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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States p Circular No. 2 3 3 5 , December IS, 1941 "I I Reference to Circulars Nos. 2262, 2269, 2271, 2274, 2277, 2281, 2292, 2293, 2300, 2301, 2302, 2306, 2309, 2314, 2319, L 2321, 2326, 2327, 2328, 2329, 2331, 2332 and 2334. J Executive Order No. 8389, as Amended, and Regulations Issued Pursuant Thereto, Relating to Transactions in Foreign Exchange, Etc. To all Banking Institutions, and Others Concerned, in the Second Federal Reserve District: For your information we quote below the text of a telegram received today from the Treasury Department: The following is the text of General License No. 68A and press release issued in connection therewith : CODE OF FEDERAL REGULATIONS Title 31—Money and Finance: Treasury Chapter I—Monetary Offices, Department of the Treasury P a r t 131—General Licenses under Executive Order No. 8389, April 10, 1940, as amended, and Regulations issued pursuant thereto. Section 131.68A TREASURY DEPARTMENT O f f i c e o f t h e Secretary j~. k 1S 1Q41 G E N E R A L L I C E N S E N O . 68A U N D E R E X E C U T I V E O R D E R N O . 8389, A P R I L 10, 1940, A S AMENDED, AND REGULATIONS ISSUED PURSUANT THERETO, RELATING TO TRANSACTIONS IN FOREIGN EXCHANGE, ETC.* (1) A general license is hereby granted: (a) licensing as a generally licensed national any individual who is a national of Japan and who has been residing only in the Continental United States at all times on and since June 17, 1940, and (b) licensing as a generally licensed national any partnership, association, corporation or other organization within the Continental United States which is a national of Japan solely by reason of the interest therein of a person or persons licensed as generally licensed nationals pursuant to this general license. (2) This general license shall not be deemed to license as a generally licensed national: (a) any individual, partnership, association, corporation or other organization on the premises of which the Treasury Department maintains a representative or guard or on the premises of which there is posted an official Treasury Department notice that the premises are under the control of the United States Government, or (b) any bank, trust company, shrpping concern, steamship agency, or insurance company, or * Part 131;—Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; Ex. Order 8389, April 10, 1940, as amended by Ex. Order 8785, June 14, 1941, Ex. Order 8832, July 26, 1941, and Ex. Order 8963, December 9, 1941; Regulations, April 10, 1940, as amended June 14, 1941, and July 26, 1941. (c) any person who, on or since the effective date of the Order, has represented or acted as agent for any person located outside the Continental United States or for any person owned or controlled by persons located outside the Continental United States, or (d) any person who on or since the effective date of the Order has acted or purported to act directly or indirectly for the benefit or on behalf of any blocked country, including the government thereof, or any person who is a national of Japan by reason of any fact other than that such person has been domiciled in, or a subject or citizen of, Japan at any time on or since the effective date of the Order. (3) A report on the appropriate series of Form TFR-300 shall be filed with the appropriate Federal Reserve Bank within 30 days after the date hereof with respect to the property interests of every person licensed herein as a generally licensed national if the total value of the property interests to be reported is $1,000 or more. (4) Every business enterprise licensed herein as a generally licensed national shall also file with the appropriate Federal Reserve Bank within 30 days after the date hereof an affidavit setting forth the information required by Form TFBE-1, if the total value of all property interests of such business enterprise is in excess of $5,000. (5) Banking institutions within the United States effecting payments, transfers or withdrawals in excess of $1,000 during any month from the account of any person licensed as a generally licensed national hereunder, shall file promptly with the appropriate Federal Reserve Bank a report showing the details of such transactions. (6) This general license shall not authorize any transaction which, directly or indirectly, substantially diminishes or imperils the assets within the Continental United States of any national of Japan or otherwise prejudicially affects the financial position of such national within the Continental United States. (7) As used in this general license, the term "business enterprise" shall mean any individual proprietorship, partnership, association, corporation or other organization engaged in commercial or other business activities within the Continental United States. E. H. FOLEY, JR. Acting Secretary of the Treasury. TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, December 15, 1941 PRESS SERVICE The Treasury Department today further relaxed to some extent and under appropriate safeguards the tight restrictions which had been placed upon Japanese residing in this country. It will be remembered that on the outbreak of war the Treasury, as a precautionary measure, placed a complete stoppage on all Japanese financial and commercial transactions and took custody of many Japanese enterprises. On December 11, the Treasury issued regulations governing living expenses and wages for Japanese nationals in the United States and regulations governing Japanese nationals engaged in the production, marketing, and distributing of food and agricultural products. The general license issued today by the Treasury unblocks the accounts of Japanese nationals who have resided continuously within the Continental United States since June 17, 1940 and permits business enterprises within the Continental United States owned and controlled by such Japanese nationals to continue to operate, except in those cases in which Treasury representatives are maintained on the premises or an official Treasury notice is posted indicating that such premises are under Government control. It is anticipated that Treasury representatives and posted notices will be removed from the premises of many Japanese enterprises in which they are now maintained, thus allowing such enterprises to resume normal operations under such general license. It is further anticipated that special business operating licenses will be issued to many Japanese enterprises in which Treasury representatives are continued to be maintained allowing such enterprises to operate under Government surveillance. Representatives in this country of concerns located abroad or owned and controlled by persons located abroad are excluded from the privileges of the general license. The Japanese nationals who are given the benefits of today's license are subjected to certain reporting requirements and other restrictions which will constitute safeguards against the abuse of such benefits. Additional copies of this circular will be furnished upon request. ALLAN SPROTJL, President.
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