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FEDERAL RESERVE BANK
OF NEW YORK
Fiscal Agent of the United States
p
Circular No. 2 3 3 5 , December IS, 1941
"I
I Reference to Circulars Nos. 2262, 2269, 2271, 2274, 2277,
2281, 2292, 2293, 2300, 2301, 2302, 2306, 2309, 2314, 2319,
L 2321, 2326, 2327, 2328, 2329, 2331, 2332 and 2334. J

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 we quote below the text of a telegram received today from the
Treasury Department:
The following is the text of General License No. 68A and press release issued in connection therewith :
CODE OF FEDERAL REGULATIONS
Title 31—Money and Finance: Treasury
Chapter I—Monetary Offices, Department of the Treasury
P a r t 131—General Licenses under Executive Order No. 8389,
April 10, 1940, as amended, and Regulations issued
pursuant thereto.
Section 131.68A

TREASURY DEPARTMENT
O f f i c e o f t h e Secretary
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1S 1Q41

G E N E R A L L I C E N S E N O . 68A U N D E R E X E C U T I V E O R D E R N O . 8389, A P R I L 10, 1940, A S

AMENDED, AND REGULATIONS ISSUED PURSUANT THERETO, RELATING TO TRANSACTIONS IN FOREIGN EXCHANGE, ETC.*

(1) A general license is hereby granted:
(a) licensing as a generally licensed national any individual who is a national of
Japan and who has been residing only in the Continental United States at all times on
and since June 17, 1940, and
(b) licensing as a generally licensed national any partnership, association, corporation or other organization within the Continental United States which is a national
of Japan solely by reason of the interest therein of a person or persons licensed as generally licensed nationals pursuant to this general license.
(2) This general license shall not be deemed to license as a generally licensed national:
(a) any individual, partnership, association, corporation or other organization on
the premises of which the Treasury Department maintains a representative or guard
or on the premises of which there is posted an official Treasury Department notice
that the premises are under the control of the United States Government, or
(b) any bank, trust company, shrpping concern, steamship agency, or insurance
company, or
* 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, Ex. Order 8832, July 26, 1941, and Ex. Order 8963,
December 9, 1941; Regulations, April 10, 1940, as amended June 14, 1941, and July 26, 1941.




(c) any person who, on or since the effective date of the Order, has represented
or acted as agent for any person located outside the Continental United States or for
any person owned or controlled by persons located outside the Continental United
States, or
(d) any person who on or since the effective date of the Order has acted or purported to act directly or indirectly for the benefit or on behalf of any blocked country,
including the government thereof, or any person who is a national of Japan by reason of any fact other than that such person has been domiciled in, or a subject or
citizen of, Japan at any time on or since the effective date of the Order.
(3) A report on the appropriate series of Form TFR-300 shall be filed with the appropriate Federal Reserve Bank within 30 days after the date hereof with respect to the property interests of every person licensed herein as a generally licensed national if the total
value of the property interests to be reported is $1,000 or more.
(4) Every business enterprise licensed herein as a generally licensed national shall
also file with the appropriate Federal Reserve Bank within 30 days after the date hereof
an affidavit setting forth the information required by Form TFBE-1, if the total value of
all property interests of such business enterprise is in excess of $5,000.
(5) Banking institutions within the United States effecting payments, transfers or
withdrawals in excess of $1,000 during any month from the account of any person licensed
as a generally licensed national hereunder, shall file promptly with the appropriate
Federal Reserve Bank a report showing the details of such transactions.
(6) This general license shall not authorize any transaction which, directly or indirectly, substantially diminishes or imperils the assets within the Continental United States
of any national of Japan or otherwise prejudicially affects the financial position of such
national within the Continental United States.
(7) As used in this general license, the term "business enterprise" shall mean any
individual proprietorship, partnership, association, corporation or other organization
engaged in commercial or other business activities within the Continental United States.




E. H. FOLEY, JR.

Acting Secretary of the Treasury.

TREASURY DEPARTMENT
Washington

FOR IMMEDIATE RELEASE,
December 15, 1941

PRESS SERVICE

The Treasury Department today further relaxed to some extent and under appropriate
safeguards the tight restrictions which had been placed upon Japanese residing in this
country. It will be remembered that on the outbreak of war the Treasury, as a precautionary measure, placed a complete stoppage on all Japanese financial and commercial transactions and took custody of many Japanese enterprises.
On December 11, the Treasury issued regulations governing living expenses and wages
for Japanese nationals in the United States and regulations governing Japanese nationals
engaged in the production, marketing, and distributing of food and agricultural products.
The general license issued today by the Treasury unblocks the accounts of Japanese
nationals who have resided continuously within the Continental United States since June
17, 1940 and permits business enterprises within the Continental United States owned and
controlled by such Japanese nationals to continue to operate, except in those cases in which
Treasury representatives are maintained on the premises or an official Treasury notice is
posted indicating that such premises are under Government control. It is anticipated that
Treasury representatives and posted notices will be removed from the premises of many
Japanese enterprises in which they are now maintained, thus allowing such enterprises to
resume normal operations under such general license. It is further anticipated that special
business operating licenses will be issued to many Japanese enterprises in which Treasury
representatives are continued to be maintained allowing such enterprises to operate under
Government surveillance.
Representatives in this country of concerns located abroad or owned and controlled
by persons located abroad are excluded from the privileges of the general license.
The Japanese nationals who are given the benefits of today's license are subjected to
certain reporting requirements and other restrictions which will constitute safeguards
against the abuse of such benefits.

Additional copies of this circular will be furnished upon request.




ALLAN SPROTJL,

President.

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