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DIARY
Book 216
October 5 - October 10, 1939
-BBook
Page
216
379
Budget
Summation of budget: new policy - HMJr's memorandum
to FDR - 10/10/39
-CChina
Five-year program of anti-malaria work in Yunnan
Province: memorandum forwarded by Chen - 10/5/39
a) HMJr's interest will be mentioned in State
Department's release at proper time - 10/9/39
Universal Trading Corporation: Hecht's (Rudolf)
counsel, Jerome I. Ziegler, wishes HMJr's
deposition: discussion at 9:30 meeting - 10/6/39
a) Hecht letter and Foley reply - 10/6/39
5
303
153,279
185
-EElectric Current
Government Requirements: Graves' memorandum - 10/9/39
287
-HHatch Act
Cases of Mrs. Banister and Mrs. Ross discussed at
9:30 meeting - 10/6/39
152
-MMonetary Study
To be discussed by HMJr and Wagner (Senator, New York) 10/5/39
55,269
-W-
Wagner, Robert F. (Senator, New York)
See Monetary Study
War Conditions
Anti-Smiggling Act:
Foley memorandum - 10/6/39
a) Copy sent to FDR
102
134
Bank for International Settlements:
French participation in future discussed in Bullitt
memorandum - 10/10/39
Belgium:
See Germany: British Blockade
360
W - (Continued)
War Conditions - (Continued)
Business situation for week ending 10/7/39:
Book
Page
216
324
Haas memorandum
Coal used by Tennessee Valley Authority:
Procurement memorandum - 10/10/39
Coast Guard:
353
Cryptographers (civilian): Army offering higher pay 10/6/39
145
Colt's Patent Fire Arms Manufacturing Company: See
Vinson-Trannell Act
Consolidated Aircraft Corporation: See Vinson-Trannell
Act
Credits to Belligerents (90-day Clause): See War
Conditions - Neutrality Act
Exchange market resund - 10/5/39
2,213,381
Financing, Government:
Bailie-Burgess-Bell financing program - 10/5/39
66
a) Federal Reserve Board approves
Discussion by HMJr, Harrison, Bailie, Burgess, and
Sproul - 10/6/39
169
Possible Treasury note offering: Hadley memorandum 10/7/39
Conference; present: HMJr, Hanes, Duffield, Bailie,
Bell, Haas, Hadley, and Murphy - 10/9/39
a) Conversation with Harrison
b) Conversation with Eccles
c) HMJr reports FDR's reactions
Foreign Governments, Accounts for (in connection with
214
224
225
245
253
purchasing):
Harrison (George) tells HMW Eccles thinks all
steps taken would have Board's approval - 10/5/39
57
Publicity feature discussed in Cochran memorandum 10/6/39
189
Germany:
British Blockade: Daladier reports to Bullitt receipt
of "insulting and bellicose notes" by Belgian,
Dutch, and Swedish Governments - 10/4/39
70
White memorandum - 10/5/39
89
a) Gold holdings and stocks and wolfram stock:
transfer for safekeeping discussed
Capitalism weakened by national socialism:
Trade delegation expected in Moscow on October 7:
American Embassy, Berlin, report - 10/5/39
Inflationary fears reported in Kirk memorandum 10/7/39
100
217
Gold:
Treasury must continue policy of purchasing only upon
delivery in New York - 10/5/39
Government Bond Market:
Current Developments: Haas memorandum - 10/10/39
69
363
(Continued)
War Conditions - (Continued)
Great Britain:
Sterling: Knoke and Cochran discuss rise - 10/5/39
Canadian securities: Chancellor of Exchequer's
statement concerning - 10/5/39
Economic war efforts, coordination of:
Prime Minister discusses - 10/9/39
Jewish Medical Students:
Book
Page
216
4
64
291
Passport situation for return to Scotland discussed
by Ickes and HMWr - 10/9/39
Latin America:
General problems in view of war covered in Cotton
memorandum - 10/10/39
Brazil:
Cochran memorandum giving reswar of opening of an
220,377
385
account for Bank of Brazil as fiscal agent for
the Government - 10/6/39
Liberia: Resund of steps taken concerning Liberian
proposal to purchase United States currency
(silver) - 10/9/39
Netherlands:
179,212,
307,375
336
See Germany: British Blockade
Neutrality Act:
Weak link: Charters to American ships replacing
British ships withdrawn for war service and
loaded by British owners -- Harris calls HMJr's
attention who in turn calls Hull's (See Book 214,
page 56)
a) Hull's answer - 10/4/39
Credits to Belligerents (90-day Clause):
Attorney General concurs in Treasury's legal
conclusions concerning short-term credit
87
transactions under Johnson Act and existing
Neutrality Act - 10/6/39
Purchasing Missions: See Foreign Governments,
Accounts for
of
Radio Communications:
Federal Communications Communication and Federal
Bureau of Investigation jointly to supervise 10/6/39
196
20G-A
142
Railroads:
Report of meeting of Atlantic States Shippers
Advisory Board - 10/7/39
a) No car shortage nor congestion at any ports
210
Ship Movements:
Neutrality Act weak link: Charters to American ships
replacing British ships withdrawn for war service
and loaded by British owners - Harris calls HMJr's
attention who in turn calls Hull's (See Book 214,
page 56)
a) Hull's answer - 10/4/39
87
(Continued)
War Conditions - (Continued)
Book
Page
Ship Movements:
Raeder, Admiral of German Navy, tells American
Attache, Berlin, of proposed attack on
SS IRIQUOIS designed to create antagonism against
Germany - 10/5/39
a) Progress of SS IRIQUOIS discussed at 9:30
meeting - 10/6/39
b) HMJr asks FDR to "have every square mile
flown over by airplanes in advance" - 10/9/39
Cargo Manifests: Harris discusses Skinner Plan used
during last war - 10/6/39
Silver: See Liberia
Strategic War Materials:
Manila fiber (hemp): Rise of prices noted in
Procurement memorandum - 10/5/39
Quicksilver: White memorandum - 10/7/39
216
96
160
282
159,189
1
207,383
Surplus Commodities:
Wheat sales, 9/26-10/3/39
276
Sweden:
See Germany: British Blockade
Tennessee Valley Authority: See Coal
U.S.S.R.:
German trade delegation expected in Moscow on
October 7: American Embassy, Berlin, report 10/5/39
100
Vinson-Trannell Act (Naval Parity):
Helvering memorandum on closing agreements - 10/7/39
Wheat: See Surplus Commodities
215,305
TREASURY DEPARTMENT
PROCUREMENT DIVISION
OFFICE OF THE DIRECTOR
NCT
WASHINGTON
October 5, 1939
MEMORANDUM FOR THE SECRETARY
On September 21st proposals were issued covering requirements of
manila fiber (hemp) to be opened October 23rd.
This afternoon a joint letter from the Assistant Secretary of War
and the Acting Secretary of the Navy was received, requesting that
inasmuch as the price of hemp has risen considerably, that this
proposal be cancelled.
In accordance with this joint request, notices have been sent to
those who were furnished with proposals to the effect that they
have been cancelled.
Hair
Director of Procurement
As
TREASURY DEPARTMENT
11/11
INTER OFFICE COMMUNICATION
DATE October 5. 1939.
TO
Secretary Morgenthau
FROM
Mr. Cochran
The foreign exchange market was quiet today. Sterling did not maintain
the high rate which it reached yesterday and opened in this market 4.04-3/8.
later rising to 4.04-5/8, and eased off to close at 4.04.
With regard to my report of yesterday relative to what action the British
Control would take if sterling remained above 4.04, the Federal Reserve Bank of
New York reported to us that some of the large banks last night sent cables to
London which contained bids for approximately 1347,000 at the official rate.
The bids were accepted by the Control and the price of the sterling to the purchasers was 4.04-1/2. The rate of 4.04-1/2 comprises 4.04 for the fixed price
and about # charge which is made by the London authorized dealers. We under-
stand that when banks wish to purchase sterling from the British Control, it is
necessary that this inquiry reach the Control before 3 P.M. London time in order
for it to receive consideration. The fact that the Control sold sterling today
does not necessarily imply that they have adopted this practice as a matter of
policy.
Reporting banks in New York and the Federal Reserve Bank reported sales
totaling L680,000 from the following sources:
Commercial concerns
Foreign banks (Europe, South America and Far East)
Fed. Res. Bk. (L50,000 for Sweden)
Total
L 276,000
L 354,000
L 50,000
L 680,000
Purchases of sterling amounted to 445,000, as indicated below:
L 366,000
By commercial concerns
By foreign banks (Near East and Europe)
Total
L 49,000
L 415,000
The Bank of Latvia purchased 180,000 belgas in this market.
The National Bank of Belgium sold to us $2,960,000 gold from their ear-
marked account.
The Banco do Brazil paid $3,000,000 to the Federal Reserve Bank of New
York for conversion into gold which transaction was effected today. After dis-
cussion with the Federal Reserve Bank of New York as to how the account of Banco
do Brasil was to be opened, that is as a straight central bank account or as a
fiscal agency of the United States account, it was decided that the Federal
CONFIDENTIAL
-2-
3
Reserve Bank of New York open a fiscal agency account and that they would take the
necessary steps with their Board of Directors and the Federal Reserve Board to open
a regular central bank account. When this has been done the gold is to be transferred
to this regular central bank account in the name of the Bank of Brazil.
Gold valued at $60,000 was shipped from Canada to the National City Bank of
New York and $50,000 from England to the Bank Belge pour 1' Etranger, New York.
We made two purchases of silver today totaling 200,000 ounces in the New York
market under the Silver Purchase Act.
16mg
CONFIDENTIAL
TREASURY DEPARTMENT
4
INTER OFFICE COMMUNICATION
DATE October 5, 1939
TO
FROM
Secretary Morgenthau
Mr. Cochran
At 12 noon Mr. Knoke telephoned to ask whether we had been discussing
in the Treasury the rise in the pound sterling. He wanted to know whether
the Treasury would be as uneasy over a 4.10 rate as over a 3.07 rate. That
is, were we looking for an entirely orderly rate? He said that in ordinary
times he would bring such sharp fluctuations as were taking place today to
the attention of Bolton of the Bank of England by a telephone call. I suggested
that this subject should not be brought up from our side. We certainly did not
want to protest against this rise in sterling. It remains to be seen whether
the British will permit the open rate to go above the official rate or whether
the British will sell sterling to bring the market rate down. I did not think
that we should take the initiative in suggesting any ironing out of fluctuations.
There is much experience to be passed through yet before the rate of sterling,
and the policy of the British control, may be determined along anything like
definite lines.
MM
CONFIDENTIAL
5
THE
Carlton
WASHINGTON, D. C.
October 5, 1939.
The Honoable Henry Morganthau, Jr.
Secretary of The Treasury,
Washington, D. C.
Dear Mr. Sebretary:
In reference to our conversation
yesterday concerning medical aid to China I take
pleasure in enclosing herewith for your kind attention a copy of a memorandum on "Five Years Program
of Anti-Malaria Work in Yunnan Province recently
received through the Chinese Embassy.
With highest regards,
then
Yours truly,
COOF
Memorandum on the
6
Five-year Program of Anti-Malaria York in Yunnan Province
The so-called Changehi which proves in general to be subter-
tian malaria (See No. 21 of Appendix 1) has a remote history in
the province of Yunnan. It was definitely referred to in literature written as long ago as 227 A.D. (see No. 21 of Appendix 1).
Some localities of the province infected with the disease in a
state of hyperendemicity as shown by the spleen index ranging
from 50 to 100 are very often encountered (see No. 21 of Appendix
1 and Appendix 2). The disease has not only caused a high mor-
bidity and mortality but also costed the province very seriously
in the social and economical condition. Evidences of the evil
and devastating effect of the disease are many: of them the vast
area which remains uncultivated within the regions highly infected
with malaria is one of the most striking features. This has
attracted the attention of both the Central and Yunnan Governments.
As a result, a fund of 1,824,000 in Chinese National Currency
(see Appendix 3) has been recently sanctioned by both Governments
for a five-year program of anti-malaria work in the province.
To set on foot the new work, an Anti-malaria Committee (see appendixes 4 and 5 ) under the Yunnan Provincial Government which
consists of nine members, four from the National Health Adminis-
tration of the Central Government and five from the provincial
-2-
7
Government, has been organized. On August 2, 1939 the Committee
had its first meeting, in which the organization of the AntiMalaria Corps as well as of the Institute for Malaria Research
directly under the Committee was passed among a number of other
proposals (see Appendixes 6 to 10).
The budget for the work of 1939, the first year of the five
year program is NO$220,000 (see Appendix 3), which is fixed and
will be appropriated by the Central Government. In order to win
the people's confidence and to leave a permanent anti-malaria work
after the five-year period, the Committee stressed the point that
the malaria control work by means of anti-larva measures and
treatment of patients should be simultaneously carried out with
research and survey. Therefore it was passed at the meeting that
in the first-year program, starting from August to December, 1939,
four Anti-Malaria Stations will be established under the Anti-
Malaria Corps. The total annual budget for the Anti-Malaria Coros
is No$190,100--$95,100 as capital expenses and $95,000 as running
expenses, while the annual total budget for the Institute for
Malaria Research is NO $29,900, of which $15,000 is for capital expense
and $14,900 as running expenses, making a grand total of NO$220,000.
The capital expenses mentioned above are limited only for local
purchases.
-38
In weighing the activities to be undertaken by the
Institute for Malaria Research, as specified in Article 2 of
Appendix 9, and the work of the Anti-Malaria Corps which covers
a very large area, it is much to be feared that the sum mentioned
above may be too small to carry out the work scientifically
and extensively. For this reason, the meeting passed a resolution to send an application to the Government of United
States, the Rockefeller Foundation and the League of Nations
for financial and technical aids.
with the primary success of cinchona platation at Ho-kou
( see Appendix 11) we here request the help of the Government
of United States by sending us:
(1) one expert on the said plantation, one malariologist,
and one sanitary engineer on mosquito control with
Chinese assistants to be engaged locally;
(2) the necessary instruments for surveying and mosquito
control;
(3) anti-mosquito oil, Paris green and quinine;
(4) autobile and lorries, and
(5) ten sets of simple laboratory equipments for AntiMalaria Stations.
The engineer is requested to work in collaboration with the
-4-
9
divisions of Sanitary Engineering and Chemotherapeutics of the
Institute for Malaria Research and a malariologist, preferably
one with experience in entomology, to be attached to the
Division of Entomology (see Appendix 9). The salaries and
travelling expenses of the experts and assistants are to be paid
by the Government of United States. As to the material aid
mentioned in (2) to (5), amounting to US$131,000, we request
such aid to be given in material rather than in cash ( see
Appendix 12).
We request the Rockefeller Foundation to send us:
(1) experts and assistants at Foundation's expenses to work
in collaboration with the Divisions of Epidemiology and
Entomology of the Institute for Malaria Research (see
Appendix 9),
(2) laboratory equipments, books and journals amounting to
US$26,300 (see Appendices 13 to 15) which due to the
restriction of foreign exchange at the present time
it is highly hoped may be appropriated in materials
instead of cash, and
(3) to grant to the research program which is planned to
last for three years an annual appropriation of US$25,000
for three years towards the housing of foreign experts,
for three years towards the houseing of foreign experts,
salary of Chinese assistants, purchase of supplies,
-5-
10
travelling and other maintenance expenses.
In our regular collaboration with the League of Nations,
we will continue to ask for experte for anti-epidemic work,
including a malariologist for anti-malaria work, along Yunnan Burma Highway. We hope the League will send us an expert on
malarial control to work in collaboration with the AntiMalaria Corps (see Appendices 7 and 8).
APPENDIX 1
11
List of the Important Literature on Malaria
and Anopheles in China
1. Caseneuve, L'Mivernation des mostiques dans la Chine du
Nord. Bull. Soc. Path. Exct. 3:155-159, 1910.
2. Chung, H. L. and Liu, Y. Y. Collection of mosquitoes in
South China, with a note by C. U. Lee, Lingnan So. J., 7:
401-71, 1929.
3. Coggin Brown, J., Contributions to the fauna of Yunnan based
on collections made 1909-1910. Part 5. Bibionidae, Mycetophilidae and Anopheline. Record Ind. Museum, 6:31, 1911.
4. Faust, E. C., Appreliminary check-list of the mosquitoes of
the Sino-Japanese areas. China M. J. 40, 142-43, 1926.
5. Faust E. 0. Mosquitoes in China and their potential relation-
ship to human disease. J. Tron. Med., 32: 133-37, 1929.
6. Feng, L. C. The larvae and pupae of the North China species of
anopheles; their structure and breeding habite. Nat. M. J.
China, 17: 493-512, 1931
7. Feng, L. C. Investigations on malaria and its transmission in
Amoy, Fukien province, South China. J. Trop. Med, 35: 198-
202, 214-21, 1932.
9. Feng, L. 0. Notes on Some Mosquitoes Collected from Shantung
Province, North Ohina. Chi. Med. J. 49-:359-65, 1935.
8, Feng, L. C. A brief mosquito survey in some parts of Central
Obina, Chinese M. J., 47: 1937-58, 1933.
10. Feng, L. C. The Present Status of the Knowledge of the
Mosquitoes of China and their relations to Human Disease.
Chi. Med. J. 49:1183-1208, 1935.
11. Feng, L. C. Malaria and its Transmission in Kwangsi. Chi.
Med. J. 50:1799-1814, 1936.
12. Feng, L. 0. A Personal Communication dated Feb. 16, 1937
concerning the two species A. koreicus and A. sineroides
collected by him from Mo Kan Shan, Chekiang.
13. Gasohen, H. Recherches entomologique dan la prevince du
Yunnan. Bull Soc. Med. Chir. Indochine 12: 873-982, 1934.
14. Gaschen, H. Faune entomologique des voies d'acces au Yunnan.
Bull Soc. Path. Exct. 28: 194-198, 1935.
15. Jackson, R. B. The Anophelines of the Colony of Hongkong.
Trans. 9th Congress F.E.A.T.M. 2: 27-36, 1934.
16. Jackson, R.B. Annual Report of the Work of the Malaria Bureau
for the year 1933, Medical and Sanitary Reports, Hongkong, 1934.
17. Jeffreys and Maxwell Diseases of China, 1929.
18. Khaw, O. K. Chronic Sub-tertian Malaria. Cage with high
eosinophilia; notes on various methods of treatment. Chi.
Med. J.33:14-17, 1919.
-2-
12
19. Khaw, O. K. and Kan, H. C. Some Observations on the Prevalence
of Malaria in Nanking and its Vicinity, Chi. Med. J. 48: 109 123, 1934.
20. Lee, C. U. A Survey of the Mosquitoes and their Breeding Habits
in the Amoy Region. Marine Biol. Assoc. China, Annual report,
1: 75-77, 1932.
21. Ling, L. C., Liu, K. B. and Yao, Y. T. Studies on the 80-
called Changeh'1. Part II. Changeh'1 in Yunnan. Chi. Med.
J. 50: 1815-1828, 1936.
22. Liu, S. H. Plaxma acid-base equilibrium in malaria. Chi. J.
Physiology, 2:151-156, 1928.
23. Ling, L. C. and Yao, Y.T. Morphological variations and abnor-
malities of the larvae of A. hyrcanus var. sinensis collected
in Nanking area. Proceedings of the Third Annual Meeting of
the Chinese Society of Pathology and Microbiology, April 1-8
1937. Also in Chinese Med. J., Suppl. 21 539-543, 1938.
24. Meleney, H. E., Lee, C. U. and Chung, H. L. A preliminary
survey of the anopheline mosquitoes of the Peking area. China
Med. J., 41:509-512, 1927.
25. Meleney, H. E., Lee, C.U., and Yang, C.P. Experiments with
anti-mosquito measures at Yenching. Chi. Med. J., 42:725737, 1928.
26. Necheles, H. The influence of humidity on the habits of
Anopheles maculipennis. (Abstract) Abs. Scien. Papers 6th
Congress, F.K.A.T.M. 1935.
27. Riley, W.A. The anopheline mosquitoes of China, Lingnan Sci.
J., 11:175-191, 1932.
28. Riley, W.A. Anopheline mosquitoes from the Island of Hainan,
China. Lingnan S01. J., 11: 468, 1932.
29. Robertson, R.C. and Hu, S.M.K. Mosquito control. China Jour.
20:344-356, 1934.
30. Tung, C.L. The effects of simultaneous administration of
digitalis and quinine on the cardiac mechanism in articular
flutter. Chin. Med. J. 47: 973-978, 1933.
31 Yang, S.C. Difference in reticulocyt behavior in anemia
from Malaria and in pernicious anemia. Soc. Exp. Biol. Med.
Proc., 26: 417-418, 1929.
32. Yang, C.P. Observations on the incidence of Anopheles in a
rural area outside Peiping and on the conditions of Anopheles
breeding, Nat. Med.J. China, 17: 513-520, 1931.
33. Yao, Y. T. and Wu, C.C. One year's obs rvation of Anopheles
hyreanus var. sinensis in Nanking, 1933. Trans. 9th Congress
T.R.A.T.M., 2:3-26, 1934.
36. Yao, Y. T. and Ling, L. C. Epidemiological study of malaria in
Nanking, Trans. 9th Congress F.E.A.T.M., 2: 281-297, 1934.
34, Yao, Y.T. and Wu C. C. Anti-larval measures by use of paris
green in selected area of Nanking. Trans. 9th Congress F.E.A.F:4.
2:213-26, 1934
-335. Yao, Y.T. and Sun, C. J. Field experiment; comparative
study of various remedies. Trans. 9th Congress F.E.A.T.M,
13
2:231-297, 1934.
36. Yao, Y.T. and Ling, L.C. Epidemiological study of malaria
in Banking, Trans. 9th Congress F.E.A.T.M., 2:551-563, 1934.
37. Yac, Y. T., Ling, L.C. and liu, K.B. Studies on the so-called
Changch'1. Part 1. Changeh'1 in Kweichow and Kwangsi border.
Chi. Med.J., 50:726-738, 1936.
38. Yao, Y.T. and Wu, C.C. Some abnormalities of the morphology
of the male hypopygia of A.hyroanus var. sinensis Wied. in
Nanking. Peking Nat. Hist. Bull., 11:27-34, 1936.
39. Yao, Y.T. and Ling, L.C. The importance of A. hyrcanus Var.
sinensis Wied. as malaria carrier in China, based on the
studies of its blood meal and maxillary teeth indes. Peking
Nat. Hist. Bull., 11: 191-198, 1937.
40 Yao, Y.T. and Ling, L. C. study of mosquito fauna in south-
western Ohina especially in the provinces of Kweichow and
Yunnan, Part 1. Tribe Anophelini. Jap. J.Exp., 15:121-136, 1937.
41. Yao, Y.T. and Ling, L. C. Notes on the comparative morpholo-
gical study of three different types of egge laid by A.
42.
Hyroanus var sinensis in Nanking. Trans. 10th Congress
F.E.A.T.M. 1938 (2) press).
Zia, S.H. and Faust, E.C. Results obtained from the inoculation of human malarial parasites into experimental animals
including those subjects to provocative treatment. Revista
di Malariology. 7:301-3, 1928.
14
Appendix 2
Map Showing the Location of Anti-malaria
Organization in Yunnan Province
AM
W
15
Appendix 3
Distribution of the Appropriation from the Central
Government and Yunnan Provincial Government for the
Five Year Program of Anti-Malaria Work in Yunnan
:
1st
2nd
3rd
4th
5th
otal
: Central
: Gov't
:60,000
60,000
40,000
Prov.
Gov't
0
0
0
0
0
0
0
160,000
GRAND TOTAL
0
: Central
: Gov't
: 160,000
; 304,000
: 200,000
; 100,000
:
Year
: Running Expenses
Prov.
Gov't
0
Total
Prov.
; Central
: Gov't
:
Capital
Gov't
: 220,000
: 364,000
; 240,000 200,000
; 100,000 300,000
0
0
0
: 68,000
200000
300000
332,000
; 832,000
832,000
i 68,000
332,000
: 992,000 832,000 ;
1,824,000
16
Appendix 4
Regulations Governing the Organisation of the AntiValaria Committee in Yunnan
Article 1
The Yunnan Provincial Government, for purpose of facilitating antimalaria work, organizes the Yunnan Anti-Malaria Committee(herein-
after referred to as the Committee) in accordance with the cooperative plan of promoting health work in Yunnan between the Central
and Provincial Governments. The Anti-Malaria Corps shall be re-
sponsible for conducting field work in malaria control.
Article 2
The Committee shall be composed of nine members, as follows:
1) Four members designated by the Yunnan Provincial Government.
2) Four members designated by the National Health Administra-
tion.
3) Director of the Yunnan Provincial Health Administration.
Article 3
The Anti-Malaria Corps shall be responsible for carrying out the
resolutions of the Anti-Malaria Committee. The Committee shall
recommend the chief and senior technical personnel of the AntiMalaria Corps to the Yunnan Provincial Government for appointment.
Article 4
The Committee shall be responsible for the following:
1) Plan of anti-malaria work in the whole province,
17
-22) Directing the anit-malaria work from a technical standpoint,
3) Examining into the work according to the anti-malaria
program,
4) Receiving, distribution and custody of anti-malaria funds
provided by the Ministry of Interior and the Yunnan
Provincial Government.
Article 5
The Committee shall designate one member each from the represents-
tives of the Yunnan Provincial Government an the Ministry of
Interior and the Director of the Yunnan Provincial Health Adminis
tration to form a Standing Committee to carry out the routine
activities.
Article 6
office regulations of the Committee shall be separately drawn up.
Article 7
The present regulations shall become effective from date of
promulgation.
18
Appendix 5
Name List of Members of the Anti-Malaria Committee in Yunnan
Members:
Dr. P. Z. King, Vice Director of the National Health Adminis-
tration of the Ministry of Interior, Central
Government.
Dr. F. F. Tang, Director of the National Epidemic Prevention
Bureau, National Health Administration.
Dr. T. F. Huang, Prof. of Public Health, National Medical
College of Shanghai
Dr. Y.T. Yao, Head of the Department of Parasitology, Central
Field Health Station, National Health Adminisstration.
Mr . B. T. Lee, Commissioner of Civil Affairs, Yunnan Provincial Government
Mr. P. H. Chang, Commissioner of the Bureau of Reconstruction
Yunnan Provincial Government
Mr. T. 3. Loo, Commissioner of the Bureau of Finance, Yunnan
Provincial Government
Mr. O. M. Miao, Manager of the Yunnan Provincial Rank
Dr. H. Y. Yao, Commissioner of the Yunnan Provincial Health
Administration
Standing Committee
Mr. C. M. Miao
Dr. H. Y. Yao
Dr. Y. T. Yao
Appendix 6
Chart Showing the Organization of Anti-Malaria Work in Tunnan
Yun-haien Station
Central Government
Shun-ning Station
Anti-malaria
Corps x
Bze-man Station
Wing-erh Station
Yunnan Provincial
Government
Anti-malaria
Committee
Division of Epidemiology
Division of Entomology
Institute for
Division of Sanitary Engineering
Malaria Research
Division of Chemotherapeutics
Division of General Affairs
x
The four Stations seen in the
Chart are to be established
in the first year but more
stations will be extended to
the rest of the endemic districts in the succeeding years.
Training Class
Appendix 7
20
Regulations Governing the Organization of the Anti-Malaria Corps
in Yunnan
Article 1
The Anti-Malaria Corps of the Yunnan Provincial Government (herein-
after referred to as the Anti-Malaria Corps) shall be organised aocording to Article 1 of the Regulations Governing the Organization
of the Yunnan Provincial Anti-Malaria Committee.
Article 2
The Anti-Malaria Corps, under the direction of the Yunnan Provincial
Anti-Malaria Committee and the Yunnan Provincial Healthe Administra-
tion, shall establish 10 to 15 anti-malaria stations and may also
organize anti-malaria units to carry out field work in malaria control in Yunnan.
Article 3
The Anti-Malaria Corps shall be responsible for the following:
1) To carry out the anti-malaria program approved by the AntiMalaria Committee.
2) )Matters relating to the organization of anti-malaria stations.
3) )Planning, supervision, and designating places of work of the
anti-malaria Stations.
4)Recommendation, appointment, dismissal and examination of work
of staff of the Anti-Malaria Corve and anti-malaria stations.
5) Budgetting and accounting of the Anti-Malaria Corps and the
anti-malaria Stations.
-2-
21
Article
The Anti-Malaria Corps shall have one director and one deputy
director. The director and deputy director shall be recommended
by the Anti-Malaria Committee to the Yunnan Provincial Government
for appointment. The director shall be responsible to the AntiMalaria Committee for the work of the Anti-Malaria Corps, while
the deputy director shall assist the director in carrying out all
activities of the Anti-Malaria Corps.
Article 5
The Anti-Malaria Corps may appoint 3 to 5 field directors according
to need. They shall be responsible to the director and deputy
director of the Anti-Malaria Corps for directing and taking charge
of all anti-malaria activities in their respective regions.
The field directors may act concurrently as head of the anti-malaria
stations. The director and deputy directors shall recommend them
to the Provincial Government for appointment.
Artiole 6
The Anti-Kalaria Corps shall have 4 to 6 clerks, to be appointed by
the director and deputy director and reported to the Anti-Malaria
Committee for record. They shall be responsible for correspondence,
accounting, medical supplies and routine matters.
Article 7
The Anti-Malaria Corps may engage a number of employees when nece-
eary.
-3-
22
Article 8
Office regulations of the Anti-Malaria Gorps shall be separately
drawn up.
Article 9
The present regulations may be amended from time to time.
Article 10
The present regulations shall become effective from date of
promulgation.
23
Appendix 8
Regulations Governing the Organization of Anti-Malaria Stations
in Yunnan
Article 1
The Anti-Malaria Stations in Yumnan(hereinafter referred to as the
Stations) shall be organised according to the regulations governing
the organisation of the Anti-Malaria Corps of the Yunnan Provincial
Government.
Article 2
The Stations shall be responsible to the Anti-Malaria Corps of the
Yunnan Provincial Government(hereinafter referred to as the Anti-
Malaria Corps)for carrying out anti-malaria activities in regions
designated by the Anti-Malaria Corps. When necessary, anti-malaria
units may be organised.
Article 3
Each station shall have one head, to be recommended by the AntiMalaria Corps to the Provincial Government through the Anti-Malaria
Committee for appointment. The head of each station shall be re-
sponsible for the work of his station.
Article 4
Each station shall have 2 to 4 assistant technical experts, 4 to 6
technical assistants, 2 to 4 technicians, 1 to 3 office assistants,
and 4 to 8 assistants. They shall be recommended by the head of
to the Anti-Malaria Committee through the Anti-Malaria Corps for
. tion appointment and be responsible to the head of station for
-2.
24
their activities.
Article 5
Each station shall have the following divisions:
1) Division of Medical Affairs
2) Division of Survey
3) Division of Engineering
When necessary, each station may organize a number of anti-malaria
units to be responsible for anti-malaria activities in certain
designated regions. Each Division shall have one chief of division,
and each unit shall have one chief of unit, to be filled by the assis
tant technical experts.
Article 6
Detailed regulations of the anti-malaria stations shall be separately
drawn up.
Article 7
The present regulations may be amended from time to time.
Artiole 8
The present regulations shall become effective from date of
promulgation.
Appendix 9
Regulations Governing the Organization of the Institute for
25
Malaria Research in Yunnan
Article 1
The Institute for Malaria Research (hereinafter referred to as the
"Institute") is organised under the auspices of the Anti-Malaria
Committee in Yunnan(hereinafter referred to as the "Committee")
to take charge of all the researches on malaria and to give the
technical advice in anti-malaria work.
Article 2
The Institute has the following functions:
a)Training of personnel for anti-malaria work
b)Giving technical assistance to all anti-malaria stations in
Yunnan Province.
o)Malaria and Mosquito surveys: researches on the symptomatology,
therapeutics, haematology, pathology, immulogy and protosoolog
of the diseases: and researches on the physiographical, meteore
logical, economical and entomological factors in influencing
its prevalence.
d) Survey of the physical features of the area where the antimalaria work is to be carried out.
e) Experiments on anti-mosquito and anti-larval measures.
f) publishing papers on malaria researches.
g) Study on the cinchona plantation.
h) Recommendation, control and supervision of personnel.
Article 3
The Institute is composed of the following staff:
Director - to be recommended by the Committee and appointed
by Yunnan Provincial Government.
-226
4 Technical Experts and 46 Assistant Technical Expetteto be recommended by the Director of the Institute
and appointed by the Yunnan Provincial Government
4-6 Technical Assistants, 10-15 technicians and 2-4 business
assistants - to be recommended by the Director of the
Institute and appointed by the Committee.
Malariologists, biologists, chemists, agriculturists or
hydrographic engineers may be recommended according to their
qualifications to be technical experts or assistant technical
experts or technical assistants of the Institute.
Article 4
The Institute shall consist of the following divisions:
Division of Epidemiology
Division of Entomology
Division of Sanitary Engineering
Division of Chemotherapeutios
Division of General Affairs
The technical experts of the Institute shall be appointed as heads
of the first four Divisions while one of the business assistants
shall be placed in charge of the Division of General Affairs.
Article 5
Honorary advisers may be recommended by the Director to the Yunnan
Provincial Government for appointment.
Article 6
The Director shall take charge of the entire affairs of the Institute
under the direction of the Committee. All the staff members of the
Institute shall attend to their aduties in the Division to which they
-327
belong by the order of their superior.
Article 7
The Institute may employ a number of student technicians whenever
necessary.
Article 8
The detailed rules for the administration of the Institute shall
be formulated and announced separately.
Article 9
These regulations shall come into force on the date they are
approved and officially announced by the Committee.
Appendix 10
28
Name List of staff Appointed to Take Charge of the Different
Organisations of Anti-Malaria Work in Yunnan
Dr. H.Y. Yao, Director of the Anti-Malaria Corps
Dr. A.T. Miao, Deputy Director of the Anti-Malaria Corps
Dr. Y.T. YAO, Director of the Institute for Malaria Research
Advisors to the Institute for Valaria Research:
Dr. Y.Y. Ying, prof. of Tropical Medicine, National Medical
College of Shanghai
Dr. K.Y. Ku, Prof. of Pathology, National Medical College
of Shanghai
Mr. P.K. Tao, prof. of Sanitary Engineering, Southwest
Union University
Dr. L.C. Ling, Chief of the Anti-Malaria Station in Yun-heien
Dr. 0. T. Wang, Chief of the Anti-Malaria Station in shun-ning
Dr. C. T. WOO, Chief of the Anti-Malaria Station in See-mao
Annendix 12
lictures taken at the Cinching Plintation 01 the Tropical
Station 01 we Bureau of (econstruction
01 Tummer Provincial Government at Ho-kou
Note:
In his recent tri to No-kou made especially to
investi te into the cultivation of Cinchona,
Dr. Y. T. Yeo are seen C. succiruors, C. Ledgerjune, C. officinalis and the hybrid of the former two in the ilant Lion.
31
Appendix 12
List of Anti-malaria and Anti-mosquito Instruments, Chemicals and
Drugs Requested to be appropriated by the Government of United States
1. Instruments
A. For surveying and mosquito control:
Items
Current meter with dry cell and
Quantity
4 pas.
Unit Price Total
Cost
150.00
20.00
0.50
600.00
100.00
10.00
2,600.00
10 pcs.
650.00
0.40
4 sets
250.00
1,000.00
8 pcs.
22.50
180.00
4 pcs.
7.00
28.00
K. &. E. Mettalic woventape 15 m.
and 50 ft.
10 pcs.
6.00
60.00
K. & E. Steel tane 30m. & 100 ft.
1 set
5 pcs.
500.00
20.00
500.00
100.00
5 pcs.
14.00
6.00
6.00
5.00
70.00
120.00
60.00
25.00
wiring
Drawing instruments (Stanley
Haversack
K. & E. Engineering transil (24
dia.) 20 BOGS. with tripod
K. & E. Erasong sheild
K. & E. "Y" level (28 dia.) ratio
1:100 with tripod
K. & E. Level rods 2.2 meters to
K. & E.4 meters with target
K. & &. Lookes Hand Level with
studia line
K. &. E. Plain table with alidade
with tripod
Log log Trig. duplex slide rule
10 in.
Knapsack sprayer
Knapsack blower
Mixer
Miscellaneous draughting instru
ments
Rubber boots
Screener
Stanley drawing pen, 6 in.
Surveying miscellaneous
Surveying umbrella
5 sets
20 pes.
4 sets
20 .
10 #
5#
1 set
20 pairs
5 pcs.
12 #
1 set
4 pcs.
5.00
5.00
10 pcs.
.50
T-square Xylonite lined, 42 in.
Xylorite semi-circular protractor,
10 #
Xylorite triangles
20 .
8 in.
Automobile
Bicycle
Lorry
Typewriter, portable
B. For Laboratory:
2.00
10.00
1.50
1
20
4
4
1.00
700.00
10.00
600.00
60.00
4.00
100.00
40.00
50.00
18.00
500.00
20.00
50.00
5.00
20.00
700.00
200.00
2,400.00
240.00
32
-
Items
2
Counter, hand
Cover glass, round, 18 square 18 Diluting pipette for R.B.O. and
W.B.O.
Glass elides, ground edge, noncorrosive, 3x1
-
Quantity
4 pcs.
100 boxes
Unit
Price
Total
Cost
5.00
1.75
1.75
20.00
175.00
175.00
10 pcs. (each) 1.30
26.00
100 .
500 boxes
1.90
16.00
10.00
5.00
950,00
5 sets
25.00
150.00
750.00
750.00
with equipment 319L
5#
300.00
1,500.00
work
4#
4#
10.00
40.00
15.00
12.00
7.50
Hemocytometer
2 sets
Memometer. Sahli
2.
Magnifying lens, double 5x,10x
Microsope, simple dissecting
for 30 students
5 pcs.
Microscope, Seiss routine Ltd
Object holder for entomological
Ph-apparatus
Balance, 5 kg. with ats.
Centrifuge, hand
Clock, Hawkeye, interval timer
Compass
1.00
48.00
193.00
..50
6.00
7.20
12 N
.60
.50
4, .
5.00
4.
4 pcs.
4.
4.
Distilling apparatus, can. 1 gal
4 acts
per hour
Forceps, cover-glass
entomological, curved
and square tipped
fine curved
pinning
Straight fine
Lamp, alcohol brass, 4 oz.
Minuten nadeln
Nee le, dissecting with handle
Pins, entomological, rustless
Nos. 00-5
Pine, nickel No.20
12 DCS.
12 #
12 .
10
10,000
4 doz.
7,000 pcs.
50,000 pcs.
50,000
Scapel, microscopic
ordinary
12
Sicissors, microscopic
12
curved
Syringe needles, size assorted
Vaccine needles for taking blood
Writing diamond
Aquaria, cylindrical cap. 1 gal.
#
#
No. 16
ordinary straight
20.00
25.00
40.00
160.00
60.00
48.00
30.00
2.00
#
Misrosoppe, Spencer binocular
30 pcs.
32.00
.50
.70
4.00(10,000)
.50
6.00
20.00
6.00
7.00
40.00
2.00
6.00(1000) 42.00
4.00(10,000)20.00
4.00(10,000)20.00
12 #
.20
1.00
7.20
6.00
48.00
8.40
8.40
24.00
2.40
4.00
20 pcs.
1.85
37.00
12
12
#
.
#
.
12 #
12 dos.
4.
.60
.50
4.50
.70
.70
2.00
33
-
3-
Quantities
Items
Beaker, Pyrex, 50 00.
250 00.
1000oo.
Bell glass, 15x9 in
Bottle, balsam
20 pcs.
20 pcs.
10 pcs
5 pcs.
20
#
.
#
#
5
#
5
2000 00.
10
Dessicator, 250 mm. dia.
Dish, stender with cover 80x40mm20
5
Flask, boiling, 50 CO.
250 CC.
1000 CC.
bottom, 50 CO.
250 CO.
Erlenmeyer 5000.
25000,
100000/
Funnel, glass 1 in. dia.
5 in. dia.
Jar, Staining, 20 slides
10
Petri-dishes 100x15 mm.
5.00
5.50
25.00
8.00
.55
5.00
.65
.14
1.30
.20
.80
.50
.60
.17
20
20
.24
.
10
.43
.40
.60
"
#
5
5
20 pcs.
20 pcs.
10
.17
.22
.42
10
.50
.15
10
.40
20
.35
20
.35
5
200 pairs
20 pcs.
Pipette, graduated 1 CC.
Specimen tube with flat bottom
1,000
and cork
10
Syringe, Luer, 100.
10
.
.
2 CC.
5 00.
10 cc.
.25
.55
filtering Pyrex with
side neck, 500 cc.
3.60
3.20
8.00
4
.
10
10
Total Cost
0.18
.40
#
Bottle, cedar wood oil & Xylol 20
dropping with pipette 50
Burette, cap. 100 0.0.
Calcium ohloride tube, 6 in.
Centrifuge tubes, plain 15 00. 5 dos
10 pcs.
Cylinder, Pyrex 5 00.
100 CO.
Unit Price
.50
.50
.02
1.70
1.30
2.00
2.50
13.00
7.00
6.50
1.00
4.00
5.00
6.00
12.80
40.00
11.00
3.40
4.80
4.30
2.00
3.00
3.40
4.40
4.20
2.50
1.50
4.00
7.00
7.00
100.00
10.00
20.00
17.00
13.00
20.00
25.00
70.00
Test tube, Pyrex, 150x18mm. 1,000
Watch glass, Syracuse 2F in. dia.
.07
Evaporating dish, 80mm. dia
Mortar with pestle, 96mm. dia.
.13
14.00
2.60
20
.70
.70
1.40
14.00
200
.04
8.00
.30
300.00
Celluloid sheet, 6x6 in.
vial with cork
13x15 mm.
100
20
2
Cork sheet, pressed 4x12x>in. 100
.14
34
Quantity Unit price Total cost
Item
Rubber bulb, cap. 2 ml.
Tray, enamel 12x 7 x 21n.
10 pcs.
1.30
1.40
1.60
2.00
26.00
4.00
25.00
2.40
50.00
13.00
and black
Miscellaneous equipments
20 each
.15
12.00
10dos
oz
20pes
os
20 DOB
8 pairs
glove, size 14
tubing, thin wall tin.
