740.31112RP/3–1346: Airgram

The Ambassador in Venezuela (Corrigan) to the Secretary of State

A–95. Department’s circular airgram of March 4, 1946, 9:25 a.m.47 With publication on March 14 of Supplement No. 2 to Revision X replacement program in Venezuela will have been completed. All spearhead firms will have been eliminated through forced liquidation or reorganized so as to provide adequate guarantees of satisfactory future behavior. List will then consist of 38 names, classified as follows:

Liquidated spearhead firms 6
German individuals 14
Japanese individuals 9 (innocuous)
Persons of dual German-Venezuelan nationality 3
Firms still in business 2
Alternate listings of spearhead firms 4

Of the German individuals, seven are on list for proposed repatriation to Germany. The Japanese may be disregarded as constituting no threat to our economic security. All German and Japanese nationals are now subject terms Decree No. 176, nationalizing enemy properties (ref. despatch No. 8442 of February 21, 194647). The three persons [Page 1326]of dual nationality include one aged man, one young man of no present importance, and one middle-aged man (Von Jess) whose morale has been badly broken by the effects of listing. The firms still in business are Hacienda El Negrito, a coffee plantation now virtually abandoned, and Riase y Compañía (not considered a spearhead) which, owing to the death of its owner, Theo Valentiner, has ceased to be a problem.

Embassy’s recent success in achieving reorganizations of several problem cases, including name of formerly most powerful concerns in country which we have forced to accept terms, has renewed public respect for list.

When list is withdrawn as scheduled, it is believed there will be general recognition that its function has been fulfilled and completed.

Corrigan
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