File No. 763.72112/5783

The Secretary of State to the Minister in China ( Reinsch)


Your November 10, 1 p.m. War Trade Board advises German residents China not doing business in enemy or ally-of-enemy territory are not enemies under Trading with Enemy Act by reason alone of nationality, but may become so by reason of enemy activities which should be scrutinized very closely by you. In absence of other reasons Americans could pay to and receive from such persons rents on existing leases. Above statement based on assumption that Germans are not doing business directly or indirectly through branch agent or other agency within enemy territory and not trading with, to, for, from, on account of or for benefit of enemy or ally of enemy and that property under lease situated outside enemy territory. Department expresses no opinion.