MALACAÑANG PALACE
Manila

BY THE PRESIDENT OF THE PHILIPPINES

Proclamation No. 556

PUBLISHING EXECUTIVE ORDERS BY THE PRESIDENT OF THE UNITED STATES, GENERAL RULINGS AND REGULATIONS BY THE SECRETARY OF THE TREASURY OF THE UNITED STATES, AND ANNOUNCEMENTS BY THE OFFICE OF THE UNITED STATES HIGH COMMISSIONER, ISSUED FROM JANUARY 15, 1934 TO MAY 13, 1940, RELATING TO PROPERTY IN WHICH NORWAY, DENMARK, BELGIUM, THE NETHERLANDS, LUXEMBOURG, OR NATIONALS THEREOF HAVE AN INTEREST.

Whereas the President of the United States did. on January 15, 1934 and April 10, 1940, issue the following Executive Orders:

1. "EXECUTIVE ORDER NO. 6560, REGULATING TRANSACTIONS IN FOREIGN EXCHANGE, TRANSFERS OF CREDIT, AND THE EXPORT OF COIN AND CURRENCY

"By virtue of the authority vested in me section 5 (b) of the Act of October 6, 1917 (40 Stat. L. 411) as amended by section 2 of the Act of March 9, 1933, entitled ‘An Act to provide relief in the existing national emergency in banking and for other purposes,’ I Franklin D. Roosevelt, President of the United States of America, do declare that a period of national emergency continues to exist, and by virtue of said authority and of all other authority vested in me, do hereby prescribe the following regulations for the investigation, regulation, and prohibition of transactions in foreign exchange, transfers of credit between or payments by banking institutions as herein defined, and of currency or silver coin, by any person within the United States or any place subject to the jurisdiction thereof:

"SECTION 1. Every transaction in foreign exchange, transfer of credit between any banking institution within the United States and any banking institution outside of the United States (including any principal, agent, home office, branch, or correspondent outside of the United States of a banking institution within the United States), and the export or withdrawal from the United States of any currency or silver coin which is legal tender in the United States, by any person within the United States, is hereby prohibited, except under license therefor issued pursuant to this executive order: Provided, however, that, except as prohibited under regulations prescribed by the Secretary of the Treasury, foreign exchange transactions and transfer of credit may be carried out without a license for (a) normal commercial or business requirements, (b) reasonable traveling and other personal requirements. or (c) the fulfillment of legally enforceable obligations incurred prior to March 9, 1933.

"SEC. 2. Possessions of the United States—Except as prohibited in regulations prescribed by the Secretary of the Treasury, transfers of credit between banking institutions in the continental United States and banking institutions in other places subject to the jurisdiction of the United States (including principals, agents, home offices, branches, or correspondents m such other places, of banking institutions within the continental United States), may be carried out without a license,

"SEC. 3. Licenses.—The Secretary of the Treasury, acting directly or through any agencies that he may designate, and the Federal Reserve banks, acting in accordance with such rules and regulations as the Secretary of the Treasury may from time to time prescribe, are hereby designated as agencies for the granting of licenses as hereinafter provided. Licenses may be granted authorizing such transactions in foreign exchange, transfers of credit and exports of currency (other than gold certificates) or silver coin in such specific cases or classes of cases as the Secretary of the Treasury may determine in regulations prescribed hereunder and rulings made pursuant thereto.

"SEC. 4. Reports.—The Federal Reserve banks shall keep themselves currently informed as to foreign exchange transactions entered into or consummated, and transfers of credit made between banking institutions outside of the continental United States and banking institutions in their districts, and report to the Secretary of the Treasury all transactions in foreign exchange and all such transfers of credit not permitted under sections 1 and 2 hereof which are effected or attempted in their districts without a license.

"SEC. 5. Regulations.—The Secretary of the Treasury is authorized and empowered to prescribe from time to time regulations to carry out the purposes of this order, and to provide in such regulations or by rulings made pursuant thereto, the conditions under which licenses may be granted by the Federal Reserve banks and by such other agencies as the Secretary of the Treasury may designate; and the Secretary of the Treasury may require any person engaged in any transaction, transfer, export, or withdrawal referred to in this executive order to furnish under oath complete information relative thereto, including the production of any books of account, contracts. letters. or other papers, in connection therewith in the custody or control of such person either before or after such transaction, transfer, export, or withdrawal completed.

