Memorandum to Elting Arnold from Robert J. Schwartz

DECLASSIFIED E.O. 12065, Sec. 3-402 September 5, 1951 State Dept. Guideline, June 12, 1979 LTR. To: By NLT- NARS, Date 7-18-80 "NATIONAL Mr. Arnold HC ARCHIVES AND RECORDS LIBRARY SERVICE From: Robert J. Schwartz BOVERVMENT Subject: Chinese Nationals with assets of $100,000 and over, in TFR-603 Census The attached table is furnished in reply to your request of August 13, 1951. The table includes U.S. assets of Chinese nationals with assets of $100,000 and over at the opening of business on December 18, 1950 and assets of all Chinese official institutions. It is based on the TFR-603 forms which were required to be filed at the beginning of the year in connection with the Treasury's blocking of assets of persons located in the Communist areas of China and Korea. The census pertained to residents of Formosa as well as Communist China. The assets of 179 Chinese (Mainland) nationals and 42 Formosan nationals are shown in the tables. They had gross assets of $106.4 million and $70.7 million respectively. Their combined assets (excluding unsecured letters of credit) comprise approximately 80 percent of all assets reported for Chinese and Formosan nationals in the census. Individuals in China or Formosa are considered nationals regardless of their citizenship. The census does not include citizens of China or Formosa residing in the U.S. or in other countries, unless they were controlled by or acting for the governments of China or Formosa. Partnerships, corporations and other organizations are considered nationals of China or Formosa if they are organized under the laws of these countries, if their principal place of business is in these countries or if they are controlled by the governments or by individual nationals of these countries. The Foreign Assets Control regulations define control as a 25 percent stock ownership by the national or substantial holdings of notes or other obligations. There are 12 U.S. companies included in the table which were controlled by nationals of China or Formosa. The gross assets of these com- panics do not appear in the table but their net worth is shown under the name of the controlling Chinese or Formosan national to the extent of the controlling person's interost. The names of the companies themselves are given as cross-refere For the purpose of the census, the term "national" includes the Central Government of the People's Republic of China, the Nationalist Government of the Republic of China, persons residing in China (Mainland) or Formosa, persons acting on behalf of persons residing in these countries or on behalf of the Chinese governments. All official institutions are included in the table regardless of whether or not they had assets of $100,000 or more because of the difficulty in deciding which branches of the government should be grouped together. Where addresses of the official institutions were given as Formosa or the United States, it was clear that the property belonged to the Nationalist Government of China. For official institutions and branches of official banks with addresses in China (Mainland) and countries other than the United States or Formosa, the property was assigned to either the Communist or Formosan governments according to whether or not the accounts were blocked. All official CONE