852.5151/276: Telegram
The Counselor of Embassy in Spain (Thurston) to the Secretary of State
[Received August 28—12:14 a.m.]
753. Your 375, August 14, 2 p.m. Señor Negrín informed me today that I might convey to you the assurance that the Spanish Government assumes responsibility for the conservation of blocked peseta accounts awaiting dollar exchange.
I did not attempt to suggest or to elicit a definition of the scope of the responsibility thus assumed, and the Department may prefer to let the matter rest on the basis of a general assurance. On the other hand, as it is possible that the Government would not consider itself responsible for the loss of deposits in private banks (see my despatch No. X–59 of March 494) the Department may deem it advisable to attempt to obtain explicit assurance on this point or to have such deposits transferred to the Bank of Spain.
With respect to the general subject of the blocked accounts Señor Negrín stated that it is proposed to undertake their liquidation at an early date. He confirmed previous reports that Miles M. Sherover has been authorized to discuss the matter with American creditors. See my despatch No. X–187, August 7.94