"‘SEC. 6. Penalties.—Whoever willfully violates or knowingly participates in the violation of any provision of this executive order or of any license, order, rule or regulation issued or prescribed hereunder, shall be subject to the penalties provided in section 5(b) of the Act of October 6, 1917, as amended by the Act of March 9, 1933.

"SEC 7. Definitions.—As used in this executive order the term ‘United States’ means the United States and any place subject to the jurisdiction thereof; the term ‘continental United States’ means the states of the United States, the District of Columbia, and the Territory of Alaska; the term ‘person’ means an individual, partnership, association, or corporation; and the term ‘banking institution’ includes any person engaged primarily or incidentally in the business of banking, of granting or transferring credits, or of purchasing and selling foreign exchange or procuring purchasers and sellers thereof, as principal or agent; and, for the purposes of this order, each home office, branch, principal, agent, of correspondent of any person so engaged shall be regarded as a separate ‘banking institution.’

"SEC. 8. Section 8 of the executive order of August 28, 1933, relating to the hoarding, export, and earmarking of gold coin, bullion, or currency and to transactions in foreign exchange, is hereby revoked. "This executive order and any rules, regulations. or licenses prescribed or issued hereunder may be modified or revoked at any time.

"FRANKLIN D. ROOSEVELT

"THE WHITE HOUSE,
"January 15, 1934";

2. "AMENDMENT OF EXECUTIVE ORDER NO. 6560, DATED JANUARY 15, 1934, REGULATING TRANSACTIONS IN FOREIGN EXCHANGE, TRANSFERS OF CREDIT, AND THE EXPORT OF COIN AND CURRENCY.

"By virtue of the authority vested in me by section 5 (b) of the Act of October 6, 1917 (40 Stat. 411) as amended by section 2 of the Act of March 9, 1933(48 Stat. 1), and by virtue of all other authority vested in me, I, Franklin D. Roosevelt, President of the United States of America, do hereby amend Executive Order No. 6560, dated January 15, 1934, regulating transactions in foreign exchange, transfers of credit, and the export of coin and currency by adding the following sections after section 8 thereof:

" ‘SEC. 9. Notwithstanding any of the provisions of sections 1 and 8, inclusive, of this Order, all of the following are prohibited, except as specifically authorized in regulations or licenses issued by the Secretary of the Treasury pursuant to this Order, if involving property in which Norway or Denmark or any national thereof has at any time on or since April 8, 1940, had any interest of any nature whatsoever, direct or indirect:

" ‘A. All transfers of credit between any banking institutions within the United States; and all transfers of credit between any banking institution within the United States and any banking institution outside the United States (including any principal, agent, home office, branch, or correspondent outside of the United States, of a banking institution within the United States);

" ‘B. All payments by any banking institution within the United States;

" ‘C. All transactions in foreign exchange by any person within the United States;

" D. The export or withdrawal from the United States, or the earmarking of gold or silver coin or bullion or currency by any person within the United States; and

" ‘E. Any transaction for the purpose or which has the effect of evading or avoiding the foregoing prohibitions.

" ‘SEC. 10. Additional Reports.—

" ‘A. Reports under oath shall be filed on such forms, at such time or times and from time to time, and by such persons, as provided in regulations prescribed by the Secretary of the Treasury, with respect to all property of any nature whatsoever of which Norway or Denmark or any national thereof is or was the owner or in which Norway or Denmark or any thereof has or had an interest of any nature whatsoever, direct or indirect, and with respect to any acquisition, transfer, disposition, or any other dealing in such property.

" ‘B. The Secretary of the Treasury may require the furnishing under oath of additional and supplemental information, including the production of any books of account, contracts, letters or other papers with respect to the matters concerning which reports are required to be filed under this section.

