551.58B1/18

The Secretary of State to the Minister in Switzerland (Wilson)

No. 430

Sir: There is enclosed, for transmission in the usual informal manner, a note to the Secretary General of the League of Nations, in reply to his note of October 8, 1928,7 requesting this Government’s observations on the proposals contained in the report of the Mixed Committee for the Suppression of Counterfeiting Currency.

I am [etc.]

For the Secretary of State:
W. R. Castle, Jr.
[Enclosure]

The Secretary of State to the Secretary General of the League of Nations (Drummond)

The Secretary of State of the United States of America refers to the note of the Secretary General of the League of Nations, dated October 8, 1928, in which he requested this Government’s observations on the proposals contained in the report of the Mixed Committee for the Suppression of Counterfeiting Currency.

[Page 400]

In reply, the Secretary of State desires to submit the following comments on the provisions of the Draft Convention:

Article I.

The Government of the United States suggests that the agreement for the adoption of necessary measures embodied in Paragraph 1, be modified so as to provide that the contracting parties agree themselves to take or propose to their respective law making bodies the necessary measures in question.

With this exception, Paragraphs 1 to 5, inclusive, appear to impose no requirements that are not covered by the laws of the United States at present in force.

Paragraph 6. The penalties provided in the Federal Statutes of the United States relating to the counterfeiting of foreign obligations and securities are not as severe as those imposed by laws denouncing the counterfeiting of United States obligations and securities. An effort might be made to remedy this by amending the statutes to equalize these penalties.

Paragraph 7. Confiscation of counterfeit money and material and apparatus fitted or intended for counterfeiting purposes is provided for in the Federal Statutes, and the surrender of such property in case of the counterfeiting of foreign moneys to the interested government can be accomplished by direction of the Secretary of the Treasury.

Paragraph 8. The Federal Statutes do not allow participation of civil parties in criminal proceedings.

Paragraph 9. The American Government perceives no objection to this paragraph.

Paragraph 10. The American Government approves of the provisions of this paragraph, but desires to point out that, inasmuch as it recognizes the general rule of extraditing its nationals for offenses committed in a foreign country, subject to the provisions of existing treaties, paragraph 10 is not applicable to the United States.

Paragraph 11. This paragraph is not applicable to the American Government, since the internal legislation of the United States does not recognize the principle of the prosecution of offenses committed abroad. The American Government perceives no objections to the provisions of this paragraph.

Paragraph 12. A central bureau in the United States charged with the suppression of counterfeiting, the Secret Service Division of the Treasury Department, has been in existence since 1864, and is in close touch with the institution issuing currency and with the police authorities throughout the country. It is believed that it will be entirely practicable for the Secret Service Division of the Treasury [Page 401] Department to effect contact with the central bureaus abroad with good results.

Paragraph 13. It is believed that direct communication between these central bureaus will facilitate their activities and add materially to their effectiveness.

Paragraph 14. The provisions of this paragraph calling for specimens of the currency issues of the United States cannot be complied with without violating the policy of the Treasury as established for a long period of time. It is not believed that this policy should be changed and it is suggested that the same results can be accomplished if the foreign governments obtain United States currency in exchange for legal tender, which exchange can be made direct with the Treasury so that the currency obtained will be known to be genuine.

Paragraph 15. Periodical conferences attended by representatives from the contracting governments might prove advantageous.

Paragraph 16. The Government of the United States would desire further information as to the exact scope and effect of “letters of request,” but may observe that mere correspondence relating to counterfeiting operations and their suppression should be conducted directly between these central bureaus and confirmed by copies despatched through customary diplomatic channels.

Article II

The American Government is of the opinion that the offenses referred to should be recognized as extraditable offenses, and, subject to the limitations contained in existing treaties or conventions, favors the principle stated. However, it would much prefer that the offenses in question should be specifically set forth in this Article.

In view of the provisions of Paragraph 10, Article I, and of the foregoing comment thereon, the Government of the United States would desire an addition to Article II providing that the contracting parties shall not be obligated to surrender their own citizens.

Moreover, since the extradition laws of the United States are not very comprehensive and do not cover several matters which are ordinarily dealt with in the extradition treaties of the United States, the American Government considers that future embarrassment to it might be obviated by providing in the convention under consideration for such matters: as for instance, a prohibition of the trial of the extradited person for another offense until he has had a reasonable opportunity to leave the country following his trial or punishment on the charge for which he was surrendered; the effect upon the obligation to surrender of the running of the Statute of Limitations and of the current prosecution or conviction of the fugitive upon an offense committed in the territory of the surrendering government; [Page 402] the rule which shall govern in case surrender is requested by two or more powers; the limit of time a fugitive shall be held after commitment or arrest and awaiting the production of the formal documents, and, finally, the nature of the evidence which it is essential to produce.

The Government of the United States does not object to the provisions of the remaining articles of the draft convention.

With reference to the recommendations numbered 1 to 8, inclusive, on page 24 of the printed report, this Government has no comments to submit at this time. However, the Government of the United States reserves the right to make such further comments as it may later deem advisable.

  1. Latter not printed.