50 ft.
Spot pine, 10 different colors
500 each
Tap measure, pocket, 36 in.
4 DOB.
4 set
Tent, 6x7x10 ft.
Wax pencil, red, yellow, blue
.14
.08
.10
3.50
.08
.05
.60
50.00
145.90
2 Chemicals
A. For mosquito control
Anti-larva oil
Paris green
1,000 barrels 30.00
30,000.00
4,000.00
10 tons
400.00
5 lbs.
.40
.95
.60
1.00
2.00
9.50
3.00
1.00
1.50
1.50
4.00
1.00
.80
7.50
1.00
20.00
75.00
30.00
8.00
4.00
8.00
30.00
B. For Laboratory
Acid, acetic, c.p.
glacial, c.p.
#
.
.
hydrochioric, C.D.
potassium phosphate, C.D.
Alcohol, absolute
ethyl
Alcohol,methy}
Asphalt vanish for ring slide
Bromthymolblus
Calcium chloride, C.P.
10
5#
4.
20 .
50 gal.
20 lbs.
2.
400 CO
10 lbs.
Canada balsam
4.
Cautic potash, C.P.
5#
Celloidin
10 OZ
Chloroform
20 1bs.
Chloral hydrate, C.P.
Copper sulphate, c.p.
.60
.70
5 lbs.
2.50
5#
1.20
1.20
Creonote
Ether
Euparal
Formalin
10 .
20 .
10 oz.
5 gal.
2.00
Glycerine, ordinary
10 1bs.
.90
distilled
20 .
5.
.70
150
Iodine
2#
Lithium carbonate, C.D.
4#
1.50
1.20
9.00
1.50
20 .
.90
Gum arabic
Lysel
4.00
5.00
6.00
14.00
12.50
6.00
12.00
14.00
15.00
10.00
9.00
30.00
6.00
18.00
6.00
18.00
Item
Negurio chloride. c.p.
Naphthaline flakes
oil, gedar wood
oil, cloves
Plaster of Paris
Quantity
4 lbs
Unit price
10 M
4.
4 If
10
Potassium iodine
2
Sodium dibasic, c.p.
sulphate, c.p.
.
#
35
-
5
4#
4
.
#
ax,sealing
Xylol
Agur I
Azur II
Asur II Rosin
Hematein crystal
Kethyl blue
a green
Wright " stain powder
Quinine bisulphate
4
n20 oz.
20 lbs.
3.00
.75
6.00
6.50
.15
8.00
1.00
.80
.80
.50
.90
25 gas
6.00
30 ams
400 If
100 #
25 #
25 #
200 #
16.00
9.00
8.00
1.75
3.50
17.80
Total coat
12.00
7.50
24.00
26.00
1.50
16.00
4.00
3.20
3.20
10.00
18.00
6.00
16.00
36.00
8.00
1.75
3.50
35.60
3. Drugs
3 tonet 20,000.00
Plasmoquine
60,000.00
20,000.00
4. Miscellaneous
Misoellaneous equipments
210.95
Grand Total U.S.
$131,000.00
36
Appendix 13 List of Instruments Requested to be Appropriated by
the Rock efeller Foundation
1. Hioroscopes, optical instruments and other accessories:
Items
Quantity Unit Price Total Cost
Anemometer
1 set
US$40.00
US$40.00
1 set
1 set
54.00
54.00
90.00
90.00
110.00
28.00
45.00
5.00
1.75
1.75
110.00
56.00
45.00
20.00
175.00
175.00
10 pcs.each
1.30
26.00
1 DC.
5.00
5.00
1.90
950.00
.20
20.00
32.00
20.00
Barometer, automatic recording
Camera, Leica
Photomicrographic
#
1 set
fitted to Zeiss Mioro.
#
2 pcs.
luoida, Abbe
Comparison eyepiece
Counter, hand
1 DO.
4 po
Cover glasses, round, 18 mm,100 boxes
square 18 mm.
100
Diluting pipette for R.B.C.
and W.S.O.
#
Drawing table, 2 parts for
Abbe drawing apparatus
Glass slides, ground edge,
500 boxes
non-corrosive, 3x1
Glass slides, single cavity
3x1
100 pos.
2 sets
16.00
10.00
1 pc.
3.00
14.00
60.00
60.00
5.00
10.00
25.00
50.00
25.00
150.00
750.00
750.00
1 set
500.00
500.00
5 sets
300.00
1,500.00
Microscope, Zeiss ESC-220 for
30 sets
30 students
130.00
3,900.00
150.00
9.00
750.00
9.00
Hemocytometer
Hemometer, Sahli
Hydrometer for both heavy and
Light liquids
Hygrometer
2#
1#
Lantern slide projector
1 set
5x,10x
Microscope lamp
5 pcs.
Magnifying lens. double
5#
Microscope, Simple dissecting
30 pcs.
for 30 students
Microscope, Spencer binocular 5 sets
Microscope, Zeiss research
LEE with equipments 857L
Microscope, Zeiss routine LTD
with equipment 31gL
Microscope, travelling NO.
124044
Microtone, hone
5 sets
1 pc.
3.00
14.00
37
-23 pcs.
Microtone, knife
Microtome, Spencer precision
1 set
rotary
object holder for entomo1#
logical work
Object marker
Ocular micrometer
Ph-apparatus
color dise
#
30.00
220.00
220.00
10.00
10.00
30.00
10.00
40.00
8.00
7.00
1 DO.
30.00
2 pcs.
1 set
4 pcs.
5.00
40.00
2.00
7.00
1 pc.
Stage micrometer
Thermometer, recording Max.
1 set
& Min.
100 C.
10 pcs.
360 C.
2 pcs.
1 set
Urinometer, Vogel
Turning table, all metal
10.00
70.00
2.50
11.00
2.00
3.00
70.00
25.00
22.00
2.00
15.00
1 set
300.00
300.00
1.
300.00
300.00
2 sets
15.00
1 set
30.00
30.00
30.00
5
2.Labaratory Instruments
Autoclave
Balance, analytical sensi.
1/10mg
5 kg. with wts.
platform
Berkfield filter with candles
4 sets
Burner, alcohol automatic
Kerosene, 1 head
2
#
4
"
4 pcs.
6
4#
2#
Caliper micrometer grad.o. olmm. Inc.
1 set
Centerfuge, electric
hand
Clamp,burette
condenser
#
Clock,Hawkeye interval
timer
Compass
Cork borer, a set of 15
Dissecting instruments,
complete
2 pcs.
5.
2.
2#
2*
1 set
2 sets
Distilling apparatus, cap.
1 set
1 gal per hour.
Drawing instruments
1 set
10.00
4.00
1.50
2.50
5.00
2.50
75.00
12.00
1.30
40.00
16.00
9.00
10.00
10.00
2.50
75.00
24.00
6.50
1.50
3.00
7.50
1.00
2.30
15.00
2.00
2.30
15.00
30.00
48.00
48.00
10.00
10.00
38
-3Drying oven, 10 X 8 - 8 in.
Embedding boxes, 2 L's with metal plate, medium
Embedding table. 14 x 4 X 6 in.
no.16
Refrigerator
6.00
1,000.00
190.00
2 sets (1)200.00(?)
10 pcs.
1 set
100,000 pcs.
2 doz.
6 pcs.
7,000
50,000
50,000
Scissors, microscopic
ordinary straight
curved
Section lifter, 6 mm. wide
Beive, Tyler Standard Screen scale,
8 in.dia. a set of 10.20.32,
48,60.80, and 100 mesh.
Support, iron rings
Byringe needles, size assorted
feat tube holder
Triangular punch
Triangle covered with silica 3 in.
Tripod, 9 in. high, 4 in.dia.
Vaccine needles for taking blood
Water bath, 8 in.dia.
Writing diamond
Sanitary Engineering Instruments:
Current meter with dry cell and
K. & E. Engineering transit (24
dia.) 20 200. with tripod
E. & E. erasing shield
0.50
1
Scapel, miscrosopie
ordinary
Haverback
12
1 pc.
1 set
Ruler, pocket folding
wiring
Drawing instruments (Stanley)
7.20
28
0.60
0.50
5.00
0.50
"
Pine, entomological, rustless,
Nos. 00-5
fins, nickel No.20
6.00
9.00
6.00
2
Hot air steriliser
Platinum loop
0.60
4.50
0.50
12
Funnel, hot water, copper
Generator & accessories, whole set
Needle, dissecting with handle
10 pcs.
12
Pinning
Minuten nadeln
24.00
12
straight, blunted
straight fine
Lamp, alcohol brass, 4 OS.
Melting point apparatus
24.00
2
Forceps, cover-glass
entomological, curved
and square tipped
fine curved
Incubator
1 set
1 set
5 pcs.
12
12
6
6
6
6
1 set
5 sets
6.00
10.00
6.00
6.00
6.00
1,000.00
190.00
200.00
0.70
7.00
18.00
4.00
0.50
2.00
18.00
40.00
1.00
12.00
6.00
4.00
42.00
20.00
20.00
300.00
5.00
7.20
0.00
24.00
4.20
4.20
0.70
4.00
300.00
1.00
0.60
0.50
4.00
0.70
0.70
0.70
4.00
3.00
2.00
1.40
5.00
0.65
0.30
0.20
4.00
1.00
28.00
15.00
24.00
2.80
5.00
6.50
1.50
2.40
8.00
2.00
4 pcs.
5 sets
20 pcs.
150.00
20.00
0.50
600.00
100.00
10.00
4 sets
10 pcs.
650.00
0.40
2,600.00
12 dos.
2 doz.
1 pc.
10 pcs.
5
12 do%.
2 pcs.
2
4.00
4-
39
& E. "Y" level (28 dia.) ratio
1:100 with tripod
& E. Level rods 2.2 meters to
E. meters with target
& E. Lockes Hand Level with
studia lina
& E. Metallic woven tape 15m.
and 50 it.
4 sets
8 pos.
250.00
22.50
1,000.00
180.00
&
R. Plain table with alidade
with tripod
E. Steel tape 30m. & 100 ft.
og log Trig. duplex slide rule
4"
7.00
28.00
1 set
6.00
500.00
60.00
500.00
5 pcs.
20.00
100.00
14.00
6.00
6.00
5.00
70.00
120.00
60.00
25.00
10
10 in.
"
"
5
"
napaach sprayer
napaack blower
ixer
20
10
5
iscellaneous draughting instruments
5.00
5.00
100.00
40.00
50.00
18.00
500.00
25.00
50.00
0.50
1.00
5.00
20.00
1.85
8.00
0.18
0.19
0.25
0.35
0.55
0.90
37.00
80.00
3.60
3.80
5.00
7.00
5.50
9.00
1
Sanley. drawing pon, 6 in.
12
Square Zylonite lined, 42 in.
10
lorite
8 in. semi-circular protractor,
lorite triangles
1 set
4 pcs.
10
20
"
arveying miscellaneous
reveying umbrella
"
"
Greener
20 prs.
5 pcs.
"
abber boots
2.00
10.00
1.50
asswares:
rectangular cap. 6 gal.
oker, Trex, 50 CC.
100 cc.
250 cc.
600 cc.
1000 CO.
2000 00.
20 pcs.
10
20
20
20
20
10
10
"
unris, cylindrical cap. 1 gal.
"
"
"
.
5 pcs.
Bell glass, 15 x 9 in.
Bottle, balsam
cedar wood oil & Xylol
dropping with pipette
20
5.00
0.40
20
0.65
50
0.14
with projecting
lug, 100 C.C.
Burettr, cap. 100 C.O.
"
50
"
5
Calcium chloride tube, 6 in.
Centrifuge tubes, plain 15 O.C.
Condenser tube, Pyrex 24 in.
Cylinder. yrex 5 CC.
50 00.
100 CC.
500 CC.
2000 CC.
5
5 doz.
6 pcs.
10
10
10
"
5
2
100x50 mm.
Evaporating dish, Pyrex flat bottom.
50 mm. dis.
Flask, boiling, 50 CO.
125 CO.
250 CO.
500 CO.
1000 CC.
2000 CC.
Flask, distilling, Pyrex round
botton, 30 CC.
distilling 50 CC.
125 CO.
250 cc.
Flask, Erlenmeyer 50 CC.
20
20
20
20
20
20
10
10
5
5
"
Dessicator. 250 mm. dia.
Dish, stender with cover 80x40 mm.
5
5
5
5
20
125 CO.
250 CO.
500 CO.
20
1000 CC.
2000 CC.
10
20
20
5
Flask, filtering Pyrex with
side neck, 500 CO.
Flaak, kjeldahl, Pyrex, 300 CC.
Funnel, dropping, 60 CC.
glass 1 in. dia.
2g in. dia.
5 in. dia.
Funnel, separate Squibb, 250 CO.
Gless block, square with excavation
and cover 1à X 1à in.
Jar, rectangular museum 15 x 8
x 5 om.
Jar, Screw cap. cap. 1 OZ.
cap. 4 dos.
Jar, staining, 20 alides
Petridishes, 100 x 15 mm. Pyrex
Pipette, graduated 1 CO.
2 00.
5
5
5
10
10
10
5
50
50
10 dos.
10
20 pcs.
200 prs.
20 pcs.
20
0.40
1.30
0.20
0.80
0.70
0.50
0.50
0.60
1.30
3.20
8.00
0.55
0.70
25.00
8.00
13.00
7.00
20.00
6.50
1.00
4.00
4.20
5.00
5.00
6.00
6.50
6.40
40.00
11.00
14.00
0.50
0.17
0.19
0.24
0.30
0.43
0.60
10.00
3.40
3.80
0.36
0.40
0.50
0.60
0.17
0.19
0.22
0.29
0.42
0.60
1.80
2.00
2.50
3.00
3.40
3.80
4.40
5.80
4.20
3.00
0.50
0.30
1.00
0.15
0.24
0.40
1.90
2.50
1.50
5.00
1.50
2.40
4.00
9.50
0.35
17.50
0.40
1.35
1.95
0.35
0.50
0.50
0.60
20.00
13.50
19.50
7.00
4.80
3.00
4.30
3.00
100.00
10.00
12.00
40
ipette, graduated 5 CC.
20 pcs.
10 CO.
10
Specimen tube with flat bottom
and cork
Syringe, Luer, 1 C.C.
1,000
10
10
10 C.C.
10
20 O.C.
40 x 10 mm.
50 x 20 mm.
80 X 25 mm.
0.90
0.02
0.70
1.30
2.00
2.50
10
2 C.O.
5 C.C.
Test tube, Pyrex, 150 X 18 10m
Tumbler, cap. 7 OZ.
Vials, 25 x 8 mm.
"
41
0.75
0.07
0.18
0.01
0.01
0.02
0.025
20.00
17.00
13.00
20.00
25.00
15.00
70.00
3.60
10.00
10.00
20.00
25.00
0.30
0.14
1.50
14.00
3.00
5
1,000
20
1,000
1,000
1,000
1,000
Watch glass with flat polished
bottom, 50 hill. dis.
5 dos.
Watch glass, Syracuse 2 5/8 in.dia. 100 pos.
Weighing bottle. 40 HNS. dia.
15.00
9.00
50 mm. high
10
0.70
7.00
30 mm. high
10
1.00
10.00
10 pcs.
10 pcs.
0.30
0.35
3.00
3.50
4.50
7.50
8.00
2.00
2.50
2.60
5.40
3.00
1.40
4.00
feighing bottle, 50 mm. din.
orcelain:
Casseroles, 30 CC.
75 CO.
150 CC.
10
,
Crucible, is 00.
10
30 CC.
10
Gooch, 10 CC.
25 C.C.
Evaporating dish, 80 mm. dia.
,100 mm. dia.
Funnel, Buchner, 5 cm. dia.
Mortar with postle, 95 mm. dia.
10
10
20
20
"
5
2
61 in. dia.
Office Equipment:
atomobile
Bicycle
Calculating machine
2
1
10
1 set
Jorry
2
Typewriter, office
. portable
1
4
0.45
0.75
0.80
0.20
0.25
0.13
0.27
0.60
0.70
2.00
700.00
10.00
120.00
600.00
100.00
60.00
700.00
100.00
120.00
1,200.00
100.00
240.00
iscellaneous:
Animal board
20
0.08
0.70
12.00
6.00
8.00
14.00
tube with cork
100
0.20
20.00
13 x 50 mm.
200
0.04
8.00
Asbesto board. size 6 in.
Balsa wood. 20
2 pcs.
20
100
Celluloid mosquito sheet. X 6 25
x in. 6 in.
catching
vial with corl
"
6.00
0.30
42
Celluloid vial with cork,
32 x 90 mm.
Cork, No. 0
No. 3
No. 6
No. 9
200 pcs.
5 bage
5
"
5
"
5
No.12
No.16
"
5
cap. OZ.
cap. 1/2 OS.
glove, sixe 14
stopper, Hos.00,0,1-6
teats, No. 3
tubing. thin wall 1/8 in.
5/16 in.
3/8 in.
1/2 in.
Sable brush, NOGO
No.2
Spot pine, 10 different colors
Tap measure, pocket, 36 in.
Tent, 6 X 7 x 10 ft.
Tray, enamel, 12 x 7 x 2 in.
Wax poncil, red, yellow. blue
and black
Miscellaneous equipments
9.00
0.30
100
50 packs
100
10 doz.
20 pcs.
20
4 pairs
2 lb.each
100 pcs.
50 ft.
50 ft.
50 ft.
50 ft.
20.00
4.00
6.00
6.00
2
Cork sheet, pressed 4 x 12 x 1/2 in.
Filter paper, 100 mm. dia.
Litmus paper. red and blue
Rubber bulb, cap. 2 ml
0.10
0.80
1.20
1.60
2.50
3.00
1.00
0.10
0.14
0.08
0.10
3.50
0.90
0.01
0.08
12.50
15.00
12.00
3.00
50.00
10.00
1.40
1.60
2.00
14.00
12.00
1.00
4.00
4.50
4 pcs.
1 set
10 pcs.
0.09
0.15
0.18
0.40
0.40
0.50
0.60
50.00
1.30
7.50
9.00
2.00
2.00
25.00
2.40
50.00
13.00
20 each
0.15
12.00
145.90
5 doz.
5
500 each
Total
U3$23,937.10
Appendix 14
List of Chemicals and Stains reque ted to be Appropriated
by the Rockefeller Foundation
Chemicals:
uantity Unit Price Total Cost
Items
10 lbs.
Acetone, C.P.
Acetice anhydride, c.p.
Acid, Acetic, c.p.
glastal, C.P.
5
2
carbolic, C.P.
chromic, c.p.
5
2
gallic, C.P.
2
Hydrochloric, c.p.
Hydrofluorie, C.D.
Lectic, C.P.
5
1
5
Bitric, C.P.
5
5 give.
Osmic, G.P.
P lbs.
hosphoric, C.P.
Picric, C.P.
5
Potassium Phosphate, C.P.
Salicylic, C.D.
Sulphuric, crude
Tannic, c.p.
Agaragar
Alcohol, absolute
amyl
ethyl, 98%
methyl
Aluminum chloride, C.P.
turnings
2
Ammonium acetate, c.p.
alum, C.P.
forri sulphate, C.P.
hydroxide, c.p.
molybdate, C.P.
Bulphide, c.p.
Animal charcoal
sphalt vanish for ring slide
Barium
Barium chloride, C.D.
Benzylaldehyde
Bensyl chloride
Bismuth dioxide
Blenching powder
Borax, C.D.
Bromine
Bromthymolbule
Calcium carbide
5
2
5
20
5
50 gal.
20 lbs.
5
1b.
lbs.
2
.60
2.90
.20
.60
10
1
1.00
1.80
3.50
5.00
.60
3.90
2.50
1.10
8.50
1.00
2.00
2
C.P.
Benzene
.95
10
benzoic, G.P.
US$0.90
.90
.40
5
5
5
2.50
3.00
1.00
1.00
1.50
1.50
.90
3.00
.90
.80
.80
.88
2
.90
.50
1.00
1.00
1.00
.30
2
2
2
10
.50
2
"
1
400
CO.
2 lbs.
4.00
.80
2
5
12.50
5.50
42.50
1.20
14.50
2.00
4.00
2.00
3.00
5.00
15.00
20.00
5.00
75.00
30.00
4.50
3.00
1.80
4.00
.40
1
4.00
1.50
2
3.00
3.90
1.00
.90
.65
2
1.80
2.00
9.50
2.00
9.00
7.00
10.00
4.40
3.00
1.00
1.70
8.00
1.50
1.80
2.50
2.00
2.00
2.00
3.00
1.00
1.00
1.50
2
US$ 9.00
1.00
4.00
Calcium chloride. C.P.
oxide, C.P.
Canada Balsam
Carbon disulphide
tetrachloride
Cautic potash, C.P.
Celliodin
Chloral hydrate C.P.
Chloroform
10 lbs. US$0.80
7.50
2
.90
.60
"
2
10
"
"
5
10 OZ.
5 lbs.
Chromium trioxide, C.P.
Copper carbonate, c.p.
Copper oxide, C.P.
Copper sulphate, C.P.
Creosol
"
1
"
1
2
.90
"
Euparal
Ferric chloride, C.P.
nitrate
Ferrous ohloride
sulphate
"
1
10 OZ.
1 1b.
1"
1"
1
5 gale.
1 1b.
Glucose
Glycerine, ordinary
Glycerol
1.20
3.00
"
1
20
distilled
5 lbs.
1.50
1.50
1.20
"
20
"
"
5
Hydrogen peroxide
"
.80
2
Hydroxylaniline hydrochloride
Iodine
Iron powder
"
1 lb.
2
Lead acetate, c.p.
Lithium carbonate, dp.
Lysol
-
1
2 lbs.
10
Methyl iodine, C.P.
Mercurio chloride. C.P.
Naphthaline flakes
Nichel nitrate, C.P.
Nitrobensene
oil, aniline
011, coder wood011, cloves
011, turpentine
oil. wintergreen
Paraffin, 47-49 C.
56-58 C.
liquid
Phenolphthalin
Plaster of Peris
Potassic alum, C.D.
Potassium bichromate, C.P.
2
1 18.
1
2 lbs.
10
.
1 1b.
1
2 lbs.
2
"
2
5
1.00
1.00
1.50
.90
.60
1.00
6.00
3.00
.75
1.00
3.00
1.30
6.00
6.50
1.30
"
5
10
"
10
"
"
2
1 1b.
10 lbs.
5
"
5
6.00
9.00
.80
"
"
Magnesium sulphate, C.D.Manganous chloride, C.p.
.70
2.00
1.50
1.00
1.00
1.00
1.00
2.00
3.50
2.00
.90
10
2
Gum arabic
1.00
1.00
1.20
"
5
"
Dimethylaniline
ther
thyl bromide
2.50
1.00
"
10
.60
.80
"
2
2
Creosote
1.00
.70
"
20
Cobalt nitrate, C.P.
Formalin
Gelatin
.50
2
.60
.50
.60
3.50
.15
.30
.80
US# 8.00
1.00
15.00
1.80
6.00
5.00
6.00
12.50
14.00
1.00
1.00
1.60
2.00
6.00
1.80
12.00
3.00
14.00
2.00
15.00
1.00
1.00
1.00
1.00
10.00
3.50
10.00
9.00
30.00
3.00
6.00
1.60
3.00
18.00
1.00
1.00
3.00
9.00
1.20
1.00
6.00
6.00
7.50
1.00
3.00
2.60
12.00
13.00
4.00
6.50
6.00
5.00
1.20
3.50
1.50
1.50
4.00
44
Potassium carbonate, C.P.
cyanide, C.P.
2 lbs.
2
fluodie, C.p.
2
iodide
"
2
Permanganate
Pyridine
1 lb.
2
Quarts powder
"
1
Quinine
1
Recorcinol
Silver nitrate
1
5 OE.
Sodium acetate, C.P.
2 lbs.
arsenite, C.p.
bicarbonate, C.p.
bichromate, C.P.
bisulphate, C.P.
carbonate, C.P.
chloride, C.P.
"
"
citrate. C.P.
2
2
"
2
"
a
"
2
10
5
dichromate, C.D.
2
1b.
nitrate, C.P.
C.P.
sulphate, c.p.
sulphite, C.P.
1
2 18s.
2
2
1 lb.
1
Uranium nitrate, C.P.
Urea, C.P.
Vaseline
Wax, sealing
Xylol
5 OZ.
1 lb.
5 lbs.
10 OZ.
Eine chloride, C.P.
dust
.90
.30
.50
.60
.40
.40
.50
1.00
3.00
1.00
..00
20 lbs.
1 lb.
"
1
US$ 1.60
9.00
4.00
16.00
2.80
4.00
1.00
2.00
1.50
5.50
1.80
1.80
.60
1.00
1.20
.80
4.00
2.50
1.00
2.00
1.50
.80
.90
2.00
2.00
1.60
1.60
4.00
.30
.30
.80
2
Starch, C.P.
Tin
Toluidine
1.00
2.00
1.50
1.10
.90
.80
.90
1
peroxide, C.D.
phosphate, anhydrous dibasic,
4.00
.50
2
hydroxide, C.P.
mettalic
US$0.80
4.50
2.00
8.00
1.40
1.00
.90
1.40
.20
.50
.90
.50
.60
1.00
4.50
1.40
1.00
5.00
18.80
.50
.60
Stains:
Aniline blue, alc. sol.
100 gms.
Eur I
100
water sol.
25
II
"
II Eosin
Bismarck brown
Bordeaux red
Brilliant creel blue
Brilliant green
Carmine
alum
borax
Coo-hineal powder
Congo red
Cresyl violet
Crystal violet (gentian)
Eosin blue
yellow
6.25
6.25
6.00
50
16.00
400
100
100
9.00
4.10
4.10
6.00
2.00
6.00
6.00
25
25
100
100
50
100
25
25
50
100
100
5.00
1.50
1.00
6.00
3.50
5.80
5.80
6.25
6.25
6.00
16.00
36.00
4.10
4.10
6.00
2.00
6.00
6.00
5.00
1.50
1.00
6.00
3.50
5.80
5.80
45
Neutral red
Orange G.
Pyronin
Safranin 0
Sudan III
Toluidine blue
Vital red
Wright's stain powder
25
200
25
25
25
25
25
25
25
200
"
Methylene blue
25
"
. violet
25
"
.
. orange
25
"
green
100
"
Leishman stain powder
Methyl blue
25
"
"
Janus Green
"
"
Hematein crystal
Hematoxylin, Cop.
gms.
"
basic
"
.
100
100
100
200
"
Fuchain, acid
US$5.90
5.90
8.00
17.50
2.50
18.00
1.75
3.50
1.00
1.75
6.00
1.75
1.50
3.50
2.20
1.75
2.20
3.50
17.80
Total
US# 5.90
5.90
8.00
35.00
2.50
18.00
1.7
3.5
1.00
1.75
12.00
1.75
1.50
3.50
2.20
1.75
2.20
3.50
35.60
US 1062.90
46
Appendix 15
47
List of books and Journals Requested to be Appropriated by
the Rockefeller F undation
Note: The total price of the books and journals in this list is
estimated to be approximately US$1,300.00
I. Books
1. Ackert, J.E. Lab. Manual of Paresitology, 1938.
2. Alcook, A. Antonology for Medical Officers, London.
3. Appleyard, F.M. & Lyona, C.J. Practical Pharmneeutical Chemistry
3rd edit. 1937.
4. Ballantyne, F.M. Technique of Section-cutting, 1928.
5. Baylis, H.A. Manual of Helminthology, 1929.
6. Beck, R.C. Lab. Manual of Hematologic Technic 1938.
7. Bell, E.T. edit. by Textbook of Pathology, 3rd edit. 1938.
8. Beneley, R.R. is S.H. Handbook of Histological and cytological
Techni ue, 1938.
9. Beatley & Driver's Textbook of Pharmacnutical Chemistry, 3rd
Edit. 1937.
10. Blacklock, D.B. is Southwall, T. Guide to Human Parasitology,
3rd edit. 1938.
11. Bond, C.J. The Leucocyte 1. Health and Disease, 1924
12. Boyd, M.F. Introduction to Malariology. 1930.
13. Bray, N.E. Synopais of Clinical Laboratory Methods, 2nd edit.1938.
14. Bremor. J.L. Textbook of Histology, (5th edit. of Lowis
Stohr). 1936.
15. Brown, P. The Pregnant Woman, 1933.
16. Brumpt, E. (1927). r'ecis de areBitogie, Pario, Meeon et
17. Buxton, P.A. 1927. Researches in Polynesis and Melanesin. Parts
to IV. Medical Entomology, London.
18. Calkins, G.M. 1933. The Biology of the Protozoa, 2nd od.
Philadelphia.
19. Caltsoff, P.S. Lutz, F.E. Welch, P.S. and Needham, J.G.
Culture Methoda for Invertebrit Animals, 1937.
20. Castellani, A. Climate and A climitiation, End edit., 1938.
21. Ceol, R.T. edit. by, Textbook of Medicine, 4th Edit., 1937.
22. Chandler, A.C. Introduction to Human Perasitology, th Edit., 1936.
23. Chitwood, B.O. and Chitwood, M.B., An Introduction to Neuatology,
3 vol., 1937.
24. Chopra, R.N. Handbook of Tropical Therapeutice, 1936.
25. Cometock, J.H., An Introduction to Entomology, 1924.
26. Conn. H.J., Biological Stains, 3rd Edit., 1936.
27. Covell, G., Malaria Control by Anti-mos uito Measures, 1931.
28. Craig. C.F. and Faust, E.C., Clinical Parasitology, 1937.
29. Craig. C.F., Parasitic Protosoa of Man, 1926.
30. Curran, C.H. The Families and General of North American Dipters, 1934
31. Dilling, W.J. Pharmacology and Therapeutics of the Materia
Motion, 15th Edit., 1939.
32.
Doflein, F. and Reichenow, E., Lehrbuch der Protosoenkunde, 1928.
33. Downey, H. Handbook of Hematology, 4 vole., 1938.
34. Dunn, C.L., Malaria in Ceylon, 1936.
-235. Dyar, H.G., The Mosquitoes of the Americas, Carnegie Inst.
Publications No. 387. Washington, 1988.
48
36. Evans, A.M. Illus, Guide to Anophelines of Trop. & S. Africa, 1927.
37. Evans, A.M. Mosquitoes of the Ethiopian Region. pt. II,
Anophelini, Adults and Early Stages, 1938.
38. Ewings. H.E., A manual of External parasites. Springfield,
III., 1929.
39. Findlay, G.M. Recent Advances in Chemotherapy, End. Edit.1938.
40. Fuller, Chemistry Analysis of Drugs and Medicines.
41. Fuller, Qualitative Analysis of Medicinal preparations.
42. Fox. C. Insects and Disease of Man, 1925.
43. Galtsoff, P.S. Luts, F.E. Welch, .S. and Needham, J.G.
Culture methods for invertebrate animals, Ithaca, N.Y. 1937.
44. Gatenby, J.G. Biological Laboratory Technique, 1937.
45. Gater, B.A.R. Aids to the identification of Anopheline
imagines in Malaya. Singapore, 1935.
46. Ghosh, B.N. Hygiene and Public H alth with Special Reference
to Tropics, 9th Edit., 1938.
47. Gradwohl, R.B.E. Clinical Lab. Methods and Diagnosis, 2nd edit.
1938.
48. Hackett, L.W. Malaria in Europe, 1937.
49. Hall, M.C. Control of Animal Parasites: General Principles
and Their Application. pp. 162. Evanston, Ill. (Bailliere).
1936.
50. Handbook of Chemistry and Physics. Latest edition.
51. Hardenburg, W.E. Mosquito Eradication. New York. 1922.
52. Health Bulletin Series, Gov't of India Publications, Nos. 3.
5. 8, 10, 11, 12, 13, 14, 16, 17, and 18.
53. Heagner, R. Host-Parasite Relations between Man and His
Intestinal Protozoa. New York. 1927.
54. Hegner, R. and Andrews, J. Problems and Methods of Research
in Protozoology. New York. 1930.
55. Hegner, R. Cort. W.W. and Root, F.M. Outline of Medical
Zoology, New York. 1923.
56. Hegner, R. Rott, F.M. Augustine, D.L. & Huff, G.G.
Parasitology, 1938.
57. Hegner, R. and Taliaferro, W.H. Human Protesoology. New York.
19246
58. Howard, L.O. Dyar, H.G. and Knab, F. The Mosquitoes of North
and Central America and the Welt Indice. 4 vols. Carnegie
Inst. of Washington, Contribution No. 159. 1912-1917.
59. Imma. A.D. A general Textbook of Entomology, London. 1925.
60. International Health Board. 1924. The use of fish for Mosquito
Control. New York.
61. James, S.P. and Liston, W.G. The Anopholine Mosquitoes of
India. Calcutta, 1911.
62. Kay, L.A. The microscopical Study of Drugs, 1936.
65. Kennedy, A.M. Parasitology for Medical Students, 1925.
64. Kilduffe, R.A. Clinical Interpretation of Blood Examination.
1931.
-365. Kligler, I.J. Epidemiology and Control of Malari in Palestine
1950.
66. Kolmer, J.A. & Boerner, F. Approved Lab. Technic, 2nd edit.,
1938.
67. Knouff, R.A. Lab. Manual for Hietology, 1935.
68. Knowles, R. Introduction to Medical Protosoology, 1927.
69. Kracke, R.R. Dise see of the Blood and Atlas of Hematology. 1937.
70. Kudo, R.R. Handb ok of Protosoology, 1931.
71. Langen, C.D. De and Lichtenstein, A., Clinical Textbook of
Tropical Medicine, 1936.
72. Lee, A.B. Microtomist Vade Mecum, 10th edit., 1937.
73. Loewy, A. and Wittkower, E. Pathology of High Attitude
Climate, 1937.
74. MacGregor, M.S., Mosquito Surveys, 1927.
75. Magner, T. Textbook of Hemetology, 1938.
76. Mallory, F.B., Pathological Technique, 1938.
77. Manson-Bahr, H., Manson's Tropical Disesses, 1929.
78. Martini, E. Lehrbuch der Medisinischen Entomologie, 1923.
79. Methoson, R. Medical Entomology. 1932.
80. McClug, C.E., Microspical Techni ue, and edit., 1937.
81. Menon, T.B., Introduction to Tropical Pathology, 1932.
82. Mense. C. Handbuch der Tropen-Krankheiten. 3rd edit. 1924.
83. Methode of Analysis. .......
84. Minchin, E.A. Introduction to the Study of Protpson, 1912.
85. Monnig, H.O., Veterinary Helminthology and Entomology, 1936.
86. Nocht, B. and Mayer, Malaria Treatment, Parasitology and
Prevention, 1937.
87. Noyes, A.A., malitative Analysis.
88. Parker, R.C., The Method of Tissui Culture, 1938.
89. Patton, W.S. and Craige. F.W. A Textbook of Medical Entomology,
1913.
90. Patton, W.S. and Evans, A.M., Insects, Ticks, Mites, and
Venemous Animals of Medical and Veterinary Importance, 2 vols.
1929.
91. Phermacoposia of the United States.
92. Piney and-Wyard, S., Clinical Atlae of Blood Diseases, 4th edit.
1936.
93. Prowazek, S.V., and others, Handbuch der Pathogenen Protossen,
1911.
94. Ray, M.B., Hydrotherapy and Climatotherapy, 1936.
95. Riley, N.A. and Johannsen, O.A., Medical Entomology,
2nd edit., 1938.
96. Rivas, D. do, Clinical Parasitology and Tropical Medicine, 1935.
97. Rogers, L., Recent Advance in Tropical Medicine, 2nd Edit. 1929.
98. Ross, R. The Prevention of Malaria, 2nd edit., 1911.
99. Rudolf, G. de M., Therapeutic Malaria, 1927.
100. Smith, W. Parasitism and Disease, 1935.
101. Stephens, J.N.W., Blackwater Fever, 1937.
102. Stitt, E.R., Diagnosis and Treatment of Tropical Diseases,
3rd edit.
103. Stitt, E.R. et al. Practical Bacteriology, Hematology and
Animal Parasitology, 9th edit., 1938.
49
-4-
104. Stickland, C. and Chounbury, K.L., Illustration, Key to
50
Identification of Anopheline Larvae of India, Ceylon and
Malaya, 1932.
105. Swellengrebel, N.H. and Rodenweldt, E., Die Anophelen von
Hiederlandisch-Ostindien, Jena, 1932.
106. Taliaferro, W.H., The Immunology of Parasitic Infections, 1930.
107. The British Pharmacopoeia, Latest edit.
108. Theobald, F.V., A Monograph of the Cluicidae of the World,
1901-1910.
109. Thomson, J.C., and Robertson, A. Protosoology, 1929.
110. Todd, J.C. and Sanford, k.H., Clinical Diagnosis by Laboratory
Methods, 8th Edit., 1935.
111. Ward, H.B., and Whipple, G.C., Fresh Pater Biology, 1918.
112. Watson, M., The Prevention of Malaria in the Federated Malaya
States, 2nd edit., 1981.
113. Wenyon, C.M., Protoscology: A Manual for Medical Men,
Veterinarians and Zoologists, & vols. 1926.
114.
Tickranasuriya, G.A.W., Malaria and Ancylostomissis in
the Pregnant Woman, 1937.
115. Yorke, F. and Maplestone, The Nematode Parasites of
Vertibrates, 1926.
116. Eiemann, H. Malaria and Schwarzwasserfieber, 1924.
II. Journals
(Subscription for five years)
1. American Journal of Hygiene
2. American Journal of Tropical Diseases and Preventive Medicine
3. American Journal of Tropical Medicine
4. Annalea de Parasitologie
5. Annals of Tropical Medicine and Parasitology
6. Archiv fur Schiffs und Tropenhygiene
7. Biological Bulletin
8. Bulletin de la Societe de Pathologie Exotique
9. Bulletin of Entomological Research
10. Entomological News
11. Illinois Biological Monographs
18. Indian Journal of Medical Research
13. Indian Medical Gazette
14. Japan Medical World
15. Journal of Experimental Medicine
16. Journal of Experimental Zoology
17. Journal of Parasitology
18. Journal of the London School of Tropical Medicine
19. Journal of the Malaria Institute of India.
20. Journal of the Royal Army Medical Corps
21. Journal of Tropical Medicine and Hygiene
22. Kitasato Archieves of Experimental Medicine
23. Monographs of the Rockefeller Institute for Medical Research
24. Philippine Journal of Science, Section B.
25. Preceedings of the Society for Experimental Biology and Medicine
26. Sparterly Journal of Microscopical Science
27. Review of Applied Entomology
-5 51
28. Rivista di Malariologia
29. Transactions of the Royal Society of Tropical Medicine and
Hygiene
30.
Tropical Diseases Bulletin
31.
Tropical Veterinary Bulletin
32.
University of California Publications in Zoology
33.
Mentralblatt fur Bakteriologie und Farasitenkunde
TREASURY DEPARTMENT
Office of the Secretary
Secret Service Division
MEMORANDUM
October 5, 1939
To:
From:
Mrs. Klots
Mr. Wilson
There are attached copies of two
sohedules covering the President's
trip to Hyde Park, leaving Washington
this evening at eleven o'olook and
arriving Highland, New York, tomorrow
morning, October 6th, at eight thirty
o'clock.
52
CONFIDENTIAL
53
Trip of the President
to Hyde Park, New York.
Thursday, October 5, 1939.
Lv. Washington (Baltimore & Ohio Railroad) 11:00 p.m.
Friday, October 6, 1939.
Ar. Highland, N.Y. (West Shore N.Y.C.RR.)
8:30 a.m.
Members of the party:
The President.
Miss M. A. LeHand.
Mr. William D. Hassett.
Miss Grace Tully.
Mr. Henry M. Kannee.
Miss Grace E. Earle.
Mr. Dewey E. Long.
Mr. George A. Fox.
Mr. Leo A. de Waard.
Secret Service Agents.
Newspaper men:
Mr. George E. Durno,
Mr. Thomas F. Reynolds,
International News Service.
Mr. Felix Belair,
The New York Times.
Mr. Bruce Pinter,
The New York Herald Tribune.
The New York Daily News.
Mr. Douglas B. Cornell,
Mr. Walter Trohan,
The United Press.
The Associated Press.
The Chicago Tribune.
Mr. W.C. Murphy,
The Philadelphia Inquirer.
Mr. Carl Warren,
Picture men:
Mr. George Skadding,
Mr. Joseph Jamieson,
Mr. Douglas DuPont,
Associated Press Photos.
Times-Wide World Pictures.
Paramount News.
Brondcasting representatives:
National Broadcasting Co.
Mr. Carleton Smith,
National Broadcasting Co.
Mr. A. E. Johnson,
Telegraph representatives:
Mr. C. S. Linkins,
Mr. T. B. Bowen,
Western Union Tel. Co.
Postal Telegraph Co.
Mr. D. L. Moorman, G.P.A.
The Baltimore & Ohio Railroad Co.
In charge of Transportation.
54
OPERATING STOPS
Trip of the President
to Hyde Park, New York
Thursday, October 5, 1939
Lv. Washington (B&O)
11:00 p.m.
11:50 p.m.
Pass Baltimore
Friday, October 6, 1939
Pass Park Junction, Pa
Pass Bound Brook, N. J.
Ar. Claremont Junction, N. J.
Lv. Claremont Junction, N. J.
2:15 a.m.
3:35
4:20
4:30
** Brief operating stop at Cornwall, N. Y.
Ar. Marlboro, N.Y.
Lv. Marlboro, N.Y.
Ar. Highland, N.Y.
6:43
8:10
8:30 a.m.
October 5, 1939
3:55 p.m.
55
Operator: Go ahead.
Hello.
HMJr:
Robert
Wagner:
Henry?
HMJr:
Hello, Bob. How's my favorite Senator?
W:
All right. (Laughs) How are you? How's my favorite
Secretary of the Treasury?
HMJr:
W:
HMJr:
W:
HMJr:
W:
Now I didn't say New York Senator - I said "Senator".
I see. Thank you.