" ‘SEC. 11. Additional Definitions.—In addition to the definitions contained in section 7, the following definitions are prescribed:

" ‘A. The terms "Norway" and "Denmark," respectively. mean the State and the Government of and Denmark on April 8, 1940, and any political subdivisions, agencies and instrumentalities thereof, including territories, dependencies and possessions, and all persons acting or purporting to act directly or indirectly for the benefit or on behalf of the foregoing. The terms "Norway" and "Denmark." respectively, shall also include any and all other governments (including political subdivisions, agencies, and instrumentalities thereof and persons acting or purporting to act directly or indirectly for the benefit or on behalf thereof) to the extent and only to the extent that such governments exercise or claim to exercise de jure or de facto sovereignty over the area which, on April 8, 1940, constituted Norway or Denmark.

" ‘B. The term "national" of Norway or Denmark shall include any person who has been or whom there is reasonable cause to believe has been domiciled in, or a subject, citizen or resident of Norway or Denmark at any time since April 8, 1940, but shall not include any individual domiciled and residing in the United States on April, 8, 1940, and shall also include any partnership, association, or other organization, including any corporation organized under the laws of, or which on April 8, 1940, had its principal place of business in Norway or Denmark or which on or after such date has been controlled by, or a substantial part of the stock, shares, bonds, debentures, or other securities of which has been owned or controlled by, directly or indirectly, one or more persons, who have been, or whom there is reasonable cause to believe have been, domiciled in, or the subjects, citizens or residents of Norway or Denmark at any time on or since April 8, 1910, and all persons acting or purporting to act directly or indirectly for the benefit or on behalf of the foregoing.

" C. The term "banking institution" as used in section 9 includes any person engaged primarily or incidentally in the business of banking, of granting or transferring credits, or of purchasing or selling foreign exchange or procuring purchasers and sellers thereof, as principal or agent, or any person holding credits for others as a direct or incidental part of his business, or brokers; and, each principal, agent, home office, branch or correspondent of any person so engaged shall be regarded as a separate "banking institution."

" ‘SEC. 12. Additional Regulations.—The regulations of November 12, 1934, are hereby modified insofar as they are inconsistent with the provisions of sections 9 to 11, inclusive, of this Order, and except as so modified are hereby continued in full force and effect. The Secretary of the Treasury is authorized and empowered to prescribe from time to time to carry out the purposes of section, 9 to 11, inclusive, of this Order as amended, and to provide in such regulations or by rulings made pursuant thereto, the conditions under which licenses may be granted by such agencies as the Secretary of the Treasury may designate.’

"FRANKLIN D. ROOSEVELT

"THE WHITE HOUSE,
"April 10, 1910. 6 P. M. E. S. T‘.";

Whereas the Secretary of the Treasury of the United States did, on April 15, April 19. and May 10, 1940, issue the following general rulings and regulations:

3. "GENERAL RULING NO. 1 UNDER EXECUTIVE ORDER NO. 8389, APRIL 10, 1949, AND REGULATIONS ISSUED PURSUANT THERETO. RELATING TO TRANSACTIONS IN FOREIGN EXCHANGE, ETC.

"The Secretary of State has advised me as follows:

" ‘Denmark and Iceland are two separate political entities. Acting under the authority of a provision of the Icelandic Constitution the Icelandic Parliament has within the past few days passed a resolution stating that since the King of Iceland is not now in a position to carry out his Constitutional duties with respect to Iceland, the Icelandic Government has assumed for the time being the exercise of the Royal prerogatives and the entire control of Icelandic foreign relations.

" ‘In view of the foregoing it would not appear that Iceland falls within the definition of the term "Denmark" in section 11 of the above-mentioned Executive Order.’

"In view of the foregoing, the Treasury Department construes the term ‘Denmark’ as used in the above-mentioned Executive Order and Regulations as not applying to Iceland.

"H. MORGENTHAU, Jr.
"Secretary of the Treasury

"Dated April 15, 1940″;

4. "GENERAL RULING NO. 2 UNDER EXECUTIVE ORDER NO. 8389, APRIL 10, 1940 AND REGULATIONS ISSUED PURSUANT THERETO, RELATING TO TRANSACTIONS IN FOREIGN EXCHANGE, ETC.

