740.00112A European War, 1939/14948: Airgram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
A–15. Reference your telegram 4191 of July 27.
1. We have no objection to the taking of undertakings from firms “controlled” from occupied France provided that the undertaking is based on the complete and effective severance of such control. In those circumstances we would no longer consider the firm controlled from occupied France for listing purposes.
2. We do not contemplate seeking such undertakings generally ourselves but we would not ordinarily list a firm from which the British had accepted an undertaking. Although we cannot associate ourselves with their undertakings from French firms we believe it is advisable that our missions be kept informed by the British of all cases where they contemplate accepting undertakings in order that divergent actions may not be taken. In all important cases we believe it would also be desirable for MEW or ourselves to be informed beforehand so that any adverse information available in London or Washington could be considered before undertaking is accepted.
3. Our general views on these undertakings are that an undertaking should only be considered where the mission is satisfied that the firm is genuinely anti-Axis in political sympathy and that caution [Page 294] should be exercised not to give undue weight to a technical severance of control from French territory as there is evidence that many French firms have taken steps to grant powers of attorney with respect to the operation of their branches, and it is felt that this procedure leads to the possibility of a technical compliance with the requirements of a severance of control without any real change in the influence over the firm’s operations.
Any arrangement between a head office in France and a branch in a neutral country whereby control is shifted from the head office to the branch should be scrutinized with particular care where the head office is in occupied France.
4. It is the policy of the Treasury not to license any remittances to enemy or enemy-occupied territory. This includes occupied France. Subsistence remittances to American citizens in occupied territories are handled by State Department through the Swiss Government.