740.00113A European War 1939/98a

The Secretary of State to Diplomatic and Consular Officers

Diplomatic Serial No. 3558

Sirs: Transmitted herewith for your information is a copy of the Department’s telegram no. 1903 of August 3, 1942 to the Legation at Bern concerning the decision of the United States Government not to permit the direct or indirect transfer of funds to enemy territory for the payment of charges arising in connection with private American property, real or personal, in enemy territory, such as taxes, rent, salaries of custodians, insurance premiums, repairs, and cost of packing or storage.

For your further information, the text of the Department’s telegram no. 1336 of May 23, 1942 to the Legation at Bern, mentioned in paragraph five of the enclosed telegram, is as follows:

[Here follows text of telegram No. 1336 of May 23, printed on page 279.]

A copy of the Department’s air mail instruction no. 1202 of February 14, 1942 to the Legation at Bern,49 also mentioned in paragraph five of the enclosed telegram, was transmitted as the enclosure to the Department’s mimeographed circular instruction of February 17, 1942, Diplomatic Serial No. 3451.50

Very truly yours,

For the Secretary of State:
G. Howland Shaw
[Enclosure—Telegram]

The Acting Secretary of State to the Minister in Switzerland (Harrison)

1903. American Interests—Property.

1.
The United States Government does not intend to permit the direct or indirect transfer of funds to enemy territory for the payment [Page 283] of charges arising in connection with private American property, real or personal, in enemy territory, such as taxes, rent, salaries of custodians, insurance premiums, repairs, and cost of packing or storage.
2.
Furthermore, in conformity with its policy respecting the enforcement of the Trading with the Enemy Act, the United States Government will not forward or permit to be forwarded, directly or indirectly, from persons in the United States to enemy territory, or from such territory to persons in the United States, private communications concerning private property. However, the United States Government will always welcome reports of a general character upon the treatment of such American property and such brief reports in specific instances as Swiss representatives charged with the representation of the interests of the United States may find it possible to prepare when officially requested to do so. Such requests will be kept to a minimum.
3.
Though Swiss representatives will not be authorized to discharge financial obligations arising in connection with private American property, it is hoped they will not overlook any alternative means of protecting such property.
4.
Request Swiss Government so to inform all its representatives charged with representation of interests of United States for guidance in answering inquiries from owners of private American property in enemy territory or their agents and in replying to any demands for payment of charges such as those mentioned above in paragraph 1. They should also be informed that in reporting upon the status of an individual’s private property, the omission of all verbatim statements of or written communications from custodians, agents, or other nonofficial persons will facilitate the forwarding of information to interested persons in the United States.
5.
American nationals offered an opportunity to return to the United States but unable to avail themselves of the opportunity because they are physically unable to undertake the voyage of repatriation, and for whom the Swiss representative has recommended and the Department has specifically approved the continuance of financial assistance (Department’s 1336, May 23), may pay such of the charges mentioned in paragraph 1 as are an essential part of the cost of their subsistence, provided that the total monthly payment to an American national is not permitted by reason thereof to exceed in any instance the applicable maximum prescribed by the Department’s air mail instruction no. 1202 of February 14. However, charges such as salaries of custodians and cost of packing or storage are not considered to be a part of the cost of subsistence.
6.
This Government does not permit persons in the United States to effect transactions on behalf of enemy nationals in enemy territory [Page 284] by drawing upon funds that such enemy nationals may have in the United States for the payment of charges such as those mentioned in paragraph 1, when such transactions involve any communication with enemy territory. Consequently, in cases of American nationals in the United States possessing funds in enemy territory, the Department is not suggesting the possibility of utilizing such funds for the payment of such charges, and this Government would not approve communications with enemy territory for such purposes.
7.
The terms “enemy national” and “enemy territory” as used in this instruction shall be understood to mean enemy national and enemy territory as defined in General Ruling No. 11, issued on March 18, 1942 by the Treasury Department pursuant to Executive Order No. 8389, as amended.
Welles
  1. Ante, p. 262.
  2. See footnote 23, p. 262.