21 October 1946
Mr. Harold Glasser
Director of Monetary Research
Room 5000 U.S. Treasury Building,
The following report has recently been received from a reliable source in Italy. It is sent to you in the belief that it may be of interest.
The Ustascha organization (a Croatian fascist organization, headed by Ante Pavelic) removed funds from Jugoslavia estimated to total 350 million Swiss francs. The funds were largely in the form of gold coins.
Of the funds brought from the former Independent Croat State where Jews and Serbs were plundered to support the Ustascha organization in exile, an estimated 150 million Swiss Franks were impounded by British authorities at the Austro-Swiss frontier; the balance of approximately 200 million Swiss Francs was originally held in the Vatican for safe-keeping. According to rumor, a considerable portion of this later amount has been sent to Spain and Argentina through the Vatican's "pipeline," but it is quite possible this is merely a smokescreen to cover the fact that the treasure remains in its original repository.
For scanned copy see:Pavelic Papers