Volume 216, October 5 – October 10, 1939

DIARY Book 216 October 5 - October 10, 1939 - B - Book Page Budget Summation of budget: new policy - 10/Jr's memorandum to FDR - 10/10/39 216 379 - C - - China Five-year program of anti-malaria work in Yunnan Province: memorandum forwarded by Chen - 10/5/39 5 a) HMJr's interest will be mentioned in State Department's release at proper time - 10/9/39 303 Universal Trading Corporation: Hecht's (Rudolf) counsel, Jerome I. Ziegler, wishes HWr's deposition: discussion at 9:30 meeting - 10/6/39 153,279 a) Hecht letter and Foley reply - - 10/6/39 185 - E - Electric Current Government Requirements: Graves' memorandum - - 10/9/39 287 - H - Hatch Act Cases of Mrs. Banister and Mrs. Ross discussed at 9:30 meeting - - 10/6/39 152 - M - Monetary Study To be discussed by HWr and Wagner (Senator, New York) - 10/5/39 55,269 - - Wagner, Robert F. (Senator, New York) See Monetary Study War Conditions Anti-Smiggling Act: Foley memorandum - 10/6/39 102 a) Copy sent to FOR 134 Bank for International Settlements: French participation in future discussed in Bullitt memorandum - 10/10/39 360 Belgium: See Germany: British Blockade - - (Continued) Book Page War Conditions - (Continued) Business situation for week ending 10/7/39: 216 324 Haas memorandum Coal used by Tennessee Valley Authority: Procurement memorandum - 10/10/39 353 Coast Guard: Cryptographers (civilian): Army offering higher pay - 10/6/39 145 Colt's Patent Fire Arms Manufacturing Company: See Vinson-Trammell Act Consolidated Aircraft Corporation: See Vinson-Trammell Act Credits to Belligerents (90-day Clause): See War Conditions - Neutrality Act Exchange market resume - 10/5/39 2,213,381 Financing, Government: Bailie-Burgess-Bell financing program - 10/5/39 66 a) Federal Reserve Board approves Discussion by HMJr, Harrison, Bailie, Burgess, and Sproul - 10/6/39 169 Possible Treasury note offering: Hadley memorandum - 10/7/39 214 Conference; present: HMJr, Hanes, Duffield, Bailie, Bell, Haas, Hadley, and Murphy - 10/9/39 224 a) Conversation with Harrison 225 b) Conversation with Eccles 245 c) HMr reports FDR's reactions 253 Foreign Governments, Accounts for (in connection with purchasing): Harrison (George) tells HMJr Eccles thinks all steps taken would have Board's approval - 10/5/39 57 Publicity feature discussed in Cochran memorandum - 10/6/39 189 Germany: British Blockader Daladier reports to Bullitt receipt of "insulting and bellicose notes" by Belgian, Dutch, and Swedish Governments - 10/4/39 70 a) Gold holdings and stocks and wolfram stock: transfer for safekeeping discussed Capitalism weakened by national socialism: White memorandum - 10/5/39 89 Trade delegation expected in Moacow on October 7: American Embassy, Berlin, report - 10/5/39 100 Inflationary fears reported in Kirk memorandum - 10/7/39 217 Gold: Treasury must contimue policy of purchasing only upon delivery in New York - 10/5/39 $ Government Bond Market: Current Developments: Haas memorandum - 10/10/39 363 W - (Continued) Book Page War Conditions - (Continued) Great Britain: Sterling: Knoke and Cochran discuss rise - 10/5/39 216 4 Canadian securities: Chancellor of Exchequer's statement concerning - 10/5/39 64 Economic war efforts, coordination of: Prime Minister discusses - 10/9/39 291 Jewish Medical Students: Passport situation for return to Scotland discussed by Ickes and HMr - 10/9/39 220,377 Latin America: General problems in view of war covered in Cotton memorandum - 10/10/39 385 Brazil: Cochran memorandum giving resume of opening of an account for Bank of Brazil as fiscal agent for the Government - 10/6/39 179,212, 307,375 Liberia: Resund of steps taken concerning Liberian proposal to purchase United States currency (silver) - 10/9/39 336 Netherlands: See Germany: British Blockade Neutrality Act: Weak link: Charters to American ships replacing British ships withdrawn for war service and loaded by 3ritish owners - Harris calls MJr's attention who in turn calls Hull's (See Book 21/4, page 56) a) Hull's answer - 10/4/39 87 Credits to Belligerents (90-day Clause): Attorney General concurs in Treasury's legal conclusions concerning short-term credit transactions under Johnson Act and existing Neutrality Act - 10/6/39 196 Purchasing Missions: See Foreign Governments, Accounts Tranch Communications: Nine for B.Sums -f purchases 10/627/29 206.A Radio Federal Communications Communication and Federal Bureau of Investigation jointly to supervise - 10/6/39 142 Mailroads: Report of meeting of Atlantic States Shippers Advisory Board - 10/7/39 210 a) No car shortage nor congestion at any ports Ship Movements: Neutrality Act weak link: Charters to American ships replacing British ships withdrawn for war service and loaded by British owners - Harris calls HWr's attention who in turn calls Hull's (See Book 214, page 56) a) Hull's answer - 10/4/39 87 - W - (Continued) Book Page War Conditions - (Continued) Ship Movements: Raeder, Admiral of German Navy, tells American Attache, Berlin, of proposed attack on SS IRIQUOIS designed to create antagonism against Germany - 10/5/39 216 96 a) Progress of SS IRIQUOIS discussed at 9:30 meeting - 10/6/39 160 b) HMr asks FDR to "have every square mile flown over by airplanes in advance" - 10/9/39 282 Cargo Manifests: Harris discusses Skinner Plan used during last war - 10/6/39 159,189 Silver: See Liberia Strategic War Materials: Manila fiber (hemp): Rise of prices noted in Procurement memorandum - 10/5/39 1 Quicksilver: White memorandum - 10/7/39 207,383 Surplus Commodities: Wheat sales, 9/26-10/3/39 276 Sweden: See Germany: British Blockade Tennessee Valley Authority: See Coal U.S.S.R.: German trade delegation expected in Moscow on October 7: American Embassy, Berlin, report - 10/5/39 100 Vinson-Trammell Act (Naval Parity): Helvering memorandum on closing agreements - 10/7/39 215,305 Wheat: See Surplus Commodities TREASURY DEPARTMENT PROCUREMENT DIVISION OFFICE OF THE DIRECTOR WASHINGTON October 5, 1939 MEMORANDUM FOR THE SECRETARY On September 21st proposals were issued covering requirements of manila fiber (hemp) to be opened October 23rd. This afternoon a joint letter from the Assistant Secretary of War and the Acting Secretary of the Navy was received, requesting that inasmuch as the price of hemp has risen considerably, that this proposal be cancelled. In accordance with this joint request, notices have been sent to those who were furnished with proposals to the effect that they have been cancelled. Beer Director of Procurement TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE October 5. 1939. TO Secretary Morgenthan FROM Mr. Cochran The foreign exchange market vas quiet today. Sterling did not maintain the high rate which it reached yesterday and opened in this market 4.04-3/8. later rising to 4.04-5/8. and eased off to close at 4.04. With regard to By report of yesterday relative to what action the British Control would take if sterling remained above 4.04. the Federal Reserve Bank of New York reported to us that some of the large banks last night sent cablee to London which contained bids for approximately L347,000 at the official rate. The bide were accepted by the Control and the price of the sterling to the pur- chasers was 4.04-1/2. The rate of 4.04-1/2 comprises 4.04 for the fixed price and about * charge which is made by the London authorized dealers. We under- stand that when banks wish to purchase sterling from the British Control, it is necessary that this inquiry reach the Control before 3 P.M. London time in order for it to receive consideration. The fact that the Control sold sterling today does not necessarily imply that they have adopted this practice as a matter of policy. Reporting banks in New York and the Federal Reserve Bank reported sales totaling L680,000, from the following sources: Commercial concerns L 276,000 Foreign banks (Europe, South America and Far East) & 354,000 Pod. Res. Bk. (150,000 for Sweden) & 50,000 Total 1 680,000 Purchases of sterling amounted to 1415,000. as indicated below: By commercial concerns L 366,000 By foreign banks (Near last and Europe) 1 49,000 Total I 415,000 The Bank of Latvis purchased 180,000 belgas in this market. The National Bank of Belgium sold to us $2,960,000 gold from their GRT- marked account. The Banco do Brasil paid $3,000,000 to the Federal Reserve Bank of New York for conversion into gold which transaction vas effected today. After dis- cussion with the Federal Reserve Bank of New York as to how the account of Banco do Brasil vas to be opened, that is as a straight central bank account or M a fiscal agency of the United States account, it vas decided that the Federal CONFIDENTIAL Regraded Unclassified - 2 - 3 Reserve Bank of New York open a fiscal agency account and that they would take the necessary steps with their Board of Directors and the Federal Reserve Board to open a regular central bank account. When this has been done the gold is to be transferred to this regular central bank account in the name of the Bank of Brasil. Gold valued at $60,000 was shipped from Canada to the National City Bank of New York and $50,000 from England to the Bank Belge pour 1' Etranger, New York. We made two purchases of silver today totaling 200,000 ounces in the New York market under the Silver Purchase Act. BMR CONFIDENTIA Regraded Unclassified TREASURY DEPARTMENT 4 INTER OFFICE COMMUNICATION DATE October 5. 1939 TO Secretary Morgenthau FROM Mr. Cochran At 12 noon Mr. Knoke telephoned to ask whether we hed been discussing in the Treasury the rise in the pound sterling. He wanted to know whether the Treasury would be as uneasy over a 4.10 rate as over B. 3.07 rate. That is, were we looking for an entirely orderly rate? He said that in ordinary times he would bring such sharp fluctuations as were taking place today to the attention of Bolton of the Bank of England by a telephone call. I suggested that this subject should not be brought up from our side. We certainly did not want to protest against this rise in sterling. It remains to be seen whether the British will permit the open rate to go above the official rate or whether the British will sell sterling to bring the market rate down. I did not think that we should take the initiative in suggesting any ironing out of fluctuations. There is much experience to be passed through yet before the rate of sterling, and the policy of the British control, may be determined along anything like definite lines. 10MS CONFIDENTIAL Regraded Unclassified 5 THE Carlton WASHINGTON, D.C. October 5, 1939. The Honoable Henry Morganthau, Jr. Secretary of The Treasury, Washington, D. C. Dear Mr. Secretary: In reference to our conversation yesterday concerning medical aid to China I take pleasure in enclosing herewith for your kind atten- tion a copy of a memorandum on "Five Years Program of Onti-Malaria Work in Yunnan Province recently received through the Chinese Embassy. With highest regards, Yours truly, M.hen OOFT Memorandum on the Б Five-year Program of Anti-Malaria York in Yunnan Province The so-called Changohi which proves in general to be subter- tian malaria (See No. 21 of Appendix 1) has a remote history in the province of Yunnan. It was definitely referred to in litera- ture written as long ago as 227 A.D. (see NO. 21 of Appendix 1). Some localities of the province infected with the disease in a state of hyperendemicity as shown by the spleen index ranging from 50 to 100 are very often encountered (see NO. 21 of Appendix 1 and Appendix 2). The disease has not only caused a high mor- bidity and mortality but also costed the province very seriously in the social and economical condition. Evidences of the evil and devastating effect of the disease are many: of them the vast area which remains uncultivated within the regions highly infected with malaria is one of the most striking features. This has attracted the attention of both the Central and Yunnan Governments. An a result, a fund of 1,824,000 in Chines National Currency (see Appendix 3) has been recently sanctioned by both Governments for 4a five-year program of anti-malaria work in the province. To est on foot the new work, an Anti-malaria Committee (see ap- pendixes 4 and 5) under the Yunnan Provincial Government which consists of nine members, four from the National Health Adminie tration of the Central Government and five from the Provincial Regraded Unclassified - 2 - 7 Government, has been organized. On August 2, 1939 the Committee had its first meeting, in which the organization of the Anti- Malaria Corps as well as of the Institute for Malaria Research directly under the Committee was passed among a number of other proposals (see Appendixes 6 to 10). The budget for the work of 1939, the first year of the five- year program is N0$220,000 (see Appendix 3), which is fixed and will be appropriated by the Central Government. In order to win the people's confidence and to leave & permanent anti-malaria work after the five-year period, the Committee stressed the point that the malaria control work by means of anti-larva measures and treatment of patients should be simultaneously carried out with research and survey. Therefore it was passed at the meeting that in the first-year program, starting from August to December, 1939, four Anti-Malaria Stations willbe established under the Anti- Malaria Corps. The total annual budget for the Anti-Malaria Corps is N0$190,100-$95,100 as capital expenses and $95,000 as running expenses, while the annual total budget for the Institute for Malaria Research is NO $29,900, of which $15,000 is for capital expenses and $14,900 as running expenses, making a grand total of NO$220,000. The capital expenses mentioned above are limited only for local purchases. Regraded Unclassified - 3 - 8 In weighing the activities to be undertaken by the Institute for Malaria Research, as specified in Article 2 of Appendix 9, and the work of the Anti-Malaria Corps which covers a very large area, it is much to be feared that the sum mentioned above may be too small to carry out the work scientifically and extensively. For this reason, the meeting passed a re- solution to send an application to the Government of United States, the Rockefeller Foundation and the League of Nations for financial and technical aids. With the primary success of cinchona platation at Ho-kou (see Appendix 11) we here request the help of the Government of United States by sending us: (1) one expert on the said plantation, one malariologist, and one sanitary engineer on mosquito control with Chinese assistants to be engaged locally; (2) the necessary instruments for surveying and mosquito control; (3) anti-mosquito 011, Paris green and quinine; (4) autombile and lorries, and (5) ten sets of simple laboratory equipments for Anti- Malaria Stations. The engineer is requested to work in collaboration with the Regraded Unclassified - 4 - 9 divisions of Sanitary Engineering and Chemotherapeutics of the Institute for Malaria Research and a malariologist, preferably one with experience in entomology, to be attached to the Division of Entomology (see Appendix 9). The salaries and travelling expenses of the experts and assistants are to be paid by the Government of United States. As to the material aid mentioned in (2) to (5), amounting to US$131,000, we request such aid to be given in material rather than in cash ( see Appendix 12). We request the Rockefeller Foundation to send us: (1) experts and assistants at Foundation's expenses to work in collaboration with the Divisions of Epidemiology and Entomology of the Institute for Malaria Research (see Appendix 9), (2) laboratory equipments, books and journals amounting to US$26,300 (see Appendices 13 to 15) which due to the restriction of foreign exchange at the present time it is highly hoped may be appropriated in materials instead of cash, and (3) to grant to the research program which is planned to last for three years an annual appropriation of US$25,000 for three years towards the housing of foreign experts, for three years towards the houseing of foreign experts, salary of Chinese assistants, purchase of supplies, Regraded Unclassified - 5 - 10 travelling and other maintenance expenses. In our regular collaboration with the League of Nations, we will continue to ask for experts for anti-epidemic work, including a malariologist for anti-malaria work, along Yunnan - Burma Highwy. Ye hope the League will send us an expert on malarial control to work in collaboration with the Anti- Malaria Corps (see Appendices 7 and 8). 11 APPENDIX 1 List of the Important Literature on Malaria and Amopheles in China 1. Cameneuve, L'Eivernation des mostiques dans la Ohine du Nord. Bull. 800. Path. Exct. 3:155-159, 1910. 2. Chung, H. L. and Liv, Y. Y. Collection of mosquitoes in South China, with a note by c, U. Lee, Lingnan 8c, J., 7: 401-71, 1929. 3. Coggin Brown, J., Contributions to the fauna of Yunnan based on collections made 1909-1910. Part 5. Bibionidae, Myoeto- philidae and Anopheline. Record Ind. Museum, 6:31, 1911. 4. Faust, E. C., Appreliminary check-list of the mosquitoes of the Sino-Japanese areas. China M. J. 40, 142-43, 1926. 5. Faust B. C. Mosquitoes in China and their potential relation- ship to human disease. J. Tron. Med., 32: 133-37, 1929. 6. Feng, L. C. The larvas and nupae of the North China species of anopheles; their structure and breeding habite. Nat. M. J. China, 17: 493-512, 1931. 7. Feng, L. C. Investigations on malaria and its transmission in Amoy, Fukien province, South China, J. Trop. Med. 35: 198- 202, 214-21, 1932. 9. Feng, L. 0. Notes on Some Mosquitoes Collected from Shantung province, North Ohina. Chi. Med. 1. 49-1359-65, 1935. 8, Yeng, L. C. A brief moequito survey in some parts of Central Obina, Chinese M. J., 47: 1937-58, 1933. 10. Feng, L. C. The Present Status of the Knowledge of the Mosquitoes of Ohina and their relations to Ruman Disease. Ohi. Med, J. 49:1183-1208, 1935. 11. Peng, L. 0. Malaria and ite Transmission in Kwangsi. Chi, Med. J. 50:1799-1814, 1936. 12, Feng, L. 0. A Personal Communication dated Feb. 16, 1937 concerning the two species A. koreicus and A. sineroides collected by him from Mo Kan Shan, Chekiang. 13. Gasohen, H. Recherches entomologique dan la prevince du Yunnan. Bull 800. Med. Chir. Indochine 12: 873-982, 1934. 14. Gaschen, H. Faune entomologique des voies d'acces au Tunnan. Bull Soc. Path. Exot, 28: 194-198, 1935. 15. Jackson, R. B. The Anophelines of the Colony of Hongkong. Trans, 9th Congress F.E.A.T.M. 2: 27-36, 1934. 16. Jackson, R.B. Annual Report of the Work of the Malaria Bureau for the year 1933, Medical and Sanitary Reports, Hongkong, 1934. 17. Jeffreys and Maxwell Diseases of China, 1929. 18. Khaw, 0. K. Chronic Sub-tertian Malaria. case with high sosinophilia; notes on various methods of treatment, Chi. Med. 3.33:14-17, 1919. Regraded Unclassified 12 - 2 - 19. Khaw, O. K. and Kan, H. C. Some Observations on the Prevalence of Malaria in Wanking and its Vicinity, Ohi. Med. J. 45, 109 - 123, 1934. 20. Lee, C. U. A Survey of the Mosquitoes and their greeding Habits in the Aroy Region, Marine 8101. Assoo. China, Annual report, 11 75-77, 1932. 21. Ling, L. C., Liu, K. B. and Yao, Y. T. Studies on the 80- called Changeh'i. Part II. Changeh'i in Yunnan, Chi. Med. J. 50: 1815-1828, 1936. 22. Liu, 5. H. Plaxma acid-base equilibrium in malaria. oh1. J. Physiology, 2:151-156, 1928. 23. Ling, L. C. and Yao, Y.T. Morphological variations and abnor- malities of the larvas of de hyrcanus var. sinensis collected in Nanking area, Proceedings of the Third Annual Meeting of the Chinese Society of Pathology and Microbiology, April 1-8 1937. Also in Chinese Med. J., Suppl. 2: 539-543, 1938. 24. Meleney, H. E., Lee, C. U. and Chung, H. I.. A preliminary survey of the anopheline monquitoes of the Peking area. China Med. J., 41:509-512, 1927. 25. Weleney, H. S., Lee, C.U., and Yung, C.P. Experiments with anti-mosquito measures at Yenching, Chi. Med. J., 42:725- 737, 1928. 26. Necheles, H. The influence of humidity on the habits of Anopheles maculipennis. (Abstract) Abs. Soien. Paners 6th Congress, F.E.A.T.V., 1935. 27. Riley, W.A. The anopheline mosquitoes of Chi a, Lingnan 301. J., 11:175-191, 1932. 28. Riley, W.A. Anopheline mosquitoes from the Island of Hainan, China. Lingnan S01. J., 11; 468, 1932. 29. Robertson, R.C. and Hu, a.m.x. Nomquito control. China Jour. 20:344-356, 1934. 30. Tung, C.L. The effects of simultaneous administration of digitalis and quinine on the cardiso mechanism in articular flutter. Chin. ved. J. 47: 973-978, 1933. 31 Yang, S.C. Difference in reticulocyt= behavior in anemia from Valaria and in pernicious anemia. 800. TXP. Biol. Med. Proc., 261 417-418, 1929. 32, Yang, C.P. Observations on the incidence of Anopholes in a rural area outside Peining and on the conditions of Anopheles breeding, Nat. Med.J. China, 17: 513-520, 1931. 33. Yao, Y. T. and Wu, C.C. One year's ohe rvation of Anopheles hyroanus var. sinensis in Nanking, 1933. Trans. 9th Congress V.S.A.T.M., 213-26, 1934. 36, Yao, Y. T. and Ling, L. C. Epidemiological study of malaria in Nanking, Trans. 9th Congress F.E.A.T.M., 2: 281-297, 1934. 34, Yao, Y.T. and Wu C. C. Anti-larval measures by use of paris green in selected area of Yanking. Trans. 9th Constess F.S.A.T.N. 2:213-26, 1934 Regraded Unclassified - 3 - 13 35. Tao, Y.T. and Sun, C. J. Field experiment; comparative study of various remedies. Trans. 9th Congress F.E.A.T.M, 2:281-297, 1934. 36. Yas, Y.T. and Ling, L.C. Epidemiological study of malaria in Nanking, Trans. 9th Congress F.E.A.T.M., 2:551-563, 1934. 37. Tac, Y. T., Ling, L.C. and liu, K.B. Studies on the so-called Changoh'i. Part 1. Changeh'i in Kweichow and Kwangsi border. Chi. Med.J., 50:726-738, 1936. 38. Yao, Y.T. and Wu, C.C. Some abnormalities of the morphology of the male hypopygia of A.hyrcanus var. sinensis wied. in Nanking. Peking Nat. Hist. Bull., 11:27-34, 1936. 39. Yao, Y.T. and Ling, L.C. The importance of As hyrcanus var. sinensis Wied. as malaria carrier in China, based on the studies of its blood meal and maxillary teeth indes. Peking Nat. Mat. Bull., 11: 191-198, 1937. 40 Yao, Y.T. and Ling, L. c. Study of mosquito fauna in south- western Ohina especially in the provinces of Kweichow and Yunnan, Part 1. Tribe Anophelini. Jap. J.Exp., 15:121-136, 1937. 41. Yao, Y.T. and Ling, L. 0. Notes on the comparative morpholo- gical study of three different types of egge laid by A. Hyrcanus var sinensis in Nanking. Trans. 10th Congress F.E.A.T.M. 1938 (inpress). 42. 31a, S.H. and Faust, E.C. Results obtained from the inocu- lation of human malarial parasites into experimental animas including those subjects to provocative treatment. Revista di Malariology. 7:301-3, 1928, Regraded Unclassified 14 Appendix 2 Map Showing the Location of Anti-malaria Organization in Yunnan Province I F AM Explanation H MIL Provid Town 5145 N that And Implication Hughway - Nedway date Malum unite [ - Accountry Statem 15 Appendix 3 Distribution of the Appropriation from the Central Government and Yunnan Provincial Government for the Five Year Program of Anti-Malaria Work in Yunnan : Capital : Running Expenses : Total I Year ; Central Prov. : Central Prov. ; Central Prov. : : Gov't Gov't : Gov't Gov't : Gov't Gov't : 1st : 60,000 o : 160,000 0 : 220,000 0 ; 2nd : 60,000 O : 304,000 0 : 364,000 0 ; 3rd : 40,000 O : 200,000 200,000 : 240,000 200,000 ; 4th ; 0 0 : 100,000 300,000 : ,100,000 300,000 ; 5th : 0 0 : 68,000 332,000 : 68,000 332,000 otal I 160,000 0 : 832,000 ; 832,000 : 992,000 832,000 ; GRAND TOTAL 1,824,000 Regraded Unclassified 16 Appendix 4 Regulations Governing the Organization of the Anti- Valaria Committee in Yunnan Article 1 The Yunnan Provincial Government, for purpose of facilitating anti- malaria work, organizes the Yunnan Anti-Malaria Committee(herein- after referred to as the Committee) in accordance with the coopera- tive plan of promoting health work in Yunnan between the Central and Provincial Governments. The Anti-Malaria Corps shall be 70- sponsible for conducting field work in malaria control. Article 2 The Committee shall be composed of nine members, as follows: 1) Four members designated by the Yunnan Provincial Government, 2) Four members designated by the National Health Administra- tion. 3) Director of the Yunnan Provincial Health Administration, Article 3 The Anti-Malaria Corps shall be responsible for carrying out the resolutions of the Anti-Maluria Committee. The Committee shall recommend the chief and senior technical personnel of the Anti- Malaria Corps to the Yunnan Provincial Government for appointment. Article 4 The Committee shall be responsible for the following: 1) Plan of anti-malaria work in the whole province, Regraded Unclassified 17 - 2 - 2) Directing the anit malaria work from a technical standpoins, 3) Examining into the work according to the anti-malaria program, 4) Receiving, distribution and custody of anti-malaria funds provided by the vinistry of Interior and the Yunnan Provincial Government. Article 5 The Committee shall designate one member each from the representa- tives of the Yunnan Provincial Government an the Ministry of Interior and the Director of the Yunnan Provincial Health Admini tration to form a Standing Committee to carry out the routine activities. Article 6 Office regulations of the Committee shall be separately drawn.up. Article 7 The present regulations shall become effective from date of promulgation. Regraded Unclassified 18 Appendix 5 Name List of Members of the Anti-Malaria Committee in Tunnan Members: Dr. P. 2. King, Vice Director of the National Health Adminis- tration of the Ministry of Interior, Central Government. Dr. F. F. Tang, Director of the National Epidemic Prevention Bureau, National Health Administration. Dr. T. F. Huang, Prof. of Public Health, National Medical College of Shanghai Dr. Y.T. Yao, Head of the Department of Parasitology, Central Field Health Station, National Health Adminis- stration. Mr. 3. T. Lee, Commissioner of Civil Affairs, Yunnan Pro- vinoial Government Mr. P. H. Chang, Commissioner of the Bureau of Reconstruction Tunnan Provincial Government Mr. T. 8. Loo, Commissioner of the Bureau of Finance, Yunnan Provincial Government Mr. 0. M. Miao, Manager of the Yunnan Provincial Bank Dr. H. Y. Yao, Commissioner of the Yunnan Provincial Health Administration Standing Committee Mr. 0. M. Miao Dr. H. Y. Yao Dr. Y. T. Yao Regraded Unclassified Appendix 6 19 11 Chart Showing the Organization of Anti-Malaria Work in Tunnan Yun-haien Station Central Government Shun-ning Station Anti-malaria Corps X 8ze-mac Station King-erh Station Yunnan Provincial Government Anti-malaria Committee Division of Emidemiology Division of Entomology Division of Sanitary Engineering Institute for Malaria Research Division of Chemotherapeutics Division of General Affairs Training Class x The four Stations seen in the Chart are to be established in the first year but more stations will be extended to the rest of the endemic dis- tricts in the mucceeding years. Regi ed Unclas sit Appendix 7 20 Regulations Governing the Organisation of the Anti-Malaria Corps in Tunnan Article 1 The Anti-Malaria Corps of the Yunnan Provincial Government(herein- after referred to as the Anti-Malaria Corps) shall be organized no- cording to Article 1 of the Regulations Governing the Organization of the Yunnan Provincial Anti-Malaria Committee. Article 2 The Anti-Malaria Corps, under the direction of the Yunnan Provincial Anti-Malaria Committee and the Yunnan Provincial Healthe Administra- tion, shall establish 10 to 15 anti-malaria stations and may also organize anti-malaria units to carry out field work in malaria con- trol in Yunnan. Article 3 The Anti-Nalaria Corps shall be responsible for the following: 1)To carry out the anti-malaria program approved by the Anti- Malaria Committee. F)Matters relating to the organization of anti-malaria stations. 3)Planning, supervision, and designating places of work of the anti-malaria Stations. 4)Recommendation, appointment, dismissal and examination of work of staff of the Anti-Malaria Corps and anti-malaria stations. 5) Budgetting and accounting of the Anti-Malaria Corps and the anti-malaria Stations. Regraded Unclassified - 2 - 21 Article 4 The Anti-Malaria Corps shall have one director and one deputy director. The director and deputy director shall be recommended by the Anti-Malaria Committee to the Yunnan Provincial Government for appointment. The director shall be responsible to the Anti- Malaria Committee for the work of the Anti-Malaria Corps, while the deputy director shall assist the director in carrying out all activities of the Anti-Malaria Corps. Article 5 The Anti-Malaria Corps may appoint 3 to 5 field directors according to need, They shall be responsible to the director and deputy director of the Anti-Malaria Corps for directing and taking charge of all anti-malaria activities in their respective regions. The field directors may act concurrently as head of the anti-malaria stations. The director and deputy directors shall recommend them to the Provincial Government for appointment. Article 6 The Anti-Malaria Corps shall have 4 to 6 clerks, to be appointed by the director and deputy director and reported to the Anti-Malaria Committee for record. They shall be responsible for correspondence, accounting, medical supplies and routine matters. Article 7 The Anti-Malaria Corps may engage a number of employees when nece- seary. Regraded Unclassified 22 -3- Article 8 Office regulations of the Anti-Malaria Corps shall be separately drawn up. Article 9 The present regulations may be amended from time to time. Article 10 The present regulations shall become effective from date of promulgation. 23 Appendix 8 Regulations Governing the Organization of Anti-Malaria Stations in Tunnan Article 1 The Anti-Malaria Stations in Yumnan(hereinafter referred to as the Stations) shall be organized according to the regulations governing the organization of the Anti-Malaria Corps of the Yunnan Provincial Government. Article 2 The Stations shall be responsible to the Anti-Malaria Corps of the Yunnan Provincial Government(hereinafter referred to as the Anti- Malaria Corps) for carrying out anti-malaria activities in regions designated by the Anti-Malaria Corps. when necessary, anti-malaria units may be organized. Article 3 Each station shall have one head, to be recommended by the Anti- Malaria Corps to the Provincial Government through the Anti-Malaria Committee for appointment. The head of each station shall be re- sponsible for the work of his station. Article 4 Each station shall have 2 to 4 assistant technical experts, 4 to 6 technical assistants, 2 to 4 technicians, 1 to 3 office assistants, and 4 to 8 assistants. They shall be recommended by the head of to the Anti-Malaria Committee through the Anti-Malaria Corps for station appointment and be responsible to the head of station for Regraded Unclassified - 2 . 24 their activities. Article 5 Each station shall have the following divisions; 1) Division of Medical Affairs 2) Division of Survey 3) Division of Engineering When necessary, each station may organize 2. number of anti-malaria units to be responsible for anti-malaria activities in certain designated regions. Each Division shall have one chief of division, and each unit shall have one chief of unit, to be filled by the assis tant technical experts. Article 6 Detailed regulations of the anti-malaria stations shall be separately drawn up. Article 7 The present regulations may be amended from time to time. Article 8 The present regulations shall become effective from date of promulgation. Regraded Unclassified Appendix 9 25 Regulations Governing the Organization of the Institute for Malaria Research in Yunnan Article 1 The Institute for Malaria Research (hereinafter referred to as the "Institute") is organised under the auspices of the Anti-Malaria Committee in Tunnan(hercinafter referred to as the "Committee") to take charge of all the researches on malaria and to give the technical advice in anti-malaria work. Article 2 The Institute has the following functions: a)Training of personnel for anti-malaria work b)Giving technical assistance to all anti-malaria stations in Yunnan province. o) Malaria and Mosquito surveys: researches on the symptomatology, therapeutics, haematology, pathology, immunology and protoscolo of the diseases; and researches on the physiographical, meteors logical, economical and entomological factors in influenoing its prevalence. d) Survey of the physical features of the area where the anti- malaria work is to be carried out. a) Experiments on anti-mosquito and anti-larval measures. f) publishing papers on malaria researches. g) Study on the oinohona plantation. h) Recommendation, control and supervision of personnel. Article 3 The Institute is composed of the following staff: Director - to be recommended by the Committee and appointed by Yunnan Provincial Government. Regraded Unclassified 2 - 26 Technical Experts and 4-6 Assistant Technical Expetts- to be recomended by the Director of the Institute and appointed by the Tunnan Provincial Government 4-6 Technical Assistants, 10-15 technicians and 2-4 business assistants - to be recommended by the Director of the Institute and appointed by the Committee. Malariologists, biologists, chemists, agrioulturists or hydrographic engineers may be recommended according to their qualifications to be technical experts or assistant technical experts or technical assistants of the Institute. Article 4 The Institute shall consist of the following divisions: Division of Epidemiology Division of Entomology Division of Sanitary Engineering Division of Ohemotherapeutics Division of General Affairs The technical experts of the Institute shall be appointed as heads of the first four Divisions while one of the business assistants shall be placed in charge of the Division of General Affairs. Article 5 Honorary advisers may be recommended by the Director to the Tunnan Provincial Government for appointment. Article 6 The Director shall take charge of the entire affairs of the Institute under the direction of the Committee. All the staff members of the Institute shall attend to their duties in the Division to which they Regraded Unclassified - 3 - 27 belong by the order of their superior. Article 7 The Institute may employ a number of student technicians whenever necessary. Article 8 The detailed rules for the administration of the Institute shall be formulated and announced separately. Article 9 These regulations shall come into force on the date they are approved and officially announced by the Committee. 