Foreign Relations of the United States: Diplomatic Papers, 1943, General, Volume I

800.142/224a

Memorandum Prepared in the Special Division¹⁹

[Washington, October 21, 1943.]

It has been observed by the United States Government that the International Red Cross Committee at Geneva has offered its services to various National Red Cross societies of the Western Hemisphere, as well as to individual nationals of the American Republics, for the transmission of funds from the Western Hemisphere to enemy territory. In one instance, for example, the International Red Cross Committee is understood to have informed the Costa Rican Red Cross by a letter dated April 15, 1942 that payments might be effected from Costa Rica to enemy territory by means of checks on Swiss banks, payable in Swiss currency and to the order of the International Red Cross Committee.

It has also been brought to this Government’s attention that the International Red Cross Committee wishes to transmit from enemy territory funds to be used in the extension of financial assistance to certain persons in the Western Hemisphere.

The position of the United States Government and of the Governments of the other American Republics in this regard is indicated by the Final Act of the Inter-American Conference on Systems of Economic and Financial Control, held at Washington from June 30 to July 10, 1942,²⁰ the following excerpts from which are pertinent:

Recommendation I (b): “To prevent any … person … from engaging in any financial … transaction which involves … the remittance of any funds … to persons under the jurisdiction of aggressor nations or those dominated by them … directly or indirectly.”

Exceptions: “There shall be excepted remittances (i) for living expenses of citizens of such American Republic residing within the aggressor nations or in the territories dominated by them … The said payments can only be made [directly] by the Government of the respective American Republic, or through the Government representing its interests in such aggressor nations, or in the territories dominated by them.”

Recommendation I (c): “To prevent any … person … from engaging in any financial … transaction which involves … the receipt of any funds … from any person within the jurisdiction of the aggressor nations or nations dominated by them … directly or indirectly.[”]

Exceptions: “There shall be excepted the remittances which each Government in its discretion may authorize (i) for living expenses of citizens of such aggressor nations or nations dominated by them, residing within the American Republics …

“… Remittances … shall be received only directly by the Government of the respective American Republic, or through the intermediary of the Government which represents in such American Republic the interests of said aggressor nations or of nations dominated by them.”

In the circumstances, the United States Government suggests that the International Red Cross Committee, to avoid any contravention of the aforementioned principles by which the American Republics are guided, take the following steps as soon as possible:

1. Withdraw all offers of its facilities for the transmission of funds either from the Western Hemisphere to the aggressor nations and territories dominated by them or from such aggressor nations and territories to the Western Hemisphere.

2. Except as hereinafter indicated, refrain from permitting the further use of its facilities for such purposes and so inform all other Red Cross societies.

It is not intended that the International Red Cross Committee should refrain from permitting the use of its facilities for approved transfers of funds in behalf and at the request of governments. In certain instances, for example, it has not proved possible for governments to effect the transmission of funds to their nationals in the territory of the opposing belligerents through the medium of protecting Powers. In several such instances, the transmission of funds through the facilities of the International Red Cross has been authorized, subject to suitable safeguards including the limitation of payments to amounts essential for minimum subsistence needs and satisfactory assurance that funds are actually received by the persons for whom they are intended. Illustrative of such arrangements is the plan of the Belgian Government, approved by the United States Government and by the British Government, which provides for the transmission of funds to certain Belgian nationals in the territory of aggressor nations or in territory, other than Belgian, dominated by them. International Red Cross facilities are also being utilized to effect payments to certain prisoners of war and civilian internees in the Far East, detained in areas where the representatives of the protecting Powers have not been permitted to function effectively.

The United States Government’s policy with respect to the transmission to or from enemy territory of private messages or of documents intended for private use will be made the subject of a separate communication.²¹

19. The Department transmitted this memorandum to the Minister in Switzerland in instruction No. 1934, October 21, and directed him to address a communication in the sense of the memorandum to the International Red Cross Committee at Geneva. The instruction read, in part: “It is understood that the British Minister at Bern will be authorized similarly to communicate to the International Red Cross Committee the views of the British Government on the use of the facilities of the International Red Cross for the transmission of funds to or from enemy territory. You may communicate to the British Minister the text of the enclosed memorandum and concert with him with a view to approaching the Committee at approximately the same time.” The Legation in Switzerland reported on December 2, in despatch No. 6754, that after consultation with the British Legation it had addressed a letter on November 29 to the International Red Cross Committee, a copy of which was enclosed; also enclosed was a copy of a similar letter addressed to the Committee by the British Legation on November 30 (800.142/255).
20. Pan-American Union, Congress and Conference Series No. 39: Final Act of the Inter-American Conference on Systems of Economic and Financial Control (Washington, 1942).
21. Not found in Department files, but see telegram No. 195 to the Minister in Switzerland, January 23, p. 120.