840.51 Frozen Credits/10666

Memorandum by the Special Assistant at the Embassy in Costa Rica (Desvernine)32

Report on Freezing and Other Control Measures in Costa Rica for the Month of May, 194333

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Expropriation of coffee.

Upon being advised of the terms of the Department’s airgram No. 399 of April 3, the Costa Rican Government proceeded to expropriate about 8,000 quintals of “frozen” coffee which had been produced or processed on enemy properties. Unfortunately, some of this coffee was produced on properties of Proclaimed List nationals which have not yet been expropriated, and it was necessary for this Embassy to bring again to the attention of the Junta de Custodia that the exportation of such coffee to the United States would not be permitted, inasmuch as the ownership of the producing property was the governing criterion. The Junta has agreed that coffee from properties of Proclaimed List nationals which have not been, and will not soon be, expropriated, will not be allowed to be exported. A major proportion of the coffee which has been expropriated, however, was produced on properties of Gmo. Niehaus & Company and Hubbe Hijos, which have also been expropriated.

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E. Desvernine
  1. Transmitted to the Department by the Ambassador in Costa Rica in his despatch No. 72 of June 4, 1943; received June 12.
  2. The portions of this monthly report on measures to control Axis-tainted properties and business transactions in Costa Rica have been omitted.