840.51 Frozen Credits/340: Telegram
The Minister in Lithuania (Norem) to the Secretary of State
[Received 12:10 p.m.]
164. I have the honor to report that in answer to an urgent request made at 10:30 p.m. last evening by the provisional Foreign Minister, I called upon him [her] to receive the formal protest against the freezing of credits. Miss Aveten Aite after declining interpreter and, after translating the letter (full translation follows in gray88), added very quietly: “Please disregard all of our protests. We do not act independently any more. We appreciate what Washington is doing more than we dare tell. People are listening and I cannot say any more.” I concluded that she had expressed the exact sentiments of all who count for the good of Lithuania and for the other two Baltic countries as well. While the Lithuanians would prefer to have their investments held safe until better times return, the Bolsheviks apparently are much annoyed and a trifle perplexed. They desire so earnestly to make the whole business of the transfer seem spontaneous on the part of these poor people. The freezing decree may possibly affect their instructions to the Seimas meeting today. … called informally also and explained that “advisers” in the Foreign Office could not understand our inability to accept the invitation to attend today’s meeting of the Seimas. He himself expressed deep appreciation of our Government’s understanding and treatment of the whole procedure. He added that the powers that be are considering the continuance of the three small countries as protectorates in order to better solve outstanding problems. Soviet control and direction is now almost complete. The text of the note presented is as follows:
The Lithuanian Government was greatly surprised when it learned that on July 15th, 1940 the Government of the United States of America issued an order No. 8484 by which all operations pertaining to the property of the Lithuanian State and citizens are prohibited without a permit.
On the basis of this order the Federal Reserve Bank of New York has up to this time not acted upon the request of the Lithuanian Bank of July 13th, 1940, to transfer to the account of the State Bank of the Soviet Union the gold which the Lithuanian Bank purchased from that Bank.
[Page 398]In depositing its capital with an American bank the Lithuanian Government showed confidence in the credit institutions of the United States of America. The Executive Order of the Government of July 15th, 1940 greatly injures Lithuania’s rights and interests and likewise causes great losses to the Lithuanian Bank.
The Lithuanian Government is forced to express its categorical protest against this illegal and baseless order of the Government of the United States of America which limits its rights to property which as property of a sovereign state enjoys immunity.
All responsibility for losses which may accrue to Lithuanian interests in connection with Executive Order No. 8484 of July 15th, 1940 will fall upon the Government of the United States of America.
The Lithuanian Government express, however, a strong conviction that the United States Government will annul the order of July 15th and assure that the gold which the Lithuanian Bank sold for an appropriate equivalent to the State Bank of the Soviet Union will be transferred to the latter.
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