The Chargé in Ecuador ( Shaw ) to the Secretary of State
[Received May 20.]
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The following conclusions seem to be inescapable—The effectiveness of the Proclaimed List has diminished almost to the vanishing point. There is little to be gained by attempting to retain on the list the three remaining names that are admittedly Ecuadoran citizens. It is probable that the Ecuadoran Government either will arbitrarily unblock the funds not only of Ecuadoran citizens but also of many of the Axis nationals, or that it will actively press further for the concurrence of the United States in the latter action.
It is highly improbable that some of the few, if any at all, of the internees recently returned to Ecuador from the United States will be deported to their countries of origin. Should these individuals remain in Ecuador, as now seems likely, their influence will increasingly continue to be felt and the Government of Ecuador undoubtedly will increasingly tend to acquiesce to their demands for the unblocking of their funds and removing restrictions on their activities.
A note was prepared under authority granted in the Department’s telegram no. 176 of April 26, 7 p.m., and was delivered to the Foreign Office after careful consideration of the various factors involved with the idea in mind that some protest should be lodged against the unilateral action of the Ecuadoran Government in an effort to deter similar or more extensive action in the future; to set out the view of the Government of the United States as a matter of record; and, to indicate the desire of the United States Government to be consulted in each individual case before further action looking to the delisting of names or unblocking of funds and property of these individuals or firms should occur. There was a careful avoidance of intransigency in the note for the obvious reason that the Under Secretary for Foreign Affairs65 had made it clear that the Ecuadoran Government considers both the listing of Ecuadoran individuals and the blocking of their funds within the jurisdiction of Ecuador and completely a local matter, that it will not recede from this attitude, that it feels the proof of the dangerousness of most of the listed Axis nationals is very inconclusive, and that it will continue to press for the unblocking of the property and funds of these individuals.[Page 869]
Attached to this report is a copy of the Embassy’s note no. 98 to the Foreign Office referred to in the preceding paragraph, dated May 6, 1946.66 The British Legation concurred in the text of this note before it was sent and it has also drafted and delivered to the Foreign Office a similar note, a copy of which will be obtained and forwarded to the Department.
It is evident that this matter will continue to become increasingly embarrassing and it would be politic for the Government of the United States as quickly as possible to reduce to a minimum those listing or blocking activities upon which it will continue to insist.
It is respectfully recommended that the entire Proclaimed List for Ecuador be abolished as quickly as possible as it is practically ineffective at the moment and as its continuance would tend to increase the danger of loss of prestige. It is recommended that if this action occurs a further note be sent to the Foreign Office expressing the hope that the funds of Clemente Baquerizo will be continued to be blocked (providing that Resolution No. 90 may not at that time have been published in the Registro Oficial and that the properties may not have already been returned to him) and, that the funds of all other presently blocked persons or firms continue to be blocked until each individual case can be reviewed and a mutual agreement reached as to the advisability of unblocking, or at least until the United States may have an opportunity to present its arguments and any further information that is available. (See Department’s airgram no. 121 of April 16, 1946.66)
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