"Inquiry has been made as to whether the following are prohibited by the Executive Order and the Regulations issued thereunder except under license:

"(a) The transfer by a banking institution within the United, States of stock certificates from or into the names of ‘nationals’ of Norway or Denmark; and

(b) The delivery out of custody accounts or the receipt in custody accounts, by a banking institution within the United States, of securities held or to be held in custody for ‘nationals’ of Norway or Denmark.

"The Treasury Department construes the Executive Order and Regulations as prohibiting such transactions, except under license.

"H. MORGENTHAU, JR.
"Secretary of the Treasury

"Dated April 19, 1940";

"TREASURY DEPARTMENT
"OFFICE OF THE SECRETARY
"May 10, 1940

"AMENDMENT TO REGULATIONS

"The Regulations of April 10, 1940, are amended to read as follows:

"REGULATIONS

"Relating to Transactions in Foreign Exchange Transfers of Credit, Payments, and the Export or Withdrawal of Coin, Bullion and Currency, and Transfers, Withdrawals and Exportat.ons of. Or Dealings in, Evidences of Indebtedness or Ownership. and Reports of Foreign Property Interest in the United States.

"SEC 130. 1. Authority for regulations.—These regulations are prescribed and issued under authority of section 5 (b) of the Act, of October 6, 1917 (40 Stat. 411), as amended, and by Executive Order No. 6560, dated January 15, 1934, as amended.

"Sec 130. 2. Definitions.—

"(a) The term ‘Order’ shall refer to Executive Order No. 6560, of January 15, 1934, as amended.

"(b) The term ‘Regulations’ shall refer to these regulations,

"(c) The terms ‘property’ and ‘property interest’ or ‘property interests’ shall include, but not by way of limitation, money, checks, drafts, bullion, bank deposits, savings accounts, any debts, indebtedness or obligations, financial securities commonly dealt in by bankers, brokers, and investment bonuses, notes, debentures, stocks, bonds, coupons, bankers acceptances, mortgages, pledges, liens or other right in the nature of security, warehouse receipts, bills of lading, trust receipts, bills of sale, any other evidences of title or ownership or indebtedness, goods, wares, merchandise, chattels, stocks on hand, ships, goods on ships, real estate mortgages, vendors’ sales agreements, land contracts, real estate and any interest therein, leaseholds, ground rent, options, negotiable instruments, trade acceptances, royalties, book accounts, accounts payable, judgments, patents, trademarks, copyrights, insurance policies, safe deposit boxes and their contents, annuities, etc.

"(d) Safe deposit boxes shall be deemed to be in the ‘custody’ not only of all persons having access thereto but also of the lessors of such boxes whether or not such lessors have access to such boxes. The foregoing shall not in any way be regarded as a limitation upon the meaning of the term ‘custody.’

"(e) For the meaning of other terms reference should be made to the definitions contained in the order.

