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FEDERAL RESERVE BANK
OF NEW YORK
Circular Xo 2.T1 4 .. November 12. 1941
1941
14
T
os.
Reference to Circulars Nos. 2262. 2209, 2271. 2274, 2277,
J,
J
2281, 2292, 229J, 2300, 2 JU1, 2302, 2306 aiul 2309.

Executive Order No. 8389, as Amended, and Regulations Issued Pursuant Thereto,
Relating to Transactions in Foreign Exchange, Etc.
To all Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:

For your information \re quote below the texts of General Licenses No. 58, as amended,
No. 59, as amended, and No. 61, as amended, revocation of General License No. G4, General
License No. 75 and Public Circular No. 7 issued November 12, 1941, by the Secretary of the
Treasury pursuant to Executive Order No. 8389 of April 10,1940, as amended, and the Regulations issued thereunder.
TREASURY DEPARTMENT
Office of the Secretary
November 12, 1941
GENERAL LICENSE NO. 58. AS AMENDED, UNDER EXECUTIVE ORDER NO. 8.189,
APRIL 10, 1940. AS AMENDED. AND REGULATIONS ISSUED PURSUANT THERETO,
RELATING TO TRANSACTIONS IN FOREIGN EXCHANGE, ETC.*

General License No. 58 is amended to read as follows:
(1) A general license is hereby granted licensing all transactions ordinarily incident
to the importing and exporting of goods, wares and merchandise between the United States
and any part of China other than Manchuria, provided the following terms and conditions
are complied with:
(a) Such transaction shall not involve property in which any one of the following
has at any time on or since the effective date of the Order had any interest and shall
not be by, or on behalf of, or pursuant to the direction of any one of the following:
(i) any blocked country other than China, or
(ii) any person within Manchuria, or
(iii) any national of any blocked country other than China unless such national
is within China;
(b) Exports from the United States to China having a value in excess of $100
shall be effected only provided both of the following conditions are satisfied:
(i) payment therefor has been or will be made through a domestic bank and
such domestic bank has been notified by an appointed bank that the
importer within China has paid or has completed arrangements to pay
therefor with United States dollars acquired from such appointed bank,
* Tart Ml:—Sec. 5(b). 40 Stat. 415 and 966: Sec. 2. 48 Stat. 1; 54 Stat. 179: Ex. Order 8.VS0. April 10,
1940. as amended by Ex. Order 8785. lune 14. 1941. and Ex. Order 8832, July 26, 1941; Regulations,

April 10, 1940, as amended June 14, 1941, and July 26, 1941.




or in lieu of the foregoing, a domestic bank has been notified by an
appointed bank that the shipment has been otherwise approved by the
Stabilisation Board of China; and
(ii) on each shipment the domestic bank referred to in (i) shall execute Form
TFR-158 in quadruplicate. The original of such executed form shall be
transmitted by the domestic bank directly to the collector of customs at
the port of exportation and shall be received by such collector of
customs prior to the exportation of the shipment. The duplicate of such
executed form shall be delivered by the domestic bank to the exporter
or his agent who shall present and. if requested, deliver such copy to the
collector of customs at the port of exportation at the time the Shipper's
Export Declaration is filed. The remaining two copies of such executed
form shall be filed promptly by the domestic bank with the appropriate
Federal Reserve Bank.
(c) Imports into the United States from China having a value in excess of $100
shall be effected only provided both of the following conditions are satisfied:
(i) payment therefor in United States dollars has been or will be made
through a domestic bank and the exporter within China has sold or has
completed arrangements for selling such United States dollars to an
appointed bank, or in lieu of the foregoing, the shipment has been Otherwise approved by the Stabilization Board of China; and
(ii) prior to the release of any such shipment from customs custody the collector of customs of the port of entry through which the shipment is
imported shall have received a consular invoice covering such shipment
and such consular invoice shall bear the certification of a United States
consul in China that an appointed bank has duly notified the consul that
the exporter within China has sold or has completed arrangements for
selling the United States dollar proceeds from such shipment to such
appointed bank or that the shipment has been otherwise approved by the
Stabilization Board of China.
(d) The conditions prescribed in (b) and (c) shall not apply with respect to any
import or export:
(i) if the shipment v/as in transit between the United States and China on
November 12, 1941 ; or
(ii) if the consignee or consignor of the shipment is the United States Government or the Chinese National Government or a recognized agency or
political instrumentality of either government; or
(iii) if payment for the shipment was fully effected prior to November 12. 1941,
and the following reporting procedure is followed: On each such shipment a domestic bank participating in financing the shipment shall execute
Form TFR-158A in quadruplicate. The original of such executed form
shall be transmitted by such domestic bank directly to the collector of
customs at the port of importation or exportation as the case may be and
shall be received by such collector of customs prior to the release of such
shipment from customs custody or prior to the exportation of such shipment as the case may be. The duplicate of such executed form shall be
delivered by the domestic bank to the importer or exporter or their
respective agents who shall present and. if requested, deliver such copy
to the collector of customs at the time the shipment is released from
customs custody or the Shipper's Export Declaration is filed, as the case
may be. The remaining two copies of such executed form shall be filed
promptly by the domestic bank with the appropriate Federal Reserve
Bank.
(e) Any domestic bank prior to issuing, confirming or advising letters of credit,
or accepting or paying drafts drawn, or reimbursing themselves for payments made,
under letters of credit, or making any other payment or transfer of credit, in connection with any importation or exportation pursuant to this general license, or engaging
in any other transaction herein authorized, shall satisfy itself (from the shipping
documents or otherwise) that:




