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Treasury FOREIGN Department FUNDS October GENERAL RULING UNDER EXECUTIVE SECTIONS FIRST 3(a) WAR 1. Unless ORDER and POWERS 5(b) ACT, Treasury note, in or cause to to believe Germany 2. or that it or to the whose tionals, of other or hereby any The draft, security from suant check, checks, the ruling, the transfer, draft, been within, BY THE drafts, Secretary presentation, protest bill of of, or time or there Japan, was the endorseother promissory if is such in- reasonable Italy, occupied etc. of any exchange, is p r o h i b i t e d , within, Germany, w h i c h at a n y respect except to to on T h e draft, payment checks, bill provided payment any person Proclaimed of instruction, that the to sending, bill of such drafts, Bulgaria, or controlled which authorized. No. who within is of 11, as a m e n d e d , promissory is Germany Certain paragraph instrument is etc. Ruling List exchange, to thereof the U n i t e d terms and and any censes any transaction a specified mailing, exchange, 92 are with appears authorized, (b). to in of has AMENDED, AMENDED or Na- note, transfer 1 hereof applies, stamped prohibited Blocked by or marked General to Ruling 5A. check, and AS FUNDS CONTROL.* instruction 1945. NO. 9193, A S ACT. dealings general been ORDER ENEMY authorization check, territory sender, name indica t e c1 early No. has any certain payment 2, THE N o t w i t h s t a n d i n g t h e p r o v i s i o n s of G e n e r a l order is this any other transactions return Japan or WITH other AMENDED, EXECUTIVE payment, to, AS 1945 Japan. Certain (a) the or 5A, TO FOREIGN to or to September R u m a n i a or H u n g a r y , by respect license respect order, prior TRADING collection, with transfer strument, a NO. AMENDED, RELATING referring acceptance, dealing THE with by expressly OF 1941, Prohibition authorized ment, NO. 8389, A S CONTROL 5, other States to conditions general blocked exporting, promissory a blocked of license referred country to or (c) P e r s o n s d e p a r t i n g from h e r e b y a u t h o r i z e d to c a r r y : in or note, General otherwise foreign country may Licenses hereafter Section be Nos. issued 1 of taking currency, 49, (ii) United States foreign currencies. any pur- 52 70 li- Order 50 any expressly with respect countries. the United States for blocked countries (i) t r a v e l e r s c h e c k s and c h e c k s d r a w n on the T r e a s u r e r United States provided s u c h c h e c k s a r e i s s u e d in t h e n a m e p e r s o n c a r r y i n g them; all or effected which the of currency in d e n o m i n a t i o n s FRED Secretary of $20 M. VINSON of the or of of the the less and Treasury • A p p e n d i x A ; - S a c . 3 ( a ) , 40 Stat. 4 1 2 ; S e c . 5 ( b ) , 40 S t a t . 4 1 5 and 966; Sec. 2. 4 8 Stat. 1; 5 4 S t a t . 179; 55 S t a t . 838; E x . O r d e r 8 3 8 9 . A p r i l 10. 1940. at e m e n d e d by E x . O r d e r 8 7 8 5 . June 14. 1941. E x . O r d e r 8 8 3 2 . J u l y 26. 1 9 4 1 . E x . Order 8 9 6 3 . D e c . 9. 1 9 4 1 . and E x . Order 8998. D e c . 26. 1 9 4 1 ; E x . Order 9193. J u l y 6. 1 9 4 2 . aa amended by E x . Order 9 5 6 7 . June 8. 1945; R e g u l a t i o n * . A p r i l 10, 1940. aa e m e n d e d J u n e 14. 1 9 4 1 . and J u l y 26. 1941. TREASURY DEPARTMENT Washington FOR R E L E A S E , MORNING NEWSPAPERS F r i d a y , October 5, 1945 Press Service No. V - 7 5 France has been almost c o m p l e t e l y released from the Treasury D e p a r t m e n t ' s freezing c o n t r o l s , Secretary V i n s o n d e c l a r e d today. At the same time the S e c r e t a r y a n n o u n c e d the lifting of the T r e a s u r y ' s i m p o r t and e x p o r t c o n t r o l s o v e r c h e c k s , d r a f t s , b i l l s of e x c h a n g e and other payment instructions being sent t o o r from blocked countries. As a r e s u l t of t h e s e t w o m a j o r s t e p s in t h e T r e a s u r y ' s d e f r o s t i n g p r o g r a m t h e r e are n o f r e e z i n g r e s t r i c t i o n s on c u r r e n t transactions with France. T r a d e b e t w e e n F r a n c e and any u n b l o c k e d c o u n t r y may now be freely financed through the U n i t e d States. Remitt a n c e s m a y be m a d e to France in u n l i m i t e d a m o u n t s , for any p u r p o s e , and through any a v a i l a b l e c h a n n e l s , including the s e n d i n g of c h e c k s , d r a f t s , or money orders. Powers of attorney and p r o x i e s may be freely S e c u r i t i e s may be e x p o r t e d to F r a n c e a l t h o u g h the sent to F r a n c e . importation into the U n i t e d States of most securities continues to be c o n t r o l l e d under G e n e r a l R u l i n g N o . 