740.22112A/12–444
The Ambassador in Ecuador (Scotten) to the Secretary of State
[Received December 11.]
Sir: I have the honor to refer to the Embassy’s despatch No. 2292 of October 28, 1944,92 concerning Proclaimed List deletions, and to the Department’s airgram No. A–411 of September 1, 12:10 p.m., 1944, and the Embassy’s airgram No. A–428 of September 7, 2:00 p.m., 1944,93 concerning continued blocking of funds of persons and firms included in Group III of the general deletion plan for Ecuador as a condition for their removal from the Proclaimed List.
On September 5, 1944, the Embassy addressed to the Ministry of Foreign Affairs a note94 which requested a specific statement of the Ecuadoran Government’s attitude toward the question of continued blocking of funds of liquidated firms and departed Axis nationals proposed for deletion. A copy of the note is attached. The Embassy has now received a reply in which the Ecuadoran Government indicates its agreement and acceptance of the proposed conditions. The reply states that measures have already been taken by the Ecuadoran Government, in the form of Decree No. 291 of July 15, 1944, to assure continued blocking of the funds in question. A copy of this note, No. 74–DC–4 [9] of November 16, 1944, together with a translation, are also transmitted herewith.92
Ecuadoran Decree No. 291 was reported in the Embassy’s despatch No. 1768 of July 6, 1944.92 The decree provides that liquid blocked funds of persons included in the Proclaimed List shall be utilized for the capital of the National Bank of Development and the Provincial Banks; as guarantee for these funds, the Ecuadoran Government will issue bonds of one thousand sucres each, redeemable within a period of 20 years and bearing interest not to exceed six per cent annually. Article 4 of the decree makes the following provisions:
“The Government of Ecuador in agreement with the United Nations and when they consider that there is no longer a danger in delivering these funds, shall draw up a list of persons to whom the delivery relates and shall proceed to carry it out.
Mr. Hector Terneus, Director of the Blocked Properties Control, has indicated that the bonds and interest and amortization payments will be deposited in the blocked accounts of the Proclaimed List nationals. These will not be delivered to the owners until an agreement to that effect is reached with the United Nations, as provided in Article 4 of Decree No. 291.
[Page 1085]In the opinion of the Embassy, the Ecuadoran Government has satisfactorily met the conditions set forth for the deletion of the remaining names included in Group III of the Embassy’s despatch No. 1367 of April 13, 1944,95 and approved in the Interdepartmental Committee’s records of action of August 31 and September 4, 1944. The Embassy, therefore, has no objection to the deletion of these names, with certain exceptions noted below, in Cumulative Supplement No. 4 to Revision VIII. If these deletions are approved by the Department, the Ecuadoran Blocked Properties Control will be provided with a list of the persons and firms whose accounts are to remain blocked after deletion of their names from the Lists, in accordance with the terms of the Ecuadoran Foreign Office note of November 16, 1944.
In making a final review of Group III names, the Embassy has reached the conclusion that certain names formerly recommended for deletion in this group should, because of their close identification with totalitarian activities in Ecuador, be retained on the Proclaimed List at least until the cessation of hostilities in Europe. It is believed that deletion at this time of names as notorious as these might affect unfavorably the prestige of the List. It is therefore recommended that the following names be withheld from deletion:
[Here follows a list of names recommended for retention on the Proclaimed List.]
Respectfully yours,
Commercial Attaché