740.00112A European War, 139/1868a: Circular telegram

The Secretary of State to All Diplomatic and Consular Offices in the American Republics

Treasury Department is advising United States banks which have branches in the American republics with respect to the policy to be followed in dealing with Proclaimed List nationals. It is understood that the central offices in this country will advise the local branches in detail with respect to these policies which are to be put into effect on Monday September 29.

In general such branches are not to extend credit or render other services to Proclaimed List nationals except under license. Reasonable efforts are to be made to force the immediate liquidation of outstanding loans and new deposits of Proclaimed List nationals will not be accepted and existing deposit relationships are to be terminated. Thereafter no transactions may be engaged in except those incidental to the clearing of checks deposited to the credit of depositors not on the Proclaimed List, but with respect to which checks Proclaimed List nationals may have had some interest.

No transactions by such branches in United States dollars may be consummated except pursuant to license and such branches must set aside that portion of the United States dollar deposits carried with their own head offices or other banks within the United States which represents their equivalent liabilities in terms of United States dollars to Proclaimed List nationals.

The above policies have been explained to representatives of the British Embassy and the Canadian Legation17 and steps are being taken by them to have British and Canadian branches in the American republics take parallel action beginning September 29.

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Detailed instructions with respect to this issue and other questions concerning transactions between United States concerns and Proclaimed List nationals are being sent by air mail.

  1. For an unofficial Canadian account of early U.S.–Canadian cooperation on proclaimed list matters, see R. Warren James, Wartime Economic Cooperation: A Study of Relations between Canada and the United States (Toronto, The Ryerson Press, 1949), pp. 165–170.