5 in order to p r e c l u d e the disposal of loot in our markets. T o p r e v e n t the r e l e a s e of p r o p e r t y in the U n i t e d S t a t e s w h i c h is held in French names, but is actually enemy owned, all a s s e t s in w h i c h persons in F r a n c e have an interest will r e m a i n frozen u n t i l the G o v e r n m e n t of F r a n c e has had an opportunity to check the b e n e f i cial ownership. Once the French G o v e r n m e n t c e r t i f i e s t h a t such assets are in fact French owned, they will a l s o b e released from the freezing controls. In the m e a n t i m e such a s s e t s may be supervised and m a n a g e d by their owners. A s s e t s b e l o n g i n g to F r e n c h n a t i o n a l s w h o a r e n o t w i t h i n France or any other blocked country are effectively unblocked without c e r t i f i c a t i o n except that property b e l o n g i n g t o corporations and other o r g a n i z a t i o n s w h e r e v e r located w h i c h are owned by p e r s o n s in F r a n c e will c o n t i n u e to be blocked until certified by the French Government. S e c r e t a r y V i n s o n h a s been informed by F r e n c h M i n i s t e r of F i n a n c e P l e v e n that A m e r i c a n p r o p e r t y in F r a n c e w i l l i m m e d i a t e l y be u n b l o c k e d and that F r e n c h exchange control r e s t r i c t i o n s on transfers between France and the United States will be liberalized. This orderly defrosting was made possible by the successful c o n c l u s i o n of n e g o t i a t i o n s b e t w e e n the T r e a s u r y D e p a r t m e n t and the F r e n c h M i n i s t r y of F i n a n c e . In a letter to Secretary V i n s o n F i n a n c e M i n i s t e r P l e v e n h a s e x p r e s s e d h i s c o n v i c t i o n that U n i t e d S t a t e s freezing controls have " e f f e c t i v e l y prevented the enemy from looting F r e n c h assets in the U n i t e d S t a t e s during the war to the great detriment of the common enemy and to the advantage of the French p e o p l e . " - 2 - In order that all interested persons may be fully informed of the u n d e r s t a n d i n g with r e s p e c t to d e f r o s t i n g , S e c r e t a r y V i n s o n t o d a y r e l e a s e d the c o m p l e t e text of t h e l e t t e r s e x c h a n g e d w i t h M. P l e v e n . Similar countries. tries will negotiations It is anticipated shortly be are under way with that d e f r o s t i n g other programs liberated for such coun- announced. T h e a b o v e c h a n g e s result from the i s s u a n c e of G e n e r a l Lic e n s e N o . 92 and the e x t e n s i v e a m e n d m e n t of G e n e r a l R u l i n g N o . 5A. T r e a s u r y o f f i c i a l s pointed out that as a result of the change in the R u l i n g c h e c k s and drafts other than those which prior to V - J Day h a v e b e e n w i t h i n e n e m y territory, or territory w h i c h has b e e n occupied by the enemy, m a y again be freely imported into the United States. Such i t e m s m a y a l s o be c o l l e c t e d and p a i d if l i c e n s e d by the T r e a s u r y . While the freezing Order prohibits the e x p o r t a t i o n of checks, d r a f t s , or s e c u r i t i e s to blocked c o u n t r i e s , these items m a y n o w be e x p o r t e d t o any b l o c k e d c o u n t r y , such as F r a n c e , to w h i c h a general l i c e n s e has b e e n granted covering their exportation. T h e c o n t i n u a t i o n of the p r o h i b i t i o n against the c o l l e c t i o n or payment of c h e c k s and drafts which prior to V - J Day have been w i t h in enemy t e r r i t o r y or territory w h i c h has been occupied by the enemy w i l l r e n d e r v a l u e l e s s any such i n s t r u m e n t s w h i c h h a v e b e e n i s s u e d under d u r e s s o r otherwise looted by the aggressor nations. T h e Treasu r y a n n o u n c e d that its p o l i c y w i l l be to refuse to license the coll e c t i o n or p a y m e n t of such items. It w a s p o i n t e d out however that the a m e n d m e n t to G e n e r a l R u l i n g No. 5A in general authorizes the return of such items to the foreign sender provided they are stamped to i n d i c a t e that their payment is p r o h i b i t e d under the G e n e r a l R u l i n g . -00O00- Attachment To Press R e l e a s e No. V-75 L E T T E R F R O M F R E N C H M I N I S T E R OF F I N A N C E P L E V E N T O S E C R E T A R Y OF TREASURY VINSON THE (Trans la t i o n ) September 26, My dear Mr. 1945 Secretary: In recent d i s c u s s i o n s held b e t w e e n r e p r e s e n t a t i v e s of my Department and members of the United S t a t e