28 Appendix 10 Name List of Staff Appointed to Take Charge of the Different Organisations of Anti-Malaria Work in Yunnan Dr. H.Y. Yao, Director of the Anti-Maleria Corps Dr. A.T. vise, Deputy Director of the Anti-Malaria Corps Dr. Y.T. Yes, Director of the Institute for Malaria Research Advisors to the Institute for Valaria Research: Dr. Y.Y. Ying, prof. of Tropical Medicine, National Medical College of Shanghai Dr. K.Y. Ku, prof. of Pathology, National Medical College of Shanghai M. P.K. Tao, prof. of Sanitary Engineering, Southwest Union University Dr. L.C. Ling, Chief of the Anti-Malaria Station in Tun-hsien Dr. 0. T. Wang, Chief of the Anti-Malaria Station in Shun-ning Dr. c. T. woo, Chief of the Anti-Malaria Station in Sge-mao ...... known 11 WAS Vinc.con 11 tion " the ropical as riculture Ation 01 what of Reconstruction DE Ivovinci 1 iovernment it No-kou : otc: In his r cunt trip to TO-ROU di a. specially to investi, Le into C.e cultiv tion OF Cinchona, Dr. Y. 1. Yes 02 = En C. succiruors, C, Ledger- :, officin lis 2016 the Ayorid DI the for- nor the in 6716 11 nt .ion. Regraded Unclassified 3.1 31 Appendix 12 List of Anti-malaria and Anti-mosquito Instruments, Chemicals and Drugs Requested to be appropriated by the Government of United States 1, Instruments 4. For surveying and mosquito control: Items Quantity Unit Price Total Cost Current meter with dry cell and wiring 4 DOB. 150.00 600.00 Drawing instruments( Stanley 5 sets 20.00 100.00 Haversack 20 pes. 0.50 10.00 I. & E. Engineering transil (24 dia.) 20 seen. with tripod 4 nets 650.00 2,600.00 K. & 1. Erasong sheild 10 nos. 0.40 4.00 K. & L. "y" level (28 dia.) ratio 1:100 with tripod 4 sets 250.00 1,000.00 K. & 1. Level rods 2.2 meters to K. & E.4 meters with target 8 pos. 22.50 180.00 K. & & Lookes Hand Level with studia line 4 pos. 7.00 28.00 K. &. E. Mettalio voventape 15 m. and 50 ft. 10 pos. 6.00 60.00 K. &, I. Plain table with alidade with tripod 1 set 500.00 500.00 K. & 5. Steel tare 30m. & 100 ft. 5 pos. 20.00 100.00 Log log Trig. duplex slide rule 10 in. 5 pcs. 14.00 70.00 Knapsack sprayer 20 - 6.00 120.00 Knapeack blower 10 # 6.00 60.00 Mixer 5 # 5.00 25.00 Miscellaneous draughting instru ments 1 set 100.00 Rubber boots 20 pairs 2.00 40.00 Screener 5 pcs. 10.00 50.00 Stanley drawing pen, 6 in. 12 # 1.50 15.00 Surveying miscellaneous 1 set 500.00 Surveying umbrella 4 pos. 5.00 20.00 T-Square Xylonite lined, 42 in. 10 # 5.00 50.00 Xylorite semi-circular protractor, 8 in. 10 pos. .50 5.00 Kylorite triangles 20 # 1.00 20.00 Automobile 1 700.00 700.00 Bicycle 20 10.00 200.00 Lorry 4 600.00 2,400.00 Typewriter, portable 4 60.00 240.00 B. For Laboratory: Regraded Unclassified 32 Items - 2 - Quantity Unit Total Price Gost Counter, hand 4 pos. 5.00 20.00 Cover glass, round, 18 M 100 boxes 1.75 175.00 . - square 18 E 100 # 1.75 175.00 Diluting pipette for R.B.O. and 1.3.0, 10 pos. (each) 1.30 26.00 Glass slidee, ground edge, non- corrosive, 3x1 500 boxes 1.90 950.00 Hemocytometer 2 sets 16.00 32.00 Memometer. Bahli 2 # 10.00 20.00 Magnifying lens, double 5x,10x 5 pos. 5.00 25.00 Microsope, simple dissecting for 30 students 30 nos. 25.00 750.00 Misroscope, Spencer binecular 5 sets 150.00 750.00 Microscope, Seise routine Ltd with equipment 319L 5 # 300.00 1,500.00 Object holder for entomological work 4 . 10.00 40.00 Ph-apparatus 4 - 40.00 160.00 Balance, 5 kg. with its, 4 # 15.00 60.00 Centrifuge, hand 4 pos. 12.00 48.00 Clook, Hawkeye, interval timer 4 # 7.50 30.00 Compase 4 . 1.00 2.00 Distilling anparatus, can. 1 gal per hour 24. ents 48.00 193.00 Forcess, cover-glass 12 DOS. ..50 6.00 M . entomological, ourved and square tipood 12 If .60 7.20 # . fine curved 12 # .50 6.00 # , pinning 4, - 5.00 20.00 # # Straight fine 12 - .50 6.00 Lamp, alcohol brass, 24 oz. 10 # .70 7.00 Minuten nadeln 10,000 # 4,00(10,000) 40.00 Nee 10, dissecting with handle 4 doz. .50 2.00 Pins, entomological, rustless Nos. 00-5 7,000 pos. 6.00(1000) 42.00 Pins, nickel No.20 50,000 pos. 4.00(10,000)20.00 - # No. 16 50,000 a 4.00(10,000)20.00 Scapel, microscopic 12 # .60 7.20 - . ordinary 12 # .50 6.00 SACISSORS, microscopic 12 # 4.50 48.00 - . ordinary straight 12 # .70 8.40 - - curved 12 - .70 8.40 Syringe needles, size assorted 12 dos. 2.00 24.00 Vaccine needles for taking blood 12 # .20 2.40 Writing diamond 4 . 1.00 4.00 Aquaria, cylindrical cap. 1 gal. 20 pos. 1.85 37.00 Regraded Unclassified 33 - Items Quantities Unit Price Total Cost Beaker, Pyrex, 50 00. 20 pos. 0.18 3.60 # # . 250 00. 20 pcs. .25 5.00 1 I , 1000co. 10 pos .55 5.50 Bell glass, 15x9 in 5 pcs, 5.00 25.00 Bottle, balsam 20 # .40 8.00 Bottle, oedar wood oil & Iylol 20 # .65 13.00 # dropping with pipette 50 . .14 # 7.00 Burette, cap. 100 0.0. 5 # 1.30 6.50 Calcium chloride tube, 6 in. 5 # .20 1,00 Centrifuge tubes, plain 15 00, 5 dos .80 4.00 Cylinder, byrex 5 00, 10 pos. .50 5.00 # 100 00, 10 If .60 6.00 # # 2000 00, 4 # 3.20 12.80 Dessicator, 250 mm. dia, 5 # 8.00 40.00 Dish, stender with cover 80x40mm20 # .55 11,00 Flask, boiling, 50 00. 20 # .17 3.40 If a 250 CC, 20 # .24 4.80 H # 1000 CC. 10 If .43 4.30 y bottom, 50 CO. 5 If .40 2.00 If # , 250 CC, 5 Il .60 3.00 Erlenmeyer 50cc. 20 pcs. .17 3.40 # # 2500c. 20 pos. .22 4.40 # If 100000/ 10 # .42 4.20 If filtering Pyrex with side neck, 500 CC, 5 # .50 2.50 Funnel, glass 1 in. dia. 10 " .15 1.50 # . 5 in. dia. 10 # .40 4.00 Jar, Staining, 20 slides 20 # .35 7.00 # # 10 # 20 - .38 7.00 Petri-dishes 100x15 mm. 200 pairs .50 100.00 Pipette, graduated 1 00. 20 pcs. .50 10.00 Specimen tube with flat bottom and cork 1,000 # .02 20.00 Byringe, Luer, loo. 10 # 1.70 17.00 # M 2 00. 10 If 1.30 13.00 . # 5 00, 10 # 2.00 20.00 # # 10 00, 10 # 2.50 25.00 Test tube, Pyrex, 150x18mm. 1,000 # .07 70.00 Watch glass, Syracuse 24 in. dia. 100 # .14 14.00 Evaporating dish, 80mm. dia. 20 # .13 2.60 Mortar with pestle, 96mm. dia. 2 # .70 1.40 Celluloid sheet, 6x6 in. 20 - -70 14.00 . vial with cork 13x15 mm. 200 6 .04 8.00 Cork sheet, pressed 4x12xjin. 100 . .30 300.00 Regraded Unclassified 34 - 4 - Item Quantity Unit price Total 0088 Rubber bulb, cap. 2 ml. 10dos .14 1.40 # # # , 08 20ps .08 1.60 # # , - 1 08 20 DOS .10 2.00 # glove, size 14 8 pairs 3.50 28.00 # tubing, thin wall tin. 50 ft. .08 4.00 Spot pins, 10 different colors 500 each .05 25.00 Tap measure, pooket, 36 in. 4 DOB. .60 2.40 Tent, 6x7x10 ft. 4 set 50.00 50.00 Tray, enamel 12x 7 X 2in. 10 pos. 1.30 13.00 Wax pencil, red, yellow, blue and black 20 each .15 12.00 Miscellaneous equipments 145.90 2 Chemicals A. For mosquito control Anti-lurva oil 1,000 barrels 30.00 30,000.00 Paris green 10 tons 400.00 4,000.00 B. For Laboratory sold, acetic, c.p. 5 lbs. .40 2.00 # M glacial, o.p. 10 # .95 9.50 a hydrochloric, O.D. 5 # .60 3.00 . potassium phosphate, C.D. 4 # 1.00 4.00 Alcohol, absolute 20 # 1.00 20.00 . . ethyl 50 gal. 1.50 75.00 Alcohol, methyl 20 lbs. 1.50 30.00 Asphalt vanish for ring slide 2 # 4.00 8.00 Bromthymolblus 400 00 1.00 4.00 Calcium chloride, O.P. 10 lbs. .80 8.00 Canada baleam 4 - 7.50 30.00 Cautie potash, O.D. 5 # 1,00 5.00 Celloidin 10 05 .60 6.00 Chloreform 20 1bs. .70 14.00 Chloral hydrate, 0.0. 5 lbs. 2.50 12.50 Copper sulphate, O.P. 5 # 1.20 6.00 Creosote 10 . 1.20 12.00 Ether 20 # .70 14.00 Euparal 10 oz. 150 15.00 Formalin 5 gal. 2.00 10.00 Glycerine, ordinary 10 lbs. .90 9.00 . distilled 20 # 1.50 30.00 Gum arabie 5 # 1.20 6.00 Iodine 2 # 9.00 18.00 Lithium carbonate, c.p. 4 # 1.50 6.00 Lysel 20 - .90 18.00 Regraded Unclassified 35 - 5 - Item Quantity Unit price Total cont Mecurio chloride. c.p. 4 lbs 3.00 12.00 Naphthaline flakes 10 # .75 7.50 011, cedar wood 4 # 6.00 24.00 011, cloves 4 # 6.50 26.00 Plaster of Paris 10 - .15 1.50 Potassium iodine 2 # 8.00 16.00 Sodium dibasio, c.p. 4 # 1,00 4.00 # sulphate, c.p. 4 # .80 3.20 # . . 4 # .80 3.20 WEX, sealing n20 oz. .50 10.00 Xylol 20 lbs. .90 18.00 Asur I 25 gas 6.00 6.00 Azur II 30 gms 16.00 16.00 Asur II Yosin 400 If 9.00 36.00 Hematein crystal 100 # 5.00 8.00 Methyl blue 25 # 1.75 1.75 . green 25 # 3.50 3.50 wright 18 stain powder 200 # 17.80 35.60 3. Drugs Quinine bisulphate 3 tonst 20,000.00 60,000.00 Plasmoquine 20,000.00 4. Viscellaneous Miscellaneous equipments 210.95 Grand Total U.S. $131,000.00 36 Appendix 13 List of Instruments Requested to be Appropriated by the Rockefeller Foundation 1. Microscopes, optical instruments and other accessories: Items Quantity Unit Price Total Cost Anemometer 1 set US$40.00 US$40.00 Barometer, automatic record- ing 1 set 54.00 54.00 Camera, Leica 1 set 90.00 90.00 - Photomicrographic fitted to Zeins Mioro. 1 set 110.00 110.00 # luoida, Abbe 2 DOB. 28.00 56.00 Comparison eyepiece 1 DO. 45.00 45.00 Counter, hand 4 po 5.00 20.00 Cover glasses, round, 18 mm.100 boxes 1.75 175.00 . If square 18 me. 100 If 1.75 175.00 Diluting pipette for R.B.C. and W.B.O. 10 pos.each 1.30 26.00 Drawing table, 2 carts for Abbe drawing apparatus 1 DO. 5.00 5.00 Class slides, ground edge, non-corrosive, 3x1 500 boxes 1,90 950.00 Glass slides, single cavity 3x1 100 pos. .20 20.00 Hemodytometer 2 sets 16.00 32.00 Hemometer, Sahli 2 # 10.00 20.00 Hydrometer for both heavy and Light liquids 1 po. 3.00 3.00 Hygrometer 1 - 14.00 14,00 Lantern slide projector 1 set 60.00 60.00 Magnifying lens, double 5x,10x 5 pos. 5.00 25.00 Microscope lamp 5 If 10.00 50.00 Microscope, Simple dissecting for 30 students 30 pos. 25.00 750.00 Microscope, Spender binooular 5 sets 150.00 750.00 Microscope, Zeise research LSE with equipments 857L 1 set 500.00 500.00 Microscope, Zeiss routine LTD with quipment 319L 5 sets 300.00 1,500.00 Microscope, Zeise E80-220 for 30 students 30 sets 130.00 3,900.00 Microscope, travelling No. 124044 5 sets 150.00 750.00 Microtome, hone 1 po. 9.00 9.00 Regraded Unclassified 37 - 2 - Microtome, knife 3 pes. 10.00 30.00 Microtome, Spencer precision rotary 1 set 220.00 220.00 Object holder for entomo- logical work 1 # 10.00 10.00 Object marker 1 DO. 30.00 30.00 Ocular micrometer 2 pos. 5.00 10.00 Ph-apparatus 1 set 40.00 40.00 all color disc 4 pos. 2.00 8.00 Stage micrometer 1 po, 7.00 7.00 Thermometer, recording Max, & Min. 1 set 70.00 70.00 # 100 C. 10 pos. 2.50 25.00 # 360 C. 2 nos. 11,00 22.00 Urinometer, Vogel 1 set 2.00 2.00 Turning table, all metal 5 3.00 15.00 2.Labaratory Instruments Autoclave 1 set 300.00 300.00 Balance, analytical sensi. 1/10mg 1 # 300.00 300.00 . 5 kg. with wts. 2 sets 15.00 30.00 # platform 1 set 30.00 30.00 Berkfield filter with candles 4 sets 10.00 40.00 Burner, alcohol automatic 4 pos. 4.00 16.00 If Kerosene, 1 head 6 - 1.50 9.00 . # 2 # 4 # 2.50 10.00 # If 4 M 2 - 5.00 10.00 Caliper micrometer,grad.o.olmm. lno. 2.50 2.50 Centerfuge, electric 1 set 75.00 75.00 . hand 2 pos. 12.00 24.00 Clamp,burette 5 . 1.30 6.50 # condenser 2 . 1.50 3.00 Clook, Hawkeye interval timer 2 # 7.50 15.00 Compase 2" 1.00 2.00 Cork borer, a set of 15 1 set 2.30 2.30 Dissecting instruments, complete 2 sets 15.00 30.00 Distilling apparatus, oap. 1 gal per hour. 1 net 48.00 48.00 Drawing instruments 1 set 10.00 10.00 38 - 3 - Drying oven, 10 X 8 - B in. 1 set 24.00 24.00 Embedding boxes, 2 L'e with me- tal plate, medium 10 pcs. 0.60 6.00 Embedding table, 14 X 4 % 6 in. 2 11 4.50 9.00 Forceps, cover-glase 12 N 0.60 6.00 " . entomolo icel, curved and souare tipped 18 " 0.60 7.20 " . fine curved 10 o 0.50 6.00 " . Pinning E TV 6.00 10.00 E . straight, blunted 28 ⑉ 0.50 6.00 19 . straight fine 1. " 0.50 6.00 Funnel, not water, copper 1 por 0.00 0.00 Conerator & accossories, whole set 1 set 1,000.00 1,000.00 Hot air sterilizer 1 e 190.00 190.00 Incubator W sets 200.00 (Y) 200.00 Lamp. alcohol brass, 4 0% 10 pos. 0.70 7.00 Kelting point apparates 1 set 18.00 18.00 Linuten nadeln 100,000 pos. 4.00 40.00 Seedle, disaecting with handle C doz. 0.50 1.00 Platinan loop 0 pes. 2.00 12.00 Pine, automological, restless, Nos. 00-D 7,000 if 6.00 12.00 50,000 : Pine, nickel No.20 4.00 20.00 " " no.16 50,000 " 4.00 20.00 Refrigerator 1 not 300.00 300.00 tuler, pocket folding 5 pcs. 1.00 5.00 Scapel, miseromopic 12 If 0.60 7.20 ordinery 12 " 0.50 0.00 cissors, microscople 6 " 4.00 24.00 19 ordinary streight 6 " 0.70 4.20 . a AS ourved o " 0.70 4.20 lection lifter, 6 me. wide 6 o 0.70 0.70 loive, Tyler Standard Screen auale, 8 in.din. & set of 10,20,32, 48,60,80, and 100 mesh. 1 set 4.00 28.00 Support, iron rings 5 sets 3.00 15.00 yringe needles, size assorted 12 dos. 2.00 24.00 Cost tube holder 2 doz. 1.40 2.80 friangular punch 1 [10. 5.00 5.00 Triangle covered with silica 3 in. 10 pas. 0.65 6.50 Tripod, 9 in. high, 4 in.dis. 5 it 0.30 1.50 Faccine needles for taking blood 12 dos. 0.20 2.40 Inter bath, 8 in.die. 2 DCS. 4.00 8.00 friting diamond 2 1.00 2.00 Sanitary Engineering Instruments: Current meter with dry cell and wiring 4 pos. 150.00 600.00 Drawing instruments (Stanley) 5 seta 20.00 100.00 Haversok 20 pos. 0.50 10.00 E. - B. Engineering transit (24 dia.) 20 200. with tripod 4 sets 650.00 2,600.00 E. & E. erasing shield 10 pos. 0.40 4.00 Regraded Unclassified - 4 - 39 B. & E. "y" level (28 dia.) ratio 1:100 with tripod 4 sets 250.00 1,000.00 Ko de B. Level rods 2.2 meters to 8 pcs. 22.50 180.00 & E. meters with target & E. Lockes Hand Level with studia line 4 " 7.00 28.00 & E. Metallic woven tape 15m. and 50 ft. 10 " 6.00 60.00 20 P., Plain table with alidade 1 set 500.00 500.00 with tripod be E. steel tape 30m. & 100 ft. 5 pce. 20.00 100.00 08 log Tris. duplex slide rule 10 in. 5 17 14.00 70.00 nepsack sprayer 20 " 6.00 120.00 napsack blower 10 if 6.00 60.00 ixer 5 " 5.00 £5.00 iscellaneous draughting instru- monts 1 " 100.00 abber boots 20 prs. 2.00 40.00 Greener 5 pcs. 10.00 50.00 tanley, drawing pon, 6 in. 12 " 1.50 18.00 rvoying miscellaneous 1 set 500.00 rveying umbrella 4 pes. 5.00 85.00 square aylonite lined, 42 in. 10 If 5.00 50.00 lorite seni-cirealar protractor, 8 in. 10 " 0.50 5.00 lorite triangles 20 " 1.00 20.00 asswares: uaris, " cylindrical cap. 1 gal. 20 pcs. 1.85 37.00 # rectangular onp. 6 gal. 10 - 8.00 80.00 sker, yrex, 50 00. 20 " 0.18 " 3.60 " . . 100 CO. 20 - 0.19 3.80 If . - 250 CC. 20 a 0.25 11 5.00 If , # 600 CC. 20 " 0.35 = 7.00 " . 1000 co. 10 " = 0.55 5.50 ME # 2000 00. 10 - 0.90 9.00 Bell glass, 15 X 9 in. 5 poB. 5.00 25.00 Bottle, balsam 20 19 0.40 8.00 40 " ceder wood oil de Xylol 20 - . 0.65 13.00 11 . dropping with pipette 50 19 0.14 7.00 " it - with projecting lug, 100 0.0. 50 - 0.40 20.00 Burette, onp. 100 0.0. 5 " 1.30 6.50 Calcium chloride tube, 6 in. 5 " 0.20 1.00 Contrifuge tubes, plain 16 0.0. 5 doz. 0.80 4.00 Condenser tube, Pyrex 24 in. 6 pos. 0.70 4.20 Cyllnder, yrex 5 00. 10 " 0.50 5.00 H = 50 00. 10 - - 0450 5.00 If . - 100 CO. 10 en 0.60 6.00 - " 500 00. Б - . 1.30 6.50 = 2000 CC. 2 " 9 3.20 6.40 Dessicator, 250 man. dia. Б If 8.00 40.00 Dish, stender with cover 80x40 mm. 20 " 0.55 11.00 17 " If If 100x50 mm. 80 " 0.70 14.00 Evaporating dish, Pyrex flat bottom. 50 mm. dia. 20 " 0.50 10.00 Flask, boiling, 50 00. 20 # 0.17 3.40 " 11 . . 125 CC. 20 " 0.19 3.80 " " . - 250 CO. 20 " 0.24 4.80 H = . . БОО 00. 10 " 0.30 3.00 " = . 1000 CC. 10 V 0.43 4.30 " n . 2000 00. Б " 0.60 3.00 Flask, distilling, Pyrex round botton. 30 CO. Б " 0.36 1.80 " . distilling БО 00. 5 H 0.40 2.00 If If . 125 00. 5 " 0.50 2.50 e If P 250 00. 5 # 0.60 3.00 Flask, Erlenmeyer 50 00. 20 " 0.17 3.40 = H . 125 00. 20 " 0.19 3.80 19 " . 250 00. 20 is 0.22 4.40 if 19 . 500 CO. 20 " 0.29 5.80 " " . 1000 CC. 10 " 0.42 4.20 - " . 2000 CC. Б " 0.60 3.00 Flask, filtering Pyrex with side neck, 500 00. 5 " 0.50 2.50 Flask, kjeldahl, Pyrex, 300 00. Б " 0.30 1.50 Funnel, dropping, 60 00. 5 If 1.00 5.00 " glass 1 in. dia. 10 11 0.15 1.50 . a If . 20 in. dia. 10 " 0.24 2.40 is = . 5 in. dia. 10 et 0.40 4.00 Funnel, separate Bquibb, 250 CO. Б " 1.90 9.50 Gless block, square with excavation and cover 21 X 1/ in. БО FY 0.35 17.50 Jar, rectangular museum 15 X 8 I 6 one БО FL 0.40 20.00 Jar, Screw cap. cap. 1 one 10 doz. 1.35 13.50 # - If onp. 4 done 10 " 1.95 19.50 Jar, staining, 20 alides 20 pes. 0.35 7.00 Petridishos, 100 I 15 name Pyrex 200 prs. 0.50 100.00 Pipette, graduated 1 00. 20 pos. 0.50 10.00 of $ 8 00. 20 # 0.60 12.00 41 ipette, graduated 6 00. 20 pcs. 0.75 15.00 of of 10 00. 10 " 0.90 9.00 Specimen tube with flat bottom and cork 1,000 " 0.02 20.00 Byringe, Luer, 1 C.C. 10 " 0.70 17.00 " " - . 2 C.O. 10 " 1.30 13.00 - " . . Б C.O. 10 1. 2.00 20.00 e . " ,10 C.C. 10 ** S.50 25.00 = r . ,20 0.0. 5 e 3.00 15.00 Test tube. grex, 150 X 18 1AM 1,000 n 0.07 70.00 Tumbler, onp. 7 0% 20 " 0.18 3.60 Vials, 25 x 8 1,000 +1 0.01 10.00 - 40 X 10 no. 1,000 11 0.01 10.00 - 00 X 20 fill . 1,000 " 0.02 20.00 II 80 X ES PUD. 1,000 FE 0.025 25.00 Vaton E1-08 with fist polished bottom, 50 diu. 5 10% 0.30 1.50 Tuton glass. Syracuse & 6/8 inedia. 100 009. 0.14 14.00 Volghing bottle, 40 EFI. dis. 50 no. high 10 " 0.70 7.00 signing bottle, 50 on. 110. 30 mr. high 10 = 1.00 10.00 orcelain: Cheseroles, 30 00. 10 pcs. 0.30 3.00 . 75 CC. 10 008. 0.35 3.50 YR 150 CC. 10 if 0.45 4.50 Crucible, 16 00. 10 - 0.76 7.50 YE . 30 CC. 10 " 0.80 8.00 T . Gooch, 10 CO. 10 " 0.20 2.00 " = 25 C.C. 10 " 0.26 0.50 Evaporating dish, 80 IIIII. tine 20 of 0.13 2.60 = ,100 on. dis. 20 + 0.27 5.40 Punnel, Suchner, 5 orde din. 6 If 0.60 3.00 Mortar with postle, 95 name din. 2 n 0.70 1.40 4 H 19 . 01 in. 814. DC 2.00 4.00 Office Equipment: atomobile 1 700.00 700.00 Bicycle 10 10.00 100.00 Calculating machine 1 set 120.00 120.00 2 600.00 1,200.00 Typewriter, office 1 100.00 100.00 or . portable 4 00.00 240.00 Incellaneous: Animal hoard 2 008. 6.00 12.00 abouto hourd. size G in. 20 " 0.30 6.00 Belse wood, 20 x 25 in. 100 of 0.08 8.00 Colluloid sheet, 6 X 6 in. 20 " 0.70 14.00 : posquito estching tube with cork 100 " 0.20 20.00 If vial with corl 13 X 50 me. 200 " 0.04 8.00 Regraded Unclassified 42 Celluloid vial with cork, 32 X 90 Mile 200 pes. 0.10 20.00 Cork, No. 0 5 bage 0.80 4.00 If . No. 3 5 " 1.20 6.00 e . No. 6 5 11 1.60 9.00 " . No. 9 5 If 2.50 12.50 - . No.12 Б " 3.00 15.00 - No.16 2 " 6.00 12.00 Cork sheet, pressed 4 x 12 X to in. 100 " 0.30 3.00 Filter paper, 100 Tille dia. 50 packs 1.00 50.00 Litmue paper, red and blue 100 If 0.10 10.00 Rubber bulb, cap. 8 ml 10 doz. 0.14 1.40 If If . cap. 2. $ 0%. 20 pcs. 0.08 1.60 " it . cap. 1 05. 20 " 0.10 2.00 of glove, size 14 4 paire 3.50 14.00 : stopper, Nos.00,0,1-5 2 lb.each 0.90 12.00 = tests, No. 3 100 pos. 0.01 1.00 # tubing. thin wall 1/8 in. 50 ft. 0.08 4.00 " " " If . 5/16 in. 50 ft. 0.09 4.50 If = " = 3/8 in. 50 ft. 0.15 7.50 , " 11 " " , 1/2 in. 50 ft. 0.18 9.00 Sable brush, No60 5 doz. 0.40 2.00 If If No.2 5 19 0.40 2.00 Spot pine, 10 different colors 500 each 0.50 25.00 Tap measure, pooket, 36 in. 4 pcs. 0.60 2.40 Tent, 6 X 7x 10 ft. 1 set 50.00 50.00 Tray, enamel, 12 X 7 X 2 in. 10 pcs. 1.30 13.00 Wax pencil, red, yellow. blue and black 20 each 0.15 12.00 Miscellaneous equipments 145.90 Total U3$23,937.10 Appendix 14 42 List of Chemicals and Stains reque ted to be Appropriated by the Rockefeller Foundation Chemiosls: Itoms Quantity Unit Price Total Cost Acetone, c.p. 10 lbs. US 0.90 USD 9.00 Acetice unhydride, c.p. = H .90 1.80 Acid, Mootic, c.p. 5 " .40 2.00 If " glacial, C.D. 10 If .95 . 9.50 11 benzeic, c.p. 2 PT 1.00 2.00 H carbolio, c.p. 5 H 1.80 9.00 " 2 " chromic, c.p. 3.50 7.00 " gallic, c.p. 2 " 5.00 10.00 " Hydrochloric, c.p. 5 - .60 3.00 " Hydrofluoric, c.p. 1 a 3.90 3.90 " Lactic, c.p. 5 " 2.50 18.50 " Bitric, C.P. E 1.10 5.50 " Osmic, c.p. 5 2018. 8.50 42.50 " hosphorie, c.p. à lbs. .00 1.20 if dorie, c.p. Б is 1.90 14.50 " Potassium Phosphate, C.P. & if 1.00 2.00 - Salicylis, Cap. 2 11 2.00 4.00 " Sulphuric, crude 10 11 .ED 2.00 " 19 5 = . C.P. .60 3.00 et Tannic, c.p. C = 2.50 5.00 Agaragur 5 e 3.00 15.00 Alcohol, absolute 20 17 1.00 20.00 if . amyl Б " 1.00 5.00 " 1 othyl, 98% 50 gul. 1.50 75.00 = . methyl 20 lbs. 1.50 30.00 Aluminum chloride, c.p. 5 " .90 4.50 " turnings 1 lb. 3.00 3.00 Ammonium acetate, c.p. 2 lbs. .90 1.80 or alum, c.p. 5 " .80 4.00 " forri sulphate, c.p. 5 11 .80 4.00 et hydroxide, c.p. 5 11 .88 4.40 " molybdate, c.p. B - 1.50 3.00 If sulphide, C.D. 2 is .90 1.00 Animal charcoal 2 - .85 1.70 sphalt vanish for ring slide 2 14 4.00 8.00 Barium 1 a 1.50 1.50 Barium chloride, C.D. 2 - .90 1.80 Bensene 5 " .50 2.50 Benzylaldehyde 2 = 1.00 2.00 Bensyl chloride 2 - 1.00 2.00 Bismuth dioxide 2 et 1.00 2.00 Bleaching powder 10 # .30 3.00 Borax, c.p. 2 If .50 1.00 Bromine 1 - 1.00 1.00 Bromthymolbule 400 00. 1.00 4.00 Calcium carbide 2 lbs. .40 .80 Regraded Unclassified Calcium chloride, c.p. 10 lbs. US 0.80 US$ 8.00 0 oxide, c.p. 2 = -50 1.00 44 Canada Balsam 2 - 7.50 15.00 Carben disulphide 2 " .90 1.80 = tetrachloride 10 - .60 6.00 Cautic potach, c.p. 5 18 1.00 5.00 Celliodin 10 02. .60 6.00 Chloral hydrates c.p. 5 lbs. 2.50 12.50 Chloroform 20 - .70 14.00 Chromium trioxide, c.p. 1 If 1.00 1.00 Cobalt nitrate, c.p. 1 " 1.00 1.00 Copper carbonate, c.p. 2 " .80 1,60 Copper oxide, c.p. 2 " 1.00 2.00 Copper sulphate, C.D. 5 " 1.20 6.00 Creosol 2 " .90 1.80 Creesote 10 " 1.20 12.00 Dimethylaniline 1 - 3.00 3.00 Ether 20 " .70 14.00 Ethyl bromide 1 " 2.00 2.00 Euparal 10 02. 1.50 15.00 Ferric chloride, c.p. 1 lb. 1.00 1.00 " nitrate 1 " 1.00 1.00 Ferrous chloride 1 " 1.00 1.00 " sulphate 1 If 1.00 1.00 Formalin 5 gals. 2.00 10.00 Gelatin 1 lb. 3.50 3.50 Glucose 5 lbs. 2.00 10.00 Glycerine, ordinary 10 " .90 9.00 = . distilled 20 If 1.50 30.00 Glycerol 2 " 1.50 3.00 Gum arabie 5 " 1.20 6.00 Hydrogen peroxide 2 " .80 1.60 Hydroxylaniline hydrochloride IT - 6.00 3.00 Iodine 2 P 9.00 18.00 Iron powder 1 lb. 1.00 1.00 Lead acetate, c.p. 1 - 1.00 1.00 Lithium carbonate, ap. 2 10a. 1.50 3.00 Lysol 10 - .90 9.00 Magnesium sulphate, c.p.- 2 a .60 1.20 Manganous chloride, O.P. 1 1t. 1.00 1.00 Methyl iodine, Cape 1 " 6.00 6.00 Mercurio chloride, c.p. 2 lbs. 3.00 6.00 Naphthaline flakes 10 R #75 7.50 Nichel nitrate, c.p. 1 lb. 1.00 1.00 Nitrobenzene 1 " 3.00 3.00 011, aniline 2 lbs. 1.30 2.60 011, coder wood- 2 If 6.00 12.00 011, cloves 2 " 6.50 13.00 012, tursentine Б - .80 4.00 011, wintergreen Б " 1.30 6.50 Paraffin, 47-49 C. 10 " .60 6.00 # . 56-58 C. 10 " .50 5.00 # 9. liquid 2 " .60 1.20 Phenolphthalin 1 1b. 3.50 3.50 Plaster of Prris 10 lbs. .15 1.50 Potaesio alum, c.p. Б " .30 1.50 Potassium bichromate, C.p. Б " .80 4.00 Regraded Unclassified Potassium carbonate, Cope 2 lbs. US20.80 US$ 1.60 = oyanide, c.p. 2 - 6.50 9.00 45 If fluodie, C.P. 8 If 2.00 4.00 = iodide 2 If 8.00 16.00 11 Permanganate & - 1.40 2.80 Pyridine 1 lb. 4.00 4.00 Quarts powder 1 # 1.00 1.00 Quinine 1 " 2.00 2.00 Recorcinol 1 " 1.50 1.50 Silver nitrate 5 OE. 1.10 5.50 Sodium acetate, Deps 2 lbs. .90 1.80 If arsenite, Cope 2 " .90 1.80 If bicarbonate, Cops 2 " .30 .60 If bichromate, c.p. 2 " .50 1.00 If bisulphate, c.p. 2 19 .60 1.20 n carbonate, cape 2 " .40 .80 If chloride, c.p. 10 - .40 4.00 # citrate, cap. 5 " .50 2.50 " dichromate, cap. 2 " .50 1.00 " hydroxide, c.p. 2 " 1.00 2.00 19 mettalic 1 1 lb. 3.00 1.50 11 nitrate, c.p. 1 " .80 .80 11 peroxide, c.p. 1 11 .90 .90 " phosphate, anhydrous dibasio, c.p. 2 1Bs. 1.00 2.00 = sulphate, C.p. 2 " ..80 1.60 " sulphite, c.p. 2 " .80 1.60 Starch, c.p. 2 " 2.00 4.00 Tin 1 lb. .30 .30 Toluidine 1 " 1.00 1.00 Uranium nitrate, c.p. 5 03. .90 4.50 Urea, c.p. 1 lb. 1.40 1.40 Vaseline 5 lbs. .20 1.00 Wax, sealing 10 02. .50 5.00 Xylol 20 lbs. .90 18.80 inc chloride, c.p. 1 lb. .50 .50 If dust 1 If .60 .60 Stains: Aniline blue, alc. sol. 100 gms. 6.25 6.25 FE " . water sol. 100 " 6.85 6.25 sur I 25 If 6.00 6.00 A II Б0 # 16.00 16.00 # II Eosin 400 " 9.00 36.00 Bismarck brown 100 " 4.10 4.10 Bordeaux red 100 17 4.10 4.10 Brilliant cresl blue 25 e 6.00 6.00 Brilliant green 25 " 2.00 2.00 Carmine 100 " 6.00 6.00 # . alum 100 IF 6.00 6.00 a . borax 50 " 5.00 5.00 Coo-hineal powder 100 n 1.50 1.50 Congo red 25 " 1.00 1.00 Cresyl violet 25 - 6.00 6.00 Crystal violet (gentian) 50 " 3.50 3.50 Eosin blue 100 - 5.80 5.80 = yellow 100 " 5.80 5.80 Fuchsin, acid 100 gms. US$5.90 use 5.90 46 " 9 basic 100 " 5.90 5.90 Hemat in crystal 100 " 8.00 8.00 Hematoxylin, Cope 200 If 17.50 35.00 Janus Green 25 " 2.50 2.50 Leishman stain powder 100 = 18.00 18.00 Methyl blue 25 " 1.75 1.78 - green 25 " 3.50 3.56 H orange 25 = 1.00 1.00 " violet 25 " 1.75 1.75 Methylene blue 200 IT 6.00 12.00 Neutral red 25 " 1.75 1.75 Orange G. 25 IT 1.50 1.50 Pyronin 25 If 3.50 3.50 Safranin 0 25 " 2.20 2.20 Sudan III 25 11 1.75 1.75 Toluidine blue 25 If 2.20 2.20 Vital red 25 " 3.50 3.50 Wright's stain powder 200 " 17.80 35.60 Total US81062.90 Regraded Unclassified Appendix 15 47 List of books and Journals AO juested to be Appropriated by the Rockefeller F undation Note: The total price of the books nê journale in this list is estimated to be appro imately 1801,300.00 I. Books 1. askart, J.S. Lab. Namual of Paracitology, 1938. 2. Aloook, de Antonology for Medioal Officers, London. 3. Applecard, T.H. de Lyons, C.J. Practical Pharmaccution] Chamistry 3rd odit, 1937. 1. bellantyne, 7.M. Technique of Section-cutting, 1948. 5. Buylis, H.A. Mountal of Helminthology, 19.9. 6. BOOK, 6.0. Law. Hanual of Hematolo 10 Technic 1938. % 2011, E.T. edit. ty Textbook of Puthology, ord shit. 1938. B. senaley, R.R. Le S.H. Hundbook of Vistological and cytological Techni ue, 1936. : Seatley oc Driver's Textbook oz Chemistry, 3rd 1927. 10. Blucklock, T.B. - Southwill, 2. Juice to Physitology, Stat edit. 1938. 11. Bond, C.J. The Leucoryte 1. Men:th have missure, 19 4. 10. Boyd, K.F. Introduction to Malariology, 19.00. 13. pray, .... Synopsis of Citaten] Lateratory Methods, and edit.1938. 14. Bremor, J.L. Textbook of detolops. (5th allt. or Lovie Stohr). 1936. 16. Brown, The Pregnant Torma, 1003. 16. srumpt, 1. (1927). Tr'ecis du 'nt vituale, ario, lineon it 17. Buxton, T.A. 1927. Researches in Polynesia and Melnnesis. Darts I to IV. Modical Entonology, London. 18. Chikine, G.M. 1933. The Biology or the rotogoa, End od. Philadelphia. 19. onitsoff, P.S. Lutz, F.X. Helch, 1.3. una DUE inco, J.O. Culture Methods for Invertablete animals, 1937. 10. Costollani, A. Climate and A instimation, You edit., 1938. 21. Cecil, R.T. edit. by, Textbook of Nedician, 4th Bit., 1937. 22. Chandler, A.C. Introduction to Human Permsitology, Atn Edit., 1936. 18. Chitwood, B.O. and Deltwood, H.B., 4a Introduction to Nomatology, 3 vol., 1937. 36. Chopra, R.N., Handbook of Tredical Therapoutice, 1936. 35. Comstock, J.H., An Introduction to intomology, 1924. 26, Conn. H.J., Biological status, 3rd 1936. 27, Covell, G., Malaria Control by Anti-mos nito Mensures, 1931. 28. Crais, C.F. and Faunt, E.C., Clinical Perseitology, 1937. 2V. Urnis. C.F., Parasitic Protoson of Man, 1926. 30. Curran, C.R. The Families and Genera of Marth American Diptors, 1934 31. Dilling, W.J. Pharmacology and Therapentics the Materia ... Doflein, F. and Reichenow, E., Lehrbuch der Protogoenkunde, 1928. Hotion, 15th Edit., 1939. 33. Downey, H. Handbook of Hematology, 4 vols.. 1938. 34. Dunn, C.L.. Malaria in Ceylon, 1936. Regraded Unclassified - 2 - 48 35. Dyar, H.G., The Mosquitoes of the Americas, Carnegie Inst. Publications No. 387. Washington, 1988. 36. Evans, A.M. Illus, Guide to Anophelines of Trop. & 3. Africa, 1927. 37. Evans, A.M. Monquitoes of the Ethiopian Region, pt. II, Anopholini, Adults and Early Stages, 1938. 38. Ewings. H.B., A manual of External parasites. Springfield, Ill., 1929. 39. Findlay, G.M. Recent Advances in Chemotherapy, End. Edit.1938. 40. Fuller, Chemistry Analysis of Drugs and "edicines. 41. Fuller, Qualitative Analysis of Medicinal preparations. 42, Fox. C. Insects and Disease of Man, 1925. 43. Galtsoff, 7.8. Lutz, F.E. Welch, .S. and Needham, J.G. Culture methods for invertebrate animale, Ithaca, N.Y. 1937. 44. Gatenby, J.G. Biologioal Laboratory Technique, 1937. 45. Gater, B.A.R. Aids to the identification of Anopheline imagines in Mulaya. Singapore, 1935. 46. Ghosh, B.N. Bygiene and Public H alth with Special Reference to Tropica, 9th Edit., 1938. 47. Gradwohl, R.B.H. Clinical Lah. Methods and Diagnosis, 3nd edit. 1938. 48. Hackett, L.W. Malaria in Europe, 1937. 49. Hall, M.C. Control of Animal Paresites: General Principles and Their Application. DP. 162. Evanston, Ill. (Bailliere). 1936. 50. Handbook of Chemistry and Physics. Latest edition. 51. Hardenburg, W.B. Mos ulto Eradication. New York. 1922. 62. Health Bulletin Series, Gov't of India Publications, Nos. 3, 5, 8, 10, 11, 12, 13, 14, 16, 17, and 18. 53. Heagner, R. Host-Parasite Relations between Man and His Intestinal Protozoa. New York. 1987. 54. Hegner, R. and Andrews, J. Problems and Methods of Research in Protonoology. New York. 1930. 55. Hegner. R. Cort, W.W. and Root, F.M. Outline of Medical Koology, New York. 1923. 56. Hegner. A. Rott, F.M. Augustine, D.L. & Huff, G.G. Parasitology, 1938. 57, Hegner, R. and Taliaferro, V.H. Human Protosoology. llew York. 19240 58. Howard. L.O. Dyar, H.G. and Knab. F. The Mosquitoes of North and Central America and the We t Indios. 4 vols. Carnegie Inst. of Washington, Contribution No. 189. 1912-1917. 69. Imms, A.D. A general Textbook of Entomology, London. 1925. 60. International Health Board. 1924. The use of fish for Mosquito Control. New York. 61. James, S.P. and Liston, W.G. The Anopholine Mosquitoes of India. Calcutta, 1911. 63. May, L.A. The microscopical Study of Drugs, 1936. 05. Kennody, hello Parasitology for Medical Students, 1925. 64. Kilduffe, R.A. Clinical Interpretation of Blood examination. 1931. Regraded Unclassified - a - 49 65. Kligler, I.J. Epidemiology and Control of Nalarin in Prinstine 1950. 06. Kolmer, J. & Boerner, F. proved Lab. Technic, 2nd edit.. 1938. 07. Knouff, R.A. Lnb. Manual for Hictology, 1905. 6. Knowlen, R. Introduction to Ledical Protomology, 1927. 6V. Kracke, R.R. Dise 200 of the Blood and Atlas of Hematology, 1937. 70. Eudo, K.R. Hindb ok of Instonoology, 1931. 71. Mangen. C.D. De and Lichtonstein, A., Clinical Textbook of Tropical Medicine, 1936. 72. Leo, C.B. Vicrotorist's Vude Secum, 10th adit., 1937. 73. luevy, As and (ittkower, E. Pathology of liigh attitude Climate, 1937. 74. Maciregor, M.S., Mosquito Surveys, 1927. 75. Vogner, T. Textbook of Homotology, 1938. 74. Vallory, F.B., Pathological Technique, 1936. 77. .H., Misson's Tro,ical 199. 78. Hartini, E. Dehrbuch der Medizinischen antomologie, 1953. 79. Mothomon, R. Molion] Entomology, 1932. 80. Mc0lug. C.S., Microspionl Technique, and edit., 1937. 13. Menon, T.B., Introduction to Trapical Pathology, 1932. 02. Mense, C. Handluch der Trupon-Xrenkheiten. 3rd adit. 1984. 23. Methode of Analyuis. 06. Vinchin, E.s. Introduction to the study of Protpmon, 191. 85. Vounis, H.O., Vetericary Helminthology and satonology, 19.6. DG. Socht, B. nas Mayer, 7., Malaria Prestment, Parasitology and revention. 1937. 07. Noyes, A.A., nalitative .nnlysis. 80. Parker, R.C., The Method of Tissui Culture, 1938. 89. Patton, W.S. and Craiss. F.W. à Textbook of -edical Entomology, 1917. 90. Patton, W.S. and Evans, A.M., Insects, Ticks, Nitea, und Venemous Animals of Medical und Veterinary ortance, 8 vols. 1989. vi: Phermacopoois of the United States. 32. Finey and-Wyard, S., Clinicol stille of Blood Disences, 4th edit. 1936. 93. Trownsch, s.v., and others, Bundluck der Pathogenen Prototoen, 1911. 94. Ray, M.B., Hydrotherapy And Climetotherapy, 1936. 95. Riley, N.A. And Johannsen, O.A., Medical intomology, 2nd edit., 1938. 96. Rivas, D. do, Clinical Purasitology and Propical Redicine, 1936. 97. Rogers, L., Recent Advance in Tropical Medicine, and Edit. 19.9. 98. Roes, R. The Prevention of Malaria, 2nd edit., 1911. 99. Rudelf, G. de M., Therapoutic Nelaria, 1927. 100. Smith, V. Peresitiem and Disease, 1935. 101. Stephens, Blackweter Fever, 1937. 102. Stitt, E.R., Diagnosis and Treatment of Tropical Diseases, 3rd edit. 103. Stitt, E.R. et al. Practical Hosteriology, Bematology and Animal Farnsitelogy, 9th edit., 1938. Regraded Unclassified - 4 - 50 104. Stickland, C. and Choudbury, K.L., Illustration, Key to Identification of Anopheline Larvae of India, Ceylon and Malaya, 1932. 105. Swellengrebel, N.H. and Rodenweldt, E., Die Anophelen von Hiederlandisch-Ostindien, Jens, 1932. 106. Taliaferro, W.H., The Immunology of Parasitio Infections, 1930. 107. The British Pharmacopoeia, Latest edit. 108. Theobald, F.V., A Monograph of the Cluicidae of the World, 1901-1910. 109. Thomson, J.C., and Robertson, A., Protozoology, 1929. 110. Todd, J.C. and Sanford, A.H., Clinical Diagnosis by Laboratory Methods, 8th Edit., 1935. 111. Ward, H.B., and Shipple, O.C., Fresh Water Biology, 1918. 112. Watson, M., The Prevention of Malaria in the Federated Malaya States, 2nd edit., 1921. 113. Wenyon, C.M., Protosoology: A Manual for Medical Men, Veterinarians and Ecologiste, 8 vols. 1926. 114. Wickramasuriya, Gehober Meleria and Ancylostomissis in the Pregnant Woman, 1937. 115. Yorke, T. and Maplestone, ... The Nematode Parasites of Vertibrates, 1926. 