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FEDERAL RESERVE BANK OF DALLAS Dallas, Texas, July 5, 1940 N E T H E R LA N D S R O Y A L DECREE O F M AY 2 4 , 1 9 4 0 , AND P O W E R O F A T T O R N E Y ISSU E D TH ER EU N D ER T O THE M IN ISTER O F THE N E T H E R LA N D S, W A S H IN G T O N , D. C. To all Banking Institutions, and Others Concerned, in the Eleventh Federal Reserve D istrict: A t the request o f the Secretary o f the Treasury, we enclose, printed in a separate pamphlet, copies o f the following: A letter from the Secretary o f State dated June 27, 1940, ad dressed to the Secretary o f the Treasury, with reference to the Netherlands Royal Decree dated May 24, 1940, relating to certain property o f individuals and companies resident in the Kingdom o f the Netherlands. An Ehglish translation o f such Decree, certified by the Minister fo r the Netherlands, which was enclosed with the letter from the Secretary o f State. The letter from the Secretary o f State sets forth the exchange o f notes between the State Department and the Minister o f the Netherlands in Wash ington, D. C., relative to such Royal Decree and to a power o f attorney executed by the Royal Netherlands Government in favor o f the Netherlands Minister at Washington, D. C. Yours very truly, R. R. GILBERT President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Netherlands Royal Decree of May 2 4 ,1 9 4 0 , and Power o f A ttorney issued thereunder to the Minister of the Netherlands, Washington, D. C. (C op y o f letter dated June 27, 1940, from the S ecretary o f State to the S ecretary o f the T reasury setting forth the exchange o f notes between the State Department and the Minister o f the Netherlands relative to such Decree and Pow er o f A ttorn ey ; and cop y o f English translation o f such Decree, certified by the M inister of the Netherlands.) C opy o f L etter to the S ecretary o f the Treasury. ADDRESS O F F IC IA L . C O M M U N I C A T IO N S T O T H E S E C R E T A R Y O F ST A T E W A S H IN G T O N , D . C . DEPARTM ENT OF STATE W A S H IN G T O N In reply refer to Eu 840.51 F rozen Credits/174 June 27, 1940 M y dear Mr. S ecreta ry: Reference is made to the D epartm ent’s letter to you dated M ay 28, 1940 with which was enclosed a cop y o f a note from the Netherlands Minister in W ashington, regarding the prom ul gation o f a R oyal Decree dated M ay 24, 1940 relating to certain properties o f individuals and companies resident in the K ingdom o f the Netherlands. In this connection I have the honor to advise you o f the follow in g: U nder date o f June 11,1940 the Department received a telegram from the Am erican A m bas sador in L ondon the contents o f which were transmitted to Dr. A lexander Loudon, the M inister o f the Netherlands in W ashington in a note dated June 13, 1940, reading as follow s: “ June 13, 1940 u S ir: “ I have the honor to quote fo r you r inform ation the follow ing text, received through the United States Am bassador in London, o f a pow er o f attorney executed by the R oyal Netherlands Government now tem porarily exercising its functions in London, together with its texts o f two documents annexed to such pow er o f attorney: “ ‘ The R oyal Netherlands Government, tem porarily residing and exer cising its functions in London, acting through the undersigned: P. S. Gerbrandy, Minister o f Justice, C. H. W elter, Minister fo r the Colonies, E. N. V an K leffens, M inister fo r F oreign A ffairs, hereby authorizes the Netherlands M inister at W ashington, D. C., Dr. Alexander Loudon, to operate, control and otherwise exercise complete dominion over all accounts and all other p rop erty and interests o f any nature whatever in the United States o f Am erica, its territories and possessions, including the Philippine Islands and the Canal Zone, vested by the R oya l Decree o f M ay 24, 1940, in the State o f the Nether lands as represented by the R oyal Netherland Government tem porarily resid ing and exercising its functions in London. The Netherlands M inister at W ashington, D. C., is further authorized to make certifications to any inter ested party o f exemptions under the aforem entioned R oyal Decree. The Neth erlands Minister at W ashington, D. C., m ay from time to time delegate any or all o f the authority vested in him hereunder with pow er o f revocation or substitution. London, June 11, 1940. The M inister o f Justice, (signed) P. S. Gerbrandy the M inister o f the Colonies, (signed) C. H. W elter, the Minister fo r F oreign A ffairs, (signed) E. N. Van K leffen s.’ “ The A m bassador reports that affixed to the above-mentioned document is a further document reading as fo llo w s : “ ‘ I, Jonkheer E. Michiels Van Verduynen, E nvoy E xtraordinary and M inister Plenipotentiary o f H er M ajesty the Queen o f the Netherlands to the Court o f St. James hereby certifies that P. S. Gerbrandy, who has signed the annexed document, was at the time o f signing the Minister o f Justice o f the R oyal Netherlands Government, that C. H. W elter, who has signed the an nexed document, was at the time o f signing the Minister fo r the Colonies o f the R oyal Netherlands Government, that E. N. Van K leffens, who has signed the annexed document, was at the time o f signing the M inister fo r F oreign A ffa irs o f the R oyal Netherlands Government, and that the signatures affixed on the annexed document are the genuine signatures o f the Ministers o f Justice, Colonies and F oreign A ffairs respectively, and that they, having countersigned the R oyal D ecree o f M ay 24,1940, Staatsblad number A (N ederiandsche Staatscourant number 151, 1940) are the competent Ministers o f the R oyal Netherlands Government to sign such a document on behalf o f the R oyal Netherlands Government, tem porarily residing and exercising its function in London. London, 11th June 1940. (signed and sealed) E. Michiels V an V erduynen.’ “ The Am bassador also reports that affixed to the above-mentioned documents is a third document reading as fo llo w s : “ ‘ Certificate o f acknowledgment o f execution o f document Great Britain and Northern Ireland London, England, Consulate General o f the United States o f Am erica, I, John J. Coyle, Vice Consul o f the United States o f A m erica at London, England, duly commissioned and qualified, do hereby certify that on this eleventh day o f June, 1940, before me personally appeared “ ‘ Jonkheer E. Michiels V an Verduynen, to me personally known, and known to me to be the individual described in, whose name is subscribed to, and who executed the annexed instrument, and being inform ed by me o f the contents o f said instrument he duly acknowledged to me that he executed the same freely and voluntarily fo r the uses and purposes therein mentioned. In witness w hereof I have hereunto set m y hand and official seal the day and year last above written, (signed and sealed) John J. Coyle, V ice Consul o f the United States o f Am erica. No fee prescribed service number 4880.’ “ The Am bassador reports that the foregoin g documents are in his possession and will be transmitted to the Department o f State by diplom atic pouch. “ A ccept, Sir, the renewed assurances o f m y highest consideration. ‘ ‘ F o r the Secretary o f S ta te: “ A. A. B erle, J r. ” In reply to the D epartm ent’s note o f June 13, 1940 the Netherlands Minister addressed to the D epartm ent his note no. 4934 dated June 14, 1940, the text o f which is as fo llo w s : “ R oyal N etherlands “ No. 4934 L e g a t io n W ashington, D. C. June 14,1940 “ Sir, “ I have the honor to acknowledge the receipt o f your note, dated June 13th, 1940, concerning a pow er o f attorney which has been granted me by the R oyal Netherlands Government to operate, control and otherwise exercise complete dominion over all accounts and all other prop erty and interests o f any nature whatever in the United States, and its territories and possessions, including the Philippine Islands and the Canal Zone, vested b y the R oyal D ecree o f M ay 24, 1940, in the State o f the Nether lands as represented b y the R oyal Netherlands Government, tem porarily residing and exercising its functions in London. “ The p ow er o f attorney in question is dated London, June 11, 1940, and is signed by P. S. Gerbrandy, the Netherlands M inister o f Justice, Ch. W elter, the M inister fo r the Colonies, and by E. N. van K leffens, the M inister fo r F oreign A ffairs. The pow er o f attorney is authenticated by Jonkheer E. Michiels van Verduynen, E nvoy E xtra ordinary and M inister P lenipotentiary o f H er M ajesty, the Queen o f the Netherlands to the Court o f St. Janies, who has thereby certified that Mr. P. S. Gerbrandy, Mr. Ch. W