File No. No. 763.72112/9430
The Secretary of State to the Minister in Switzerland ( Stovall)
Sir: The War Trade Board requests the Department to inform you as follows on the points set forth in your despatch No. 3336, dated May 29, 1918:1
The prohibitions of the Trading with the Enemy Act apply only to actions by persons in the United States and do not apply to American citizens in foreign countries. However, the War Trade Board feels that wherever possible it is desirable for diplomatic officials to discourage American citizens from undertaking any acts which would be illegal under the Trading with the Enemy Act for a person in this country to undertake, and for which a license would not be granted by the War Trade Board. In view of this fact, when inquiries are received by the Bureau of Enemy Trade through the Department of State with reference to proper actions on the part of United States citizens as to enemy trade, the War Trade Board states such action as it thinks the diplomatic officer abroad should advise the American citizen to take in the circumstances.
With reference to the particular questions:
- 1.
- Question of paying rents in Germany by Americans residing in
Switzerland.
[Page 433]
- (a)
- Out of funds in Germany. Where such payment is necessary to protect the property or interests of an American citizen, it is not objectionable for such payments to be made.
- (b)
- Out of funds sent to Germany from Switzerland. It is undesirable for money to be paid out to an enemy under any circumstances, except in the event that such payment is absolutely necessary for the actual preservation of American property or interests of greater value than the payment.
- 2.
- Question of insuring against fire real estate owned in Germany
by private citizens or by American-owned corporations.
- (a)
- Out of funds in Germany. There is no objection to such insurance being paid out of funds in Germany.
- (b)
- Out of funds sent to Germany from Switzerland. If such insurance is absolutely necessary to protect the American against possible loss of his property, it would seem unobjectionable for such payment to be made. All efforts to effect such insurance in neutral countries should be exhausted before insurance is taken out in a German company.
- 3.
- Question of paying taxes in Germany.
- (a)
- Out of funds in Switzerland. The same principles as above stated apply here.
- A caution should be added, however, with reference to the cases of making payments for the protection of property. It should be clearly determined before such payments are made that the property in question has not been, or will not be confiscated or taken over by the German Government, as the making of payments is entirely futile if this is the case.
- 4.
- Question of paying premiums due on life insurance policies, et
cetera.
- (a)
- In German or Austrian branches of American companies. It is undesirable that such payments be made in any case.
- (b)
- In purely German or Austrian life insurance companies. It is undesirable here also that such payments be made in any case.
I am [etc.]
- Not printed.↩