740.31112A/9–546

The Chargé in Venezuela (Dawson) to the Secretary of State

[Extract]
confidential
No. 9195

Sir: I have the honor to refer to the Department’s instruction No. 3471 of August 5, 1946,52 requesting a classification of former Proclaimed [Page 1328]List firms and individuals with respect to their suitability as trading connections for United States concerns.

The choice of names classified as merit deletions, enclosed with the Department’s instruction, is concurred in by the Embassy. Regarding the names included in the group of non-merit deletions, further consideration has been given them in the light of the revised criteria set forth in the memorandum enclosed with the instruction under reference. It is agreed that borderline cases, cloaking cases and unimportant political cases should not continue to be the subject of discrimination in connection with United States trade. This appears especially true in view of the fact that the Department of Commerce is no longer in a position either to enforce or police recommendations against trading with individual firms. However, it is not believed that firms formerly actively hostile to the United States during the war should be considered desirable trading connections in the future.

There is given below, accordingly, a list of firms which the Embassy considers politically undesirable as agents or distributors of American merchandise. In this list are included (1) residual Proclaimed List names, (2) certain firms and individuals included in Classification I–E of the enclosure to the Embassy’s despatch No. 6883 of January 3, 1945,53 and (3) certain individuals who were recommended for repatriation to Germany but who were not in fact deported.

In category (1) above, it will be noted that the names of Japanese have been omitted. This has been done because name of the Japanese in Venezuela has been commercially or, to the Embassy’s knowledge, politically important [unimportant?]. Their funds having been taken out of their control by the Venezuelan government, they are no longer in a position to engage in international trade. Moreover, those who have visited the Embassy since “VJ” day seem now to be more friends than enemies. In category (2) are given only persons who have been identified as Nazi Party members and who did not prior to the date of withdrawal of the Proclaimed List come to terms with the Embassy. Among those listed in category (3) are several persons who, because of commercial inactivity, were never included in the Proclaimed List.

It is evident that this disposition of former PL names creates an injustice in that no penalty is provided for Nazi Party members who were never included in the Proclaimed List. However, the problem is not a large one. Virtually none of such persons was in business for himself and many are no longer in Venezuela.

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In accordance with the Department’s instruction, the Embassy will consider its recommendations as being followed by the Department of Commerce unless notice to the contrary is received.

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Respectfully yours,

Allan Dawson