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FEDERAL RESERVE BANK OF NEW YORK Fiscal A g e n t of the United States r Circular No. 2684. September 3, 1943 " 1 L Reference to Circulars Nos. 2632 and 2683. J FOREIGN FUNDS CONTROL To all Banking Institutions, and Others Concerned, in the Second Federal Reserve District: For your information we quote below the text of General Ruling No. 11, as amended, dated September 3, 1943, and the text of a press release regarding the ruling, issued by the Treasury Department: TREASURY DEPARTMENT Foreign Funds Control September 3, 1943 GENERAL RULING NO. 11, AS AMENDED UNDER EXECUTIVE ORDER NO. 8389, AS AMENDED, EXECUTIVE ORDER NO. 9193, SECTIONS 3(a) AND 5(b) OF THE TRADING W I T H T H E ENEMY ACT, AS AMENDE!? BY T H E FIRST W A R POWERS ACT, 1941, RELATING TO FOREIGN FUNDS CONTROL.* General Ruling No. 11 is hereby amended to read as f o l l o w s : REGULATIONS RELATING TO TRADE OR COMMUNICATION AN ENEMY NATIONAL. WITH OR BY ( 1 ) Trade and Communication with an Enemy National Prohibited. Unless authorized by a license expressly referring to this general ruling, no person shall, directly or indirectly, enter into, carry on, complete, perform, effect, or otherwise engage in, any trade or communication with an enemy national, or any act or transaction which involves, directly or indirectly, any trade or communication with an enemy national. (2) A c t s and Transactions by an Enemy National Prohibited. Unless authorized by a license expressly referring to this general ruling, no enemy national w h o is within the United States shall, directly or indirectly, enter into, carry on, complete, perform, effect, or otherwise engage in, any financial, business, trade, or other commercial act or transaction. ( 3 ) Certain Transactions Licensed Under Section 3 ( a ) . Every act or transaction prohibited by section 3 ( a ) of the T r a d i n g with the enemy A c t , as amended, is hereby licensed thereunder unless such act or transaction is prohibited b y paragraph (1) or paragraph ( 2 ) hereof or otherwise prohibited pursuant to section 5 ( b ) of that A c t and not licensed by the Secretary of the Treasury. Attention is directed to the fact that the General License under section 3 ( a ) of the A c t , issued b y the President on December 13, 1941, does not license any act or transaction not authorized hereunder. * Appendix A;—Sec. 3(a), 40 Stat. 412; Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; 55 Stat. 838; Ex. Order 8389, April 10, 1940, as amended by Ex. Order 8785, June 14, 1941, Ex. Order 8832, July 26, 1941, Ex. Order 8963, Dec. 9, 1941, and Ex. Order 8998, Dec. 26, 1941; Ex. Order 9193, July 6, 1942; Regulations, April 10, 1940, as amended June 14, 1941, and July 26, 1941. (4) Definitions. instructions, etc.: As used in this general ruling and in any other rulings, licenses, (a) The term "enemy national" shall mean the following: (i) The Government of any country against which the United States has declared war (Germany, Italy, Japan, Bulgaria, Hungary, and Rumania) and any agent, instrumentality, or representative of the foregoing Governments, or other person acting therefor, wherever situated (including the accredited representatives of other governments to the extent, and only to the extent, that they are actually representing the interests of the Governments of Germany, Italy, and Japan and Bulgaria, Hungary, and Rumania); (ii) The government of any other blocked country having its seat within enemy territory, and any agent, instrumentality, or representative thereof, or other person acting therefor, actually situated within enemy territory; (iii) Any individual within enemy territory, except any individual who is with the armed forces of any of the United Nations in the course of his service with such forces or who is accompanying such armed forces in the course of his employment by any of the Governments of the United Nations or organizations acting on their behalf; (iv) Any partnership, association, corporation or other organization to the extent that it is actually situated within enemy territory; ( v ) A n y person whose name appears on The Proclaimed List of Certain Blocked Nationals, and any person to the extent that he is acting, directly or indirectly, for the benefit or on behalf of any such person; provided that no person so acting shall be deemed to be an enemy national if he is acting pursuant to license issued under the Order or expressly referring to this general ruling; and (vi) Any person to the extent that he is acting, directly or indirectly, for the benefit or on behalf of an enemy national (other than a member of the armed forces of the United States captured by the enemy) if such enemy national is within any country against which the United States has declared w a r ; provided that no person so acting shall be deemed to be an enemy national if he is acting pursuant to license issued under the Order or expressly referring to thfs general ruling. ( b ) The term "enemy territory" shall mean the following: (i)' The territory of Rumania; and Germany, Italy, Japan, Bulgaria, Hungary, and (ii) The territory controlled or occupied by the military, naval, or police forces or other authority of Germany, Italy, or Japan. The territory