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FEDERAL RESERVE BANK
O F N E W YORK
Fiscal Agent of the United States
|Circular N o . 2 6 0 7 , April 13. 1943
LReference to Circulars N o s . 2 6 0 5 and 2606

FOREIGN

FUNDS

j

CONTROL

To all Banking Institutions, and Others Concerned,
«» the Second Federal Reserve District:

For your information we quote below from a telegram received from the Treasury
Department:
The following is the text of Public Circular No. 18A issued today:
CODE OF FEDERAL REGULATIONS
TREASURY DEPARTMENT
Title 31—Money and Finance: Treasury
O f f i c e of the S e r r e t a r v
u m c e OI
Chapter I—Monetary Offices, Department of the Treasury
occreiaiy
Appendix B—Public Circulars under Executive Order
A p r i l 13, 1943
No. 8389, April 10, 1940, as amended, and regulations
issued pursuant thereto.*
P U B L I C C I R C U L A R NO. 18A
U N D E R E X E C U T I V E O R D E R NO. 8389, AS A M E N D E D . E X E C U T I V E O R D E R NO. 9193,
S E C T I O N S 3(a) A N D 5(b) O F T H E T R A D I N G W I T H T H E E N E M Y ACT, AS A M E N D E D
BY T H E F I R S T W A R P O W E R S ACT, 1941, R E L A T I N G T O F O R E I G N F U N D S C O N T R O L .

( 1 ) Subject and scope. Public Circular No. 18 prescribes the standard of conduct to be observed with respect to transactions involving enemy nationals. This public circular supplements
Public Circular No. 18 and prescribes the standard of conduct to be observed by United States
concerns located within Latin America with respect to transactions involving other nationals of
blocked countries. It does not purport to prescribe standards for concerns not located within
Latin America.
( 2 ) Authorized transactions by United States concerns located within Latin America. Subject to the exceptions noted in paragraph ( 3 ) , United States concerns located within Latin America are authorized to engage in transactions involving blocked nationals located within the generally
licensed trade area, or within Spain, Portugal, Switzerland or Sweden, without further license.
Such United States concerns will, of course, be expected to comply with all local controls in
engaging in such transactions.
(3) Transactions by United States concerns located within Latin America which are not
authorized. The following transactions shall not be engaged in by any United States concern
located within Latin America except pursuant to general or specific licenses issued by the Treasury Department:
( a ) Any transaction involving a dollar account of a blocked national located outside the
generally licensed trade area, if such account is held on the books of a United States concern
located within Latin America which is a bank or other financial institution;
( b ) Any transaction involving an enemy national (see Public Circular No. 18). In
addition to the foregoing, the Treasury Department or any United States mission in the
other American republics at any time may stipulate that any particular transaction or class
of transactions requires a specific license. Any such stipulation shall be binding upon all
persons having notice thereof.
( 4 ) Filing of applications. Applications for specific licenses to engage in any transaction
may be filed with any United States diplomatic and consular officer in the other American republics or with a Federal Reserve Bank in the United States.
( 5 ) Definitions.
( a ) The term "transaction involving a blocked national" shall include any transaction
with, by, on behalf of, or at the direction of a blocked country or national thereof, or which involves property in which such national or country has an interest.
( b ) The term "United States concern located within Latin America" shall mean any
person subject to the jurisdiction of the United States located within Latin America, and the
term "person subject to the jurisdiction of the United States" shall have the meaning prescribed in Public Circular No. 18.
( c ) The term "generally licensed trade area" shall have the meaning prescribed in General License No. 53.
^
RANDOLPH

PAUL

Acting Secretary of the Treasury
* Appendix B—Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; Public No. 354, 77th Congress, 55 Stat. 838; Ex. Order 8389, April 10, 1940, as amended by Ex. Order 8785, June 14, 1941, Ex. Order
8832, July 26, 1941. Ex. Order 8963, December 9, 1941. and Ex. Order 8998, December 26, 1941; Ex.
Order 9193, July 6, 1942; Regulations, April 10, 1940, as amended June 14, 1941, and July 26, 1941.

Additional copies of this circular will be furnished upon request.




ALLAN SPROUL,

President.

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