851.51 FC 51/11–1747
The French Ambassador (Bonnet) to the Secretary of State
Mr. Secretary of State: For some time now, the French Government has been seeking to mobilize all the resources at its disposal in order to use them in reviving the French economy. It desires to take every measure that will enable it to effect this mobilization as completely and quickly as possible, so as to make its full contribution at this time when the sixteen nations represented at the Conference of Paris have just submitted their proposals for a program for the economic recovery of Europe and for assistance from the United States during the next few years.
Under present French law all French citizens, whether private individuals or companies, residing in France or in the French overseas territories, must declare to the French Government all their assets abroad, including assets in the United States.
Under an agreement between the French Minister and the United States Secretary of the Treasury, a procedure has been set up whereby these assets may be exempted from the restrictions imposed by the Foreign Funds Control Office upon presentation of a certificate issued by the French Government. Unfortunately these arrangements have resulted in the declaration of only part of the assets in the United States that are thought to be owned by French citizens, and supplementary measures must be taken to mobilize these assets completely and make the corresponding dollars available for the recovery of the French economy.
It is possible that the United States Government may not have considered itself in a position to give the French Government the names of French citizens owning assets in the United States, because this would violate the confidential nature of the information obtained on this subject.
[Page 800]Consequently, the French Government has carefully examined various plans whereby the mobilization of the assets in question might be effected without disclosing any confidential information. As the first step toward that end, the competent departments of the French Government have prepared and are about to issue a supplementary decree providing for the immediate, automatic transfer to the French Government of title to foreign assets consisting of current accounts receivable, claims, securities, gold, and bank notes, in a number of foreign countries, including the United States, and now belonging to French citizens residing in France or in the overseas territories. The French Government thinks that the mobilization of these assets could be greatly facilitated through joint action of the Government of the United States and the French Government, and to that end it proposes a program of joint action that would comprise the following principal measures:
- (1)
- Under this proposal the President of the United States, acting through the competent United States government department and by virtue of the Trading With the Enemy Act,2 would order any person in the United States holding assets that belong to French citizens residing in France or in the French overseas territories to transfer those assets to a representative of the French Government. It is understood that this order could be carried out without revealing the names of the present owners of the assets, thereby preserving the confidential nature of the operations which made the preparation of the list of assets possible. It was pointed out to me that the Presidential order could be put into effect through simplified procedures which would make its prompt execution possible.
- (2)
- The French Government would agree with the Government of the United States to take such measures as might be considered necessary for the protection, if need be, of the United States interests by reason of the possible portion of enemy interest in such assets.
- (3)
- The present owners could claim an indemnification in francs under French law now in force. The French Government would also agree to pay in dollars such legitimate claims to these assets as might be submitted by creditors of the present owners in the United States.
I wish to stress two aspects of this proposal which seem particularly important. In the first place, the proposal relates only to assets in the United States owned by French citizens residing in France and does not affect other assets which any other persons might possess in the United States. Furthermore, the proposal would not result in the seizure or confiscation of assets without compensation, since the present owners could claim reimbursement in francs under the provisions of the French laws in force.
I am informed that the implementation of the foregoing joint-action program would result in quickly placing the dollar assets of French [Page 801] nationals at France’s disposal, so that they might be used in reviving the French economy. The rapidity with which the full benefit of this program could be obtained would, of course, be increased if arrangements could be made to open a credit through the Export-Import Bank or some other competent American governmental department on the basis of security or a pledge relating to the assets that would be transferred to the representatives of the French Government.
I have the honor to submit this program for joint action to the Government of the United States for examination as a group of practical measures designed to aid French recovery and help to re-establish French production in such a way that France may make its most effective contribution to the expansion of a free world economy, which is one of the common objectives of our two Governments.
I am happy to have this opportunity to renew to Your Excellency the assurances of my very high consideration.