2

-v

(i) any such transaction is incident to a bona fide importation or exportation
and is customary in the normal course of business, and that the value of
such importation or exportation reasonably corresponds with the sums of
money involved in financing such transaction; and
(ii) such importation or exportation is or will be made pursuant to all the
terms and conditions of this license.
(2) As used in this general license:
(a) The term "appointed bank" shall mean any of those banks cooperating with
the Stabilization Board of China and buying and selling foreign exchange with the
permission of, and subject to the conditions prescribed by, such Board, the names of
which appear on Schedule A of this general license at the time the transaction is
effected.
(b) A person shall not be deemed to be "within China" unless such person was
situated within and doing business within China on and since June 14, 1941.
E. H. FOLEY, JR.

Acting Secretary of the Treasury.

November 12, 1941
SCHEDULE A OF GENERAL LICENSE NO. 58
The offices within Hong Kong and any part of China, except Manchuria, of the
following are hereby licensed as "appointed banks" within the meaning of GeneraL License
No. 58:
(a) The Chase Bank
(b) National City Bank of New York
(c) Underwriters Bank for the Far East
(d) American Express Company
(e) Moscow Narodny Bank, Ltd.
(f) Thos. Cook & Son (Bankers) Ltd.
(g) Hongkong & Shanghai Banking Corporation
(h) Mercantile Bank of India, Ltd.
(i) David Sassoon & Co., Ltd.
(j) E. D. Sassoon & Co., Ltd.
(k) E. D. Sassoon Banking Co., Ltd.
(1) Chartered Bank of India, Australia & China, Ltd.
(m) Nederlandsch Indische Handelsbank
(n) Nederlandsche Handel Maatschappij
(o) Shanghai Commercial and Savings Bank, Ltd.
(p) Bank of East Asia, Ltd.
(q) National Commercial Bank, Ltd.
(r) Chekiang Industrial Bank, Ltd.
(s) Bank of Canton, Ltd.
(t) Oversea-Chinese Banking Corporation, Ltd.
(u) Kincheng Banking Corporation
(v) China Banking Corporation
(w) Bank of China
(x) Bank of Communications
(y) Farmers Bank of China
(z) Central Bank of China




E. II. FOLEY. JR.

Acting Secretary of the Treasury.