O. K.
Say, Henry, I tell you, I know you're busy and I
won't -- I -- you know I'm one fellow that doesn't
go near our friend Franklin because I know -- I
would only add to his burdens. I do want to talk
to you in the near future about -- I -- I don't
intend to do anything, I can tell you that right
off the reel, on this money study.
Anytime - I'm at your service.
You know, I don't -- you agree that just now it would
be -- it's not an appropriate time for that sort of
thing.
HMJr:
I agree wholeheartedly.
W:
Yeah. I mean, we are
HMJr:
Yeah, yeah.
W:
Yeah. Well anyway
HMJr:
Why don't.....
W:
HMJr:
I'11 find sometime when you're a little --
got a little leisure.
I've always got leisure when you're around.
-2W:
56
Yes. Well, I'm working on a speech I've got to make
Saturday night and I want to make mine on the floor
on Monday I think.
HMJr:
What are you doing around lunch time Tuesday?
W:
Next Tuesday?
HMJr:
Yes.
W:
Probably nothing.
HMJr:
Well, why don't you eat off
All right. Will you put me down for lunch?
One o'clock you and I at the Treasury.
W:
Yeah. That -- I liked that last time and if it's
HMJr:
W:
HMJr:
as good why I'll -- you see you bring me back.
It was a very nice place to eat.
Well, I -- I don't remember whether I gave you pig
knuckles and sauerkraut or what it was, but we'11
fix it up.
W:
Yeah.
HMJr:
O. K.
HMJr:
All right, Henry.
Two o'clock -- at one o'clock in the Treasury.
W:
One -- one o'clock on Tuesday. I hope you remember
W:
it.
HMJr:
(Laughs) Son-of-a-gun.
W:
Thank you. (Laughs)
HMJr:
All right.
W:
Goodbye.
lapy given to HSK to
be given to m. Joley
at 9:00 am 10/6/39
57
October 5, 1939
4:32 p.m.
HMJr:
Hello.
Operator:
Mr. Harrison.
HMJr:
Hello.
George
Harrison:
Hello, Henry.
HMJr:
Yes, George.
H:
I just thought I ought to report to you
HMJr:
Yes.
a conversation I've just had with Eccles.
H:
HMJr:
Right.
H:
He's here -- been here in the bank all day.
HMJr:
Oh, yes.
H:
And we referred to the matter about which you talked
HMJr:
Yes.
H:
And he said something about his lawyers having the
to him.
opinion that all fiscal agency matters that have
anything to do with abroad are subject to the
Board's approval.
HMJr:
H:
Yeah.
And that he thinks, as he understands it now, that
their lawyers would rule that if we had opened an
account such as you discussed I'd have to submit
it to them for approval. Not, he said, that he
would disapprove but as a matter of form, he says,
"I think it must go there."
HMJr:
Yeah.
H:
I told him that if it were done under the regular
banking authority I agreed with him.
-2-
58
HMJr:
Yes.
H:
But that I don't think I've got authority to open
this account under the banking authority, as I told
you before.
HMJr:
H:
Yeah.
That I'm doing it under the fiscal agency authority,
and my idea on that has always been, and is the one
we've practiced, that I work directly with you and
not with the Board.
HMJr:
H:
Yeah.
And I said, "I have a memorandum saying that the
matter of fiscal agency operations will be worked
out amicably between the Board and the Treasury."
HMJr:
Yes.
H:
Now I said, "Until you do that, I think that I'm on
the spot.'
HMJr:
Yeah.
because I deal confidentially with the Secretary. I don't even tell my own Board of Directors
or . go to them for authority
H:
.
HMJr:
Yeah.
H:
And I said, "I'm not going to the Board - at least
I -- unless there was an issue raised -- until the
whole question of jurisdiction 18 understood and
agreed to.
HMJr:
H:
Yeah.
We didn't settle anything except that he wants my
counsel to talk with his counsel to see whether
this shouldn't be submitted to the Board for approval, or even whether we might have authority to do
it as a fiscal agent.
HMJr:
Now will you do something for me?
H:
Yeah.
-3HMJr:
Will you have Logan also talk to Ed Foley?
H:
Yes, I'll be glad to.
HMJr:
And have him bring him up to date?
H:
Yes.
HMJr:
I'll tell Ed that he'11 expect a call from Logan
H:
That's right. But I just wanted you to know how
59
on this.
it has progressed.
HMJr:
I understand.
H:
And I think I'll have to have Logan talk to the
HMJr:
O. K.
H:
And then I'11 have him talk to Foley.
HMJr:
I appreciate very much your calling me.
H:
All right.
HMJr:
Thank you.
H:
I think it -- it's all right. I think there's no
Board's counsel.
disposition on his part to disagree at all.
HMJr:
No.
H:
But it's a question of -- you know
HMJr:
I understand.
H:
prestige and feelings, and the idea that they
would be the ones to stand the gaff if anything
was wrong, and that they probably ought to be given
an opportunity to approve.
HMJr:
Right. Well, thank you for calling, and if you
H:
All right. I will.
HMJr:
Thank you very much.
would tell Logan to -- also to speak to Ed Foley.
- 460
H:
First rate.
HMJr:
Good night.
H:
Good night.
61
PLAIN
JR
London
Dated October 5, 1939
REC'D 1:32 p.m.
Secretary of State,
Washington.
1941, October 5.
FOR TREASURY FROM BUTTERWORTH.
To the surprise of mcny in the city there was no
change in the bank rate today, which remiins at 3%, the
money and stock markets had anticipated and largely
discounted C. change of ct least 1/2% It would SEEM that
the lowering of the rate is being saved C.S a timely
stimulus for the launching of C. government loan and that
its flotation may not be for distent in view of the fact
that money rates have been out of touch with bank rate
since C. day or two after it WCS lowered from 4 to 3% last
WEEK immedictely after the budget. In spite of a return
of notes from circulation of pounds 3 million and C. drop
in public deposits of pounds 4.5 million shown in this
WEEK'S Bank of England return, there WC.3 a decline of
pounds 1 million in bankers deposits, Government securities
in the banking department having been reduced by pounds
6.7 million. his appears to indicate that the authorities
are not just yet preparing the market for C. new loan.
The
62
-2- #1941, October 5, from London.
The strength of sterling which is evident in NEW York is
also reflected in adjustments in the 01/10_01 rates for
continental currencies; the Dutch guilder WC.O fixed at
7.52060, the belga at 23.85 - 24.10, and the Swiss fronc
at 17.85-18.00 today, c.11 these currencies having been
also slightly depreciated yesterday in terms of sterling
according the official rates, 0.3 compared with those
reported in my No. 1890 of October 2, 4 p.m. With the
NEW York rate at 4.05, the British authorities are taking
dollars C.S positions in NEW York are being covered.
KENNEDY
CSB
eeer C on
THON
63
PLAIN
JI
London
Dated October 5, 1939
Rec'd 1:35 p.m.
Secretary of State
Washington
1940 Fifth
FOR TREASURY FROM BUTTERWORTH.
I venture to suggest that the lending article
in the DER DEUTSCHE VOLKSWIRT of September 8, 1939
on German war finance is worth obtaining and reading
in connection with No. 1926, October 4. Incidentally
this article has been circulated in several of the
British Government Departments concerned as worthy
of study.
KENNEDY
OSR
03V13038
eeer & in
TH3RTRA930 YRUPAGHT
03/13038
64
PLAIN
JI
PERI
i
London
in
Dated October 5, 1939
Rec'd 1.23 p.m.
Secretary of State
Washington
1939 October 5, 6 p.m.
FOR PURCELL FROM BUTTERFORTH
REfErENCE my 1930, October 4, 9 p.m.
In reply to questions in the HOUSE of Commons
this afternoon regarding the sale of Canadian
securities the Chancellor of the Exchequer stated
"Under the Canadian Exchange regulations purchases
of securities from non-residents are prohibited EXCEPT
with permission. I understand that permission is not
at present being granted by the Canadian authorities
for purchase from any non-resident whether in the
United Kingdom, the United States or Elsewhere. No
action hns been taken here beyond informing the stock
exchange and other inquirers of the position in Canada. #
The Canadian High Commissioner in London who cabled
Ottawa for information received a reply today confirming in substance the information contained in my
telegram to you of yesterday. Please inform Treasury.
KENNEDY
CBB
Hume
TREASURY DEPARTMENT
65
INTER OFFICE COMMUNICATION
DATE
TO
FROM
October 5, 1939
Secretary Morgenthau
Mr. Burgess
The attached will give you our views on the
financing on which we are all agreed.
Last night I discussed the matter with Marriner
Eccles and he was in favor of going ahead, but with a
short issue so that there would be little doubt about
its success. This noon Mr. Bell and I reviewed the matter
fully with the other Federal Reserve Board members,
Governor Eccles being away, and a large majority of
them were vigorously in favor of going ahead in accordance with the plan suggested. Mr. Ransom was the only
one who had any doubts. They were all also agreeable
to dispensing with a meeting of the Executive Committee
and handling the matter informally.
what
66
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE October 5, 1939
TO
Secretary Morgenthau
FROM
Mesers. Bailie, Burgess, and Bell
Memorandum
Here 18 our notion of a financing program.
(1) No final decision until Monday morning.
(2) Friday - Burgess to consult with New York Reserve
Bank and interview dealers as to condition of
market, and, with Bailie, to telephone Secretary
Morgenthau and Bell.
(3) Saturday - Bell to mail blank circulars to Federal
Reserve Banks (confidentially).
(4) Monday A.M. - Burgess to stay in New York, conferring with Harrison and Sproul, and checking
with market. Secretary Morgenthau, Bailie, and
Bell in Washington for final decision, conferring, if necessary, with Reserve Board.
No formal meeting of Executive Committee or interviews with dealers in Washington (to leave
complete freedom of decision).
(5) Monday 1:00 P.M. - Final information to go to
Reserve Banks.
(6) Tuesday A.M. - Books open with an announcement
they will be closed Wednesday night.
We consider it important to go through with this
program unless conditions are very adverse.
water
67
October 5, 1939
Secretary Morgenthan
Mr. Burgess
The attached will give you our views on the
financing on which we are all agreed.
Last night I discussed the matter with Marrinor
Eccles and he was in favor of going ahead, but with a
short issue so that there would be little doubt about
its success. This noon Mr. Bell and I reviewed the matter
fully with the other Federal Reserve Board members,
Governor Eccles being away, and a large majority of
them were vigorously in favor of going ahead in accordance with the plan suggested. Mr. Ranson was the only
one who had any doubts. They were all also agreeable
to dispensing with a meeting of the Executive Committee
and handling the matter informally.
(Initialed) W.R.B.
68
October 5, 1939
Secretary Morgenthan
Messrs. Bailie, Burgess, and Bell
Memorandus
Here is our notion of a financing program.
(1) No final decision until Monday morning.
(2) Friday - Burgess to consult with New York Reserve
Bank and interview dealers as to condition of
market,
and, with Bailie, to telephone Secretary
Morgenthau and Bell.
(3) Saturday - Bell to mail blank circulars to Federal
Reserve Banks (confidentially).
(4) Monday A.M. - Burgess to in New
and and
with ferring market. with Harrison Secretary stay Morgenthau, Sproul, York, Bailie, checking con-and
Bell in Washington for final decision, conferring, if necessary, with Reserve Board.
No formal meeting of Executive Committee or interviews with dealers in Washington (to leave
complete freedom of decision).
(5) Monday
1:00 P.M. - Final information to go to
Reserve Banks.
(6) Tuesday A.M. - Books open with an announcement
they will be closed Wednesday night.
We consider it important to go through with this
program unless conditions are very adverse.
(Initialed) W.R.B.
69
October 5. 1939
MEMORANDUM
To:
Mr. Livesey
From:
Mr. Geohran
Reference is made to Cablegram #2316, dated October 4,
1939. 10 P.M. from the American Ambassador at Paris.
Within recent weeks the United States Treasury has been
requested by the Central banks of various neutral European
countries to accept gold from them is Europe. The Treasury
has uniformly replied that in present circumstances 11 is
following the policy of purchasing gold only upon delivery
in New York. The Treasury sincerely regrets that it is
unable to deviate from this established practice.
HMD:
10.5.39
KMR
special messenger
DEPARTMENT OF STATE
ADVISER ON
INTERNATIONAL ECONOMIC AFFAIRS
By instruction of the Secretary
of State to be delivered to the
Secretary of the Treasury by
hand.
Hwing
Received 1.20 P.M.
Oct st 1939-
70 they
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Embassy, Paris, France
DATE: October 4, 10 p.m. , 1939.
NO.: 2316
RUSH.
pee Codrans
memo to
Livesey 10 015/39
SECRET. FOR THE PRESIDENT AND THE SECRETARY OF STATE.
I received a telephone call this evening from Daladier,
who said that he had a serious problem which he wished to
talk over immediately with me. I went at once to see him
at the War Ministry.
He said that the German Minister at Brussels four days
ago presented to the Belgian Government a note which stated
that his Government regarded the Belgian Government's
acquiescence in British blockade measures as a participation
of Belgium in the British blockade. This was intolerable
for Germany, and unless Belgium should take the position
that any goods which were received in Belgium could be sent
through to Germany without let or hindrance, Germany would
take the most violent measures against Belgium.
Similar notes couched in equally violent language were
presented on the same day to the Dutch and Swedish Govern-
ments by the German Ministers accredited to them.
The terms of the notes in each case were so insulting
and bellicose that the respective Ministers had wished,
but had not dared, to refuse to receive them.
The
71
-2The Belgian, Dutch and Swedish Governments informed
the British Government of these approaches by the German
Government, and the conclusion was reached that Germany
was looking for a pretext for invading Belgium, the Netherlands and Sweden.
The French and British Governments had sought to discover what reasons there might be for Germany to invade
the three countries. There were obvious military reasons.
Aside from them, it had seemed to all the Governments
concerned that probably Germany intensely desired to
acquire the gold now in Belgium, the Netherlands and
Sweden. In addition, there were vast stocks of diamonds
in Belgium and the Netherlands and an important stock of
wolfram in Belgium.
Daladier went on to say that the British Government
two days ago proposed to the Belgian, Dutch and Swedish
Governments that they should send their gold stocks to
Great Britain for safekeeping, and that Belgium and the
Netherlands should place the diamond stocks in security
in the same way, and that Belgium should remove to England
its wolfram stock.
Each of the three Governments replied individually
that it would not dare to send its stocks of gold either
to Great Britain or to France, since the Germans would
hold
72
-3hold such an act to be proof that these neutral Governments
were cooperating with the British and French Governments
and that this therefore justified the German argument with
regard to the blockade.
Daladier had been in contact with the British Government today and it was decided to ask me whether the Govern-
ment of the United States might not find it possible in one
way or another to acquire for safekeeping the gold holdings
of Belgium, the Netherlands and Sweden, and at the same
time Daladier wished to ask me whether some method could
not be devised for shipping the Belgian and Dutch diamond
stocks to the United States for safekeeping, and whether
the United States could not acquire the Belgian wolfram
stock.
I answered that I saw no objection of a legal character
to any of the Governments purchasing dollars with the gold
they now have in their possession. Obviously, since
Germany has been sinking Swedish and other neutral ships,
the Belgian and Dutch Governments would be reluctant to
place their gold reserves on board ships since the ships
might be sunk or captured. I had no idea whether or not
there was any possibility of the United States Government
acquiring the gold in question while it was still on the
European side of the Atlantic. The questions of the
diamonds
73
-4- diamonds and the wolfram would require special thought
and special handling, being very different from the question
of the gold.
Daladier asked me to report at once to you what he
had said, and I promised to do so.
I appreciate that there may be political reasons for
not taking any action whatsoever in this matter. It occurs
to me that if there are no political objections, the Secretary of the Treasury might individually and confidentially
inform the Belgian Ambassador and the Dutch and Swedish
Ministers at Washington that the United States Government
knew of the demarche of the German Government and that
within the framework of the Tripartite Monetary Agreement
the Government of the United States would be glad to purchase
for dollars the gold now held by the Ambassador's or the
Minister's country, and would be glad to sell it back to
his country, when it should have reached the United States,
after deducting transportation and insurance charges,
et cetera.
If there are no political objections, it might also
be possible to arrange that some large American diamond
importing house should purchase the diamonds in question
on an understanding that the Government in question should
repurchase them on arrival in New York, after deducting
duties
14
-5duties and other charges.
I do not know whether the wolfram could not be
acquired by the United States Government with part of
the appropriation for the purchase of strategic minerals.
Daladier did not have in mind what amounts of gold,
diamonds and wolfram were involved, but said that he would
have Georges Pernot bring me the details tomorrow. I
some
replied that until I had + indication from you that the
United States Government would be interested in pursuing
the matter further, I should prefer not to see the Minister
of Blockade.
In case you take up this matter, as I hope you will,
it might be wise to emphasize that we are merely ready as
loyal parties to the Tripartite Monetary Agreement to
try to cooperate with our associates in the Agreement,
and that we are not pressing them to take any such action
8.8 has been suggested.
After all, we have no direct indication that any one
of the three neutral Governments actually wishes to ship
gold, diamonds or wolfram to the United States. It is to
be remembered, on the other hand, that at the present
moment, the small European countries are 80 fearful of
attack by Germany and 80 suspicious that the German Govern-
ment has all their codes in its hands - which is probably
a fact
75
-6a fact - that it is doubtful whether any one of them
would dare to make any proposal of this kind by telegram
to Washington. However, they might be exceedingly glad
to receive a telegram from their representatives in Washington informing them that under such circumstances the
Government of the United States would be ready to cooperate
with them.
BULLITT.
COPY
76
GRAY
PAP
SS SANTA ELENA
Dated October 5, 1939
Rec'd 3:39 a.m. Oct. 6.
Secretary of State
Washington
46, October 5. 10 p.m.
FOR THE SECRETARY OF THE TREASURY.
My very grateful thanks to you for your message.
The results achieved in the economic and financial
field were made possible by the cooperation which you
and your associates afforded me and I want you to
know of my very real appreciation.
WELLES
CFW
77
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Embassy, Paris, France
DATE: October 5, 1939, 6 p.m.
NO.: 2340
FOR THE TREASURY.
We had lunch today with Robert Masson, who 18 the
General Manager of the Credit Lyonnais, and is one of the
soundest and most respected members in the financial community
in Paris. We asked him how he felt French exchange control
was functioning now. He said that the French still had many
unsolved problems and many headaches; however, in the change
over from a free economy, this was inevitable, and the
French had made much progress. He added that France was most
fortunate in having as Governor of the Bank of France and as
Minister of Finance two men who were not only intelligent
and practical but whose natural sympathies toward a liberal
economy resulted in a more understanding operation of exchange
control and corollary measures than would otherwise be the
case. H e mentioned that British restrictions were "much
more severe" though of course he appreciates the differences
in the problems of the two countries.
END SECTION ONE.
BULLITT.
EA:LWW
18
GRAY
PAP
PARIS
Dated October 5, 1939
REC'D 7:05 p.m.
Secretary of State
Washington
2340, October 5, 6 p.m. (SECTION TWO).
The French measure regarding foreign assets ( our
telegram No. 2028, September 18, 1 p.m. and 2253, Septem-
ber 29, 7 p.m.) he found particularly satisfactory. The
fact that French holders of foreign securities abroad
are merely required to declare them or carry them (*)
French banking account and are not obligated physically
to transfer them to France was decidedly advantageous.
(He mentioned for instance that SOME of his clients
have foreign securites in Switzerland. These, under
Swiss regulations, have been required to be turned over
to the authorities and have been buried somewhere in the
mountains at a spot known only to said authorities; to
obtain them and have them returned to Paris he said would
be both costly and complicated). Financially he shares
the optimistic views, as reported in our various telegrams, of the Government financial authorities in regard to the country's favorable situation. HE does not
bEliEVE
79
PAP -2- 2340, October 5, 6 p.m. (SECTION TWO) from Paris
bEliEVE that a Government long term loan will be Either
advisable or necessary for SOME months to COME and is
thus in accord with COUVEDE Murville's opinion (telegram
No. 2215, September 27, 8 p.m.). HE also expressed the
view (?) that France's war purchases abroad could be
taken care of without Embarrassment out of existing gold,
foreign Exchange and foreign security holdings without
recourse to long term credits for a period well in EXCESS of c. year, thus sharing Reynaud's optimism (our
telegram No. 1923, September 12, 6 p.m. )
BULLITT
JRL:CFY
(#) Apparent omission
80
PARAPHRASE OF SECTIONS THREE AND FOUR OF TELEGRAM NO.
2340 OF OCTOBER 5, 1939, FROM THE AMERICAN EMBASSY, PARIS.
It is also Masson's belief that, slowly and painfully,
the balances of normal commerce and industry are starting to
turn. However, he feels that progress will be slow, because
at best war plays havoc with normal commercial interchange,
production, credit, employment and transport. There is a
general feeling, moreover, that in marked contrast to mobilization of the military, civil evacuation problems and subsequent distribution and care of those who were evacuated
have not been handled well, thus adding another burden to
the inevitable confusion which exists in the "peace" areas
of the country. Reference: Embassy telegrams No. 2180
of September 26 and 2254 of September 29 - Masson believes
that there will be fairly general utilization of the Bank
of France discount facilities for those mobilized and those
who are temporarily in financial difficulties. He does not
think there will be many defaults in the end, however. He
cited the experiences of the World War to bear this out,
saying that a Frenchman will pay his obligations where there
is an element of the "optional" in contrast to his attitude
when a "compulsory" measure has been imposed.
Masson anticipates early trouble from the air from
Germany, just as most people in France do. He is preparing
to move as much of the routine administrative personnel
of his large organization as is possible; he said that 1f
they had two or three alarms of air raids during the day
and
81
-
2-
and as many at night, it becomes impossible to work both
from a physical and physiological standpoint. Therefore
he believed it best to send the personnel away from Paris,
but he himself plans to stay in the city as long as he can.
END OF MESSAGE.
BULLITT.
03413038
eeei
EA:LWW
400
82
TREASURY DEPARTMENT
WASHINGTON
October 5, 1939.
MEMORANDUM FOR THE SECRETARY:
Referring to Mr. Hull's letter of October 4, the S/S
JEAN LA FITTE did sail from Glasgow about September 17 and is
about due in New York. The S/S ANTINOUS did not sail and I
understand that the charter was disapproved by the Maritime
Commission and an effort was made to substitute another Amer-
ican ship for this vessel, I think, however, without success.
Since my memorandum to you of September 26, I think
this situation has rectified itself and is now pretty much a
closed matter, but at the time I did discuss this with you
I considered it a very dangerous situation.
Banil havis
I 6'0 &
83
October 5, 1939.
MEMORANDUM FOR THE SECRETARY:
Referring to Mr. Hull's letter of October 4, the S/B
JEAN LA FITTE did seil from Glasgow about September 17 and is
about due in New York. The S/S ANTINOUS did not sail and I
understand that the charter was disapproved by the Maritime
Commission and an effort was made to substitute another Amer-
ican ship for this vessel, I think, however, without success.
Since my memorandum to you of September 26, I think
this situation has rectified itself and is now pretty much a
closed matter, but at the time I did discuss this with you
I considered it a very dangerous situation.
Bases
84
October 5, 1939.
MEMORANDUM FOR THE SECRETARY:
Referring to Mr. Hull's letter of October 4, the B/S
JEAN LA FITTE did sail from Glasgow about September 17 and is
about due in New York. The 8/8 ANTINOUS did not sail and I
understand that the charter was disapproved by the Maritime
Commission and an effort was made to substitute another Amer-
loan ship for this vessel, I think, however, without success.
Since my memorandum to you of September 26, I think
this situation has rectified itself and is now pretty much a
closed matter, but at the time I did discuss this with you
I considered it a very dangerous situation.
BHidd
85
October 5, 1936.
MEMORANDUM FOR THE SECRETARY:
Referring to Mr. Hull's letter of October 4, the 8/8
JEAN LA FITTE did sail from Glasgow about September 17 and is
about due in New York. The S/S ANTINOUS did not sail and I
understand that the charter was disapproved by the Maritime
Commission and an effort was made to substitute another Amer-
ican ship for this vessel, 1 think, however, without success.
Since my memorandum to you of September 26, I think
this situation has rectified itself and is now pretty such a
closed matter, but at the time I did discuss this with you
I considered it a very dangerous situation.
BHids
THE SECRETARY OF THE TREASURY
86
October 5, 1939
MEMORANDUM FOR MR. BASIL HARRIS:
Please comment on this
for me.
H.M.Jr.
Biluben
87
THE SECRETARY OF STATE
WASHINGTON
October 4, 1939.
My dear Henry:
This refers to your note to me of September 27th,
enclosing a memorandum from Commissioner Harris.
I have obtained the following information, which I
am sure is reliable:
The Maritime Commission did not approve charters for
the ships mentioned in the memorandum. Under the original
terms of the Commission's Order No. 18, it was not necessary
for a ship owner to obtain the Commission's approval of a
charter of not more than one year's duration, and the one
year period was subsequently cut to six months. But
on
September 11, 1939, the Commission cancelled its Order No. 18,
and it is now no longer possible to charter an American ship
to a foreign charterer without the Commission's approval.
The Jean LaFitte and the Wacosta were chartered for one
voyage and are back in their owners' hands. The Antinous'
charter was never consummated, because the charterer sought
to substitute another ship and this was disapproved.
Via
Sincerely yours,
The Honorable
Henry Morgenthau, Jr.
Cordeestar
Secretary of the Treasury
Washington, D. 0.
Secretary Morganham
September 26, 1939.
MEMORANDUM FOR THE SECRETARY:
The Maritime Commission has given approval to the Waterman Steamship Company (an American company) to charter their
American flag steamers S/S JEAN LA FITTE and the S/S ANTINOUS to
the Anchor Line of Glasgow (a British company) for a veyage between
Glasgow and New York, replacing two British shipe that were withdrawn for troop carriers.
This is a similar situation to the 8/8 NACOSTA, which is
owned by the same company and likewise was chartered to the Anchor
Line and which was the first American flag ship stopped by a German
submarine. The ship's manifest was examined closely by the submarine Commander and the vessel was allowed to proceed, after three
hours delay, with a severe warning. All three vessels were chartered
to British owners before the President's Neutrality Preclamation,
and load from Glasgow to New York.
Inasmuch as the loading is done by British owners, and
these American ships replace British ships withdrawn for war
service, I consider charters of this nature extremely dangerous,
and it is my firm opinion that both of these charters should be
cancelled, regardless of when the charter was entered into, or
regardless of any expenses incurred.
(Signed)
BH/hkb
Barris
TREASURY DEPARTMENT
89
INTER OFFICE COMMUNICATION
DATE October 5, 1939
TO
Secretary Morgenthau
FROM
Mr. White
Subject: Has National Socialism Weakened or Strengthened
the Position of Capitalism in Germany?
The Nazis have weakened German capitalism in the following
ways:
1. They have eliminated the functions performed by
individual initiative and free enterprise in the economic
system.
The business man has no right to decide on price
policy, investments, and wage rates. By law, all prices
are stabilized at the level of October 17, 1936, and
no changes may take place without the prior consent of
the Reich Price Commissioner, nor extensions or improvements of plant be made wi thout prior approval. The fixing of wage contracts is in the hands of the official
Treuhande der Arbeit, and no competitive bidding up of
wages by employers is permitted.
In especially important industries it is not in
the business man's hands but in those of a number of
Plenipotentiary Commissioners to allocate raw materials,
standardize output, sanction expansions, and consolidate
firms.
The Nazis have taken over complete control of the
credit system and capital market so that they can canalize
all savings into public projects, ration credits, and
direct all new investment.
The Nazis have established complete control over
foreign trade and capital movements which are regulated
to suit the political objectives of the Nazi regime.
90
Secretary Morgenthau - 2
2. The Nazis have eliminated the usual forms of competition between businesses which are the mainspring of cap-
italism. They have fostered increasing cartelization of
industry and have intensified the concentration of economic
power.
3. The Nazis, while socially and politically springing
from the middle class, are destroying the economic base of
the middle class by directly forcing small firms out of busi-
ness, handicapping small firms through the system of economic
controls, by bearing down on small and independent entrepreneurs such as storekeepers, and eliminating the independent
artisans. The middle class is one of the essential features
and a potent reserve of a healthy capitalist system.
4. The Nazis have strengthened the feudal and anticapitalist features of German agriculture by preventing the
break-up of the large Junker estates, by establishing the
entailment of 700,000 family farms, and by rigorous govern-
ment control over agriculture. Private initiative and the
profit motive have been almost completely driven out of agriculture.
5. They have strengthened and exploited anti-capitalist
sentiment by contemptuously labelling the Western powers as
demoplutooracies and identifying Jews with capitalism.
They appear to have strengthened German capitalism in
the following ways:
1. They have destroyed the power of the independent
German trade unions and all opposition parties.
2. They have maintained such wage and price controls
and such a volume of government orders as to restore dividend
rates to a point equal to the highest pre-depression level.
The average dividend rate in April 1939 was 6.57 percent.
Many important industries paid much higher dividend rates.
3. They have eliminated unemployment and substituted a
chronic shortage of labor for a ohronic shortage of employment. The number of unemployed rose to a high of 6,000,000
in 1932, or almost a third of the labor force. Unemployment
today is negligible, totalling only 70,000 in May out of a
labor force of almost 22 millions.
91
Secretary Morgenthau - 3
4. They have altered the German tax system so as to
impose a greater share of the total tax burden than formerly
on the working class. The yield of the Reich sales tax rose
from 1 billion marks in 1928-9 to 3.357 billion in 1938-9.
The wage tax rose from 1.415 billion to 2.091 billion. Consumption taxes increased from 1.773 billion to 2.883 billion.
Customs revenues rose from 1.105 to 1.818 billion, on a
greatly diminished volume of trade.
5. They have opened up new areas for German business
in Austria, Czechoslovakia, Poland and Southeastern Europe.
But these measures actually weakened German capitalism because:
1. The destruction of trade unions and the submergence
of all opposition do not necessarily strengthen capitalism.
On the contrary they may actually weaken it by closing up
all safety valves and canalizing all opposition, however mild,
into a dangerously revolutionary direction.
2. A controlled economy 18 much less flexible and much
less capable of sustaining crises -- whether political or
economic -- than a free one. If ever the Nazi regime experiences a major defeat, or if ever the economic machine begins
to go into reverse, the process of disintegration will be that
much more rapid and irresistible.
3. The elimination of unemployment has been attained at
the cost of extensive sacrifices on the part of labor. Until
this month wage rates were maintained at depression levels,
and now they have been further reduced. Hours of labor have
been considerably lengthened, and mobility of labor is rigorously controlled by the State. The cost of living has risen,
social services have been cut, and levies on the workers' income increased. Total money wages in Germany are actually
less now than in 1929, although employment 18 greater, and
the real wages of all labor much lower. In this situation
the capitalistic system can only hold together by the avoid-
ance of any political defeat or economic reversal.
4. The increase in the income of German capitalists is
to
some extent illusory because all profits above 6 percent
must be reinvested in government securities and because of
the extremely high tax rates on individuals and corporations.
Moreover with the elimination of the middle class this increased
income is shared by a smaller part of the population.
92
Secretary Morgenthau - 4
5. The areas opened up to economic exploitation by
Nazi conquests are unpromising and are a much less adequate
outlet for German enterprise than free international trade
would be. To a considerable degree the new areas added to
the Reich are not complementary but competitive with the
economy of the Old Reich, and none contains the essential raw
materials in which the Reich is lacking. In any case they
are a less fruitful field for commercial intercourse with
the Reich than the old markets it has lost.
93
GRAY
JIL
PARIS
Dated:October 5, 1939
Rec'd 5:25 p.m.
Secretary of State,
Washington.
2343, October 5, 7 p.m. (SECTION ONE)
FOR ONE TREASURY
The securities market WES active and moved up
today partly on the basic of Daladier's firm declaretions before the Foreign Affairs Committee of the
Chamber yesterday and partly on the belief that Italy
will not len herself to Germany's "peace" maneuver.
Both French and international issues advanced, Suez
rising another 375 francs. Rentes registered advances
ranging from 45 centimes to 1.25 on the firmness of the
franc in NEW York yesterday.
The Journal Official today publishes the decree setting up the general food supply SERVICE and the decree
concerning the wheat office (our telegram No. 2309,
October 4, 6 p.m.)
BULLITT
EMB
94
GRAY
JIL
PARIS
Dated October 5, 1939
Rec'd 7:15 p.m.
Secretary of State,
Washington.
2343, October 5, 7 p.m. (SECTIO TWO)
A further measure in the Journal Official regulates
the landlord-tenant relationship in wartime. It provides among other things that mobilized persons may cancel
their leases or obtain rent reductions up to 75% unless
the landlord can prove that the tenant is able to pay
more. Business people and individuals whose financial
situation has been changed by the war may be granted
similar reductions in agreement with their landlord or
by virtue of a court judgment in lieu thereof. For
their part landlords adversely affected by the provisions
of this decree will be permitted to obtain postponement of
interest payment on mortgages and those with meager re-
sources unable to collect rent due them will be entitled
to SEEK relief payments from the public authorities in
spite of their previously ineligible status as property
owners.
(END SECTION TWO)
NPL
BULLITT
95
GRAY
CJ
PARIS
Dated October 5, 1939
REC'D 7:12 p.m.
Secretary of State,
Washington.
2343, October 5, 7 p.m. (SECTION THREE).
The Bank of France statement dated September 28
published today reveals that commercial advances further
decreased by 843,000,000 francs. Advances against securities decreased by 16,000,000 francs and thirty day advances by 645,000,000. Advances to the state under the
recently authorized 25,000,000,000 amount tok2,200,000,000.
The note circulation increased by 624,000,000. Current
and deposit accounts decreased by 591,000,000. The
Treasury account was reduced by 210,000,000, to a total
of 342,000,000. Open market operations are down 16.5
millions. The ratio of gold COVER decreased from 59.03%
to 58.98%
(END OF MESSAGE).
BULLITT
EMB
erer a on
10-5-39
FROM: MR. GASTON'S OFFICE
TO:
96
The Secretary
M iral Stark sent by hand to Waesche last
night a memo containing this information:
Amiral Raeder of the German navy called in
0112° naval attache last night and told him they
had information an attack would be made "off
the American Coast" on the Maritime Commission
thip Iroquoia which left Cobh Tuesday evehing
with refugees for U.S., that it would be "under
similar circuistances to Athenia incident and
designed to create antagonism against Germany,
int the ship if she arrived safely
should be thoroughly searched for explosives.
The President and Maritime Commission have been
informed by Havy and these steps taken:
The information has been radioed to the master
of the Iroquois by international code. Two
festroyers EXERCISE of the patrol have been ordered
to convoy the ship and London and Berlin have been
notified that American warvessels will fire on
any craft seen attacking an American merchant
vest 1. All available cutters will patrol trans-
Atlantic sealane off our Coast. Arran rements for
rearch in New York are being made. I have informed
Fris. Germane plainly imply British are doing
this but there seems reason to suspect a German
pront hey have planted explosive on the ship--
if the thing is not altogether a cock-and-bull
story by the Germans.
you
15-6-39
3.25 pm
FROM: MR. GASTON'S OFFICE
TO:
97
The Secretary
The message about the sub arine off Cape
Florida came in to Coast Guard headquarters
about 12:30. It was in code. After decoding
Co mander Hershfield began phoning about 1.
Frank Rose and I were both out to lunch and
he didn't think he should give it to one of
the girls. He not Rose as soon as possible
of 02 his return.
Altital Stark on receipt of the message
imediately phoned Hyde Park and asked for the
President. He not word the President was out
1. is sunder house and didn't want to be disturbed,
but that Stark should call back at 4:30. When
be does this he will also tell the President about
the Columbus, which news Waesche gave him.
and miami
Cheache is calling Jacksonville about the delay,
me will also tell operators and others down the in
lime about expediting these obviously important
neam ges. I have told Waesche to give such messages
T
to anybody in wy office. The two secretaries always
Where to get me.
10-6-29
cartan hingenthan:
1:50
FROM: MR. GASTON'S OFFICE
98
October 6, 1939
TO:
MR. GASTON
Comd'r Hirschfield phoned at 1:45
p.m. the following message from the Coast
Guard Miami Air Station:
Sent 10:00 a.m. this morning.
Unidentified submarine sighted by seaplane V-112, .fifteen miles east of Cape
Florida. Submarine immediately submerged.
P.S. Cape Florida is seven miles south
of the entrance to Miami harbor.
TOP
any reports no - u.s. and in
that about today through me
lassed There yestular This
The just verified report
come to other
my notice
a
hamarine
Thanthe
u. S.
of our coast.
7reg.
10-6-39
FROM: MR. GASTON'S OFFICE
TO:
99
The Secretary
3:02 p.m.
Waesche is working personally on the submarine
matter and will call me back.
Our radio men just now intercepted a message
sent in plain language (French) by a station in
the French West Indies and apparently intended
for French and British warvessels in those waters
saying the German steamship Columbus had just
sailed from Vera Cruz.
as
100
GRAY
ED6
BERLIN
Dated October 5, 1939
RECEIVED 8:40 p.m.
Secretary of State
Washington
1601, October 5, 7 p.m.
For several days rumors have been current that
Germany would send a large trade delegation to Moscow.
The first confirmation of the runor appeared in this
afternoon's report of the German official telegraph
agency which carries the following despatch from
Moscow:
"According to informed sources the German trade
delegation is Expected in Moscow on October 7 to
conduct negotiations with the appropriate authorities
looking toward the development of trade Exchanges
between Germany and the Soviet Union which was forecast in the German Soviet treaty of September 28.
Minister Schnurre will be at the head of the delegation. Representatives of the larger German firms and
concerns are also expected in Moscow whose task it
will be to set in motion an immediate practical realization of t E trade agreements".
Inform Treasury:
KIRK
RR
101
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE October 6, 1939
10 am
Secretary Morgenthau
FROM
W. H. Hadley
Short Term Issues
A two-year CCC note would sell at 5/8ths of a point premium
on a 1-1/8% coupon and 7/8ths of a point premium on a 1-1/4% coupon.
A three-year RFC issue would sell at about 5/8 ths of a point
premium on a 1-1/4% coupon and about 1 point premium on a 1-3/8%
coupon.
A four-year Treasury note would sell at about 3/4s of a point
premium on a 1-1/4% coupon and about 1-1/4 points premium on a
1-3/8 coupon.
A five-year Treasury note would sell at about 3/4a of a point
premium on a 1-1/4% coupon and about 1-1/4 points premium on a
1-3/8% coupon.
TREASURY DEPARTMENT
C
0
INTER OFFICE COMMUNICATION
P
Y
DATE
TO
Secretary Morgenthau
FROM
Mr. Foley
October 6, 1939.
Re: Your Request for Information on the
Anti-Smuggling Act.
The Anti-Smuggling Act of August 5, 1935, was sponsored by the
Treasury Department as a result of the widespread post-repeal smuggling of
liquor into the United States along our seaboards which, at its peak in late
1934 and early 1935, was estimated to be costing the Government $30,000,000
annually in revenue losses. You will remember that on March 8, 1935, you
appeared at hearings held by the Ways and Means Committee on this bill and
made a strong statement in its support.
The Act, which widely extended the jurisdiction of the United States
over the waters adjoining its coasts, is based on the legal theory that
while a nation may not extend its territorial waters (which most nations,
including the United States, regard as extending to a distance of three miles
from shore, and within which the jurisdiction of a nation is as absolute and
omplete, broadly speaking, as if the land extended up to that point), a nation
may, under international law, exercise limited jurisdiction for purposes of
national safety and protection of the revenue to such a distance from its
shores as is reasonably necessary for those purposes. That zone, which will
differ with circumstances and cases, is sometimes referred to as jurisdictional
waters.
The provision of the Anti-Smuggling Act which has attracted the most
interest and comment is section 1, which provides for the establishment of
"customs-enforcement areas". That section authorizes the creation of such
areas beyond the existing 12-mile limit of customs control whenever the
President finds and declares that vessels are hovering or being kept off the
coast of the United States outside customs waters, and that, by virtue of
their presence, the unlawful introduction into or removal from the United
States of merchandise or persons may be accomplished or threatened. The
establishment of such areas is made subject to two geographical limitations:
(1) only such waters on the high seas should be within a customs-enforcement
area as are in such proximity to vessels hovering or being kept off the coast
that the smuggling of merchandise or persons may be carried on by, to, or
from such vessels; (2) no customs-enforcement area shall include waters more
than 100 miles in either direction up and down the coast from the immediate
area where the vessels involved are present (that is, 200 miles in all) or
more than 50 miles out to sea beyond the existing 12-mile customs limit
3
-2(that is, a total of 62 miles seaward). Within those customs-enforcement
areas coast guard and customs officers, or other persons authorized by the
Secretary of the Treasury, are empowered to enforce those laws which apply
to the high seas adjacent to American customs waters.
Sections 1 and 203 of the Act contain provisions authorizing American
officers to board, search, and seize vessels in customs-enforcement areas
when the circumstances warrant it.
It should be noted, however, that there are specific provisions in
the Act precluding American officers from enforcing laws in customs-enforcement
areas against vessels of nations with which we have treaties where such action
would contravene treaties. The treaties which are contemplated in those pro-
visions of the Act are the so-called liquor treaties which the United States
has with 16 other nations, including Germany, France, Poland, and England,
which treaties authorize seizure of the vessels of such nations only within
an hour's sailing distance of the coast.
Five customs-enforcement areas were set up by presidential proclamation
between August and December 1935. Three of those extend in a line approximately
from the Canadian border to Atlantic City, New Jersey, and the other two are in
the Gulf of Mexico. Although liquor smuggling activity is now virtually nonexistent in those areas, the areas have never been terminated by presidential
proclamation, which is required by section 1 of the Act.
The remaining provisions of the Act may be covered briefly. From the
standpoint of combating smuggling, the most important is section 3, which sub-
jects to forfeiture vessels built, fitted out, or employed for smuggling or to
defraud the revenue. Other sections of the Act (1) prohibit smuggling offenses
by our nationals and vessels against the revenue laws of such foreign countries
as reciprocate by similarly penalizing their nationals and vessels for smuggling
into the United States; (2) provide for the general increase of fines and
penalties relative to smuggling and for the penalizing of acts particularly
indicative of sauggling activity but not otherwise covered by law; (3) provide
for effective administrative control over boats of less than 500 tons (which is
the type of boat usually used for liquor smuggling), and for similar control
over small contact boats which bring the contraband from hovering vessels; (4)
provide for changes in rules in proof in forfeiture proceedings to enable effective handling of such cases.
