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on the north side of S Street, between Phelps Place and 230 Street, Northwest.

It will be noticed that this property is distinct from the site of the German Legation [Embassy] and disconnected therewith.

I shall appreciate your consideration of this matter, in connection with the former rulings of your Department, and your advice as to whether this property is subject to a proper demand of my office. Yours respectfully,

A. MITCHELL PALMER

File No. 763.72113/596
The Alien Property Custodian (Palmer) to the Secretary of State

WASHINGTON, June 24, 1918.

[Received June 28.] Sir: A considerable number of reports have been made to this office by Swedish consuls in charge of Austrian interests, and Swiss consuls in charge of German interests, in respect to certain funds held by these consuls respectively. The funds to which I refer are held by the consuls as the successors to Austrian or German consuls who at the time of the break in diplomatic relations were either (1) acting as administrators of Austrian or German nationals, respectively, who had died in this country, or (2) acting as collection agents for Austrian or German subjects, resident in their respective countries, of the beneficial interest of such subjects in estates being administered in the United States.

Unless there is some diplomatic reason to the contrary, I propose to make formal demand, in the usual form, upon the Swedish and Swiss consuls in charge respectively of Austrian and German interests, for the delivery of this enemy property to me. Respectfully,

A. MITCHELL PALMER

File No. 701.6211/452

The Secretary of State to the Alien Property Custodian (Palmer)

WASHINGTON, July 8, 1918. Sir: Referring to your letter of May 28, 1918 (Tr. No. F-555-CB report No. 3400), relating to certain property in the District owned by the German Government, I beg to state that this Department does not consider that the property should be taken over by your office. I am [etc.]

ROBERT LANSING

File No. 763.72113/596
The Secretary of State to the Alien Property Custodian (Palmer)

WASITINGTON, July 27, 1918. Sir: The Department has received your letter of June 24, 1918, respecting certain funds held by Swedish consuls and Swiss consuls, in charge of Austro-Hungarian and German interests in the United States, respectively, in which you state that unless there is some diplomatic reason to the contrary you propose to make formal demand, in the usual form, upon the Swedish and Swiss consuls for the delivery to you of the enemy property in question.

In reply you are informed that this Department perceives of no reason why you should not carry out the action proposed. I am [etc.]

For the Secretary of State:

WILLIAM PHILLIPS

Assistant Secretary

File No. 763.72113/700
The Secretary of State to the Alien Property Custodian (Palmer)

WASHINGTON, October 16, 1918. Sir: The Department acknowledges the receipt of your letter of September 24, 1918, in which you state that among the property of enemies reported to you under the provisions of the Trading with the Enemy Act, is certain property which is stated to belong to persons who it develops are the wives of persons who, while in this country, were consular representatives of an enemy government, and that where the wives are enemies you propose to require that such property shall be delivered to you under the provisions of the said act, unless there is some diplomatic reason to the contrary. You state that the property to which you refer will be divided into four classes as follows:

(1) Household furniture.
(2) Residences which were not used as consular offices.
(3) Other real estate held as an investment and not used for

consular purposes. (4) Stocks, bonds, mortgages, and other securities. You further request me to advise you if there should be any diplomatic objection to the course of action which you propose.

In reply the Department informs you that it would appear that the property mentioned in classes (3) and (4) may properly be taken over by your office, since the private investments of diplomatic or consular officers in the United States, or their wives, whether real or personal which could not be regarded as pertaining to them in their diplomatic or consular capacity, should not be exempt from local jurisdiction and should not enjoy diplomatic immunity which attaches to the official property or personal effects of a diplomatic or consular officer which are regarded as a means or instrumentality for exercising his official functions.

*Not printed.

The property mentioned in class (2), however, in so far as it might consist of the residence of the consul and his family when in the United States, and certainly the household goods mentioned in class (1), if used by the consul's family when here, ought not to be taken over in view of the attitude expressed by the German Government in April last at the time of the reported seizure of Ambassador Gerard's property in Germany, to the effect that the German Government was disposed to respect the property of American diplomatic and consular officers in Germany on the basis of reciprocity. It is the Department's view that a similar attitude ought to be adopted with respect to the property of the wives of former AustroHungarian consuls in this country. To take over the property mentioned in classes (1) and (2) would probably result in retaliatory measures being adopted by the enemy governments. I am [etc.]

For the Secretary of State:

WILLIAM PHILLIPS

Assistant Secretary

ENEMY PROPERTY IN CERTAIN LATIN AMERICAN COUNTRIES:

RECOMMENDATIONS OF THE UNITED STATES

Brazil: German Banks

File No. 763.72112/4086

The Ambassador in Brazil (Morgan) to the Secretary of State

[Telegram]

P
p. m.]

RIO DE JANEIRO, July 21, 1917, 4 p. m.

[Received July 22, 8.20 ገ. Referring to the Department's telegram of June 20 regarding trade with the enemy. Under arrangements between Embassy and British Legation, Commercial Attaché Downs and an official of British Consulate have conferred regarding British statutory list relative to Rio de Janeiro. Examination of lists relative to other Brazilian ports under way.

* Foreign Relations, 1917, Supplement 2, vol. II, p. 882.

There are 326 banks, corporations, firms, and individuals on Brazilian list which can be separated into three general classes : (1) Those which are undoubtedly German. These number 73

in Rio de Janeiro. (2) Those which serve as cloaks for German enterprises. These

number 21 in Rio de Janeiro. Some of them are bogus

firms. (3) Firms and individuals, many of which are Brazilian, which

have or have had dealings with German houses or individuals in Brazil, in certain cases only on a certain

occasion. These number 12 in Rio de Janeiro. The occasional furnishing of supplies to German cruisers and raiders off the coast is the only military service any of these three classes appear to have rendered.

The Brazilian Government will be gratified if the American Government finds it inadvisable for the present to establish a statutory list for this country, believing that the development of trade relations between the United States and Brazil will be embarrassed to the advantage of America's commercial rivals. Embassy believes that danger to be a real one.

MORGAN

File No. 763.72112/5272
The Ambassador in Brazil (Morgan) to the Secretary of State

[Telegram]
RIO DE JANEIRO, October 27, 1917, 5 p. m.

[Received 11.45 p. m.] Brazilian Government desires to follow precedents established by the United States regarding war measures relative to enemy's banks, banking agencies, commercial houses, and property in the United States. Information requested by telegraph.

MORGAN

File No. 763.72112/5353

The Secretary of State to the Ambassador in Brazil (Morgan)

[Telegram]

WASHINGTON, November 1, 1917, 8 p. m. French Ambassador has informed the Department that he has received instructions from his Government to bring to the attention of United States a report that there is an active movement to send German capital to Spain from South America and particularly from Brazil. This transfer of funds is being made by intermediaries at Rio de Janeiro and at Madrid either through Allied, American,

You may

Brazilian, or neutral banks. The National City Bank of New York is mentioned.

You are instructed to bring this matter to the attention of the Brazilian Government and express the hope that it will take steps to have Brazilian banks discontinue this practice ... state that this Government is bringing matter to attention of American banks in order that such transactions may be discontinued by them.

Department desires you to take this matter up with the manager of the branch of the National City Bank.

Department informed French Minister has instructions to make representations to Brazilian Government along these lines; you may take similar but not identic action.

LANSING

File No. 763.72112/5272
The Secretary of State to the Ambassador in Brazil (Morgan)

[Telegram]

WASHINGTON, November 12, 1917, 5 p. m. 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, regranted 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, as modified by proclamation of July 13, 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

*Ante, p. 256.

Ante, p. 260.

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