"SEC 130 3. Licenses to engage in foreign exchange transactions, etc.—Application for licenses to engage in foreign exchange transactions, transfers of credit, payments, the export or withdrawal from the United States or the earmarking of gold or silver coin or bullion or currency, or the transfer, withdrawal or exportation of, or dealing in, any evidences of indebtedness or evidences of ownership of property. involving property in which Norway or Denmark or any national thereof has at any time or April 8, 1940 had any interest of any nature whatsoever, direct or indirect, or in which the Netherlands. Belgium or Luxembourg or any national thereof has at any time on or since May 10, 1940 had any interest of any nature whatsoever, direct or indirect, shall be filed in duplicate with the Federal Reserve Bank of the district or the Governor or High Commissioner of the territory or possessions of the United States in which the applicant resides or has his place of business or principal office or agency, or with the Federal Reserve Bank of New York if the applicant has no legal residence or principal place business or principal office or agency in a Federal Reserve District of a territory or possession of United States. Application forms may be obtained from, any Federal Reserve Bank. mint, or assay office, or the Secretary of the Treasury, Washington, D C. Applications shall be executed under oath before an officer authorized to administer oaths, or if executed outside the United States, before a diplomatic or consular officer of the United States. The applicant shall furnish such further information as shall be required of him by the Secretary of the Treasury or the Federal Reserve Bank or other agency at which the application is filed. Licenses will be issued by the Secretary of the Treasury, acting directly or through any agencies that he may designate, and by the Federal Reserve Bank acting in accordance with such rules, regulations and instructions as the Secretary of the Treasury may from time to time prescribe, insuch cases or classes of cases as the Secretary of Treasury may determine in rules, regulations, and instructions prescribed by him. The Federal Reserve Bank or other agency at which an application is filed will advise the applicant of the granting or denial of the license. Licenses for the export or withdrawal of currency or gold or silver coin or bullion or evidences of indebtedness or evidences of ownership or property, after having been cancelled by the Collector Customs or the Postmaster through whom the exportation or withdrawal was made, may be returned by such Collector of Customs or Postmaster to the licenses. Appropriate forms for applications and licenses will be prescribed by the Secretary of the Treasury. Licenses may be required to fill reports upon the consummation of the transactions. The decision of the Secretary of the Treasury with respect to the approval or disapproval of an application shall be final.

"SEC. 130. 4. Reports of property interests of Norway, Denmark, the Netherlands, Belgium, Luxembourg and nationals thereof.

"(a) On or before May 15, 1940, reports shall be filed on Form TFR-100, duly executed under oath, containing the information called for in such form, with respect to all property situated in the United States on April 8, 1940, in which Norway or Denmark or any national thereof has at any time on or since April 8, 1940, had any interest of any nature whatsoever, direct or indirect. Within 30 days of the publication of these regulations in the Federal Register, reports shall be filed on Form TFR-100, duly executed under oath, containing the information called for in such form, with respect to all property situated in the United States on May 10, 1940, in which the Netherlands, Belgium or Luxembourg or any national thereof has at anytime on or since May 10, 1940 had any interest of any nature whatsoever, direct or indirect. Such reports shall be filed by:

(1) Every person in the United States directly or indirectly holding or having title to. or custody control, or possession of such property including’. without any limitation whatsoever of the foregoing, partnership, association, or corporation organized under the laws of the United States or any State or Territory of the United States, or having its principal place of business in the United States, in the shares of whose stock or in whose debentures, notes, bonds, coupons, or other obligations or securities Norway or Denmark or any national thereof has at any time on or since April 8, 1940 had any interest of any nature whatsoever, direct or indirect, or in which the Netherlands, Belgium, or Luxembourg or any national thereof has at any time on or since May 10, 1940, had any interest of any nature whatsoever, direct or indirect; and

(2) Every agent or representative in the United States for Norway, Denmark, the Netherlands, Belgium or Luxembourg or any national thereof having any information with respect to any such property.

Provided, That no report on Form TFR-100 need be filed where the total value of all property interests to be reported is less than $250.

"(b) Reports shall be executed and filed in triplicate with the Federal Reserve Bank of the district or the Governor or High Commissioner of the territory or possession of the United States in which the party filing the report resides or has hit principal place of business or principal office or agency, or if such party has no legal residence or principal place of business or principal office or agency in a Federal district or a territory or possession of the United States, then with the Federal Reserve Bank of New York. A report shall be deemed to have been filed when it is received by the proper Federal Reserve Bank or other agency or when it is properly addressed and mailed and bears a postmark dated prior to midnight of the date upon which the report is due. The Federal Reserve Bonk and other agencies shall promptly forward two copies of every report filed with it to the Secretary of the Treasury.

"(c)

(1) All spaces in the report must be properly filled in. Reports found not to be in proper order, or lacking in essential details, shall not be deemed to have been filed in compliance with the order.

(2) Where space in the report form does not permit full answers to questions, the information required may be sent forth in supplementary papers incorporated by reference to the report and submitted therewith. Supplementary documents and papers must be referred to in the principal statement in chronological or other appropriate order and be described in such manner that they can be identified.