It is worth noting that the phrase "hovering vessel", which is used
frequently throughout the Act, is defined in the Act to mean a vessel found or
kept off our coast within or without customs waters if, from all the circumstances,
it is reasonable to believe that that vessel is being or may be used to facilitate
"the introduction or attempted introduction of merchandise into the United States
in violation of the laws respecting the revenue".
-3Two provisions of the Act which are perhaps worthy of separate
mention are sections 205 and 206. Section 205 prescribes penalties and
forfeitures for vessels from foreign ports or places which (1) unlade any
merchandise within the customs waters of the United States without permit;
(2) tranship liquor, or merchandise the importation of which into the
United States is prohibited, to vessels of the United States within or
without customs waters; or (3) tranship liquor, or merchandise the importation of which into the United States is prohibited, to any vessel within or
without customs waters if the circumstances indicate a purpose to have the
liquor or merchandise snuggled into the United States. Section 206 subjects
to boarding and search any hovering vessel (as defined above), any vessel
which fails within customs waters (12 miles) or within a customs-enforoement
area to display lights required by law, or any vessel which fails to stop
when required to by a customs or coast guard officer. Such vessels may be
brought into an American port for examination, and for forfeiture if dutiable
merchandise destined to the United States is found to be, or to have been,
on board the vessel.
The Anti-Smuggling Act has been markedly successful in results. To
it, as well as to the Treasury's more effectively coordinated enforcement
activities, may be attributed the virtually complete elimination of post-
repeal liquor smuggling which was once costing the Government $30,000,000
year. The effect of the Act, however, has perhaps been largely psychological
ince there have actually been relatively few cases made under it and there
has been only one reported court opinion construing it. The Reidum (D.C.,
E.D.N.Y., 1936) 14 F. Supp. 771; 15 F. Supp. 112.
In this connection, I think you will be interested in the attached
reprint which we have just received of an article by a Professor of
International Law at Cornell University which recently appeared in French
in a Belgium periodical of international law, "La revue de Droit international
et de Legislation Comparee". This article quotes at some length your testimony
in 1935 before the Ways and Means Committee on the Anti-Smuggling Bill (see
page 3 of the reprint), as well as other statements made by you. The article
concludes that the Anti-Smuggling Act represents a sound exercise of extra-
territorial jurisdiction on the part of this country under international law
and that the Act has been eminently successful.
(Initialed) E. H. F. Jr.
Original sent to the President 10/6'39
Attachments
105
)
PUBLIC-No. 238-74TH CONGRESS]
[H. R. 7980
AN ACT
I
To protect the revenue of the United States and provide measures for the more
effective enforcement of the laws respecting the revenue, to prevent smuggling,
to authorize customs-enforcement areas, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
TITLE I
SECTION 1. (a) Whenever the President finds and declares that
at any place or within any area on the high seas adjacent to but
)
outside customs waters any vessel or vessels hover or are being kept
off the coast of the United States and that, by virtue of the presence
of any such vessel or vessels at such place or within such area, the
unlawful introduction or removal into or from the United States
of any merchandise or person is being or may be occasioned, promoted. or threatened, the place or area so found and declared shall
constitute a customs-enforcement area for the purposes of this Act.
Only such waters on the high seas shall be within a stoms-enforce
ment area as the President finds and declares are in such proximity
to such vessel or vessels that such unlawful introduction or removal
of merchandise or persons may be carried on by or to or from such
vessel or vessels, No customs-enforcement area shall include any
waters more than one hundred nautical miles from the place or
immediate area where the President declares such vessel or vessels
are hovering or are being kept and, notwithstanding the foregoing
1
provision, shall not include any waters more than fifty nautical
miles outwards from the outer limit of customs waters. Whenever
the President finds that, within any customs-enforcement area, the
circumstances no longer exist which gave rise to the declaration of
such area as a customs-enforcement area, he shall so declare, and
thereafter. and until a further finding and declaration is made under
this subsection with respect to waters within such area, no waters
within such area shall constitute a part of such customs-enforcement
area. The provisions of law applying to the high seas adjacent to
customs waters of the United States shall be enforced in a customsenforcement area upon any vessel, merchandise, or person found
therein.
(b) At any place within a customs-enforcement area the several
officers of the customs may go on board of any vessel and examine
the vessel and any merchandise or person on board, and bring the
same into port, and, subject to regulations of the Secretary of the
Treasury, it shall be their duty to pursue and seize or arrest and
otherwise enforce upon such vessel. merchandise, or person, the provisions of law which are made effective thereto in pursuance of subsection (a) in the same manner as such officers are or may be authorized or required to do in like case at any place in the United States
)
2
(Pvs mail
of any law respecting the revenue: Provided, That nothing
by virtue in this section or in any other provision of law respecting
contained shall be construed to authorize or to require any office1
the to enforce any upon high seas
ofthevessel
in contravention of any treaty a foreign
revenue a United foreign States law the thereof authorities with of the the
upon or
permitting United
examine, search, seize, or to
States government to board, enabling otherwise enforce upon
vessel upon the high seas the laws of the United States except
such such authorities are or may otherwise be enabled or permitted
as under special arrangement with such foreign government: Provided
further, That none of the provisions of this Act shall be construed
to relieve the Secretary of Commerce of any authority, responsibility, or jurisdiction now vested in or imposed on that officer.
SEC. 2. (a) Any person owning in whole or in part any vessel of
the United States who employs, or participates in, or allows the
employment of, such vessel for the purpose of smuggling, or attempting to smuggle, or assisting in smuggling, any merchandise into the
territory of any foreign government in violation of the laws there in
force, if under the laws of such foreign government any penalty or
forfeiture is provided for violation of the laws of the United States
respecting the customs revenue, and any citizen of, or person domieiled in, or any corporation incorporated in, the United States, con-
trolling or substantially participating in the control of any such
vessel, directly or indirectly, whether through ownership of corporate shares or otherwise, and allowing the employment of said
vessel for any such purpose, and any person found, or discovered to
have been, on board of any such vessel so employed and participating
or assisting in any such purpose, shall be liable to a fine of not more
than $5,000 or to imprisonment for not more than two years, or to
both such fine and imprisonment.
(b) It shall constitute an offense under this section to hire out or
charter a vessel if the lessor or charterer has knowledge that, or if
such vessel is leased or chartered under circumstances which would
give rise to a reasonable belief that, the lessee or person chartering
the vessel intends to employ such vessel for any of the purpose
described in subsection (a) and if such vessel is, during the time
such lease or charter is in effect, employed for any such purpose.
SEC. 3. (a) Whenever any vessel which shall have been built, purchased, fitted out in whole or in part, or held, in the United States
or elsewhere, for the purpose of being employed to defraud the revenue or to smuggle any merchandise into the United States, or to
smuggle any merchandise into the territory of any foreign government in violation of the laws there in force, if under the laws of such
foreign government any penalty or forfeiture is provided for violation of the laws of the United States respecting the customs revenue,
or whenever any vessel which shall be found, or discovered to have
been, employed, or attempted to be employed, within the United
States for any such purpose, or in anywise in assistance thereof, or
whenever any vessel of the United States which shall be found, or
discovered to have been, employed, or attempted to be employed at
any place, for any such purpose, or in anywise in assistance thereof,
if not subsequently forfeited to the United States or to a foreign
government, is found at any place at which any such vessel may be
106
[PUB.238.]
3
examined by an officer of the customs in the enforcement of any
respecting the revenue, the said vessel and its cargo shall be
seized and forfeited.
(b) Every vessel which is documented, owned, or controlled in
the United States, and every vessel of foreign registry which is,
directly or indirectly, substantially owned or controlled by any
citizen of, or corporation incorporated, owned, or controlled in,
the United States, shall, for the purposes of this section, be deemed
a vessel of the United States.
(c) For the purposes of this section, the fact that a vessel has
become subject to pursuit as provided in section 581 of the Tariff
Act of 1930, as amended, or is a hovering vessel, or that a vessel
fails, at any place within the customs waters of the United States or
within a customs-enforcement area, to display lights as required by
law, shall be prima facie evidence that such vessel is being, or has
been, or is attempted to be employed to defraud the revenue of the
United States.
SEC. 4. Subject to appeal to the Secretary of Commerce and under
such regulations as he may prescribe, whenever the collector of
customs of the district in which any vessel is, or is sought to be,
registered, enrolled, licensed, or numbered, is shown upon evidence
which he deems sufficient that such vessel is being, or is intended to
be. employed to smuggle, transport, or otherwise assist in the unlaw-
ful introduction or importation into the United States of any merchandise or person, or to smuggle any merchandise into the territory of any foreign government in violation of the laws there in
force, if under the laws of such foreign government any penalty or
forfeiture is provided for violation of the laws of the United States
respecting the customs revenue, or whenever, from the design or
fittings of any vessel or the nature of any repairs made thereon, it
is apparent to such collector that such vessel has been built or
adapted for the purpose of smuggling merchandise, the said colJector shall revoke the registry, enrollment, license, or number of
C.id vessel or refuse the same if application be made therefor, as
the case may be. Such collector and all persons acting by or under
his direction shall be indemnified from any penalties or actions for
damages for carrying out the provisions of this section.
SEC. 5. Any vessel or vehicle forfeited to the United States,
whether summarily or by a decree of any court, for violation of
any law respecting the revenue, may, in the discretion of the Secretary of the Treasury, if he deems it necessary to protect the revenue
of the United States, be destroyed in lieu of the sale thereof under
existing law.
SEC. 6. Except into the districts adjoining to the Dominion of
Canada, or into the districts adjacent to Mexico, no merchandise of
foreign growth or manufacture subject to the payment of duties
shall be brought into the United States from any foreign port or
place, or from any hovering vessel, in any vessel of less than thirty
net tons burden without special license granted by the Secretary of
the Treasury under such conditions as he may prescribe, nor in any
other manner than by sea, except by aircraft duly licensed in accord-
ance with law, or landed or unladen at any other port than is
directed by law, under the penalty of seizure and forfeiture of all
4
07
(PUB 288.)
5
(PUB 238.)
vessels or aircraft and of the merchandise imported
such unlicensed or unladen in any manner. Marks, labels, brands
therein, landed indicative of foreign origin, upon or accompanying mer.
or stamps, containers of merchandise found upon any such vessel
(
chandise
aircraft. or shall be prima facie evidence of the foreign origin of
or
port or other place without the United States, which facts may be
evidenced by the testimony or depositions of foreign administrative
officials or certified copies of their records or by other sufficient evidence, shall, in addition to any other penalties provided by law,
be liable to a fine of not more than $1,000 or to imprisonment for not
more than two years, or to both such fine and imprisonment.
TITLE II
such merchandise. In addition to any other requirement of law, every vessel,
Srx. 7. five hundred net tons, from a foreign port or place.
not exceeding has visited a hovering vessel, shall carry a certificate for
SECTION 201. Section 401 of the Tariff Act of 1930 (U. S. C.,
Supp. VII, title 19, sec. 1401) is amended by adding at the end
or which into the United States of any spirits, wines, or other
the importation liquors on board thereof (sea stores excepted), destined to
alcoholic United States, said certificate to be issued by a consular officer
thereof the following new paragraphs:
"(1) OFFICER OF THE CUSTOMS.- The term officer of the customs'
means any officer of the Customs Service or any commissioned, warrant, or petty officer of the Coast Guard, or agent or other person
authorized by law or by the Secretary of the Treasury, or appointed
the United States or other authorized person pursuant to such
of the as the Secretary of State and the Secretary of the Treasregulations jointly prescribe. Any spirits, wines, or other alcoholic
in writing by a collector, to perform the duties of an officer of the
ury may (sea stores excepted) found. or discovered to have been, upon
Customs Service.
liquors such vessel at any place in the United States, or within the
any waters, without said certificate on board, which are not
"(m) CUSTOMS WATERS.-The term customs waters' means, in
the case of a foreign vessel subject to a treaty or other arrangement
between a foreign government and the United States enabling or
permitting the authorities of the United States to board, examine,
search, seize. or otherwise to enforce upon such vessel upon the high
seas the laws of the United States, the waters within such distance
of the coast of the United States as the said authorities are or may
be so enabled or permitted by such treaty or arrangement and, in
the case of every other vessel, the waters within four leagues of the
coast of the United States.
"(n) HOVERING VESSEL-The term 'hovering vessel means any
shown customs to have a bona fide destination without the United States,
shall be seized and forfeited and. in the case of any such merchandise
destined to a foreign port or place, a bond shall be required in
double so the amount of the duties to which such merchandise would
be subject if imported into the United States, conditioned upon the
delivery of said merchandise at such foreign port or place as may
be certified by a consular officer of the United States or otherwise
as provided in said regulations: Provided. That if the collector shall
be satisfied that the certificate required for the importation of any
spirits, wines, or other alcoholic liquors was issued and was lost or
mislaid without fraud, or was defaced by accident, or is incorrect
by reason of clerical error or other mistake, said penalties shall not
be incurred nor shall such bond be required. This section shall take
effect on the sixtieth day following the enactment of this Act.
Sec. 8. (a) If the master of any vessel of the United States, not
exceeding five hundred net tons, allows such vessel to be laden at até
foreign port or other place without the United States with any merchandise destined to the United States and consisting of any spirits,
wines, or other alcoholic liquors (sea stores excepted), which facts
may be evidenced by the testimony or depositions of foreign administrative officials or certified copies of their records or by other sufficient evidence. without certificate issued for the importation of such
merchandise into the United States as required by section 7. the
master of such vessel shall, in addition to any other penalties provided by law. be liable to a penalty equal to the value of the said
merchandise but not less than $1,000 and such vessel and such merchandise shall be seized and forfeited.
(b) Whoever, being a citizen of the United States or a master of
a member of the crew of a vessel of the United States, if such vessel
does not exceed five hundred net tons, shall, with intent to defraud
the revenue of the United States, procure, or aid or assist in procuring. any merchandise destined to the United States and consisting of any spirits, wines, or other alcoholic liquors, without certifi-
cate issued for the importation thereof into the United States as
required by section 7. to be laden upon such vessel at any foreign
vessel which is found or kept off the coast of the United States
within or without the customs waters, if. from the history, conduct,
character. or location of the vessel, it is reasonable to believe that
(
such vessel is being used or may be used to introduce or promote or
facilitate the introduction or attempted introduction of merchandise
into the United States in violation of the laws respecting the revenue.
For the purposes of sections 432, 433, 434, 448, 585, and 586 of
this Act. any vessel which has visited any hovering vessel shall be
deemed to arrive or have arrived, as the case may be, from a foreign
port or place."
SEC. 202. Section 436 of the Tariff Act of 1930 (U. S. C., Supp.
VII, title 19, sec. 1436) is amended by omitting the period at the
end thereof and adding the following: and, if the vessel have, or
be discovered to have had, on board any merchandise (sea stores
excepted), the importation of which into the United States is prohibited, or any spirits, wines, or other alcoholic liquors, such master
shall be subject to an additional fine of not more than $2,000 or to
imprisonment for not more than one year, or to both such fine and
imprisonment.
Every master who presents a forged, altered, or false document
or paper on making entry of a vessel as required by section 434 or
435 of this Act. knowing the same to be forged, altered. or false and
with out revealing the fact, shall, in addition to any forfeiture to
which in consequence the vessel may be subject, be liable to a fine of
08
6
(Pta.298
$5,000 nor less than $50 or to imprisonment for not
not more than or to both such fine and imprisonment."
[Pva. 238.]
become liable to seizure, and to arrest any person who shall become
liable to arrest, by virtue of any law respecting the revenue, as well
without as within their respective districts, and to use all necessary
force to seize or arrest the same.
(
more than two years, Section 581 of the Tariff Act of 1930 (U. S. C.,
SEC. VII, 203 title (a) 19. sec. 1581) is amended to read as follows:
Supp.
"(g) Any vessel, within or without the customs waters, from
which any merchandise is being, or has been, unlawfully introduced
into the United States by means of any boat belonging to, or owned,
controlled, or managed in common with, said vessel, shall be deemed
to be employed within the United States and, as such, subject to
the provisions of this section.
SEC. 581. BOARDING VESSELS
officer of the customs may at any United time States go on board of
"(a)Anyvehicle
at any place in the or within
any vessel or waters or, as he may be authorized, within a customs
the customs area established under the Anti-Smuggling Act, or at
enforcement authorized place, without as well as within his district, and
any other manifest and other documents and papers and examine,
examine and the search the vessel or vehicle and every part thereof and
"(h) The provisions of this section shall not be construed to
authorize or require any officer of the United States to enforce any
law of the United States upon the high seas upon a foreign vessel
in contravention of any treaty with a foreign government enabling
or permitting the authorities of the United States to board, examine,
search, seize, or otherwise to enforce upon said vessel upon the high
seas the laws of the United States except as such authorities are or
may otherwise be enabled or permitted under special arrangement
with such foreign government.'
(b) Section 3072 of the Revised Statutes (U. S. C., title 19, sec.
inspect, trunk, package, or cargo on board, and to this end may
any hail person, and stop such vessel or vehicle, and use all necessary force to
compel Officers compliance. of the Department of Commerce and other persons
(b) by such department may go on board of any vessel at
authorized place in the United States or within the customs waters and
any and board such vessel in the enforcement of the naviga-
506) is hereby repealed.
hail. laws stop, and arrest or, in case of escape or attempted escape, pur-
SEC. 204. (a) The last paragraph of section 584 of the Tariff
tion sue and arrest any person engaged in the breach or violation of the
Act of 1930 (U. S. C., Supp. VII, title 19, sec. 1584) is amended to
navigation laws.
read as follows:
"(e) Any master of a vessel being examined as herein provided,
who presents any forged, altered, or false document or paper to
the examining officer, knowing the same to be forged, altered, or
false and without revealing the fact shall, in addition to any forfeiture to which in consequence the vessel may be subject, be liable
If any of such merchandise so found consists of heroin, morphine, or cocaine, the master of such vessel or person in charge of
such vehicle or the owner of such vessel or vehicle shall be liable to
a penalty of $50 for each ounce thereof so found. If any of such
merchandise so found consists of smoking opium or opium prepared
for smoking, the master of such vessel or person in charge of such
vehicle or the owner of such vessel or vehicle shall be liable to a
to a fine of not more than $5,000 nor less than $500.
*(d) Any vessel or vehicle which, at any authorized place, is is
required to come to a stop by any officer of the customs, or
penalty of $25 for each ounce thereof so found. If any of such
required to come to a stop by signal made by any vessel employed
in the service of the customs displaying the ensign and pennan
prescribed for such vessel by the President, shall come to a stop,
and upon failure to comply. a vessel so required to come to a stop
shall become subject to pursuit and the master thereof shall be liable
to a fine of not more than $5,000 nor less than $1,000. It shall be
the duty of the several officers of the customs to pursue any vessel
which may become subject to pursuit, and to board and examine the
same, and to examine any person or merchandise on board, without
as well as within their respective districts and at any place upon
the high seas or, if permitted by the appropriate foreign authority,
elsewhere where the vessel may be pursued as well as at any other
authorized place.
"(e) If upon the examination of any vessel or vehicle it shall
appear that a breach of the laws of the United States is being or
has been committed so as to render such vessel or vehicle, or the
merchandise, or any part thereof, on board of, or brought into the
United States by, such vessel or vehicle. liable to forfeiture or to
secure any fine or penalty. the same shall be seized and any person
who has engaged in such breach shall be arrested.
"(f) It shall be the duty of the several officers of the custores to
seize and secure any vessel, vehicle, or merchandise which shall
7
(
nerchandise so found consists of crude opium, the master of such
vessel or person in charge of such vehicle or the owner of such vessel
or vehicle shall be liable to a penalty of $10 for each ounce thereof
so found. Such penalties shall, notwithstanding the proviso in section 594 of this Act (relating to the immunity of vessels or vehicles
used as common carriers), constitute a lien upon such vessel which
may be enforced by a libel in rem; except that the master or owner
of a vessel used by any person as a common carrier in the transaction
of business as such common carrier shall not be liable to such penalties and the vessel shall not be held subject to the lien, if it appears
to the satisfaction of the court that neither the master nor any of
the officers (including licensed and unlicensed officers and petty
officers) nor the owner of the vessel knew. and could not, by the
exercise of the highest degree of care and diligence, have known, that
such narcotic drugs were on board. Clearance of any such vessel
may be withheld until such penalties are paid or until a bond. satis-
factory to the collector, is given for the payment thereof. The
provisions of this paragraph shall not prevent the forfeiture of any
such vessel or vehicle under any other provision of law."
(b) Section 584 of the Tariff Act of 1930 (U. S. C., Supp. VII,
title 19, sec. 1584) is amended by adding at the end thereof the
following new paragraph:
8
(PUB. 201)
of such merchandise (sea stores excepted), the importa.
"If of any which into the United States is prohibited, or which consists
tion spirits, wines, or other alcoholic liquors for the importation
of of which any into the United States a certificate is required under section
7 of the Anti-Smuggling Act and the required certificate be not
be so found upon any vessel not exceeding five hundred net
shown. the vessel shall, in addition to any other penalties herein or by
tons, law provided, be seized and forfeited, and, if any manifested merchandise (sea stores excepted) consisting of any such spirits, wines,
or other alcoholic liquors be found upon any such vessel and the
required certificate be not shown, the master of the vessel shall be
liable to the penalty herein provided in the case of merchandise not
duly manifested : Provided, That if the collector shall be satisfied
that the certificate required for the importation of any spirits, wines,
or other alcoholic liquors was issued and was lost or mislaid without
intentional fraud. or was defaced by accident, or is incorrect by
reason of clerical error or other mistake, said penalties shall not be
incurred."
SEC. 205. Section 586 of the Tariff Act of 1930 (U. S. C., Supp.
VII, title 19, sec. 1586) is amended to read as follows:
"SEC. 586. UNLAWFUL UNLADING OR TRANSSHIPMENT
"(a) The master of any vessel from a foreign port or place who
allows any merchandise (including sea stores) to be unladen from
such vessel at any time after its arrival within the customs waters
and before such vessel has come to the proper place for the discharge of such merchandise, and before he has received a permit to
unlade, shall be liable to a penalty equal to twice the value of the
merchandise but not less than $1,000. and such vessel and its cargo
and the merchandise so unladen shall be seized and forfeited.
"(b) The master of any vessel from a foreign port or place who
allows any merchandise (including sea stores), the importation of
which into the United States is prohibited, or which consists of any
spirits, wines, or other alcoholic liquors, to be unladen from his
vessel at any place upon the high seas adjacent to the customs waters
of the United States to be transshipped to or placed in or received
on any vessel of any description, with knowledge, or under circumstances indicating the purpose to render it possible, that such merchandise, or any part thereof, may be introduced, or attempted to
be introduced, into the United States in violation of law, shall be.
liable to a penalty equal to twice the value of the merchandise but
not less than $1,000, and the vessel from which the merchandise
is so unladen, and its cargo and such merchandise, shall be seized
and forfeited
"(e) The master of any vessel from a foreign port or place who
allows any merchandise (including sea stores) destined to the United
(Pvs.238.)
109
9
to twice the value of the merchandise but not less than $1,000, and
0 the vessel from which the merchandise is so unladen, and its cargo
and such merchandise, shall be seized and forfeited.
"(d) If any merchandise (including sea stores) unladen in viola.
tion of the provisions of this section is transshipped to or placed in
or received on any other vessel, the master of the vessel on which
such merchandise is placed, and any person aiding or assisting
therein, shall be liable to a penalty equal to twice the value of the
merchandise, but not less than $1,000, and such vessel, and its cargo
and such merchandise, shall be seized and forfeited.
"(e) Whoever, at any place, if a citizen of the United States, or
at any place in the United States or within one league of the coast
of the United States, if a foreign national, shall engage or aid or
assist in any unlading or transshipment of any merchandise in
consequence of which any vessel becomes subject to forfeiture under
the provisions of this section shall, in addition to any other penalties
provided by law, be liable to imprisonment for not more than two
years.
(f) Whenever any part of the cargo or stores of a vessel has
been unladen or transshipped because of accident, stress of weather,
or other necessity, the master of such vessel and the master of any
vessel to which such cargo or stores has been transshipped shall,
as soon as possible thereafter, notify the collector of the district
within which such unlading or transshipment has occurred, or the
collector within the district at which such vessel shall first arrive
thereafter, and shall furnish proof that such unlading or transshipment was made necessary by accident, stress of weather, or other
unavoidable cause, and if the collector is satisfied that the unlading
or transshipment was in fact due to accident, stress of weather, or
other necessity, the penalties described in this section shall not be
incurred."
SEC. 206. Section 587 of the Tariff Act of 1930 (U. S. C., Supp.
II, title 19, sec. 1587) is amended to read as follows:
SEC. 587. EXAMINATION OF HOVERING VESSELS
"(a) Any hovering vessel, or any vessel which fails (except for
unavoidable cause), at any place within the customs waters or
within a customs-enforcement area established under the AntiSmuggling Act, to display lights as required by law, or which
has become subject to pursuit as provided in section 581 of this
Act, or which, being a foreign vessel to which subsection (h) of
said section 581 applies, is permitted by special arrangement with
a foreign government to be so examined without the customs waters
of the United States, may at any time be boarded and examined by
any officer of the customs, and the provisions of said section 581
shall apply thereto, as well without as within his district, and in
States, the importation of which into the United States is pro-
examining the same, any such officer may also examine the master
hibited, or which consists of any spirits, wines, or other alcoholic
liquors, to be unladen, without permit to unlade, at any place upon
the high seas adjacent to the customs waters of the United States,
to be transshipped to or placed in or received on any vessel of the
United States or any other vessel which is owned by any person $
citizen of, or domiciled in, the United States, or any corporation
incorporated in the United States, shall be liable to a penalty equal
the vessel, its cargo, or voyage, he shall be liable to a penalty of
not more than $5,000 nor less than $500. If, upon the examination
upon oath respecting the cargo and voyage of the vessel, and
may also bring the vessel into the most convenient port of the
United States to examine the cargo, and if the master of said
vessel refuses to comply with the lawful directions of such officer
or does not truly answer such questions as are put to him respecting
110
10
[Pva
(Pvs.258)
vessel or its cargo by any officer of the customs, any
of any such merchandise destined to the United States is found, or
dutiable have been, on board thereof, the vessel and its cargo
discovered to and forfeited. It shall be presumed that any mershall be seized stores excepted), the importation of which into the
chandise (sea is prohibited, or which consists of any spirits, wines,
(
11
"(b) Any member of the crew of any such vessel and any person
who assists, finances, directs, or is otherwise concerned in the unlad-
ing, bringing in, importation, landing, removal, concealment, harboring, or subsequent transportation of any such merchandise
exceeding $100 in value, or into whose control or possession the
same shall come without lawful excuse, shall, in addition to any
other penalty, be liable to a penalty equal to the value of such
goods, to be recovered in any court of competent jurisdiction, or to
imprisonment for not more than five years, or both.'
United States alcoholic liquors, so found, or discovered to have been, on
or other thereof, is destined to the United States.
board vessel laden with cargo be found at any place in the
'(b) If any or within the customs waters or within a customs.
United States area established under the Anti-Smuggling Act and
SEC. 209. Section 4197 of the Revised Statutes, as amended (U.
C., title 46, sec. 91), is amended by striking out the second sentence
and inserting in lieu thereof the following
"If any vessel bound to a foreign port (other than a licensed
yacht not engaging in any trade nor in any way violating the revenue laws of the United States) departs from any port or place in
the United States without a clearance, or if the master delivers a
false manifest, or does not answer truly the questions demanded of
enforcement vessel afterwards is found light or in ballast or having dis.
such its cargo or any part thereof, and the master is unable to
charged due account of the port or place at which the cargo, or any
give thereof, a consisting of any merchandise the importation of which
part the United States is prohibited or any spirits, wines, or other
into alcoholic liquors, was lawfully discharged, the vessel shall be seized
and forfeited.
him, or, having received a clearance adds to the cargo of such vessel
Nothing contained in this section shall be construed to render
"(c) vessel liable to forfeiture which is bona fide bound from one
any foreign port to another foreign port, and which is pursuing her
do so, or if the departure of the vessel is delayed beyond the second
without having mentioned in the report outwards the intention to
day after obtaining clearance without reporting the delay to the
collector, the master or other person having the charge or command
of such vessel shall be liable to a penalty of not more than $1,000
course, wind and weather permitting.
SEC. 207. Section 615 of the Tariff Act of 1930 (U. S. C., Supp.
VII, title 19, sec. 1615) is amended by inserting a comma in place of
nor less than $500, or if the cargo consists in any part of narcotic
drugs, or any spirits, wines, or other alcoholic liquors (sea stores
excepted), a penalty of not more than $5,000 nor less than $1,000,
for each offense, and the vessel shall be detained in any port of the
United States until the said penalty is paid or secured."
SEC. 210. Section 1 of the Act approved June 7. 1918 (40 Stat.
602: S. C., title 46, sec. 288), is amended by adding at the end
thereof the following new sentence When a number is awarded
to a vessel under the provisions of this Act, a certificate of such
the period at the end thereof and adding the following: "subject
to the following rules of proof:
"(1) The testimony or deposition of the officer of the customs
who has boarded or required to come to a stop or seized a vessel
or vehicle, or has arrested a person, shall be prima facie evidence
of the place where the act in question occurred.
"(2) Marks, labels, brands, or stamps, indicative of foreign origin,
upon or accompanying mechandise or containers of merchandise
ward shall be issued by the collector, the said certificate to be at all
times kept on board of such vessel and to constitute a document in
lieu of enrollment or license."
shall be prima facie evidence of the foreign origin of suc
merchandise
"(3) The fact that a vessel of any description is found, or discovered to have been, in the vicinity of any hovering vessel and
TITLE III
under any circumstances indicating contact or communication therewith, whether by proceeding to or from such vessel, or by coming
to in the vicinity of such vessel, or by delivering to or receiving from
such vessel any merchandise, person, or communication, or by any
other means effecting contact or communication therewith, shall
be prima facie evidence that the vessel in question has visited such
SECTION 301. Section 434 of the Tariff Act of 1930 (U. S. C.,
Supp. VII, title 19, sec. 1434) is amended by inserting after the
words " as indicated in the register a comma and the following:
or document in lieu thereof,"
SEC. 302. Subsection (3) of section 441 of the Tariff Act of 1930
(U. C., Supp. VII, title 19, sec. 1441 (3)) is amended to read as
hovering vessel."
SEC. 208. Section 3062 of the Revised Statutes (U. S. C., title
follows:
19. sec. 483) is amended to read as follows:
SEC. 3062. (a) All vessels, with the tackle, apparel, and furniture thereof. and all vehicles, animals, aircraft, and things with the
tackle, harness, and equipment therof, used in, or employed to aid
in, or to facilitate by obtaining information or otherwise, the
unlading, bringing in, importation, landing, removal, concealment,
harboring, or subsequent transportation of any merchandise upon
the same or otherwise unlawfully introduced, or attempted to
introduced into the United States, shall be seized and forfeited.
180 in original.
be
"(3) Yachts of fifteen gross tons or under not permitted by law
to carry merchandise or passengers for hire and not visiting any
hovering vessel, nor having at any time or, if forfeited to the United
States or to a foreign government, at any time after forfeiture,
become liable to seizure and forfeiture for any violation of the laws
of the United States."
SEC. 303. So much of section 585 of the Tariff Act of 1930 (U.S
C., Supp. VII, title 19, sec. 1585) as comes after the words and
the person in charge of such vehicle shall be liable to a fine of $500,"
(Pca. 2081
amended to read as follows: and any such vessel or vehicle shall
is forfeited, and any officer of the customs may cause such vessel or
be vehicle to be arrested and brought back to the most convenient port
of the United States.'
304. (a) Section 591 of the Tariff Act of 1930 (U. S. C.,
SEC. VII, title 19, sec. 1591) is amended by inserting after the
Supp. or aids or procures the making of any such false statement
words matter material thereto without reasonable cause to believethe
as to truth any of such statement," the following: whether or not
the United States shall or may be deprived of the lawful duties, or any
thereof, accruing upon the merchandise, or any portion
portion thereof, embraced or referred to in such invoice, declaration, affi-
davit, letter, paper, or statement;
(b) Section 592 of the Tariff Act of 1930 C., Supp. VII,
19. sec. 1592) is amended by inserting after the words or aids
or procures the making of any such false statement as to any matter
material thereto without reasonable cause to believe the truth of such
title
statement," the following whether or not the United States shall
or may be deprived of the lawful duties, or any portion thereof,
accruing upon the merchandise, or any portion thereof, embraced or
referred to in such invoice, declaration, affidavit, letter, paper, or
statement
SEC. 305. (a) Section 619 of the Tariff Act of 1930 (U. C.,
Supp. VII, title 19, sec. 1619) is amended by inserting after the
words customs laws wherever they appear in that section the
words or the navigation laws
(b) Section 619 of the Tariff Act of 1930 (U. S. C., Supp. VII,
title 19, sec. 1619) is amended by adding at the end thereof the following new sentence: If any vessel, vehicle, merchandise, or baggage is forfeited to the United States, and is thereafter, in lieu of
sale. destroyed under the customs or navigation laws or delivered
to any governmental agency for official use, compensation of 25 per
centum of the appraised value thereof may be awarded and paid by
the Secretary of the Treasury under the provisions of this section,
but not to exceed $50,000 in any case.
SEC. 306. So much of section 621 of the Tariff Act of 1930 (U.S.
C., Supp. VII, title 19. sec. 1621) as precedes the proviso is amended
to read as follows: No suit or action to recover any pecuniary
penalty or forfeiture of property accruing under the customs laws
shall be instituted unless such suit or action is commenced within
five years after the time when the alleged offense was discovered
SEC. 307. Section 3068 of the Revised Statutes (U. C., title 18,
sec. 122) is amended to read as follows
SEC. 3068. If the master of any vessel shall obstruct or hinder.
or shall intentionally cause any obstruction or hindrance to any
officer in lawfully going on board such vessel, for the purpose of
carrying into effect any of the revenue or navigation laws of the
United States, he shall for every such offense be liable to a penalty
of not more than $2,000 nor less than $500."
(Pen ma)
dent shall prescribe, the same to be flown as circumstances require.
If any vessel or boat, not employed in the service of the customs,
shall, within the jurisdiction of the United States, without authority,
carry or hoist any pennant or ensign prescribed for, or intended
resemble any pennant or ensign prescribed for, Coast Guard vessels,
the master of the vessel so offending shall be liable to a fine of not
less than $1,000 and not more than $5,000, or to imprisonment for
not less than six months and not more than two years, or to both
such fine and imprisonment.
to
"(b) For the purposes of this section, any place in the United
States or within the customs waters of the United States as defined
in the Anti-Smuggling Act, shall be deemed within the jurisdiction
of the United States.
SEC. 309. Whosoever without authority shall use the uniform or
badge of the Coast Guard, or the Customs Service, or of any foreign
revenue service, or any uniform, clothing, or badge resembling the
same, while engaged, or assisting, in any violation of any revenue
law of the United States, shall be fined not more than $500 and
imprisoned not more than two years.
SEC. 310. Section 4189 of the Revised Statutes (U. S. C., title 46,
sec. 60) is amended by striking out the words not entitled to the
benefit thereof
SEC. 311. Section 4218 of the Revised Statutes, as amended
(U. C., title 46, sec. 106), is amended by inserting after the words
except those of fifteen gross tons or under " the words exempted
by law,
SEC. 312. Section 4336 of the Revised Statutes (U. S. C., title 46,
sec. 277) is amended to read as follows:
SEC. 4336. Any officer concerned in the collection of the revenue
may at all times inspect the register or enrollment or license of any
vessel or any document in lieu thereof and if the master of any
such vessel shall not exhibit the same, when required by such officer,
he shall be liable to a penalty of $100, unless the failure to do so is
villful in which case he shall be liable to a penalty of $1,000 and to
fine of not more than $1,000 or imprisonment for not more than one
year, or both.'
SEC. 313. Section 4377 of the Revised Statutes (U. S. C., title 46,
sec. 325) is amended to read as follows:
SEC. 4377. Whenever any licensed vessel is transferred, in whole
or in part, to any person who is not at the time of such transfer a
citizen of and resident within the United States, or is employed in
any other trade than that for which she is licensed, or is employed in
any trade whereby the revenue of the United States is defrauded, or
is found with a forged or altered license, or one granted for any other
vessel, or with merchandise of foreign growth or manufacture (sea
stores excepted), or any taxable domestic spirits, wines, or other
alcoholic liquors, on which the duties or taxes have not been paid or
secured to be paid, such vessel with her tackle, apparel and furniture, and the cargo, found on board her, shall be forfeited. But
vessels which may be licensed for the mackerel fishery shall not incur
SEC. 308. Section 2764 of the Revised Statutes (U. C., title 14,
such forfeiture by engaging in catching cod or fish of any other
SEC. 2764. (a) Coast Guard vessels shall be distinguished from
other vessels by an ensign and pennant, of such design as the Presi-
description whatever. For the purposes of this section, marks, labels,
brands, or stamps, indicative of foreign origin, upon or accompanying merchandise or containers of merchandise found upon any vessel,
sec. 64) is amended to read as follows:
111
13
a
12
14
(Prs. m)
shall be prima facie evidence of the foreign origin of such merchandise. 314. Section 7 of the Act approved June 19, 1886 (ch. 421,
SEC. 81; U. S. C., title 46, secs. 317, 319), as in part repealed
24 Stat. Act of February 28, 1933 (47 Stat. 1349), is amended by
by the out the period at the end of the first sentence and inserting
striking in lieu thereof, and by striking out the second sentence and
a inserting comma in lieu thereof the following: " and if she have on board
merchandise of foreign growth or manufacture (sea stores
excepted), any or any taxable domestic spirits, wines, or other alcoholic
on which the duties or taxes have not been paid or secured
to liquors, be paid, she shall, together with her tackle, apparel and furniture,
and the lading found on board, be forfeited. Marks, labels, brands,
stamps, indicative of foreign origin, upon or accompanying meror chandise or containers of merchandise found on board such vessel,
shall be prima facie evidence of the foreign origin of such merchandise. But if the license shall have expired while the vessel was
at sea. and there shall have been no opportunity to renew such
license, then said fine or forfeiture shall not be incurred."
TITLE IV
SECTION 401. When used in this Act:
(a) The term United States when used in a geographical
sense, includes all Territories and possessions of the United States,
except the Philippine Islands, the Virgin Islands, the Canal Zone,
American Samoa, and the island of Guam.
(b) The term officer of the customs' means any officer of the
Customs Service or any commissioned, warrant, or petty officer of
the Coast Guard, or agent or other person authorized by law or by
the Secretary of the Treasury, or appointed in writing by a collector,
to perform the duties of an officer of the Customs Service.
(c) The term . customs waters" means, in the case of a foreign
vessel subject to a treaty or other arrangement between a foreign
government and the United States enabling or permitting the
authorities of the United States to board, examine, search, seize, or
otherwise to enforce upon such vessel upon the high seas the laws
of the United States, the waters within such distance of the coast
of the United States as the said authorities are or may be so enabled
or permitted by such treaty or arrangement and, in the case of every
other vessel, the waters within four leagues of the coast of the
United States.
(d) The term "hovering vessel" means any vessel which is
found or kept off the coast of the United States within or without
the customs waters, if, from the history, conduct, character, or
location of the vessel, it is reasonable to believe that such vessel is
being used or may be used to introduce or promote or facilitate the
introduction or attempted introduction of merchandise into the
United States in violation of the laws respecting the revenue.
SEC. 402. If any clause, sentence, paragraph, or part of this Act,
or the application thereof to any person, or circumstances, is held
invalid, the application thereof to other persons, or circumstances,
and the remainder of the Act, shall not be affected thereby.
SEC. 403. This Act may be cited as the "Anti-Smuggling Act".
Approved, August 5, 1935.
113
Herbert W. BRIGGS
Professeur de droit international A la Cornell-University
Les Etats-Unis et la loi de 1935
sur la contrebande.
Etude de la zone contigue et des critères
de raisonnabilité .
Extrait de la Repue de Droit international et de Législation comparée
(n°2,1939).
BUREAU DE LA REVUE :
22, rue des Paroissiens, Bruxelles
114
LES ETATS-UNIS ET LA LOI DE 1935
SUR LA CONTREBANDE
Etude de la zone contigué et des critères de " raisonnabilité D,
par Herbert W. BRIGGS,
Professeur de droit international à la Cornell-University
La récente législation sur la contrebande (') aux Etats-Unis soulève diverses questions intéressantes pour le légiste international.
Les difficultés que suscitait pour les autorités américaines la prévention de la contrebande sous l'ancienne loi de prohibition sont
bien connues: cette loi aboutissait finalement à une série de conventions sur l'alcool. Après l'abrogation de la loi de prohibition.
le 5 décembre 1933. et après la législation de la fabrication, de
la vente et de l'importation de boissons alcoolisées, on s'attendait
à ce que cessât le trafic de contrebande. En effet. les instructions
données à la Garde des côtes des Etats-Unis, " la première ligne
de défense contre les rum-runners . furent réduites d'une manière
drastique pour l'année 1935. En fait. le Secrétaire de la Trésorerie
estimait (le 8 mars 1935) que la perte causée au fisc américain par
l'importation illégale de l'alcool aux Etats-Unis après l'abrogation
se chiffrait à plus de 30 millions de dollars par an (*). Tandis que
le nombre de bateaux de contrebande. rôdant près de la côte des
Etats-Unis, était seulement de deux en mars 1934, en mars 1935
trente-neuf bateaux étrangers étaient " connus par la Garde des
côtes pour être régulièrement engagés dans le trafic illicite de
(1) Du 5 août 1935 49 U. S. Statutes 517. C. 438: 19 U. S. Code Annotated
secs... 1701-1711. Trois brefs articles sur cette législation ont été publiés aux
Etats-Unis J. H. ROBERTSON dans 35 Michigan Law Review (1937), 1146-1157
P. C. JESSUP dans 31 American Journal of International Law (1937), 101-106;
et S. J. SPINGARN, cité plus loin. Le texte complet en anglais de la loi de 1935
contre la contrebande se trouve dans 31 d. J.I. L. (1937). Supplément, pp. 183-197.
