740.31112 RP/12–2245: Telegram

The Ambassador in Venezuela ( Corrigan ) to the Secretary of State

1106. The Foreign Minister97 confidentially informed me that publication of Hard Core list has immediately precipitated desire on other part of firms involved to come to terms with Embassy and it is his earnest hope that Embassy can arrive at early solution of these problems. He was informed that Embassy is already in conversation with the majority of such firms and that Embassy was disposed to receive through the Venezuelan Commission proposals for reorganization along lines which Embassy has already outlined to each of the firms. The Minister was very pleased and stated that he would lend his private influence to urging those Proclaimed List persons whom he knew personally to come immediately to agreement with Embassy. President of Venezuelan Commission has adopted same highly cooperative attitude.

The Minister stated he hopes that in the enforced reorganizations Embassy would temper justice in a manner which would avoid any serious dislocation to Venezuelan economy. He was informed that one of primary objectives of the reorganization was to require subject firms to integrate themselves into Venezuelan economy and place their control in acceptable Venezuelan hands and that Embassy would try to avoid any steps which would cause undesirable repercussions in the commercial and financial community.

[Here follows report on five individual cases.]

  1. Carlos Morales.