Office of the Historian

840.51 Frozen Credits/1958b: Telegram

The Secretary of State to the Ambassador in the Soviet Union (Steinhardt)

Washington, June 15, 1941—6 p.m.

803. In view of the unlimited national emergency76 the President issued an Executive Order on June 1477 freezing immediately all German and Italian assets in the United States and also the assets of all invaded or occupied European countries not previously frozen. In order to implement the control of these assets in this country and in view of the interrelationship of international financial transactions, the Executive Order has also been extended to the remaining countries of continental Europe. It is intended, however, through the medium of general licenses to lift the freezing control with respect to [Page 762] the neutral countries, including the Soviet Union, conditional upon the receipt of certain assurances from the governments of such countries.

It may be helpful to you to know that between the morning of June 16 and that of June 19 all transactions involving Soviet assets in the United States must be applied for by specific licenses which the banks have power to grant provided such transactions are of a normal business character. Beginning on the morning of June 19 general licenses will be available for all neutral countries, including the Soviet Union, provided assurances are given by the appropriate government and central bank that the transactions covered are solely for the benefit of neutral nationals and not directly or indirectly for the benefit of Germany, Italy, any invaded or occupied countries, or the nationals thereof. Under such general licenses notice must be given to the bank twenty-four hours in advance of any transaction exceeding $25,000, such notice to include information concerning the parties to, and the purpose of, the transaction. On all transactions below $25,000 similar information must be reported to the bank at the time such transactions take place. The acting party in all transactions must certify that such transactions are not for the benefit directly or indirectly of Germany, Italy, or any occupied country, or nationals thereof. If assurances upon which the granting of blanket licenses are conditioned are not given, all transactions must be on the basis of specific applications for licenses. If any assurances are violated, the general license will be immediately revoked.

Above information will be given to the Soviet Ambassador on June 16 by the Department in an aide-mémoire.78

Hull
  1. For the President’s proclamation of unlimited national emergency, No. 2487, May 27, 1941, see Department of State Bulletin, May 31, 1941, p. 654.↩
  2. Executive Order No. 8785; 6 Federal Register 2897. See also the White House press release of June 14, 1941, Department of State Bulletin, June 14, 1941, p. 718.↩
  3. Infra.↩