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Volume #17 - 937.

CHAPTER IX

RELATIONS WITH THE SOVIET UNION AND EASTERN EUROPE

PART 2

RELATIONS WITH EASTERN EUROPEAN COUNTRIES

SECTION A

YUGOSLAVIA

SUB-SECTION II

RELEASE OF ASSETS

937.

DEA/614-F-40

Under-Secretary of State for External Affairs
to Under-Secretary of State, Department of the Secretary of State

CONFIDENTIAL

Ottawa, May 25th, 1951

Dear Mr. Stein:

We wish to refer to your letter of May lstt concerning the release of the assets of Austria, Czechoslovakia, Poland and Yugoslavia.

2. It would appear that there is little danger of undesirable publicity being given to a decision to release Yugoslav assets in view of your practice not to make a public announcement on proposed releases and of the recent assurance given us by the Yugoslav Minister in Ottawa that, should the release of his country's assets be approved, it is not his intention to give any publicity to the fact; he further stated that he would make our views known to his Government. Accordingly we see no objection to proceeding with the release of Yugoslav and Austrian assets without waiting for further consideration of the latest Italian proposal.

3. Although we have no very solid legal grounds for continuing to withhold the unrestricted release of Czechoslovak and Polish assets, we do not believe that cir­cumstances have materially changed since it was agreed that only limited releases, under certain conditions, of these assets would be permitted.

4. To date we have received no encouragement that the war damage and national­ization claims of Canadian citizens would be entertained by Czechoslovakia and Poland and, even though the two subjects are not related, in our view we should not make any special effort to ease the present restrictions.

A.D.P. HEENEY



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