so controlled or occupied shall be deemed to be the territory of Albania; Austria; that portion of Belgium within continental Europe; Bulgaria; that portion of Burma occupied by Japan; that portion of China occupied by Japan; Czechoslovakia; Danzig; that portion of Denmark within continental Europe; Estonia; that portion of France within continental Europe, incuding Monaco and Corsica; French Indo-China; Greece; H o n g K o n g ; Hungary; Latvia; Lithuania; Luxembourg; British Malaya; that portion of the Netherlands within continental Europe; that portion of the Netherlands East Indies occupied by Japan; N o r w a y ; that portion of the Philippine Islands occupied by Japan; Poland; Rumania; San Marino; Thailand; that portion of the Union of Soviet Socialist Republics ocupied by Germany; Yugoslavia; and any other territory controlled or occupied by Germany, Italy or Japan. ( c ) The term " T h e Proclaimed List of Certain Blocked Nationals" shall mean The Proclaimed List of Certain Blocked Nationals, as amended and supplemented, promulgated pursuant to the President's Proclamation of July 17, 1941. ( d ) The term "trade or communication with an enemy national" shall mean any form of business or commercial communication or intercourse with an enemy national after March 18, 1942, including, without limitation, the sending, taking, obtaining, conveying, bringing, transporting, importing, exporting, or transmitting, or the attempt to send, take, obtain, convey, bring, transport, import, export, or transmit, (i) Any letter, writing, paper, telegram, cablegram, wireless message, telephone message, or other communication, whether oral or written, of a financial, commercial, or business character; or (ii) Any property of any nature whatsoever, including any goods, wares, merchandise, securities, currency, stamps, coin, bullion, money, checks, drafts, proxies, powers of attorney, evidences of ownership, evidences of indebtedness, evidences of property, or contracts; directly or indirectly to or from an enemy national after March 18, 1942; provided, however, that with respect to any government or person" becoming an enemy national after March 18, 1942, the date upon which such government or person became an enemy national shall be substituted for the date March 18, 1942. RANDOLPH PAUL Acting Secretary of the Treasury (OVER) TREASURY DEPARTMENT Washington Press Service No. 38-27 FOR IMMEDIATE RELEASE Friday, September 3, 1943 The Treasury Department today issued a revision of its regulations relating to trade and communication with enemy nationals. The revised regulations are in the form of an amendment to General Ruling No. 11 and in essence constitute a clarification of the existing regulations. Under the regulations a special license is required to lawfully engage in any business or commercial communication or intercourse with an enemy national or to effect any act or transaction involving such communication or intercourse. Unlicensed trade or communication with an enemy national is unlawful under Sections 3(a) and 5 ( b ) of the Trading with the enemy Act, as amended. The term "enemy national" includes any person within any enemy country or enemy occupied territory and any person whose name appears on The Proclaimed List of Certain Blocked Nationals. The regulations also include within the category of enemy nationals any other person to the extent that he is acting without a license for or on behalf of an enemy national who is within an enemy country or whose name appears on The Proclaimed List. Treasury officials emphasized that subjects of enemy and enemy occupied countries who are not within enemy territory are not by reason of their citizenship alone enemy nationals within the meaning of the regulations. It was also pointed out that the occupying forces of the United Nations and civilians accompanying them who are within enemy territory in the course of their duties are not enemy nationals. The regulations strike at any act or transaction of a financial, business, trade or commercial character which involves any trade or communication with an enemy national. In substance, the regulations are directed at all transactions included within the definition of the term "to trade" contained in Section 2 of the Trading with the enemy Act, as amended. Treasury officials called attention to the fact that the regulations prohibit certain transactions which are not prohibited by the freezing order. In this connection, Treasury officials stated that a transaction on behalf of an enemy national who is within an enemy country or whose name appears on The Proclaimed List which is prohibited by the freezing order may lawfully be effected if licensed under the freezing order, unless it also involves communication with any enemy national. On the other hand, a transaction which is within the purview only of the regulations or involves communication with any enemy national, may lawfully be effected only pursuant to a license which specifically refers to General Ruling No. 11. Treasury officials noted that compliance with the regulations did not dispense with the necessity of complying with relevant censorship regulations. Additional copies of this circular will be furnished upon request. ALLAN SPROUL. President.