elter, and Mr. E. N. van K leffens are M inister o f Justice, Minister fo r the Colonies, and Minister fo r F oreign A ffairs, respectively, o f the E oyal Netherlands G overnm ent; that the signatures affixed to the said pow er o f attorney are the genuine signatures o f the M inisters o f Justice, Colonies and F oreign A ffairs, respectively, and that they are the Ministers o f the E oyal Netherlands Government competent to sign such a document on behalf o f the E oyal Netherlands Government. “ I have been inform ed o f the execution o f the abovementioned pow er o f attorney by the E oyal Netherlands F oreign Office in a telegram, dated June 11th, 1940, in which it was stated that such pow er o f attorney had been delivered to the United States A m bassador in London fo r transmission to the Department o f State in W ashington. The text o f such pow er o f attorney and the texts o f the documents annexed thereto, which were received by you in a telegram from the United States Am bassador in London, and which you quoted to me in your note dated June 13th, 1940, are accepted by me as the authentic and binding texts o f the said pow er o f attorney and o f its annexed documents. “ An official English translation o f the E oyal Decree o f M ay 24, 1940, Staatsblad number A (Nederlandsche Staatscourant number 151, 1940) was transmitted to you with my note No. 4259 o f June 1, 1940. A n additional copy o f the official English trans lation is enclosed herewith. “ U nder instruction o f m y Government I now have the honor to certify to Y our E x cellen cy : “ 1) That the foregoin g E oyal Decree is a valid and binding act o f the E oyal Netherlands Government, and, pursuant to the terms thereof, claims, rights, prop erty and interests referred to therein are, under the laws o f the Netherlands, vested in the State o f the Netherlands, as represented b y the E oyal Netherlands Government tem porarily residing and exercising its functions in London. “ 2) That P. S. Gerbrandy, as Minister o f Justice, Ch. W elter, as M inister fo r the Colonies, and E. N. van K leffens, as M inister fo r F oreign A ffairs, respectively, o f the E oyal Netherlands Government, are duly and legally authorized and em pow ered to sign documents o f the nature o f the above-mentioned pow er o f attorney, and that Jonkheer E. Micliiels van Verduynen is the duly accredited E n voy E xtraordinary and M inister Plenipotentiary o f H er M ajesty, the Queen o f the Netherlands to the Court o f St. James, and as such has full authority to authenticate such pow er o f attorney on behalf o f the Eoyal Netherlands Government tem porarily residing and exercising its functions in London. “ 3) That under the above described pow er o f attorney I am duly and legally authorized and empowered to operate, control and otherwise exercise complete domin ion over the accounts, property and interests referred to th erein ; to make certifications o f exemptions under the E oyal Decree o f M ay 24, 1940; and to delegate the authority vested in me under such pow er o f attorney, with pow er o f revocation and substitution. “ I have the honor to request you to furnish a copy o f this note to the appropriate authorities o f the United States Government and to take any steps which you deem necessary to bring the contents o f the E oyal D ecree o f M ay 24, 1940, and o f my pow er o f attorney, to the attention o f interested persons and institutions in the United States. ‘ ‘ Please accept, Sir, the renewed assurances o f m y highest consideration. “ A. L oudon” The enclosure mentioned in the above-quoted note from the Netherlands M inister (a copy o f an official translation o f the R oya l D ecree o f M ay 24, 1940) is enclosed herewith. It w ill be noted that the M inister states that he had been inform ed o f the execution o f the above-m entioned pow er o f attorney b y the R oyal Netherlands F oreign Office in a telegram dated June 11, 1940 and that he accepts as the authentic and binding texts o f the said pow er o f attorney and o f the documents annexed thereto, the texts which were communicated to him in the D epartm ent’s note o f June 13,1940. The D epartm ent o f State is satisfied that the pow er o f attorney referred to above has been delivered to its representatives in London, is in course o f transm ission to the Department, and presum ably