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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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