Office of the Historian

840.51 Frozen Credits/8412

The American Embassy in Argentina to the Argentine Ministry for Foreign Affairs22

Memorandum

The Embassy of the United States of America has been informed by its Government that following the recent severing by the French Government at Vichy of diplomatic relations with the United States,23 the Government of the United States has deemed it necessary to discontinue allowing the French Government and its agencies to have access to dollar funds held in their names in the United States. Also, all of France within continental Europe has been declared by the United States Government to be enemy territory for purposes of restrictions against communicating and trading with the enemy. Previously only occupied France had been regarded as enemy territory. This action has been taken by the Secretary of the Treasury by means of an amendment of the definition of “enemy territory” in General Ruling No. 11 of the Treasury Department,24 which had been promulgated pursuant to the Trading with the Enemy Act and pertinent regulations relating to the freezing of funds.

Inasmuch as the Government at Vichy is known to be controlled by the governments of the aggressor countries, more especially by the German Government, it is hoped that the Government of Argentina will see fit to adopt similar economic and financial measures with respect to France and assets of the French Government within Argentina, with a view particularly to preventing the large withdrawals of funds which may be attempted immediately. Similarly, it is hoped that appropriate controls may be applied to the properties of any French nationals within Argentine territory who are known to be giving support to the aggressor nations either directly or through other countries, including those dominated by the aggressor nations. Such collaboration on the part of Argentina would necessarily add much to the effectiveness of the steps taken by the United States Government.

Buenos Aires , November 10, 1942.
  1. Copy transmitted to the Department by the Chargé in Argentina in his despatch No. 7292, November 12; received November 21.↩
  2. See telegram No. 1651, November 8, 8 p.m., from the Chargé in France, vol. ii, p. 201.↩
  3. 7 Federal Register 2168.↩