w ill reach this country in due course b y diplom atic pouch from the A m erican E m bassy in London. A ccordingly, such pow er o f attorney m ay be treated as having been exhibited and delivered to the Government o f the U nited States and as having such legal effect as a document so executed w ould have were it physically in the United States. The D epartm ent is further satisfied that the individuals who signed such pow er o f attor ney, which, as stated above, m ay be treated as being now in the possession o f this Department, are P. S. G erbrandy, C. H. W elter, and E. N. van K leffens, who are, respectively, the M inister o f Justice, the M inister fo r the Colonies, and the M inister fo r F oreign A ffairs, o f the R oya l Netherlands G overnm ent; that their signatures thereon are genuine; and that they are duly and legally authorized and em powered to sign such pow er o f attorney on behalf o f the R oya l Netherlands Government. The D epartm ent is also satisfied that such pow er o f attorney is duly authenticated by Jonkheer E . Michiels van Verduynen, the duly accredited E n voy E xtraordin ary and M inister P lenipotentiary o f H er M ajesty the Queen o f the Netherlands to the Court o f St. J a m e s; that his signature thereon is genuine; and that he has fu ll authority to authenticate such pow er o f attorney on behalf o f the R oya l Netherlands Government, tem po rarily residing and exercising its functions in London. The Government o f the U nited States continues to recognize as the Government o f the K ingdom o f the Netherlands the R oya l Netherlands Government, which is tem porarily residing and exercising its functions in L ondon, and continues to recognize Dr. A lexander L oudon as the duly accredited E n voy E xtraordin ary and M inister Plenipotentiary o f the Netherlands to the United States. The Departm ent o f State has taken official cognizance o f the R oya l D ecree o f May 24, 1940 which has been notified to it by the duly accredited M inister o f the Netherlands. The D epartm ent o f State, recognizing Dr. A lexander Loudon as the duly accredited M inister o f the Netherlands to the U nited States, and, having in mind the documents and circum stances above set forth, accepts his authority to operate all accounts and other assets in the United States belonging to the R oya l Netherlands Government. Sincerely yours, F o r the Secretary o f S ta te : A. A. E n closu re: Official translation o f the R oy a l Decree o f M ay 24,1940. B e r l e , J r. A ssistan t S ecreta ry R O Y A L N E T H E R L A N D S L E G A T IO N Netherlands Royal Decree of May 24, 1 9 4 0 R oy a l Decree o f M ay 24, 1940 (recorded in the Netherlands State L aw R ecord o f M ay 24, 1940) containing measures to prevent that p rop erty o f and claims belonging to persons living in the K ingdom o f the Netherlands, notably in the Realm in E urope, will be used in a manner which must be deemed to conflict with the interests o f the country and o f the inhabitants, particularly o f those who remain in the territory occupied by the enemy. W e W ilhelm ina, b y the grace o f God, Queen o f the Netherlands, P rincess o f Orange Nassau, etc., etc., etc. A s submitted by our M inisters o f Justice, o f Colonies and o f F oreign A ffairs, on M ay 24, 1940 No. 1 ; Considering, that it is necessary to take measures in order to prevent that p ro p erty o f and claims belonging to persons, residing in the K ingdom o f the Netherlands, notably in the Realm in E urope, will be applied in a manner, which must be deemed to conflict with the interests o f the country and o f the inhabitants, particularly o f those who reside in the territory occupied b y the enem y; and that it is required to that end, as long as is necessary, to entrust this p rop erty and claims to the State o f the N etherlands; HAVE APPROVED AND ORDERED: A r t ic l e 1. 1. Title to claims against persons, partnerships, companies, corporations, firms, institutions and public bodies, which claims belong to natural or legal persons dom i ciled in the K ingdom o f the Netherlands, as well as to all claims o f the aforesaid persons fo r the delivery o f gold deposited, in so fa r as these claims are in any form w hatsoever capable o f being encumbered, pledged, transferred or sold or the like, outside o f the Realm in E urope, is hereby vested in the State o f the Netherlands, as represented by the R oya l Netherlands Government, tem porarily resident in London and exercising Its functions there, subject always to the provisions o f A rticle 5. 