740.0011 EW Peace/6–1147
The Secretary of State to the Chairman of the Senate Committee on Foreign Relations (Vandenberg)
My Dear Senator Vandenberg: You will recall that on April 15, 1947 the Acting Secretary, Mr. Acheson, wrote to you in connection with Italian property in the United States and the Treaty of Peace with Italy. In that letter it was indicated that the policy of the United States had been “firmly directed toward the release by this Government of Italian property controlled by it, whether blocked or vested. It is, therefore, contemplated that arrangements will be made for the unblocking and return of such property”.
The letter under reference was designed for inclusion in the record of the Senate dealing with the Treaty of Peace with Italy and, in part, released, during the course of your Committee’s hearings, to the public.
Discussions have now for some time been under way with an Italian Delegation which is presently in the United States. Procedures for the unblocking and the return of Italian property here have been discussed with the Italian Delegation and have, with the possible exception of certain drafting changes, been satisfactorily worked out. It appears, however, that further legislative action will be necessary in order to effect the return of such property, previously Italian, as has been vested by the United States Alien Property Custodian.
After conference with the Office of Alien Property, Department of Justice (the successor to the Office of Alien Property Custodian), and the Treasury Department, the Department of State therefore recommends the enactment, by the present session of Congress, of legislation which would enable the executive branch of this Government to enter into arrangements for the return of the vested property under reference. Should such legislation be enacted, the Office of Alien Property will have authority to make returns to Italy or to Italian nationals on exactly the same basis as returns are now authorized vis-à-vis non-enemy countries, such as France, Belgium, etc. I therefore commend to your attention and to that of the Congress the early enactment of legislation designed to accomplish this result.
It may be pointed out that the legislation will, in itself, not actually return Italian property, but will merely authorize the Office of Alien Property to enter into arrangements, safeguarding the interests of the United States, as well as contributing to the welfare of Italy and to the alleviation of the Italian burden under the Treaty of Peace, for the return of such property.
[Page 922]Because of the urgency of the matter this letter has not been cleared with the Bureau of the Budget, to which a copy is being sent.
While the attached joint resolution1 has been cleared in substance with the interested agencies, it may be necessary for certain language changes to be made prior to its enactment. These changes will be available the early part of next week.
Faithfully yours,