116. Siemann, H. Malaria and Schwarswasserfieber, 1924. II. Journals (Subscription for five years) 1. American Journal of Hygiene 2. American Journal of Tropical Diseases and Preventive Medicine 3. American Journal of Tropical Medicine 4. Annales de Parneitologie 5. Annals of Tropical Medicine and Perasitology 6. Archiv fur Schiffs und Tropenhygiene 7. Biological Bulletin 8. Bulletin de la Societe de Pathologie Exotique 9. Bullotin of Entomological Research 10. Entomological News 11. Illinois Biological Monographs 12. Indian Journal of Medical Research 13. Indian Medical Gazetto 14. Japan Medical World 15. Journal of Experimental Medicine 16. Journal of Experimental Soology 17. Journal of Parasitology 18. Journal of the London School of Tropical Medicine 19. Journal of the Malaria Institute of India. 20. Journal of the Royal Army Medical Corps 81. Journal of Tropical Medicine and Hygiene 22. Zitasato Archieves of Experimental Medicine 25. Monographs of the Rockefeller Institute for Medical Research 24. Philippine Journal of Science, Section B. 25. Proceedings of the Scciety for Experimental Biology and Medicine 26. garterly Journal of Microscopical Science 27. Review of Applied Entomology Regraded Unclassified - 5 - 51 28. Rivista di Malariologia 29. Transactions of the Royal Society of Tropical Medicine and Hygiene 30. Tropical Diseases Bulletin 31. Tropical Veterinary Bulletin 32. University of California Publications in Zoology 33. Nentralblatt fur Bakteriologie und Parasitenkunde Regraded Unclassified TREASURY DEPARTMENT Office of the Secretary 52 Secret Service Division MEMORANDUM October 5, 1939 To: Mrs. Klotz From: Mr. Wilson There are attached copies of two schedules covering the President's trip to Hyde Park, leaving Washington this evening at eleven o'olook and arriving Highland, New York, tomorrow morning, October 6th, at eight thirty o'clock. CONFIDENTIAL Trip of the President to Hyde Park, New York. Thursday, October 5, 1939, Lv. Washington. (Baltimore & Ohio Railrond) .11:00 p.m. Friday, October 0, 1939. Ar. Highland, N.Y. (West Shore N.Y.C.RR.) 8:30 a.m. Members of the party: The President. Miss M. A. LeHand. Mr. William D. Hassett. Miss Grace Tully. Mr. Henry M. Kannee. Miss Grace E. Earle. Mr. Dewey E. Long. Mr. George A. Fox. Mr. Leo A. de Waard. Secret Service Agents. Newspaper men: Mr. George B. Durno, International News Service. Mr. Thomas F. Reynolds, The United Press. Mr. Douglas B. Cornell, The Associated Press. Mr. Walter Trohan, The Chicago Tribune. Mr. Felix Belair, The New York Times. Mr. W.C. Murphy, The Philadelphia Inquirer. Mr. Bruce Pinter, The New York Herald Tribune. Mr. Carl Warren, The New York Daily News. Picture men: Mr. George Skadding, Associated Press Photos. Mr. Joseph Jamieson, Times-Wide World Pictures. Mr. Douglas DuPont, Paremount Nows. Brondcasting representatives: Mr. Carleton Smith, National Broadcasting Co. Mr. A. B. Johnson, National Brondcasting Co. Telegraph representatives: Mr. C. S. Linkins, Western Union Tel. Co. Mr. T. B. Bowen, Postal Telegraph Co. Mr. D. L. Moorman, G.P.A. The Baltimoro & Ohio Reilroad Co. In charge of Transportation. 54 OPERATING STOPS Trip of the President to Hyde Park, New York Thursday, October 5, 1939 Lv. Washington (B&O) 11:00 p.m. Pass Baltimore 11:50 p.m. Friday, October 6, 1939 Pass Park Junction, Pa 2:15 a.m. Pass Bound Brook, N. J. 3:35 Ar. Claremont Junction, N. J. 4:20 Lv. Claremont Junction, N. J. 4:30 ** Brief operating stop at Cornwall, N. Y. Ar. Marlboro, N.Y. 6:43 Lv. Marlboro, N.Y. 8:10 Ar. Highland, N.Y. 8:30 a.m. 55 October 5, 1939 3:55 p.m. Operator: Go ahead. HMJr: Hello. Robert Wagner: Henry? HMJr: Hello, Bob. How's my favorite Senator? W: All right. (Laughs) How are you? How's my favorite Secretary of the Treasury? HMJr: Now I didn't say New York Senator - I sald "Senator". W: I see. Thank you. HMJr: O. K. V: Say, Henry, I tell you, I know you're busy and I won't -- I -- you know I'm one fellow that doesn't go near our friend Franklin because I know -- I would only add to his burdens. I do want to talk to you in the near future about -- I -- I don't intend to do anything, I can tell you that right off the reel, on this money study. HMJr: Anytime - I'm at your service. W: You know, I don't -- you agree that just now it would be -- it's not an appropriate time for that sort of thing. HMJr: I agree wholeheartedly. W: Yeah. I mean, we are HMJr: Yeah, yeah. W: Yeah. Well anyway HMJr: Why don't W: I'll find sometime when you're a little -- got a little leisure. HMJr: I've always got leisure when you're around. 56 - 2 - W: Yes. Well, I'm working on a speech I've got to make Saturday night and I want to make mine on the floor on Monday I think. HMJr: What are you doing around lunch time Tuesday? W: Next Tuesday? HMJr: Yes. W: Probably nothing. HMJr: Well, why don't you eat off W: All right. Will you put me down for lunch? HMJr: One o'clock you and I at the Treasury. W: Yeah. That -- I liked that last time and if it's as good why I'll -- you see you bring me back. It was a very nice place to eat. HMJr: Well, I -- I don't remember whether I gave you pig knuckles and sauerkraut or what it was, but we'll fix it up. W: Yeah. HMJr: 0. K. W: All right, Henry. HMJr: Two o'clock -- at one o'clock in the Treasury. W: One -- one o'clock on Tuesday. I hope you remember it. HMJr: (Laughs) Son-of-a-gun. W: Thank you. (Laughs) HMJr: All right. W: Goodbye. leopy given to HSK. to be given to M. Joley at 9:00 am 10/6/39 57 October 5, 1939 4:32 p.m. HMJr: Hello. Operator: Mr. Harrison. HMJr: Hello. George Harrison: Hello, Henry. HMJr: Yes, George. H: I just thought I ought to report to you HMJr: Yes. H: & conversation I've Just had with Eccles. HMJr: Right. H: He's here -- been here in the bank all day. HMJr: Oh, yes. H: And we referred to the matter about which you talked to him. HMJr: Yes, H: And he said something about his lawyers having the opinion that all fiscal agency matters that have anything to do with abroad are subject to the Board's approval. HMJr: Yeah. H: And that he thinks, 86 he understands it now, that their lawyers would rule that if we had opened an account such 8.8 you discussed I'd have to submit it to them for approval. Not, he said, that he would disapprove but as a matter of form, he says, "I think it must go there." HMJr: Yeah. H: I told him that if it were done under the regular banking authority I agreed with him. Regraded Unclassified in - 2 - HMJr: Yes. in But that I don't think I've got authority to open this account under the banking authority, 8,8 I told you before. HMJr: Yeah. H: That I'm doing it under the fiscal agency authority, and my idea on that has always been, and 16 the one we've practiced, that I work directly with you and not with the Board. HMJr: Yeah. H: And I said, "I have B. memorandum saying that the matter of fiscal agency operations will be worked out amicably between the Board and the Treasury." HMJr: Yes. H: Now I said, "Until you do that, I think that I'm on the spot.' HMJr: Yeah. iii - because I deal confidentially with the Secre- tary. I don't even tell my own Board of Directors or go to them for authority HMJr: Yeah. H: And I said, "I'm not going to the Board - at least I -- unless there was en issue raised -- until the whole question of jurisdiction 18 understood and agreed to. HMJr: Yeah. H: We didn't settle anything except that he wants my counsel to talk with his counsel to see whether this shouldn't be submitted to the Board for appro- val, or even whether we might have authority to do it 8.8 e. fiscal agent. HMJr: Now will you do something for me? 5: Yeah. Regraded Unclassified 59 - 3 - HMJr: Will you have Logan also talk to Ed Foley? H: Yes, I'll be glad to. HMJr: And have him bring him up to date? H: Yes. HMJr: I'll tell Ed that he'll expect a call from Logan on this. H: That's right. But I just wanted you to know how it has progressed. HMJr: I understand. H: And I think I'll have to have Logan talk to the Board's counsel. HMJr: O. K. H: And then I'll have him talk to Foley. HMJr: I appreciate very much your calling me. H: All right. HMJr: Thank you. H: I think it -- it's all right. I think there's no disposition on his part to disagree at all. HMJr: No. H: But it's a question of -- you know HMJr: I understand. H: prestige and feelings, and the idea that they would be the ones to stand the gaff if anything was wrong, and that they probably ought to be given an opportunity to approve. HMJr: Right. Well, thank you for calling, and if you would tell Logan to -- also to speak to Ed Foley. H: All right. I will. HMJr: Thank you very much. - 4 - 60 H: First rate. HMJr: Good night. H: Good night. IS JR PL.11 London Dated October 5, 1939 Rec'd 1:32 p.m. Secretary of State, Washington. 1941, October 5. FOR TREASURY FROM BUTTERWORT. To the surprise of many in the city there was no change in the bank rate today, which remains at 3%, the money and stock markets had anticipated and largely discounted a change of et least 1/2%. It would seem that the lowering of the rate is being adved (s a timely stimulus for the Inunching of C. government locn and that its flotation may not bE fcr distent in view of the fact that money rates have been out of touch with bank rate since D. day or two after it WCS lowered from 4 to 3% lnst WEEK immediately after the budget. In spite of C. return of notes from circulation of pounds 3 million end C. drop in public deposits of pounds 4.5 million shown in this WEEK'S Bank of England return, there wea e decline of pounds 1 million in bankers deposits, Government securities in the banking department having been reduced by pounds 6.7 million. his appears to indicate that the authorities are not just yet preparing the morket for = new loan. The 62 -2- #1941, October 5, from London. The strength of sterling which is evident in NEW York is also reflected in adjustments in the 01:10 al rates for continental currencies; the Dutch guilder WC.O fixed at 7.52060, the belga at 23.85 - 24.10, and the Swiss franc at 17.85-18.00 today, c.11 these currencies having been also slightly depreciated yesterday in terms of sterling according the official rates, 0.3 compared with those reported in my No. 1890 of October 2, 4 p.m. With the NEW York rate at 4.05, the British authorities are toking dollars an positions in NEW York are being covered. KENNEDY CSB eser 63 JI PLAIN London Dated October 5, 1939 Rec'd 1:35 p.m. Secretary of State Washington 1940 Fifth FOR TREASURY FROM BUTTERWORTH. I venture to suggest that the lending article in the DER DEUTSCHE VOLKSWIRT of September 8, 1939 on German war finance is worth obtaining and reading in connection with No. 1926, October 4. Incidentally this article has been circulated in several of the British Government Departments concerned as worthy of study. KENNEDY OSR 03V13319 eeer & on Internation - - - - TOTAL - of has 04 JI PLAIN London Dated October 5, 1939 Rec'd 1.23 p.m. Secretary of State Wachington 1939 October 5, 6 p.m. FOR PURCELL FROM BUTTERWORTH Reference my 1930, October 4, 9 p.m. In reply to questions in the House of Commone this afternoon regarding the sale of Canadian securities the Chancellor of the Exchequer stated "Under the Canadian exchange regulations purchases of securities from non-residents are prohibited EXCEPT with permission. I understand that permission is not at present being granted by the Canadian authorities for purchase from any non-resident whether in the United Kingdom, the United States or Elsewhere. No action hns been taken here beyond informing the stock Exchange and other inquirers of the position in Canada. If The Canadian High Commissioner in London who cabled Ottawa for information received a reply today con- firming in substance the information contained in my telegram to you of yesterday. Please inform Treasury. KENNEDY CSB House TREASURY DEPARTMENT INTER OFFICE COMMUNICATION Z C5 DATE October 5, 1939 TO Secretary Morgenthau FROM Mr. Burgess The attached will give you our views on the financing on which we are all agreed. Last night I discussed the matter with Marriner Eccles and he was in favor of going ahead, but with a short issue 60 that there would be little doubt about its success. This noon Mr. Bell and I reviewed the matter fully with the other Federal Reserve Board members, Governor Eccles being away, and a large majority of them were vigorously in favor of going ahead in accord- ance with the plan suggested. Mr. Ransom was the only one who had any doubts. They were all also agreeable to dispensing with a meeting of the Executive Committee and handling the matter informally. whis TREASURY DEPARTMENT E6 INTER OFFICE COMMUNICATION DATE October 5, 1939 TO Secretary Morgenthau Mesers. Bailie, Burgess, and Bell FROM Memorandum Here 18 our notion of a financing program. (1) No final decision until Monday morning. (2) Friday - Burgess to consult with New York Reserve Bank and interview dealers as to condition of market, and, with Bailie, to telephone Secretary Morgenthau and Bell. (3) Saturday - Bell to mail blank circulare to Federal Reserve Banks (confidentially). (4) Monday A.M. - Burgess to stay in New York, con- ferring with Herrison and Sproul, and checking with market. Secretary Morgenthau, Bailie, and Bell in Washington for final decision, con- ferring, if necessary, with Reserve Board. No formal meeting of Executive Committee or inter- views with dealers in Washington (to leave complete freedom of decision). (5) Monday 1:00 P.M. - Final information to go to Reserve Banks. (6) Tuesday A.M. - Books open with an announcement they will be closed Wednesday night. We consider it important to go through with this program unless conditions are very adverse. words Regraded Unclassified 67 October 5, 1939 Secretary Morgenthan Mr. Burgess The attached will give you our views on the financing on which ve are all agreed. Last night I discussed the matter with Marriner Eccles and he vas in favor of going shead, but with & short issue 80 that there would be little doubt about its This noon Mr. Bell and I reviewed the matter fully with the other Federal Reserve Board members, Governor Eccles being away, and a large majority of them were vigorously in favor of going shead in accord- ance with the plan suggested. Mr. Ranson wes the only one who had any doubts. They were all also agreeable to dispensing with a meeting of the Executive Committee and handling the matter informally. (Initialed) W.R.B. October 5, 1939 Secretary Morgentham Mesers. Bailie, Surgees, and Bell Memorandum Here is our notion of 8. financing program. (1) No final decision until Monday morning. (2) Friday - Burgess to consult with New York Reserve Bank and interview dealers as to condition of market, and, with Bailie, to telephone Secretary Morgenthau and Bell. (3) Saturday - Bell to mail blenk circulare to Federal Reserve Banks (confidentially). (4) Monday A.M. - Burgess to stay in New York, con- ferring with Harrison and Sproul, and checking with market. Secretary Morgenthau, Bailie, and Bell in Washington for final decision, con- ferring, if necessary, with Reserve Board. No formal meeting of Executive Committee or inter- views with dealers in Washington (to leave complete freedom of decision). (5) Monday 1:00 P.M. - Final information to go to Reserve Banks. (6) Tuesday A.M. - Books open with an announcement they will be closed Wednesday night. Ve consider it important to go through with this program unless conditions are very adverse. (Initialed) W.R.B. 69 October 5. 1939 GENORANDIR To: Mr. Livesey From: Mr. Cochras Reference is made to Cablegram #2316, dated October 4, 1939, 10 P.M. from the American Ambaccador at Paris. Within recent weeks the United States Treasury has been requested by the Central banks of various neutral European countries to accept gold from them in Europe. The Treasury has unifermly replied that in present circumstances 11 is following the policy of purchasing gold only upon delivery in New York. The Treasury sincerely regrete that it is unable to deviate from this established practice. HWO:enk 10.5.39 it BMR 500ml special messerger Regraded Unclassified DEPARTMENT OF STATE ADVISER ON INTERNATIONAL ECONOMIC AFFAIRS By instruction of the Secretary of State to be delivered to the Secretary of the Treasury by hand. Hiving Received 1.20 P.M. Oct st 1939- 70 thing PARAPHRASE OF TELEGRAM RECEIVED FROM: American Embassy, Paris, France DATE: October 4, 10 p.m. , 1939. pee Cochran's NO.: 2316 mind to RUSH. Diversey 10/5/39 SECRET. FOR THE PRESIDENT AND THE SECRETARY OF STATE. I received 8. telephone call this evening from Daladier, who said that he had a serious problem which he wished to talk over immediately with me. I went at once to see him at the War Ministry. He said that the German Minister at Brussels four days ago presented to the Belgian Government a note which stated that his Government regarded the Belgian Government's acquiescence in British blockade measures as a participation of Belgium in the British blockade. This was intolerable for Germany, and unless Belgium should take the position that any goods which were received in Belgium could be sent through to Germany without let or hindrance, Germany would take the most violent measures against Belgium. Similar notes couched in equally violent language were presented on the same day to the Dutch and Swedish Govern- ments by the German Ministers accredited to them. The terms of the notes in each case were 80 insulting and bellicose that the respective Ministere had wished, but had not dared, to refuse to receive them. The Regraded Unclassified 71 - 2 - The Belgian, Dutch and Swedish Governments informed the British Government of these approaches by the German Government, and the conclusion was reached that Germany was looking for a pretext for invading Belgium, the Nether- lands and Sweden. The French and British Governments had sought to dis- cover what reasons there might be for Germany to invade the three countries. There were obvious military reasons. Aside from them, it had seemed to all the Governments concerned that probably Germany intensely desired to acquire the gold now in Belgium, the Netherlands and Sweden. In addition, there were vast stocks of diamonds in Belgium and the Netherlands and an important stock of wolfram in Belgium. Daladier went on to say that the British Government two days ago proposed to the Belgian, Dutch and Swedish Governments that they should send their gold stocks to Great Britain for safekeeping, and that Belgium and the Netherlands should place the diamond stocks in security in the same way, and that Belgium should remove to England its wolfram stock. Each of the three Governments replied individually that it would not dare to send its stocks of gold either to Great Britain or to France, einoe the Germans would hold 72 - 3 - hold such an act to be proof that these neutral Governments were cooperating with the British and French Governments and that this therefore justified the German argument with regard to the blockade. Daladier had been in contact with the British Govern- ment today and it WAB decided to ask me whether the Govern- ment of the United States might not find it possible in one way or another to acquire for safekeeping the gold holdings of Belgium, the Netherlands and Sweden, and at the same time Daladier wished to ask me whether some method could not be devised for shipping the Belgian and Dutch diamond stocks to the United States for safekeeping, and whether the United States could not acquire the Belgian wolfram stock. I answered that I B&W no objection of a legal character to any of the Governments purchasing dollars with the gold they now have in their possession. Obviously, since Germany has been sinking Swedish and other neutral ships, the Belgian and Dutch Governments would be reluctant to place their gold reserves on board ships since the ships might be sunk or captured. I had no 1dea whether or not there was any possibility of the United States Government acquiring the gold in question while it was still on the European side of the Atlantic. The questions of the diamonds Regraded Unclassified 73 - 4 diamonds and the wolfram would require special thought and special handling, being very different from the question of the gold. Daladier asked me to report at once to you what he had said, and I promised to do 80. I appreciate that there may be political reasons for not taking any action whatsoever in this matter. It occurs to me that if there are no political objections, the Sec- retary of the Treasury might individually and confidentially inform the Belgian Ambassador and the Dutch and Swedish Ministers at Washington that the United States Government knew of the demarche of the German Government and that within the framework of the Tripartite Monetary Agreement the Government of the United States would be glad to purchase for dollars the gold now held by the Ambassador's or the Minister's country, and would be glad to sell it back to his country, when it should have reached the United States, after deducting transportation and insurance charges, et cetera. If there are no political objections, it might also be possible to arrange that some large American diamond importing house should purchase the diamonde in question on an understanding that the Government in question should repurchase them on arrival in New York, after deducting duties 74 - 5 - duties and other charges. I do not know whether the wolfram could not be acquired by the United States Government with part of the appropriation for the purchase of strategic minerals. Daladier did not have in mind what amounts of gold, diamonds and wolfram were involved, but said that he would have Georges Pernot bring me the details tomorrow. I some replied that until had % indication from you that the United States Government would be interested in pursuing the matter further, I should prefer not to 800 the Minister of Blockade. In case you take up this matter, as I hope you will, it might be wise to emphasize that we are merely ready 88 loyal parties to the Tripartite Monetary Agreement to try to cooperate with our associates in the Agreement, and that we are not pressing them to take any such action 8.8 has been suggested. After all, we have no direct indication that any one of the three neutral Governments actually wishes to ship gold, diamonds or wolfram to the United States. It 18 to be remembered, on the other hand, that at the present moment, the small European countries are 80 fearful of attack by Germany and BO suspicious that the German Govern- ment has all their codes in its hands - which is probably a fact 75 - 6 - a fact - that it 1s doubtful whether any one of them would dare to make any proposal of this kind by telegram to Washington. However, they might be exceedingly glad to receive a telegram from their representatives in Wash- ington informing them that under such circumstances the Government of the United States would be ready to cooperate with them. BULLITT. COPY 76 PAP GRAY SS SANTA ELENA Dated October 5. 1939 Rec'd 3:39 a.m. Oct. 6. Secretary of State Washington 46, October 5, 10 p.m. FOR THE SECRETARY OF THE TREASURY. My very grateful thanks to you for your message. The results achieved in the economic and financial field were made possible by the cooperation which you and your associates afforded me and I want you to know of my very real appreciation. WELLES CFV PARAPHRASE OF TELEGRAM RECEIVED FROM: American Embassy, Paris, France DATE: October 5, 1939, 6 p.m. NO.: 2340 FOR THE TREASURY. We had lunch today with Robert Masson, who 18 the General Manager of the Credit Lyonnais, and 18 one of the soundest and most respected members in the financial community in Paris. We asked him how he felt French exchange control was functioning now. He said that the French still had many unsolved problems and many headaches; however, in the change over from a free economy, this was inevitable, and the French had made much progress. He added that France was most fortunate in having 8.8 Governor of the Bank of France and a.8 Minister of Finance two men who were not only intelligent and practical but whose natural sympathies toward 8. liberal economy resulted in a more understanding operation of exchange control and corollary measures than would otherwise be the case. H e mentioned that British restrictions were "much more severe" though of course he appreciates the differences in the problems of the two countries. END SECTION ONE. BULLITT. EA:LWW 78 PAP GRAY PARIS Dated October 5, 1939 Rec'd 7:05 p.m. Secretary of State Washington 2340, October 5, 6 p.m. (SECTION TWO). The French measure regarding foreign assets (our telegram yo, 2028, September 18, 1 p.m. and 2253, Septem- ber 29, 7 p.m.) he found particularly satisfactory. The fact that Franch holders of foreign securities abroad are merely required to declare them or carry them (*) French banking account and are not obligated physically to transfer them to France was decidedly advantageous. (He mentioned for instance that some of his clients have foreign securites in Switzerland. These, under Swiss regulations, have been required to be turned over. to the authorities and have been buried somewhere in the mountains at a spot known only to said authorities; to obtain them and have them returned to Paris hE said would bE both costly and complicated). Financially he shares the optimistic views, as reported in our various tele- grams, of the Government financial authorities in re- gard to the country's favorable situation. HE does not believe 79 PAP -2- 2340, October 5, 6 p.m. (SECTION TWO) from Paris believe that a Government long term loan will bE Either advisable or necessary for some months to COME and is thus in accord with Couvede Murville's opinion (telegram No. 2215, September 27, 8 p.m.). HE also Expressed the view (?) that France's war purchases abroad could bE taken care of without Embarrassment out of Existing gold, fortign Exchange and foreign security holdings without recourse to long term credits for a period well in EX- CESS of C. year, thus sharing Reynoud's optimism (our telegra... No. 1923, September 12, 6 p.m.) BULLITT JRL:CFW (*) Apparent omission E0 PARAPHRASE OF SECTIONS THREE AND FOUR OF TELEGRAM NO. 2340 OF OCTOBER 5, 1939, FROM THE AMERICAN EMBASSY, PARIS. It 18 also Masson's belief that, slowly and painfully, the balances of normal commerce and industry are starting to turn. However, he feels that progress will be slow, because at best war plays havoc with normal commercial interchange, production, credit, employment and transport. There is & general feeling, moreover, that in marked contrast to mobiliza- tion of the military, civil evacuation problems and sub- sequent distribution and care of those who were evacuated have not been handled well, thus adding another burden to the inevitable confusion which exists in the "peace" areas of the country. Reference: Embassy telegrams No. 2180 of September 26 and 2254 of September 29 - Masson believes that there will be fairly general utilization of the Bank of France discount facilities for those mobilized and those who are temporarily in financial difficulties. He does not hink there will be many defaults in the end, however. He cited the experiences of the World War to bear this out, saying that a Frenchman will pay his obligations where there 16 an element of the "optional" in contrast to his attitude when a "compulsory" measure has been imposed. Masson anticipates early trouble from the air from Germany, just 6.8 most people in France do. He is preparing to move as much of the routine administrative personnel of his large organization as 16 possible; he said that if they had two or three alarms of air raids during the day and 81 - 2 - and as many at night, it becomes impossible to work both from a physical and physiological standpoint. Therefore he believed it best to send the personnel away from Paris, but he himself plans to stay in the city as long as he can. END OF MESSAGE. BULLITT. Q3V1303R ecei 8.20 EA:LWW TRANSA Mid as will 82 TREASURY DEPARTMENT WASHINGTON October 5, 1939. 711 MEMORANDUM FOR THE SECRETARY: Referring to Mr. Hull's letter of October 4, the S/S JEAN LA FITTE did sail from Glasgow about September 17 and is about due in New York. The S/S ANTINOUS did not sail and I understand that the charter was disapproved by the Maritime Commission and an effort was made to substitute another Amer- ican ship for this vessel, I think, however, without success. Since my memorandum to you of September 26, I think this situation has rectified itself and 1s now pretty much a closed matter, but at the time I did discuss this with you I considered it a very dangerous situation. Banil Mains Regraded Unclassified 83 October 5, 1939. MEMORANDUM FOR THE SECRETARY: Referring to Mr. Hull's letter of October 4, the S/B JEAN LA FITTE did sail from Glasgow about September 17 and is about due in New York. The S/S ANTINOUS did not sail and I understand that the charter was disapproved by the Maritime Commission and an effort was made to substitute another Amer- ican ship for this vessel, I think, however, without success. Since my memorandum to you of September 26, I think this situation has rectified itself and is now pretty much a closed matter, but at the time I did discuss this with you I considered it a very dangerous situation. 84 October 5, 1939. MEMORANDUM FOR THE SECRETARY: Referring to Mr. Hull's letter of October 4, the a/s JEAN LA FITTE did sail from Glasgow about September 19 and 10 about due in New York. The 8/8 ANTINOUS did not sail and I understand that the charter was disapproved by the Maritime Commission and an effort was made to substitute another Amr- ican ship for this vessel, I think, however, without success. Since my memorandum to you of September 26, I think this situation has rectified itself and is now pretty much a closed matter, but at the time I did discuss this with you I considered it a very dangerous situation. Blis de 4a 85 October 5, 1936. MEMORANDUM FOR THE SECRETARY: Referring to Mr. Hull's letter of October 4, the S/S JRAN LA FITTE did sail from Glasgow about September 17 and is about due in New York. The s/s ANTINOUS did not sail and I understand that the charter was disapproved by the Maritime Commission and an effort was mude to substitute another Amer- ican ship for this vessel, 1 think, however, without success. Since my memorandum to you of September 26, I think this situation has rectified itself and is now pretty such a closed matter, but at the time I did discuss this with you I considered it a very dangerous situation. Milds Regraded Unclassified THE SECRETARY OF THE TREASURY 86 October 5, 1939 MEMORANDUM FOR MR. BASIL HARRIS: Please comment on this for me. H.M.Jr. Bluden E7 THE SECRETARY OF STATE WASHINGTON October 4, 1939. My dear Henry: This refers to your note to me of September 27th, enclosing a memorandum from Commissioner Harris. I have obtained the following information, which I am sure is reliable: The Maritime Commission did not approve charters for the ships mentioned in the memorandum. Under the original terms of the Commission's Order No. 18, it was not necessary for a ship owner to obtain the Commission's approval of a charter of not more than one year's duration, and the one year period was subsequently cut to six months. But on September 11, 1939, the Commission cancelled its Order No. 18, and it is now no longer possible to charter an American ship to a foreign charterer without the Commission's approval. The Jean LaFitte and the Wacosta were chartered for one voyage and are back in their owners' hands. The Antinous' charter was never consummated, because the charterer sought to substitute another ship and this was disapproved. Sincerely yours, The Honorable Henry Morgenthau, Jr., Secretary of the Treasury Washington, D. C. Secretary September 26, 1989. MEMORANDUM FOR THE SECRETARY: The Meritime Commission bas given approval to the Bater- SAD Steamship Company (an American company) to charter their American flag steamers S/S JEAN LA FITTE and the B/S ANTINOOS to the Anchor Line of Clasgow (a British company) for a voyage between Clasgew and New York, replacing two British ships that were with- drawn for troop carriers. This 18 . similar situation to the B/S BACOSTA, which is owned by the sure company and likewise was chartered to the Anchor Line and which was the first American flag ship stopped by a Cermen submarine. The ship's manifest was examined closely by the sub- marine Commender and the vessel was allowed to proceed, after three hours delay, with a severe warning. All three vessels were chartered to Brivish owners before the President's Neutrality Preclemation, and load from Glasgow to New York. Inassuch as the loeding 18 done by British owners, end these American shipe replace Britieb ships withdrawn for war service, I consider charters of this nature extremely dangerous, and it 18 By firm opinion that both of these charters should be cancelled, regardless of when the charter was entered into, or regardless of any expenses incurred. BB/nkb TREASURY DEPARTMENT W 89 INTER OFFICE COMMUNICATION DATE October 5, 1939 TO Secretary Morgenthau FROM Mr. White Subject: Has National Socialism Weakened or Strengthened the Position of Capitalism in Germany? The Nazie have weakened German capitalism in the following ways: 1. They have eliminated the functions performed by individual initiative and free enterprise in the economic system. The business man has no right to decide on price policy, investments, and wage rates. By law, all prices are stabilized at the level of October 17, 1936, and no changes may take place without the prior consent of the Reich Price Commissioner, nor extensions or improve- ments of plant be made without prior approval. The fix- ing of wage contracts is in the hands of the official Treuhande der Arbeit, and no competitive bidding up of wages by employers 1a permitted. In especially important industries it 18 not in the business man's hands but in those of 8 number of Plenipotentiary Commissionere to allocate raw materials, standardize output, senction expansions, and consolidate firms. The Nazis have taken over complete control of the credit system and capital market 80 that they can canalize all savings into public projecte, ration credits, and direct all new investment. The Nazis have established complete control over foreign trade and capital movements which are regulated to suit the political objectives of the Nazi regime. 