File No. No. 763.72112/5272
The Secretary of State to the Ambassador in Brazil ( Morgan)
Your telegram October 27, 5 p.m. Following is a summary of pertinent portions of Trading with the Enemy Act:
Enemy or ally of enemy insurance or reinsurance companies, and every enemy or ally of enemy, doing business within the United States through an agency or branch office, or otherwise, may, within 30 days after the passage of this act, file application with the President for license to continue business. License may be granted or refused, may be temporary or otherwise, may be revoked, re-granted or renewed, and may contain such provisions and conditions regulating business, agencies, managers and trustees, and the control and disposition of funds of company, or of such enemy or ally of enemy as may be deemed necessary.
For 30 days after passage of act and pending action upon application for license filed within that time, enemy or ally-of-enemy insurance or reinsurance companies may continue to do business under provisions of the President’s proclamation of April 6, 1917,1 as modified by proclamation of July 13,2 which forbids German insurance companies in United States continuing business in marine or war risk insurance either as direct insurers or reinsurers, which provisions are extended to apply to enemy or ally-of-enemy insurance or reinsurance companies. Unlawful for such companies, to whom license granted, to transmit out of United States any funds belonging to or held for benefit of such company or to use such funds as basis for establishment, directly or indirectly, of any credit within [Page 343] or outside of United States to, for benefit of, on behalf of, or on account of an enemy or ally of enemy. Similarly lawful for enemy or ally of enemy, other than insurance companies as above provided, pending action on application, to continue business, provided that provisions of act making it unlawful to trade with enemy or ally of enemy and providing penalties upon conviction for so doing, shall apply to any act or attempted act of transmission or transfer of money or other property out of United States and to the use or attempted use of such money or property as basis for establishment of any credit within or outside United States to, for benefit of, on behalf of, or on account of an enemy or ally of enemy.
Act provides for Alien Property Custodian, to whom every concern in United States issuing shares of stock or certificates representing beneficial interests shall report names of any officers, directors, or stockholders as it may have reason to believe are enemies or allies of enemy. Every person in the United States indebted to, or holding property, beneficial or otherwise, on behalf of enemy or ally of enemy must report same to Alien Property Custodian. The President may require such money or property owing or belonging to or held for, by, on account of, on behalf, or for the benefit of enemy or ally of enemy not holding license, to be conveyed, transferred, assigned, delivered or paid over to Alien Property Custodian.
Terms “enemy” or “ally of enemy” deemed respectively to mean government of any nation with which United States is at war or ally of such nation, or any political or municipal subdivisions, officers, officials, agents, or agencies thereof; or any individual, partnership, or other body of individuals of any nationality resident within territory of such nation or ally of such nation, or resident outside United States and doing business within such territory, and any corporation incorporated within such territory, or incorporated within any country other than United States and doing business within such territory. The President may by proclamation include within these terms such other individuals, or body or class of individuals, as may be natives, citizens, or subjects of any nation with which United States is at war or ally of such nation, other than citizens of United States, wherever resident or doing business.