File No. 763.72112/5959a
The Secretary of State to Consular Officers in Latin American Countries
General Instructions
Consular
Gentlemen: Referring to General Instruction No. 554 of November 7, 1917,2 enclosing a copy of an act, “to define, regulate and punish trading with the enemy, and for other purposes,” approved by the President, October 6, 1917, together with a copy of the Executive order dated October 12, 1917,3 issued by the President of the United States in pursuance of the authority vested in him by the act, your attention is particularly called to section 2 of the act defining an enemy or an ally of enemy, and to section 3 which specifies the classes of persons with whom it shall be unlawful to trade. In this relation, it is necessary to emphasize the fact that it is not only unlawful to trade with enemies or allies of enemies as defined by section 2, but that it is also unlawful to trade with any person of whatever nationality [Page 998] or residence who, there is reasonable cause to believe, is trading directly or indirectly for the benefit, or on account of an enemy or ally of enemy.
For your information there are enclosed copies of the President’s proclamations of July 9 and August 27,1 last, prohibiting, save under license, exportation from the United States of certain articles therein set forth. Export licenses are, under regulations prescribed pursuant to these proclamations, refused in any case where the consignee is a person coming within the definition of enemy or ally of enemy as contained in the Trading with the Enemy Act, or is a person, firm, or corporation suspected of acting on account of, on behalf of, or for the benefit of an enemy or ally of enemy. For your guidance in respect to such persons, there is printed on the overleaf an extract from the general instructions of the War Trade Board to the Bureau of Export Licenses. The application of these is intended to supplement the Trading with the Enemy Act and to attain as one object the prevention of trading directly or indirectly with, on behalf of, on account of, or for the benefit of the enemy, as the term “enemy” is defined in the act.
Consular officers will obtain for the use of the War Trade Board, data with regard to (1) persons, firms and corporations of enemy or ally of enemy character or association, and (2) persons, firms or corporations not of enemy or ally of enemy character or association who might be in position to take over the activities of such persons or firms as representatives or agents of American concerns.
The information will be used, first, by the War Trade Board to establish and correct the lists of those firms with which it is unlawful for American firms to trade, under the provisions of the Trading with the Enemy Act, and, second, by that board or by the Bureau of Foreign and Domestic Commerce to furnish to American firms the names of persons or firms of non-enemy character who might represent their interests.
This survey in each consular district is designed in the first place to include only those individuals and firms which are now engaged directly in business with American concerns or which are in a position to establish such relations. It is essential that the information be submitted promptly and it should be forwarded as collected, without awaiting the completion of the entire work.
Each consular officer will be supplied with forms on which to submit the desired data. It will not be possible in the first report to submit all the data desired, but there should be presented a sufficient number of the essential facts to determine whether the firm is to be classed as an enemy firm or whether it can lawfully establish or [Page 999] continue trade relations with American concerns. If after the first report is submitted further information with regard to the character or activities of the firm become available, this should be submitted in a supplementary report. This applies particularly to the data called for under item 15.
A small supply of card forms upon which the reports are to be made is transmitted under separate cover. Additional copies of the forms may be obtained upon requisition. All reports should be made in triplicate. The forms call for the following information regarding persons, firms and corporations of enemy or “ally of enemy” character or association, and also those not of enemy or “ally of enemy” character or association which are in a position to take over the activities of enemy or “ally of enemy” firms as representatives or agents of American firms:
- 1.
- Name of person, firm, or corporation.
- 2.
- Address, giving numbers, street, city and country.
- 3.
- Class of goods. (Follow classification identical with the classification in the South American Trade Directory.)
- 4.
- Character of business. Indicate whether wholesale, retail, et cetera.
- 5.
- Buys chiefly where. Indicate countries and proportion from each.
- 6.
- Organization. Indicate whether individual, partnership, corporation, et cetera. If a branch of a house located in enemy territory, give name and location of such parent house. See also item 15.
- 7.
- Capital, volume of business, employees. If definite data are not available, furnish estimates so far as these can be given.
- 8.
- Branch houses. If branch or subsidiary organizations are maintained in same or contiguous countries give name, if differing from that of parent house, and location of each.
- 9.
- Traveling representatives. Indicate number and territory covered.
- 10.
- Banking connections. Furnish names of local and American or other foreign banking connections.
- 11.
- Financial references. Give local financial references.
- 12.
- Date of report and name of consul or officer submitting same.
- 13.
- Name classes of products handled. Enumerate items included in general classification under item 2.
- 14.
- American firms represented. State whether the person, firm, or corporation represents American mercantile, mining, financial, or other interests in any way, and if so, specify what these interests are and the nature of relationship existing.
- 15.
- Further details, especially as to item 6. Under this head are to be given the following data: If a firm, the name and nationality of each partner; if a corporation, name and nationality of each officer, and all available information as to ownership of stock. Briefly detail the pre-war and [Page 1000] present foreign commercial operations of the person, firm or corporation, stating in what countries principal purchases or sales were made, and the nature and annual value of such purchases or sales. Give any facts obtainable about special activities of the person, firm or corporation that may be directly prejudicial to American commerce, to the prestige and good name of this country, such as pro-German propaganda, or to the interests of this country in connection with its prosecution of the present war. In answering this question it is to be remembered that information is desired not only concerning persons, firms and corporations of enemy or ally of enemy character, and those whom you have reasonable cause to believe are dealing directly or indirectly for, on account of, on behalf of, or for the benefit of enemies or allies of enemies; but also firms which are in a position to take over the activities of enemy firms as representatives or agents of American firms.
In securing the data upon which these reports are based consular officers should endeavor to cooperate fully on a basis of reciprocity with the consular officers of Great Britain, France, Italy, and other Governments opposed to Germany.
The cards containing names of enemy or ally of enemy firms should bear the letters “B L” on the upper left-hand corner and those giving names of approved firms should bear the letters “W L.”
It should be borne in mind that the value of the information called for in the above-described card forms depends to a large degree upon the speed with which it is obtained. Consular officers are therefore urged to use all possible despatch in procuring and reporting the essential facts necessary to determine the enemy or non-enemy character of the persons, firms, or corporations in question.
In submitting in your trade correspondence, hereafter, the names of possible representatives or correspondents of American firms desiring to do business in your district, you should omit the names of German nationals, or firms, or companies composed principally of German nationals, whenever there are persons or firms of other nationalities in a position to act in the desired capacity, and you should endeavor in every possible way to supply names of firms not of enemy nationality or activity and preferably Americans who are in a position to act as representatives of firms in the United States.
The War Trade Board is about to establish a list of persons, firms and corporations in Mexico, Central and South America and the West Indies with whom trade is unlawful in the opinion of the board. A copy of this list will be sent you in due time with appropriate instructions.
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