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of the Casa Grande Sugar Plant, established by the Peruvian Government, be practically included in the United States trading with the enemy list. With a license to discount drafts received in payment of sugar and with no facilities to transport or dispose of the sugar, the Peruvian administrator would be placed in a sorry plight, which evidently was not intended by the United States Government. Neither could it be the purpose of the United States Government to recognize an administrator who, being denied the necessary means to maintain and operate the Plant, would be unable to discharge his duties.

I, therefore, have the honor to renew the request contained in my note of May 20, 1918, that due notice be given the proper officials of the United States Government that the sale and purchase of articles and products and the discount of drafts, effected by the general administrator appointed by my Government, be not subject to the restrictions existing against the maintenance of trade relations between American individuals or corporations, and enemy individuals or corporations.

My Government thoroughly appreciates the spirit in which the Government of the United States has acceded to its request in the matter, and trusts that in order to make these concessions fully effective, all the necessary facilities will be granted the Peruvian administrator of the Plant to operate it, pending the authorization of the owners thereof, to dispose through the said administrator, of their shares in the property or of the property itself. Accept [etc.]

M. DE FREYRE

File No. 763.72112C26/84

The Secretary of State to the Peruvian Minister (De Freyre)

No. 172

WASHINGTON, June 18, 1918. Sir: I have the honor to acknowledge the receipt of your note of the 5th instant with reference to the provisional license granted to the Mercantile Bank of the Americas and its correspondents in Peru, whereby the operation of the statute of the United States known as the Trading with the Enemy Act, is suspended in order to permit this bank to finance shipments to Chile of sugar produced at the Casa Grande, a German-owned estate.

I note your request that the sale and purchase of articles and products and the discount of drafts, effected by the general administrator of the Estate appointed by your Government, be not subject to the restrictions existing against the maintenance of trade relations between American individuals or corporations and enemy individuals or corporations.

I beg to assure you that this Government is desirous of acceding to the request of the Peruvian Government in so far as may be compatible with the interests of the United States, and of making effective the provisional license which it has granted in connection with the shipment of Casa Grande sugar to Chile.

This Government has also taken such steps as were within its power to facilitate the actual transportation to Chile of certain quantities of sugar produced at the Casa Grande Estate, in addition to issuing the license already granted to permit the financing of these shipments. The Mercantile Bank has been authorized by this Government, if it shall be so requested by the administrator of the Casa Grande Estate, to finance the shipments of sugar which have been carried or are to be carried by the steamships Rancagua, Iquitos and Elizabeth, and other carriers during the period of the temporary license. This Government has further authorized the American Minister at Lima to make public announcement to American citizens in the Republic of Peru that the transportation of sugar now under way or to take place during the period of the temporary license by the steamships Iquitos and Elizabeth or any other carrier is considered by this Government to come within the spirit of the temporary license already granted to the Mercantile Bank, and that this Government will not, on account of these transactions, regard these vessels or the owners or masters thereof as subject to any restriction, in obtaining American facilities, which might be imposed by this Government on account of their having engaged in the carriage of enemy property.

It is, therefore, not clear to my Government, that any additional steps other than those mentioned above are required to insure the actual exportation of the sugar from Peru to Chile and my Government deems it undesirable and unnecessary to grant permission to those who owe allegiance to the United States to resume other commercial relationships with the Casa Grande Estate so long as this Estate is owned by persons classed as enemies by the legislation of the United States.

I am, however, constrained to call your attention most urgently to the fact that, although this Government, at the request of the Government of Peru, has thus gone so far as to suspend the effect of the Enemy Trading Act in the case of exportation of sugar to Chile from the Casa Grande Estate, as evidenced by the foregoing and my notes of May 6 and June 3, and as to facilitate the actual transportation of the sugar from there to Chile as cited above, the owners of the Casa Grande Estate have not as yet so far as I am advised, conferred a power of sale upon the administrator, as specifically referred to in my notes above cited, although it would seem that ample time for this purpose had already elapsed.

I am, therefore, under the necessity of advising you that, unless within 15 days from today the owners of the Casa Grande Estate shall have conferred upon the administrator full and complete authority to make an absolute and bona fide sale of the Estate, which was one of the conditions under the terms of my note of June 3 upon which the continuance of the above-mentioned temporary license was made to depend, this Government will be obliged to revoke the license already granted and to cancel from that date any and all suspensions of the effects of its statutes as applied to all vessels, their masters or owners, as well as to any other person, who shall thereafter participate in the transportation of such sugar. Accept [etc.]