TREASURY DEPARTMENT
Office of the Secretary
November 12, 1941
GENERAL LICENSE NO. 59, AS AMENDED, UNDER EXECUTIVE ORDER NO. 8389,
APRIL 10, 1940, AS AMENDED, AND REGULATIONS ISSUED PURSUANT THERETO,
RELATING TO TRANSACTIONS IN FOREIGN EXCHANGE, ETC.*

General License No. 59 is amended to read as follows:
(1) A general license is hereby granted licensing as generally licensed nationals in
offices within Hong Kong and any part of China except Manchuria of the following:
(a) The Chase Bank
(b) National City Bank of New York
(c) Underwriters Bank for the Far East
(d) American Express Company
(e) Moscow Narodny Bank, Ltd.
(f) Thos. Cook & Son (Bankers) Ltd.
(g) Hongkong & Shanghai Banking Corporation
(h) Mercantile Br.nk of India, Ltd.
(i) David Sassoon & Co., Ltd.
(j) E. D. Sassoon & Co., Ltd.
(k) E. D. Sassoon Banking Co., Ltd.
(I) Chartered Bank of India, Australia & China, Ltd.
(m) Nederlandsch Indische Handelsbank
(n) Nederlandsche Handel Maatschappij
(o) Shanghai Commercial and Savings Bank, Ltd.
(p) Bank of East Asia, Ltd.
(q) National Commercial Bank, Ltd.
(r) Chekiang Industrial Bank, Ltd.
(s) Bank of Canton, Ltd.
(t) Oversea-Chinese Banking Corporation, Ltd.
(u) Kincheng Banking Corporation
(v) China Banking Corporation
(2) Any such office of any such bank is also authorized to engage in all transactions ordinarily incident to the importing and exporting of goods, wares, and merchandise
between the United States and any part of China, except Manchuria, provided all the
terms and conditions of General License No. 58 are complied with.
(3) Banking institutions within the United States making any payment, transfer or
withdrawal from the accounts of any such office of the aforementioned banking institutions shall file promptly with the appropriate Federal Reserve Bank monthly reports
setting forth the details of such transactions during such period.
E. H. FOLEY, JR.

Acting Secretary of the Treasury.

* Part 131:—Sec. 5(b). 40 Stat. 415 and 966: Sec. 2. 48 Stat. 1; 54 Stat. 179; Ex. Order 8389. April 10,
1940. as aim-nded by Ex. Order 8785. June 14. 1941. and Ex. Order 8832, July 26, 1941; Regulations,
April 10, 194U, as amended June 14, 1941, and July 26, 1941.




f

TREASURY DEPARTMENT
Office of the Secretary
November 12, 1941
GENERAL LICENSE NO. 61. AS AMENDED, UNDER EXECUTIVE ORDER NO. 8.189,
APRIL 10, 1940. AS AMENDED, AND REGULATIONS ISSUED PURSUANT THERETO,
RELATING TO TRANSACTIONS IN FOREIGN EXCHANGE, ETC.*

General License No. 61 is amended to read as follows:
(1) A general license is hereby granted licensing the offices outside the United States
and not within any blocked country other than China of the following Chinese banks as
generally licensed nationals:
(a) the Bank of China;
(b) the Bank of Communications; and
(c) the Farmers Bank of China.
Any transaction engaged in by any such office of any such bank pursuant to the order
of or for the account of any person not within any blocked country is also hereby authorized to the same extent, and under the same circumstances, as though such transaction
were solely for the account of such office of such bank; provided, however, that this authorization shall not be deemed to permit any payment, transfer or withdrawal from any blocked
account.
(2) Any office within Hong Kong or any part of China, except Manchuria, of any
such bank is also authorized to engage in all transactions ordinarily incident t3 the
importing and exporting of goods, wares and merchandise between the United States and
any part of China, except Manchuria, provided all the terms and conditions of General
License No. 58 are complied with.
(3) Banking institutions within the United States making any payment, transfer or
withdrawal from the accounts of any such office of the aforementioned banks shall file
promptly with the appropriate Federal Reserve Bank monthly reports setting forth the
details of such transactions during such period.
E. H. FOLEY. JR.

Acting Secretary of the Treasury.
• Part 131 j—Sec. 5(b). 40 Stat. 415 and 966: Sec. 2. 48 Stat. I; 54 Stat. 179; Ex. Order 8380. April 10,
1940. as amended by Ex. Order 8785. June 14. 1941, and Ex. Order 8832, July 26, 1941; Regulations,
April 10, 1940, as amended June 14, 1941, and July 26, 1941.

