File No. 763.72112A/861a
The Secretary of State to the Consular Officers in All Countries 1
General Instructions
Consular
Gentlemen: In the enforcement of the Enemy Trading Act and in the protection of the interests of the United States, it has been [Page 981] found to be of great importance to prevent enemies, or allies of enemies, either directly or indirectly, through the use of neutral or other persons or firms as cloaks to conceal the enemy, or ally of enemy, interest in merchandise shipped to the United States, and thus continue to trade in violation of the laws, proclamations, and regulations from time to time in force. The War Trade Board has, therefore, devised a plan by which it is proposed, through the issuance of “certificates of interest” by consular officers, to prevent the shipment to the United States of merchandise through such persons as may be acting as cloaks, and the collectors of customs at the various ports of the United States have been notified that in all cases of imports into the United States from foreign countries a “certificate of interest” must accompany each shipment (except those shipments in respect to which the importer has obtained an enemy trade license and filed it with the collector). Shipments not documented in one of the ways mentioned will be held by the collectors until the Bureau of Enemy Trade of the War Trade Board can be notified and make such investigation as circumstances may require.
You will exercise every proper effort to make the following regulations effective, but in doing so you should guard carefully against violating local laws or obstructing commerce or arousing local prejudice, and where it is very difficult to ascertain the facts in a given case, it is preferable to grant a “certificate of interest” for a shipment about which there may be some slight doubt rather than to clog the course of trade by a prolonged investigation.
Imports
Consular officers will inform shippers that on and after June 15, 1918, consular invoices for shipments of merchandise into the United States will not be certified unless accompanied by a separate declaration (Form No. 232) by the manufacturer, owner, purchaser, or seller, or duly authorized agent of either, stating that no person who is an enemy, or an ally of enemy, of the United States, or with whom trading is prohibited under the laws, proclamations, or regulations for the time being in force in the United States, has any interest whatsoever direct or indirect in the merchandise. Before certifying invoices, accompanied by such declarations, consular officers will satisfy themselves from documentary or other proof of the correctness of the statements in the declarations. They will then certify the invoices and attach to the declarations (Form No. 232) a certificate (Form No. 234) showing that the officer has been convinced of the correctness of the declaration.
In the case of exports to the United States from Norway, Sweden, Denmark, the Netherlands, and Switzerland, the declarations and certificates should contain the additional statement that the merchandise was not manufactured or produced in enemy territory. [Page 982] Shipments from these countries should be accompanied by Forms Nos. 233 and 235, in lieu of Forms Nos. 232 and 234.
No fee should be charged for issuing the “certificate of interest” when it is to accompany a shipment for which a consular invoice has been certified (Fee No. 1, Tariff of Consular Fees). In all other cases, however, a fee of $1 will be charged (Fee No. 3, Tariff of Consular Fees).
It should be remembered that the foregoing regulation does not apply to shipments for which an enemy trade license has been issued by the War Trade Board. The statement of the shipper that a license has been issued is sufficient. It is not necessary to require the production of the license before certifying an invoice.
Shipments to Neutral Countries from Neutral Countries in American Bottoms
Where American vessels, before accepting cargo for transportation from a neutral to another neutral country, insist upon the production by the shipper of a certificate from the American consular officer at the port to the effect that there is no enemy or ally of enemy interest in the merchandise to be transported the consular officer may issue a “certificate of interest” (Form No. 234 or No. 235, according to the country in which he is stationed) in triplicate upon submission to him of the declaration of the shipper (Form No. 232 or 233) in triplicate, after satisfying himself of the correctness of the statements therein. The original and duplicate of each declaration and “certificate of interest” should be delivered to the shipper and the triplicate should be filed in the consulate. A fee of $1 (Tariff of Consular Fees, Fee No. 3) should be collected for the service.
Financing of Shipments of Merchandise from Neutral Countries to Neutral Countries by Branches of United States Banks in Neutral Countries
In the event that American banks, having branches in neutral countries, when called upon to finance shipments to neutral countries from neutral countries, insist upon a declaration from the shipper accompanied by a certificate from the proper consular officer, of the absence of enemy or ally of enemy interest in the shipment, the procedure outlined in the foregoing paragraph may be followed and a fee of $1 collected for the service. If, however, a declaration and “certificate of interest” has already been issued in accordance with the preceding paragraph, an additional copy of each may be issued for the use of the bank without additional charge.
[Page 983]Shipments from Neutral Countries to Neutral Countries in Neutral Bottoms
Consular officers should exert every effort to watch shipments of merchandise from neutral countries to neutral countries in neutral ships, and whenever it is learned that a neutral ship is carrying merchandise in which there is an enemy or ally of enemy interest, or accepting shipments made through persons acting as cloaks for enemy or ally of enemy firms, prompt notification should be forwarded to the Department for the War Trade Board, giving the name of the ship, the name of the owners, and other pertinent information.
Mode of Investigation
As has already been stated in the second paragraph of this instruction, the purpose of the issuance of “certificates of interest” is to prevent enemies or allies of enemies either directly, or indirectly through the use of other firms as cloaks, from continuing to trade in violation of the laws, proclamations, or regulations from time to time in force in the United States. The Government relies upon you before granting certificates in accordance with this instruction, to satisfy yourselves fully of the absence of any such violation in respect of the shipments under consideration. To this end you are authorized to make such investigation, and to require the production of such documentary or other proof as may be necessary, keeping in mind, however, that, consistent with the purpose to be accomplished, this authority should be exercised without violating local law or arousing public prejudice and with as little interference as possible with the normal course of trade. In the execution of the foregoing instruction it is expected also that you will confer with and invite the cooperation of your British, French, Italian, and Belgian colleagues. Officers stationed in Switzerland will find it desirable to utilize, as far as practicable, the information and organization of the Société Suisse de Surveillance.
In the execution of the foregoing instruction, you will be guided until further orders by the Trading with the Enemy Act and the telegraphic circular instruction of September 14, 1917 (appended).1
I am [etc.]
- The following circular telegram was sent, June 25, 1918, to consuls in Great Britain, France, Italy, and Japan: “Provisions of circular instruction 593 of April 20 do not apply to exports from the country to which you are accredited.” (File No. 763.72112A/861a suppl.)↩
- Foreign Relations, 1917, Supplement 2, vol. II, pp. 922–924.↩