20 Secretary Morgenthau - 2 2. The Nazis have eliminated the usual forms of compe- tition between businesses which are the mainspring of cap- italism. They have fostered increasing cartelization of industry and have intensified the concentration of economic power. 3. The Nazis, while socially and politically springing from the middle class, are destroying the economic base of the middle class by directly foreing small firms out of busi- ness, handicapping small firms through the system of economic controls, by bearing down on small and independent entrepre- neurs such 88 storekeepers, and eliminating the independent artisans. The middle class 18 one of the essential features and a potent reserve of a healthy capitalist system. 4. The Nazis have strengthened the feudal and anti- capitalist features of German agriculture by preventing the break-up of the large Junker estates, by establishing the entailment of 700,000 family farms, and by rigorous govern- ment control over agriculture. Private initiative and the profit motive have been almost completely driven out of agri- culture. 5. They have strengthened and exploited anti-capitalist sentiment by contemptuously labelling the Western powers as demoplutooracies and identifying Jews with capitalism. They appear to have strengthened German capitalism in the following ways: 1. They have destroyed the power of the independent German trade unions and all opposition parties. 2. They have maintained such wage and price controls and such a volume of government orders as to restore dividend rates to & point equal to the highest pre-depression level. The average dividend rate in April 1939 was 6.57 percent. Many important industries paid much higher dividend rates. 3. They have eliminated unemployment and substituted a chronic shortage of labor for a chronic shortage of employ- ment. The number of unemployed rose to a high of 6,000,000 in 1932, or almost B. third of the labor force. Unemployment today is negligible, totalling only 70,000 in May out of a labor force of almost 22 millions. 91 Secretary Morgenthau - 3 4. They have altered the German tax system 80 as to impose a greater share of the total tax burden than formerly on the working class. The yield of the Reich sales tax rose from 1 billion marks in 1928-9 to 3.357 billion in 1938-9. The wage tax rose from 1.415 billion to 2.091 billion. Con- sumption taxes increased from 1.773 billion to 2.883 billion. Customs revenues rose from 1.105 to 1.818 billion, on & greatly diminished volume of trade. 5. They have opened up new areas for German business in Austria, Ozechoslovakia, Poland and Southeastern Europe. But these measures actually weakened German capitalism because: 1. The destruction of trade unions and the submergence of all opposition do not necessarily strengthen capitalism. On the contrary they may actually weaken it by closing up all safety valves and canalizing all opposition, however mild, into A dangerously revolutionary direction. 2. A controlled economy 18 much less flexible and much less capable of sustaining crises -- whether political or economic -- than a free one. If ever the Nazi regime exper- iences a major defeat, or if ever the economic machine begins to go into reverse, the process of disintegration will be that much more rapid and irresistible. 3. The elimination of unemployment has been attained at the cost of extensive sacrifices on the part of labor. Until this month wage rates were maintained at depression levels, and now they have been further reduced. Hours of labor have been considerably lengthened, and mobility of labor 1e rig- orously controlled by the State. The cost of living has risen, social services have been out, and levies on the workers' in- come increased. Total money wages in Germany are actually less now than in 1929, although employment 16 greater, and the real wages of all labor much lower. In this situation the capitalistic system can only hold together by the avoid- ance of any political defeat or economic reversal. 4. The increase in the income of German capitalista is to some extent illusory because all profits above 6 percent must be reinvested in government securities and because of the extremely high tax rates on individuals and corporations. Moreover with the elimination of the middle class this increased income 18 shared by a smaller part of the population. 92 Secretary Morgenthau - 4 5. The areas opened up to economic exploitation by Nazi conquests are unpromising and are a much less adequate outlet for German enterprise than free international trade would be. To a considerable degree the new areas added to the Reich are not complementary but competitive with the economy of the Old Reich, and none contains the essential raw materials in which the Reich is lacking. In any case they are a less fruitful field for commercial intercourse with the Reich than the old markets it has lost. 53 JIL GRAY PARIS Dated October 5, 1939 Rec'd 5:25 p.m. Secretary of State, Washington, 2343, October 5, 7 p.m. (SECTION ONE) FOR THE TREASURY The secrities market WES active and moved up today pertly on WE basic of Deladier's firm declare- tions before the Foreign Affcirs Committee of the Chamber yesterday and partly on the belief that Italy will not lend herself to Germany's "peace" maneuver. Both French and international issues advanced, Suez rising another 375 francs. Rentes registered advances ranging from 45 centimes to 1.25 on the firmness of the franc in NEW York yesterday. The Journal Official today publishes the decree BET- ting up the general food supply service and the decree concerning the wheat office (our telegram No. 2309, October 4, 6 p.m.) GULLITT EMB 94 JIL GRAY PARIS Dated October 5, 1939 Rec'd 7:15 p.m. SECRETARY of State, Washington. 2343, October 5, 7 pame (SECTION TWO) A further measure in the Journal Official regulates the landlord-tenant relationship in wartime. It pro- vides among other things that mobilized persons may cancel their leases or obtain rent reductions up to 75% unless the landlord can prove that the tenant is able to pay more. Business people and individuals whose financial situation has been changed by the war may bE granted similar reductions in agreement with their landlord or by virtue of a court judgment in lieu thereof. For their part landlords adversely affected by the provisions of this decree will bE permitted to obtain postponement of interest payment on mortgages and those with menger re- sources unable to collect rent due them will bE Entitled to SEEK relief payments from the public authorities in spite of their previously insligible status ns property owners. (END SECTION TWO) BULLITT NPL SS OJ GRAY PARIS Dated October 5, 1939 Rec'd 7:12 p.m. Secretary of State, Washington. 2343, October,5, 7 p.m. (SECTION THREE). The Bank of France statement dated September 28 published today reveals that commercial advances further decreased by 843,000,000 francs. Advences against securi- ties decreased by 16,000,000 francs and thirty day ad- vances by 645,000,000. Advances to the state under the recently authorized 25,000,000,000 amount to22,200,000,000. The note circulation increased by 624,000,000. Current and deposit accounts decreased by 591,000,000. The Treasury account WBS reduced by 210,000,000, to a total of 342,000,000. Open market operations are down 16.5 millions. The ratio of gold COVER decreased from 59.03% to 58.98%. (END OF MESSAGE). BECEINED BULLITT EMB eeer a in 10-5-39 FROM: MR. GASTON'S OFFICE 96 TO: The Secretary w Iral Stark sent by hand to Whesche last + who containing this information: A'miral Rneder of the German havy called in our novel attache last night and told him they ind 1-formation an attack would be made "off " American Coast" on the Maritime Commission 1140 Iroqucis which left Cobh Tuesday evehing refugess for U.S., that it would be "under sinther circumstances" to Athenia incident and resigned to create antagonism against Germany, that the shin if she arrived safely should to thoroughly searched for explosives. President and Maritime Commission have been informed by Tavy and these steps taken: = information has been radioed to the master of the Iroquois by interectional code, Two Restroyers XXXXXX of the patrol have been ordered to convoy the ship and London and Borlin have been natified that American warvessels will fire on 17 cruft seon attacking en American merchant 7431 1. All available cutters will patrol trans- Atlontic scalane off our Coast. Arran rements for in "em York are being made. I have informed "ris. Termans plainly imply Tritish are doing this int there seems reason to suspect a German 10% my have planted explosive on the ship-- 15 % the is not altorether a cock-and-hull day by the formans. N.M. 15-6-29 -daire 97 FROM: MR. GASTON'S OFFICE TO: The Secretary = werege about the sub arine off Cape Thrida came in to Coast Guard headquarters about 12:30. It was in code. After decoding :0 cimider Hershfield began phoning about 1. From Rose and I were both out to lunch and : didn't think he should give it to one of the irls. He got Rose as soon as possible of 7:15 return. A'dral Stark on receipt of the message institely phoned Hyde Park and asked for the graident. He not word the President was out 1 a super house and didn't want to be disturbed, let that Stark should call back at 4:30. When is doea this he will also tell the President about :- Columbus, which news Wuesche gave him. and Miami Mesche is calling Jacksonville about the delay, will also tell operators and others down the in 1:00 dout expediting these obviously important I have told Wnesche to give such megenres to enybody in 4 office. The two secretaries always - Viere to get me. 19 10-6-29 1:50 critan FROM: MR. GASTON'S OFFICE 98 October 6, 1939 TO: MR. GASTON Comd'r Hirschfield phoned at 1:45 p.m. the following message from the Coast Guard Miami Air Station: Sent 10:00 a.m. this morning. Unidentified submarine sighted by sea- plane V-112, .fifteen miles east of Cape Florida. Submarine immediately submerged. P.S. Cape Florida is seven miles south of the entrance to Miami harbor. TOP am reports no - u.s. and in used that about There yestular This today, though me The first verified report - came 5 my notice of a other Them Mi S. 6 our coast. 71.9. 10-6-39 FROM: MR. GASTON'S OFFICE 99 The Secretary TO: 3:02 p.m. Waesche is working personably on the submarine matter and will call me back . Our radio men just now intercepted a message sent in plain language (French) by a station in the French West Indies and apparently intended for French and British warvessels in those waters saying the German steamship Columbus had just sailed from Vera Cruz. K 100 EDA GRAY BERLIN Dated October 5, 1939 RECEIVED 8:40 pame Secretary of State Washington 1601, October 5, 7 p.m. For several days rumors have been current that Germany would send a large trade delegation to Moscow. The first confirmation of the rumor appeared in this afternoon's report of the German official telegraph agency which carries the following despatch from Moscow: "According to informed sources the German trade delegation is EXPECTED in Moscow on October 7 to conduct negotiations with the appropriate authorities looking toward the development of trade exchanges between Germany and the Soviet Union which was fore- cast in the German Soviet treaty of September 28. Minister Schnurre will be at the head of the delega- tion. Representatives of the larger German firms and concerns are also Expected in Moscow whose task it will bE to set in motion en immediate proctical reali- zation of t E trade agreements". Inform Treasury: KIRK RR TREASURY DEPARTMENT 101 INTER OFFICE COMMUNICATION DATE October 6, 1939 TO Secretary Morgenthau 10 am FROM Y. H. Hadley Short Term Issues A two-year CCC note would sell at 5/8ths of a point premium on a 1-1/8% coupon and 7/8ths of a point premium on a 1-1/4% coupon. A three-year RFC issue would sell at about 5/8ths of a point premium on a 1-1/4% coupon and about 1 point premium on a 1-3/8% coupon. A four-year Treasury note would sell at about 3/4s of a point premium on a 1-1/4% coupon and about 1-1/4 points F emium on a 1-3/8% coupon. A five-year Treasury note would sell at about 3/4s of a point premium on a 1-1/4% coupon and about 1-1/4 points premium on a 1-3/8% coupon. TREASURY DEPARTMENT 0 P INTER OFFICE COMMUNICATION DATE TO Secretary Morgenthau October 6, 1939, FROM Mr. Foley Re: Tour Request for Information on the Anti-Smuggling Act, The Anti-Smiggling Act of August 5, 1935, was sponsored by the Treasury Department as a result of the widespread post-repeal smuggling of Liquor into the United States along our seaboards which, at its peak in late 1934 and early 1935, was estimated to be costing the Government $30,000,000 ennually in revenue losses. You will remember that on March 8, 1935, you appeared at hearings held by the Kays and Means Committee on this bill and ande A strong statement in its support. The Act, which widely extended the jurisdiction of the United States over the waters adjoining its coasts, is based on the legal theory that while a nation may not extend its territorial waters (which most nations, including the United States, regard as extending to a distance of three miles from shore, and within which the jurisdiction of a nation is as absolute and opplete, broadly speaking, 88 if the land extended up to that point), a nation may, under international law, exercise limited jurisdiction for purposes of national safety and protection of the revenue to such a distance from its shores as is reasonably necessary for those purposes. That zone, which will differ with circumstances and cases, is sometimes referred to as jurisdictional waters. The provision of the Anti-Smuggling Act which has attracted the most Interest and comment is section 1, which provides for the establishment of "customs-enforcement areas". That section authorizes the creation of such Bread beyond the existing 12-mile limit of customs control whenever the President finds and declares that vessels are hovering or being kept off the coast of the United States outside customs waters, and that, by virtue of their presence, the unlawful introduction into or removal from the United States of merchandise or persons may be accomplished or threatened. The establishment of such areas is made subject to two geographical limitations: (1) only such waters on the high seas should be within a customs-enforcement area as are in such proximity to vessels hovering or being kept off the coast that the smuggling of merchandise or persons may be carried on by, to, or from such vessels; (2) no customs-enforcement area shall include waters more then 100 miles in either direction up and down the coast from the immediate area where the vessele involved are present (that is, 200 miles in all) or zore than 50 miles out to sea beyond the existing 12-mile customs limit Regraded Unclassified - 2 - (that 1s, a total of 62 miles seaward). Within those customs-enforcement areas coast guard and customs officers, or other persons authorised by the Secretary of the Treasury, are empowered to enforce those lows which apply to the high seas adjacent to American customs waters. Sections 1 and 203 of the Act contain provisions authorising American officers to board, search, and seise vessels in customs-enforcement areas when the circumstances warrant it. It should be noted, however, that there are specific provisions in the Act precluding American officers from enforcing laws to customs-enforcement areas against vessels of nations with which we have treaties where such action would contravene treaties. The treaties which are contemplated in those pro- visions of the Act are the so-called liquor treaties which the United States has with 16 other nations, including Germany, France, Poland, and England, which treaties authorize seizure of the vessels of such nations only within en hour's sailing distance of the coast. Five customs-enforcement areas were set up by presidential proclamation between August and December 1935. Three of those extend in a line approximately from the Canadian border to Atlantic City, New Jersey, and the other two are in the Gulf of Mexico. Although liquor smuggling activity is now virtually non- existent in those areas, the areas have never been terminated by presidential proclamation, which is required by section 1 of the Act. The remaining provisions of the Act may be covered briefly. From the standpoint of combeting smiggling, the most important is section 3, which sub- jects to forfeiture vessels built, fitted out, or employed for amuggling or to defraud the revenue. Other sections of the Act (1) prohibit smuggling offenses by our nationals and vessels against the revenue laws of such foreign countries as reciprocate by similarly penalizing their nationals end vessels for smuggling into the United States; (2) provide for the general increase of fines and penalties relative to smuggling and for the penalizing of acts particularly indicative of smuggling activity but not otherwise covered by law; (3) provide for effective administrative control over boats of less than 500 tons (which is the type of boat usually used for liquor sumuggling), and for similar control over small contact bosts which bring the contraband from hovering vessels; (4) provide for changes in rules in proof in forfeiture proceedings to enable ef- fective handling of such cases. It is worth noting that the phrase "hovering vessel", which is used frequently throughout the Act, is defined in the Act to mean a vessel found or kept off our coast within or without customs waters if, from all the circumstances, it is reasonable to believe that that vessel is being or may be used to facilitate "the introduction or attempted introduction of merchandise into the United States in violation of the laws respecting the revenue". Regraded Unclassified 3 - Two provisions of the Act which are perhaps worthy of separate mention are sections 205 and 206. Section 205 prescribes penalties and forfeitures for vessels from foreign ports or places which (1) unlade any merchandise within the customs waters of the United States without permit; (2) tremship liquor, or merchandise the importation of which into the United States 1s prohibited, to vessels of the United States within or without customs waters; or (3) tranship liquor, or merchandise the importe- tion of which into the United States 18 prohibited, to any vessel within or without customs waters if the circumstances indicate e purpose to have the liquor or merchandise smuggled into the United States. Section 206 subjects to boarding and search any hovering vessel (es defined above), any reasel which faile within customs waters (12 miles) or within a customs-onforcement sres to display lights required by law, or any vessel which fails to stop when required to by a customs or coast guard officer. Such vessels may be brought into an American port for sxamination, and for forfeiture if dutiable merchandise destined to the United States 10 found to be, or to have been, on board the vessel. The Anti-Smuggling Act has been markedly successful in results. To it, 86 well ao to the Treasury's more effectively coordinated enforcement activities, may be attributed the virtually complete elimination of post- repeal liquor smuggling which was once costing the Government $30,000,000 year. The effect of the Act, however, has perhaps been largely psychological ince there have actually been relatively few 08868 made under it and there has been only one reported court opinion construing it. The Reidum (D.C., R.D.N.Y., 1936) 14 P. Supp. 771; 15 F. Supp. 112. In this connection, I think you will be interested in the attached reprint which we have just received of an article by 8. Professor of International Law at Cornell University which recently appeared in French in B. Belgium periodical of international lew, "La revue de Droit international et de Legislation Comparee". This article quotes at some length your testimony in 1935 before the Ways and Means Committee on the Anti-Smiggling Bill (see page 3 of the reprint), as well as other statements made by you. The article concludes that the Anti-Smuggling Act represents a sound exercise of extra- territorial jurisdiction on the part of this country under international law and that the Act has been eminently successful. (Initialed) 8. B. ?. Jr. Original sent to the President 10/6'39 Allinchments Regraded Unclassified PUBLIC-No. 238-74TH CONGRESS] (H, R. 7980) AN ACT To protect the revenue of the United States and provide measures for the more effective enforcement of the laws respecting the revenue, to prevent smuggling, to authorize customs-enfurcement areas, and for other purposes. Be it enacted by the Senate and Поихе of Representatives of the United States of America in Congress assembled, TITLE I SECTION 1. (a) Whenever the President finds and declares that IT'S any place or within any area on the high sens adjacent to but outside customs waters any vessel or vessels hover or are being kept off the const of the United States and that, by virtue of the presence of any such vessel or vessels at such place or within such area, the unlawful introduction or removal into or from the United States of any merchandise or person is being or may be occasioned, pro- moted, or threatened, the place or area so found and declared shali constitute a customs-enforcement area for the purposes of this Act. Only such waters on the high seas shall be within 11. customs-enforce- ment orea as the President finds and declares are in such proximity to such vessel or vessels that such unlawful introduction or removal of merchandise or persons may be carried on by or to or from such vissel or vessels, No customs-enforcement area shall include any waters more than one hundred nautical miles from the place or immediate area where the President declares such vessel or vessels are hovering or are being kept and, notwithstunding the foregoing provision, shall not include any waters more than fifty nautical miles outwards from the outer limit of customs waters. Whenever the President finds that, within any customs-enforcement area, the circumstances no longer exist which gave rise to the declaration of such area as a customs-enforcement area, he shall so declare, and thereafter, and until a further finding and declaration is made under this subsection with respect to waters within such area, no waters within such area shall constitute a part of such customs-enforcement area, The provisions of law applying to the high seas adjacent to enstoms waters of the United States shall be enforced in a customs- enforcement area upon any vessel, merchandise, or person found therein. (b) At any place within a customs-enforcement area the several officers of the customs may go on board of any vessel and examine the vessel and any merchandise or person on board, and bring the -inne into port, and, subject to regulations of the Secretary of the Treasury. it shall be their duty to pursue and seize or arrest and otherwise enforce upon such vessel, merchandise, or person, the pro- Visions of law which are made effective thereto in pursuance of sub- section (n) in the same manner as such officers are or may be author- ized or required to do in like case at any place in the United States Regraded Unclassified by virtue of any law respecting the revenue: Provided, That nothing contained in this section or in any other provision of law respecting the revenue shall be construed to authorize or to require any officer of the United States to enforce any law thereof upon the high nas upon a foreign resil in contravention of any treaty with a foreign government enabling or permitting the authorities of the United States to board, examine. search, seize, or otherwise to enforce upon such vessel upon the high seas the laws of the United States except ILS such authorities are or may otherwise be enabled or permitted under special arrangement with such foreign government: Provided pather, That none of the provisions of this Act shall be construed to relieve the Secretary of Commerce of any authority, responsi- bility, OF jurisdiction now vested in or imposed op that officer. Sec. 2. (a) Any person owning in whole or in part any vesse) of the United States who employs, or participates in, or allows the employment of, such reseel for the purpose of smuggling, or attempt- ing to counggle, or assisting in smuggling, any merchandise into the territory of any foreign government in violation of the laws there in force, if under the laws of such foreign government any penalty or forfeiture in provided for violation of the laws of the United States respecting the enstoms revenue, and any citizen of, or person domi- eiled in, un any corporation incorporated in, the United States, con- trolling or substantially participating in the control of any such vessel, directly DE indirectly, whether through ownership of COR porate shares or otherwise, and allowing the employment of mid vessel for any such purpose, and any person found, or discovered to have been, on board of any such vessel so employed and participating or assesting in any such purpose, shall be liable to B. fine of not more Han 85,000 or to imprisonment for not more than two years, or to both such fine and imprisonment. (b) It shall constitute an offense under this section to hire out OF charter a vessel if the lessor or charterer has knowledge that, or if such vessel is leased or chartered under circumstances which would give rise to # reasonable belief that, the lessee or person chartering the vesael intends to employ such vessel for any of the purposes described in subsection (a) and if such vessel is, during the time such lease or charter is in effect, employed for any such purpose. Sm. 3, (a) Whenever any vessel which shall have been built, pur- chased, fitted out in whole or in part, or held, in the United States or elsewhere, for the purpose of being employed to defraud the rev. enno OF to smuggle any merchandise into the United States, or to amuggle any merchandise into the territory of any foreign govern. ment in violation of the laws there in force, if under the laws of such foreign government any penalty or forfeiture is provided for viola- tion of the laws of the United States respecting the customs revenue, or whenever any vesel which shull be found, or discovered to have States for any such purpose, or in anywise in assistance thereof, or been, employed. or attempted to be employed, within the United whenever any ressel of the United States which shall be found, or discovered to have been, employed, or attempted to be employed al any if place, for Any such purpose, or in anywise in assistance thereof, not subsequently forfeited to the United States OF to A foreign government, in found nt any place at which any such vessel may be 106 (Prs. 3 examined by an officer of the customs in the enforcement of any law respecting the revenue, the said vessel and its cargo shull be seized and forfeited. (b) Every vessel which is documented, owned, or controlled in the United States, and every vessel of foreign registry which in, directly or indirectly, substantially owned or controlled by any citizen of, or corporation incorporated, owned, or controlled in, the United States, shall, for the purposes of this section, be deemed a vessel of the United States. (c) For the purposes of this section, the fact that a vessel has become subject to pursuit as provided in section 581 of the Twriff Act of 1930, as amended, or in a hovering vessel, or that a vessel faile, at any place within the customs waters of the United States or within a custone-enforcement area, to display lights as required by law, shall be prima facie evidence that such vessel is being. or has been, or is attempted to be employed to defraud the revenue of the United States. See: 4. Subject to appeal to the Secretary of Commerce and under such regulations as he may prescribe, whenever the collector of customs of the district in which any vessel is, or is sought to be, registered, enrolled, licensed, or numbered, is shown upon evidence which he deems sufficient that such vessel is being, or is intended to be, employed to smuggle, transport, or otherwise assist in the unlaw- ful introduction or importation into the United States of any mer- chandise or person, or to smuggle any merchandise into the terri- tory of any foreign government in violation of the laws there in force, if under the laws of such foreign government any penalty or forfeiture is provided for violation of the laws of the United States respecting the customs revenue, or whenever, from the design or fittings of any vessel or the nature of any repairs made thereon, it is apparent to such collector that such vessel has been built or adapted for the purpose of smuggling merchandise, the said col- lector shall revoke the registry, enrollment, license, or number of Lid vessel or refuse the same if application be made therefor, us the case may be. Such collector and all persons acting by or under his direction shall be indemnified from any penalties or actions for damages for carrying out the provisions of this section. Smo. 5. Any vessel or vehicle forfeited to the United States, whether summarily OF by n decree of any court, for violation of any law respecting the revenue, may, in the discretion of the Secre- tary of the Treasury, if he deems it necessary to protect the revenue of the United States, be destroyed in lieu of the sale thereof under existing law, Sec. 6. Except into the districts adjoining to the Dominion of Canada, or into the districts adjacent to Mexico, no merchandise of foreign growth or manufacture subject to the payment of duties shall be brought into the United States from any foreign port or place, or from any hovering vessel, in any vessel of less than thirty net tone burden without special license granted by the Secretary of the Treasury under such conditions as he may prescribe, nor in any other manner than by sea, except by aircraft duly licensed in accord- nnce with law, or landed or unladen at any other port than is directed by law, under the penalty of seizure and forfeiture of all 4 (Pts m) (Yve 218) 0 soch undermed lambed OF unladen in any manner. or accompanying brands mer- versels or aircraft and of the Marks, merchandise labels, imported port n° other place without the United States, which facts may be ovidenced by the testimony or depositions of foreign administrative therein indicative of foreign origin, found upon such real officials or certified copies of their records or by other sufficient evi- (if stamps, containers of merchandise of the upon foreign any origin dence, shall, in addition to any other penalties provided by law, at asseraft, (ii shall be prima facie evidence of ac-liable to a fine of not more than $1,000 or to imprisonment for not sub merchandise. is jive hundred met tobs, from a foreign II port certificate or place, In sublition to any other requirement of law, every vessel, more than two years, or to both such fine and imprisonment. TITLE 11 not exceeding has visited IN Lovering vessel, shall earry wines, other for of vergible into the United States of any spirits, destined or Stution 201. Section 401 of the Thriff Act of 1980 (U. S. C., the importation tigures on board thereof (sea stores issued excepted), by consular officer to Supp. VII, title 10, sec. 1401) is amended by adding at the end abroholic Prited States. stid certificate to be a thereof the following new paragraphs: of the 11" The Secretary of State and the Secretary other alcoholic the United States or other authorized person pursuant of the to Treas. such -(1) OFFICER or TUE Customs-The term officer of the any officer of the Customs Service or any commissioned, war- regulations may jointly prescribe Any spirits. wines, or have been, TAAT, or petty officer of the Coast Gund, or agent or other person QTY (wes Apres excepted) found. or discovered to within upon authorized by law or by the Secretary of the Treasury, or appointed such visal at my place in the United States, which or the in writing by a collector, to perform the duties of 116 officer of the ans WHOM. without said certificate on board, United are Twill Customs Service. THE have IL bonn tide distination without the States. "(m) CUSTOMS WATERS,-The term custonts waters means, in Visall stown to andread and forfeited and in the ense of any such merchandise the CORP of a foreign vessel subject to a treaty or other arrangement to il foreign port or place, a bond shall be required in between a foreign government and the United States enabling or dontilo - no amount of the dities to which such merchandise would permitting the authorities of the United Stutes to board, examine, less entiject it imported into the United States, conditioned upon the seneeb, seize. OF otherwise to enforce upon such vessel upon the high delivery of mid merchandise at such foreign port or place as may FPIS the laws of the United States, the waters within such distance las has a consuler officer of the United States or otherwise of the const of the United States as the suid authorities are or may ar provided in with regulations Provided. That if the collector shall tw an embled OF permitted by such treaty or afrangement and, in Bu that the certificate required for the importation of any the pagen of every