MINISTRY OF COMMERCE & INDUSTRY
D.O. No. 81 (2) -
E.T.(A)/43
New Delhi, the 4th December, 1954.
My dear Ambassador,
I refer to our discussions on the 30th September 1954 regarding the question of handing
back the assets of Dutch nationals which are at present lying vested in the Custodian
of Enemy Property, Bombay, and would like to put on record the following conclusions:
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1.
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(i) The Government of India have reconsidered their earlier proposal that they would deal
with 82½ % of the Dutch assets held by their Indian Custodian and that the balance
17½% should be pursued by the Netherlands Government with the Government of Pakistan
and have decided to drop the proposal. They now accept full responsibility for dealing
with all Dutch funds held by their Custodian of Enemy Property;
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(ii) The Government of India are prepared to release an amount of about Rs. 8,50,000 (Rupees
eight lakhs fifty thousand), being part of the assets, held by the Indian Custodian.
The other assets held by the Indian Custodian will not be released at present, owing
to the possibility of their representing properties which are, in reality, owned by
Germans;
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(iii) As regards assets of Dutch nationals, which are suspected to be beneficially German
owned, further consultations will take place between the Governments of the Netherlands
and India.
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2. As regards the procedure of releasing the Dutch assets, a devesting order will be
issued in each case after necessary verification and after the Netherlands Consul-General,
Bombay, has given the appropriate discharge to the Indian Custodian in respect of
the money in question. The devesting order will provide for the amount in question
to be credited to the Netherlands Trading Society, Bombay for transfer to De Nederlandsche
Bank.
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3. Further, it has been represented that, besides the assets referred to in the foregoing
paragraph, there are cases where Indian nationals owing money to Dutch creditors prior
to the outbreak of the war, failed to disclose their debts to the Custodian in time.
Unless any of those debts represent properties suspected to be owned by Germans, the
Government of India will be prepared to allow them to be settled direct between the
respective debtors and creditors and will also provide the necessary foreign exchange
for the purpose. A list of cases which are suspected to be German-owned, will be supplied
to you shortly.
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4. I would also wish to place on record the assurance which you gave in the course of
discussions that the Netherlands Government will not place any restrictions on the
early settlement of the remaining claims of Indian nationals against their Dutch debtors
and also on the release of the necessary foreign exchange for the purpose.
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5. I should be grateful to have your confirmation that this letter correctly sets out
the understanding reached between you and myself.
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6. The present Agreement shall enter into force on the date of receipt by the Government
of India of a note in which it is stated on behalf of the Netherlands Government that
the approval constitutionally required in the Netherlands has been obtained.
Yours sincerely,
(sd.) H. V. R. IENGAR
His Excellency Baron Floris van Pallandt,
The Netherlands Ambassador,
4, Ratendone Road,
New Delhi.