s Treasury, it was indicated that you are now prepared to consider a substantial relaxation of the American regulations governing the freezing of French assets. During these discussions, it was emphasized that in the exercise of its control over French assets in the United States your Department has been inspired by the principles and aims which were solemnly set forth in the U n i t e d N a t i o n s D e c l a r a t i o n of J a n u a r y 5, 1 9 4 3 , and R e s o l u t i o n No. VI of the United Nations Monetary and Financial Conference, principles and aims which, as you know, the French Government has endorsed. A p p l i c a t i o n of those principles by your D e p a r t m e n t has e f f e c t i v e l y prevented the enemy from looting French assets in the U n i t e d States during the war to the great detriment of the common enemy and to the advantage of the French people. I have studied the draft of a G e n e r a l License which has been t r a n s m i t t e d to me by your r e p r e s e n t a t i v e s . I confirm in connection therewith my agreement on the following points: 1. The Ministry of Finance will assume the responsibility for carrying out the procedure of c e r t i f i c a t i o n provided for by the license. No property will be certified until the French Government has ascertained, by an appropriate investigation, that the property is not excluded from the benefits of the license. M o r e o v e r , in regard to certain accounts which may from time to time be specifically designated by your D e p a r t m e n t , my D e p a r t m e n t will consult with yours prior to making the c e r t i f i c a t i o n provided for in the proposed license. 2. No transaetion wi 11 be cense in question: effected or authorized under the li- a) If such transaction would facilitate the completion t r a n s a c t i o n s w h i c h might further the i n t e r e s t s of enemy or of persons acting upon behalf of an enemy; of an b) If such transaction would change the status of blocked property in the United States in which an enemy has an interest, direct or indirect. 3. As to the property of any legal entity (corporations, associations, e t c . ) established in accordance with the laws of France in w h i c h p e r s o n s not resident in the franc zone have an i n t e r e s t , and which by virtue of that fact would have, under American regulations, - the nationality effected of without another first country, complete Bulgaria, Hungary of said interests. authorities legal residing in 4. ferred in which France If the equivalent will may be the 5. or extent, found in and, to such at the assets the two Departments will and controlling all in States United potential and of will any as jeopardizing take which all our might States allow in directly regard which or by property held it h a s reason indirect. 6. have of The have Ministry franc zone tions to who any of open to discharge essary, it will arose to of such will agency, when persons to or informed yours the program French to to in- with name with in in direct all the French in- United of action and creditors which nor- interest. residing law owe or firm they assets, American persons individual particular interest, their French United exchange interest. means authorize the in hold war, protect violated such the certain to an accorded obligations authorize which have a enemy furnish during them having governmental States, might protection Finance without likewise manner will fully by such directly under t h e r e is a n y existing facilities vigorous France, States criminals utilized in in to both Departments being and view of two assets a yours keep institutions deprived been task will enemy the this a owner. assets war Departments in will an conceal but equivalent with jurisdiction undertaken United its original our its designate, financial interests that which temporarily would the French circumstances been in which As a result out before means from your held enemy of trans- was or the is or deprive the two not property efforts other to our already Department in end any persons mistake, may other to prevent agents enemies, of particular, American carry has order each it you underground to or believe concerning property other mally My to in In financial controlled formation of and and grant this to which economic to States To required Government, eliminate will e n e m i e s or t h e i r information French peace. French France. joint enemy necessary to make German France the the countries subject or in of steps two person all and leaders by property or by such which as such acquirer Our the account to w h i c h of in French of interest or request, account investigating and its the cent. inadvertently other however, an control property held be Japan, or however, enemy is Germany, certify interest will interested ownership there r e s t o r e d to the transferred, to of of t h e of the per license will be consulted only in twenty-five in w h i c h Department being certification national responsibility, than American be no no Government involved proportion less property under own the is is the r e a s o n s of s i m p l i f i c a t i o n , w i l l , on their entity country, from that Rumania For - blocked obtaining assurance or 2 are dollar in due purchase in the and, dollars the obligaUnited if nec- for that purpose . 