other vessel, the waters within four leagues of the sports. wines or other alcoliotic liquors was issued and was lost or coust of the United States. without fraund, or was defaced by secident, or is incorret (iii) Hovemen VESSEL-The term ⁴hovering vessel means any by reason of clorical orror or other mistake, said penalties shall not resel which is found OF kept off the coust of the United States Inc menred TIDE shall such bond be required. This section shall caler within or without the vustoms waters, if, from the history, conduct. effect on the -ixtleth day following the enactment of this Act. or location of the vessel, it is reasonable to believe that Su. N. (a) If the master of ony vessel of the United States, THAT such vessel is being used or may be used to introduce or promote or exceding five hundred not cons, allows such vessel to be laden at de acilitate the introduction or attempted introduction of merchandise foreign point of other place without the United States with any met the United States in violation of the laws respecting the revenue. destined to the United States and consisting of any spirite. For the purposes of sections 432, 433, 434, 48, 588, and 586 of without or other alexibolic liquors (sea stores excepted), which facts this Act, any vessel which has visited any hovering vessel shall be may Inc exidement by the testimony or depositions of foreign admin- deemed to arrive or have arrived, NS the case may be, from a foreign invoice officials or cortified copies of their records or by other sufi- port or place." etent evidence, without certificate issued for the importation of such See. 202. Section 436 of the Tariff Act of 1930 (U. S. C,, Supp. merchandise into the United States as required by section i, the VII, title 19, sec. 1436) is amended by omitting the period at the mader of such ressol shall, in addition to any other penalties pro- end thereof and adding the following: and, if the vessel have, or vided by law, be Truble to A penalty vijual to the value of the said be discovered to have had, on bonrd any merchandise (sea slores merchandise for mt les than $1,000 and such vessel and such Tuer- excepted), the importation of which into the United States is pro- hibited, or any spirits, wines, or other alcoholic liquors, such master chanding shall be evized and forfeited. stall be subject to an additional fine of not more than $2,000 or to (In Wheever, being a citizen of the United States or a master of a member of the crew of 16 vessel of the United States, if such vosal imprisonment for not more than ribe year, OF to both such fine and not exceed five hundred net tons, shall, with intent to defraud imprisonment. Every ronster who presents IL forged. altered, or fulse document the revenue of the United States, procure, or aid or ussist in pro- mising, any merchnndise destined to the United States and consist- or puper on making entry of a vessel as required by section 434 or THE of any specits, wine, or other alcoholic liquors, without certifi- 485 of this Act. knowing the same to be forged. altered. or false and will out revealing the fact, shall, in addition to any forfeiture to rate record for the importation thereof into the United States 6.5 removed by section 7, to be Indun upon such vessel at any foreign which in consequence the vessel may be subject, be liable to A fine of Regraded Unclassified 128 6- (Pus. zal (PUP as.) 7 than $5,000 nor Invoi than $50 fine or and to imprisonment imprisonment." for not Income liable to seizure, and to arrest any person who shall become not mere two years, or to both such Tariff Act of 1930 (U. Liable to arrest, by virtue of any law respecting the revenue, as well more chan (a) Section 581 of the read follows: S, C., without as within their respective districts, and to lise all necessary Supp. Src. VII, you title 19, sec. 1581) is amended to as force to seize or arrest the same. "(g) Any vessel, within or without the customs waters, from SEC 681. BOARDING VESSELS which any merchandise is being, or has been, unlawfully introduced "(o) Any or vehicle at any place in authorized, the within a or officer of the customs may at any United time States go on board within of into the United States by means of any boat belonging to, or owned, controlled, or managed in common with, said vessel, shall be deemed any mean waters or, as he may be customs. to be employed within the United States and, as such, subject to the customs area established under the Anti-Smuggling within his Act, or at the provisions of this section, enforcement other authorized place, without as well as and and district, and (h) The provisions of this section shall not be construed Lo any the manifest and other documents and papers thereof examine, and authorize or require any officer of the United States to enforce any examine and search the ressel or vehicle every and part to this end law of the United States upon the high seas upon a foreign vessel inspect, trunk, parkage. or cargo 00 board, all force may in contravention of any treaty with a foreign government enabling hall any person, and stop such vesal OF vehicle, and use necessary to or permitting the authorities of the United States to board, examine, compel compliance. search, seize, OF otherwise to enforce upon said vessel upon the high Officers of the Department of Commerce and other persons was the laws of the United States except as such authorities are or authorized "(a) by such department may go on board of any vessel at may otherwise be enabled or permitted under special arrangement any hail, adap. and board such vessel in the enforcement naviga- place in the United States or within the customs of the waters and with such foreign government." (b) Section 8072 of the Revised Statutes (U. S. C, title 19, sec. sur and givent any person engaged in the breach or violation of the Lion laws und arrest or, in ense of escape or attempted escape, pur- 506) is hereby repealed. SEC. 204. (a) The last paragraph of section 584 of the Tariff navigation laws Act of 1930 (U. C., Supp. VII, title 19, sec. 1584) is amended to "(0) Any master of a vessel being examined as herein provided, read as follows: who presents my forged, altered, or false document or paper to If any of such merchandise 80 found consists of heroin, mor- the examining officer, knowing the same to be forged, altered, or phine, or cocaine, the muster of such vessel or person in charge of falm and without revealing the fact shall, in addition to any for- such vehicle or the owner of such ressel or vehicle shall be liable to feiure to which in consequence the vessel may be subject, be liable a penalty of $50 for each ottice thereof so found. If any of such a il flue of not more than $5,000 nor less than $500. merchandise 80 found consists of smoking opium or opium prepared "(d) Any yossel or vehicle which, at any authorized place, is for smoking, the master of such vesse) or person in charge of such required to come to a stop by any officer of the customs, OF is vehicle or the owner of such resel or vehicle shall be liable to a required to vane to IL stop by signal made by any vessel employed penalty of $25 for each onnee thereof so found. If any of such in the artice of the elistoms displaying the ensign and pennan nerchandise FO found consists of crude opium, the master of such proveribed for such read by the President, shall come to a stop, vessel or person in charge of such vehicle or the owner of such vessel and upon failure to comply, a vessel so required to come to a stop OF vehicle shall be liuble to a penalty of $10 for each ounce thereof sholl subject to purruit and the muster thereof shull be liable NO found. Such penalties shall, notwithstanding the proviso in sec- to a the of not (moile than $5,000 nor less than $1,000. It shall be tion 524 of this Act (relating to the immunity of vessels or vehicles the doy of the several offers of the customs to pursue any restel used as common carriers), constitute II lien upon such vessel which which any become subject to pursuit, and to board and examine the may be enforced by a libel in rem; except that the master or owner und (or examine my person or merchandise on board, without of a Vesal used by any person as a common carrier in the transaction 45 well as within their respective districts and at any place upon of business RS such cominion carrier shall not far liable to such pen- the high wird or, if permitted by the appropriate foreign authority. alties and the vessel shall not be held subject to the lien, if it appears ebewlere winre the vessel number be pursued as well as at any other to the Addisfaction of the court that neither the master nor any of anthorized place, the officers (including licensed and unlicented officers and potty "(v) If upon the examination of any vessel or vehicle it shall officers) nor the owner of the vessel know. and could not, by the appror Uni 11 breach of the laws of the United States is being or exercise of the highest degree of care and diligence, have known, that has been committed as to reinder such vessel or vehicle, or the such narcotic drugs were on board. Clearance of any such vessel merchandos, or 40y part thereof, on board of, or brought into the may be withheld until such penalties are paid or until N bond. satis- United Sintes by, such yourd or vehicle, liable to forfeiture or to factory to the collector, is given for the payment thereof. The secure any line or penalty, the same shall be seized and any person provisions of this paragraph shall not prevent the forfeiture of any who has engaged in such brench shall be arrested. such vessul or vehicle under any other provision of law." "(f) IL shall be the daty of the several officers of the customs to (b) Section 584 of the Teriff Act of 1930 (U, 8. C,, Supp. VII, with del any vormal, vehicle, OF merchandise which shall title 10. sec. 1584) is amended by adding al- the end thereof the following new paragraph: Regraded Unclassified 8 (Pos, (Pus. 211) 9 109 If of such merchandise (sea stores excepted), the importa- to twice the value of the merchandise but not less than $1,000, and tion spirits, wines, or other alcoholie liquors is importation of any which into the United States is prohibited. for or the which consists the vessel from which the merchandise is so unladen, and its eurgo and such merchandise, shall be seized and forfeited. of which any into the United States R certificate required under section "(d) If any merchandise (including sea stores) unladen in viola- shown, 7 be so found upon any vessel not exceeding hundred net of of the Anti-Smnggling Act and the required certificate five be tiol tion of the provisions of this section is transshipped to or placed in or received on any other vessel, the master of the vesse] on which the vessel shall, in addition to any other penalties herein or by such merchandise is placed, and any person aiding or assisting tons, law provided, be seized and forfeited. and, if any manifested mer- therein, shall be liable to a penalty equal to twice the value of the chaudise (sea stores excepted) consisting of any such spirits, wines, merchandise, but not less than $1,000, and such vessel, and its cargo other alcoholic liquors be found upon any such vessel and the and such merchandise, shall be seised and forfeited. (If required certificate be not shown, the master of the vessel shall be "(e) Whoever, at any place, if a citizen of the United States, or trable to the penalty herein provided in the case of merchandise not at any place in the United States or within one league of the const July numifisted: Provided. That if the collector shall be entisfied of the United States, if a foreign national, shall engage or aid or that the certificate required for the importation of any spirits, wine, assist in any unlading or transshipment of any merchandise in OF other alcoholic liquors was issued and was lost or mislaid without consequence of which any vessel becomes subject to forfeiture under intentional fraud, or was defaced by accident, or is incorrect by the provisions of this section shall, in addition to any other penalties reason of elerical error or other mistake, said penalties shall not be provided by law, be liable to imprisonment for not more than two years, Incurred." Sec. 205. Section 586 of the Tariff Act of 1930 (U. S. C., Supp. "(f) Whenever any part of the cargo or stores of a vessel has VII, title 19, sec. 1586) is amended to read as follows: been unluden or transshipped because of accident, stress of weather, SEC. 556, UNLAWFUL UNLADING OR TRANSSHIPMENT or other necessity, the master of such vessel and the master of any "(s) The master of any vessel from B. foreign port or place who vessel to which such cargo or stores has been transshipped shall, allows any merchandise (including sea stores) to be unladen from as soon as possible thereafter, notify the collector of the district such vessel at any time after its arrival within the customs waters within which such unlading or transshipment has occurred, or the and before such vessel has come to the proper place for the die collector within the district at which such vessel shull first arrive charge of such merchandise, and before he has received a permit to thereafter, and shall furnish proof that such unlading or transship- unlade, shall be liable to a penalty equal to twice the value of the ment was made necessary by accident, stress of weather, or other merchandise but not less than $1,000, and such vessel and its cargo unavoidable cause, and if the collector is satisfied that the unlading and the merchandise so unladen shall be seized and forfeited. or transshipment was in fact. dué to accident, atress of weather, or "(b) The master of any vessel from a foreign port or place who incurred." other necessity, the penalties described in this section shall not be allows any merchandise (including sea stores), the importation of which into the United States is prohibited, or which consists of any If, title 19, sec. 1587) is amended to read as follows: SEC. 206. Section 587 of the Tariff Act of 1930 (U. S. C., Supp. spirits, wines, or other alcoholic liquors, to be unladen from bis ressel at any place upon the high seas adjacent to the customs waters SEC. 587. EXAMINATION OF BOVERING VESSELS of the United States to be transshipped to or placed in or received (a) Any hovering vessel, or any vessel which fails (except for on any vessel of any description, with knowledge, or under circum- unavoidable cause), at any place within the customs waters or stances indicating the purpose to render it possible, that such mer- within a customs-enforcement area established under the Anti- chandise, or any part thereof, may be introduced, or attempted to Smuggling Act, to display lights as required by law, or which be introduced, into the United States in violation of law, shall be, has become subject to pursuit as provided in section 551 of this liable to R. penalty equal to twice the value of the merchandise but Act, or which, being a foreign vessel to which subsection (h) of not less than $1,000, and the vessel from which the merchandise said section 581 applies, is permitted by special arrangement with is 80 unladen, and its cargo and such merchandise, shall be seized a foreign government to be 50 examined without the customs waters and forfeited. of the United States, may at any time be boarded and examined by "(c) The master of any vessel from a foreign port or place who any officer of the customs, and the provisions of said section 581 allows any merchandise (including sea stores) destined to the United shall apply thereto, as well without as within his district, and in States, the importation of which into the United States is pro- examining the same, any such officer may also examine the master bibited, or which consists of any spirits, wines, or other alcoholic upon oath respecting the cargo and voyage of the vessel, and liquors, to be unladen, without permit to unlade, at any place upon may also bring the vessel into the most convenient port of the the high seas adjacent to the customs waters of the United States, United States to examine the cargo, and if the master of said to be transshipped to or placed in or received on any vessel of the vessel refuses to comply with the lawful directions of such officer United States or any other vessel which is owned by any person I or does not truly answer such questions as are put to him respecting citizen of, or domiciled in, the United States, or any corporation the vessel, its cargo, or voyage, be shall be liable to a penalty of incorporated in the United States, shall be liable to a penalty equal not more than $5,000 nor less than $500. If, upon the examination 120 10 Ifts 31 (Pys. 11 of any merchandise destined to the the vessel and found, or such venel or its cargo by any United officer of States the customs, is any "(b) Any member of the crow of any such vessel and any person who assists, finances, directs, or is otherwise concerned in the unlad- dutiable to have been, on board thereof, be that its cargo. ing, bringing in, importation, landing, removal, concealment, har- discovered im avided nod forfeited. It shall presumed of which any mer- boring, or subsequent transportation of any such merchandise shall (sen (tores excepted), the importation of into the exceeding $100 in value, or into whose control or possession the chardise States is probibited, or which consists discovered any to spirits, have withes, same shall come without lawful excuse, shall, in addition to any United other sleoholic liquors, so found, or States. been, on other penalty, be liable to a penalty equal to the value of such or board thereof, in destined to the United goods, to be recovered in any court of competent jurisdiction, or to (W) If any vessel laden with cargo be found at within any place in the imprisonment for not more than five years, or both." States or within the customs waters or n. customs. Sec. 209. Section 4197 of the Revised Statutes, as amended (U. 8. enforcement United area established under the Anti-Smuggling ballast Act and C., title 46, sec. 91), is amended by striking out the second sentence such vessel afterwards is found light or in or having dis- and inserting in lieu thereof the following: charged its cargo or any part thereof, and the master the is unable to "If any vessel bound to a foreign port (other than a licensed give thereof, consisting of any merchandise the importation of which a due account of the port or place at which cargo, or any yacht not engaging in any trade nor in any way violating the reve- nue laws of the United States) departs from any port or place in into part the United States is prohibited or any spirits, wines, or other the United States without a clearance, or if the master delivers a stroholic liquors, was Inwfully discharged, the vessel shall be suized false manifest, or does not answer truly the questions demanded of and (orfeited him, or, having received a clearance adds to the cargo of such vessel "(c) Nothing contained in this section shall be construed to moder without having mentioned in the report outwards the intention to any vessel liable to forfeiture which is bona fide bound from one do 80, or if the departure of the vessel is delayed beyond the second foreign port to another foreign port, and which is pursuing her day after obtaining clearance without reporting the delay to the conrme, wind and weather permitting." collector, the master or other person having the charge or command Sec. 207. Section 615 of the Tariff Act of 1930 (U. S, C., Supp. of such vousel shall be liable to a penalty of not more than $1,000 VII, Litle 19, noe, 1615) is amended by inserting a comma in place of nor less than $500, or if the cargo consists in any part of nareotic the period at the end thereof and adding the following: subject drugs, or any spirits, wines, or other alcoholic liquors (sea stores to the following rules of proof: excepted), a penalty of not more than $5,000 nor less than $1,000, "(1) The testimony or deposition of the officer of the customs for each offense, and the vessel shall be detained in any port of the who has bonrded or required to come to a stop or seized a vessel United States until the said penalty is paid or secured." or vehicle, or has arrested a person, shall be prima facie evidence SEC. 210. Section 1 of the Act approved June 7, 1918 (40 Stat. of the place where the act in question occurred. 002; U. S. C., title 46, sec. 288), is amended by adding at the end "(0) Marks, labels, brands, or stamps, indicative of foreign origin, thereof the following new sentence: 44 When a number is awarded or accompanying mechandise or containers of merchandise to IL vessel under the provisions of this Act, a certificate of such whall de prima facie evidence of the foreign origin of EUC) ( ward shall be issued by the collector, the said certificate to be at all times kept on board of such vessel and to constituto a document in "(3) The fact that (L vesse) of any description is found, or die lieu of curollment or license." covered to have been, in the vicinity of any hovering vessel and under any indicating contact or communication there- TITLE III with. whether by proceeding to or from such vessel, or by coming Tve in the victuity of such vegel, or by delivering to or receiving from SECTION 301, Section 434 of the Teriff Act of 1930 (TT. S. C., such resert any merchandise, person, or communication, or by any Supp. VII, title 19, 500, 1434) is amended by inserting after the other affecting contact or communication therewith, shall words a na indicated in the register a comma and the following: be prima facle evadence that the vessel in question has visited nich or document in lieu thereof,". SEC. 302. Subsection (3) of section 441 of the Tariff Act of 1980 bowering resse)." Sinc. 00% Sertion sone of the Revised Statutes (U. 8. C., title (U, S. C., Supp. VII, title 19, sec. 1441 (3)) is amended to read ns follows: 19. see (88) is amended to read as follows) Sre, (a) All vessels, with the tackle, apparel, and furni- "(a) Yachts of fifteen gross tons or under not permitted by law (ure thereof. and all vehicles, animals, aircraft, and things with the to carry merchandise or passengers for hire and not visiting any tackle, and equipment theref, used in, or employed to aid hovering vessel, nor having at any time or, if forfeited to the United un. or to Carilitate by obtaining information or otherwise, the States or to a foreign government, at any time after forfeiture, mulading, bringing in, importation, landing, removal, concealinent, become liable to seizure and forfeiture for any violation of the laws of the United States." harboring, or subsequent transportation of any merchandise upon Sec. 303. So much of section 585 of the Tariff Act of 1930 (U. the enmo or otherwise unlawfully introduced, or attempted to be C., Supp. VII, title 19, sec. 1585) as comes after the words and intenduced into the United States shall be suized and forfuited. the purson in charge of such vehicle shall be liable to MA line of 8500," Regraded Unclassified 12 13 111 (Pes, tall (Per. to read as follows: and any such vessel or such vehicle shall dent shall prescribe, the same to be flown as circumstances require. is amended forfeited. and any officer of the customs to the may most cause convenient vessel or If any vessel or boat, not employed in the service of the customs, la vehicle to be arrested and brought back port shall, within the jurisdiction of the United States, without authority, carry or hoist any pennant or ensign prescribed for, or intended to of the United (a) States." Section 591 of the Tariff Act of 1930 (U. S. C., resemble any pennant or ensign prescribed for, Coast Guard vessela, Ste. VII, 301. title 19, sec. 1501) is amended of by such inserting false after the the master of the vessel 50 offending shall be liable to a fine of not Supp. or airls of proctires the making any statement less than $1,000 and not more than $5,000, or to imprisonment for words matter miterial thereto without reasonable " whether cause to believe not less than six months and not more than two years, or to both W to brush any of such sustement," the following: lawful or not the such fine and imprisonment, the United States shall or may be deprived of the duties, or any "(b) For the purposes of this section, any place in the United thereof, accrding upon the merchandise, or any portion States or within the customs waters of the United States as defined partion thereof, embraced or referred to in such invoice, declaration, affi- in the Anti-Smuggling Act, shall be deemed within the jurisdiction of the United States." davit, letter, paper, or statement; Section are of the Taciff Act of 1930 (U. S. C., Supp. VII, Sw. 309. Whosoever without authority shall use the uniform or title (b) 19. sec. 1692) is amended by inserting after the words or aids badge of the Coast Guard, or the Customs Service, or of any foreign provides the making of any such false statement as to any matter revenue service, or any uniform, clothing, or badge resembling the OF material thereto without reasonable cause to believe the truth of such same, while engaged, or assisting, in any violation of any revenue statement," the following: whether or not the United States shall Law of the United States, shall be fined not more than $500 and may be deprived of the lawful duties, or any portion thereof, imprisoned not more than two years. or accoung upon the merchandise, or any portion thereof, embraced or Sgc. 310. Section 4189 of the Revised Statutes (U. S. C., title 46, referred to in ench invoice, declaration, affidavit, letter, paper, or sec. 60) is amended by striking out the words not entitled to the benefit thereof' statement; Sm. 305. (a) Section 619 of the Tariff Act of 1930 (U. S. C., Sw. 311. Section 4218 of the Revised Statutes, us amended Supp. VII, title 19, sec. 1619) is amended by inserting after the (U. S. C., title 46, sec. 106), is amended by inserting after the words words custome laws" wherever they appear in that section the except those of fifteen gross tons or under the words H exempted by law,". words OF the navigation laws". (b) Section 619 of the Tariff Act of 1930 (U. S. C., Supp. VII, SEC. 312. Section 4336 of the Revised Statutes (U, S. C., title 46, title 19, sec. 1618) is amended by adding at the end thereof the fol- sec. 277) is amended to read as follows: lowing new sentence: If any yessel, vehicle, merchandise, or bag- Sec. 4336. Any officer concerned in the collection of the revenue gage is forfeited to the United States, and is thereafter, in lieu of may at all times inspect the register or enrollment or license of any sabs, destroyed under the customs or navigation laws or delivered vessel or any document in lieu thereof; and if the muster of any to any governmental agency for official use, compensation of 95 per such vessel shall not exhibit the same, when required by such officer, eentum of the appraised value thereof may be awarded and paid by he shall be liable to a penalty of $100, unless the failure to do so is the Secretary of the Treasury under the provisions of this section, villful in which case he shall be liable to a penalty of $1,000 and to 1 fine of not more than $1,000 or imprisonment for not more than une hut nut to exceed $50,000 in any case." Swe, 300, So much of section (21 of the Tariff Act of 1930 (U, year, or both." C, Supp. VII, title 19, sec. 1621) as precedes the proviso is amended SEC. 313. Section 4377 of the Revised Statutes (U. S. C., title 46, sec. 325) is amended to read as follows: to not as follows: "No auit or action to recover any pecuniary SEC. 4377. Whenever any licensed vessel is transferred, in whole penalty or forfeiture of property accruing under the customs laws shall be instituted unless such suit or action is commenced within or in part, to any person who is not at the time of such transfer il five years after the time when the alleged offense was discovered:" citizen of and resident within the United States, or is employed in any other trade than that for which she is licensed, or is employed in Sto. 207 Section 2068 of the Revised Statutes (U. S. C., title 18, any trade whereby the revenue of the United States is defrauded, or sec. 122) is amended to read as follows: Sm 3008. If the master of any vessel shall obstruct or hinder, is found with a forged or altered license, or one granted for any other vessel, or with merchandise of foreign growth or manufacture (sea or shall intentionally cause any obstruction or hindrance to any stores excepted), or any taxable domestic spirits, wines, or other officer in lawfully going on board such vessel, for the purpose of alcoholic liquors, on which the duties or taxes have not been paid or carrying into effect any of the revenue or navigation laws of the secured to be paid, such vessel with her tackle, apparel and furni- United States, he shall for every such offense be liable to IN penalty ture, and the cargo, found on board her, shall be forfeited. But of not more than $2,000 nor less than $500." vessels which may be licensed for the mackerel fishery shall not incur Src. 308. Section 2764 of the Revised Statutes (U. 8. C., title 14, such forfeiture by engaging in catching cod or fish of any other sec. 64) is amended to read as follows: description whatever. For the purposes of this section, marks, labels, Stc. 2764. (n) Coast Guard vessels shall be distinguished from brands, or stamps, indicative of foreign origin, upon or accompany- other vessels by an ensign and pennant, of such design as the Presi- ing merchandise or containers of merchandise found upon any vessel, Regraded Unclassified 14 (Pea. 112 shall be prima facie evidence of the foreign origin of such mer- chandise." 314. Section 7 of the Act approved June 19, in 1886 (ch. 421, 94 the Act of February 28, 1933 (47 Stat. first 1349), sentence and amended by Src. Stat. 81; U. S. C,, title 46, secs. 317, 319), as is part repealed by striking out the period at the end of the the second inserting a inserting comma in lieu thereof the following: manufacture on board in lieo thereof, and by striking 44 out and if she have sentence and excepted). any or any taxable domestic spirits, wines, or alcoholic merchandise of foreign growth or other (sea stores liquires, on which the duties or taxes have not been paid or secured and the lading found on board, be forfeited. Marks, labels, brands, to be paid, she shall, together with her tackle, apparel and furniture, OF stamps, indicative of foreign origin, upon or accompanying mer- chandise or containers of merchandise found on board such vessel, shall be prima facie evidence of the foreign origin of such mer- chandise. But if the license shall have expired while the vessel was at sea. and there shall have been no opportunity to renew such license, then said fine or forfeiture shall not be incurred." TITLE IV SECTION 40L When used in this Act: (a) The term 44 United States", when used in n geographical sense, includes all Territories and possessions of the United States, except the Philippine Islands, the Virgin Islands, the Canal Zone, American Samoa, and the island of Guam. (b) The termi officer of the customs means any officer of the Customs Service or any commissioned, warrant, or petty officer of the Coast Guard. or agent or other person authorized by law or by the Secretary of the Treasury, or appointed in writing by B collector, to perform the duties of an officer of the Customs Service. (c) The term " customs waters " means, in the case of a foreign vessel subject to a treaty or other arrangement between a foreign government and the United States enabling or permitting the authorities of the United States to board, examine, search, seize, or otherwise to enforce upon such vessel upon the high seas the Isws of the United States, the waters within such distance of the coast of the United States as the said authorities are or may be so enabled or permitted by such treaty or arrangement and, in the case of every other vessel, the waters within four leagues of the coast of the United States. (d) The term "bovering vessel M means any vessel which is found or kept off the coast of the United States within or without the customs waters, if, from the history, conduct, character, of location of the vessel, it is reasonable to believe that such vessel is being used or may be used to introduce or promote or facilitate the introduction or attempted introduction of merchandise into the United States in violation of the laws respecting the revenue. Sec. 402. If any clause, sentence, paragraph, or part of this Act, or the application thereof to any person, or circumstances, is held invalid, the application thereof to other persons, or circumstances, and the remainder of the Act, shall not be affected thereby. SEC. 403. This Act may be cited as the "Anti-Smuggling Act". Approved, August 5, 1935, 113 Herbert W. BRIGGS Professeur de droit international à la Cornell-University. Les Etats-Unis et la loi de 1935 sur la contrebande. Etude de la zone contiguë et des critères de « raisonnabilité ». Extrait de la Revue de Droit international et de Législation comparée (n° 2. 1939). BUREAU DE LA REVUE : 22, rue des Paroissiens, Bruxelles. 