ROBERT LANSING

File No. 763.72112C26/110

The Peruvian Minister (De Freyre) to the Secretary of State

WASHINGTON, July 10, 1918.

[Received July 11.] SIR: Acting under instructions from my Government, I have the honor to inform you that the representatives in Peru of the Casa Grande Estate have delivered to the American Mercantile Bank at Lima a cablegram addressed to the directory of the firm at Bremen, requesting full power to dispose of the Estate.

In your note of May 6, 1918, you kindly advised me that a temporary license would be granted, permitting American banks or bankers, or their branches in Peru, to finance the marketing of Casa Grande sugar in Chile, pending, among other conditions, a prompt decision by the owners of the Casa Grande Estate as to whether they would authorize the Peruvian administrator of the Estate to make a sale of any or all of the shares of the corporation-or of the Estate itself should such a course seem preferable—in such a manner as would safeguard the interests of the present owners of the Plant.

As my Government holds that the attitude of the representatives in Peru of the Casa Grande Estate should be considered as a manifestation of a decision to make a sale of the property, such as required by your aforementioned note of May 6, 1918, I am furthermore instructed to request that the provisional administration of the Estate established by my Government be permitted to continue operating the Plant under a license from your Government, since all the provisions stipulated by you have been, in my Government's judgement, fully complied with. Accept [etc.]

M. DE FREYRE

File No. 763.72112C26/119
The Peruvian Minister (De Freyre) to the Secretary of State

WASHINGTON, July 27, 1918.

[Received July 29.] SIR: I am instructed by my Government to advise you, as I hereby have the honor to do, that my Government has resolved to terminate the administration it had established at the Casa Grande Sugar Plant, in view of the fact that the owners of the Estate do not seem prepared to give the Peruvian administrator full power to dispose of the property in the unconditional form required by the Government of the United States.

I have furthermore the honor to inform you that, in conformity with what was agreed in the matter, the net earnings of the Plant, proceeding from sales effected under my Government's administration, will be deposited in the Caja de Depósitos y Consignaciones. Accept [etc.]

M. DE FREYRE

File No. 763.72112C26/110

The Secretary of State to the Peruvian Minister (De Freyre) No. 195

WASHINGTON, August 8, 1918. SIR: I have the honor to refer to your note of July 10, 1918, with reference to the request of your Government that the provisional administration of the Casa Grande Estate be permitted to continue operating under a license of this Government, and to your note of July 27, 1918, stating that your Government has resolved to terminate the administration which was established at the Casa Grande Sugar Plant, and to inform you that the Department understands that the request made in your note of July 10 is withdrawn in view of the information contained in your subsequent note referred to. Accept [etc.]

For the Secretary of State:

WILLIAM PHILLIPS

*On Apr. 12, 1920, the Secretary of State informed the Appointed Ambassador of Peru that “this Government does not object to the delivery of the funds in question to their legitimate owners." (File No. 311.625D18/5.)

IV

TRADING WITH THE ENEMY

TRADING WITH THE ENEMY AND WITH ALLIES OF THE ENEMY

File No. 811.712/65

Order No. 212 of the Postmaster General (Burleson)1

WASHINGTON, April 6, 1917. In consequence of the state of war now existing, the suspension of the exchange of postal money orders between the United States and the German Empire is hereby directed.

Postmasters at all international money-order offices will govern themselves accordingly. On and after this date they should refuse to issue orders on post offices in the German Empire or any of its colonies or dependencies. They should also decline to pay orders drawn upon them by German offices on or after the 6th day of April.

A. S. BURLESON

File No. 811.712/65

Order No. 211 of the Postmaster General (Burleson)

1

WASHINGTON, April 7, 1917. Ordered that, during the continuance of hostilities between the United States and Germany, no letters, packages, or other mail matter originating within the United States or its possessions and destined for Germany, or addressed to any post office, port, or other place within the jurisdiction of Germany, or to any person residing within the jurisdiction of Germany, shall be dispatched from the United States to their said destination; provided, however, that nothing herein contained shall be construed to authorize the seizure or detention of any foreign closed transit mails for Germany originating in other foreign countries or originating in Germany and destined for any other foreign country (not her colony or dependency) while in transit over territory of the United States, which closed mails should be returned by the United States exchange office first receiving them to the country whence received accompanied by

1

* From the Daily Bulletin of Orders Affecting the Postal Service, Apr. 7, 1917.

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