File No. No. 763.72113/660
The Secretary of State to the Ambassador in Brazil ( Morgan)
Your August 2, 3 p.m. Department informed Alien Property Custodian authorized to take over property in United States belonging to persons or concerns who by reason of residence in or doing business in enemy territory, or otherwise, archenemies under Enemy Trading Act or proclamation issued in pursuance of section 2(c) thereof. Such property taken over, if going concern, is managed by him until appropriate time to seller liquidate.
Corporations incorporated in United States with stock wholly or partially owned or controlled by enemies are not taken over directly. Alien Property Custodian authorized to require such stock delivered and transferred to him. Stock certificates, if within United States, are surrendered, and new certificates issued to him; if not in United States, corporation required to transfer to him on its books all rights, title, and interest of enemies registered as stockholders. Directors then elected in proportion to amount of enemy stock taken over, Custodian thereby securing through them actual control of corporation. This stock may be sold or, if sufficient stock thus controlled, sale of corporate assets by corporation may be had.
[Page 349]Above applies only to property owned by enemies as defined by act or proclamations. Germans or Austro-Hungarians are not, merely by reason of their nationality, included in term enemy.