840.51 Frozen Credits/8476a: Telegram
The Secretary of State to the Ambassador in China (Gauss)
1114. To Adler from Secretary of the Treasury. Information has come into the Treasury that persons in the United States are transferring funds to persons in unoccupied China under General License No. 75 and then sending instructions by letter or cable to these persons in unoccupied China directing them to forward the funds to persons in occupied China.
The Treasury is considering whether or not the sending such instructions should be prohibited on the grounds of being contrary to Treasury’s General Ruling No. 11 which prohibits direct and indirect transactions involving trade or communication with the enemy and enemy occupied territory and nationals thereof.
The Treasury would appreciate your comments and suggestions on this problem including (a) the attitude of the Government of China on such remittances, and (b) the existing controls on remittances from Free to occupied China. [Morgenthau.]