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Jet Federal R eserve Ba n k o f N ew York, N .Y . AREA C O D E 2 1 2 F i s c a l A g e n t of the N ew Y o r k 10 0 4 5 RE 2 -5 7 0 0 U ni t e d S t a t e s November 3> 1966 To all Member and Nonmember Banks in the Second Federal Reserve District: On September 13 we sent you a copy of a letter dated September 12 from the U.S. Treasury Department concerning illegal remittances of funds to persons or organizations in North Viet-Nam or Viet Cong controlled areas. At the request of the Treasury Department we enclose a communication dated October 28 which supplements the earlier letter. B. K. MacLaury Assistant Vice President Enclosure TR EA SU R Y DEPARTMENT W A S H I N G T O N , D .C , >REIGN A S S E T S C O N T R O L REPLY REFER TO: No. 20220 O ctob er 2 8 , 1966 57238 Gentlem en: R e fe r e n c e i s made t o our l e t t e r o f September 1 2 , 1966 c o n c e r n i n g a tt e m p t s by c e r t a i n American Quakers to send funds i l l e g a l l y to the Canadian F r ie n d s S e r v i c e Committee f o r the purchase o f s u p p l i e s d e s t i n e d f o r N orth V i e t Nam and the V i e t Cong. ! We have a s c e r t a i n e d t h a t the Canadian F r i e n d s S e r v i c e Com m i t t e e m a in ta i n s i t s g e n e r a l acco u n t a t the Royal Bank o f Canada, B lo o r and B e d fo r d Branch, T o r o n t o , Canada. In o rd e r t o a v o id u n n e c e ssa ry i n t e r f e r e n c e w it h normal banking p r a c t i c e s , we have s u g g e s t e d t o the R oyal Bank o f Canada t h a t i t i n q u ir e o f the Canadian F r i e n d s S e r v i c e Committee w i th r e g a r d t o U. S. d o l l a r in stru m e n ts d e p o s i t e d by the Committee in i t s g e n e r a l acco u n t a t the above-named branch o f the R oyal Bank o f Canada. Those checks which were s a i d by the Committee n ot to i n v o l v e an i n t e r e s t o f North V i e t Nam or the V i e t Cong c o u l d be n e g o t i a t e d f r e e l y and t r e a t e d in normal f a s h i o n . A l l o th e r in stru m e n ts from the Canadian F r i e n d s S e r v i c e Committee would be h a n dled on a c o l l e c t i o n b a s i s . Such checks would be accompanied by a d v ic e t o the drawee bank t h a t the in stru m e n t might be s u b j e c t t o the T r e a s u r y 's F o r e i g n A s s e t s C o n t r o l R e g u l a t i o n s , thus a f f o r d i n g the U. S . c o r r e s p o n d e n t and the U. S, drawee bank an o p p o r t u n i t y t o b r i n g the instrum ent t o our a t t e n t i o n and a v o id becoming i n v o l v e d in an u n w i t t i n g v i o l a t i o n o f the F o r e i g n A s s e t s Con trol R e g u la tio n s. The Royal Bank o f Canada has i n d i c a t e d t h a t i t i s n o t prepared to adopt t h i s s u g g e s t i o n , and i n s t e a d w i l l send a l l U. S . i n s t r u m e n t s r e c e i v e d from the Canadian F r i e n d s S e r v i c e Commit t e e to i t s U. S . c o r r e s p o n d e n t s on a c o l l e c t i o n b a s i s . Under t h e s e c i r c u m s t a n c e s , you s h o u ld n o t pay ( o r forward t o the drawee bank) any n e g o t i a b l e in stru m e n t r e c e i v e d by you from the Royal Bank o f Canada on a c o l l e c t i o n b a s i s which i s p a y a ble to or en d o r sed by the Canadian F r ie n d s S e r v i c e Committee or any person named b e lo w , in the absence o f s p e c i f i c a u t h o r i z a t i o n from t h i s O f f i c e . In a d d i t i o n t o c o l l e c t i o n item s pa y a b le t o or e n d o r se d by the Canadian F r i e n d s S e r v i c e Com mittee, such item s p a y ab le to any o f the f o l l o w i n g p e rs o n s sh o u ld a l s o be t r e a t e d in a ccordan ce w ith the p r o c e d u r es d e s c r i b e d a b o v e : U r su la F r a n k l i n K a th le e n H e r t z b e r g R ic h a rd Legge H azel Legge Roger Muma Murray Thompson - 2 In th ose c a s e s where the r e m i t t a n c e s t o the Canadian F r ie n d s S e r v i c e Committee have been l i c e n s e d , the l i c e n s e e i s i n s t r u c t e d by the T r e a su r y t o no te the FAC l i c e n s e number on the in s t r u m e n t . Such i n s t r u m e n t s may be h o n o red . Other in s t r u m e n t s pa y a b le t o or e n d o r se d by the p a r t i e s m entioned h e r e i n s h o u ld n o t be honored w i t h o u t our a u t h o r i z a t i o n but i n s t e a d sh o u ld be brou ght to the atten tion of th is O ffic e . Teleph one i n q u i r i e s may be made e i t h e r to Mr. Samuel R o s e , a re a code 2 0 2 , WOrth 4 - 2 7 6 8 or t o Mr. S t a n l e y L. S o m m e r f ie ld , area code 2 0 2 , WOrth 4 - 2 3 9 4 , in W a sh in g to n , D. C. W r i t t e n i n q u i r i e s sh o u ld be a d d r e s s e d t o the D i r e c t o r , O f f i c e o f F o r e i g n A s s e t s C o n t r o l , T r e a s u r y D epartm ent, W a sh in g t o n , D. C. 2 0 2 2 0 . Very t r u l y yours D irecto r
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