7. assets their the It is u n d e r s t o o d in France income, French which shall within the Government, would be that be nationals authorized framework without discriminatory of the in of to the United administer the controls application relation to States such and of holding assets and regulations measures nationals of to any of them other country. The of the sequestration France United http://fraser.stlouisfed.org/ a n y t h a t Federal Reserve Bank of St. Louis on property, States still measures rights have been remain will and imposed during interests removed in all immediately be the German occupation belonging to important particulars terminated. nationals Except of and for p a r t i c u l a r c a s e s in w h i c h the F r e n c h a u t h o r i t i e s h a v e r e a s o n to b e lieve that the m a i n t e n a n c e of c o n t r o l is n e c e s s a r y to p r e v e n t t r a n s f e r s of a s s e t s in w h i c h a n e n e m y m i g h t h a v e a n i n t e r e s t or to a v o i d the c o m p l e t i o n of t r a n s a c t i o n s w h i c h m i g h t be d i r e c t l y or i n d i r e c t l y to the b e n e f i t of a n e n e m y , the F r e n c h a u t h o r i t i e s , w i t h regard to a s s e t s in the franc zone of n a t i o n a l s of the U n i t e d S t a t e s , w i l l also a b o l i s h a l l r e s t r i c t i o n s i m p o s e d for the p u r p o s e of c o n t r o l l i n g p r o p e r t y in w h i c h a n e n e m y interest might h a v e e x i s t e d . C o n c e r n i n g t r a n s f e r s f r o m the f r a n c z o n e to the U n i t e d S t a t e s the M i n i s t r y of F i n a n c e i n t e n d s to p u r s u e a p o l i c y of l i b e r a l i z i n g e x c h a n g e c o n t r o l r e s t r i c t i o n s to the fullest e x t e n t that F r e n c h dollar resources will permit. In this r e s p e c t the M i n i s t r y of F i n a n c e is n o w p r e p a r e d to a u t h o r i z e c u r r e n t p a y m e n t s from the franc zone to the U n i t e d S t a t e s ( p a y m e n t of p r o f i t s , d i v i d e n d s , i n t e r e s t , r o y a l t i e s , p a y m e n t s for p u r p o s e s of d u l y a u t h o r i z e d c o m m e r c i a l t r a n s a c t i o n s and o t h e r p a y m e n t s r e l a t i n g to c u r r e n t b u s i n e s s ( i n c l u d i n g b a l a n c e s a c crued f r o m the s a m e s o u r c e s d u r i n g the w a r ) ) . T h e M i n i s t r y of F i n a n c e , m o r e o v e r , w i l l e x a m i n e c a r e f u l l y r e q u e s t s for t r a n s f e r s of c a p i t a l f r o m F r a n c e to the U n i t e d S t a t e s w h e n t r a n s f e r s of that t y p e m i g h t serve a u s e f u l e c o n o m i c or c o m m e r c i a l p u r p o s e , and w h e r e t r a n s f e r s of small a m o u n t s are of s u b s t a n t i a 1 i m p o r t a n c e to the i n t e r e s t e d p a r t i e s . It w i l l e x a m i n e in the same s p i r i t r e q u e s t s for t r a n s f e r s of funds to the U n i t e d S t a t e s filed b y A m e r i c a n n a t i o n a l s r e s i d i n g in the franc zone . Accept, my dear M r . S e c r e t a r y , the e x p r e s s i o n (Signed) R. * LETTER FROM * * * * TO FRENCH MINISTER Mr. OF PLEVEN October M y dear esteem. PLEVEN S E C R E T A R Y OF T H E T R E A S U R Y V I N S O N FINANCE of my high 2, 1945 Minister: I am p l e a s e d to h a v e r e c e i v e d the a s s u r a n c e s c o n t a i n e d in your l e t t e r of S e p t e m b e r 26, 1 9 4 5 , c o n c e r n i n g the g e n e r a l l i c e n s e w h i c h r e p r e s e n t a t i v e s of our two D e p a r t m e n t s h a v e b e e n d i s c u s s i n g . In v i e w of the s t a t e m e n t s c o n t a i n e d in your letter, a t r a n s l a t i o n of w h i c h is a t t a c h e d , I am h a p p y to inform you that the T r e a s u r y D e p a r t m e n t w i l l i s s u e o n O c t o b e r 5, 1 9 4 5 , G e n e r a l L i c e n s e N o . 9 2 , in the e n c l o s e d form. S i nee rely, ( S i g n e d ) F R E D M. VINSON
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