2. The foregoin g is also applicable to all claims resulting from confirmed credits, participation in the capital o f and loans to companies, corporations and firms (regard less o f whether these claims are evidenced by stock certificates, bonds or other securities or com m ercial paper) in so fa r as the aforem entioned claims belong to natural or legal persons within the K in gdom o f the Netherlands and, in so fa r as these claims are in any form whatsoever capable o f being encumbered, pledged, trans ferred or sold, or the like, outside o f the Realm in Europe. 3. The p rop rietary rights vested in the State o f the Netherlands, by virtue o f the provisions o f the preceding paragraphs, shall only be exercised fo r the conserva tion o f the rights o f the form er owners. A r t ic l e 2. 1. E xem pt from the transfer o f ownership, mentioned in the previous article, are those claims, as previously defined, in regard to which p r o o f is presented pursuant to A rticle 3 to the effect that, on M ay 15, 1940, they were the p rop erty o f : a. either Netherlanders or Netherlands subjects or o f subjects o f pow ers not at war with the K in gd om ; b. either legal persons or institutions, dom iciled in the territory o f the K ingdom or in the territory o f pow ers not at war with the K ingdom , provided always that the aforem entioned natural or legal persons and institutions are or were dom iciled before or on that date outside o f the territory o f the K ingdom now occupied by the enemy. 2. Natural persons who have left, after M ay 9,1940 and b efore M ay 15,1940, the territory o f the K ingdom in E urope, otherwise than fo r enemy territory, as well as legal persons which in accordance with the provisions o f the A ct o f A p ril 26, 1940 (State L aw R ecord No. 200), have transferred their seat to another territory o f the K ingdom , shall fo r the application o f this article be deemed to be dom iciled on M ay 15, 1940 outside o f the territory o f the K ingdom occupied by the enemy, on condition that the transfer o f the seat o f the said legal persons has been approved beforehand by our M inister o f Justice, or is subsequently ratified by the G overnor General o f the Netherlands Indies, by the G overnor o f Surinam or by the G overnor o f Curacao. A rticle 3. 1. The G overnor-G eneral o f the Netherlands Indies, the G overnor o f Surinam and the G overnor o f Curacao, each in so fa r as concerns the territory under his gen eral adm inistration, are em powered to make regulations concerning the manner in which the p roof, mentioned in the previous article, must be presented. 2. In so fa r as not covered by the provisions in the previous paragraph, the making o f these regulations shall be effected by our M inister o f Justice. A rticle 4. This decree is also binding fo r the Netherlands Indies, Surinam and Curacao. A rticle 5. 1. Three months after the present em ergency conditions shall in Our judgm ent have ceased to exist, restitution shall be made o f the claims mentioned in A rticle 1 to the form er owners. 2. In deviation from the provisions in the previous paragraph Our Ministers o f Justice and o f Colonies are join tly em powered to make restitution in advance o f the time mentioned in the previous paragraph to the form er owners, provided it be proven to their satisfaction that direct or indirect use o f these claims in behalf o f the enemy is excluded. A r t ic l e 6. This decree becomes operative beginning with the day o f its recording in the State L aw E ecord on this day, M ay 24, 1940. London, M ay 24, 1940 W IL H E L M IN A The M inister o f Justice P. S. G erbrandy The M inister o f Colonies Ch. W elter The M inister o f F oreign A ffairs E. N. van K leffens Issued M ay tw enty-four 1940 The M inister o f Justice P. S. G erbrandy I, Dr. Alexander Loudon, M inister fo r the Netherlands at W ashington, D. C., certify that the above is a true translation o f the official text in the Netherlands language o f the Netherlands E oya l D ecree o f M ay 24, 1940. W ashington, D. C. June 1,1940 A. L oudon, M inister fo r the Netherlands
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