740.22112 RP/8–345: Telegram

The Ambassador in Ecuador ( Scotten ) to the Secretary of State

598. Re Dept’s 463, July 27. The British Minister discussed informally yesterday with the Minister of Economy the blocked properties situation with special reference to Article 11 of the decree dated July 11, 1945 reported to the Dept in my despatch 3268 July 1985 which, gives the Commission authority to return the properties to the Axis owners. The Minister of Economy indicated that he personally agreed with our point of view but that the President was somewhat undecided about the whole matter. The Minister stated that it would be of the greatest possible help to him if the British Minister and I could let him have a draft copy of any changes we wished made in the decree of July 11. He did not desire this as a formal note and indicated it need not even be signed. He explained that if he had this he could talk to the President in definite terms and he felt that possibly we could succeed in having the decree modified as we desired.

I believe the Minister’s suggestion to be practical as I think this Govt is in some doubt as to exactly how we wish the matter to be handled. I recommend, therefore, that the Dept study the decree and send me either by telegram or airgram at the earliest possible date a redraft of any articles in the decree it considers objectionable. I trust the Dept will expedite this matter as I am apprehensive that at any time the President may issue a decree authorizing the return of some of these properties to their Axis owners.

  1. Not printed.