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F ed er a l R eser ve Ba n k o f D allas DALLAS, TEXAS 75222 C i r c u l a r No. 75-57 May 1, 1975 FOREIGN ASSETS CONTROL REGULATIONS MADE APPLICABLE TO SOUTH VIET NAM TO ALL BANKS IN THE ELEVENTH FEDERAL RESERVE DISTRICT: South Viet Nam is be ing a d d e d to th e s c h e d u le of blocked c o u n trie s in Section 500.201 (A) of the F o reig n A ss e ts Control R e g u latio n s, effective A pril 30, 1975. T h is is b e in g a cc o m p lish e d by a m end ing the re g u la tio n s to add South Viet Nam a s a s c h e d u le d c o u n t r y . T h u s , all sections of the r e g u lations w hich now a p p ly to "D esig na te d F o reig n C o u n trie s " a p p ly to South Viet Nam. U n d e r th is action all a cc o u n ts held for natio nals of South Viet Nam a r e b lo c k e d . H ow ever, all p e rs o n a l a cc o u n ts of South Vietnam ese diplomats in the United S ta te s , inc lu d in g a c c o u n ts of the staff of the South V ietnamese E m bassy a n d m e m b e rs of South Vietnamese Mission to the United Nations, a r e in fact licensed as u n b lo c k e d a cc o u n ts u n d e r Section 500.505 of the r e g u l a tio n s . F u r t h e r , a cc o u n ts of South V ietnamese diplomats in the a u th o riz e d t r a d e t e r r i t o r y a r e licensed as a c c o u n ts of u n b lo c k e d nationals u n d e r S e c tion 500.506 u n le s s the h o ld e r of the acc o u n t h a s specific re a so n to be lie v e s u c h p e r s o n s h a v e acted o r p u r p o r t e d to a ct for o r on be h alf of o r for the benefit of South Viet Nam o r a national t h e r e o f afte r the effective d a te . S im ila rly , all a cc o u n ts of South Vietnam ese in d iv id u a ls r e s i d e n t in th e U . S . o r th e a u th o r iz e d t r a d e t e r r i t o r y as of A pril 30, 1975, a r e also un blo c k e d u n le s s t h e r e is specific re a so n to b e lie v e th a t s u c h p e r s o n s ha ve acted o r p u r p o r t e d to a ct for o r on b e h a lf of o r for the benefit of South Viet Nam o r a national th e re o f a fte r th e effective d a te . Official a c c o u n ts of th e South Vietnam ese Em bassy a n d C o n s u la r Offices in the U . S . and of the South V ietnam ese Mission to the United Nations a r e b lo c k e d , a n d a r e not e ntitled to the p ro v is io n s of Section 500.505. Specific lic e nse s will be is s u e d h e r e a f t e r a u th o r iz in g a p p r o p r i a t e d e b its to th e s e a c c o u n t s . This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) - 2 - Specific licenses will also be is su e d in a p p r o p r i a t e c a s e s u n b lo c k in g p e rs o n a l a c c o u n ts of South Vietnam ese nation als who h e r e a f te r e s ta b lis h r e s i d e n c e in the United States o r the a u th o r iz e d t r a d e t e r r i t o r y . T he r e g u la tio n s a r e also b e in g am ended to add a g e n e r a l license (500.531) a u th o r iz in g until May 30, 1975, p a y m e n ts from blocked South V ietnamese a cc o u n ts in connection with c h e c k s a n d d r a f ts d r a w n o r is su e d p r i o r to A pril 30, 1975, p ro v id e d : (A) the amount in volved in an y one pay m ent does not exce e d $500; (B) the c h e c k o r d r a f t w as in the p r o c e s s of collection by a domestic b a n k on o r p r i o r to the effective date; a n d (C) no pa y m e nts to South Viet Nam o r nationals th e r e o f a r e a u th o riz e d e x c e p t by d e p o sit into a blocked a c c o u n t in a domestic b a n k . A second g e n e r a l license (Section 500.532) is b e in g a d d e d a u t h o r izing the completion on o r befo re May 4, 1975, of p u r c h a s e s o r s a le s made p r i o r to April 30, 1975, of s e c u r i t i e s p u r c h a s e d or sold for th e a c c o u n t of South Vie tnamese n a tio n a ls, p ro v id e d th a t a n y p r o c e e d s a r e c r e d ite d to a blocked accoun t in the name of the p e r s o n for w hose a c c o u n t the s ale was made a n d an y s e c u r i t i e s p u r c h a s e d a r e held in s u c h a n a cc o u n t. Section 500.204(A) (I) is a lso be in g am ended to a p p ly to goods of South Vietnam ese o r i g i n . Section 500.322 is b e ing am ended to de le te Cambodia and Viet Nam from th e a u th o r iz e d t r a d e t e r r i t o r y . Technical am endm ents a r e b e ing made in o th e r sec tions of the r e g u la tio n s to reflect the add itio n of South Viet Nam. R equ ests for c opies of the a m e nd ed r e g u la tio n s should be a d d r e s s e d to the S e c r e t a r y 's Office of th is B ank. R eq u e s ts will be h o n o re d as soon a s the am en ded r e g u la tio n s a r e a v a ila b le . Sincerely y o u rs , T . W. P l a n t F i r s t V ice P r e s i d e n t
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