861.00/5735
The Secretary of State to the British Chargé ( Lindsay )
Sir: I have the honor to refer to the Embassy’s communication of November 22, 1919, No. 840, in which you inform me that your Government desires to ascertain the steps now being taken by the Government of the United States to prevent financial transactions between this country and Bolshevist Russia.
I have the honor to inform you that, under the authority conferred on the President by Section 5, subsection (b), of the Trading with the Enemy Act,27 there is still in force a prohibition against the shipment of coin, bullion and currency to that part of Russia under the control of the so-called Bolshevik Government and any and all dealings or exchange transactions in Russian rubles, or transfers or credit or exchange transactions with that part of Russia under the control of the so-called Bolshevik Government, except that the exportation from the United States of Russian rubles is permitted, provided that notice of such exportation be given to the Customs Division of the Treasury Department, and to the Division of Foreign Exchange of the Federal Reserve Board. It is of course obvious that with the removal of the censorship the means of enforcing the above prohibitions are very much weakened.
In connection with this inquiry, I beg leave to draw your attention to page 15, of the Report of the Secretary of the Treasury to the Congress, dated November 20, 1919,28 which deals with the prohibitions thus still in force. There has been no change since that date.
Accept [etc.]