114 LES ETATS-UNIS ET LA LOI DE 1935 SUR LA CONTREBANDE. Etude de la zone contiguè et des critères de " raisonnabilité », par Herbert W. BRIGGS, Professeur de droit international à la Cornell-University La récente législation sur la contrebande () aux Etats-Unis sou-- lève diverses questions intéressantes pour le légiste international. Les difficultés que suscitait pour les autorités américaines la pré- vention de la contrebande sous l'ancienne loi de prohibition sont bien connues; cette loi aboutissait finalement à une série de con- ventions sur l'alcool. Aprés l'abrogation de la loi de probibition. le 5 décembre 1933, et après la législation de la fabrication, de la vente et de l'importation de boissons alcoolisées, on s'attendait à ce que cessât le trafic de contrebande. En effet, les instructions données à la Garde des côtes des Etats-Unis, il la première ligne de défense contre les Funi-runners ", furent réduites d'une manière drastique pour l'année 1935. En fait, le Secrétaire de la Trésorerie estimait (le 8 mars 1935) que la perte causée au fisc américain par l'importation illégale de Palcoul aux Etats-Unis après l'abrogation se chiffrait à plus de 30 millions de dollars par an (¹. Tandis que le nombre de bateaux de contrebande, rôdant près de la côte des Etats-Unis, était seulement de deux en mars 1934, en mars 1935 trente-neuf bateaux étrangers étaient 0 connus par la Garde des côtes pour être régulièrement engagés dans le trafic illicite de (1) Do 5 apût 1935 : 19 L'. S. Statutes 317, C. 438: 19 U.S. Code Annotated secs, 1701-1711. Truis breis articles sur celte législation CHIFE été publiés aux Etats-Uuis: J. IL ROBERTSOS dans 35 Michigan Law Review (1937), 1146-1137: P, C. JESSEY dans 31 American Journal of International Law (1937), 101-106; et S. J. SPISOARS, cité plus loin. Le texte complet en anglais de la loi de 1935 contre la contrebande se trime dans 31 A.1.1. L (1937), Supplément, PP. 183-197. (²) Hearings 08 the Anti-Smuggling Act (H. R. 5196) before the Committee on Ways and Means of the House of Representatives 74th Congress, 1st Session Government Printing Office, Washington, 1953, P. 1. Dans la suite cité de la manière suivante Hearings e, 115 HANDERT W. BRIGGS e a LES ÉTATS-UNIS ET LA LOI DE 1935 sun LA CONTHERANDE 218 219 Palent et ridant précisément en dehors de la limite des douze ces opérations de trés près. Depuis plusieurs années la Garde des milles des customs waters ( ). Le système employé par la contre- côtes a établi un dossier complet sur l'histoire, les chargements et hande la technique des contrebandiers ont été décrits les mouvements de chaque bateau repéré comme étant engagé UR fonctionnaire du General Counsel's Office du Département dans la contrebande d'alcool, Elle l'a fait grâce aux informations par de la Trésorerie La plupart des bateaux destinés à la contre- recueillies par des consuls et des agents du Trésor à l'étranger, bande de l'aleool soilt d'origine étrangère, car cela leur assure par l'interception des ondes de T.S.F., et par différentes autres time certaine immunité. Ils sont facilement reconnaissables par la méthodes d'espionnage ('). construction. pourvus de moteurs Diesel. de profil bas, en moyenne Mais avec une côte ayant plus de 10,000 milles d'étendue, il était malessios de 15 tonies. d'un type étroit e demi-chasseur pratiquement impossible d'empêcher que les bateaux rôdeurs ne prints June sale conteur de guerre, on les remarque aisément de violent la loi (°), En raison de la nature du problème en présence print mais ils sout méconnaissables à quelque distance. Remplis duquel il se trouvait, le Département de la Trésorerie prépara, vers stationd photherd (ils sont généralement chargés de 12.000 la fin de l'année 1934, une nouvelle législation pour prévenir la 13.0000 gallous). ils travaillent entre les ports des eaux canadiennes contrebande. Le projet de loi, qui fut attentivement rédigé par le of the bases SUTS CUSM changées aux Indes occidentales ou en Amé- Département de la Trésorerie, fut voté par le Congrès et prit force rique centrales ils (ont en moyenne des tournées d'un mois. En rii- de loi le 5 août 1935. stumi un have de nos cótes à chaque tournée, en dehors, précisé- ment. de nos caux territuriales, pendant des journées entières, et partois somines, ils attendent une occasion d'échapper à la sur- Dans le but d'empécher radicalement l'importation illicite d'al- veillonce permanente des gardes-côtes, et glissent leur chargement cool aux Etats-Unis, venant de la haute mer, les dispositions de lette à la been d'une mit brumeuse et sans lune. Parfois ils con- la loi sur la contrebande comprennent dillérents ordres de me- doisent eux-mémes leurs chargements à la côte, mais d'habitude sures: des bateairs de contact viennent à leur rencontre, après entente 1) Des mesures pour l'extension souple du contrôle douanier préable. Pratiquement tons les bateaux de contrebande ont des dans la zone de contrôle connue sous le nom de If customs-enfor- postes émeticurs et récepteurs de radio à ondes courtes. La plu- purt d'entre eus. bien qu'ils figurent nominalement sur des registres (9 Stephen J. SPINGARS The History and Results of the Smuggling Act N, à Federal Bar Association Journal (1937), pp. 33-4. cirangers, appartiement à des Américains ou sont contrôlés par (*) Voici un exemple donné par le Secrétaire de la Trésorerie, Morgenthau, PUNI leurs manvements et leurs contacts sont dirigés de la côte au Comiré de la Chambre des Représentants L'an dermier, nous en avons en un exemple avec le Mogal à la côte méri- par des stations clandestines de T.S. F. S'ils réussissent à mettre dionale de la Californie. Ils avaient l'andace de me rélégraphier: Si vous Be terre leur chargement d'alcool. ils prennent alors un autre char- fills bissez pas entrer et si vaus ne laisses pas passer cette matière par les donanes, BOITS la lernus entrer par n'importe quel moyen. Cela constituait, genent. Sils n's réassissent pas. ils peuvent mener leur charge- is mon avis, no tel affront pour le Gouvernement des Etats-Unis que noas primes ment d'alcool dans quelque port étranger, ou, ce qui est plus pro- la décision d'envoyer onze bateaux des Gardes-côtes, hors de la limite des bable. le décharger sur un autre navire de contrebande. fraiche- 12 milles, pour entonrer ce navire: nous avons employé des avions de la flutte et mis ce bateau sous une surveillance permanente et finalement nous l'avons mont approvisionné, on sur un navire de dépôt plus important, eu par la faim, alors qu'il était contraint de quitter les eaux et de repartir qui se Inlive plus éloigné et sert de base d'approvisionnement et pour le Mesique, Mais ce lot une très vaste opération et nous n'avons pas l'équipement nécessaire pour agir de méme chaque lois que Bous appretions de chargement. Il résulte du rapport que de vastes opérations la présence d'un mmmy en dehors de la limite des 12 milles. Nons ne pou- syndicales se cachent derrière ces faits. La Trésorerie surveille Yons pas envoyer tonte la Botte pour entourer ce bateau et ERRES poster en cet endroit. Dans ce cas particulier, cela a pris des mois entiers, mais nous avous allamé le hareau, Hearings, p. 16. Regraded Unclassified 116 5 LES ÉTATS-UNIS ET LA L01 DE 1935 SUR LA CONTREBANDE 221 HEARENT W. BRIGGS 4 220 rares exceptions, les codes pénaux nationaux contiennent des greas (e superfivies somises au contrôle de la douane =). coment mesures constituent la plus grande innovation de cette loi Repositions basées sur la conception que les Etats sont compé- tents pour légitérer pour la protection de leur sécurité et de in et Fessuren de leur validité dans le cadre du droit international leur crédit contre des actes délictueux, même quand de tels constituera la partic principale de cet article. actes sont commis par des étrangers en territoire étranger. La 2) Des mesures rendant illégaux certains actes contraires aux hase.d'une telle juridiction est plutôt la nature des intérêts violés intérêts des Etats-Unis commis n'importe où et par n'importe qui. que l'endroit où le fait a été commis ou la nationalité du délin- Par exemple: la section (ii) (1) de la loi soumet à la confiscation quant ('). La justification du principe de protection se trouve n'importe and bateau équipé ou possédé aux Etats-Unis ou dans ( l'insuffisance de la plupart des législations nationales en ailleurs, dans le but d'être employé pour détourner les revenus ce qui concerne la punition des contraventions commises dans ou pour faire la contrebande de n'importe quelle marchandise le territoire contre la sécurité, l'intégrité et l'indépendance des aux Enats-Unis si ce navire est trouvé à quelque endroit soumis Etats étrangers... En raison du fait qu'une majorité écrasante à notre contrôle dommier. d'Etats a adopté une législation de ce genre, il est difficile de sou- Cette mesure. qui firt appliquée au cas du Reidun (1), fonde tenir qu'une telle législation soit nécessairement un excès de pou- la inridiction sur la théorie de la protection. Le Harvard Research voir tel qu'il est reconnu par le droit international contempo- éern and sojet de ce principe de la juridiction : A part quelques rain ('). En général, les Etats-Unis ont basé leur législation sur les théories territoriales ou personnelles (nationales) de la compé- 1- mini, led rédigée dans has remites suivants (49 Stat. 318: 19 U.S.C.A. tence pénale, mais, dans de nombreux cas, comme ceux de la were no I'Enduction Suit 1 nº Tinues les loss ans mivite construit, scheté, équipé contrefaçon ou do faux témoignage devant les fonctionnaires con- ou em partiva ant TOTAL are Essistion on ailleurs, dans le has d'éire employé sulaires et diplomatiques américains à l'étranger, les Etats-Unis - mander (ive INI prese laire las contrebande d'une marchandise quelcoque ont appliqué la juridiction aux personnes qui sont en effet aux aux - pour payment on vontrehande time marchandise dans le term- inice d'ane government (milyer en violant les lois en vigueur dans ce temi Etats-Unis pour des infractions commises antérieurement, - indé- toire. -i. dans la l'eislation de co gouvernement étranger, il est prévu une pendamment du lieu de l'infraction ou de la nationalité du cou- va into contraction your la signation des his fiscales des pable (¹). ola la hais qu'in navire uni il été trouvé ost découvert entite atant employee. ve date DUY Etate-L'nis dans un tel has pour 3) Un troisième ordre de mesures, que l'on trouve dans la loi video de quilque mainere que or voi, una Inties les fois qu'un navire des Etat> contre la contrebande, est destiné à contribuer à l'élimination de Email again in name not décoment contine avant été employé, IIII tenté d'èue empline, diente title CD suit, dans 1111 tel but, pour y sider de cette législation protectrice que nous venons de discuter. La sec- spacique que ED with -il não jen né altérieurement confisqué aus tion 2 (a) (°) de cette loi punit toute personne (inter alia) possé- de Run. or dit navire el sun chargement doivent être sinis et - (*) Harvard Research in International Law, Jurisdiction with respect DIP pr Two mayoy qui ('M consideré, providé ou contrôlé aus Etate-Unis, ES cool Crime (1935), p. 513. Finances qui esta directement THE indirectement, la propriété (1) Id, pp. 352, 556, en Le visa - ly contrido d'un citizen, d'une association constituée give la (*) Clt. id., p. 544. Discriber de société, possédé au contrôlé aux Etate-Unis, doivent, dans le setts de (11) La sect. 2 (a) est rédigée en ves termes (49 Stat, 51%; 19 S. C, A. DI milks im considéres comme maries. des Elats-Unis sect. (702) [Traduction]: , 1 he with de of mile. un navire qui est sommis anx poursuites pré Sect 2. 4) Toute personne possédant en tout ou en partie n'importe quel à Carrich 581 de la fords tarila de 1930 sel qu'il est modifié, ou un navire navire des Etats-Unis, qui emploie, THE prend part à, ne permet Temploi de ce april riale, too FB importo quel endroit dans les eaux donumières navire dans le hit de passer en contrebande, ou de tenter de faire passer en del duma una , oublie d'exposer un contrebande, HILL qui aide à faire entrer en contrebande n'impurte quelle utar- formière la lui Terio, être présomés prima Jacie, être will de chandise sur le territaire d'un government étranger en violant les lois en ou ******* d'érce combre- Une Insurer le like des Etate-Unis. visuor dans cet Etat, si la législation de cet Euro prévoit une peine d'ainende plus funo PO 20 Regraded Unclassified 117 HEAREHY W. MRIGGS 6 7 LES ÉTATS-UNIS ET LA LOI DE 1935 SUR LA CONTRERANDE 923 tout of en rartie n'importe quel navire des Etats-Unis, de cette section tout navire enregistré à l'étranger, dont la pro- dant qui emploie en ce navire (lans le but de violer les lois sur la contre- priété ou le contrôle bénéficiaire est américain, doit être consi- bande de n'ingorte quel gouvernement étranger, e si la législa- déré comme américain. Cette disposition, qui a cet effet malheu- tion de a gouvernement étranger prévoit une amende ou la con- reus de substituer la propriété ou le contrôle à l'enregistrement fiscation pour la vindation des lois fiscales des Etats-Unis », comme critère de la nationalité d'un navire ("), est visiblement La nême invitation donnée aux gouvernements étrangers d'adop- basée sur le cas du I'm Alone ("). En l'espèce le I'm Alone M un ter une législation réciproque, proissant leurs nationaux en cas navire britannique enregistré au Canada ", avait été employé pen- de violation de juis this fiscales, se retrouve dans la section 3 (a) dant plusieurs années à la contrebande de l'alcool aux Etats-Unis. de to hi (*). La sections 2 (a) de la loi est faite sur le modèle de Il avait été découvert en 1929 en dehors de la limite des trois fit hi morvégienne do 25 inin 1926. Il parait qu'aucune réponse n'a milles, mais à une distance d'une heure de navigation de la côte êté taite, sous la furnie d'une législation réciproque, par un gou- des Etats-Unis, et coulé après une poursuite ácharnée en haute vernement Granger depuis l'établissement de la loi américaine mer. Les commissaires américains et canadiens, auxquels ce cas coûtre la contrebande ("). fut soumis pour arbitrage, estimèrent que la destruction voulue D Une autre disposition de la loi mérite un commentaire spé- et avouée du navire canadien n'était pas justifiée dans les cir- dal. La section (b) 11 stipule, notamment, que e dans le sens constances de la cause, et ils accordèrent 25.000 dollars pour cette destruction. Mais, en ce qui concerne le dédommagement pour - do CO (IN der siolation des lois des Etats-C'nis relatives ans la perte du navire et de la cargaison, les commissaires adoptèrent do donows. di intervition des Etats-Unis, toute personne y la thèse américaine, selon laquelle, bien que le navire fut d'en- toute will constitution not qui contrôle ou participe ellectivement us de name ou indirectement, soit sins forme de pru- registrement canadien et appartint à une société canadienne dont priver, de parts with de more aufre manière, el permet l'emploi de tous les actionnaires étaient des sujets britanniques d'origine cana- da name des funs vi tente personne trouvée à bord (IU dont la unizione est à bord du dit navire employe a un rel dienne, de facto la propriété et le contrôle bénéficiaire du navire participant ou untim à la réalisation de ce hur. pelf êre appartenait effectivement à un groupe de citoyens américains. prendamine A por qui IMP peur dépasser 5,000 dollars GH à un empñ- Aucune indemnité ne fut donc accordée pour la perte du navire (pli IM ente à deux ans, ou a toures les deus peilo et de la cargaison. singhamment. XII In that in considerà comme infortion aus dispositions de cette section, le Le but de la section 3 (b) de la loi de 1935 sur la contrebande lat de have en de Inter INI numbre, si le poilleur ou l'affréteur a parait être d'autoriser les tribunaux des Etats-Unis à considérer (el --- name of loss all directé dans des circonstances qui donent raisum- nublement dinner fieu de a tuire que le premise nu la personne le l'enregistrement d'un navire saisi pour contrebande uniquement mine no propose d'employer m nacine por un des usages prévus ci-desis comme preuve prima facie de la nationalité, Les avantages d'une sali In di - Or unde N, ell réalité, pendant la durée de ce buil (MI de telle disposition, limitée a aux buts de cette section B n'apparaissent of employer 0 image, Vo (din home, p. 120. Bien que cela ne paraisse pas avoir été roulu pas clairement, car la section 3 (a) de la loi sournet à la confisca- par La celle section 3 a) rend possible la sina- tion aussi bien les navires étrangers que ceux des Etats-Unis. Ce to where m est opique en Belgique pour frauder les lois dounniéns de Number la Xondo A how législation purissant ses nationanx en L35 de view bise des bis domamites des Elats-Cnis: <i se navire helge est, dans l'avenir, (") Clr. Robert RENOW, E The Test of the Nationality of a Merchant Vessel trans/ an il parmit être, somble-t-il, saisi et confisqué ans Esan- (Columbia University Press, 1937). pour une défense bien documentée de l'enre- I'm el NA preud à la letter to à gistrement comme critère de la nationalité d'un navire. 15 M. Good it. Hadworth, conseiller juridique au Départenent d'Etat (¹) U.S. Department of State Arbitration Series, n° 2 (1-7), 1931-1935. Pour à Faster, la dase du Brium 1938 Au sujet de votre enquète rela- la critique do rapport des commissaires dans le cas du I'm Alone, G. G. Firz- Inc à la reciparations is vous prie de noter que, pour notant MAFRICE The case of the I'm Alone N, 17 British Yearbook of International fair P má interni, Illie otion + caractère réciproque n'a pas été intentée Law (1936), M2-111. por de mangos l'adoption de celle législation L our le ou ib) Mas hant, p. 220. Regraded Unclassified 118 HEADERT W. BRIGGS 00 9 LES ÉTATS-UNIS ET LA L01 DE 1933 SUR LA CONTREBANDE 925 21 est certain. c'est que cette stipulation (la section 3 (b) de la des traités avec seize Etats () pour prévenir la contrebande de que nationale ne peut avoir, sur le plan international, l'effet de boissons fortes. Ces seize Etats avaient convenu, par ces traités, priver loi un Erat étranger de tout droit légitime sur un navire jouant qu'ils ne feraient aucune objection à l'abordage de leurs navires de enregistrement. privés dans l'espace comprenant la distance d'une heure de navi- Voyons sun à présent la plus grande innovation de la loi sur la gation de la côte des Etats-Unis, pour s'assurer si les navires et contrebande le customs-enforcement area (la superficie les personnes à leur bord ne cherchaient pas à importer des bois- soumise all contrôle des donanes). sons alcooliques aux Etats-Unis, en violation de la loi en vigueur dans cet Etat, et, si de justes motifs devaient exister, à la perqui- II sition, à la saisie et à la mise en jugement de ces navires. Les tribunaux américains ont cependant jugé (") que, comme Depuis 1790, les Etats-Unis ont alfirmé, par une législation natio- matière de droit constitutionnel, ces traités ne conféraient abcune nale généralement conone sous le nom de hovering laws le autorité aux fonctionnaires américains pour saisir des navires droit d'exercer h juridiction sur les navires étrangers en destina- étrangers en dehors des 12 milles de la côte des Etats-Unis, Un tion des Etats-Cois, dans l'espace des douze milles marins de la des buts de la loi de 1935 contre la contrebande était de combler côte, en vue de faire exécuter les règlements douaniers. Dans la la lucune existant dans la juridiction entre la limite des 12 milles lin tarifaire de 1922, le Congrès des Etats-Unis stipulait que tout et la limite d'une heure de navigation et d'autoriser les fonction- navire, qu'il soit destiné ou non pour les Etats-Unis, pouvait être maires américains saisir des navires dits e treaty vessels N ("), abovedé dans l'espace de 4 lieues (12 milles marins) de la côte, et conformément aux traités, en dehors des 12 milles. Cela deve- que les fonctionnaires des Etats-Unis pouvaient a faire usage de nait entièrement matière de droit interne, à laquelle aucun Etat toute la force nécessaire pour contraindre le navire à la soumis- ayant signé un tel traité ne pourrait se soustraire. sion, et s'il devenait apparent qu'une infraction ou une violation Toutefois, le but le plus important de la loi était d'en finir avec des lois des Etats-Unis avait été commise, pour laquelle on en la contrebande organisée, faite par des navires étrangers, connus consissance de laquelle ce navire... ou les marchandises... à bord... (*) Grande-Bretagne, Norvège, Danemark. Allemagne, Suide, Italie, Panama, pouvait être exposé à la confiscation, ces fonctionnaires avaient Pass-Bas, Cuba, Espagne, France, Belgique, Grice, Japon, Pologne et Chili. le devoir de saisir ce navire et de l'arrêter, OIL, en cas de luite Pour le teste de l'article Il du traité avec la Belgique, qui est le modèle de Fartiele II de tons les autres traités, cfr. plus loin, p. 229, ou de tentative de fuite. de poursuivre et d'arrêter toute personne (2) Voir, d'ime manière générale, Edwin D. Dicussos Are the Liquor coupable d'une pareille infraction ou violation (1). Treaties Self-Executing -, 20 American Journal of International Law (1926), 414-432 Déposant devant le Comité de la Clumbre des Représentants, le Dr. Hes- Bien que l'on n'ait aucun souvenir d'une protestation formulée sel Yntema déclarait à propos des traités de liqueurs Le traité no confère par un gouvernement étranger contre les anciens a hovering aucon pouvoir à personne. If se borne à dire que le Governmement britannique acts (") des Etats-Unis, la saisie de navires de contrebande bri- n'entend laire aucune objection, si certaines cluses arrivent à des navires hri- tanniques à une certaine distance ", cfr. Hearings, 1.3. camiques - delà de la límite des 3 milles pour violation de la loi De même, C. M. Hester déclarait que les traités ne sunt pas de nature à de probibition, provoquait, en 1922 et en 1923, des protestations s'esécuter d'ens-mêmes.... Ainsi nos fonctionnaires des douanes ne penvent pas imposer le respect de nos lois en dehurs de la limite des 12 milles Aussi un des diplomatiques de la part de l'Angleterre ("). En conséquence, les buts de ce projet de loi est-il de combler cette lacume. Si be distance J'une heure Ents-Pnis négociaient. entre le 22 mai 1924 et le 25 novembre 1930, de navigation est calculée à la rapidité du navire, et si le navire file, par exemple, a 25 milles par heure, il reste nne bréche de 13 milles, et IIII des buts de ce projet vit de lermer cette brèche. Id., p. 36. (*) Sec. 381, Sept. 21. PIZZ: 42 Stal 979 (²) Sous le terme treaty vessels " no doit comprendre les navires apparte- 5. Foreign Relations 1575, Pr. p. 60% idem, 1912, p. 1287. name aux Etats avec lesquels les Etats-Unis ont conchi des traités pour la pré- O- protestations suicume conclusion. venthm de In controliande des brissims lunes Regraded Unclassified 119 HEIGHT W. BBIGGS 10 11 LES ÉTATS-UNIS ET LA LOI DE 1935 SUB LA CONTREBANDE 297 4: codent an dela des emax douanières américaines. Cust the vessel and any merchandise or person on board, and bring cought que la foi MV la controlende votée en 1935 présente un aspect the same into port, and, subject to regulations of the Secretary of the Treasury, it shall be their duty to pursue and seize or arrest and otherwise enforce upon such vessel, merchandise, or person, Your reste du titro 1. section I de la loi: the provisions of law which are made effective thereto in pur- 1. (0) Whenever the President finds and declares suance of subsection (a) in the same manner as such officers are Usar al aus place or within any area on the high seas adjacent or may be authorized or required to do in like case at any place to fait nuside customs waters any vessel or vessels hover OF are in the United Stuates by virtue of any law respecting the revenue Insure kent off the coust of the United States and that, by virtue Provided, That nothing contained in this section or in any other of der presence of (11) such vessel or vessels at such place or provision of law respecting the revenue shall be construed to within -wh grea. the notaviul introduction or removal into or authorize or to require any officer of the United States to enforce (your the Enited States of any merchandise or person is heing any law thereof upon the high seas upon a foreign vessel in con- 11F may be occasioned. promoted. or threatened, the place or travention of any treaty with a foreign government enabling or presi so (sand and declared shall constitute a customs-enforcement permitting the authorities of the United States to board, examine, JPCR for the purposes. of this Act. Only such waters on the high search, seize, or otherwise to enforce upon such vessel upon the seas shall Ise within a area as the President high seas the laws of the United States except as such authorities finds and declares are in such proximity to such vessel or vessels are or may otherwise be enabled or permitted under special arran- den suh unknowl introduction of renuval of merchandise OF gement with such foreign government Provided further. That persons may he carried 1111 by (IF to or from such vessel or vessels. none of the provisions of this Act shall be construed to relieve No endoms-enforcement area shall include any waters more than the Secretary of Commerce of any authority. responsibility, or one hundred national miles from the place or immediate area jurisdiction now vested in or imposed on that officer » ("). where the President declares such vessel or vessels are hovering (if are being kept and notwithstanding the foregoing provision. Le Titre IV, Sect. 401 de l'Acte stipule, notanment, ce qui suit shall not include any waters more than fifty nautical miles out- wards trom the our finit of customs waters. Whenever the Pre- SECTION 401. - When used in this Act calem finds that. within any customs-enforcement area, the cir- (c) The term a customs waters . means, in the case of a foreign constances (b) have exist which gave rise to the declaration of vessel subject to a treaty or other arrangement between a foreign such und d5 a area, he shall so declare, government and the United States enabling or permitting the and thereatter. and sotil a further finding and declaration is made authorities of the United States to hoard. examine, search, seize, under this subsection with respect to waters within such area, OF otherwise to enforce upon such vessel upon the high seas the no waters within soch ana shall constitute a part of such customs- laws of the United States, the waters within such distance of the enforcement The provisions of law applying to the high coast of the United States as the said authorities are or may be N/AS adjacem to customs waters of the United States shall he so enabled or permitted by such treaty or arrangement and, in uninted in il enforcement ares upon any vessel. merchan- the case of every other vessel, the waters within four leagues of dise. ur person frund therein. the coast of the United States. 161 11 any place within customs-enforcement area the several of the may VO on board of any vessel and examine 49 State, 317: 19 U.S.C. A., sec, 1701. 120 W, IS 1,1,5 ÉTATE-UNIS ET LA LOI DE 1933 SUR LA CONTREBANDE 229 13 De Increduge vissil means any vessel which is Ko* all the of the United States within or without La suisie de navires appartenant a des Etats qui ont conclu des formica dell' from the history, conduct, character, or traités avec les Etats-Unis au sujet de la contrebande de boissons of de speed reasonable to believe that such vessel fortes est limitée à une distance d'une heure de navigation de la quil 1000 In word 10 introduce or promote or facilitate côte, pour la mise à exécution des lois des Etats-Unis contre l'int- low instructions (/) attempted introduction of merchandise into portation de boissons alcooliques, en raison de la clause inscrite the the Crited column of the laws respecting the revenue, la section 1 (b) de la loi contre la contrebande " que rien de employees par la section 1. il est prévu que si ce qui est prévu à cette section ou dans une autre disposition de la loi fiscale ne doit être interprété dans le sens de permettre le Procedent designe curtoms parties de la haute mer comme name (superficie somnise au contrôle des ou d'enjoindre à un fonctionnaire des Etats-Unis d'imposer le donamed In FLOS affirment leur droit de saisir tout navire respect d'une de ces lois en haute mer à un navire étranger con- date 11 d'insposer les lois fiscales des Etats- trevenant à mi traité conclu avec un gouvernement étranger, traité autorisant ou perméttant aux autorités des Etats-Unis d'ahorder, Hail navire. hode marchandise ou à toute personne d'examiner, de fouiller, de saisir, ou, de toute autre manière, d'im- dain 111 de la même manière que ces lois sont date partils. tout autre endroit aux Etats-Unis. poser à ce navire en haute mer les lois des Etats-Unis, sauf si ces autorités étaient ou pourraient être habilitées à le faire en Exployer 100 covendication de la juridiction sur des navires vertu d'arrangements spéciaux conclus avec ce gouvernement Fextension territoriale des customs- L, disposition de la section (a).selon laquelle étranger... area ne doit comprendré plus de Cependant. sauf en ce qui concerne l'exécution des lois des PART núlles marins à partir de l'endroit Etats-Unis contre l'importation de boissons fortes, des navires des immediate que désigne le Président et où un Etats qui ont un traité peuvent être, éventuellement, saisis en verta de la loi même 80 ou 90 milles au delà de la côte des Etats- me realemt et soil présents... autorise à Unis, puisque les eaux douanières pour les Etats ayant un truité to down dans tin espace de 200 milles soit. selon la définition (*). les eaux dans une distance d'une heure 100 milles dans toutes les directions suf de navigation à partir de la côte, et la loi admet qu'une (X) custoins- mais, continue la phrase. enforcement area puisse s'étendre à une distance maritime de to disposition aucune superficie soumise 30 milles au delà de la limite extérieure des eaux douanières. ce - she doiumes lie doit rentermer plus de surface mari- qui peat faire 30 ou 40 milles dans le cas d'un navire rapide appar- (W) que " notin- vi) deliors de la limite extérieure des tenant à un Etat ayant signé un traité. dominières sont définies par la En examinant le texte de l'article Il des différents traités pour Espace de 4 lienes (12 milles la prévention de la contrebande de boissons alcouliques (*), on name di In one dos Etats-Unis " pour les Etats sans à des Etats qui n'ont pas de (") Sec. 401 (c), ci-dessus. be- qui concerne la contrebande des (1) Carticle II de la Convention de 9 décembre 1925 entre les Entsil H la Belgique pour la prévention de la contrebunde de boissons aleoulisées tuni perit suists. selon les termes de la loi contre être considéré comme typique à cel éyand) est rédigé comme with (4) Star. 24321 de h2 milles ell dehors de la côte Art. 11. (1) Sa Majesté le Roi des Belges accepte que la Behique n'élise auryme objection à CE que les navires privés, sums pavillon belge. sivoi abordés, en dehors des limites des caus territuriales, par les autorités des tertitoires our possessions. afin due des questions puissent être proves un 771 personnes NE a bont di qu'un examen soit hit des papiers de had, en Regraded Unclassified go HERBERT W. BRIGGS 11 pesit penset que, tout en consentant à ne pas faire d'objection A l'abordage. a la visite et à la saisie de ses navires dans l'espace d'une heure de navigation de la côte des Etats-Unis pour l'exé- cution des lois des Etats-Unis contre l'importation de boissons alcouliques. un gouvernement ayant un traité ne consent pas à la sisit en dehors de la limite des 3 milles pour intraction à d'autres lois des Erats-Unis, Mais on peut également estimer que, puispic les traités ne concernent que l'exécution des lois sur l'al- cool. il n'y aurait aucune violation d'un traité si les Etats-Unis susissient des navires étrangers appartenant à un Etat ayant un Iraité, en dehors de la distance d'une heure de navigation de la côte, en raison d'une violation d'autres lois-sur la contrebande. Le traité n'étam pas violé, la validité internationale d'une telle suisio dépendrait du droit international coutumier. Or, la clause de la section (b) de la loi contre la contrebande n'exclut pas la possibilité de la saisie de navires appartenant à des Etats ayant un traité, dans l'espace de 50 milles au delà de la distance d'une henre de navigation is partir de la côte pour l'exécution des lois sin la contrebande excepté celle contre l'importation de hoissons alcoudiques (*) que de 41 le les personnes à hord, s'ellorcent d'importer ou ont importe des brown alcouliques nas Elats-Unis, leurs territoires ou pussessions JUN luis quils wint en vieueur. Lorsque de telles questions et era- dennecunt des misimuables de suspicion, une visite du navire vine effecture (2) Sil existe THE Cuise raisonmable de croire que le navire a commis - est (P) trums du HIF dissaser de commettre une infraction aus luis des lease - our possessions prohibane l'impurtation des boissons abondiques, la puurra être stisi et conduit dans un port des less withing full processions, pour qu'il en soit décidé conformément ans with his. TAX to desires COUNTER par est article lib seroni pas exercés à une discome ik la har des Navi ma, hins ontiniires on possessions, supérieure à celle qui person the par le navire suspecté de tächer de commettre allo infortion Date a contribuis, on l'intention serait que le liquide im Comparté an hors writuires ou possessions par un navire autre fille culvi out assum VII about our visité, ce serait la vitesse de cet anire navire vi INTER celle das aloudé qui servirait à déterminer la distance à partir de li-cone la don't de cet article pourrait être exercé. Il famt, reportain, notes que le That particulier de la loi sur la contrebande M.C. uma Corrét de la d'afored anx Etats-Unis . (Hearings, p. III): et durant M. Heave, du Department de la Trésurerie, a affirmé, à plusieurs reprises, Conto de la Chamise des Représentants que la législation proposée Regraded Unclassified 121 15 LES ÉTATS-UNIS ET LA 1.01 DE 1933 SUA LA CONTREBANDE 231 Manifestement, ces dispositions de la loi contre la contrebande, de 1935, rendent possible la prétention la plus large de juridiction sur des navires étrangers en haute mer, à l'époque actuelle. Le Congrès américain n'était pas indifférent aux dispositions du droit des gens dans ces matières, mais il avait été convaineu par le Département de la Trésorerie de ce que l'exécution de la loi ne serait pas en contradiction avec le droit des gens ("), La validité de la méthode envisagée par la loi sur la contrebande, au regard du droit international, doit être, à présent, examinée à la lumière des arguments formulés par le Département de la Trésorerie, et en relation avec la pratique internationale. La justification de la loi, donnée par le Département de la Tré- sorerie, avait été basée, en résumé, sur la validité, en droit inter- national, de la « hovering legislation ", à condition qu'il y ait nécessité réelle et qu'une telle législation soit raisonnablement appliquée. La validité de la zone contiguë, La distinction entre une zone des eaux territoriales, dans laquelle tontes les lois de l'Etat de la côte peuvent être rendues appli- cables, et one zone contigué au delà, dans laquelle un Etat peut exereer un droit de juridiction spéciale sur des navires privés étrangers, a été appliquée depuís longtemps au cours de l'histoire et est, à présent, trop bien établie pour nécessiter un long exposé, Il suffira de donner ici un résumé de la théorie et de la pratique contemporaines. 