(2) Hearings on the Anti-Smuggling Act (H. R. 5496) before the Committee on
Ways and Means of the House of Representatives 74th Congress, 1st Session
Government Printing Office. Washington, 1935. P. 1. Dans la suite cité de la
manière suivante : . Hearings H.
115
LES ÉTATS-UNIS ET LA L01 DE 1935 SUR LA CONTREBANDE
:
3
HERBERT W. BRIGGS
218
219
l'alcool " et rodant précisément en dehors de la limite des douze
milles des customs waters (9) Le système employé par la contrebande d'alcool et la technique des contrebandiers ont été décrits
ces opérations de très près. Depuis plusieurs années la Garde des
côtes a établi un dossier complet sur l'histoire, les chargements et
les mouvements de chaque bateau repéré comme étant engagé
par un fonctionnaire du General Counsel's Office du Département
dans la contrebande d'alcool. Elle l'a fait grâce aux informations
recueillies par des consuls et des agents du Trésor à l'étranger.
par l'interception des ondes de T. S. F., et par différentes autres
méthodes d'espionnage (').
de la Trésorerie La plupart des bateaux destinés à la contrebande de l'alcool sont d'origine étrangère, car cela leur assure
une certaine immunité. Ils sont facilement reconnaissables par la
Mais avec une côte ayant plus de 10,000 milles d'étendue, il était
pratiquement impossible d'empêcher que les bateaux rôdeurs ne
construction. pourvus de moteurs Diesel. de profil bas, en moyenne
au-dessous de 125 tonnes, d'un type étroit demi-chasseur a
violent la loi (S) En raison de la nature du problème en présence
duquel il se trouvait, le Département de la Trésorerie prépara, vers
la fin de l'année 1934. une nouvelle législation pour prévenir la
contrebande. Le projet de loi, qui fut attentivement rédigé par le
Département de la Trésorerie, fut voté par le Congrès et prit force
peints d'une sale couleur de guerre, on les remarque aisément de
près, mais ils sont méconnaissables à quelque distance. Remplis
d'alcool jusqu'à plat-bord (ils sont généralement chargés de 12.000
à 15,000 gallons). ils travaillent entre les ports des eaux canadiennes
et des bases sans cesse changées aux Indes occidentales ou en Amé-
de loi le 5 août 1935.
rique centrale. ils font en moyenne des tournées d'un mois. En rôdant au large de nos côtes à chaque tournée, en dehors, précisément. de nos caux territoriales, pendant des journées entières, et
I
Dans le but d'empêcher radicalement l'importation illicite d'alcool aux Etats-Unis, venant de la haute mer, les dispositions de
la loi sur la contrebande comprennent différents ordres de me-
parfois des semaines ils attendent une occasion d'échapper à la surveillance permanente des gardes-côtes, et glissent leur chargement
i terre i la faveur d'une nuit brumeuse et sans lune. Parfois ils conduisent eux-mêmes leurs chargements à la côte, mais d'habitude
sures:
1) Des mesures pour l'extension souple du contrôle douanier
dans la zone de contrôle connue sous le nom de customs-enfor-
des bateaux de contact viennent à leur rencontre, après entente
par des stations clandestines de T. S. F. S'ils réussissent à mettre
à terre leur chargement d'alcool, ils prennent alors un autre chargement. S'ils n'y réussissent pas, ils peuvent mener leur chargement d'alcool dans quelque port étranger. ou, ce qui est plus probable, le décharger sur un autre navire de contrebande, fraiche-
ment approvisionné. ou sur un navire de dépôt plus important,
qui se trouve plus éloigné et sert de base d'approvisionnement et
de chargement. II résulte du rapport que de vastes opérations
syndicales se cachent derrière ces faits. La Trésorerie surveille
(') Hearings, p. 1.
3
préalable. Pratiquement tous les bateaux de contrebande ont des
postes émetteurs et récepteurs de radio à ondes courtes. La plupart d'entre eux. bien qu'ils figurent nominalement sur des registres
étrangers. appartiennent à des Americains ou sont contrôlés par
eux: leurs mouvements et leurs contacts sont dirigés de la côte
(') Stephen J. SPINGARN . The History and Results of the Smuggling Act .
Federal Bar Association Journal (1937), pp. 33-4.
(superscript(()) Voici un exemple donné par le Secrétaire de la Trésorerie, Morgenthau,
an Comité de la Chambre des Représentants
L'an dernier, nous en avons eu un exemple avec le Mogul à la côte méridionale de la Californie. Ils avaient l'audace de me télégraphier . Si vous ne
nous laissez pas entrer et si vous ne laissez pas passer cette matière par les
douanes, nous la ferons entrer par n'importe quel moyen. . Cela constituait,
à mon avis, un tel affront pour le Gouvernement des Etats-Unis que nous primes
la décision d'envoyer onze bateaux des Gardes-côtes, hors de la limite des
12 milles, pour entourer ce navire: nous avons employé des avions de la flotte
et mis ce bateau sous une surveillance permanente et finalement nous l'avons
eu par la faim, alors qu'il était contraint de quitter les eaux et de repartir
pour le Mexique. Mais ce fut une très vaste opération et nous n'avons pas
l'équipement nécessaire pour agir de même chaque fois que nous apprenons
la présence d'un . rummy . en dehors de la limite des 12 milles. Nous ne pouvons pas envoyer toute la flotte pour entourer ce bateau et nous poster en cet
endroit. Dans ce cas particulier, cela a pris des mois entiers, mais nous avons
allamé le bateau. . Hearings, p. 16.
116
4
220
areas ( superficies soumises au contrôle de la douane >).
cement mesures constituent la plus grande innovation de cette loi
Ces l'examen de leur validité dans le cadre du droit international
(
LES ÉTATS-UNIS ET LA 1.01 DE 1933 SUB LA CONTREBANDE
5
HERBERT W. BRIGGS
221
rares exceptions, les codes pénaux nationaux contiennent des
dispositions basées sur la conception que les Etats sont compé-
tents pour légiférer pour la protection de leur sécurité et de
leur crédit contre des actes délictueux, même quand de tels
toure. si, dans la législation de ce gouvernement étranger. il est prévu und
actes sont commis par des étrangers en territoire étranger. La
base.d'une telle juridiction est plutôt la nature des intérêts violés
que l'endroit où le fait a été commis ou la nationalité du délinquant ('). La justification du principe de protection se trouve
dans a l'insuffisance de la plupart des législations nationales en
ce qui concerne la punition des contraventions commises dans
le territoire contre la sécurité, l'intégrité et l'indépendance des
Etats étrangers... En raison du fait qu'une majorité écrasante
d'Etats a adopté une législation de ce genre, il est difficile de soutenir qu'une telle législation soit nécessairement un excès de pouvoir tel qu'il est reconnu par le droit international contemporain ('). En général, les Etats-Unis ont basé leur législation sur
les théories territoriales ou personnelles (nationales) de la compétence pénale. mais, dans de nombreux cas, comme ceux de la
contrefaçon ou du faux temoignage dévant les fonctionnaires consulaires et diplomatiques américains à l'étranger, les Etats-Unis
ont appliqué la juridiction aux personnes qui sont en effet aux
Etats-Unis pour des infractions commises antérieurement, indépendamment du lieu de l'infraction ou de la nationalité du cou-
amende on the confiscation pour la violation des lois fiscales des Etats-Unis,
pable (**).
constituera et la partie principale de cet article.
2) Des mesures rendant illégaux certains actes contraires aux
intérêts des Etats-Unis commis n'importe où et par n'importe qui.
Par exemple. la section 3 (a) (*) de la loi soumet à la confiscation
n'importe quel bateau équipé ou possédé aux Etats-Unis ou
ailleurs, dans le but d'être employé pour détourner les revenus
ou pour faire la contrebande de n'importe quelle marchandise
aux Etats-Unis ", si ce navire est trouvé à quelque endroit soumis
à notre contrôle douanier.
Cette mesure. qui fut appliquée au cas du Reidun ('). fonde
la juridiction sur la théorie de la protection. Le Harvard Research
écrit au sujet de ce principe de la juridiction : " A part quelques
(*) La sect : of rédigée dans les termes suivants (49 Stat. 518: 19 U.S.C.A.
sect. 1705) Traduction française]:
Sect 3. it) Toutes les fois qu'un navire construit, acheté, équipé entièrement
ou en partie. est tem. ous Etats-Unis ou ailleurs, dans le but d'être employé
pour (rauder le fisc on pour faire la contrebande d'une marchandise quelconque
any Etats-Unis on pour passer en contrehande une marchandise dans le territoire d'un gouvernement étranger en violant les lois en vigueur dans ce terri
on toutes la fois qu'un navire qui a été trouvé ou découvert comme ayant
été employé on tenté d'étre employé aux Etats-Unis dans un tel but. pour y
aider de quelque manière que ce soit. ou toutes les fois qu'un navire des Etats
Unis quir a de trans on découvert comme ayant été employé, on tenté d'étre
employé. dams quelque endroit que ce soit. dans un tel but. pour y aider de
quelque monière que ce soil, sil n'a pas été ultérieurement confisqué aus
revenus de l'Etat. cc die navire et son chargement doivent être saisis et
confisqués
b) Tout navire qui est enregistré, possédé on contrôlé aus Etats-Unis et tout
navire enregistré à l'étranger qui est, directement ou indirectement la propriété
en fait ou sous In contrile d'un citoyen, d'une association constituée sous la
forme de société, possédé ou controlé aux Etats-Unis, doivent. dans le sens de
cet article. être considérés comme navires des Etats-Unis
c) Dans le sens de cet article, un navire qui est soumis aux poursuites pré
vies à l'article 581 de la loi des tarils de 1930 tel qu'il est modifié, ou on navire
qui rôde. on un navire qui, en n'importe quel endroit dans les eaux douanières
américaines on dans une customs-enforcement area ", oublie d'exposer se
lumiètes comme la loi Fesige, doivent être présumés prima jacie, être avoir été
ou essover d'étre employés pour frauder le fisc des Etats-Unis
(') Cir. plus loin, PP 250 et suiv.
3) Un troisième ordre de mesures, que l'on trouve dans la loi
contre la contrebande, est destiné à contribuer à l'élimination de
cette législation protectrice que nous venons de discuter. La section 2 (a) (") de cette loi punit toute personne (inter alia) possé(*) Harvard Research in International Law, Jurisdiction with respect to
Crime (1935). p. 543.
(*) Id., pp. 552, 556
(**) Cfr. id., p. 544.
(" La sect. 2 (a) est rédigée en ces termes (49 Stat., 518; 19 U. S. C. A..
sect. 1702) [Traduction]:
Sect. 2. a) Toute personne possédant en tout ou en partie n'importe quel
navire des Etats-Unis, qui emploie, ou prend part à, ou permet l'emploi de ce
navire dans le but de passer en contrebande, ou de tenter de faire passer en
contrebande, ou qui aide à faire entrer en contrebande n'importe quelle mar-
chandise sur le territoire d'un gouvernement étranger en violant les lois en
vigueur dans cet Etat, si la législation de cet Etat prévoit une peine d'amende
117
7
6
HERBERT W. BRIGGS
LES ÉTATS-UNIS ET LA LOI DE 1935 SUR LA CONTREBANDE
223
de cette section . tout navire enregistré à l'étranger, dont la propriété ou le contrôle bénéficiaire est américain, doit être considéré comme américain. Cette disposition, qui a cet effet malheureux de substituer la propriété ou le contrôle à l'enregistrement
comme critère de la nationalité d'un navire ("), est visiblement
basée sur le cas du I'm Alone ("). En l'espèce le I'm Alone . un
navire britannique enregistré au Canada >, avait été employé pendant plusieurs années à la contrebande de l'alcool aux Etats-Unis.
II avait été découvert en 1929 en dehors de la limite des trois
milles, mais à une distance d'une heure de navigation de la côte
des Etats-Unis, et coulé après une poursuite acharnée en haute
mer. Les commissaires américains et canadiens, auxquels ce cas
fut soumis pour arbitrage, estimèrent que la destruction voulue
et avouée du navire canadien n'était pas justifiée dans les cir-
dant en tout ou en partie n'importe quel navire des Etats-Unis,
qui emploie ce navire dans le but de violer les lois sur la contrebande de n'importe quel gouvernement étranger, . si la législation de ce gouvernement étranger prévoit une amende ou la confiscation pour la violation des lois fiscales des Etats-Unis D.
La même invitation donnée aux gouvernements étrangers d'adopter une législation réciproque. punissant leurs nationaux en cas
de violation de nos lois fiscales, se retrouve dans la section 3 (a)
de la loi ("). La section 2 (a) de la loi est faite sur le modèle de
la loi norvégienne du 25 juin 1926. II parait qu'aucune réponse n'a
été faite. sous la forme d'une législation réciproque, par un gouvernement étranger depuis l'établissement de la loi américaine
contre la contrebande (").
4) Une autre disposition de la loi mérite un commentaire spé-
constances de la cause, et ils accordèrent 25,000 dollars pour cette
cial. La section 3 (b) (") stipule, notamment. que dans le sens
revenus des donanes et tout citoven des Etats-Unis, toute personne y habitant,
toute société constitute HILL Etats-Unis, qui contrôle ou participe effectivement
are controle de ce navire, directement ou indirectement, soit sous forme de pro-
destruction. Mais, en ce qui concerne le dédommagement pour
la perte du navire et de la cargaison, les commissaires adoptèrent
la thèse américaine, selon laquelle, bien que le navire fut d'enregistrement canadien et appartint à une societe canadienne dont
priete. de parts collectives soil de toute autre manière, et permet l'emploi do
tous les actionnaires étaient des sujets britanniques d'origine cana-
dn navire a un des buts sus-indiqués, et toute personne trouvée à bord ou dont
dienne, de facto la propriété et le contrôle bénéficiaire du navire
appartenait effectivement à un groupe de citoyens américains.
Aucune indemnité ne fut donc accordée pour la perte du navire
ou de confiscation en cas de violation des lois des Etats-Unis relatives aux
la présence antérieure est découverte à bord du dit navire employé à un tel
usage. et comme participant on aidant is la réalisation de ce but, peut être
condamnée à une amende qui the peut dépasser 5,000 dollars ou à un empri-
somment qui ne peut être supérieur à deux ans, ou à toutes les deux peines
simultanément. Famende et l'emprisonnement.
b) Doit être considere comme infraction aux dispositions de cette section, le
fait de lower ou de fréter un navire. si le bailleur ou l'affreteur a connaissance,
on si or navire of louis ou affreté dans des circonstances qui doivent raisonnablement donner best de croire que le preneur ou la personne affrétant le
navire MC propose d'employer ce navire pour un des usages prévus ci-dessus
sub litt a), et si ce navire est. en réalité, pendant la durée de ce bail ou de
cet alfrétement employé is cet usage,
(1) Your plus hout. p. 220. Bien que cela ne paraisse pas avoir été voulu
intentionnellement por le législateur. cette section 3 a) rend possible la situation uivante un navire est équipé en Belgique pour frauder les lois douanières
(
et de la cargaison.
Le but de la section 3 (b) de la loi de 1935 sur la contrebande
parait être d'autoriser les tribunaux des Etats-Unis à considérer
l'enregistrement d'un navire saisi pour contrebande uniquement
comme preuve prima facie de la nationalité. Les avantages d'une
telle disposition, limitée aux buts de cette section . n'apparaissent
pas clairement, car la section 3 (a) de la loi sounnet à la confiscation aussi bien les navires étrangers que ceux des Etats-Unis Ce
de Norvège: la Norvige a une législation punissant ses nationaux en cas de vio-
lation des lois douanières des Etats-Unis: si ce navire belge est. dans l'avenir,
treuve aux Etats-Unis, il pourrait être, semble-t-il, saisi et confisqué aux Etats
Unis, si on prend a la lettre la sect. 3
an M Green H Hackworth conseiller juridique au Département d'Etat.
érrivate à l'auteur, à la date du 23*juin 1938 . Au sujet de votre enquête relative à la législation réciproque étrangère, je vous prie de noter que, pour autant
que jo sais informé. une action de caractère réciproque n'a pas été intentée
par des gouvernements étrangers depuis l'adoption de cette législation
(") le texte de cette section 3b) plus haut, p. 220.
(¹) Cir. Robert RIENOW, . The Test of the Nationality of a Merchant Vessel ,
(Columbia University Press, 1937). pour une défense bien documentée de l'enre-
gistrement comme critère de la nationalité d'un navire.
(") U. S. Department of State Arbitration Series, n° 2 (1-7), 1931-1935. Pour
la critique du rapport des commissaires dans le cas du I'm Alone, G. G. FirzMAURICE, . The case of the I'm Alone P, 17 British Yearbook of International
Law (1936). 82-111.
118
8
HERBERT W. BRIGGS
9
224
de son enregistrement.
Voyons à présent la plus grande innovation de la loi sur la
contrebande le . customs-enforcement area (la superficie
soumise au contrôle des douanes).
sition, à la saisie et à la mise en jugement de ces navires.
II
Les tribunaux américains ont cependant jugé (") que, comme
matière de droit constitutionnel, ces traités ne conféraient aucune
autorité aux fonctionnaires américains pour saisir des navires
étrangers en dehors des 12 milles de la côte des Etats-Unis, Un
des buts de la loi de 1935 contre la contrebande était de combler
la lacune existant dans la juridiction entre la limite des 12 milles
et la limite d'une heure de navigation et d'autoriser les fonctionnaires américains à saisir des navires - dits treaty vessels ("),
- conformément aux traités, en dehors des 12 milles. Cela devenait entièrement matière de droit interne, à laquelle aucun Etat
ayant signé un tel traité ne pourrait se soustraire.
Toutefois, le but le plus important de la loi était d'en finir avec
la contrebande organisée, faite par des navires étrangers, connus
Depuis 1790. les Etats-Unis ont affirmé, par une législation natio-
nale généralement connue sous le nom de . hovering laws . le
droit d'exercer la juridiction sur les navires étrangers en destingtion des Etats-Unis, dans l'espace des douze milles marins de la
côte. en vue de faire exécuter les règlements douaniers. Dans la
loi tarifaire de 1922, le Congrès des Etats-Unis stipulait que tout
navire, qu'il soit destiné ou non pour les Etats-Unis, pouvait être
abordé dans l'espace de 4 lieues (12 milles marins) de la côte, et
que les fonctionnaires des Etats-Unis pouvaient faire usage de
toute la force nécessaire pour contraindre le navire à la soumission. et s'il devenait apparent qu'une infraction ou une violation
des lois des Etats-Unis avait été commise, pour laquelle ou en
pouvait être exposé à la confiscation, ces fonctionnaires avaient
le devoir de saisir ce navire et de l'arrêter, ou. en cas de fuite
ou de tentative de fuite. de poursuivre et d'arrêter toute personne
coupable d'une pareille infraction ou violation (").
Bien que l'on n'ait aucun souvenir d'une protestation formulée
par un gouvernement étranger contre les anciens hovering
acts (") des Etats-Unis la saisie de navires de contrebande britanniques au delà de la limite des 3 milles pour violation de la loi
de prohibition, provoquait, en 1922 et en 1923, des protestations
diplomatiques de la part de l'Angleterre ("). En conséquence, les
Etats-Unis négociaient, entre le 22 mai 1924 et le 25 novembre 1930,
C
(2") Grande-Bretagne, Norvège, Danemark, Allemagne, Suède, Italie, Panama,
Pays-Bas, Cuba, Espagne, France, Belgique, Grèce, Japon, Pologne et Chili.
Pour le texte de l'article II du traité avec la Belgique, qui est le modele de
Tarticle II de tous les autres traités, efr. plus loin, p. 229.
(21) Voir, d'une manière générale, Edwin D. DICKINSON . Are the Liquor
Treaties Self-Executing? H. 20 American Journal of International Law (1926),
444-452 Déposant devant le Comite de la Chambre des Représentants, le Dr. Hes.
sel Yntema déclarait à propos des . traités de liqueurs Le traité ne confère
aucun pouvoir à personne. II se borne à dire que le Gouvernement britannique
n'entend faire aucune objection, si certaines choses arrivent à des navires britanniques à une certaine distance P. efr. Hearings, T. 13.
De même, C. M. Hester déclarait que . les traités ne sont pas de nature à
s'exécuter d'eux-mêmes... Ainsi nos fonctionnaires des douanes ne peuvent pas
imposer le respect de nos lois en dehors de la limite des 12 milles Aussi un des
buts de ce projet de loi est-il de combler cette lacune. Si la distance d'une heure
de navigation est calculée à la rapidité du navire, et si le navire file, par exemple,
à 25 milles par heure, il reste une brèche de 13 milles, et un des buts de ce
projet est de fermer cette brèche. . Id., p. 36.
(1) Sec. 581. Act of Sept. 21. 1922: 12 Stat. 979.
(**) Foreign Relations 1875. Pt. I. p. 649: idem, 1912, p. 1287.
(**) Ces protestations n'aboutirent à aucune conclusion.
225
des traités avec seize Etats (" pour prévenir la contrebande de
boissons fortes. Ces seize Etats avaient convenu, par ces traités,
qu'ils ne feraient aucune objection à l'abordage de leurs navires
privés dans l'espace comprenant la distance d'une heure de navigation de la côte des Etats-Unis, pour s'assurer si les navires et
les personnes à leur bord ne cherchaient pas à importer des boissons alcooliques aux Etats-Unis, en violation de la loi en vigueur
dans cet Etat, et, si de justes motifs devaient exister, à la perqui-
qui est certain. c'est que cette stipulation (la section 3 (b) de la
loi nationale ne peut avoir. sur le plan international, l'effet de
priver un Etat étranger de tout droit légitime sur un navire jouant
connaissance de laquelle ce navire... ou les marchandises. à bord..
LES ÉTATS-UNIS ET LA Lot DE 1935 SUB LA CONTREBANDE
(22) Sous le terme . treaty vessels ", on doit comprendre les navires appartenant aux Etats avec lesquels les Etats-Unis ont conclu des traités pour la prévention de la contrehande des boissons fortes,
119
227
10
11
HERBERT W. BRIGGS
C
226
the vessel and any merchandise or person on board. and bring
the same into port. and. subject to regulations of the Secretary
of the Treasury, it shall be their duty to pursue and seize or arrest
and otherwise enforce upon such vessel, merchandise, or person,
the provisions of law which are made effective thereto in pursuance of subsection (a) in the same manner as such officers are
or may be authorized or required to do in like case at any place
in the United Stuates by virtue of any law respecting the revenue
Provided, That nothing contained in this section or in any other
provision of law respecting the revenue shall be construed to
authorize or to require any officer of the United States to enforce
any law thereof upon the high seas upon a foreign vessel in contravention of any treaty with a foreign government enabling or
permitting the authorities of the United States to board, examine,
search, seize, or otherwise to enforce upon such vessel upon the
high seas the laws of the United States except as such authorities
are or may otherwise be enabled or permitted under special arrangement with such foreign government Provided further, That
none of the provisions of this Act shall be construed to relieve
the Secretary of Commerce of any authority, responsibility. or
jurisdiction now vested in or imposed on that officer " (").
rodant au dela des eaux douanières américaines, C'est
comme ici que la loi sur la contrebande votée en 1935 présente un aspect
nouveati.
Voici le texte du titre 1. section I de la loi
SECTION 1. (a) Whenever the President finds and declares
that at any place or within any area on the high seas adjacent
to but outside customs waters any vessel or vessels hover or are
being kept off the coast of the United States and that, by virtue
of the presence of any such vessel or vessels at such place or
within such area. the unlawful introduction or removal into or
from the United States of any merchandise or person is being
or may be occasioned. promoted. or threatened, the place or
area so found and declared shall constitute a customs-enforcement
area for the purposes of this Act. Only such waters on the high
seas shall be within a customs-enforcement area as the President
finds and declares are in such proximity to such vessel or vessels
that such unkawful introduction or removal of merchandise or
persons may be carried on by or to or from such vessel or vessels.
No customs-enforcement area shall include any waters more than
one hundred nautical miles from the place or immediate area
where the President declares such vessel or vessels are hovering
or are being kept and. notwithstanding the foregoing provision.
shall not include any waters more than fifty nautical miles outwards from the outer limit of customs waters. Whenever the President finds that. within any customs-enforcement area, the circunstances no longer exist which gave rise to the declaration of
such area as a customs-enforcement area, he shall so declare,
and thereafter. and until a further finding and declaration is made
under this subsection with respect to waters within such area,
no waters within such area shall constitute a part of such customs-
enforcement area. The provisions of law applying to the high
seas adjacent to customs waters of the United States shall be
enforced in a rustoms-enforcement ares upon any vessel, merchandise. or person found therein.
(h) any place within a customs-enforcement area the several
officers of the customs may go on board of any vessel and examine
LES ÉTATS-UNIS ET LA Lot DE 1933 SUR LA CONTREBANDE
(
Le Titre IV, Sect. 401 de l'Acte stipule. notamment, ce qui suit
SECTION 401. - When used in this Act:
(c) The term . customs waters means, in the case of a foreign
vessel subject to a treaty or other arrangement between a foreign
government and the United States enabling or permitting the
authorities of the United States to board, examine. search, seize.
or otherwise to enforce upon such vessel upon the high seas the
laws of the United States, the waters within such distance of the
coast of the United States as the said authorities are or may be
so enabled or permitted by such treaty or arrangement and. in
the case of every other vessel, the waters within four leagues of
the coast of the United States.
(21) 49 Stat., 517: 19 U. S. sec. 1701.
120
HERBERT BRIGGS
12
LES ÉTATS-UNIS ET LA LOI DE 1935 SUR LA CONTREBANDE
13
The term hovering vessel " means any vessel which is
or kept off the coast of the United States within or without
found istoms waters if. from the history, conduct. character, or
229
La saisie de navires appartenant à des Etats qui ont conclu des
traités avec les Etats-Unis au sujet de la contrebande de boissons
fortes est limitée à une distance d'une heure de navigation de la
côte. pour la mise à exécution des lois des Etats-Unis contre l'importation de boissons alcooliques, en raison de la clause inscrite
location the ( of the vessel it is reasonable to believe that such vessel
is being used or may be used to introduce or promote or facilitate
the troduc tion or attempted introduction of merchandise into
the United States in violation of the laws respecting the revenue, D
Set n les termes employés par la section 1. il est prévu que si
le Président désigne certaines parties de la haute mer comme
unlons-enforcement area . (superficie soumise au contrôle des
dominest les Etats Unis affirment leur droit de saisir tout navire
étranger dans cel espace et d'imposer les lois fiscales des EtatsUnis is tout navire. à toute marchandise ou à toute personne
trouse dans cet espace. de la même manière que ces lois sont
imposite dans des cas pareils à tout autre endroit aux Etats-Unis
On resplique cette revendication de la juridiction sur des navires
étrangers quand on considère l'extension territoriale des . customsenforcement areas La disposition de la section 1 (a). selon laquelle
A la section 1 (b) de la loi contre la contrebande " que rien de
ce qui est prévu à cette section ou dans une autre disposition de
la loi fiscale ne doit être interprété dans le sens de permettre
ou d'enjoindre à un fonctionnaire des Etats-Unis d'imposer le
respect d'une de ces lois en haute mer à un navire étranger contrevenant à un traité conclu avec un gouvernement étranger. traité
autorisant ou permettant aux autorités des Etats-Unis d'aborder.
d'examiner, de fouiller, de saisir, ou. de toute autre manière, d'im-
poser à ce navire en haute mer les lois des Etats-Unis, sauf si
ces autorités étaient ou pourraient être habilitées à le faire en
vertu d'arrangements spéciaux conclus avec ce gouvernement
étranger..
action area " ne doit comprendre plus de
superficie maritime que 100 milles marins à partir de l'endroit
- La superficie immédiate que désigne le Président et où un
mark on des navires rédent et sont présents... autorise à
(
adiquer le droit de juridiction dans un espace de 200 milles
Cependant. sauf en ce qui concerne l'exécution des lois des
Etats-Unis contre l'importation de boissons fortes, des navires des
Etats qui ont un traité peuvent être. éventuellement. saisis en
vertu de la loi même 80 ou 90 milles au delà de la côte des Etats
Unis, puisque les eaux douanières pour les Etats ayant un traité
sont. selon la définition ("), les eaux dans une distance d'une heure
de navigation à partir de la côte. et la loi admet qu'une . customs-
pro. . is côte 100 milles dans toutes les directions sauf
III we des navires qui rodent (") - mais, continue la phrase,
enforcement area puisse s'étendre à une distance maritime de
50 milles au delà de la limite extérieure des eaux douanières, ce
qui peut faire 30 ou 40 milles dans le cas d'un navire rapide appartenant à un Etat ayant signé un traité.
En examinant le texte de l'article II des différents traités pour
la prévention de la contrebande de boissons alcooliques ("). on
don obstant la précédente disposition aucune superficie soumise
in outrôle des domanes no doit renfermer " plus de surface maritime you 50 milles marins en dehors de la limite extérieure des
GII. donatiètes Les cause domanières sont définies par la
for comme éLau les CHIN dans l'espace de I lieues (12 milles
mainst i partir de la côte des Etats-Unis pour les Etats sans
consection Le navires appartenant à des Etats qui n'ont pas de
traile Jires les Ends-Unis en ce qui concerne la contrebande des
(25) Sec. 401 (c). ci-dessus.
(27) L'article II de la Convention du 9 décembre 1925 entre les Etats-Unis et la
Belgique pour la prévention de la contrebande de boissons alcoolisées (qui peut
boi sons fortes peuvent être saisis, selon les termes de la loi contre
être considéré comme typique à cet égard) est rédigé comme suit (45 Stat. 2457):
is outrehande daus respace de 62 milles en dehors de la côte
to Etat-Unis
aucune objection à ce que les navires privés, sous pavillon belge. soient abordés,
Art. II. (1) Sa Majesté le Roi des Belges accepte que la Belgique n'élève
en dehors des limites des eaux territoriales, par les autorités des Etats-Unis,
leurs territoires ou possessions, afin que des questions puissent être posées aus
The Simps 1936 771. 773
personnes se trouvant à bord et qu'un examen soit fait des papiers de bord, en
0
HERBERT W. BRIGGS
230
14
peut penser que. tout en consentant à ne pas faire d'objection à
l'abordage. à la visite et à la saisie de ses navires dans l'espace
d'une heure de navigation de la côte des Etats-Unis pour l'exécution des lois des Etats-Unis contre l'importation de boissons
alcooliques. un gouvernement ayant un traité ne consent pas à
la saisie en dehors de la limite des 3 milles pour infraction à
d'autres lois des Etats-Unis. Mais on peut également estimer que,
puisque les traités ne concernent que l'exécution des lois sur l'alcool. il n'y aurait aucune violation d'un traité si les Etats-Unis
saisissaient des navires étrangers appartenant à un Etat ayant un
traité. en dehors de la distance d'une heure de navigation de la
côte. en raison d'une violation d'autres lois-sur la contrebande.
Le traité n'étant pas viole. la validité internationale d'une telle
saisie dépendrait du droit international coutumier. Or, la clause
de la section I (b) de la loi contre la contrebande n'exclut pas la
possibilité de la saisie de navires appartenant à des Etats ayant
un traité, dans l'espace de 50 milles au delà de la distance d'une
heure de navigation à partir de la côte pour l'exécution des lois
sur la contrebande, excepté celle contre l'importation de boissons
alcooliques (").
ville de vérifier i le navire ou les personnes à bord, s'efforcent d'importer ou ont
importé des boissons alcooliques aux Etats-Unis, leurs territoires ou possessions
contrairement aux lois qui y sont en vigueur. Lorsque de telles questions et exa-
mens donneront des causes raisonnables de suspicion, une visite du navire
pourra être effectate
(2) Sil existe une cause raisonnable de croire que le navire a commis ou est
en train de commetin on d'essayer de commettre une infraction aux lois des
EtatsUnis lears territoires ou possessions prohibant l'importation des boissons
alcooliques, le navire pourra être saisi et conduit dans un port des Etats-Unis,
lears territoires on possessions, pour qu'il en soit décidé conformément aux
dites lois
(3) Les droits conférés par cet article the seront pas exercés à une distance
de la cote des Esta Unis lears territoires ou possessions, supérieure à celle qui
pent être traversie en one heure par le navire suspecté de tacher de commettre
cette infraction Dans ce GIS, toutefois, ois l'intention serait que le liquide füt
transporte any Etals-Unis lears territoires ou possessions par un navire autre
que celai qui agrait été aborde on visité, ce serait la vitesse de cet autre navire
et de non celle du navire abordé qui servirait à déterminer la distance à partir
La cite jusqu'oir 4 droit dérivant de cet article pourrait être exercé.
était (**) II Tarrit laut, cependant, noter que le but particulier de la loi sur la contrehande
M.C.M. . de la contrebande d'alcool aux Etats-Unis . (Hearings, p. (0): et
devant Hester, du Département de la Trésorerie, a affirmé, à plusieurs reprises,
le Comité de la Chambre des Représentants que . la législation proposee
121
LES ÉTATS-UNIS ET LA LOI DE 1935 SUR LA CONTREBANDE
15
231
Manifestement, ces dispositions de la loi contre la contrebande,
de 1935. rendent possible la prétention la plus large de juridiction
sur des navires étrangers en haute mer, à l'époque actuelle. Le
Congrès américain n'était pas indifférent aux dispositions du droit
des gens dans ces matières, mais il avait été convaincu par le
Département de la Trésorerie de ce que l'exécution de la loi ne
serait pas en contradiction avec le droit des gens ("). La validité
de la méthode envisagée par la loi sur la contrebande, au regard
du droit international, doit être, à présent, examinée à la lumière
des arguments formulés par le Département de la Trésorerie, et
en relation avec la pratique internationale.
La justification de la loi, donnée par le Département de la Trésorerie. avait été basée, en résumé, sur la validité, en droit inter-
national, de la hovering legislation . à condition qu'il y ait
nécessité réelle et qu'une telle législation soit raisonnablement
appliquée.
La validité de la zone contiguê.
La distinction entre une zone des eaux territoriales, dans laquelle
(
toutes les lois de l'Etat de la côte peuvent être rendues applicables, et une zone contiguê au delà, dans laquelle un Etat peut
exercer un droit de juridiction spéciale sur des navires privés
étrangers, a été appliquée depuis longtemps au cours de l'histoire
et est. à présent, trop bien établie pour nécessiter un long exposé.
II suffira de donner ici un résumé de la théorie et de la pratique
contemporaines.
L. F. Oppenheim écrit à ce propos de la hovering . législation :
Puisque le droit interne, de l'espèce indiquée précédemment,
existe depuis plus de cent ans et n'a pas soulevé d'opposition de la
n'allait pas au delà de la limite d'une heure de navigation à l'égard des pays
avec lesquels nous avons ces traités. . (Ibid., p. 18.) L'attitude prise par M. Hester
peut être interprétée comme indiquant que le Département de la Trésorerie
n'a point l'intention d'imposer la loi aux . treaty vessels . au delà de la limite
des traités, mais n'exclut nullement l'interprétation que j'ai donnée plus haut.
(2) Le projet de loi a été élaboré et amplement rédigé par le Département
de la Trésorerie. Le Département d'Etat, tout en n'étant pas disposé à s'opposer
sérieusement à ce projet, ne fut visiblement pas très enthousiaste des termes de
la loi. Cfr. Hearings, pp. 10, 125, 128 ff., 156 ff., 165.
122
HERBERT W. BRIGGS
17
16
(
LES ÉTATS-UNIS ET LA L01 DE 1935 SUR LA CONTREBANDE
233
232
être considérés comme légaux s'ils sont établis être raisonnables > (*). L'opinion, très sérieusement documentée, de Gilbert
Gidel dans son traité monumental Le Droit international public
de la mer . est que si quelques Etats très rares refusent de
reconnaître une zone contigué douanière, l'attitude observée par
la presque unanimité des Etats permet de considérer la zone contigue en matière douanière et fiscale comme une institution du
droit commun international . II ajoute : II convient de remarquer en effet que les hovering laws TO ont fait très rarement l'objet de discussion par les voies diplomatiques. La validité des
hovering laws . n'a été mise en question que vers le milieu
du XIX siècle par la Grande-Bretagne. On ne relève que peu
d'exemples de protestations même à partir de ce moment (").
II faut noter que plusieurs projets de conventions, qui sont le
résultat de recherches entreprises en commun par des groupes
d'autres Etals on peut dire qu'il y a une règle coutumière du
droit part des gens qui permet aux Etats côtiers, dans l'intérêt de leur
législation fiscale et sanitaire. d'imposer certaines obligations aux
navires étrangers, en destination de leurs ports, et qui s'approchent,
y être déja. de leur bande territoriale maritime ("). Ce point
sans de vue est partagé. après un examen très attentif de la législation
donanière. par W. E. Masterson ("). qui arrive à cette conclusion
que la distinction entre la juridiction générale d'un Etat sur une
bande étroite d'eau le long de sa côte et une juridiction spéciale
plus large destinée à protéger ses intérêts fiscaux, a été soutenue
depuis tant d'années par la plupart des Etats maritimes qu'elle
finit par devenir une règle coutumière du droit des gens, permettant à un Etat côtier d'exercer la juridiction sur des navires
étrangers au dela de ses eaux territoriales. De même Philippe
C. Jessup. après avoir cité l'essai de justification du Chief Justice
John Marshall dans le cas de Church V. Hubbart - selon lequel si
de semblables prétentions à la juridiction sont de nature à vexer
et à troubler inutilement le commerce légal de l'étranger, les Etats
étrangers résisteront à son exécution. Si elles sont raisonnables
et nécessaires pour la protection des lois contre toute violation,
de distingués légistes internationaux, recommandent de distinguer
entre une juridiction générale sur les eaux territoriales et des juridictions spéciales sur une zone contigue. L'article 20 du projet de
la a Harvard Research sur le droit des eaux territoriales (1929)
prévoit (") " La navigation en haute mer est libre pour tous les
Etats, Toutefois, sur la haute mer proche de la mer . marginale ,
ils si soumettront ("). - conclut : . II paraît cependant y avoir
des preuves suffisantes d'acquiescement aux prétentions raisonnables pour justifier l'opinion selon laquelle une règle coutumière
du droit des gens est née en vertu de laquelle ces actes peuvent
(
un Etat peut prendre telles mesures qui lui paraîtraient nécessaires
pour l'exécution dans son territoire ou dans ses eaux territoriales,
de ses lois ou règlements en matière de douane, de navigation,
d'hygiène ou de police, ou pour sa protection immédiate. La
Harvard Research " ajoute ce commentaire (*) " Un examen de
la pratique des Etats révèle des exemples fréquents d'actes d'autorité, accomplis par l'Etat limitrophe en dehors de la limite des
3 milles, II pourrait paraître impossible d'adopter la limite des
3 milles pour l'étendue de la mer . marginale 10 et de rejeter la
possibilité d'exercer quelque autorité sur la haute mer adjacente.
Pareille idée ne concorderait pas avec la coutume internationale
actuelle et elle ne constituerait pas une modification désirable du
(in) Oppenhem's International Law. y éd. (LACTERPACHT). vol. I (1937).
section 190 (i)
(") W E Jurisdiction in Marginal Seas - With special reference
1 Sunguling (1929). PP 373-380
(*2) Church 1. Hubbart, C S. Supreme Court (1804), 2 Cranch 187. Marshall
ajoutait Dans certaines mets el sur diverses cotes, on tend à admettre un
purcours plus ou moms limite dans lequel s'exerce la surveillance du gouverne-
ment Ainsi dams la Manche, oil une tris grande partie du trafic destiné à on
venant de tout le mord de Europe passe à travers une mer très étroite. la saisie
do navires, lorsqu'on soupcome une tentative de trafic illicite, doit nécessairement être restreinte is des limites très étroites: mais, au contraire, le long de la
cite de l'Amérique du Sud. rarement fréquentée par des navires, saul pour le
(3) P. C. JESSEP. The Law of Territorial Waters and Maritime Jurisdiction
(1927). pp. 92, 95: efr. également, ch. 11.
commerce illicite, la vigilance du gouvernement pourrait être un peu plus étendue: les nations étrangères se soumettent à de pareils règlements pour autant
quits scient raisonnables et réellement nécessaires pour protéger le monopole
do commerce colonial que réclament toutes les nations ayant des possessions
éloignées Si ce droit devait être trop étendu, son application serait contestée.
(" Vol. 3, pp. 439, 446.
(22) P. 333.
(25) Id., p. 251.
(
123
HERBERT W. BRIGGS
234
LES ÉTATS-UNIS ET LA L01 DE 1935 SUB LA CONTREBANDE
18
19
droit actuel. II parait, toutefois, possible d'adopter un des points
de vue suivants a) La mer . marginale doit être définie de telle
façon qu'elle couvre cette superficie maximum dans laquelle un
Etat côtier peut exercer l'autorité de n'importe quelle façon, et
cette définition peut être jointe au refus de toute espèce de pouvoir en dehors de la limite de la mer territoriale; ou b) la mer
territoriale doit être définie comme étant une bande sur laquelle
l'Etat côtier exerce la pleine autorité, mais il peut être admis
que l'Etat côtier puisse accomplir certains actes d'autorité sur la
haute mer adjacente. au dehors de cette limite... Pour les raisons
qui ont été indiquées antérieurement, c'est ce dernier point de
vue - qu'adopte la . Harvard Research :
peuvent étendre leur juridiction au delà de la mer territoriale,
parallèlement à cette mer. sur une distance supplémentaire de...
milles marins, pour des raisons de sécurité et dans le but d'assurer
l'observation des règlements sanitaires et douaniers (").
Enfin. la " Base de discussion n° 5. présentée par le Comite
préparatoire à la Conférence pour la codification du Droit international tenue à La Haye en 1930 s'exprime en ces termes Sur
la haute mer contigué aux eaux territoriales, l'Etat riverain peut
prendre les mesures de contrôle nécessaires en vue d'éviter sur
son territoire ou dans ses eaux territoriales soit les contraventions
à ses lois de police douanière ou sanitaire, soit les atteintes à sa
sûreté de la part de navires étrangers. Ces mesures de contrôle
ne pourront être prises au delà de 12 milles marins à compter
de la côte (").
