800.515/12–1445: Telegram
The Acting Secretary of State to the Minister in Denmark (Davis)
399. Freezing of assets in Sweden of countries formerly occupied by Axis was fully considered during course of recent negotiations with Swedes on Safehaven matters. Dept had strongly favored such freezing as only satisfactory way in which to block and identify enemy assets which may have been secreted in neutrals through names of persons in liberated countries. Question however turned out to be time consuming problem incommensurate with dividends to be expected, Swedes were in opposition to such freeze in absence of acquiescence of countries concerned and several liberated countries [Page 920] had serious objection to freeze on grounds of incompatibility with previous relaxations of controls over their assets by neutrals. Matter was therefore dropped in agreement with Brit so far as Sweden is concerned. Assets of most formerly occupied countries in Switzerland and Spain however were blocked early this year assuming approval of countries concerned. Dept has no objection to Danish authorities requesting Swedes to freeze Danish assets Sweden if they feel that such action would facilitate Danish Safehaven program but Leg should not press Danes to take this action.