1. F. Oppenheim écrit à ce propos de la et hovering » législation Puisque le droit interne, de l'espèce indiquée précédemment, existe depuis plus de cent ans et n'a pas soulevé d'opposition de la n'allait pas au delà de la limite d'une heure de navigation à l'égard des pays avec lesquels nous avons ces traités. (lbid., p. 18.) L'attitude prise par M. Hester jent êrre interprétée comme indiquant que le Département de la Trésorerie n'a point l'intention d'imposer la loi anx . treaty vessels e au delà de la limite des traités, mais n'exclut nullement l'interprétation que j'ai donnée plus haut. (21) Le projet de loi a été élaboré et amplement rédigé par le Département de la Trésurerie Le Département d'Etat, tout en n'étant pas disposé à s'opposer sérieusement à ce projet, ne fut visiblement pas très enthousiaste des termes de la loi. Clr. Hearings, pp. 10, 125, 128 il., 156 II., 165. 122 HEDUERT W, 16 17 LES ÉTATS-UNIS ET LA 1.01 DE 1933 sun LA CONTREBANDE 233 sé mins Elaba on perit dire qu'il y a une règle coutumière du être considérés comme légaux s'ils sont établis être raisonna- paint de grins qui perfect aus Etats côtiers, dans l'intérêt de leur bles ( ). L'opinion, très sérieusement documentée, de Gilbert dron fiscale et d'imposer certaines obligations aux Gidel dans son traité monumental . Le Droit international public mavius Grangers, en destination de leurs ports, et qui s'approchent, de la mer 114 est que " si quelques Etats très rares refusent de être déin. de leur bande territoriale maritime ("). Ce point reconnaitre une zone contiguê douanière, l'attitude observée par de y est partage. après not examen très attentif de la législation la presque unanimité des Etats permet de considérer la zone con- donanière. DUE W. E. Masterson ("), qui arrive à cette conclusion tiguë en matière douanière et fiscale comme une institution du que la distinction entre In juridiction générale d'un Etat sur une droit commun international ». Il ajoute Il Il convient de remar- hande étroite d'eau le hose de sa côte et une juridiction spéciale quer en effet que les e hovering laws # ont fait três rarement l'ob- plus large destinée à protéger ses intérêts fiscaux, a été soutenue jet de discussion par les voies diplomatiques. La validité des depuis tant d'aimées par la plugart des Etats maritimes qu'elle hovering laws n'a été mise en question que vers le milieu finit par devenir une régle contunière du droit des gens, per- du XIX siècle par la Grande-Bretagne. On De relève que peu mettant à 101 Etat cotier d'exercer la juridiction sur des navires d'exemples de protestations même à partir de ce moment ("). etrangers au delà de nes eaos rerritoriales. De même Philippe Il faut noter que plusieurs projets de conventions, qui sont le C, Jesson, après assit cité l'essai de justification du Chief Justice résultat de recherches entreprises en commun par des groupes Juhn Marsholl dans le cas de Church V. Hubbart selon lequel si de distingués légistes internationaux, recommandent de distinguer de semblables prétentions à la juridiction " sont de nature à vexer entre tine juridiction générale sur les eaux territoriales et des juri- et a troubler instilement le commerce légal de l'étranger, les Etats dictions spéciales sur une zone contigué. L'article 20 du projet de émingers résisteront in son exécution. Si elles sont raisonnables la Harvard Research » sur le droit des eaux territoriales (1929) e/3 nécessaires your la protection des lois contre toute violation, prévoit (*): La navigation en haute mer est libre pour tous les its 38 sounieitront CX conclut Il parait cependant y avoir Etats. Toutefois, sur la haute mer proche de la mer il marginale », des preuves sultisantes d'arquiescement aux prétentions raison- un Etat peut prendre telles mesures qui lui paraitraient nécessaires núbles pour institier Expirion selon laquelle une règle coutumière pour l'exécution dans son territoire ou dans ses eaux territoriales, du almit des gens est née (1) vertu de laquelle ces actes peuvent de ses lois ou règlements en matière de douane, de navigation. d'hygiène on de police, ou pour sa protection immédiate. » La UNIVERSITY International Lines y d. (LACTERPACHT), vol. (195), Harvard Research A ajoute ce commentaire ("). I'n examen de - la pratique des Etats révèle des exemples fréquents d'actes d'au- P. Should MA Marginal Seus special reference torité, accomplis par l'Etat limitrophe en debors de la limite des M - Charge Coart (1804), 2 Cranch 187. Marshall 3 milles, Il pourrait paraitre impossible d'adopter la limite des - Derma mes 4'll sur diverses einer, - tendi in admestre un 1 milles pour l'étendue de la mer " marginale et de rejeter la plus Exit - broke leguel service la surveillance da gouverne possibilité d'exercer quelque autorité sur la haute mer adjacente. - Asimal la of one nis grande partie du trafic destiné à nu Vercial de & jasse a navers une mes très étroite, la sisit Pareille idée ne concorderait pas avec la coutume internationale - sure sentative de trafic illicite, doit nécessités actuelle et elle ne constituerait pas une modification désirable du (to - = invice nês étroites: mais, au contraire, le hong de la - de do survivem Iréquentée par des uavines, saul pour le (*) P. C. Jissip, The Law of Territorial Waters and Maritime Jurisdiction ------------------------- Minimo la do evitvernement pourrait être un peu plas (1927), pp. 92, %; clr. également, ch, 11. the Ins nations -unumation à de pareils réglements pint astam (*) Vol. & pp. -39, 46. mide - di nécessaires pour protéger le numopate (°) 333, der - colonial <]MO réclaments toutes les nations ayant des possessions (°) ld., p. 231, 2% MIN application serait comester. Regraded Unclassified 123 234 HERBERT W. BRIGGS 18 19 LES ÉTATE-UNIS ET LA LOI DE 1935 SUR I.A CONTREBANDE 235 droit avout Il parait, toutefois. possible d'adopter un des points de vue suivants : d) la mer e marginale doit être définie de telle penvent étendre leur juridiction att delà de la mer territoriale, parallèlement à cette mer, sur une distance supplémentaire de... fuçon qu'elle convre cette superficie maximum dans laquelle un milles marins, pour des raisons de sécurité et dans le but d'assurer Elat côtier pesit exercer l'antorité de n'importe quelle façon, et Fobservation des réglements sanitaires et donaniers M ("). cette définition peut être jointe au refus de toute espèce de pou- Enfin. la Base de discussion TM n° 5, présentée par le Comité sein: en deliors de la limite de la mer territoriale: ou b) la mer préparatoire à la Conférence pour la codification du Droit inter- territoriale doit être définie comme étant une bande sur laquelle national tenue a La Haye en 1930 s'exprime en ces termes or Sur l'Etat côtier exerce la pleine autorité, mais il peut être admis la haute mer contiguê aux eaux territoriales, l'Etat riverain peut que l'Etat côtier puisse accomplir certains actes d'autorité sur la prendre les mesures de contrôle nécessaires en vue d'éviter sur haute mer adjacente. no deliors de cette limite... Pour les raisons son territoire ou dans ses eaux territoriales soit les contraventions qui ont êté indiquées antérieurement, c'est ce dernier point de à ses lois de police douanière ou sanitaire, soit les atteintes à sa von- qu'adopte la Harvard Research sûreté de la part de navires étrangers, Ces mesures de contrôle De même. l'Institut de Droit international dans sa session de 1928 ne puttront être prises au delà de 12 milles marins à compter Stockfiolm, rejeta, par 34 voix contre 8, un amendement aux de la côte ("), terms duquel la juridiction spéciale sur une zone contiguê devait A la Conférence de La Haye de 1930, les Etats ne parvinrent être basée sur des conventions particulières. et adopta, par 32 vaix pas à s'entendre sur l'étendue de la mer territoriale ou sur la contre 8, be disposition suivante : Art. 12. Dans une zone sup- question de la zone contiguê. Cependant, le Prot. Jesse S. Reeves, plémentaire contigué à be mer territoriale, l'Etat côtier peut prendre conseiller technique de la délégation américaine à La Haye, fait less mesures nécessaires à sa sécurité, au respect de sa neutralité, à ce propos les commentaires suivants : 0 Les Etats qui n'expri- a la police smitaire, docanière, et de la pêche. Il est compétent maient pas le désir d'une zone contigué pour l'un ou l'autre motif pour commaitre, dans cette zone supplémentaire, des infractions aux ne formaient qu'une petite minorité. Les raisons pour lesquelles Tois et réglements concernant ces matiéres. L'étendue de la zone il fallait reconnaitre semblable zone, et la mesure de la juridic- supplémentaire no peut dépasser 9 milles marins. ("). De la même tion à exercer par l'Etat riverain dans cette zone, soulevaient manière, le projet de convention amendé par Schücking. de beaucoup de divergences. Exécution de la législation doumière, Magathaws el Wickersham pour le Comité des experts pour la surveillance et même contrôle des pêcheries, el sécurité de l'Etat codification progressive do droit international distinguait entre riverain. ce furent la les motifs principaux invoquês en faveur de libe: limite de souveraineté de 3 milles et une zone contigué, en la théorie de la zone contiguê: on insistait sur l'un ou l'autre de décidant dans son article 2: « Au delà de la zone de souveraineté, ces oiotifs d'après la politique ou le point de vue adopté par un les Etats peuvent exercer leurs attributions administratives (on- Etat particulier ("). dées sur des raisons doumières ou de nécessité vitale. Y sont One étude des réponses adressées par les gouvernements au inclus les druits de juridiction nécessaires à leur protection ("), Cronité préparatoire (") et des procès-verbaux de la Confé- Que Fon consolve également l'article 12 du projet 12 de l'Institut americaio de doit international : Les républiques américaines (+) Supplém. spécial au American Journal of International Law, 1926, vol. 28, P. 324 Insure di Hostand du Duat International, 1928, PP- 667, 66% 75% La (*) Soc. des Not C. 74, M. 39, 1929, V, 2, e 34. comp de willing ha contro à la limite des 3 milles, faisant ainsi, asi (*) Ruvis, The codification of the Law of Territorial Waters », 24 American milling lournal of International Law (1930), 486, 194. des No C. 1% M. " 1127, V. 1, PP 29-75, p. 72. Rémprimé en (º) Société des Nations. Conférence pour la conditication du drait international. n 141. Plases de discussion, 1. 11, Eaux territoriales, C. 74, M. 39, 1929, V.2 pr. 104-195. Regraded Unclassified 124 MEMBERT W. BRIGGS 90 et LES ÉTATS-UNIS ET LA 1,01 DE 1935 SUB LA CONTREBANDE 237 936 I'll révèle que les Etats soivants étaient disposés, soit avant la honne volonté de discuter la question d'une zone contigué rente pendain la Conférence, soit avec des réserves soit sans réser- soit accepter en principe, ou n'étaient pas opposés en principe pour a des pouvoirs douaniers et sanitaires, pour autant qu'ils soient reconnus par les usages existants (*). ver. une zone contigué pour diverses raisons : Allemagne, in admettre d'Amérique, Belgique, Chili, Cuba, Danemark, Exypte, En conclusion, on peut citer Gidel « Des indications fournies Estomic. Finkande. France, Grèce, Irlande, Italie, Japon, plus haut (livre premier, chapitre deuxième, II, 4) sur les dispo- Espagne, Letronie, Pays-Bas. Norvige. Perse. Pologne, Portugal, Roumanie, sitions législatives ou réglementaires des différents Etats, con- cernant l'étendue des espaces maritimes adjacents soumis à leur Turgoie, l'ruguas. U.R.S.S. Yougoslavie. compétence, il résulte que seuls la Grande-Bretagne et l'Empire Il faut noter que les points de vue exprimés par les gouverne- britannique, le Japon, les Pays-Bas, le Portugal, la Yougoslavie ments à cette Conférence en ce qui concerne la validité, la nature et la Colombie n'ont pas institué de zones spéciales douanêres, l'extension d'une zone contigué, ne correspondaient pas tou- les trois dernières de ces Puissances semblant d'ailleurs De pas jours et avec l'opinion qu'ils avaient exprimée avant la Conférence, avoir procédé à cette institution pour des raisons de fait, sans ni avec leur pratique antérieure ("). Par exemple, la Grande-Bre- être hostiles en principe à la reconnaissance de telles zones » ("). tigue qui avait êté longtemps un champion de la hovering legis- lation x, dans sa réponse au Comité préparatoire et à la Confé- La théorie de la « Tolérance o. relice s'opposait à la zone contiguê, mais réitérait sa bonne volonté de négocier des conventions spéciales sur l'extension de la limite Si l'on peut considérer que l'existence dans la pratique et, par des 3 milles ("), L'Union Sud-Africaine était d'accord avec la conséquent, la validité comme coutume légale de la zone con- Grande-Bretagne, à part qu'elle déclarait, dans sa réponse au tigué sont, en droit international, bien établies, on est moins d'ac- Comité préparatoire, que les Etats peuvent exercer, en dehors de cord en ce qui concerne l'étendue territoriale et la nature juridique la limite des 3 milles, les droits spéciaux qui peuvent être con- exacte de cette zone. Considérons tout d'abord ce dernier point venus ou qui ont toujenirs été recomms ("). L'Irlande reconnais- Les publicistes qui ont défendu l'exercice de la juridiction dans sait que dans certains pays et pour certains buts existent les une zone contiguë peuvent être classés comme suit : 1) ceux nécessités du genre de celles exposées dans les Bases de discus- qui soutiennent que cet exercice de la juridiction est un droit sion 11" 5 ("). La Rountanie, l'Uruguay et la Yougoslavie réser- selon le droit international, et 2) cenx qui le défendent en se vient leur attitude dans la question de la zone contiguê, ce fondant sur la théorie de la tolérance ». En ce qui concerne qui indique. peur-être, qu'ils n'étaient pas opposés en principe la défense de la compétence dans la zone contiguë comme droit à pareille zone. Le Japon. tont en étant. en principe, nettement basé sur le droit international coutumier, que l'on consulte les opposé is l'idée d'une zone contigué, manifestait à la Conférence opinions, citées précédemment (") de Oppenheim, Masterson, 1°) lat. Minises of the Security Committee (Territorial Waters). C. 351 (b). Jessup, Gidel, the e Harvard Research 9, l'Institut de Droit'inter- M. 115 (h), 1930, V, 16, purticulièrement pp. 123-125. mational, The American Institute of International Law 0, et le (") En LE qui concerne la surveillance de la pratique des Etats, avec référence à la prétention à la juridiction dans une zúne contiguê, voir GIDEL ciga. cita Comité préparatoire de la Première Conférence de codification vil & livre I, clapitre II. spécialement pp. 93-124: Jesser, up. cit., chap It: MAS- de La Haye, dans les et Bases a n° 5. of, AL La théorie de a tolérance a, défendue par Sir Travers Twiss, N. it. M. 39, 1929, V. 2. p. 162. S. d. N., C. 331 (b), M. 15(b), 1930. V. Mr. P 12f. Cir. également note (), plus has, (*) Id., p. 126. (*) S. di N., C. 71. M. 29, 1929 V.2. p. 106, Les italiques BE figurent pas dams (**) GIBEL op. cit., vol. 3, P. 442. Foriginal (**) V. ci-dessus, pp. 232 et suiv. (*) S.d. (A). M. in (h), 1930 V p. 124. Regraded Unclassified 125 HERGERT W. BRICGS LES ÉTATS-UNIS ET LA LOI DE 1933 SUR LA CONTREBANDE 239 Lord Phillimore, W.F. Hall et Sir Charles Russell, entre autres ("), nue et qu'il e permet très volontiers qu'un Etat étranger prenne est définie par Twiss de la manière que voici des mesures raisonnables de prévention, dans une distance limitée Cest uniquement sous le convert du Comité des Nations en en dehors des eaux territoriales... », le professeur Hyde écrit e Il matière commerciale et sanitaire qu'un Etat peut se permettre (Sir Charles) nie, cependant, que de tels actes rencontrent, tou- de renforcer un point de sa loi civile concernant les navires étran- jours. dans tous les cas, l'assentiment général, notamment si on yers, qui n'ont [xis encore atteint les limites de sa compétence a tenté de faire exécuter des lois à une distance considérable de maritime. Un Etat exerce en matière commerciale pour la pro- la terre ferme: il nie que dans un tel cas on puisse les défendre (ection de ses ressources maritimes, et en matière sanitaire pour comme exercice d'un droit à l'encontre d'un Etat qui élèverait des la protection de la vie de sa population une compétence tolérée, objections. En admettant l'acquiescement des Etats à l'exercice dont l'extension ne parait pas être bornée par une limite bien d'une telle juridiction, même d'un champ très limité, l'éminent avo- marquée. De plus, elle ne peut être exercée dans les eaux juri- cat pose le fondement le meilleur pour l'existence de ce droit dans dictionnelles de quelque autre Etat, mais uniquement sur ses le droit international ("). Dans le même sens, le professeur Hes- propres navires et sur ces navires étrangers seuls qui ont un sel E. Yntema. qui prépare pour le Département de la Trésorerie chargement pour un de ses ports. Si, donc, les lois fiscales ou les des Etats-Unis, une # Opinion on the Validity of Hovering Legisla- réglements de quarantaine d'un Etat sont de nature à être vexa- rion in International Law a ("), écrit que la théorie de la a tolé- toires on à troubler inutilement le commerce étranger, les nations rance reste le droit toléré ou permis par l'acquiescement étrangéres s'opposeront à leur application. Mais si, par contre, ils général qui, ainsi que le juge pertinemment Hyde, constitue la sont raisonnables et répondent à une nécessité réelle, ils seront meilleure base pour l'existence du droit. a Il ajoute : " L'exercice admis ob reciprocain utilitatem. Dans les cus ordinaires, lorsqu'un du droit est conditionné par le caractère raisonnable attribué aux navire marchand a été saisi en pleine mer par un croiseur d'une mesures employées, et à l'étendue soumise à la surveillance: une puissance étrangère, alors que ce navire approchait de la côte fatite honnête dans l'exécution n'est excuse: si, dans un cas de celte puissance avec l'intention de faire un commerce illicite, particulier. la saisie est estimée injustifiée, elle peut donner lieu à la nation dont le pavillon commercial a été violé, offensé par la une protestation de la part du gouvernement étranger: si cette pro- susie. remince, en pratique, à exercer ses droits à des réparations, testation s'avère fondée, elle doit donner lieu à réparation. Il est sun mavire étam considéré comme ayant agi avec mala jides et, difficile de résumer toutes ces observations en un simple mot. just conséquent, emone ayant forfait, et perdant tout droit à la La théorie de n. tolérance », en décrivant cet ensemble didées protection de SI nation ("). comme un droit toléré, si elle souligne bien ses caractéristiques Cette théorie de tolérance " est critiquée par Oppenheim ("), qualifiées, est, cependant, défectueuse en ce qu'elle suggère que Piggon (*) et C.C. Hyde. En se référant à l'argumentation déve- l'existence du droit dépend de l'absence de protestation. Si l'assen- loppée par Sir Clarles Russel dans le of Behring Fur Seal Arbi- tinient est la preuve irréfutable du droit, cela ne veut pas dire que tration selon laquelle il est entendu que les lois it. hovering le droit puisse disparaitre devant une protestation non fondée A admettent qu'en principe aucun Etat civilisé n'encouragera les quoi on peut ajouter les mots de Gidel, qui, après avoir cité Marshall infractions aux lois d'nn autre Etat, lois dont la justice est recon- dans Church V. Hubbart ("), écrit " Cette manière de voir qui 1% Ck Eigsion du De, Your dans Hearings, PP. 111 et main. (*) C. C. Hype, International Law chiefly as interpreted and applied by the (º) Tess, The Lase of Narkons (1861), p. 263, Unitex States, p. 420. (1) his ell, as, I'M) (*) Imprimé dans Hearings, pp. 82-124, [2]. 100 Nationality (195). Part II. en 40-52, (º) Voir plus hant, p. 236. Regraded Unclassified 126 HERDERT w. BRIGGS 240 24 LES ÉTATS-UNIS ET LA LOI DE 1935 SUR LA CONTREBANDE 241 as s'accorde particulièrement avec la conception que la zone conti- diction douanière sur les bateaux étrangers à plus de 12 milles guè douanière repose essentiellement sur la courtoisie interna- marios de la côte. Les réponses des gouvernements au Comité rionale et sur l'assentiment effectif ou présumé des autres Etats, préparatoire de la Conférence de La Haye (1930) pour la Codi- doit être retenue également dans la conception qui est la nôtre, fication amenèrent le Comité à adopter la limite des 12 milles que la zone contigué douanière procède d'un véritable droit fondé dans ses if Bases » n° 5, d'après l'accord de l'opinion (*). La zone sur la coutume internationale o ("). de 12 milles était également recommandée par l'Institut de Droit international en 1928 ("), et est celle préconisée par Gidel (°). Le critère de « raisonnabilité n. La Harvard Research ", d'autre part, commente en ces termes En ce qui concerne l'étendue territoriale de la zone contiguë, l'article 20 de son projet de Droit des Eaux territoriales ("): « La les Etats-Unis, depuis 1790 jusqu'avant la promulgation de la loi distinction entre la mer marginale (de trois milles) qui est sommise contre la contrebande de 1935, ont estimé qu'une distance de à la souveraineté de l'Etat côtier, et la haute mer, est définitive- 12 milles marins convenait parfaitement pour l'application de leur ment admise. Au cours des siècles passés, maints Etats ont pris législation donanière ("). Bien que la Grande-Bretagne, avant 1876. ait établi des zones douanières allant de 2 lieues jusque 100 lieues zme contigué à la Contérence de Codification (La Haye, 1930), la législation hritaimique actuelle permet la saisie, sinis certaines conditions, des bateaux (300 milles marins) ("). peu d'Etats entreprirent d'exercer la juri- Firangers зии delà de la limite des 3 milles Un examen des sect. 179, 1801 et 200 de la British Customs Consolidation Act de 1876 (39 et 40 Vict. C. 36) a (") and 616g vol. III, p. 449. convaince l'auteur de ce que le Dr. Yntema a raison lorsqu'il écrit que la Customs Consolidation Act de 1876, qui constitue l'actuelle législation de la Durant les négociations relatives au premier traité sur les liqueurs Grande-Bretagne, et qui a AE déclarée cunforme aus principes du droit inter- celui La Graude-Bretagne en 1922-1923 les. Etats-Unis proposèrent la national, contient an moins trois sections suggestives, qui impliquent le droit. recummaissance, dans le traité et par les deux Etats, d'une zone domanière de toutefois rarement exercé au cours des dernières années en raison de l'absence 12 milles. Cette proposition but rejetée par la Grande-Bretagne pour la raison de contrehande, d'étendre le contrôle domanier à tifle distance indéfinie en que La- bis d'établie une limite en milles pourruit être de nature à affaiblir le have mer au delà de he limite des 3 milles aux batenes el aus sujets étrangers, principe de la limite des 3 milles des eaux territoriales. La Grande-Bretagne droit limité dans le cas de la section 179 por In précision que ces navires propossion, éventuellement, la formule de la distance parcogrue en une heure na ces personnes devraient être trouvés ou découverts au cours do même coyage, de navigation tlimitée exclusivement pour les liqueurs alcooliques) are lieu si le huteau apportient en partie à des sujets britamiques ou si la moitié du de la zone définitive de 12 milles. Au surplus, aucun deoit récipraque ne lat personnel à bonl est britannique, dans life limite de 3 lieues de la cûte de sundère give le for would pro britannique permettait aux navires hri- Royaume-Uni, ou, en d'autres cas, à une lieue, et, dans le cas de la section 180, tormiques d'atimer des liquences à bard, sous scellés, lorsqu'ils étaient dans les limité aus hareaus, appartenani même en partie à des sujets britanniques LIME purte des Ch. Cook. 1. L. S., 288 U. S. (1933), 1112 Cir. également doint In moitié du personnel à bord est britannique. Voici un précédent parti- JESSIT, up, OR ch. VI: MASTERSON, op. oit, pp. 326-352. culiérenient Trappant, confirmé par une législation deux lois séculaire, qui suu- En se référant à the gard pro il est intéressant de noter que le Départe- ligne ce principe qu'm Etat est en droit, selon ses besuins, de premilre toutes istend de la Trésurerie des Etats-Unis étable qu'un des objectifs de La sect. mesores de répression contre la fraude dans ses eaux territoriales, en debors ib la his sur la contrybande étair de pourvoir à une base effective pour les de la limite de la mer côtière, Le résultat significatif de la longue expérience organiations à entreprendre avec les gouternements étrangers en ce qui concerne des lois britanniques de contrôle est que les dispositions actuellement en ola le resurvellement des trailés sur les liqueurs. Les traités sur les vigueur s'appliquent apparentment, sans limitation de distance, aus butendx claiem impirés par la loi de prohibition qui refusair aus butenux étras- stieints par ces dispositions qui auront été trouvés dans la distance indiquée de 2015 le dovit di- transporter sles funeurs à bord dans la limite de nos 3 willes la côte britannique, peu importe l'eudroit nù le délit dont ils sont coupables a Date has trailés sur les liquires, les bareaux des parties contractantes acaient ère commis ou la place de la saisie. Hearings, p. N9. Cir. également Jessir, de transporter des Requents comme provision de bareau dans pm op. of., p. 7% COURL invrinitides. Avec l'abrogening de velle loi, a se peut que les puissances PO Voir plus have p. 235. commactances the désirent plus continuer à appliquer les traités san les fiqueurs, depuis apn'à beur paint de vue les raisons sur lesquelles ces traités (*) Voir plus hant, p. 234. fondes Fexistem plus, Hearings, p. 150. (*) Op. cit., 14 149. GREL est désireus e d'assouplir la règle des 12 milles par la règle alternative de la distance susceptible d'étre parcoorne en une heure par (1") Loi de Groups III, CXXI (12 juiller 195). Voir MASTERSON, op. cil, 1,- navire suspect (navire massin ou navire de contact). Ida pp. 419-450. Ki TI MBY, Il lane under qu'en dépit de Topposition britannique à Fulée Sune (") Hervard Research (1929), p. 34. Clr. le texte de Farticle 20 cité plus hund. Regraded Unclassified 127 WERBERT W. BRIGGS se 26 LES ÉTATS-UNIS ET I.A. LOI DE 1935 SUR LA CONTREBANDE 243 97 certaines mesures en haute mer hors des limites de la Dier mar- doit inspirer la loi aujourd'hui en discussion, a été établi dans le ginale. Cet article voudrait restreindre l'adoption de semblables droit américain par le Chief Justice Marshall dans il Church V. Hub- mesures à cette partie de la haute mer adjacente à la mer mar- bart (2 Cranch 187 (1804) # ("). ginale. Il semble inutile de tenter de fixer ce qui est adjacent en nombre de miles, puisque les pouvoirs définis dans cet article La loi sur la contrebande et le critère de raisonnabilité, ne dépendem de la souveraineté sur les lieux et ne sont pas Lorsqu'on part de l'hypothèse que le critère de raisonnabilité fonités a une étendue géographique qui pourrait être détermi- est le principe de base internationale, en relation avec la a have- née. La distance à partir de laquelle ces pouvoirs peuvent être ring législation, et lorsqu'on se rappelle l'avis de Sir Francis exprés est déterminée non en e mileage n, mais par la néces Piggott (") selon lequel a les lois hovering sont, en principe, sité de l'Etat côtier et selon la relation entre les intérêts du terri- valables et autorisées par le droit des gens aussi longtemps que toire de ver Etat et les actes posés en haute mer. Le fait de recon- les conditions essentielles sont remplies que les dispositions de guitre que de telles mesures sont correctes lorsqu'on peut démon- la loi et que la distance dans laquelle les opérations en haute mer ITT leur nécessité pour l'exécution des lois fiscales, des lois sur la sont autorisées soient raisonnables ", la raisonnabilité particu- navisation. des lois sanitaires ou de police, ou pour line raison lière de la loi américaine de 1935 sur la contrebande peut se de sécurité immédiate, ce fait modifie, en un certain point, les défendre par les arguments suivants principes généraux de la liberté de navigation en haute mer. mais 1. La customs-enforcement area peut être proclamée seule- cette modification est ici extrêmement limitée, et elle parait tout ment si les navires hovering " sont en effet à un endroit qui ne à Guit raisomuble ell raison du fait qu'elle représente une trés soil pas situé à plus de 50 milles en dehors de la limite extrêine longue pratique suivie par beaucoup d'Etats. " des ealls douanières (*). La loi entend par a hovering vessel Le raisonnement de la Harvard Research D coincide, dans (titre IV, sect. 401 (d) é tout navire qui est trouvé ou rôdant sur line large mesure, avec les vues des auteurs de la loi sur la con- la côte des Etats-Unis, en deça ou au delà des eaux douanières si, trebande. M. C. M. Hester, du Département de la Trésorerie des d'après les antécédents, l'attitude, le caractère ou la position du Etats-Unis, qui participa largement à la rédaction de la loi, fai- navire, on peut raisonnablement estimer que ce bateau est utilisé sit remarquer an Comité de la Chambre des Représentants lors pour introduire, favoriser on faciliter l'introduction ou tenter d'in- de l'esamen du projet l'écrasante majorité des nations civi- troduire des marchandises aux Etats-Unis en contravention avec lisées a étendu su compétence pour certains buts de sécurité les lois relatives aux revenus. insqu'à one distance variable mais considérable au delà des eaux 2. De plus, le commerce légitime est protégé par les disposi- territoriales. Cette zone plus lointaine est parfois désignée comme tions de la loi qui autorisent l'examen des navires et, « si quelque eaux inridictionnelles H, On a contesté ici que bien que les marchandise douteuse destinée aux Etats-Unis est trouvée à bord, limites des caux territoriales soient lixées dans la pratique inter- ou si sit présence antérieure est constatée à bord P. la confiscation nationale let ceci est. comme on l'a précédemment indiqué, cepen- des bateaux manifestement suspects. Done. selon les dispositions dans dontenx) il it's ait pas de régles fixes dans les us et cou- de la section 206 de la loi. les navires qui présentent des indices tumes des nations qui prescrivent les limites des eaux juridic- particulièrement suspects de contrebande sont 1) les e hovering tionnelles si ee n'est la règle de raisonnabilité, et qu'une nation Vessels ", tels qu'ils sont définis plus haut; 2) tout navire qui omet puisse exercer simi autorité en haute mer sur l'étendue et la dis- tance qu'elle juye raisonmable et nécessaire pour se protéger, (*) Hearings, p. 62. (*) Procort, Nationality, PL. II, 51 (Londres, 1907). cité dans Hearings, P. 115 elle-même et ses intionems. contre tout sévice, Ce principe. qui (b) Voir sect. 1 (a) et section 401 (c) de la loi, ci-dessus, pp. 226, 227. Regraded Unclassified :41 HERBERT W. BRIGGS 28 d'allower nes leux conformément à la loi, à tout endroit quelconque thins les cana douanières ou dans une customs-enforcement area; una 3) tont navire qui se refuse à se laisser examiner et devient sujet de poursuites: 4) ou tout navire qui est soumis par un traité in l'examien ("). (*) Section 206 de la loi sur la contrebande, rédigée comme suit (Traduction): Seci- . La Section 5X7 de la hi tarifaire de 1930 (L). S. C., Suppl. VII, the 19, soc. F387) est amendée conime suit [Traduction]: Sect 587. - Examen des namires hovering . lat Toat navire havering nu bateau qui omet (saul pour des missus invoice de tenir allomés ses leux contine la loi le requiert, et ce à u'importe quel endroit soit dans les eaux douanières, soit dans l'espace soumis an contrôle studentier étable jur la lui comire la contrebande, ou est souris à quelque pour- sume per application de la section 381 de la lof, use touth navire étranger auquel Ev supersection (A) de la dite section 581 est applicable et qui peut, em verta don arrangement spécial avou in gouvernement étranger, être examiné hors des TIME dominières des Etate-Cris, peul être, en tout temps, aborilé PI examiné par nimports quel officier des douates, et les dispositions de la dite section 581 nmt application, hien en debues que dans son district, et lursque cet afficies est intorésé à examiner ve hateau, il peut également interroger sues services MIN (apitaine a propos de sa cargaison et du voyage du bateau, et faire conduire le dans le port des Etats-Unis convenant le mieus prior fesa- taris de La et W le maitre (capitaine) de ce Interna refuse d'accéder an onlres regulars dunnés par et afficier ou net répond pas, bonnêtement et sin- 400 atrestimes qui loi sunt posées ad sujet du hareau, de sim charge- IN de san de capitaine peut être condainné à line amende qui the pour in superience a SAMMI dollars ni inférieure à 500 dollars Si, dans Vesa- man de or buteau ou de M cargaison par un officier des dimanes, un derait American à but THIE subjecte destinée aux Etats-Unis, ou di No pre- - d'une telle marchandise est constatée à bord, ce bateau en sa worm) sanis di confisqués. Time nurchandise (à l'esception des chres pur L. name shom Emportations est prohibée aus Erats-Unis, ou qui consiste ein vins, our ultres Infissions alcooliques, qui serait trouvée no décon- - 0 lood. devid être présumée comme Élant destinée aux Etats-Unis WT % im shargé d'une corginison, découvert En n'importe quel endrait des suit dane has PHIL domanières, soit dans la zone soumise au contrôle domated Baldie sebot la lui sur la contrebande, est ensuite retrouvé less we declare (mm) LINE partie de sa cargaism, si le capitaine el inca- polity du reader the (sir) sist de l'endroit où la cargaison ou une jurtie + rellesi, dans des marchandises dont l'importation aus Etate-Unis "IL I'M apiritums, vine out milres buissons alcooliques, a ête régu- (Y) between veral suisi et confisqué, et Amount dis depositions de Trtle section ne pourra être interprétée de à Payment a la onficiation un basenú qui se rend, de honne foi, d'un por Charge - you Mille part changer, el qui poursuit sa course, comme le VIII " to image b-hi permetical. - - swirante la resion THE de for las KOT for contrebande est rúdigée, partiellement. de la 128 eg LES ÉTATS-CNIS ET LA LOI DE 1935 SUR LA CONTREBANDE 245 3. Par cette méthode de baser l'établissement d'une customs- enforcement area sur l'évidence des faits existants, en établissant cette zone uniquement aux endroits où des bateaux hovering particulièrement suspects se trouvent en ce moment, le critére de raisonnabilité est établi avant que la zone soumise au con- trôle douanier soit établie. Si, au lieu de suivre cette méthode prévue dans la loi, les Etats-Unis devaient, par leur droit interne, étendre la zone de leurs eaux douanières à une étendue uniforme Sect. 203 (a). 