TREASURY DEPARTMENT
Office of the Secretary
November 12, 1941
REVOCATION OF GENERAL LICENSE NO. 64 UNDER EXECUTIVE ORDER NO. 8.189,
APRIL 10, 1940, AS AMENDED. AND REGULATIONS ISSUED PURSUANT THERETO,
RELATING TO TRANSACTIONS IN FOREIGN ENCHANGE, ETC.*

General License No. 64 is hereby revoked.
E. H. FOLEY. JR.

Acting Secretary of the Treasury.
* Part 13!;—Sec, 5(b). 40 Stat. 415 and 966: Sec. 2. 48 Stat. 1; 54 Stat. 179; Ex. Order 8389. April 10,
1940. as amended by Ex. Order 8785. June 14. 1941. and Ex. Order 8832, July 26, 19-11; Regulations,
April 10, 1940, as amended June 14, 1941, and July 26, 1941.




TREASURY DEPARTMENT
Office of the Secretary
November 12, 1941
GENERAL LTCENSE NO. 75 UNDER EXECUTIVE ORDER NO. 8389. APRTL 10. 1940, AS
AMENDED, AND REGULATIONS ISSUED PURSUANT THERETO, RELATING
TO TRANSACTIONS IN FOREIGN EXCHANGE, ETC.*

(1) A general license is hereby granted authorizing remittances in any amount by
any person through any domestic bank to any person in any part of China except
Manchuria, and any domestic bank is authorized to effect such remittances, provided the
following terms and conditions are complied with:
(a) Such remittances may be made from any account other than a blocked account
and, subject to item (b) hereof, such remittances may be made from the blocked
account of any national of China.
(b) Such remittances may not be made from any blocked account if any of the
following has an interest in such account:
(i) Any national of any blocked country other than China;
(ii) Any person within Manchuria; or
(iii) Any blocked country other than China; and
(c) Such remittances shall be effected by a domestic bank paying the dollar
amount of the remittance to a designated agent of the Central Bank of China for the
account of an appointed bank.
(2) All domestic banks effecting such remittances shall satisfy themselves that the
foregoing terms and conditions are complied with.
(3) With respect to each remittance made pursuant to this general license reports on
Form TFR-132 shall be executed and filed in the manner and form and under the conditions prescribed in General License No. 32. Domestic banks through which any such
remittances originate shall note on the reverse side of such form the nature of the transaction for which the remittance is being made but need not furnish the information called
for in item 6 of such form.
(4) All dollars accruing to any appointed bank pursuant to this general license shall,
if so required by the Stabilization Board of China, be made available to the Board by payment to the Central Bank of China against delivery of an equivalent amount of Chinese
national currency.
(5) This general license shall not be deemed to authorize any transaction incidental
to imports and exports between the United States and China.
(6) As used in this general license:
(a) The term "appointed bank" shall have the same meaning as that prescribed
in General License No. 58.
(b) The term "designated agent of the Central Bank of China" shall mean either
the Bank of China or the Philippine Bank of Communications.
E. H. FOLFY. JR.

Acting Secretary of the Treasury.
* Pan 1.11:—Sec. 5fb>. 40 Stat. 415 and 96r>: Sec. 2. 48 Stat. 1: 54 Stat. 179; Ex. Order 8389. April 10,
1940. as amended hy Ex. Order S785. June 14. 1941. and Ex. Order 8832, July 26, 1941; Regulations,
April 10, 1940, as amended June 14, 1941, and July 26, 1941.




TREASURY DEPARTMENT
Office of the SecretaryNovember 12, 1941
PUBLTC CIRCULAR NO. 7
UNDER EXECUTIVE ORDER NO. 8389, APRIL 10. 1940, AS AMENDED, AND
REGULATIONS ISSUED PURSUANT THERETO. RELATING TO
TRANSACTIONS IN FOREIGN EXCHANGE, ETC.*

General Licenses Nos. 32 and 33 shall not be deemed to authorize remittances to anyindividual in any part of China, except Manchuria, unless such remittances are effected in
the manner prescribed in paragraph (1) (c) of General License No. 75, namely, by a
domestic bank paying the dollar amount of the remittance to a designated agent of the
Central Bank of China for the account of an appointed bank.
E. H. FOLEY, JR.