A la Conférence de La Haye de 1930, les Etats ne parvinrent
pas à s'entendre sur l'étendue de la mer territoriale ou sur la
De même. l'Institut de Droit international dans sa session de 1928
à Stockholm. rejeta, par 34 voix contre 8, un amendement aux
termes duquel la juridiction spéciale sur une zone contiguê devait
être basée sur des conventions particulières, et adopta, par 32 voix
contre 8. la disposition suivante : Art. 12. - Dans une zone sup-
question de la zone contigue. Cependant, le Prof. Jesse S. Reeves,
conseiller technique de la délégation américaine à La Haye, fait
plémentaire contigué à la mer territoriale, l'Etat côtier peut prendre
les mesures nécessaires à sa sécurité, au respect de sa neutralité,
à la police sanitaire. douanière, et de la pêche. Il est compétent
pour connaitre, dans cette zone supplémentaire. des infractions aux
lois et règlements concernant ces matières. L'étendue de la zone
supplémentaire ne peut dépasser 9 milles marins. . ("). De la même
235
à ce propos les commentaires suivants Les Etats qui n'expri-
(
manière. le projet de convention amendé par Schücking, de
Magalhaes et Wickersham pour le Comité des experts pour la
codification progressive du droit international distinguait entre
maient pas le désir d'une zone contigue pour l'un ou l'autre motif
ne formaient qu'une petite minorité. Les raisons pour lesquelles
il fallait reconnaitre semblable zone, et la mesure de la juridic-
tion à exercer par l'Etat riverain dans cette zone, soulevaient
beaucoup de divergences. Exécution de la législation douanière,
surveillance et même contrôle des pêcheries, et sécurité de l'Etat
riverain. ce furent là les motifs principaux invoqués en faveur de
la théorie de la zone contiguê: on insistait sur l'un ou l'autre de
ces motifs d'après la politique ou le point de vue adopté par un
une limite de souveraineté de 3 milles et une zone contigue, en
décidant dans son article 2: . Au delà de la zone de souveraineté,
les Etats peuvent exercer leurs attributions administratives fondées sur des raisons douanières ou de nécessité vitale. Y sont
Etat particulier (").
Une étude des réponses adressées par les gouvernements au
Comité préparatoire (") et des procès-verbaux de la Confé-
inclus les droits de juridiction nécessaires à leur protection D (").
Que l'on consulte également l'article 12 du projet 12 de l'Institut
américain de droit international : Les républiques américaines
(2) Supplém spécial au American Journal of International Law, 1926, vol. 20,
p. 324.
(") Soc. des Nat., C. 74. M. 39, 1929. V. 2, p. 34.
(42) REEVES, . The codification of the Law of Territorial Waters P. 24 American
Journal of International Law (1930), 486, 494.
(2) Annuaire de Unstitut de Droit International, 1928, pp. 667. 669. 758 La
June
de 9 milles fet ajoutée is la limite des 3 milles, faisant ainsi, au
total 12contigue
milles
(* Société des Nations Conférence pour la codification du droit international
(ii) Soc. des Nat., C. 1% M 70. 1927. V. 1, pp. 29-75, p. 72. Réimprimé en
suppl. spécial à (1926). P. 141.
Bases de discussion, 1. II. Eaux territoriales, C. 74, M. 39, 1929, V. 2. pp. 104-193.
(
124
HERBERT W. BRIGGS
20
21
236
rence révèle que les Etats suivants étaient disposés, soit avant
soit pendant la Conférence, soit avec des réserves soit sans réserves. à accepter en principe, ou n'étaient pas opposés en principe
à admettre une zone contigué pour diverses raisons Allemagne,
Etats-Unis d'Amérique, Belgique, Chili, Cuba, Danemark, Egypte,
Espagne. Estonic. Finlande. France, Grèce, Irlande, Italie, Japon,
Lettonie, Pays-Bas Norvège. Perse. Pologne, Portugal, Roumanie,
Turquie, Uruguay, U. R. S. S., Yougoslavie.
II faut noter que les points de vue exprimés par les gouvernements à cette Conférence en ce qui concerne la validité, la nature
et l'extension d'une zone contiguë, ne correspondaient pas toujours avec l'opinion qu'ils avaient exprimée avant la Conférence,
ni avec leur pratique antérieure ("). Par exemple, la Grande-Bretagne qui avait été longtemps un champion de la hovering legislation P. dans sa réponse au Comité préparatoire et à la Conférence s'opposait à la zone contigue, mais réitérait sa bonne volonté
de négocier des conventions spéciales sur l'extension de la limite
des 3 milles ("). L'Union Sud-Africaine était d'accord avec la
Grande-Bretagne, à part qu'elle déclarait, dans sa réponse au
Comité préparatoire. que les Etats peuvent exercer, en dehors de
la limite des 3 milles, " les droits spéciaux qui peuvent être convenus ou qui ont toujours été reconnus ("). L'Irlande reconnaissait e que dans certains pays et pour certains buts existent les
nécessités du genre de celles exposées dans les Bases de discussion n° 5 . ("). La Roumanie, l'Uruguay et la Yougoslavie réservaient leur attitude . dans la question de la zone contigue, ce
qui indique, peut-être. qu'ils n'étaient pas opposés en principe
à pareille zone. Le Japon. tout en étant. en principe, nettement
opposé à l'idée d'une zone contiguë, manifestait à la Conférence
(*) Id. Minutes of the Second Committee (Territorial Waters). C. 351 (b).
M. 16 (b). 1930, V. 16, particulièrement pp. 123-125
(**) En ce qui concerne la surveillance de la pratique des Etats, avec référence
à la prétention à la juridiction dans une zone contigué. voir GIDEL op. cit..
vol 3. livre I. chapitre II. spécialement pp. 93-124: JESSUP. op. cit., chap. II: MASTERSON op. cit.
LES ÉTATS-UNIS ET LA Los DE 1935 SUR LA CONTREBANDE
la bonne volonté de discuter la question d'une zone contigué
pour a des pouvoirs douaniers et sanitaires, pour autant qu'ils
soient reconnus par les usages existants (").
En conclusion, on peut citer Gidel: Des indications fournies
plus haut (livre premier, chapitre deuxième, II, 4°) sur les dispositions législatives ou réglementaires des différents Etats, concernant l'étendue des espaces maritimes adjacents soumis à leur
compétence, il résulte que seuls la Grande-Bretagne et l'Empire
britannique, le Japon, les Pays-Bas, le Portugal, la Yougoslavie
et la Colombie n'ont pas institué de zones spéciales douanières,
les trois dernières de ces Puissances semblant d'ailleurs ne pas
avoir procédé à cette institution pour des raisons de fait, sans
être hostiles en principe à la reconnaissance de telles zones (").
La theorie de la Tolérance .
(
Si l'on peut considérer que l'existence dans la pratique et. par
conséquent, la validité comme coutume légale de la zone contigue sont, en droit international, bien établies, on est moins d'accord en ce qui concerne l'étendue territoriale et la nature juridique
exacte de cette zone. Considérons tout d'abord ce dernier point :
Les publicistes qui ont défendu l'exercice de la juridiction dans
une zone contigué peuvent être classés comme suit 1) ceux
qui soutiennent que cet exercice de la juridiction est un droit
selon le droit international, et 2) ceux qui le défendent en se
fondant sur la théorie de la tolérance . En ce qui concerne
la défense de la compétence dans la zone contigue comme droit
basé sur le droit international coutumier. que l'on consulte les
opinions, citées précédemment de Oppenheim, Masterson,
Jessup, Gidel, the . Harvard Research . l'Institut de Droit'international, . The American Institute of International Law D. et le
Comite préparatoire de la Première Conférence de codification
de La Haye, dans les Bases " n° 5.
La théorie de < tolérance . défendue par Sir Travers Twiss,
(42) S. d.N. C. 74, M. 39, 1929. V. 2. p. 162: S. d. N., C. 351 (b). M. 145(b).
1930. V. 16, P. 126. Cfr. également note 60. plus bas.
(") S. N. C. 74, M. 39. 1929 V. 2. p. 106, Les italiques ne figurent pas dans
l'original
(**) S. N. C. 351 (b), M. 145 (b). 1930, V. 16, p. 124.
237
(**) Id., p. 126.
(*) GIDEL op. cit., vol. 3, p. 442.
(2*) V. ci-dessus, pp. 232 et suiv.
125
HERBERT W. BRIGGS
238
23
LES ÉTATS-UNIS ET LA LOI DE 1935 SUR LA CONTREBANDE
239
Lord Phillimore, W. E. Hall et Sir Charles Russell, entre autres
est définie par Twiss de la manière que voici:
nue et qu'il # permet très volontiers qu'un Etat étranger prenne
C'est uniquement sous le couvert du Comite des Nations en
matière commerciale et sanitaire qu'un Etat peut se permettre
de renforcer un point de sa loi civile concernant les navires étrangers, qui n'ont pas encore atteint les limites de sa compétence
maritime. Un Etat exerce en matière commerciale pour la protection de ses ressources maritimes, et en matière sanitaire pour
la protection de la vie de sa population une compétence tolérée,
en dehors des eaux territoriales... . le professeur Hyde écrit : . II
(Sir Charles) nie, cependant, que de tels actes rencontrent, toujours, dans tous les cas, l'assentiment général, notamment si on
a tenté de faire exécuter des lois à une distance considérable de
la terre ferme: il nie que dans un tel cas on puisse les défendre
comme exercice d'un droit à l'encontre d'un Etat qui élèverait des
objections. En admettant l'acquiescement des Etats à l'exercice
d'une telle juridiction, même d'un champ très limité, l'éminent avocat pose le fondement le meilleur pour l'existence de ce droit dans
le droit international ("). Dans le même sens, le professeur Hessel E. Yntema, qui prépare pour le Département de la Trésorerie
des Etats-Unis, une Opinion on the Validity of Hovering Legislation in International Law >> ("), écrit que la théorie de la tolé-
des mesures raisonnables de prévention, dans une distance limitée
dont l'extension ne parait pas être bornée par une limite bien
marquée. De plus, elle ne peut être exercée dans les eaux juridictionnelles de quelque autre Etat. mais uniquement sur ses
propres navires et sur ces navires étrangers seuls qui ont un
chargement pour un de ses ports. Si, donc, les lois fiscales ou les
règlements de quarantaine d'un Etat sont de nature à être vexatoires ou à troubler inutilement le commerce étranger, les nations
étrangères s'opposeront à leur application. Mais si, par contre, ils
sont raisonnables et répondent à une nécessité réelle, ils seront
admis ob reciprocam utilitatem. Dans les cas ordinaires, lorsqu'un
navire marchand a été saisi en pleine mer par un croiseur d'une
puissance étrangère. alors que ce navire approchait de la côte
de cette puissance avec l'intention de faire un commerce illicite,
la nation dont le pavillon commercial a été violé, offensé par la
saisie, renonce. en pratique, à exercer ses droits à des réparations,
son navire étant considéré comme ayant agi avec mala fides et.
par conséquent, comme ayant forfait, et perdant tout droit à la
protection de sa nation - (").
Cette théorie de . tolérance " est critiquée par Oppenheim ("),
Piggott (") et C. C. Hyde. En se référant à l'argumentation développée par Sir Charles Russel dans le " Behring Fur Seal Arbi-
tration selon laquelle il est entendu que les lois " hovering
admettent . qu'en principe aucun Etat civilisé n'encouragera les
infractions aux lois d'un autre Etat, lois dont la justice est recon(" Cir. l'opinion du Dr. YSTEMA. dans Hearings, pp. 111 et suiv.
(** Twiss The Law of Nations (1861). p. 263.
(" Loc. cit., sec. 190 (i).
(**) Nationality (1907). Part II. pp. 40-32
rance reste le droit toléré ou permis par l'acquiescement
général qui, ainsi que le juge pertinemment Hyde, constitue la
meilleure base pour l'existence du droit. II ajoute : L'exercice
du droit est conditionné par le caractère raisonnable attribué aux
mesures employées, et à l'étendue soumise à la surveillance; une
(
faute honnête dans l'exécution n'est pas,une excuse: si, dans un cas
particulier. la saisie est estimée injustifiée, elle peut donner lieu à
une protestation de la part du gouvernement étranger; si cette protestation s'avère fondée, elle doit donner lieu à réparation. II est
difficile de résumer toutes ces observations en un simple mot.
La théorie de . tolérance , en décrivant cet ensemble d'idées
comme un droit toléré. si elle souligne bien ses caractéristiques
qualifiées, est, cependant, défectueuse en ce qu'elle suggère que
l'existence du droit dépend de l'absence de protestation. Si l'assentiment est la preuve irréfutable du droit, cela ne veut pas dire que
le droit puisse disparaitre devant une protestation non fondée P. A
quoi on peut ajouter les mots de Gidel. qui, après avoir cité Marshall
dans Church v. Hubbart ("), écrit : a Cette manière de voir qui
(**) C. C. HYDE. International Law chiefly as interpreted and applied by the
Unites States, p. 420.
(35) Imprimé dans Hearings, pp. 82-124, 121.
(ST) Voir plus haut, p. 236.
126
HERBERT W. BRIGGS
LES ÉTATS-UNIS ET LA L01 DE 1935 SUR LA CONTREBANDE
24
940
25
diction douanière sur les bateaux étrangers à plus de 12 milles
marins de la côte. Les réponses des gouvernements au Comite
préparatoire de la Conférence de La Haye (1930) pour la Codification amenèrent le Comité à adopter la limite des 12 milles
dans ses . Bases n° 5, d'après l'accord de l'opinion ("). La zone
de 12 milles était également recommandée par l'Institut de Droit
international en 1928 ("), et est celle préconisée par Gidel (").
La Harvard Research . d'autre part, commente en ces termes
l'article 20 de son projet de Droit des Eaux territoriales (") La
distinction entre la mer marginale (de trois milles) qui est soumise
à la souveraineté de l'Etat côtier. et la haute mer, est définitivement admise. Au cours des siècles passés, maints Etats ont pris
s'accorde particulièrement avec la conception que la zone conti.
que douanière repose essentiellement sur la courtoisie internationale et sur l'assentiment effectif ou présumé des autres Etats,
doit être retenue également dans la conception qui est la nôtre,
que la zone contiguê douanière procède d'un véritable droit fonde
sur la coutume internationale (").
Le critère de raisonnabilité .
En ce qui concerne l'étendue territoriale de la zone contigue,
les Etats-Unis, depuis 1790 jusqu'avant la promulgation de la loi
contre la contrebande de 1935, ont estime qu'une distance de
12 milles marins convenait parfaitement pour l'application de leur
législation douanière ("). Bien que la Grande-Bretagne, avant 1876.
ait établi des zones douanières allant de 2 lieues jusque 100 lieues
(300 milles marins) ("). peu d'Etats entreprirent d'exercer la juri-
zone contigué à la Conférence de Codification (La Haye, 1930). la législation
britannique actuelle permet la saisie, sous certaines conditions, des bateaux
étrangers au delà de la limite des 3 milles Un examen des sect. 179, 180 et 200
de la . British Customs Consolidation Act de 1876 (39 et 40 Vict. C. 36) a
convaincu l'auteur de ce que le Dr. Yntema a raison lorsqu'il écrit . que la
Customs Consolidation Act de 1876, qui constitue l'actuelle législation de la
Grande-Bretagne, et qui a été déclarée conforme aux principes du droit international, contient au moins trois sections suggestives, qui impliquent le droit,
(") GIDEL op. cit., vol. III, p. 449.
(**) Durant les négociations relatives au premier traité sur les liqueurs celui avec la Grande-Bretagne en 1922-1923 - les Etats-Unis proposèrent la
reconnaissance, dans le traité et par les deux Etats, d'une zone douanière de
12 milles Cette proposition fut rejetée par la Grande-Bretagne pour la raison
toutefois rarement exercé au cours des dernières années en raison de l'absence
de contrebande, d'étendre le contrôle douanier à une distance indéfinie en
haute mer au dela de la limite des 3 milles aux bateaux et aux sujets étrangers,
droit limite dans le cas de la section 179 par la précision que ces navires
que le fait d'établir une limite en milles pourrait être de nature à affaiblin le
principe de la limite des 3 milles des eaux territoriales, La Grande-Bretagne
proposait, éventuellement, la formule de . la distance parcourue en une heare
de navigation . (limitée exclusivement pour les liqueurs alcooliques) au best
(
de la zone définitive de 12 milles Au surplus, aucun droit réciproque ne fut
conféré par le traité Le quid pro quo britannique permettait aux navires britanniques d'avoir des liqueurs à bord, sous scellés, lorsqu'ils étaient dans les
ports des Etats-Unis Clr. Cook, v. U. S., 288 U. S. (1933), 102. Cfr. également
ou ces personnes devraient être trouvés ou découverts au cours du même voyage,
le bateau appartient en partie à des sujets britanniques ou si la moitié du
personnel à bord est britannique, dans une limite de 3 lieues de la côte du
Royaume-Uni, ou, en d'autres cas, à une lieue, et. dans le cas de la section 180,
limité aux bateaux, appartenant même en partie à des sujets britanniques ou
dont la moitié du personnel à bord est britannique. Voici un précédent parti-
JESSER. op. cit., ch VI: MASTERSON op. cit., pp. 326-352
culièrement frappant, confirmé par une législation deux fois séculaire, qui souligne ce principe qu'un Etat est en droit, selon ses besoins, de prendre toutes
mesures de répression contre la fraude dans ses eaux territoriales, en dehors
I
En se référant à ce quid pro quo, il est intéressant de noter que le Département de la Trésorerie des Etats-Unis établit qu'un des objectifs de la sect.
de La loi sur la contrebande était . de pourvoir à une base effective pour les
241
de la limite de la mer côtière. Le résultat significatif de la longue expérience
des lois britanniques de contrôle est que les dispositions actuellement en
vigueur s'appliquent apparement, sans limitation de distance, aux hateaux
négociations à entreprendre avec les gouvernements étrangers en ce qui concerne
l'extension ou le renouvellement des traités sur les liqueurs Les traités sur les
liqueurs étaient inspirés par la loi de prohibition qui refusait aux bateaux étrangets le droit de transporter des liqueurs à bord dans la limite de nos 3 milles
atteints par ces dispositions qui auront été trouvés dans la distance indiquée de
la côte britannique, peu importe l'endroit ou le délit dont ils sont coupables a
été commis ou la place de la saisie. . Hearings, p. 89. Cfr. également JESSUP.
l'autorisation Dans les traités sur les liqueurs, les bateaux des parties contractantes avaient
op. cit. p. 79.
de transporter des liqueurs comme provision de bateau dans nos
eaux territoriales Avee l'abrogation de cette loi, il se peut que les puissances
étrangères contractantes the désirent plus continuer à appliquer les traités sur
les liqueurs, depuis qu'a leur point de vue les raisons sur lesquelles ces traités
( Voir plus haut, p. 235.
(su) Voir plus haut, p. 234.
(er) Op. cit., p. 449. GIDEL est désireux . d'assouplir la règle des 12 milles par
la règle alternative de la distance susceptible d'étre parcourue en une heure par
1. navire suspect (navire magasin ou navire de contact). . Id., pp. 449-450.
étaient londes n'existent plus. Hearings, p. 150.
(**) Loi de Georges III. c. CXXI (12 juillet 1805). Voir MASTERSON, op. cit.
PP 77 et saiv. II faur noter quen dépit de l'opposition britannique à l'idée d'une
(") Harvard Research (1929), p. 334. Cir. le texte de l'article 20 cité plus haut.
O
127
HERBERT W. BRIGGS
26
912
27
LES ÉTATS-UNIS ET LA L01 DE 1935 SUB LA CONTREBANDE
243
certaines mesures en haute mer hors des limites de la mer mar-
doit inspirer la loi aujourd'hui en discussion, a été établi dans le
ginale. Cet article voudrait restreindre l'adoption de semblables
mesures à cette partie de la haute mer adjacente à la mer marginale. II semble inutile de tenter de fixer ce qui est adjacent
en nombre de miles, puisque les pouvoirs définis dans cet article
ne dépendent pas de la souveraineté sur les lieux et ne sont pas
limités à une étendue géographique qui pourrait être déterminée. La distance à partir de laquelle ces pouvoirs peuvent être
exercés est déterminée non en - mileage . mais par la nécessité de l'Etat côtier et selon la relation entre les intérêts du terri-
droit américain par le Chief Justice Marshall dans a Church V. Hub-
toire de cet Etat et les actes posés en haute mer. Le fait de reconnaitre que de telles mesures sont correctes lorsqu'on peut démonIIT leur nécessité pour l'exécution des lois fiscales, des lois sur la
navigation, des lois sanitaires ou de police, ou pour une raison
de sécurité immédiate, ce fait modifie, en un certain point, les
principes généraux de la liberté de navigation en haute mer, mais
cette modification est ici extremement limitée, et elle parait tout
à fait raisonnable en raison du fait qu'elle représente une très
longue pratique suivie par beaucoup d'Etats
Le raisonnement de la " Harvard Research coincide, dans
une large mesure. avec les vues des auteurs de la loi sur la contrebande. M. C. M. Hester. du Département de la Trésorerie des
Etats-Unis, qui participa largement à la rédaction de la loi, faisait remarquer au Comité de la Chambre des Représentants lors
de l'examen du projet . - l'écrasante majorité des nations civilisées a étendu sa compétence pour certains buts de sécurité
jusqu'à une distance variable mais considérable au delà des eaux
territoriales. Cette zone plus lointaine est parfois désignée comme
eaux juridictionnelles 11. On a contesté ici que bien que les
limites des caux territoriales soient fixées dans la pratique internationale (et ceci est. comme on l'a précédemment indiqué, cepen-
dant douteux) il n'y ait pas de règles fixes dans les us et coutumes des nations qui prescrivent les limites des eaux juridictionnelles si ce n'est la règle de raisonnabilité. et qu'une nation
puisse exercer son autorité en haute mer sur l'étendue et la distance qu'elle juge raisonnable et nécessaire pour se proteger.
elle-même et ses nationaux. contre tout sévice. Ce principe. qui
bart (2 Cranch 187 (1804) (").
La loi sur la contrebande et le critère de raisonnabilité.
Lorsqu'on part de l'hypothèse que le critère de raisonnabilité
est le principe de base internationale. en relation avec la hovering législation, et lorsqu'on se rappelle l'avis de Sir Francis
Piggott (") selon lequel . les lois hovering sont, en principe,
valables et autorisées par le droit des gens aussi longtemps que
les conditions essentielles sont remplies que les dispositions de
la loi et que la distance dans laquelle les opérations en haute mer
sont autorisées soient raisonnables . la raisonnabilité particu-
lière de la loi américaine de 1935 sur la contrebande peut se
défendre par les arguments suivants
1. La . customs-enforcement area to peut être proclamée seule-
ment si les navires " hovering . sont en effet à un endroit qui ne
soit pas situé à plus de 50 milles en dehors de la limite extrême
des eaux douanières ("). La loi entend par hovering vessel "
(titre IV. sect. 401 (d) " tout navire qui est trouvé ou rôdant sur
la côte des Etats-Unis, en deça ou au delà des eaux douanières si,
d'après les antécédents. l'attitude. le caractère ou la position du
navire, on peut raisonnablement estimer que ce bateau est utilisé
pour introduire, favoriser ou faciliter l'introduction ou tenter d'introduire des marchandises aux Etats-Unis en contravention avec
les lois relatives aux revenus. >>
2. De plus, le commerce légitime est protégé par les dispositions de la loi qui autorisent l'examen des navires et, . si quelque
marchandise douteuse destinée aux Etats-Unis est trouvée à bord,
ou si sa présence antérieure est constatée à bord >, la confiscation
des bateaux manifestement suspects. Donc, selon les dispositions
de la section 206 de la loi, les navires qui présentent des indices
particulièrement suspects de contrebande sont : 1) les . hovering
vessels . tels qu'ils sont définis plus haut: 2) tout navire qui omet
(41) Hearings, p. 62.
(" PICCOTT. Nationality, Pt. II, .51 (Londres, 1907). cité dans Hearings, p. 113.
(**) Voir sect. 1 (a) et section 401 (c) de la loi, ci-dessus, pp. 226, 227.
HERBERT W. BRIGGS
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28
d'allumer ses feux conformément à la loi, à tout endroit quelconque
dans les eaux douanières ou dans une customs-enforcement area;
ou 3) tout navire qui se refuse à se laisser examiner et devient
sujet de poursuites: 1) ou tout navire qui est soumis par un traite
à l'examen (").
(** Section 206 de la loi sur la contrebande, rédigée comme suit (Traduction)
Sect. 206 La Section 587 de la loi tarifaire de 1930 (U. S. C., Suppl. VII,
titre 19. sec. 1587) est amendée comme suit [Traduction]:
Sect. 587. - Examen des navires hovering.
(a) Tout navire hovering ou tout bateau qui omet (sauf pour des raisons
inévitables) de tenir allumés ses feux comme la loi le requiert, et ce à n'importe
quel endroit soit dans les eaux douanières, soit dans l'espace soumis au contrôle
donanier établi par la loi contre la contrebande, ou est soumis à quelque poursuite par application de la section 381 de la loi, ou tout navire étranger auquel
h sous-section (h) de la dite section 581 est applicable et qui peut, en verta
dun arrangement spécial avec un gouvernement étranger, être examiné hors
do caux donanières des Etats-Unis, peut être, en tout temps, abordé et examiné
par n'importe quel officier des douanes, et les dispositions de la dite section 581
seront appliquées, aussi bien en debors que dans son district, et lorsque cet
officier est autorisé à examiner ce bateau, il peut également interroger sous
serment son capitaine à propos de sa cargaison et du voyage du bateau, et faire
conduire le bateau dans le port des Etats-Unis convenant le mieux pour l'examen de la cargaison, et si le maitre (capitaine) de ce bateau refuse d'accéder aux
endres réguliers donnés par cet officier ou ne répond pas, honnêtement et sincèrement. any questions qui lui sont posées au sujet du bateau, de son charge-
ment. on de son voyage. ce capitaine peut être condamné à une amende qui
The peut être supérieure à 5,000 dollars ni inférieure à 500 dollars Si, dans l'exa-
men de ce bateau ou de sa cargaison par un officier des douanes, on devait
treater à bord une marchandise suspecte destinée aux Etats-Unis, ou si la présence antérieure d'une telle marchandise est constatée à bord, ce bateau et sa
cargaison seront saisis et confisqués, Toute marchandise (à l'exception des vivres
pour la traversée) dont l'importation est prohibée aux Etats-Unis, ou qui consiste
en spiritueus, vins, ou autres boissons alcooliques, qui serait trouvée ou décou-
vette à bord, derra être présumée comme étant destinée aux Etats-Unis
M Si un hateau chargé d'une cargaison, découvert en n'importe quel endroit
des Etats-Unis soit dans les eaux douanières, soit dans la zone soumise au
controle dowanier établie selon la loi sur la contrebande, est ensuite retrouvé
lest ou ayant déchargé tout ou partie de sa cargaison, si le capitaine est incapable de rendre compte du port ou de l'endroit ou la cargaison ou une partie
de celle-ci. consistant dans des marchandises dont l'importation aux Etats-Unis
is prohibée on en spiritueux, vins ou autres boissons alcooliques, a été réguSeverement debarquée, ce bateau sera saisi et confisqué.
manière *c) Ancune des dispositions de cette section ne pourra être interprétée de
port à exposer à la confiscation un bateau qui se rend. de bonne foi, d'un
vent étranger 1111 autre port étranger. et qui poursuit sa course, comme le
.
et le temps le lui permettent
La Section 203 de la loi sur la contrehande est rédigée, partiellement. de la
manière suivante [Traduction]:
128
29
LES ÉTATS-UNIS ET LA L01 DE 1935 SUR LA CONTREBANDE
245
3. Par cette méthode de baser l'établissement d'une customsenforcement area sur l'évidence des faits existants, en établissant
cette zone uniquement aux endroits où des bateaux hovering
particulièrement suspects se trouvent en ce moment, le critère
de raisonnabilité est établi avant que la zone soumise au contrôle douanier soit établie. Si, au lieu de suivre cette méthode
prévue dans la loi, les Etats-Unis devaient, par leur droit interné,
étendre la zone de leurs eaux douanières à une étendue uniforme
Sect. 203 (a). . La section 581 de la loi tarifaire de 1930 (U. S. C., Suppl. VII.
titre 19. sec. 1581) est amendée comme suit:
Sect. 581. - Abordage de navires.
a) Tout officier des douanes peut à tout moment se rendre à bord d'un
bateau ou d'un véhicule en tout endroit des Etats-Unis, ou dans les eaux dona.
nières, ou, s'il y est autorisé, dans les zones soumises au contrôle douanier
établies par la loi sur la contrebande, ou en tout autre endroit autorisé, au
debors de comme dans son district, aux fins d'examiner les papiers et autres
documents, d'examiner, d'inspecter et de faire des recherches aussi bien sur le
bateau que dans n'importe quelle partie de celui-ci, aussi bien que toute personne, toute malle, tout paquet ou toute cargaison à bord, et. pour ce faire, il
peut appeler et faire stopper ce bateau ou véhicule et faire usage de tous les
moyens nécessaires pour contraindre ce bateau à obéir...
d) Tout navire ou véhicule qui, à un endroit autorisé, est requis de stopper
par un officier de la douane, ou qui est requis de stopper par un signal fait par
KEES bateau au service de la douane, portant l'insigne et le pennant prescrits pour
ces bateaux par le Président, ce bateau doit s'arrêter, faute de quoi, s'il lui est
requis de s'arrêter, il pourra être l'objet de poursuites et le capitaine du batiment sera passible d'une amende qui n'excédera pas 5,000 dollars et ne sera pas
inférieure à 1,000 dollars. II est du devoir des différents officiers des douanes
de poursuivre tout vaisseau qui serait passible de poursuites, de l'aborder et de
Texaminer, et d'examiner toute personne ou toute marchandise à bord, au dehors
aussi bien que dans leurs districts respectifs, et à tout endroit en haute mer.
ou, si la chose est permise par les autorités étrangères intéressées, partout ou
le bateau peut être poursuivi aussi bien qu'à tout autre endroit autorisé.
H e) Si lors de l'examen du bateau ou du véhicule, il appert qu'une infraction
à la législation des Etats-Unis a été commise ou est en train de se commettre
rendant ainsi le bateau ou le véhicule, ainsi que la marchandise ou une partie
de celle-ci, qui est à bord ou qui a été introduite aux Etats-Unis par ce bateau
on ce véhicule, passible de copfiscation ou d'une amende, ce bateau ou ce véhi-
cule, ou ces marchandises seront saisis et toute personne responsable d'une
telle infraction sera arrêtée.
D Les différents officiers des douanes devront saisir et s'assurer tout bateau,
véhicule ou marchandises qui seraient passibles de saisie, et arrêter les personnes
qui seraient passibles d'arrestation, en vertu d'une loi quelconque sur les revenus,
aussi bien hors de leur district que dans leur district respectif, et user de tous
les moyens nécessaires pour les arrêter et les saisir.
g) Tout navire, dans ou hors des eaux douanières, dont la marchandise
est ou a été illégalement introduite aux Etats-Unis, avec le concours de quelque
bateau appartenant aux Etats-Unis, ou qui appartiendrait, ou serait contrôlé
ou géré en commun avec ce dit navire, le dit navire sera considéré comme
HERBERT W. BRIGGS
30
31
216
247
sur une distance bien définie en haute mer pourrait constituer
un précédent indésirable .
4. Pour ce qui concerne les réclamations portant sur un bateau
saisie dans la zone soumise au contrôle douanier, la déclaration
du Président aux termes de laquelle un bateau est a hovering
avec une intention illégale hors des eaux douanières des EtatsUnis est une déclaration purement prima jacie rendant seulement
de 20 on de to milles de la côte. les nations étrangères, déclarait
M. Hester devant le Comité de la Chambre, pourraient objecter
que cette façon de faire violerait le droit international, car elle
ne correspondrait pas au critère de raisonnabilité . Au lieu
d'étendre notre contrôle douanier sur une largeur uniforme, continuait-il. - nous l'étendons uniquement à la zone dans laquelle
nous trouvons des contrebandiers, car nous pensons que cela
ne soulevera pas d'objection de la part d'un pays étranger, et que
cela sera conforme all critère de raisonnabilité sous l'empire du
droit international . ("). De même. le professeur Hessel Yntema,
possible de juger la cause du plaignant devant un tribunal.
Ainsi que le déclarait M. Hester devant le Comité de la Chambre ("): Le plaignant se présentera devant le tribunal et contestera que le gouvernement ait le droit de saisir le bateau à
l'endroit indiqué, car. en droit international, le gouvernement
n'avait pas le droit d'établir ce contrôle douanier à l'endroit où
le bateau a été saisi... Alors le tribunal aura à dire si, oui ou non,
en saisissant le bateau, le gouvernement a étendu son contrôle
douanier au delà d'une distance raisonnable. .
5. Enfin, naturellement, le caractère raisonnable de la législation hovering, le caractère raisonnable d'une saisie d'un bateau
étranger ou de la procédure employée pourra faire l'objet d'une
dont l'opinion est de poids. écrit (**) que dans la loi contre la
contrebande IL il ny a aucune prise de contrôle sur une surface
bien délimitée en haute mer. mais uniquement une extension
nécessaire. à un moment donné et à un endroit donné, du contrôle de la contrebande le long des côtes des Etats-Unis . De
plus il affirme que les dispositions de la loi " assurent au commerce maritime légitime la meilleure protection possible contre
les interventions du contrôle effectif de la contrebande: permettent
à CCS mesures d'être exécutées d'une manière correspondant exac-
tement aux besoins variables de l'administration: précisent l'autorité des officiers des Etats-Unis en ce domaine: renforcent les
obligations contractées par les Etats-Unis dans les traités: et respectent les considérations qui ont conduit à l'adoption de . la
distance parcourue en une heure de navigation par le bateau .
dans ce qu'on a appelé les - liquor treaties . notamment l'appréhension exprimée par certaines puissances et selon laquelle une
disposition pour l'application des mesures contre la contrebande
LES ÉTATS-UNIS ET LA LOI DE 1935 SUR LA CONTREBANDE
(
discussion diplomatique entre l'Etat du plaignant et les Etats-Unis.
Il est bon. toutefois, de rappeler ces mots du professeur Yntema ("):
l'exercice du droit est conditionné par le caractère raisonnable
des mesures employées et de l'étendue de la zone soumise à la
surveillance; une faute honnête dans l'exécution n'est pas une
excuse: si, dans un cas particulier, la saisie est estimée injustifiée,
elle peut donner lieu à une protestation de la part du gouvernement étranger: si cette protestation s'avère fondée. elle doit donner
lieu à réparation.. La théorie de tolérance P. en décrivant cet
ensemble d'idées comme un droit toléré. si elle souligne bien ses
étant employé aux Etats-Unis et comme tombant, de ce fait, sous les dispositions
de cette section
caractéristiques qualifiées, est. cependant. défectueuse en ce qu'elle
suggère que l'existence du droit dépend de l'absence de protesta-
In Les dispositions de cette section ne seront pas interprétées dans le sens
Januarises d'ordonner à un officier des Etats-Unis d'appliquer les lois des
tion. Si l'assentiment est la preuve irréfutable du droit, cela ne
Etate-Uni en haute met à un bateau étranger en contravention avec les traités
Jun' gonvernement étranger autorisant ou permettant aux autorités des Etats-
signifie pas que le droit puisse disparaitre devant une protestation
Unis d'aborder, d'examiner. de saisir ou d'appliquer au bateau en haute mer les
non fondée.
lois des Etats-Unio sant " as autorités y sont ou peuvent y être autorisées par
un arrangement spérial conclu avec ce gouvernement étranger.. .
Pour les raisons exposées ci-dessus, l'auteur de cet article estime
(m) Hearings pp. 73-74 Soumis, naturellement, à une limitation, dans l'espace,
(11) Id., p. 159.
de WH milles hers des cause douanières.
(" Id., p. 121
SI
(
129
130
HERBERT W. BRIGGS
32
818
33
que l'idée de la zone soumise au contrôle douanier telle qu'elle
est prévue dans la loi contre la contrebande n'est pas contraire
au droit international.
Application de la loi contre la contrebande (").
L'auteur estime. en outre. que l'application et l'administration
de la loi contre la contrebande au cours d'une période de trois
années ont également été conformes au critère de raisonnabilité a. Jusqu'a présent cinq zones soumises au contrôle douanier
ont été proclamées conformément à la loi, dans la période comprise entre le 7 août et le 27 décembre 1935. Depuis 1935. aucune
zone nouvelle n'a été annoncée. Le nombre de bateaux contreban.
diers.qui était de 39. avant que l'Acte n'ait force de loi, est tombé
à zéro en juillet 1936, Depuis lors, le nombre des bateaux hovering. signalés ou reconnus de la côte des Etats-Unis, a été le suivant en août 1936. un: de septembre à décembre 1936, aucun:
en décembre 1936. deux: de janvier à avril 1937. un; avril 1937,
trois: mai 1937. deux: juin-aout 1937. un: août 1937, deux: septembre 1937, un: octobre 1937 à avril 1938, aucun: avril 1938,
deux (') II n'a pas été jugé nécessaire, cependant, de proclamer
de nouvelles zones de contrôle douanier depuis 1935. Citons ici
M. Oliphant, Conseiller général du Département de la Trésorerie ("): C'est l'opinion du Département de la Trésorerie que
la loi contre la contrebande a. au mieux, atteint le but qu'elle
recherchait. Elle a été extremement efficace en supprimant la
contrebande exercée au moyen- de bateaux hovering et de bateaux
de contact au large de nos côtes, S'il y a eu des infractions spora-
diques de la part de bateaux hovering depuis les environs de juillet 1936, on ne découvre aucun signe d'un retour aux opérations
de contrebande entreprise sur une grande échelle, et l'organisa(1) Pour la préparation de cette section sur l'application de la loi, l'auteur
a été heureus de pouvoir compter sur le généreux concours de l'honorable
Herman Oliphant, conseiller général, Département de la Trésorerie des Etats
Unis, et de Thonorable Green H. Hackworth, conseiller juridique, Département
d'Eut des Etats-Unis, qui lui one permis de recueillir des informations supplé-
mentaires qu'il pu obtenir autrement.
(TD) Information
Etats-Unis
fournie à lauteur par le Département de la Trésorerie des
(**) Lettre de M. Oliphana à l'auteur en date du 23 mai 1938.
LES ÉTATS-UNIS ET LA L01 DE 1935 SUR LA CONTREBANDE
249
tion de groupements pour la fraude de liqueurs, si actifs dans
leurs opérations au large des côtes avant la mise en application
de la loi, parait ne plus exister... A mon avis, la loi contre la contrebande a joué un rôle important dans la suppression quasi totale
du problème de la contrebande des liqueurs. Le total des revenus
annuels perdus à cause de la contrebande des liqueurs qui était
estimé à 30 millions de dollars, même après l'abrogation ("), est
virtuellement descendu à zéro depuis l'établissement de la loi contre la contrebande, L'exécution plus effective et plus coordonnée
du travail du Département de la Trésorerie durant les trois dernières années a été. indubitablement, un grand facteur dans ce
résultat: mais on ne peut contester l'effet produit par la loi ellemême contre la contrebande. L'effet le plus important a peut-être
été d'ordre psychologique; la crainte produite par la loi dans les
cercles organisés pour la contrebande de l'alcool. En ce qui concerne le nombre de navires saisis, M. Oliphant
écrit . Suivant les rapports disponibles au Service, il y a eu
seize navires saisis par application de la loi contre la contrebande. Douze de ceux-ci furent confisqués, trois furent relâchés,
et un cas est encore pendant. Les seize saisies eurent lieu entre
le 7 septembre 1935 et le 25 avril 1936, date de la dernière saisie
opérée conformément à la loi. De ces seize navires, onze étaient
américains et consistaient, en grande partie, en petits bâtiments
de contact. de 7 à 13 tonnes. Aucun problème de droit international ne fut soulevé au cours de la saisie de ces onze navires
américains.
Quant aux cinq autres bâtiments saisis par application de la loi
contre la contrebande, trois d'entre eux étaient britanniques, un
norvégien et un mexicain. Parmi ceux-ci, un navire britannique,
le Popocatapelt fut saisi à environ 10.2 milles marins de la côte.
Un autre navire britannique, le Pronto, fut saisi à 7.5 milles de la
côte, et le troisième navire anglais, le Miserinko, fut saisi à environ
36 milles de la côte. Le navire norvégien Reidun et le navire mexicain, Molokai furent, tous deux, saisis au port.
Dans le cas du Reidun, et dans ce cas seulement, la décision
prise par les tribunaux a été publiée. Les renseignements fournis
(" Abrogation de l'amendement de prohibition.
HERBERT W. BRIGGS
35
LES ÉTATS-UNIS ET LA LOI DE 1935 SUR LA CONTREBANDE
251
34
250
enforcement area ou des eaux douanières . il livrait de grandes
par le Département de la Trésorerie nous font connaître la pro-
quantités d'alcool belge à des . rum-runners . britanniques
cédure suivie et les décisions finales prises pour les bateaux dans
(dont le bateau à essence britannique Pronto) qui l'y attendaient
suivant ce qui avait été précédemment concerté. Ces navires
les quatre autres cas:
Mexicain M/V Molokai. - Saisi au port de Los Angeles, Calj.
rapides . spread fanwise (s'éparpillèrent en éventail), vers
différents endroits de la côte des Etats-Unis, depuis le Maine
fornie. le 18 mars 1936. pour le motif que ce bateau était soupçonné
d'avoir pour dessein de se livrer à la contrebande de l'alcool aux
Etats-Unis Citation déposée au Tribunal du District des Etats.
