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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.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102