840.51 Frozen Credits/85: Telegram
The Secretary of State to the Minister in the Netherlands ( Gordon )
97. Your 8, May 14, 11 a.m. Under credit freezing emergency act as extended, it is necessary to obtain a license to effect a valid transfer of either principal or interest of securities registered in the name of a known Dutch national or Dutch resident. It is impractical by this means to block transfer of bearer obligations or certificates, as such securities may appear in other markets.
We cannot undertake to say that this constitutes as effective protection as destruction of securities, since the problem remains as to how the holder of these securities may later be able to prove his ownership, and there is always the possibility that an apparently valid transfer made under compulsion might appear, and it is possible that such a transfer might be licensed. However, in the event of Dutch governmental action transferring title to the Dutch government or some specified agency, the Dutch would be in a better position both from the point of view of blocking transfer and of realization. This, of course, does not apply to bearer securities unless the securities themselves, or proofs of their destruction, are in the possession of the Dutch government.