Unis pour le District de la Californie méridionale, Division centrale. tendant à saisir le bateau pour infraction à la section 3 de
jusqu'en Floride, d'aucuns firent progressivement entrer, en contrebande, de l'alcool aux Etats-Unis, d'autres se firent saisir. Le
Pronto fut saisi et confisqué en janvier 1936 ("). Deux mois plus
tard. en mars 1936, le Reidun arrivait à New-York, avec un char-
la loi contre la contrebande. La procédure de saisie fut suspendue
sous l'ordre de l'Attorney General, et le bateau rendu au plaignant.
gement régulier de sucre de Cuba. II fut saisi dans le port de
New-York et poursuivi, inter alia, pour violation de la section 205
de la loi sur la contrebande prohibant le déchargement illégal de
boissons alcooliques (") à n'importe quel endroit en haute mer
adjacente aux eaux douanières des Etats-Unis D.
à
Britannique OS Popocatapelt. - Saisi le 7 septembre 1935
environ 10.2 milles de la côte. Citation du 24 février 1937 au
tribunal de district des Etats-Unis pour le district de New-Jersey
à Camden, N. J., pour infraction à la section 3 (a) de la loi contre
la contrebande, et à différentes dispositions de la loi tarifaire
(**) Voir plus haut.
(") Sect. 206. . La sect. 586 de la loi tarifaire de 1930 (U. S. C., Suppl. VII.
de 1930. La procédure en saisie est encore pendante.
titre 19. sec. 1586) est amendée comme suit [Traduction]
Sect. 586 - Déchargement ou transbordement illicite.
Britannique OS Pronto. - Saisi le 20 janvier 1936 à environ
7.5 milles de la côte. avec l'alcool provenant du Reidun, Bateau
immédiatement confisqué par un agent des douanes à Charleston. S. C., pour violation des sections 3 (a) et 7 de la loi contre
la contrebande et différentes sections de la loi tarifaire de 1930.
Britannique O/S Miserinko ("). - Saisi le 14 mars 1936, à 36 milles environ de la côte. Procès-verbal du 13 avril 1936 au tribunal
a) Le capitaine d'un navire venant d'un port ou d'une place étrangère
qui autorise le déchargement de marchandises (y compris les vivres de mer) de
ce bateau, à n'importe quel moment après son arrivée dans les eaux douanières
et avant que ce bateau n'ait atteint l'endroit désigné pour le déchargement de
ces marchandises, et avant qu'il n'ait reçu la permission de décharger, sera
(
possible d'une amende égale à deux fois la valeur de la marchandise. et qui ne
peut être inférieure à 1,000 dollars: ce bateau, sa cargaison et la marchandise
ainsi débarquée seront saisis et confisqués,
de district des Etats-Unis pour le district sud du Maine, à Portland, Maine. pour violation des sections 1 (a) et 3 de la loi contre
b) Le propriétaire d'un bateau venant d'un port ou d'une place étrangère
qui permet qu une marchandise (y compris les vivres de mer) dont l'importation est prohibée aux Etats-Unis, ou qui consiste en spiritueux, vins ou autres
liqueurs alcoolisées, soit, à n'importe quel endroit en haute mer adjacente aux
la contrebande, Bateau confisqué le 17 avril 1936.
eaux douanières des Etats-Unis, transbordée, ou placée ou reçue par quelqu'autre
Le cas du Reidun (") doit être examiné avec plus de détails.
Le Reidun, un bateau norvégien, quittait Anvers en 1935. avec un
chargement d'environ 120,000 litres d'alcool belge à débarquer
dans des ports canadiens En novembre, il arrivait à environ
120 milles au sud de Saint-Pierre-Miquelon, et à cet endroit. en
haute mer. à un point . éloigné de plus de 500 milles et d'un peu
moins de 600 milles de la côte des Etats-Unis et de toute customs(" Pour une discussion de ce cas, voir plus loin.
(**) (1936 District Court. Eastern District N. Y.) 14 Federal Supplement, 771;
15 id. 112 Clr. également SPISGARS loc. cit., p. 52.
bateau quel qu'il soit, alors qu'il connait, ou alors que les circonstances lui font
connaitre que le but est de rendre possible l'introduction, ou la tentative d'in-
troduction de cette marchandise ou d'une partie de cette marchandise aux
Etats-Unis, en violation de la loi, sera passible d'une amende égale à deux fois
la valeur de la marchandise, et qui ne sera pas inférieure à 1,000 dollars, et le
bateau d'oir la marchandise a été ainsi déchargée, sa cargaison et ces marchandises seront saisis et confisqués.
c) Le capitaine d'un bateau venant d'un port ou d'une place étrangère
qui permet qu'une marchandise (y compris les vivres de mer) destinée aux
Etats-Unis, et dont l'importation aux Etats-Unis est prohibée, ou qui consiste
en spiritueux, vins ou autres boissons alcoolisées, soit déchargée sans permis
de déchargement, à selqu'endroit en haute mer adjacente aux eaux douanières des Etats-Unis, transbordée, placée ou reçue à bord de quelque bateau
des Etats-Unis ou de tout autre bateau, proprieté d'une personne citoyen des
131
HERBERT W. BRIGGS
36
37
LES ÉTATS-UNIS ET LA LOT DE 1935 SUR LA CONTREBANDE
253
952
Dans un jugement provisionnel, le tribunal refusa d'admettre
la validité de la saisie faite à New-York pour le motif allégué, et
déclara qu'il était " irraisonnable de croire que le mot . adjacent . dans la section 205 pouvait inclure une distance au delà
des eaux douanières qui soit plus grande que la distance permise dans la custons-enforcement area, soit 50 milles au delà
des eaux douanières. De plus, disait le tribunal, a on peut observer
que le Statut contre la contrebande, pour autant que cela concerne les nations ayant un traité, n'a nullement pour intention
d'étendre les droits juridictionnels des Etats-Unis au delà de ce
qui a été admis par les nations ayant un traité >: l'endroit du transbordement indiqué au procès-verbal n'est pas dans la limite d'une
heure de navigation stipulée au traité du 24 mai 1924 entre les
Etats-Unis et la Norvège, puisqu' . il n'est pas contesté que le
Reidun ait une vitesse de 500 milles à l'heure .
Bien que la décision du tribunal paraisse fondée, la référence
Etats-Unis ou domiciliée aux Etats-Unis ou d'une société constituée aux Etats
Unis, sera possible d'une amende égale à deux fois la valeur de la marchandise,
mais qui ne sera pas inférieure à 1.000 dollars, et le bateau dont la marchandise
a été déchargée et cette marchandise seront saisis et confisqués.
d) Si quelque marchandise (y compris les vivres) déchargée contrairement
any dispositions de cette section, est transbordée, placée ou reçue à bord d'un
autre bateau, le capitaine du bateau sur lequel la marchandise est ainsi chargée,
ainsi que toute personne concourant ou participant à ce chargement seront
passibles d'une amende égale au double de la valeur de la marchandise, et qui
are sera pas inférieure à 1,000 dollars, et ce bateau, sa cargaison et cette marchandise seront saisis et confisqués,
c) Toute personne qui, aux Etats-Unis ou en deça d'une lieue de la côte des
Etats-Unis est engagée pour. on aide ou participe au déchargement ou au trans
bordement d'une marchandise, en conséquence de quoi le bateau est soumis à la
confiscation selon les dispositions de cette section, cette personne, en plus des
antres pénalités prévues par la loi, sera passible d'une peine d'emprisonnement
ne dépassant pas deux années,
1) Lorsqu'une partie de la cargaison ou des vivres d'un bateau a été déchar-
gée ou transhordée par suite d'un accident, d'une tempête ou pour un autre
motil rendant la chose nécessaire, le capitaine de ce bateau et le capitaine
do bateau sur lequel cette cargaison ou ces vivres ont été transbordés notifieront, assissisti que possible, cet acte au Collector du district ou le décharge
ment ou le transbordement ont eu lieu, ou au Collector du district ou les
bateaus arriveront et aborderont en premier lieu, en lui fournissant la presive
que ces opérations ont été rendues nécessaires par accident, tempête on toute
autre cause de force majeure, et si le Collector reconnaît que le déchargement
- le transbordement of réellement du à un accident, à une tempête ou à une
autre nécessité. les peines définies dans cette section ne seront pas appliquées.
faite au traité avec la Norvège semble être à côté de la question.
Le tribunal a oublié de distinguer entre la saisie en haute mer au
delà de la limite du traité, ce qui serait illégal, et une saisie faite
à New-York pour une violation antérieure à la législation des EtatsUnis qui eut de l'effet extraterritorialement. En effet, dans une
seconde décision provisionnelle, en ce qui concerne l'affaire du
Reidun ("), cette distinction fut soulevée par le tribunal. Dans
ce cas subséquent, le Gouvernement des Etats-Unis avait modifié
ses conclusions et invoquait une nouvelle cause de confiscation.
La confiscation était basée sur la violation de la section 3 de la
loi contre la contrebande ("), et, notamment, sur le fait que le
Reidun, à Anvers, avait été équipé, en partie, dans le but d'être
employé pour frauder le fisc américain et avait été employé dans
ce dessein. La saisie, à New-York, fut provisoirement admise par
le tribunal, tandis que le jugement était tenu en suspens, sur la
base de la section 3 de la loi contre la contrebande qui dispose
que certains actes commis hors du territoire soumis à la juridiction des Etats-Unis, mais portant détriment aux Etats-Unis, sont
punissables, bien qu'on ne fasse ni saisie ni essai d'exécution, sauf
dans le territoire tombant sous une juridiction. Le juge Galston
dit notamment : . II n'est pas ici question d'infraction aux droits
des traités. II n'y est pas question de fouille ni de saisie en haute
mer hors de la zone soumise au contrôle douanier, ni au delà de
la distance d'une heure de navigation à partir de la côte. Les termes
" aux Etats-Unis ou ailleurs . tels qu'ils sont employés dans la
sous-section, sont, certainement, sans aucune ambiguité. L'absence
des mots . ou ailleurs dans la législation d'autrefois connue sous
le nom de . piracy-statutes est hautement significative; et pour
autant que cela concerne les bateaux étrangers, il n'y a aucune
présomption d'une limitation à la distance d'une heure de navigation, ainsi que cela existe dans les autres sections de la loi. Le
Congrès peut fort bien avoir eu l'intention de punir les personnes
qui conspirent, hors du territoire soumis à sa compétence, pour
violer les lois nationales, dans le but de les apprehender et de
les punir lorsqu'elles sont trouvées sur le territoire sur lequel il
(**) 1936 15 Federal Supplement, 112.
(N) Voir le texte de la sect. 3 plus haut. p. 4.
132
133
HERBERT W. BRIGGS
38
231
39
est compétent. Si le Reidun était équipé, comme on l'a soutenu,
pour passer des marchandises en contrebande et pour les introduire aux Etats-Unis et ce contrairement aux lois fiscales de cc
pays, il a couru le risque d'être puni en arrivant dans la zone de
contrôle douanier. Une décision au fond dans ce sens fut rendue
par le tribunal.
Cependant ce jugement ne fut jamais rendu. Le Gouvernement
norvégien protesta contre la saisie du Reidun et assura que
le Gouvernement norvégien s'efforcerait de prévenir les navires
norvégiens à ne plus se mêler. à l'avenir, à des entreprises similaires: sous l'ordre de l'Attorney General, la procédure fut interrompue et le Reidun rendu aux plaignants (").
II semble qu'à ce jour seul un navire étranger ait été saisi par
application de la loi contre la contrebande, en haute mer au delà
de la limite des 12 milles des eaux douanières, Ce bateau était le
bateau britannique Miserinko (53 tonnes, avec une cargaison
de 981 caisses d'alcool). et. par conséquent, un treaty vessel a
qui n'était pas soumis à la saisie à une distance supérieure
à celle d'une heure de navigation à partir de la côte. Ce cas n'est
pas rapporté dans les relations officielles et l'endroit de la saisie
n'a pas été nettement fixé. Le Département de la Trésorerie a
informé l'auteur de ce que la saisie a eu lieu près de la côte
du Maine, à un point situé à environ 36 milles E.S.-E. du phare
de Boon Island P. mais la copie du dossier du tribunal, obtenue
par l'auteur, établit que la saisie eut lieu à un point en haute mer
situé à 15.5 milles... de Jeffrey's Ledge Buoy dans la zone de
contrôle douanier n° 5. L'auteur n'a pu vérifier si le Miserinko a
été saisi dans la limite d'une heure de navigation à partir de la
côte. S'il n'en a pas été ainsi, il faut présumer que la saisie a été
faite en violation. à la fois du traité des liqueurs avec la GrandeBretagne et de la section 1 (b) de la loi contre la contrebande.
Le Gouvernement britannique n'a pas protesté contre la saisie.
(" Une information obtenue du Département de la Trésorerie et du Département l'Etat Voir également SPINGARN, loc. cit., p. 52. Le texte de la protestation
norvégienne of non recevable. mais, puisque le Reidun fut saisi en rade de New
York an cours d'un innocent voyage, on peut croire que la protestation se rap
portait plus à l'application estra-territoriale du droit pénal des Etats-Unis, qu'a
Texercice de Tautorité dans la zone contigue.
LES ÉTATS-UNIS ET LA 1.01 DE 1935 SUR LA CONTREBANDE
255
II faut ajouter que le Miserinko, quoique enregistré comme navire
britannique à Bridgetown, Barbadoes, Indes occidentales britanniques, était la propriété, de facto, et sous le contrôle d'un citoyen
des Etats-Unis, ainsi que le découvrit le tribunal et, de ce fait, le
Miserinko devait être considéré, dit le tribunal, comme navire
des Etats-Unis, dans le sens de la section 3 (b) de la loi contre
la contrebande. La copie de la décision du tribunal établit que
- le propriétaire et plaignant de ce navire et de cette cargaison
a accepté la confiscation prononcée.
II y eut peu de protestations diplomatiques contre la loi et son
application. L'auteur a été informé par M. Hackworth (") de ce
que " des notes, en date du 17 juin 1935 et du 2 juillet 1935 ont
été reçues de l'ambassade britannique et de la légation canadienne
demandant des éclaircissements sur les dispositions contenues
dans cette législation. alors qu'elle était en discussion au Congrès.
Une note datée du 6 août 1935 fut également reçue de l'ambassadeur de Grande-Bretagne à ce sujet. On peut ajouter que le Ministre de Norvège protesta contre la saisie du steamer norvégien Rei-
dun. qui fut ordonnée conformément aux dispositions de la loi.
Aucune communication n'a été reçue d'un autre gouvernement
étranger pour soulever quelque objection au sujet de cette loi. .
A part la seule exception éventuelle du Miserinko, on peut donc
conclure que l'existence et l'application de la loi contre la contrebande, et ce pendant une période de trois ans, ont. avec succès,
mis fin à toute la contrebande d'alcool organisée de la haute mer
vers les Etats-Unis, et sans violer les droits des Etats étrangers
ni le critère de . raisonnabilité .
(**) A la date du 23 juin 1938.
134
October 6, 1939
My dear Mr. President:
In view of yesterday's discussion
at Cabinet, I thought you would be interested in the inclosed memorandum.
Sincerely yours,
The President,
Hyde Park, N. Y.
135
October 6, 1939
My dear Mr. President:
In view of yesterday's discussion
at Cabinet, I thought you would be interested in the inclosed memorandum.
Sincerely yours,
The President,
Hyde Park, N. Y.
October 6, 1939
Ny dear Mr. President:
In view of yesterday's discussion
at Cabinet, I thought you would be inter
ested in the inclosed menorandum.
Sincerely yours,
The President,
Hyde Park, H. Y.
136
137
C
0
P
I
Secretary Morgenthau
October 6, 1939.
Mr. Foley
Re: Your Request for Information on the
Anti-Smuggling Act.
The Anti-Smuggling Act of August 5, 1935, was sponsored by the
Treasury Department as a result of the widespread post-repeal snuggling of
liquor into the United States along our seaboards which, at its peak in late
1934 and early 1935, was estimated to be costing the Government $30,000,000
annually in revenue losses. You will remember that on Merch 8, 1935, you
appeared at hearings held by the Ways and Means Committee on this bill and
made & strong statement in its support.
The Act, which widely extended the jurisdiction of the United States
over the waters adjoining its coasts, is based on the legal theory that
while a nation may not extend its territorial waters (which most nations,
including the United States, regard as extending to a distance of three miles
from shore, and within which the jurisdiction of & nation is 8.8 absolute and
complete, broadly speaking, as if the land extended up to that point), a nation
may, under international law, exercise limited jurisdiction for purposes of
national safety and protection of the revenue to such a distance from its
shores as is reasonably necessary for those purposes. That zone, which will
differ with circumstances and cases, is sometimes referred to 58 jurisdictional
waters.
The provision of the Anti-Suuggling Act which has attracted the most
interest and comment is section 1, which provides for the establishment of
"custons-enforcement areas". That section authorises the creation of such
areas beyond the existing 12-mile limit of customs control whenever the
President finds and declares that vessels are hovering or being kept off the
coast of the United States outside customs waters, and that, by virtue of
their presence, the unlawful introduction into or removal from the United
States of merchandise or persons may be accomplished or threatened. The
establishment of such areas is made subject to two geographical limitations:
(1) only such waters on the high seas should be within a customs-enforcement
area as are in such proximity to vessels hovering or being kept off the coast
that the smuggling of merchandise or persons may be carried on by, to, or
from such vessels, (2) no customs-enforcement area shall include waters more
than 100 miles in either direction up and down the coast from the immediate
area where the vessels involved are present (that is, 200 miles in all) or
more than 50 miles out to sea beyond the existing 12-mile customs limit
38
-2(that 1s, a total of 62 miles seaward). Within those custotis-enf'orcement
areas coast guard and customs officers, or other persons authorized by the
Secretary of the Treasury, are empowered to enforce those we which apply
to the high sells adjacent to American customs waters.
Sections 1 and 203 of the Act contain provisions authorizing American
officers to board, search, and seize vessels in custous-enforcement areas
when the circumstances warrant it.
It should be noted, however, th t there are specific provisions in
the ict precluding American officers from enforcing laws in to:s-enforcement
rene gainst vessels of nations with which we have treaties where such action
ould contravene treaties. The treaties which are contemplated in those pro-
visions of the Act are the so-called liquor treaties which the United States
h s with 16 other nations, including Germany, France, Poland, nd England,
which treaties authorise seizure of the vessels of such n tions only within
an hour's selling distance of the const.
Five custons-enforcement ar as were not up by presidential proclecation
between ugust and Decemb r 1935. Three of those extend in a line an proximately
from the Consdian border to Atlantic City, New Jersey, no the other two are in
the Gulf of Mexico. \though Liquor snuggling activity is now virtually nonexistent in those areas, the areas have never been terain ted by presidential
reclamation, which is required by section 1 of the Act.
The remaining provisions of the Act may be covered briefly. From the
standpoint of combating snuggling, the most important is section 3, which cub-
jects to forfeiture vessels built, fitted out, or employed for smugg ing or to
efraud the revenue. Other sections of the Act (1) rohibit knuggling offenses
by our national and vessels against the revenue laws of such foreign countries
as reciprocate by similarly penalizing their nationals nd vessels for smuggling
into the United States; (2) provide for the general increase o fines and
enalties relative to snuggling and for the enalizing of acts particul rly
indicative of snuggling activity but not otherwise cover by law; (3) rovide
for effective control over boats of less than 500 tons (which is
the type of boat usually used for liquor sturgling), and for similar control
over small contact boats which bring the contraband from hovering vessels; (4)
rovide for changes in rul 5 in proof in forfeiture proceedings to enable ef-
fective handling of such cases.
It is worth noting that the phrase "hovering vessel", which is used
frequently throughout the Act, is defined in the Act to mean a vessel found or
kept off our coast within or without customs aters if, from all the circumstances,
it is reasonable to believe that that vessel is being or my be used to facilitate
"the introduction or attempted introduction of merchandise into the United States
in violation of the laws respecting the revenue".
139
S
Two provisions of the Act which are perhaps northy of separate
mention are sections 205 and 206. Section ROB prescribes penalties and
forfeitures for vessels from foreign ports or places which (1) unlade any
merchandise within the customs waters of the United States d thout permit;
(2) trumship liquor, or merchandise the importation of which into the
United States is prohibited, to vessels of the United States within or
without customs waters; or (s) tranship liquor, or merchandise the importation of which into the United States is prohibited, to any vessel within or
without custome waters if the circumstances indicate a purpose to have the
liquor or merchandise smuggled into the United States. Section 206 subjects
to boarding and search any hovering vessel (as defined above), any vessel
which fails within customs waters (12 miles) or within a customs-onforoement
area to display lights required by law, or any vessel which fails to stop
when required be by a customs or coast guard officer. Such vessels may be
brought into an American port for examination, and for forfeiture if dutiable
merchandise destined to the United States is found to be, or to have been,
on board the vessel.
The Anti-Stuggling Act has been markedly successful in results. To
it, as well as to the Treasury's more effectively coordinated enforcement
activities, may be attributed the virtually complete elimination of postrepeal liquor snuggling which was once costing the Government $30,000,000
a year. The effect of the Act, however, has perhaps been largely psychological
since there have actually been relatively few cases made under it and there
has been only one reported court opinion construing it. The Reidum (D.C.,
I.D.N.Y., 1936) 14 F. Supp. 771; 15 F. Supp. 112.
In this connection, I think you will be interested in the attached
reprint which we have just received of an article by a Professor of
International Law at Cornell University which recently appeared in French
in a Belgium periodical of international law, "La revue de Droit international
et de Legislation Comparee". This article quotes at some length your testimony
in 1935 before the Ways and Means Committee on the Anti-Stunggling Bill (see
page 3 of the reprint), as well as other statements made by you. The article
concludes that the Anti-Stuggling Act represents a sound exercise of extra-
territorial jurisdiction on the part of this country under international law
and that the Act has been eminently successful.
(Initialed) E. H. F. Jr.
copied 10/6'39
One original sent to
Attachments
68(e)
FEDERAL RESERVE BANK
Noted Cochram
B.
DATE October 6, 1939.
OFFICE CORRESPONDENCE
TO
CONFIDENTIAL FILES
140
OF NEW YORK
SUBJECT: TELEPHONE CONVERSATION WITH
L. W. Knoke
BANK OF ENGLAND.
I called Mr. Bolton at 9:30 this morning. 4.04 had just
been paid for sterling, I told him in reply to his question, and
the market continued a small one. Has there been any special reason
for the recent advance of sterling, he asked, and I outlined to him
briefly the observations most frequently heard in our market on that
point.
I referred to his cable of September 28 dealing with the
difficulties of the British Embassy's staff in cashing sterling bills.
I assumed that this was not an urgent matter as long as sterling was
at the present level and could he wait to receive a letter that I
was now preparing for him. "I'll await your letter; it is rather
a general matter anyhow," he replied.
For the next three or four months or more, Bolton then
stated, they would have rather substantial dollar balances before
the funds were dissipated for the payment of imports. Would it be
possible to invest a portion of them in United States Government
Treasury bills? I assumed, I replied, that he knew what the present
yield WASI .036 for last Monday's tenders; .082 for the week before;
.125 and .159 for a few weeks prior to that. The present yield of
.026 might improve a little but the recent .082 rate seemed quite
generally to be considered a fair return in prevailing circumstances.
.036, Bolton replied, would not seem the least bit interesting to
them and even if the return were about .08 they would not bother at
all. Were there any alternative investments available, he asked.
FEDERAL RESERVE BANK
141
OF NEW YORK
DATE October 6, 1939.
OFFICE CORRESPONDENCE
CONFIDENTIAL FILES
SUBJECT:
TELEPHONE CONVERSATION WITH
TO
L. W. Knoke
BANK OF ENGLAND.
FROM
2
I commented on the situation of the commercial bill market and the
difficulties we had had for years now in filling orders from abroad.
However, I would bear his problem in mind and let him know if there
was any change in the situation.
Generally speaking, Bolton continued, things were going
fairly well with them. The general control was settling down and
by the end of this month he was hopeful it would be running along
more or less normal lines. They had caught up with arrears, the
machine was working fairly well and before long he thought he might
be going home again at regular hours.
I asked what the reaction had been to Hitler's speech
but Bolton replied he had not spoken to anyone.
03V13038
eeer
-
20
TRENTHAND YRURAURT
record - to withD
control an of Income EXPERT
142
October 6, 1939.
MEMORANDUM
TO:
Secretary Morgenthau
mr
X
FROM: Mr. Gaston
Navy Intelligence reported to Coast Guard yesterday that
they had a call from Federal Communications reporting that they
and Hoover's F.B.I. had been asked jointly to supervise (that is,
to listen in and report on) radio communications. F.C.C. had
no idea how to go about it and asked for advice. Navy told
F.C.C. that Coast Guard was doing most of the supervision of ship
communications and other trans-Atlantic radio information of interest and the Navy was working closely with Coast Guard. They
didn't know just what else was desired but they would be glad to
assist in any way possible. We have not up to date had any
direct communication from either F.C.C. or F.B.I. Apparently
the idea is to have these organizations exercise some supervision
over shore stations and land communications, but there appears to
be some danger of over-lapping and confusion.
143
October 6, 1939.
MEMORANDUM
TO: Secretary Morgenthau
FROM: Mr. Gaston
B
x
Coast Guard headquarters at San Juan, Puerto Rico, has
reported that three fishermen working out of Arecibo, which
is on the north coast, reported that on the morning of
October 4th (Wednesday) they saw a submarine which submerged
after they had been watching it for four minutes. The
position reported was fifty miles west of Arecibo. Coast
Guard and Navy are looking into it. San Juan had no informa-
tion that a United States submarine was in that vicinity.
A
TREASURY DEPARTMENT
WASHINGTON
N
October 6, 1939.
MEMORANDUM FOR MRS. KLOTZ:
The following information came to me from the
Coast Guard. If you think the Secretary would be interested,
please pass it along to him.
"Information received by this office from the Commander,
San Juan District, indicated that an unknown submarine without
lights was seen by three fishermen one mile north of Arecibo
Light, Puerto Rico, at 4:30 A. M., October 4th."
Baine Maris
144
145
October 6, 1939.
MEMORANDUM
TO: Secretary Morgenthau
FROM: Mr. Gaston
Mrs
X
The Army recently took away at higher pay a very able
young man who was one of our three civilian cryptographers
in Coast Guard Intelligence. We have in addition two Coast
Guard officers at headquarters here who Waesche tells me are
very good and whom the Army can not take. We have another,
Lieutenant Jones, whom Waesche considers at least the equal of
Mrs. Friedman but who is now on duty as an Intelligencer Officer
at San Francisco. If an effort should be made to take any more
of our civilians we might have to seek an understanding with
Army and Navy.
PARAPHRASE OF TELEGRAM RECEIVED
146
FROM: American Embassy, Paris
NO.: 2357
DATE: October 6, 1939, 5 p.m.
FOR THE TREASURY
Last night we were told by Reynaud that gold in the
amount of 1,500,000,000 francs was gained by France during
September. This amount was gained principally out of
repatriated capital. He added that he had expended
france
800,000,000/of this amount on contracts in the United
States for the purchase of airplanes.
With the exception of rentes which made moderate
gains partly on continued strength of the franc in New
York, the market today was hesitant on profit taking
though the undertone was firm. Coal mining issues were
fairly strong. Hitler's Reichstag speech had little
effect market-wise though its purport was not fully known
till after the close.
A certain amount of repatriated French capital is
finding its way into investment channels notably short
term government issues and others of high liquidity.
The belga was weaker today, being quoted at 730 and
736 as against 734 and 740 yesterday. Other foreign
exchange rates were unchanged.
BULLITT
EA:EB
K.P. chew Oct 6.1934
147
PRIVATE & CONFIDENTIAL
Type
Number
Bomber
18
Bomber
4
Name
Vultee 2,700 mile range, 1,100 lbs. of bombs
Northrop
Pursuit
35
Hawks III
Pursuit
10
Hawks I
Pursuit
16
Hawk 75
Pursuit
15
Derwotine
Pursuit
10
Howkess
Trainer
35
North America
Trainer
75
Various kinds
148
October 6, 1939.
9:30 a.m.
GROUP MEETING
Present:
Mr. Hanes
Mr. Cotton
Mr. Thompson
Mr. Gaston
Mr. Riefler
Mr. Viner
Mr. Harris
Mr. Duffield
Mr. Bell
Mr. White
Mr. Cochran
Mr. Foley
Mrs Klotz
H.M.Jr:
Gene, I don't know whether it is proper or not,
but I have taken a great interest in this malaria
control thing in China. If the Public Health
people would have no objection, we might say some-
thing about my interest in this matter.
You like to write things. This is typical.
"If the average yield on Treasury bills in a month
has risen from five percent to fourteen percent
But he forgets that they have gone back to .035.
They run the thing up, but they forget to mention
that they have gone down again. I would just write
him a polite letter calling him a liar.
Johnny, I want you to hang on to this (handing document to Mr. Hanes). You insist on seeing me until
we clear it, will you?
Hanes:
All right.
H.M.Jr:
See what I mean?
Hanes:
Sure.
H.M.Jr:
And this Wellington Koo thing came in. Did that
Cochran:
Yes, sir, we made a copy because we had only one
come from the State Department?
copy.
H.M.Jr:
Bullitt is trying to help us get some money.
149
-2We have an addition to our 9:30 group, Mr. Cotton,
who is Ambassador extraordinary, plenipotentiary,
et cetera, on second floor left, and in that capacity
I thought he had better sit here and hear what is
going on. He would be more useful to the six gentlemen downstairs and to Mr. Hanes and me on this side.
He ought to have his weight taken this morning and
then see what he weighs a week from now.
Those flowers are from this very nice Mr. Shewmaker,
who is retiring after thirty years' service and he
grows those in his back yard.
Bell:
Aren't they beautiful?
H.M.Jr:
Aren't they marvelous?
Have you got anything, John?
Hanes:
No. I had a conference with Chen yesterday. It is
taking me a little longer than I thought. I will
see him again today and get through with it just as
soon as I can.
H.M.Jr:
Hanes:
H.M.Jr:
If I could have some of those maps to read over the
week-end, I would like to have them.
The data he left here is very interesting. It is
is getting ready for a big touch or not, I don't know.
If you will give it to Mrs. Klotz, I will take it
amazing what that corporation has done. Whether that
home tonight.
You saw the stories in the papers this morning, didn't
you?
Hanes:
No, I haven't seen the papers.
H.M.Jr:
About the American boat and the Germans?
Hanes:
Oh yes, I saw that last night.
Gaston:
Are you interested in over-night news on the Iroquois?
H.M.Jr:
Very much so.
150
-3Gaston:
Pollio called me at 11:00 last night to tell me
that the Maritime Commission had called him
earlier and said that the master of the Iroquois
reported he was changing his course to go to the
Azores and they asked the distance to the Azores
and the distance to St. Johns, New Brunswick. He
calculated the distance roughly as 725 miles south
to the Azores and
H.M.Jr:
Do you mind, for the sake of Mr. Viner and myself -
Gaston:
Yes. Did I say New Brunswick?
H.M.Jr:-
You said New Brunswick. We know.
Caston:
Right. They were about 725 miles north of the Azores
and about 1,000 miles east of Newfoundland. They
asked Pollio's advice and he told them that he would
give the master his discretion, but nevertheless they
called him back a short time later and told him that
they had given the master of the Iroquois flat orders
to continue on his course westward and to establish
radio contact with the destroyers who were going to
St. Johns is in Newfoundland?
meet him.
H.M.Jr:
Who gave him those orders?
Gaston:
Maritime Commission. I hope they contact the Navy.
H.M.Jr:
We didn't give them?
Gaston:
We did not give those orders. Pollio's advice was
to the contrary, he would let the captain use his
judgment. The Ingham and the Thomas came through
the canal Wednesday and the Navy asked permission
to use them in a search for a belligerent craft
200 miles west of the canal and they have been
ordered to go on that mission for the Navy and report
H.M.Jr:
when they get through with it. That is two of the
big cutters. The Hamilton is at Norfolk and it is
reporting to the Navy tomorrow and probably will
sail for the Atlantic patrol Monday.
In your 30 million dollar budget, did you ask for
Gaston:
Yes.
any more big cutters?
151
-4H.M.Jr:
How many?
Gaston:
Three.
H.M.Jr:
Why didn't you ask for six then you might get three.
Viner:
And make them bigger, please.
Gaston:
Bigger cushions you want, pad them on the side?
Viner:
Yes.
Gaston:
All right, we will ask for nine.
H.M.Jr:
How long does it take to complete a cutter?
Gaston:
Oh, it will take a year and a half.
H.M.Jr:
Can you do it in that time?
Yes. They would launch it in about a year and I
should think on a rush order they would get it down
Gaston:
in a little over a year, but it would normally be
two years.
H.M.Jr:
When would that mean completion?
Gaston:
What date in March will we get the appropriation?
We will get them in September or October or November
of 1941.
H.M.Jr:
Are you still interested, Viner?
Viner:
I am thinking of my successor.
H.M.Jr:
I just wanted to have it clear.
Gaston:
Of course, that depends on how much construction
the Navy has and the U.S. Lines.
Harris:
U. S. Lines ordered four new ships yesterday, I will
Hanes:
What are they going to do with them?
I don't know.
Harris:
have you know.
152
-5Viner:
Not carry freight.
Hanes:
Not carry anything.
Gaston:
There is going to be an appropriation for not
H.M.Jr:
Anything else?
Gaston:
No.
H.M.Jr:
Gene?
Duffield:
Nothing.
H.M.Jr:
You had better be here at 10:15, Gene.
carrying freight, too.
Ed?
Foley:
Gene asked me last night whether Mrs. Banister was
subject to the Hatch Act, and I have given him an
opinion.
H.M.Jr:
Mrs. Banister?
Foley:
Yes. She is Assistant Treasurer of the United States.
She is appointed by the President and confirmed by
the Senate.
H.M.Jr:
Doesn't that come under Johnny Hanes?
Duffield:
What I was really worried about was my coming under
Gaston:
It is a very non-political speech, it is educational,
Duffield:
Very much so.
Foley:
It is before a Women's Democratic organization out
the Hatch Act by writing a speech for her.
isn't it?
in Missouri. The only reason I am bringing it up,
Mr. Secretary, is because it might have some bearing
on the Governor Ross matter that you referred to
Harold Graves, where she went directly to the
Attorney General and Kemp over there said she was
subject to the Hatch Act.
153
-6H.M.Jr:
Let
Harold
know. Danny Bell claims the Treasury.
Let him
know.
Foley:
I will give him a copy.
H.M.Jr:
Why don't I just appoint a committee of Hanes, Gaston,
and Foley to pass on these questions of the Hatch Act,
see? When you are stumped, come and see papa. If
you are not, I won't bother about it. Hanes, Gaston,
and Foley, you fellows pass on them. All right?
Hanes:
Fine.
H.M.Jr:
Ed can handle public relations for you - I mean Gene
can.
Anything else?
Foley:
You have a letter from Jerome I. Ziegler, who is
counsel for Hecht bringing that action against
Universal Corporation. He wants to take your deposition in regard to your conversations with the Chinese
Ambassador here and your telephone call from Paris
to Wellington Koo and others. I would like to talk
H.M.Jr:
Foley:
H.M.Jr:
Foley:
to you about it sometime if you have a few minutes.
I have never done that since I have been in the
Treasury. Why should I do that? I have never done
that since I have been here.
Well, an effective deposition or interrogatory now,
if you' want to do it, might kill off that suit against
Universal. These fellows might drop the suit after
that. I think that from what you have told me before
that your answers to these questions certainly
wouldn't be helpful to their contention.
I have never permitted myself to be sued as an individual.
This isn't that, Mr. Secretary. This would be simply
taking your deposition and what we - you are not
subject to the jurisdiction of the New York court
down here and it would be entirely voluntary on your
part. What we could ask is that they frame the
interrogatories, put them in writing, and send them
to us and then I can look them over and decide
whether I think you ought to answer them.
154
7H.M.Jr:
Foley:
H.M.Jr:
All right, you go that far.
I have a little memorandum here on this smuggling
act which you mentioned on the telephone.
Did the President get out an Executive Order?
Foley:
We have had three orders under the Act providing
for Customs enforcement areas on the Atlantic
Coast from the Canadian border down to about as
far as Atlantic City. Those orders are still in
effect.
H.M.Jr:
What is the French thing?
Foley:
Well, that is an article by a law professor at
Cornell which has been reprinted in French and he
comments on the Act and also on your testimony
before the Committee when the Act was under consideration.
Foley:
Well, give me another copy of that.
You want another copy for your files?
H.M.Jr:
For the house.
Foley:
Yes, sir.
Don't you think it would be nice to send Mr. Hull
H.M.Jr:
H.M.Jr:
a copy?
Foley:
Yes.
H.M.Jr:
O. K.
Foley:
Yes.
Cochran:
Sterling is bid at 4.03 7/8ths this morning.
H.M.Jr:
How are things downstairs?
Cotton:
All right, I think.
H.M.Jr:
Was that mission over to Interior all right?
Viner:
They told us that Standard 011 had the information.
155
-8H.M.Jr:
They didn't?
White:
They had nothing. They had nothing and they
didn't know very much. We talked desultory
matters for about half an hour and then he
finally ended up with a suggestion that he
thought we could get the information we wanted
from the best source and the source he would go
to if he had a task of that kind were Socony
and Standard 011 of New Jersey and he suggested
the names of three men in both organizations who
would, he felt, be right on top of the situation.
H.M.Jr:
Well, did they take any offense at our doing
White:
Oh no, and it is arranged so that we can contact
Mr. Fry, who is under Mr. Holland, who appears
to know a little more about it than the others,
or at least they didn't recommend any others who
would know very much. They claimed that they
were concerned almost entirely with the domestic
H.M.Jr:
this?
oil situation and not the foreign.
Well, is that particular economist over there?
White:
Well, they didn't think we would gain very much
by getting in touch with him.
H.M.Jr:
Then we can disregard that crowd?
Viner:
I think so, except that we may ask them a technical
question or two on petroleum just to make them
feel that we are using them.
H.M.Jr:
Well, if you two gentlemen, Viner and White, will
be here at 11:00, please.
Win?
Riefler:
Nothing.
H.M.Jr:
Jake?
Viner:
I had a visit yesterday from Mr. Kintner and he
seems to be breeding a story based on information
from you and from other high officials of the
Treasury which would be a very painful one to
156
-9me if it came out that way. He says you told him
that you have made an assignment to us and the
same assignment to White - you expected us to
prepare separate studies and then afterwards to
White:
H.M.Jr:
fight it out between the two of us.
I am glad you think it would be painful to you.
We didn't hear you up at this end. What did White
say?
White:
Viner:
H.M.Jr:
I said I am glad he thinks it would be painful to
him.
What I tried to persuade Kintner is that I don't
wait that long to fight Harry.
Gene, tell Bob Kintner that I was talking very
much off the record and that he will please forget
that.
Viner:
You see, he went on to picture us as your new crew,
as being lined up, and he mentioned also some names
on the other side as if there were two battle lines,
and so forth. I think that would just ruin us here
and there is no basis for it. Certainly any of us
are not in that battling spirit and
White:
Viner:
H.M.Jr:
Why didn't you tell that to Kintner?
I did tell him and he didn't believe me.
He was in here and we were gossiping and he told
me that some other group was working on a peacetime basis, were we doing anything, and I said
yes. In an off moment, they said, "Who is working
on it," and I said, "We have two groups working on
it.
Viner:
And he took that to mean that - I don't know how
he lined Harry up where he did
White:
Where did he line me up?
Viner:
He said you were one of the New Dealers
Gaston:
What are you, the House of Morgan?
157
- 10 Viner:
I am the House of Morgan and Win is even worse.
H.M.Jr:
What is worse than the House of Morgan?
Viner:
And Taylor is Ogden Mills' - I mean Walter Stewart,
he said, was Ogden Mills' most relied upon advisor.
White:
He saw me about noon.
Viner:
He had a lot of this foolish stuff and believed in
H.M.Jr:
He got it from the fact that I said what I did.
Viner:
No, he said he talked to others too.
White:
He talked to me, but he didn't get that. I would
it and said he had gotten it from Treasury people.
have given him something better if I had given him
anything.
H.M.Jr:
Well, I am responsible for the story starting, any-
Duffield:
I will try.
H.M.Jr:
All right?
I meant to tell him - I told him I expected columnists
Viner:
White:
Gaston:
H.M.Jr:
Viner:
H.M.Jr:
way. Fortunately for me, I always have somebody
present. See what you can do.
to be liars so that even if I denied it, I still ex-
pected to find it in the column.
I don't think you will be disappointed. He was too
gleeful over his story.
They have good reason for printing what is denied.
Well, Gene and I slip once a day.
I was a little afraid that the story might be
blamed on me.
No, it is my slip. I was proud of the fact that
we were working on peace possibilities.
George?
Haas:
I am preparing a report on that
158
- 11 -
Haas:
Give us three minutes on it, George.
Want me to talk about it now?
H.M.Jr:
Yes.
Heas:
The Secretary asked me to attend the meeting of
the Atlantic States Shippers Advisory Board. One
H.M.Jr:
of the items on their program was to discuss the
railway equipment needs. I found that the group
up there were divided in somewhat of three different sections. The shippers are obviously apprehensive of railway equipment shortage and orders
are being inflated and the railroads have cautioned
them against that. Thirteen railroads reported
there and each railroad said that they were able
to handle the business. Some of them said that
from now on they would need a lot of cooperation
from the shippers. Each one asserted rather firmly
that there was nothing to fear. At the same time,
they listed their orders for new equipment. They
say they are not apprehensive, but at the same
time they are ordering large volumes of new equip-
ment.
The railway association has headquarters in Washing-
ton. Their reports are very similar to the indi-
vidual railroads but they took an over-all picture
and they claim that there was a good deal of hysteria
in regard to railway equipment shortage which would
result in shortage. There is one situation which
actually - there is actually some shortage existing
now in some areas and that is in connection with
coal cars. The coal that came from Great Britain
stopped immediately. It was going to Canada and the
United States. Now, it is coming from coal areas
in the United States and the cars that go to Canada,
for example, are gone a month. They made an
estimate for this area of the carloadings and their
estimate is some 14 percent above a year ago.
There was one report on the financial and economic
condition. You might be interested in the financial
report. This financial discussion concerned itself
with interest rates in the bond market, and so on.
