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182 (30ARD OF GOVERNORS .. OF THE FEDERAL RESERVE SYST~M S-458 WASHINGTON ADCIRESS DF'F'ICIAL CDRAESPDNCIENCE ,' TO THE SOARD April 1, 1942. I Dear Sir: . There is enclosed for your information a copy,of , a statement issued by the Department of State regarding the procedure to be followed in extending financial assistance to American nationals -in territories wJ:iere the interests of the United Stat0s are represented by Sv-ritzerland. ( In the event- your ba.'1k should be called upon to any advice concerning this matter, you are authorized to say that the State Department prefers that a.11y act;ion to provide financial assistance to Arrterican nationals 1 in territories where the interests of the United_ States are repre- . sented by S-witzerland, be initiate( b~ the person seeking such assistance . or by near :r.-elatives located in this country. We are advised that Swiss representatives located in such enemy territories have been asked to contact citizens of the United States living in such territories and advise them of the substance of the· enclosed statement. g~ve -· L. P. Bethea, Assistant Secretary. Enclosure TO Tn~ PRESIDENTS OF ALI.. FEDI~-=tAL RESEHVE BANKS \ ., S-458-a 183 PROCEDURE TO BE FOLLOWED IN EXTEl\fDllJG . FINANCIAL ASSISTAi.fCE TO AlilERICAlJ NATIONALS IN TERHITORIES · VffillRE Till: Il'JTERESTS OF THE ill'UTED STATES Arill lmPRESEiJTED BY" SWITZERLAND • The Department of State has comr)leted arrangements for fL"'lancial as--. sistance to AmGrican nationals in territories whera the iEterests of the United States are represented by Switzerlfu"'ld.-:<- Those able to qualify for such a?sist.ance vlill be entitled to receive from the Svdss representatives monthly payments ~corresponding to their e~tablished needs and the prevaili.11g cost of living in the country conc~rned. All recipients vri.ll be limited to the monthly payments established for their~ place of residence, regardless of their ability or the ability of. others interested in their welfare to repay amounts greater than tne sums advanc~d. It is realized that a limitation upon the amount that American nationals may' expend in enemy territory, e~en from their own resources, 1vill entail some hardship. . The conservation of foreign· e.xchange, however, is essential factor in the present economic policy of the United States and it is expected that Americans everyw·here will willingly share with those in the armed forces the sacrifices that must be made in \vinning the war. an Based upon the latest ascertained cost of living in the various coun-:trie.s concerned, the maximum monthly payment for the head of a household will range from $60 to $80, with smaller allowances for additional members of the household. ·The monthly payments are subject to revision from tinle'to :time to meet changing living costs., In addition, the Swiss representatives are ·authorized to make special advances for such extraordinar.y expenditures as may be essential to the health or safety of American nationals for medical, surgical, or dental cfore, for hospitalization, for reasonable legal defense against political or criminal charges, or for a decent though modest burial wnere such is not provided by friends or;relatives locally nor by the local authorities. Wherever pr;isoners of war artd interned civilians are supported ~ tl:le detaining Power, it is expected tnat payments made to them will generally not exceed a small sum sufficient to provide spending money for miscellaneo11s personal needs not supplied by the detaining Power. However, no payments will be made to officers or to persons of equivalentstatus held as prisoners ofwar, who receive pay under the convention relative to the treatment of prisoners of war, signed at Geneva 0~ July 27, 1929. a~s, Aliens, including alien spouses ~~d alien children of American nationcannot qualify for payments from funds of the United States Government. Swiss representatives charged ·with the representa-tion of the interests ·of the United States will explain to the recipients that suc,h financial/assistance should not be considered as public bounty but as loans from public-funds to American nationals finding themselves in an abnormal position by- reason of'the' war. -;}Switzerland represents the interests of the United States in Germany, Italy, and Japan, in territories o~ccupied by those countr~es, and in Bulgaria_,, Hungary, and Jt~ia. . . \ • 184 -2- .. ( • .. S-L:-58-a It is accordingly expected that all sums advanced ~~11 be repaid either by the recipients themselves or by relatives, friends, business associates, employers, or legal representatives in the United States • Receipts embodying promises to repay without interest the sums' advanced will be taken for all payments. Private deposits to reimburse the Government for sums advanced should be made v'lith the Department of State. Persons wishing to make such deposits should indicate the names of thS beneficiaries and should remit by postal money orders or certified checks payable,to "The Secretary of State of the United States". The above arrangements do not apply to the Philippine Islands. Department of State, Washington, March 10, 1942. ' / \