Acting Secretary of the Treasury.

* Part 131;—Sec. 5(b), 40 Stat. 415 and 966; Sec. 2. 48 Stat. 1; 54 Stat. 179; Ex. Order 8389. April 10,
1940. as amended by Ex. Order 8785. June 14. 1941. and Ex. Order 8832, July 26, 1941; Regulations,
April 10, 1940, as amended June 14, 1941, and July 26, 1941.

Additional copies of tins circular will be furnished upon request.




ALLAN

President.

TREASURY DEPARTMENT
Washington

FOR IMMEDIATE RELEASE
November 12, 1941

PRESS SERVICE
No. 28-41

The Secretary of the Treasury today announced amendments to General License No. 58 relating to trade
between the United States and China under the freezing control and the issuance of a new general license covering
remittances to China.
Under today's amendment to General License No. 58 trade between the United States and China will be cleared
through the Stabilization Board of China or its authorized agents. U. S. Customs authorities have been instructed
before clearing shipments to require proof that this condition has been satisfied. The dollars accruing from exports
from China to the United States will be made available to China, and the National Government of China will be
aided in controlling imports.
The foreign exchange position of China will also be strengthened by the new General License No. 75 covering
remittances to China. Pursuant to this license remittances in any amount are permitted to any part of China, except
Manchuria, as long as the United States dollars arising from such remittances are made available to the Stabilization
Board of China upon its demand. Dollars in Chinese blocked accounts as well as unblocked dollars may be employed
in making such remittances.
Under General License No. 75 any domestic bank in the United States can accept orders for remittances to
China. Such remittances are then effected by a domestic bank paying the dollar amount of the remittance to a
designated agent of the Central Bank of China for the account of an "appointed bank." These dollars will in turn
be made available to the Stabilization Board of China upon demand against delivery of an equivalent amount of
Chinese national currency. The Chinese Government has announced that the Bank of China and the Philippine
Bank of Communications have been named as designated agents of the Central Bank of China.
Both the United States and Great Britain have previously entered into stabilization agreements with China
whereby dollar and sterling exchange have been made available to the Stabilization Board of China. Such Board
was established recently by China and consists of three Chinese, an American appointed by China on the recommendation of the Secretary of the Treasury, and a British national appointed on the recommendation of the British
Treasury.
The term "appointed bank" is defined in General License No. 58 as "any of those banks cooperating with the
Stabilization Board of China and buying and selling foreign exchange with the permission of, and subject to the
conditions prescribed by, such Board, the names of which appear on Schedule A of this general license at the time
the transaction is effected." The offices within Hong Kong and any part of China except Manchuria of the following
banks have been named "appointed banks":
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(1)
(m)
(n)
(o)
(p)
(q)
r)
s)
t)
u)
v)
(w)
(x)
(y)
(z)

The Chase Bank
National City Bank of New York
Underwriters Bank for the Far East
American Express Company
Moscow Narodny Bank, Ltd.
Thos. Cook & Son (Bankers) Ltd.
Hongkong & Shanghai Banking Corporation
Mercantile Bank of India, Ltd.
David Sassoon & Co., Ltd.
E. D. Sassoon & Co., Ltd.
E. D. Sassoon Banking Co., Ltd.
Chartered Bank of India, Australia & China, Ltd.
Nederlandsch Indische Handelsbank
Nederlandsche Handel Maatschappij
Shanghai Commercial and Savings Bank, Ltd.
Bank of East Asia, Ltd.
National Commercial Bank, Ltd.
Chekiang Industrial Bank, Ltd.
Bank of Canton, Ltd.
Oversea-Chinese Banking Corporation, Ltd.
Kincheng Banking Corporation
China Banking Corporation
Bank of China
Bank of Communications
Farmers Bank of China
Central Bank of China





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102