*He told the people when they see the bond prices
moving rapidly down that they should keep their
mind on the fundamentals and that is all for easy
159
- 12 money, that under certain conditions bond prices
on bond prices and on the general business situation he cautioned them as to inventory accumulation, but he expected in the next six months that
business would go up, mainly for the reason that
once you get a turn in business it lasts at least
that long.
might move in any direction. He was rather bullish
H.M.Jr:
Who is "he"?
Haas:
He was an official of some New Jersey bank, I have
H.M.Jr:
George, on Monday at 12:00 o'clock have it ready
Haas:
You want one page plus a more detailed report?
H.M.Jr:
Yes.
Haas:
It turned out to be a much more interesting meeting
H.M.Jr:
forgotten where it was. He did a fairly good job
in sizing the thing up.
for me and Mr. Hanes and a one-page summary.
than I anticipated.
If there are any other lines on any other company,
I wish you would send George up there (to Mr. Hanes).
will you be back here at 10:15, George?
Haas:
Yes.
Harris:
The State Department asked one of their men to talk
with me day before yesterday about an approach which
had been made to them by the Swedes. The Swedes
had come to see them and said that the British had
informally demanded that they submit to them a
manifest of all their cargoes to neutral countries
and to Sweden before the ships sailed and wanted to
know how we felt about that, because it had been
quite informally approached by the British through
our own State Department, so I thought that was a
pretty wise subject and called the Commerce Department and the Maritime Commission and other parties
that I thought would be interested and we went
into a huddle with the State Department men. This
is a very broad question and one which arose in the
last war. It was compromised then by something
160
- 13 that was known as the Skinner Plan, whereby
instead of submitting your manifest to the
have to submit your manifest not only to the
British but the French and the Germans as well -
British - and in this case I think you would
you got permission from the Embassy before you
could ship any cargo. You perhaps know what
that is about. We just discussed this thing
pro and con all over the lot and then we thought
that this thing was so dovetailed with the question of cooperating with the domestic railways
here to prevent a congestion at seaboard. In
other words, if a great deal of cargo is going
to be refused and put on a more or less blacklist, then it ought not to be allowed to move
from the interior plants because otherwise you
are going to get the same congestion at the seaboard, so we are now trying to locate the group
that are working on that and we are going to
have another meeting on Monday or Tuesday and
we will continue that work.
H.M.Jr:
Will you talk to George and see that anything that
he learned up there about piling up at the seaboard -
if there is anything in that?
Haas:
There was something.
Hanes:
Kelly told us last week that he was working on a
plan to stop that.
That subject, I think, has been very closely gone
Harris:
Gaston:
into by that Army and Navy Munitions Board.
It would all be out the window, wouldn't it, so
far as the manifests are concerned if the cash-
and-carry act were passed?
H.M.Jr:
Don't count on the Army and Navy Munitions Board.
H.M.Jr:
There are two Boards. The one that is going to
continue to function is the Joint Munitions Board.
That is the one I referred to.
Is that the one you referred to?
Harris:
That is the one I meant. Maybe I have called it by
Harris:
the wrong name.
161
- 14 H.M.Jr:
There are no civilians on this at all.
Harris:
That is correct.
H.M.Jr:
Harris:
There are no civilians on the Board I am talking
about.
That is right. It is headed up by the Assistant
Secretary of War.
H.M.Jr:
No.
Hanes:
This is State, Treasury
Excuse me. This is the one they don't know about.
This is the one - the personnel of the Joint
H.M.Jr:
Munitions Board is the only Army and Navy Board
that is not under the Joint Board and this is not
responsible to the Assistant Secretary of War or
the Assistant Secretary of Navy, but is responsible
to the President. I wanted to get this thing
straight, see. Do I make myself clear?
Harris:
H.M.Jr:
Yes.
There. are two Boards and this is the only Board
which is not under the Joint Board and this is the
Board which I believe will do the functioning,
and there are no civilians on this Board.
Harris:
Well, this matter is something that is going to
H.M.Jr:
I am going to let you
Would you like me to continue the way I am going
Harris:
H.M.Jr:
become very serious, especially if the present
legislation goes through and American ships are
tied up. Then this thing has got to function
immediately. Otherwise, you are going to get the
most terrible congestion at seaboard.
on this?
I am going to let you read this memorandum and you
can see what this Board is and maybe after reading
it you ought to contact this Board. I think you
will find this is the Board, until we get in a war,
that is going to do business, see.
162
- 15 Harris:
Yes.
H.M.Jr:
And if you haven't made a contact - after Johnny
is through I will let you read this memorandum.
I think this is the one that is going to do the
operating.
I think the other one is definitely
out of the window.
Harris:
Now, you sent me a memorandum.
H.M.Jr:
Will you show that to Harris?
Hanes:
Was that Joint Munitions Board set up by act of
Congress?
H.M.Jr:
Yes.
Hanes:
In what year?
Bell:
I think it came out of the National Defense Act.
Hanes:
1925?
Bell:
Something like that.
H.M.Jr:
But, in the room, I believe it is fairly obvious
Harris:
that the President is going to use this group. You
might just as well get in touch with them.
Now, you sent me a memorandum or letter from Mr. Hull
about those two ships. He is correct in his letter,
there is no question about that. I have drawn you
a memorandum there. But the moment it became known
that the State Department was interested in the
thing, then it quickly rectified itself of its own
weight, so that what he says there is correct, but
the fact that he made some inquiries, it automatically
corrected the position, which was what I wanted to
happen.
H.M.Jr:
Then it is O. K.?
Harris:
It is all through, yes.
H.M.Jr:
After you have read that, will you give it back?
Basil, I would do it through General Watson.
163
- 16 Harris:
Yes, sir.
H.M.Jr:
O. K.?
Harris:
O. K.
H.M.Jr:
Harry?
White:
There are two matters. They relate to the question of export controls over scrap iron and other
materials, which was on the sub-committee report
to the Executive Committee on Commercial Policy
in that they would develop some information, which
you may or may not know. There is a rise in the
price of iron and steel and the increased output
which is expected to reach, I think, 83 percent
this week and probably 90 within two weeks. It
is not due to foreign orders. They have no additional foreign orders, according to this report.
It is due to the domestic situation. The recommendation here is that nothing be done to attempt
to get any legislation that might provide for
restriction on exports yet, and no legal power
exists with which it can be done now, so they
are just going to watch the situation on the exports of iron and steel scrap.
On the question of wool, the recommendation is
that this Government confer with the British
Government and attempt to arrive at some arrangement whereby there will be an allocation of wool
for this market. Now, if anybody is interested
here
H.M.Jr:
Bob Stevens came in here to see me. He is in
the textile business in a big way. He said that
the Navy wanted 75,000 blankets and could only
get 25,000 and that was a 50 percent advance over
a month ago. The idea was that the English have
wool in Australia and South Africa, more than they
can handle, and they need more cotton. We can
make a swap.
I made the suggestion that if we got possession of
this wool, we would handle it the way we did with
the WPA. We could keep title to the wool, let the
164
- 17 manufacturer have it and do what he wants, pay
him for the manufacturing, and then assign it
to the Army and Navy. I sent him to Wallace and
Wallace turned him over to Commodity Credit. I
don't know what happened, but unless somebody
gets behind it, I don't think anything will happen.
Hanes:
What happened over there was that Commodity Credit
was very much interested in it and told him that
he would prefer, if he could work it out with the
private producers amongst the people in the textile
trade, to bring back to him a program, one which
they could pass, and that they would be delighted.
I thought it was an excellent idea and he left with
me a memorandum. I think I will give that to
Harry White. It is a very interesting proposal
and incidentally, this Bob Stevens is seeking to
do something to help the country. He wants to
step out of the picture. He just framed the idea
and got it all ready and said if somebody in the
Government would take it on, he would be glad to
turn it over to them and help them in any way
possible, but he is not in that business.
White:
The issue is rather important. It is expected that
England will get in, as you know, control of some
important commodities, not complete control but
sufficient control so that they can influence the
world price very substantially and be in an important
bargaining position, and the issue is whether they
shall do business directly with American businesses
here or with groups of such business men or whether
they shall do business with the Government, whether
it shall be Government-to-Government or British
Government to business men. The feeling is that if
it is with business men the American business men
here will be at a bargaining handicap, whereas with
Government-to-Government there are so many other
things that enter into the picture that possibly a
more equitable arrangement can be achieved through
Government-to-Government cooperation. That issue
has not yet been decided or discussed much, but
it is coming up today and I want to know whether
you have any definite views on it.
H.M.Jr:
No, but I have turned it over to Wallace. Doesn't
Wallace have a representative?
165
- 18 White:
He does. Leslie Wheeler. He is very competent.
H.M.Jr:
Could you get this memorandum to White?
Hanes:
Yes, right away.
White:
Are
you interested in following the development
of this?
H.M.Jr:
Well, I think if the statements that he made are
true - and I am sure that they are - that the
English have got more wool than they need and we
can get some of it, I think it is too much to ask
of any business group to sit down and try to swap
wool for cotton. I think the Government has got
to do it for them. A bunch of business men only
having one piece of the picture, they can't
negotiate a thing like that.
White:
It is more than swapping. There are probably more
commodities involved, so it is not so much a simple
barter as much as adjudicating prices.
H.M.Jr:
If the English are going to pursue the policy of
buying large quantities of cotton and strategic
war materials, then we have got to sit down and
say, "You have got to give us a piece of it."
Not only strategic war materials, but any important
White:
Harris:
commodities.
The wool association came to me on this matter the
other day. They had been to the State Department,
the British Ambassador - gosh, they had been kicked
all over the place.
Hanes:
They are in a desperate condition.
Harris:
Mr. Secretary, I suppose you know England has
H.M.Jr:
And South Africa.
Harris:
Most of the wool that is brought into this country
is Australian. That is the one we are primarily
interested in.
H.M.Jr:
This fellow had it all in a nice package and I
assessed the entire Australian wool crop.
sent the whole thing over to Wallace.
166
- 19 -
All right, Harry?
White:
H.M.Jr:
All right.
I would like to be kept posted on it. If they
don't
get along
veryit.fast, I am going to tell
the President
about
Harold, at Cabinet the Assistant Secretary of
Navy said that our purchase of 20,000 units of
hemp - I don't know what the unit is - in
Manila, completely cornered the market and he
had had complaints about it.
Graves:
The War and Navy people yesterday asked Collins
to call off that prospective purchase of hemp
and he is cancelling it.
H.M.Jr:
They don't want it?
Graves:
No.
H.M.Jr:
Why?
Graves:
Apparently it is in line with the suggestion that
H.M.Jr:
Anything else?
Graves:
Nothing.
H.M.Jr:
Tell Collins to give me a little memorandum on that.
Graves:
I have asked him to do that. It will be in this
you referred to about cornering the market. But
at any rate, he has had a formal request from the
two departments to cancel his order for him.
morning.
Bell:
I understand the President has just about turned
down the Budget summation for this year. I don't
know whether we should interest ourselves in that.
I think it ought to come out.
H.M.Jr:
That is up to Harold Smith.
Bell:
Well, Treasury is in it too.
H.M.Jr:
Give me one page on it for Monday.
- 20 -
167
Bell:
All right.
H.M.Jr:
Have you got any feelings on it, John?
No. I was against Danny Bell when he came around
and talked to me about it. He says he wants to
Hanes:
continue it and I think, too, that if the period
has gone six months without the public being
apprised of it, I am sympathetic with Danny's
feeling about it.
Bell:
Newspaper men are beginning to speculate on the
budget and I think we ought to have something
to refer to.
H.M.Jr:
Give me a page, will you? You are going to stay
in here.
My advisory economists, I may ask Monday or Tuesday
what your opinion is on Government financing, looking
forward over some time, I mean what kind of pieces
of paper we ought to use. I think we talked about
that, Win, some time ago. You have got some ideas,
haven't you? Maybe Monday or Tuesday I will ask
you. I am putting you on notice.
Riefler:
I won't be here Monday. I have got a board meeting
in New York. I will be here Tuesday morning.
H.M.Jr:
Is that all right?
Riefler:
Yes.
H.M.Jr:
I don't need a written memorandum but maybe Tuesday
we might talk a little bit about it, looking forward
to what kind of thing we ought to do if the situa-
tion abroad gets worse.
All right.
108
See
1tr to President dated 10/10/39 transmitting
this information.
See also President's memo of 10/14
October 6, 1939
TO THE SECRETARY:
In the President's Budget Message of January, 1935. the
President stated in part as follows, under the heading "Better
Methods of Fiscal Control":
"In order to promote more satisfactory
methods of budgetary control in the Govern-
ment, I propose this year to inaugurate the
policy of having a Summation of the Budget
prepared for publication immediately after
the Congress has acted on all financial
matters.
He then went on to say that this summation would exhibit
the revenue estimates as revised by the Treasury so as to reflect
any changes in the economic situation during the preceding months
and also any revisions in the tax laws made by the Congress, and
a revision of the estimates of expenditures based upon the appropriations made by the closing Congress.
This summation has been issued each year beginning with
September, 1935. and each year the newspapers look forward to the
publication of this revised Budget. In view of the changes made
by the last Congress in the appropriations and the recent Executive
Orders of the President increasing the military branches of the
Government, it is of more interest than ever to the public to have
this summation issued. The newspapers are now beginning to make
their own estimates and I think it would be most unfortunate to
break the precedent of issuing the summation as it would be such
better for all concerned if the newspapers could get their information on budgetary estimates from some official document rather than
publish their own guesses.
I hope you will have an opportunity to urge the President
to issue the summation at as early a date as practicable, although
it should be timed so as not to come during or immediately preceding
a Treasury financing operation.
DVB:NLE
169
October 6, 1939
10:15 a.m.
Operator: Go ahead.
Hello.
HMJr:
Randolph
Burgess:
Hello, Henry - this is Randolph.
HMJr:
Oh.
B:
And there are three of us on this wire.
HMJr:
Wonderful.
B:
George Harrison is on one phone and Earle Bailie is
on another and I'm on the third.
Allan
Sproul:
B:
And Allan's here listening.
Allan is sitting on the sidelines and Bob Rouse 18
giving the market a last check and he'll be in again
off and on.
HMJr:
Well, I've got some of my people and we've got the
loudspeaker on.
B:
Well, this is quite a party then.
HMJr:
Oh, yeah.
B:
(Chuckles) Well, it's too early to tell very much
about the market.
HMJr:
B:
Uh-huh.
We' ve talked with four of the dealers. It all depends
on their size-up of this speech but they don't think
very much will happen. today.
HMJr:
Yeah.
B:
They think in general that the speech is -- is not
much of a peace speech.
HMJr:
Yes.
B:
But it remains to be seen how the market interprets
it.
-2HMJr:
170
Yeah.
Now we've talked it over here and our -- our feeling
is that so far there's -- nothing has happened which
would necessarily prevent going ahead next week.
HMJr:
B:
Yeah.
So our primary feeling is, the thing to do is to
watch this market during the day and to keep our
minds open until Monday morning.
HMJr:
B:
HMJr:
Well, that's easy.
That doesn't strain any of us.
No, no -- but
George
Harrison: My feeling, Henry, is that you ought to do it if you
can and you won't know definitely until Monday morning whether you should.
HMJr:
Yeah.
I think that almost -- under almost any circumstances
you will be able to do it certainly at a rate.
HMJr:
Yeah.
But you don't want to do it at an unreasonable rate,
I understand.
HMJr:
Yeah.
From your standpoint. However, unless something very
develops, I should think by Monday you would
be free to go ahead and better fix your rate than you
could fix it this morning.
HMJr:
Randolph
Burgess:
Well, has anybody there given you a rate on a fiveyear note?
Well they haven't talked five years very much because
I think, frankly, their feeling 18 that the fiveyear market is a little thin and our feeling is that
we ought to play absolutely safe and do something a
little shorter than that. And the two -- the two
-3-
171
things that we think most about would be a June 42 which
just short of three years, which would be
one periscent
HMJr:
Yeah.
B:
Or a March 143 - which is three and half years, that
would be one and a quarter. They'd both be worth
about par and seven-eighths without giving any
extra interest. We think it's better not to give
the extra interest on the whole because it -- it's
simpler not to and looks stronger.
HMJr:
George
Well, our boys here have figured a four-year note with
a one and three-eighths coupon, which would sell at
a one and a quarter premium, and they figure the
five-year note exactly the same.
Harrison:
Say that again, will you, Henry. I didn't
HMJr:
A one and three-eighths per cent
H:
Yeah.
Randolph
Burgess: Yeah.
HMJr:
four-year note or five-year note would sell in
both cases at one and a quarter points premium.
B:
Yeah; well, that's right. That's right. A four-year
one and three-eighths 18 not impossible. We figured
it would be playing a little safer to do a -- a three
and a half.
HMJr:
But they say both the -- both the four-year note and
the five-year note with a one and three-eighths coupon
that they both would sell at one and a quarter points
premium.
B:
Well, they would theoretically, Henry. Actually, the
five-year note would be a good deal chancier. It
would be taking a good deal more of a chance.
HMJr:
Well......
B:
Because that market 18 better.
-4HMJr:
Earle
Bailie:
172
Ah
The impression I get, Henry, 18 that the market
would be very enthusiastic about a three or a three
and a half -- would like it, and we'd have good
feelings on our issue. If we went to a five there'd
be a question in my own mind -- not that we wouldn't
get subscriptions, but that we wouldn't get that push
that we hope to get out of the issue for the whole
market.
HMJr:
Yeah. Well
B:
Now that may not be true Monday.
HMJr:
Yes. Well, my own -- will you fellows just hold on
a minute?
B:
Yeah.
HMJr:
Deal around a -- deal out one deal of cards while
B:
You bet.
I'm talking, will you? Just hold on a minute.
(Brief pause.)
HMJr:
Hello.
B:
Yes, Henry.
HMJr:
At this end we feel that there should be no hints
to the market of any kind that there may be some-
thing coming Monday or Tuesday.
B:
Oh, that's right - yes.
HMJr:
Because
B:
HMJr:
B:
We have avoided that very carefully.
While our minds are open they are sufficiently undecided that we don't feel there should be any hints.
Yeah.
-5-
173
that there's anything coming.
HMJr:
We agree completely on that, Henry.
B:
Well,
then on that basis let's see what happens today
and tomorrow.
HMJr:
That's right.
B:
B:
And when will we talk about it again?
Well how about one o'clock or
HMJr:
No.
HMJr:
two o'clock?
B:
HMJr:
No, Dan thought tomorrow.
B:
Oh, tomorrow?
HMJr:
Oh -- you mean today?
B:
Ah -- well, I was going up to Providence this afternoon, Henry.
What time does your train go?
Three o'clock.
HMJr:
B:
HMJr:
No, that doesn't fit in my schedule so
B:
Well why don't you let Allan talk to you, or George
here?
HMJr:
That's all right.
B:
We will have been talking with them, you see.
HMJr:
That's all right.
HMJr:
B:
HMJr:
.
B:
When would be the best time?
Well, I'd say four o'clock.
Four o'clock? That's fine.
Four o'clock.
174
-6-
B:
And I will have talked to them just before I go.
HMJr:
Right.
B:
Yeah.
HMJr:
And then they could
B:
HMJr:
They'11 be in contact with Allan, you see, and
they can talk.
Yeah, but do they -- they'11 know better at four
o'clock where we're at.
B:
That's right, yes.
HMJr:
What?
B:
Yeah.
Earle
Bailie:
You'v seen the -- you've seen the market openings,
Henry; that steel stocks are up as much as five
so that what you ve got here
points
is an atmosphere in which probably Government bonds
won't have a terribly good day. I mean, if the
HMJr:
They will -- they will or will not?
B:
They will probably not have a terribly good day.
HMJr:
B:
Well, if they
We all think that 18 going to hit down into the
note market -- I mean
HMJr:
B:
HMJr:
Well......
......in the place we're talking.
I'm not going to be bold enough to make any
forecasts. I say, I'm not going to be bold enough
but
B:
Right.
175
-7-- but on the past two or three weeks the
HMJr:
Government bond market would sell off today.
B:
That's right. I think you're going to be right.
HMJr:
And then we never know what George Harrison's
B:
HMJr:
B:
little pal over -- down on Constitution Avenue
will do.
(Laughs) He's not listening so he can't hoot at
that.
I see.
(Laughs) We'11 tell him about it. (Hearty laughter)
Allan's on the other telephone now.
HMJr:
Oh, George -- I -- 18 George there?
B:
Yes, George is right here.
HMJr:
Was that all wasted?
B:
That was all wasted.
I got it. I'11 relay it to him.
But we'll all tell him.
(Hearty laughter)
HMJr:
B:
HMJr:
B:
HMJr:
All right. All right. I don't know what they use
out in Utah, but
we don't seem to have been able to have discovered
one that holds here in Washington.
out -- in the way of
(Laughs. )
All right?
Very good, Henry.
And if I see that in Kintner and Alsop's column I'll
know who to blame.
B:
(Hearty laughter) Kintner and Alsop
-8 176
HMJr:
All right.
B:
(More laughter)
HMJr:
Goodbye boys.
B:
Goodbye.
177
October 6, 1939
4:07 p.m.
HMJr:
Hello.
Operator:
Mr. Harrison. Go ahead.
HMJr:
Hello.
George
Harrison:
Hello, Henry?
HMJr:
Yeah, what have you fellows got to give me now?
H:
Well, we had a pretty good day here, as a matter of
fact, and I think it looks much more encouraging for
next week.
HMJr:
H:
Uh-huh.
They dropped off ten to twelve thirty-seconds then
recovered about half the loss and ended up from
unchanged to five thirty-seconds lower than last
night.
HMJr:
Yeah.
H:
And considering everything I think that's pretty
satisfactory.
HMJr:
Yeah.
H:
But I think the thing we better do is to look at
it as -- as late as you can Monday and decide
what -- whether you think the rate situation war-
HMJr:
rants your going ahead, as I think it will.
Well, after talking with Bell later on during -after I got through this morning, he said the
understanding was that we really shouldn't try
to decide anything until noon Monday.
H:
Until noon Monday?
HMJr:
Yeah.
H:
That's right. That's what we all feel.
HMJr:
Well, then why not let's
-2-
H:
178
Sure, what I think we ought to do is just forget
about it until noon Monday and then have a hookup
if you want to.
H:
Right. Let's say about a quarter of twelve Monday.
Well, we'11 call you a quarter of twelve Monday
and we'11 have all the dope then and make any
suggestions that we -- we've got at the time.
HMJr:
O. K.
H:
First-rate.
HMJr:
Thank you.
H:
Goodbye.
HMJr:
Goodbye.
HMJr:
TREASURY DEPARTMENT
179
INTER OFFICE COMMUNICATION
DATE October 6, 1939.
TO
Secretary Morgenthan
FROM Mr. Cochran
Reference is made to the file of cablegrams in regard to the opening
of an account for the Bank of Brazil as fiscal agent of the Brazilian
Government, and also to Mr. Bernstein's memorandum in regard to his con-
versation of last night with the Federal Reserve Bank lawyers. After
Mr. Bernstein's conversation of yesterday evening, Mr. Knoke spoke with me.
It was agreed between us that the Federal Reserve Bank should, as of that
date, receive the $3,000,000 from the New York banks and purchase gold there-
with from the Stabilization Fund to hold under earmark, as fiscal agent of
the United States Treasury, for the Bank of Brazil, as fiscal agent of the
Brazilian Government. In our conversations earlier in the day, I had favored
the idea of this being a straight Central Bank account, but I had yielded to
Mr. Knoke. when Mr. Knoke explained that the Federal had no Central Bank ac-
count from the Bank of Brazil itself and that a delay of several days would
be entailed in seeking approval from the directors of his own bank and from
the Board in Washington for the opening of such an account. Mr. Knoke assured me, however, in our final conversation yesterday evening, that his bank,
after opening the account yesterday in the manner above designated, would
take the initiative in seeking approval for the opening of a straight bank to
bank account, to which the above described gold could be transferred.
During the day I had talked with Messrs. Foley, Bernstein and Bailie
about the problem, and had mentioned to the Secretary about 4 P.M. that we had
up a question as to the Brazilian account. The Secretary had told me to go
ahead and settle it. I informed Mr. Bailie of this, just before Mr. Bailie
left for New York.
I thought the matter was thus settled until this noon, when I went to
see Messrs. Foley and Bernstein in regard to the questions raised by LeroyBeaulieu in regard to a French account with the Federal in New York, the French
Attache being at that time with Secretary Morgenthau. While discussing this
question, Mr. Foley let me know that Mr. Bailie had telephoned him from the
Federal Reserve Bank in New York and had suggested that a message be sent
Brazil asking clarification of the status of the Bank of Brazil, as fiscal agent
of the Brazilian Government, and also relieving the Federal Reserve Bank of New
York from taking the initiative with the Bank of Brazil in the establishment of
a straight bank to bank account. Late this afternoon Messrs. Foley and Bernstein
called me to their office and showed me the draft of the cablegram which they
proposed be sent to our Ambassador at Rio de Janeiro in the premises. In view
of the change which had developed, I did not feel free to clear such a message,
and it was agreed that we should see the Secretary. He received us for a moment
at 5 5.P.M. but asked that the matter be postponed and that we all get together,
CONFIDENTIAL
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180
together with Mr. White, and come to an agreement before discussing the
matter with him further. There are two or three questions in my mind.
(1) Is any further clarification of the status of the Bank of Brasil as
fiscal agent of the Brazilian Government actually necessary? In their con-
versations with New York, Messre. Foley and Bernstein seemed satisfied with
the wording as actually received in the cablegram from our Ambassador at
Rio de Janeiro. If the Federal Reserve Bank of New York is not willing to
take the initiative with the Bank of Brazil in the opening of a bank to bank
account, should the Treasury Department take such initiative? If this is
done by the Treasury Department, the message should be more detailed than
that comprising the second paragraph of the draft cablegram prepared today.
I called Mr.Knoke at 5:30 P.M. this evening and mentioned the Brazilian
matter, since I had promised to clear with him before any message to Brazil
went out. He had not seen the draft discussed by the lawyers and preferred
to postpone discussion of the question.
16mg
CONFIDENTIAL
181
MEMORANDUM
pee also his
10-7 and
10-9 mem
To: Secretary Morgenthan
From: Mr. Cochran
October 6, 1939.
Mr. Knoke telephoned me at 5 P.M. on October 2. He said that
Leroy-Beaulieu had just come in and wanted to know the procedure in
regard to opening an account with the Federal Reserve Bank of New York
as fiscal agent of the Treasury. Governor Harrison had received him in
Knoke's presence. Leroy-Beaulieu wanted to know particularly about the
publicity to which the account might be subject. He had been told that
the Federal Reserve Bank itself would not give out anything. Knoke
thought that what Leroy-Beaulieu had particularly in mind was the question
as to possible attachment of the account. It had been suggested to LeroyBeaulieu that the Treasury lawyers could help clear this matter.
Mr. Leroy-Beaulieu was received today alone by Secretary Morgenthau
at 11:45. The appointment had originally been for 10:30, but LeroyBeaulieu was delayed by a foggy airplane trip. Before he saw the Secretary
he told me of the questions with respect to publicity which had not been
settled in his recent conversations with Governor Harrison and other
officials of the Federal Reserve Bank at New York. He told me what these
questions were and I discussed them with Messrs. Foley and Bernstein
while Leroy-Beaulieu was in with the Secretary. When he came out, I
told him what the legal advisors had given me on the subject and LeroyBeaulieu said their answers corresponded with those of the Secretary,
namely:
1. That the Treasury is not under any obligation automatically to give publicity to any account that might be
opened by the Government of France with the Federal Reserve
Bank of New York as fiscal agent of the United States.
2. That Congress would be more disposed to refrain
from investigating the accounts of a foreign government if
they were held in such a manner that they could be inspected
by the Federal officials than if they were in private or
commercial banks and
3. That if Congress should make an inquiry in the
premises, the Treasury would have a claim to immunity, for
the fiscal agency account, on the grounds of public interest,
arising from international relations, which private banks
could not advance. At the same time, there was the possibility of political pressure becoming strong enough to
force revelations.
ONFIDENTIAL
BMS
182
MEMORANDUM
To: Secretary Morgenthau
October 6, 1939.
From: Mr. Cochran
Mr. Knoke and I have talked together several times in the past
two weeks upon the question which Mr. Pinsent, Financial Counselor
of the British Embassy, in connection with receiving the rate of
4.02 for official and personal checks of British diplomatic and
consular officials and employees in the United States. Last week I
provided Knoke with a copy of a memorandum, with enclosures, drawn
up by Mr. Havens in the Department of State, explaining the system
used in the American Foreign Service for compensating losses by exchange. Mr. Knoke desired this to assist him in answering the inquiry
from the Bank of England of September 28, which is attached hereto.
This morning Knoke stated that he had talked by telephone with
Mr. Bolton, of the Bank of England, and it had been agreed that Mr.
Knoke would reply to the above mentioned cablegram by letter. The
point was made that there was no urgency in this matter, since the
open market rate for sterling has already passed the official rate of
4.02.
Yesterday evening Mr. Pinsent telephoned me at six o'clock to
inform me that Sir James Rae and Colonel Greenly, the two principal
members of the British Purchasing Commission, are due to arrive in
Washington next week from Canada, and that they would like to pay
their respects to Secretary Morgenthau. The most convenient time would
be on Tuesday afternoon or Wednesday morning. They were to meet Undersecretary Hanes at the British Embassy on Wednesday afternoon.
This morning I mentioned this matter to Secretary Morgenthau and
he fixed the appointment for three P.M. next Tuesday. At three o'clock
this afternoon I was able to reach Mr. Pinsent and informed him of the
hour arranged for the meeting. At this time I told Mr. Pinsent of my
latest conversation with Mr. Knoke, and he was evidently quite satisfied that Mr. Knoke was reporting by mail to Mr. Bolton in regard to
possibilities of assisting in the premises.
CONFIDENTIAL
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
all
183
DATE October 6, 1939.
TO
Secretary Morgenthan
FROM
Mr. Cochran
The foreign exchange market was quiet with trading in sterling in small
amounts. Sterling opened at 4.03-7/8, and shortly thereafter rose to 4.04,
the high for the day. During the late part of the morning the rate moved in
an erratic manner, reaching a low of 4.02, and in the early afternoon recovered to 4.02-3/4. The closing quotation was 4.02-1/2.
The lower rate for sterling probably results from the fact that the
British Control sold exchange at 4.04 yesterday, which would lead to the
belief that it did not intend that the open market rate should be above the
official rate.
The discount on the Canadian dollar widened during the past week. On
September 29th, the Canadian dollar was quoted in the open market at 9-7/8%
discount and closed today at 11-3/4% discount. The softness in the rate
is due to some extent to the fact that Canadian dividend checks in small
amounts are being offered in the open market rather than to the Canadian
Exchange Control. While these amounts are individually small, in the
aggregate they are large enough to keep the rate for the Canadian dollar
under some pressure. Another reason for the softness of the rate is that
Americans have a considerable amount of Canadian dollar balances which they
fear may not be purchased by the Canadian Control at the official rate of
10% discount and that if such is the case these balances will eventually
be sold in the open market.
Reporting banks in New York and the Federal Reserve Bank reported sales
totaling 1495,000, from the following sources:
Commercial concerns
Foreign banks (Far East, Europe and South America)
Fed. Res. Bk. (150,000 for Sweden)
Total
L 138,000
L 307,000
L 50,000
I 495,000
Purchases of sterling amounted to 1390,000, as indicated below:
By commercial concerns
By foreign banks (Far East and Europe)
Total
L 172,000
L 218,000
L 390,000
CONFIDENTIAL
184
-2-
The following banks sold to us gold from their earmarked accounts in the
amounts indicated:
$ 2,570,000
National Bank of Belgium
Bank of the Republic, Colombia
$ 700,000
Total
3,270,000
Gold shipments valued at $86,000 from England and $28,000 from Canada,
bothconsigned to the National City Bank of New York, were reported.
We made one purchase of silver today, amounting to 50,000 ounces, in the
New York Market under the Silver Purchase Act.
By telephone today, Bolton of the Bank of England, inquired of Knoke of
the Federal Reserve Bank of New York, as to the present yield on Treasury bills.
Bolton seemed interested in investing some of their dollars in such bills, if
the yield made this worth while. When informed of the current yield, Bolton
showed no inclination to make any purchases.
In this connection I asked Knoke if the Governor of the Central Bank of
Sweden had not withdrawn some of his dollar balances from the Federal Reserve
Bank recently to invest through commercial banks in New York. Knoke thought
this must be the case. He remarked that some of the commercial banks had
obtained Treasury bills on tenders at rates which made it possible for them to
offer some attraction to foreign central banks. He remarked that, unfortunately,
the Federal Reserve Bank was not itself permitted to make its own tenders and
could not thus compete for this business. He said that inquiries for such
investments had recently been received by the Federal Reserve Bank from the
BIS, and also from the central banks of Switzerland and Norway.
In my conversation with Knoke I referred to the case we talked about a
couple of days ago of the Chase Bank granting an advance in dollars to the
Russian State Bank against gold in transit from Norway to New York. I told
Knoke that we assumed that this gold would be sold upon arrival in the United
States, since we did not desire to see the precedent established of gold being
placed under earmark with his bank against which another party, such as the
Chase Bank, might have a lien. Knoke was certain that the needs of the Russians
were so urgent for dollars that the shipment would be sold upon arrival, and
he added that the Chase Bank was too familiar with United States gold regulations
to risk any contravention thereof, through such an operation as I mentioned.
HMP
CONFIDENTIAL
185
Secretary Morgenthau
October 6, 1939
E.H. Foley, Jr.
I am attaching Mr. Ziegler's letter with reference to taking
your deposition in the case of Rudolf Hecht V. Universal Trading
Corporation, together with a copy of my reply.
This is in conformity with our conversation this morning.
(Initialed) E. H. F., Jr.
Attachments
EHF:s Typed 10/6/39
JEROME I. ZIEGLER
Attorney at Law
12 East 41st Street
C
New York
0
Lexington 2-5270
September 29, 1939
Honorable Henry W. Morgenthau, Jr.
Secretary of the Treasury
Washington, D.C.
Re: Hecht V. Universal Trading Corporation,
K.P. Chen, Hsi Te-Mou, and S. D. Ren.
Dear Mr. Morgenthaus
As you have probably been informed, the above entitled
litigation has been instituted some time ago against the
agency of the Chinese government and the three members of the
Chinese Financial Mission who arrived in this country during
September, 1938.
The basis of this suit is a breach of a written contract
between my client, Rudolf Hecht, of New York City and the
Chinese government through its Ambassador, Dr. C.T. Wang and
his attorney, W. Carl Richards of Cumberland, Maryland.
The contention of the defendants is substantially that
no preliminary work had been done on the Chinese loan, announced December 15th, 1938, prior to the day the three members
of the mission arrived in Washington. The work and efforts of
Dr. Wang and his associates are ignored. In preparing this
matter for trial, which should come up in the near future, it
becomes of major importance to obtain your testimony as to a
certain conversation held prior to September 19, 1938. Con-
cerning those conversations, I have certain definite information
which requires amplification and clarification.
The defendants have testified at a preliminary hearing,
that they arrived in this country as a result of a telephone
call which you made to Dr. H.H. Kung, Chinese Minister of
Finance. They have testified that this telephone call was made
by you while you were in Paris early in the month of August,
1938. Concerning this particular call, I am seeking to obtain
the following information from your who had opened the preliminary negotiations for the loan which subsequently lead up
to this telephone call; who had continued the discussion of
the loan between the opening of negotiations and the call;
how far the negotiations for the loan had progressed at the
186
187
time the call was made.
I know of at least one other United States official who is
personally familiar with the details of your conversation with
Dr. Kung. I would appreciate learning from you whether Dr.
Wellington Koo, who at that time was in Paris, is also fami-
liar with the details of the call.
My information, obtained directly from Dr. Wang, includes
an outline of the conversation which you personally had with
Dr. Wang in New York on September 3, 1938, You may remember,
that upon your arrival in New York on that day, you attempted
to communicate with Dr. Wang only to learn that he had just
left left New York for Washington. The Chinese Consul General's
Office finally located Dr. Wang and he returned late at night
to meet you. At that time Dr. Wang was informed by you as to
the status of the loan. In view of the issues of the above
entitled action, you can readily see that the entire conversa-
tion of September 3, 1938, together with the background and events
leading up to it are extremely pertinent.
Under no circumstances would I want to do anything to
interfere with the heavy duties imposed upon you. However,
as you now know, your name has been mentioned repeatedly in
this litigation and in the preliminary examinations. Furthermore, there is no doubt but that at the coming trial it must
be mentioned again on innumerable occasions.
Since your information is first-hand and relevant, I
would like to arrange for the taking of your deposition. At
your convenience, that can be done either in Washington or
in New York. Will you be good enough to recall these matters
to your mind and inform me when I may obtain your statements
upon them.
Thanking you in advance for your courtesy in this matter,
I remain,
Respectfully yours,
/s/ Jerome I. Ziegler
JIZ:BM
188
OCT 6 1939
Dear Mr. Zieglert
Secretary Morgenthau has asked me to reply to your
letter of September 29, 1939, with reference to taking his
deposition in the case of Rudolf Heaht V. Universal Trading
Corporation, et al.
As you know, the Secretary's duties are extremely
pressing at the present time and I feel that it would be on
unnecessary imposition to ask him to answer questions under
en open commission. As en alternative, I suggest that written
interrogatories be settled between you and counsel for Universal
Truding Corporation and submitted to ae for consideration before
anything is done of a formal nature. After I have had . chance
to study the interrogatories, I shall be glad to tell you the
Secretary's wishes in the matter.
Very truly yours,
(Signed) E. H. Feloy. Jile
General Counsel
Jerome I. Ziegler, Esq.
Attorney at Law
12 E. 41st Street
New York, N. I.
NOT/EHF18 Retyped 10/6/39
white House
monday
TREASURY DEPARTMENT
WASHINGTON
189
October 6, 1939.
MEMORANDUM FOR THE SECRETARY:
We are going to be faced very shortly with a demand
from the British for the submission of a copy of ships' manifests on shipments by American flag steamers to neutral countries. (Incidentally, I understand the approach has come, very
informally, from the British already).
During the last war this same question was raised, and
ultimately the so-called Skinner plan was adopted whereby shippers first made application to the British Embassy, and if approved, a permit to load was given. We are undoubtedly going to
be faced with this same question very shortly, end this brings
forward the third problem. We do not want to allow goods for export to move to seaboard from interior points unless approval to
ship has previously been given, otherwise our ports and railroad
facilities will be clogged with cargo which cannot be exported.
Therefore, it seems fundamental that when the question of presenting manifests or adopting the so-called Skinner, or some other
plan, is definitely put forward, at that time some bureau should
be in existence to handle our own problem of export permits.
During the last war this permit was known as a "G. O. C." (General
Operating Committee) permit, and was issued by the committee of
the railroads after presentation to them of the British permit to
load.
Banil Mario
190
OCT 6 1939
My dear Mr. Attorney Generals
I have received your letter of October 2nd
with which you returned the memorandum dated
October 1, relative to "Credits to Belligerents."
I wish to express to you my appreciation for your
concurrence as to the legal conclusions therein
expressed.
I am enclosing for your files a ribbon
copy of the memorendum on credits.
Sincerely yours,
(Signed) H. Morgenthau, Jr.
Secretary.
The Honorable
The Attorney General of the United States.
Enclosure
FMCG
Eith
191
OCT 6 1939
My dear Mr. Attorney Generals
I have received your letter of October 2nd
with which you returned the memoranium dated
October 1, relative to "Credits to Belligerente.
I wish to express to you my appreciation for your
concurrence as to the legal conclusions therein
expressed.
I am enclosing for your files a ribbon
copy of the memorendum on credits.
Sincerely yours,
(Signed) H Morgenthau, Jr.
Secretary.
The Honorable
The Assoracy General of the United States.
Enclosure
Filed
192
OCT 8 1939
My dear Mr. Attorney Generals
I have received your letter of October 2nd
with which you returned the nemorandum dated
October 1, relative to *Credits to Belligerents."
I wish to express to you my appreciation for your
concurrence as to the legal conclusions therein
expressed.
I am enclosing for your files a ribbon
copy of the memorandum on credits.
Sincerely yours,
(Signed) H Morganthau Jr.
Secretary.
The Honorable
The Astormay General of the United States.
Enclosure
Time
193
OCT 6 1939
My dear Mr. Attorney Generals
I have received your letter of October 2nd
with which you returned the actorantum dated
October 1, relative to #Credits to Belligerentes!
I wish to express to you my appreciation for your
concurrence as to the legal conclusions therein
expressed.
I am enclosing for your files a ribbon
copy of the memorendum on credits.
Sincerely yours,
(Signed: H. Morgenthan, Jr.
Secretary.
The Honorable
The Astomay General of the United States.
Enclosure
Piece
194
OCT 6 1938
My dear Mr. Attorney Generals
I have received your letter of October End
with which you returned the memorandum dated
October 1, relative to "Credits to Belligerente."
I wish to express to you my appreciation for your
concurrence as to the legal conclusions therein
expressed.
I am enclosing for your files a ribbon
copy of the memorendum on credits.
Sincerely yours,
(Signed) H Morgenthau, Jr.
Secretary.
The Honorable
The Attorney General of the United States.
Enclosure
FMCG
a
Qo
Office of the Attorney General
Washington, D.C.
October 2, 1939
My dear Mr. Secretary:
I have examined the attached memo-
randum, prepared in your department, relating
to the legality of short term credit transactions
under the Johnson Act and the existing Neutrality
Act, and concur in the legal conclusions therein
expressed.
With kind regards,
Sincerely,
Honorable Henry Morgenthau, Jr.
The Secretary of the Treasury
Washington, D. C.
195
196
October 2, 1939
My dear Mr. Secretary:
I have examined the attached memo-
randum, prepared in your department, relating
to the legality of short term credit transactions
under the Johnson Act and the existing Neutrality
Act, and concur in the legal conclusions therein
expressed.
with kind regards,
Sincerely,
Honorable Henry Morgenthau, Jr.
The Secretary of the Treasury
Washington, D. C.