"(d) A separate report under oath must be filed by each person required to file a report except that persons holding property jointly may file a joint report

"(e) The Secretary of the Treasury may, in his discretion, grant such extensions of time as he deems advisable for the making of any or all of the reports required by these regulations.

"(f) Report Form TFR-100 may be obtained from any Federal Reserve Bank, mint, or assay office and the Secretary of the Treasury, Washington, D. C.1âwphi1

"SEC. 130. 5. Penalties.—Section 5 (b) of the Act of October 6, 1917, as amended by section 2 of the Act of March 9, 1933, provides in part:

"‘…Whoever willfully violates any of the provisions of this subdivision or of any license, order, rule or regulation issued thereunder, shall, upon conviction, be fined not more than $10,000 or if a natural person, may be imprisoned for not more than 10 years, or both; and any officer, director, or agent of any corporation who knowingly participate, in such violation may be punished by a like fine, imprisonment, or both. As used in this subdivision the term "person" means an individual, partnership, association, or corporation.’

"Sec. 130. 6. Modification or revocation.—These regulations and any forms or instructions issued hereunder may be modified or revoked at any time.

"HENRY MORGENTHAU, JR.
"Secretary to the Treasury

"Approved: May 10, 1940, 7.55 A. M., E. S. T.

"FRANKLIN D. ROOSEVELT";

Whereas the Office of the United States High Commissioner to the Philippines did, on May 9 and 13, 1940, issue the following announcements:

6.

May 9, 1940

"The High Commissioner has been informed that he has been designated by the Secretary of the Treasury as the person to administer Executive Order of April 10, 1940, amending Executive Order No. 6560, and the Regulations of the Treasury Department of that date, relating to property in which Norway or Denmark or nationals thereof are interested.

"According to information received from the Secretary of the Treasury, the High Commissioner is authorized to receive applications for licenses and to request applicants to file under oath with the applications any additional information which may be deemed appropriate. Where circumstances require prompt action with respect to applications, he is authorized to grant licenses for transactions which are not inconsistent with the purposes of the Executive Order, provided that he is satisfied that the applications cover normal commercial and business requirements or reasonable traveling and other personal requirements. In cases in which the High Commissioner is authorized to issue licenses, licenses may be granted in appropriate cases authorizing customary transactions during one-week periods within fixed dollar limits. In such cases licenses required to file reports promptly at the end of each one-week period setting forth all of the transactions consummated during such period.

"The High Commissioner is also authorized to receive all of the reports required to be filed by the Order and Regulations of April 10, 1940 and to take other appropriate action to carry out the provisions thereof."

7.

"May 13, 1940

"The High Commissioner has been advised that the President of the United States, by Executive Order of May 10, 1940 has amended the Executive Order of April 10, 1940, relating to property in which Denmark or Norway or the nationals of those countries have an interest, by including therein prohibitions involving property in which the Netherlands, Belgium or Luxembourg, or any national thereof, has at any time on or since May 10. 1940 had any interest of any nature. There has been no change in the tenor of the order of April 10, 1940 except for the addition of these countries, the insertion of the date of May 10, 1940, and the addition of the following language:

"Under section 9 by inserting the following section:

"‘All transfers, withdrawals or exportation of, or dealings in, any evidences of indebtedness or evidences of ownership of property by any person within the United States; and’

"In section 11 there is inserted a new paragraph defining nationals of the Netherlands, Belgium or Luxembourg in identical terms used for defining nationals of Norway and Denmark."

Application and report forms relating to the matter treated in this Proclamation are available at the Office of the United States High Commissioner.

Now, therefore, I, Manuel L. Quezon, President of the Philippines, do publish the above Executive Orders, General Rulings, Regulations and announcements for the information and guidance of all concerned.

In witness whereof, I have hereunto set my hand and caused the seal of the Commonwealth of the Philippines to be affixed.

Done at the City of Manila, this twelfth day of June in the year of Our Lord nineteen hundred and forty, and of the Commonwealth of the Philippines, the fifth.

MANUEL L. QUEZON
President of the Philippines

By the President:

JORGE B. VARGAS
Secretary to the President


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