hoped will satisfy both the desires of the Inter-departmental Committee on Proclaimed List and the realities of the local situation.

Perhaps the most serious criticism of the length of the Proclaimed List as it exists today for Guatemala is the fact that it contains far too many names the continued inclusion of which serves no directly useful purpose, except insofar as the Guatemalan Government may be morally assisted in the implementation of its program. Therefore, the Embassy’s proposed “hard core” list, which has met the approval of the British Legation in Guatemala, contains none of these names. Unfortunately, the British Legation here has not received the proposed “hard core” list from London formulated in reply to that jointly proposed by this Embassy and the British Legation, and contained in this Embassy’s despatch No. 144 of June 7, 1945,54 and therefore this Embassy is not informed with respect thereto. Nevertheless, it is the hope of both this Embassy and the British Legation here that the suggested “hard core” list transmitted herewith54 as Enclosure No. 1 to this despatch will meet the approval of the Inter-departmental Committee and that any differences which now exist between this new list and the British Government’s list mentioned in the Department’s airgram A–694 will not prejudice its acceptance.

The problem of determining a “hard core” in Guatemala is complicated by the fact that many of the firms included therein are of relative inconsequence individually, whereas it is equally clear that they are of great consequence as a group in relation to Guatemalan economy as a whole. Thus, the latest “hard core” list being suggested by the Embassy is still a long one (126 names), but it is difficult to see how it could be shorter without adversely affecting the Guatemalan Government’s program for elimination of Axis interests here as a whole.

There is also being transmitted herewith, as Enclosure No. 2, a copy of the Embassy’s note to the Foreign Office, No. 403, of October 30, 1945,54 which embodies the Department’s instructions to inform the [Page 349] Guatemalan Government of the action to be taken in reducing the Proclaimed List for Guatemala to a “hard core”. The Embassy does not yet know in what way the Guatemalan Government may react to the proposal to remove the last group of 51 names, the deletion of which the Guatemalan Government has resisted up to the present.

There are two names which the Embassy has not included in its note to the Guatemalan Government. These are the names of … (PL) and … (PL), concerning whom the Guatemalan Government has already stated it will have no objections were they to be deleted from our Proclaimed List. Therefore, the proposed list of deletions to be effected in November would be 192, since neither … are “hard core” cases.

With the deletion of 192 listings from the Proclaimed List in November, it would be reduced from its present 334 listings to 142, a reduction of better than 57%. Nevertheless, there are still sixteen names among the residual balance of 142 listings which cannot be classed as “hard core”, but the Embassy strongly urges for the following reasons that these names not be deleted from the Proclaimed List in November, unless the persons involved are repatriated to Germany before then.

. . . . . . . . . . . . . .

Excepting these 16 names which are not “hard core”, but which the Embassy and the British Legation feel should be retained in the Proclaimed List at least until the question of their status either as prospective deportees or as internees in the United States is resolved, the proposed “hard core” list resolves itself down to 126 names, which are listed in Enclosure No. 1 to this despatch. The case for deletion of the other names currently included in the List is, it is believed, adequately summarized in the Embassy’s Note No. 403 of October 30, 1945, marked Enclosure No. 2 to this despatch.

The Embassy will appreciate being informed of any changes in the “hard core” list which the Inter-departmental Committee may decide upon, far enough in advance of publication so that the Guatemalan Government may be appropriately advised, including the final determination to be taken with respect to the continued inclusion of the sixteen names mentioned in the body of this despatch.55

Respectfully yours,

For the Ambassador:
W. A. Hodgman

Commercial Attaché
[Page 350]

[On November 27, 1945, Cumulative Supplement 8 to Revision IX to the Proclaimed List of Certain Blocked Nationals was issued. By this action, paralleled by that of the British and Canadian Governments, 22 names were added and 2,721 deleted from that part of the Supplement which pertained to the other American Republics. See Department of State Bulletin, December 2, 1945, page 900.]

  1. Not printed.
  2. Not printed; it indicated that the Guatemalan Government had declined to concur in the elimination of 13 firms from category I of the Proclaimed List and regarded these as still subject to expropriation (740.00112A/5–2345).
  3. Not printed.
  4. Not printed.
  5. Not printed.
  6. On November 19, in airgram A–737, the Secretary of State informed the American Embassy in Guatemala that the Working Party of the Interdepartmental Committee on the Proclaimed List had approved for retention on the Proclaimed List for Guatemala all 126 names recommended in despatch 784 in addition to the list of 16 names on pages 3 and 4 of that despatch. All other names, with one temporary exception, were approved for deletion. (740.00112A EW/10–3045)