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FEDERAL RESERVE BANK OF DALLAS September 18, 1941 To All Banking Institutions, and Others Concerned, in the Eleventh Reserve District: As an aid to the solution of questions which have been presented in con nection with the compliance by individuals and institutions with the require ments of Executive Order No. 8389 and section 130.4 of the Treasury Regula tions, relating to the segregation of blocked accounts and the filing of foreign nationals’ property reports on Form TFR-300, we submit the following out line of some of the provisions of the Order and the Treasury Regulations. EFFECTIVE DATE OF THE EXECUTIVE ORDER The Executive Order became effective with respect to different countries on different dates. The earliest date is April 8, 1940, and the latest date is June 14, 1941. Section 3 of the Order specifies the intermediate dates upon which the Order became effective as applied to the particular countries listed in that section. FOREIGN COUNTRIES TO WHICH THE ORDER AND REGULATIONS APPLY In so far as it relates to blocked accounts, the Order applies only to the particular countries listed in section 3 and to “ nationals” of those countries. The Treasury Regulations which require the filing of property reports on Form TFR-300 relate, however, to all foreign countries and “ nationals” thereof, whether or not such countries are specifically designated in the Ex ecutive Order. DEFINITION OF A NATIONAL A “ national” of a foreign country, within the meaning of the Executive Order and the Treasury Regulations, is : (See paragraph E, section 5 of the Executive Order) (1) Any person, even though he is a citizen of the United States, who has been domiciled in, or a resident of, a foreign country at any time on or since the effective date of the Order with respect to that country. (2) Any person, wherever domiciled or resident, who is or has been, since the effective date of the Order, a subject or citizen of a foreign country. (3) Any partnership, corporation, association or other organization, which is organized under the laws of a foreign country or which, since the effec tive date of the Order, has (a) had its principal place of business in a foreign country, or (b) been controlled, either directly or through the control of any substantial part of its stock, shares, bonds, notes or other securities or obligations, by a foreign country or by one or more nationals of a foreign country. (4) Any person who, since the effective date of the Order, has acted or pur ported to act directly or indirectly for the benefit or on behalf of any foreign country or national thereof. In case of doubt, any person who there is reasonable cause to believe is a “ national” as defined in the Executive Order is to be deemed a national. DISTINCTION BETW EEN DOMI CILE AND RESIDENCE A person’s domicile is the place which he has selected and established as his permanent residence. A person may reside at one or more places other than the place of his domicile, and it is accordingly possible for a person domi ciled in the United States to be a resident of a foreign country, and vice versa. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) The distinction is between a place of temporary residence, from which the individual intends ultimately to return to his place of domicile, and a place of permanent residence which is the individual’s domicile and where he is either presently living or expects to return after a temporary residence elsewhere. GENERALLY LICENSED NATIONALS ( See General Licenses Nos. 42 and 68, also General Ruling No. 4) (1) Every United States citizen who is now residing only in the United States, and who falls within the definition of a foreign national only because he has resided or has had his domicile in a foreign country on or since the effective date of the Order, is a “ generally licensed national.” (2) Every individual who falls within the definition of a foreign national only because he is or has since the effective date of the Order been a subject or citizen of a foreign country, is likewise a “ generally licensed national” if he has been domiciled in the United States and has resided only in the United States at all times since June 17, 1940, or since the-effective date of the Order as applied to the country of which he is a citizen or subject, whichever date is the earlier. (3) Every individual who falls within the definition of a foreign national only because he is or has since the effective date of the Order been a subject or citizen of China or Japan, is a “ generally licensed national” if he has resided only in the United States since June 17, 1940, regardless of whether or not his domicile is within the United States. It is to be noted that aliens may be “ generally licensed nationals” within either of the classifications numbered 2 and 3 above. CASES IN WHICH FORM TFR-300 NEED NOT BE FILED (1) No report on Form TFR-300 is required unless the total property to be reported has a value of $1,000 or more, or the property includes items of the type specified in section I I - F - (1) of Public Circular No. 4, which refers to patents, trademarks, etc. (2) No property report on Form TFR-300 is required (regardless of the value or the nature of the property) if the individual whose property is concerned is a “ generally licensed national” within any one of the classes defined in paragraphs 1, 2, and 3 of the foregoing subdivision captioned “ Generally Licensed Nationals.” The foregoing outline is not, of course, a complete summary of all the provisions of the Executive Order and the Treasury Regulations. It is in tended only to serve as a guide to the rules and regulations which are of general application. Yours very truly, R. R. GILBERT President
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