4. La section 381 de la lui tarilaire de 1930 (t). S. C., Suppl. VII, are 19, sec 1581) est amendée contine suit: Sect. 38L - thordage de natives, di Timi officier des douumes peut à tent montent se: rendre in bord d'un ou d'un véhicole en tont emiroit des Etats-Unis, ou dans les caus dona- nines (ill, will y est autorisé, dans les times sommises an contrôle dounnier (tablies par la loi sur la contrebande, ou en tous nutre endroit autorisé, au debors de comme class son district, uas fins d'examiner les papiers et autres documents, d'examiner, d'inspecter el de laire des recherches aussi bien sur le bateau que dans n'importe quelle partie de celui-ci, aussi bien que twite per- summe, Imite malle, toat paquet ou toute cargaism à hard, et, pour ce faire, il pout appeler et faire stopper ce hatena nu véhicule et Luire usage de this les movens nécessaires pour contenindre ce bareau à obeir... di Tout navire un véhicule qui, à un embroit autorisé, est requis de shopper pur un ullicier de In doubne, 00 qui est requis de stopper par an signal lait par IIII bateau au service de be douane, partant l'insigne el le permant prescrits pour (C) boreans par le Président, ce bateau doit s'arrêter, laute de quoi, sil loi est. requis de s'arrêter, il pourta être l'objet de poursites et le capitaine du mem sera passible d'une amende qui n'excédera pas 5,000 dollars et me sera pas inférieure a 1,000 dollars. Il est du devoir des différents ulliciers des donans de poursuive tont vaisseau qui serait passible de poursuites, de l'aborder et de Texaminer, et d'esaminer (oute personne on toute marchandise a burd. au dehors nussi bien que dans leurs distriets respectils, el à [out endroir 411 boute incr, HILL, si la chose est permise pur les autorités étrangères intéressées, partout où to batens pent être poursuivi aussi bien qu'à und autre endroit autorisé, e). Si lois de l'esamen du batenu THE do véhicule, il appert qu'ene infraction à la législation des Etate-Linis a êté commise ou est en train de se commettre rendant ainsi le bateau ou It véhjcule, aimi que la marchandise ou une partie de celle-ci, qui est is hurd un qui a été introduite aux Etats-Enis par ce batenu ou ce véhicule, possible de confiscation ou d'une amende, ce bateau ou ce véhi- cule, uu as marchandises serunt saisis et toute personne responsable d'une telle infraction sera arrêtée, 1) Les différents officiers des downes devront saisir et s'assurer tout baleau, véhicule od marchandises qui seraient passibles de saisie, et arrêter les personnes agrai seraient possibles d'arrestation, en vertu d'une loi quelconque sur les revenus, aussi bien hors de leur district que dans leur district respectil, et user de tous les moyens nécessaires pour les arrêter et les saisir. g) Tout navire, dans ou hors des eaux dounnières, dont la marchandise est ou a été illégalement introduite aux Esses-Unis, avec le concours de quelque bareau appartenant aux Etats-Unis, un qui appartiendrait, on serait contrôlé ou véré en common avec et dit navire, le dit unvire sera considèré conne 129 DEBRENT W. BRIGGS 210 so TES ETATS-UNIS ET LA LOI DE 1935 SUN TA CONTREBANDE 267 31 dr de 10 miller de la côte, les nations étrangères, déclarair sur une distance bien définie en haute mer pourrait constituer M. Hoster devant to Comité de la Chambre, pourraient objecter un précédent indésirable 10. façon de suire violemit le droit international, Car elle 4. Pour ce qui concerne les réclamations portant sur un bateau por correspondrait pas ait critère de raisonnabilité 8. An lieu saisie dans la zone soumise au contrôle douanier, la déclaration (Pérendo notte comrôle Jouanier sur time largeur uniforme, con- du Président aux termes de laquelle un bateau est at hovering timmit-it. nots l'étendons uniquement à la zone dans laquelle uset une intention illégale hors des eaux douanières des Etats- mus des contrebandiers, car nous pensons que cela Unis est une déclaration pureinent prima facie rendant seulement no soulèvera (lub d'objection de la part d'un pays étranger, et que possible de juger la cause du plaignant devan un tribunal. cella wish emborme all critère de raisonnabilité sous l'empire du Ainsi que le déclarait M. Hester devant le Comité de la Cham- dovit international ( ). De même, le professeur Hessel Yntema, hre (¹): u Le plaignant se présentera devant le tribunal et con- dont l'opinion est de poids, écrit (*) que dans la loi contre la testera que le gouvernement ait le droit de saisir le bateau à controbande il n'y a aucune prise de contrôle sur time surface l'endroit indiqué, car, en droit international, le gouvernement hien définitée en haute mer. mais uniquement une extension n'avait pas le droit d'établir ce contrôle douanier à l'endroit où neussaire, un monicit donné et à un endroit donné, du con- le batenu a êté saisi... Alors le tribunal aura à dire si, oui ou non, trick de la contrebande le long des côtes des Etats-Unis, De en saisissant le bateau, le gouvernement a étenda son contrôle plus, il affirme que les dispositions de la loi la assurent an com- douanier au delà d'une distance raisonnable, maritune légitime la meilleure protection possible contre is Enfin. naturellement. le caractère raisonnable de la légis- les interventions du contrôle effectif de la contrebande: permettent lation hovering, le caractère raisonnable d'une saisie d'un bateau à n> mesures d'être exécutées d'une manière correspondant exac- étranger ou de la procédure employée pourra faire l'objet d'une tenent aux besoirs variables de l'administration: précisent l'au- discussion diplomatique entre l'Etat du plaignant et les Etats-Unis. torité des officiers des Etats-Unis en ce domaine; renforcent les Il est bon. toutefois, de rappeler ces mots du professeur Yntema (") obligations contractées par les Etats-Unis dans les traités: et res- l'exercice du droit est conditionné par le caractère raisonnable pretent les considérations qui unt conduit à l'adoption de la des mesures employées et de l'étendue de la zone soumise à la distance en une heure de navigation par le bateau surveillance: une foute honnête dans l'exécution n'est pas une dans ve qu'ion a appelé les liquor treaties ", notamment l'appré- excuse: si, dans un cas particulier, la saisie est estimée injustifiée, hension exprimée par curtaines puissances et selon laquelle une elle peut donner lieu à une protestation de la part du gouverne- disposition pour Emplication des mesures contre la contrebande ment étranger: si cette protestation s'avère fondée. elle doit donner lieu à réparation... La théorie de " tolérance 9, en décrivant cet - Coinne imbani, de ct: lait, sous les dispositions ensemble d'idées comme un droit toléré, si elle souligue bien ses de - within caractéristiques qualifiées, est, cependant. défectueuse en ce qu'elle de servime He setmit pas interprétées dans le setts suggère que l'existence du droit dépend de l'absence de protesta- 000 un officier des d'appliquer les his des en Rigute Und im baténue étranger en contravention avec les traités tion. Si l'assentiment est la preuve irrétutable du droit, cela ne information ou permettant aux autorités des Ents- signifie pas que le droit puisse disparaitre devant une protestation die d'examiner, do sinir ни d'uppliquer nu bateaur en have HEEF les non fondée. has des Enge niv vial is ullurités 3. sual nu pervent y être autorisées 1str die used conclusiver LO Granger... Pour les raisons exposées ci-dessus, l'auteur de cet article estime 1 PP- and Soums, noturellement, à une limitation, dans l'expart. de an mills M lines des PROV funnières (:1) Id., p. 159, YE (") Id., 121, Regraded Unclassified 130 HERRERT W. BRIGGS se 118 LES ÉTATS-UNIS ET LA LOI DE 1933 SUR LA CONTREBANDE 249 333 Tidée de la zone somuise au contrôle douanier telle qu'elle est que préme dans la toi contre la contrebande n'est pas contraire tion de groupements pour la fraude de liqueurs, si actifs dans leurs opérations au large des côtes avant la mise en application du droit international. de la loi, parait ne plus exister... A mon avis, la loi contre la con- Application de la toi contre la contrebande ("). trebande a joué un rôle important dans la suppression quasi totale do problème de la contrebande des liqueurs. Le total des revenus Cauteur estime, en nutre, que l'application et l'administration annuels perdus à cause de la contrebande des liqueurs qui était de la loi cruitre la contrebande au cours d'une période de trois estimé à 30 millions de dollars, même après l'abrogation ("). est années ont également été conformes au critère de raisonna- virtuellement descendu à zéro depuis l'établissement de la loi con- bilité Jusipia présent cinq zones soumises au contrôle douanier tre Es contrebande. L'exécution plus effective et plus coordonnée ont été proclamées conformément à la loi, dans la période com- du travail du Département de la Trésorerie durant les trois der- prise entre le 7 anût et le 27 décembre 1935. Depuis 1935, aucune nières années a été, indubitablement, un grand facteur dans ce 2010° nouvelle n'a été amoneée, Le nombre de bateaux contreban- résultat: mais on ne peut contester l'effet produit par la loi elle- diers.qui était de 39. avant que l'Acte n'ait force de loi, est tombé même contre la contrebande. L'effet le plus important a peut-être à zéro en juillet 1936. Depuis lors, le nombre des bateaux have- été d'ordre psychologique: la crainte produite par la loi dans les ring. signalés ou reconnus de la côte des Etats-Unis, a été le sui- cercles organisés pour la contrebande de l'alcool. vant: en août 1936. un: de septembre à décembre 1936, aticun; En ce qui concerne le nombre de navires saisis. M. Oliphant en décembre 1936, deux: de janvier à avril 1937, un: avril 1937, écrit Suivant les rapports disponibles an Service, il y a eu trois: mai 1937. deux: juin-août 1937. un: août 1937, deux: sep- suize navires saisis par application de la loi contre la contre- tembre 195°, un: octobre 1937 à avril 1938, aucun: avril 1938, hande. Douze de ceux-ci furent confisqués, trois furent relâchés, deux 1% Il n'a pas été jugé nécessaire, cependant, de proclamer et un cas est encore pendant. » Les seize saisies eurent lieu entre de nouvelles zones de contrôle douanier depuis 1935. Citons ici le 7 septembre 1935 et le 25 avril 1936, date de la dernière saisie M. Oliphant. Conseiller général du Département de la Tréso- opérée conformément à la loi. De ces seize navires, onze étaient rerie C): C'est l'opinion du Département de la Trésorerie que américains et consistaient, en grande partie, en petits bâtiments la Ini contre la contrebande a. au mieux, atteint le but qu'elle de contact, de 7 à 13 tonnes. Aucun problème de droit interna- recherchait. Elle a êté extrément efficace en supprimant la tional ne fut soulevé au cours de la saisie de ces onze navires contrebande exercée au moyen de bateaux hovering et de bateaux américains, de contact au large de nos côtes, Sil y a en des infractions spora- Quant aux cinq autres bâtiments saisis par application de la loi diques de la part de batenux hovering depuis les environs de juil- contre la contrebande. trois d'entre eux étaient britanniques, un let 19.36, on me découvre aucun signe d'un retour aux opérations norvégien et un mexicain. Parmi ceus-ci, un navire britannique, de contrebande vutreprise sur une grande échelle, et l'organisa- le Popocatapelt fut saisi à environ 10,2 milles marins de la côte. 11 Pour La du celle section sur Capplication de la lai. l'auteur Un autre navire britannique, le Pronto, fut saisi à 75 milles de la do de compter sur le généreus concentrs de l'houncable côte, et le troisième navire anglais, le Miserinko, fut saisi à environ Herman Officio, consciller sincial Départment de la Trésorerie des Etais- 36 milles de la côte, Le navire norvégien Reidun et le navire mexi- Unio, all de Demorable Green IL Haskworth, consciller juridique, Département dia der Ini IMM pormás de recueillir des informations supplé- cain, Molokai furent, tous deux, saisis au port. Humans per obtain Dans le cas du Reidun, et dans ce cas seulement, la décision International loomie A l'autvier que le Départent de la Trésureric des prise par les tribunaux a été publiée. Les renseignements fournis 1°( Lense an M. en date du 2.5 moi 1938. (*) Abrogation de l'amendement de prohibition. Regraded Unclassified HERNEBT W. BRIGGS 35 LES ÉTATS-UNIS ET LA LOI DE 1935 SUR LA CONTREBANDE 551 131 34 $50 le Département de la Trésorerie nous font connaitre la pro- enforcement area ou des eaux douanières o, il livrait de grandes pur cédure snivie at les décisions finales prises pour les bateaux dans quantités d'alcod belge à des 0 rum-runners britanniques (dont le bateau à essence britannique Pronto) qui l'y attendaient les quatre autres cas Mexicain MV Molokai. Saisi au port de Los Angeles, Cali- suivant ce qui avait été précédemment concerté. Ces navires formie, le 18 mars 1936. pour le motif que ce bateau était soupconné rapides spread fanwise (s'éparpillèrent en éventail), vers différents endroits de la côte des Etats-Unis, depuis le Maine d'avoir pour dessein de se livrer à la contrebande de l'alcool aux Etate-Unis. Citation déposée au Tribunal du District des Etats- jusqu'en Floride, d'ancuns firent progressivement entrer, en con- trebande, de l'alcool aux Etats-Unis, d'autres se firent saisir. Le Unis pour le District de la Californie méridionale, Division cen- Pronto fut saisi et confisqué en janvier 1936 ("). Deux mois plus trale. tendam à suisir le hateau pour infraction à la section 3 de tard, en mars 1936, le Reidun arrivait à New-York, avec un char- la loi contre la contrehande. La procédure de saisie fut suspendue gement régulier de sucre de Cuba. Il fut saisi dans le port de sous l'andre de l'Attorney Général, et le bateau rendu au plaignant. New-York et poursuivi, inter alia, pour violation de la section 205 Britamique Popocatapelt. Saisi le 7 septembre 1933 à de la loi sur la contrebande prohibant le déchargement illégal de environ 102 milles de la côte. Citation du 24 (évrier 1937 au boissons alcooliques (") à n'importe quel endroit en haute nier tribunal de district des Etats-Unis pour le district de New-Jersey adjacente OUX eaux douanières des Etats-Unis 0, à Canden, N, J., pour infraction à la section 3 (a) de la loi contre la contrebonde. et à différentes dispositions de la loi tarifaire (*) Voir pho have (5) Sert. 21G. La sect: 386 de be loi twrilaire de 1930 (I) S. C. Suppl. VII. de 1930. La procédure en saisie est encore pendante. titre 19. ser, (386) est atuendée comme suit (Traduction): Britannique 0 S Pronto. Saisi le 20 janvier 1936 à environ Seri. 3MG Déchargement ou transbordement illicite. to milles de la côte, avec l'alcool provenant du Reidun. Bateau el Le capitaine d'un navire venant d'un port ou d'une place étrangére qui unterise le déclargement de marchandises (y compris les vivres de mer) de immédiatement confisqué par in agent des douanes à Charles- L'L à n'importe quel moment après snn arrivée dans les entir donanières ton. S. C., pour violation des sections 3 (a) et 7 de la loi contre et avail que LE bateau n'ail atteint l'endroit désigné pour le déchargement de us marchandises, et avant qu'il n'ait reçu la permission de décharger, será la contrebande et différentes sections de la loi tarifaire de 1930. possible June amende égale à deus livés la valeur de la marchandise, et qui ne Beitannique OS Miserinko ( ). Saisi le 14 mars 1936, à 36 mil- peur être inférieure À 1.000 dollars: ce bareau, sir cargaism el la marchamlise les environ de la côte, Proces-verbal du 13 avril 1936 au tribunal ainsi délrarquée seront suisis et confisqués. (c) Le propriétaire I'm Initeau venant d'un port uu d'une place étrangère de district des Etats-Unis pour le district sud du Maine, à Port- qui permel qu une marchandise (y compris les vivres de mer) dont l'importa- Land Maine, pour violation des sections 1 (a) et 3 de la loi contre tion est prohibée aux Etats-Unis, au qui consiste en spiritueux, vins ou autres Inpueurs alcuntisées, suit, à n'importe quel endriit en haute mer adjacente aux la contrebande. Bateau confisqué le 17 avril 1936. coux dommiéres des Etats-Unis, transburdée, on placée ou reçue par quelqu'aurre Le uses iha Realun (") doit être examiné avec plus de détails, bateau quel qu'il soit, alors qu'il connait, ou alors que les circomstances lui font connaitre que le but est de rendre possible l'introduction, ou la tentative d'in- Le Reuton, un bateau norvégien. quittait Anvers en 1935. avec un induction de cette marchandise mi d'une partie de celle marchandise aux chargement d'environ 120,000 litres d'alcoof belge à débarquer Etats-Unis, en violation de la Ini, sera passible d'une amende égale à desix foís la valeur de la marchandise, et qui ne sera pas inférienre à LODO dollars, et he dans des ports canadiens, En novembre, il arrivait à environ bateau d'oû la marchandise TV été ainsi déchargée, sa cargaism et ces mar- 120 milles an sud de Saint-Pierre-Miquelon, et à cet endroit. en chandises seront saisis et confisqués. haute mer. à un point " éloigné de plus de 500 milles et d'un peu cl Le capitaine d'un hatent venant d'un purt on d'une place étrangére qui perinet qu'une marchandise (y compris les vivres de mer) destinée aus moins de 600 milles de la côte des Etats-Unis et de toute customs- Etate-Unis, Et dont l'importation ans Etats-Unis est prohibée, ou qui consiste en spirituens, vins ost nutres boissons alconlisées, soit déchargée sans permis 11 Pour une discussion de ve voir plus loin. de déchargement, à quelqu'endroit en haute mer adjacente aux eaus donn- 1% 11930, Detrict Court, Enstern District N. YJ 14 Federal Supplement. 711 nières des Etats-Unis, transbordée, placée ou reçue à hord de quelque bateeu 1) id, 112 Ci) @galement SPINGARS, loc. cit, p. 52. des Erats-Unis ou de four autre Intenn. propriété d'une personne citoyen des Regraded Unclassified 132 HERBERT W. BRIGGS 36 LES ÉTATS-UNIS ET LA Lot DE 1035 SUR LA CONTREBANDE 253 37 252 Dans un jugement provisionnel, le tribunal refusa d'admettre faite au traité avec la Norvège seinble être à côté de la question. la validité de la saisie faite à New-York pour le motif allégué, et Le tribunal a oublié de distinguer entre la saisie en haute mer au déclara qu'il était irraisonnable de croire que le mot « adja- delà de la limite du traité, ce qui serait illégal, et une saisie faite cent dans la section 205 pouvait inclure une distance au delà à New-York pour une violation antérieure à la législation des Etats- des taux douanières qui soit plus grande que la distance per- Unis qui eut de l'effet extraterritorialement. En effet, dans une mise dans la customs-enforcement area, soit 50 milles nu delà seconde décision provisionnelle, en ce qui concerne l'affaire do des cans dommières. De plus, disait le tribunal, " on peut observer Reidunt ("), cette distinction hit soulevée par le tribunal. Dans que le Statut contre la contrebande, pour autant que cela con- ce cas subséquent, le Gouvernement des Etats-Unis avait modifié certife les nations ayant un traité, n'a nullement pour intention ses conclusions et invoquait une nouvelle cause de confiscation. d'étendre les droits juridictionnels des Etats-Unis au delà de ce la confiscation était basée sur la violation de la section 3 de la qui a êté admis par les nations ayant un traité #; l'endroit du trans- loi contre la contrebande ("), el, notamment, sur le fait que le burdement indiqué au procês-verhal n'est pas dans la limite d'une Reidun, à Anvers, avait été équipé, en partie, dans le hut d'être heure de navigation stipulée au traité du 24 mai 1924 entre les employé pour frauder le fisc américain et avait été employé dans Etats-Unis et la Norvége, puisqu' il n'est pas contesté que le ce dessein. La saisie, à New-York, fut provisoirement admise par Reidun ait une vitesse de 500 milles à l'heure 16 le rribunal, tandis que le jugement était tenu en suspens, sur la Bien que la décision du tribunal paraisse fondée, la référence base de la section 3 de la loi contre la contrebande qui dispose que certains actes commis hors du territoire soumis à la juridic- THE dumiciliée aux HU d'ane société constituée aux Etats- tion des Etats-Unis, mais portant détriment aux Etats-Unis, sont Unis. wra presible d'une anounde égale à deux lois la valeur de la marchandise, man qui ne jus inférieure in 1,000 dollars, et le bateau dont la marchandise punissables, bien qu'on ne fasse ni saisie ni essai d'exécution, sauf ès et cette marchandise setuni saisis el confisqués. dans le territoire tombant sous une juridiction. Le juge Galston di Si quelique marchandise (3 compris les vivres) déchargée contrairement dit notimment « Il n'est pas ici question d'infraction aux droits ans dispositions de celle section, est transburdée, placée ou reçue à bund d'un name boreau, le capitaine das forean sur lequel la marchandise est ainsi chargée, des traités. Il n'y est pas question de fouille ni de saisie en haute musi que inmée personne concodrant ou participant à ce chargement servil mer hors de la zone soumise au contrôle douanier, ni au delà de provilites d'inne amende égale uu double de la valeur de In marchandise, el qui la distance d'une heure de navigation à partir de la côte. Les termes no service 1 inférieure à 1,100 dollars, el ce batent, sa cargaison et cette nan chandise servid subsis el confinqués, aux Etats-Unis ou ailleurs », tels qu'ils sont employés dans la r1 Tume personne qui, oux ou en deça d'une lieue de la cite des sous-section, sont, certainement, sans aucune ambiguité. L'absence el engagée no anle un participe ao déchargement ou au des mots M ou ailleurs » dans la législation d'autrefois connue sous June marchandise, en consignence de quoi le bateau est summis à la contiscation selun les dispositions de celle section, cette personne, ein plus des le nom de « piracy-statutes " est hautement significative; et pour mures pénalités prévues year la loi, sera passible d'une peine d'emprisunnement autant que cela concerne les bateaux étrangers, il n'y a aucune ne dépossant plas deas années. 11 Longu'are partie de la ou des tivres d'un bateau a été déclar- présomption d'une limitation à la distance d'une heure de naviga- ARE transfandée par suite d'un accident, d'une tempête ou pour ne autir tion, ainsi que cela existe dans les autres sections de la loi. Le mudil resident la chase nicessire, le capitaine de ce bateau et le capitaine Congrès peut fort bien avoir eu l'intention de punir les personnes do hairan sur lequel celle cargaison TIII ces vivres out été transbordés notifie- spue possible, (et Date an Collector du district où le déclarge qui conspirent, hors du territoire soumis à sa compétence, pour rivent ust le transbordement IRIVE eu lien, ou au Collector du district où les violer les lois. nationales, dans le but de les appréhender et de Intern arriverium et aborderent en premier lieu, en lui fournissant la preure in opérations misi êté rendues nécessaires par accident, tempête NO (unie les punir lorsqu'elles sont trouvées sur le territoire sur lequel il sure LIMITED de lurge Magnine, et si le Collector reconnaît que le déchorgement - 4. IM réellement di à un accident, à une tempête ou à une (1) 1936. 15 Federal Supplement, 112 allite has peimes définies dans cette section ne seront pas appliquées, (°) Voir le texte de la sect. 3 plus haut. P 1. Regraded Unclassified 133 HERDERT W. BRIGGS 38 LES ÉTATS-UNIS ET LA LOT DE 1995 N'A LA CONTREBANDE 955 39 compétent. Si le Reiduit était équipé, comme on l'a soutenu, est passer des marchandises en contrebande et pour les intro- Il faut ajonter que le Miserinko, quoique enregistré comme navire pour duire aus Erats-Uis, el ce contrairement aux lois fiscales de Ce beitannique à Bridgetown. Barbadoes, Indes occidentales britan- miques, était la propriété, de facto, et sous le contrôle d'un citoyen il a courts le risque d'être puni en arrivant dans la zone de contrôle pass, domanier. The décision au fond dans ce sens fut rendue des Etats-Unis, ainsi que le découvrit le tribunal et, de ce fait, le Miserinko devait être considéré, dit le tribunal, comune navire per le tribunal. des Etats-Unis. dans le sens de la section 3 (b) de la loi contre Cypendant ce jugement ne int jamiais rendu. Le Gouvernement la contrebande. La copie de la décision du tribunal établit que mexégient protesta contre la suisie du Reidun et assura que le propriétaire et plaignant de ce navire et de cette cargaison le norvégien s'efforcerait de prévenir les navires a accepté la confiscation prononcée. nurvégiens is ne plus se méler, à l'avenir, à des entreprises simi- 11 y eut peu de protestations diplomatiques contre la loi et son laires; suits l'antre de l'Attorney Général, la procédure fut inter- application. L'auteur a été informé par M. Hackworth (*) de ce respite et le Reúlun remlu aux plaignants (). que des notes, en date du 17 juin 1935 et du 2 juillet 1935 ont Il semble qu'à ce jour seul un navire étranger ait été saisi par êté reçues de l'ambassade britannique et de la légation canadienne application de la loi coutre la contrebande, en haute mer au delà demandant des éclaircissements sur les dispositions contenues de be fanity des 12 milles des eaux douanières. Ce bateau était le dans cette législation. alors qu'elle était en discussion au Congrés. batenu britaunique Miseriako (53 tonnes, avec une cargaison Une note datée do 6 août 1935 fut également reçue de l'ambassa- de 981 caisses d'alcool). et, par conséquent. un o treaty vessel deur de Grande-Bretagne à ce sujet. On peut ajouter que le Miris- qui nétail pas sounis à la saisie à une distance supérieure tre de Norvège protesta contre la saisie du steamer norvégien Rei- à celle d'une heure de navigation à partir de la côte. Ce cas n'est dim, qui fut ordonnée conformément aux dispositions de la loi. jas rapporté dans les relations officielles et l'endroit de la saisie Ancune communication n'a été reçue d'un autre gouvernement n'a pas êté netterment fixé. Le Département de la Trésorerie a étranger pour soulever quelque objection au sujet de cette loi. informé Entheur de it que ha saisie a eu lieu prês de la côté A part la seule exception éventuelle du Miserinko, on peut done du Maine. à un point sitné à environ 36 milles E-S-E. du phare conclure que l'existence et l'application de la loi contre la contre- de Boom Island 0, mais la copie du dossier du tribunal. obtenue bande, et ce pendant une période de trois ans, ont. avec succès, par l'auteur. établit que la saisie ent lieu of à un point en haute mer mis fin à toute la contrebande d'alcool organisée de la haute mer situé i 55 milles... de Jeffrey's Ledge Buoy dans la zone de vers les Etats-Unis, et sans violer les droits des Etats étrangers contrôle donamer n° i L'auteur n'a pu vérifier si le Miserinko a ni le critère de in raisonnabilité P. été sini dans Ex limite d'une heure de navigation à partir de la côte. S'il n'en a pas été ainsi, il fant présumer que la saisie a été (") A la date do 23 juin 1938. taite en violation. à la fois du traité des liqueurs avec la Grande- Bretagoe et de la section 1 (b) de la loi contre la contrebande. Le Gouvernement britannique n'a pas protesté contre la saisie. Une information obtenue do Département de la Trésorerie et do Dégir- d'un You loc, cit., p. 52. Le texte de la protestation management ESI mais, prisque le Reidun fut saisi en rade de New- York an cojos un peut criire que la protestation * rajh plus Experication entra-tercitoriale du droit pénal des Etate-Fair, qu'à de disto la zume contigué, Regraded Unclassified 134 October 6, 1939 By dear Mr. President: In view of yesterday's discussion at Cabinet, I thought you would be inter- ested in the inclosed memorandus. Sincerely yours, The President, Hyde Park, N. Y. 135 October 6, 1939 ky dear Mr. President: In view of yesterday's discussion at Cabinet, I thought you would be inter- ested in the inclosed memorandum. Sincerely yours, The President, Hyde Park, N. Y. 136 October 6, 1939 ky dear Mr. President: In view of yesterday's discussion at Cabinet, I thought you would be inter- ested in the inclosed memorandum. Sincerely yours, The President, Hyde Park, H. Y. Regraded Unclassified 0 I Secretary Morgenthau October 4. 1939. Mr. Foley les Your Request for Information on the Anti-Swucgling Act. The Anti-Smuggling Act of August 5, 1935, was sponsored by the Treasury Department NB a result of the widespread post-repeal smuggling of 11quor Into the United States along our neaboards which, at its peak in late 1934 and early 1935, was estimated to be costing the Government $30,000,000 annually in revenue losses. You will remember that on Merch 9, 1935, you appeared at hearings held by the Raye and Means Consittee on this bill end made a strong statement in its support. The Act, which widely extended the jurisdiction of the United States over the waters adjoining its coasts, is based on the legal theory that while & nation day not extend its territorial waters (which most nations, including the United States, regard AB extending to a distance of three viles [rom shore, and within which the jurisdiction of & nation 18 na absolute and complete, broadly speaking, as if the land extended up to that point), et netion say, under International law, exercise limited jurisdiction for purposes of national safety and protection of the r=venue to such a distence from its shores as is ressonably necessary for those purposes. That zone, which will differ (ith circumstances and 06558, is sometimes referred to AR jurisdictional waters, The provision of the Anti-Smuggling Act which has attracted the most Internet end comment is section 1, which provides for the establishment of "custons-enforcement aress". That section authorises the creation of such areas beyond the existing 12-mile limit of customs control whenever the President finds and declares that vessels are hovering or being kept off the cosst of the United Statia outside customs waters, and that, by virtus of their presence, the unlawful introduction into or removal from the United States of merchandise or persons may be accomplished or threatened. The establishment of such areas is unde subject to the geographical limitations: (1) only such waters on the high peap should be within & customs-enforcement aree as are in such proximity to vessels hovering or being kept off the coast that the smuggling of merchandise or persons say be carried on by, to, or from such vessels; (2) no customs-enforcement area shall include waters more than 100 alles in either direction up and down the cosst from the imediate true where the v-asels involved are present (that 1a, 200 miles In all) or more than 50 miles out to sea beyond the existing 12-mile customs limit Regraded Unclassified (Not 1, total of 62 miles reaverd). Within thore cueto -enforcement PAIR coast guard und customs officere, or other persons uthorized by the Cecretary of the Treasury, are en overed to enforce those 1 we which 1y to the high at djecent to sericon customs waters. Pections 1 nd 203 of the /ct contain providions thoriving Incricen ifficers to born, March, end versels in murtowr-enforcement reas TOTAL the circumstances morrent it. It should be noted, however, the t there re scific rovisions in Die ct recluding merican ficers from enforcing I ma in custo enforcement TELF voinet vessels of nations with which TE have treaties where such ction ou contryvene tru-ties. The treaties which 26 contem 1 in those pro- visions of the Act are the so-called Linuor treaties which the United States by . 11th 16 other nations, including Germany, Trudice, nd England, nian travties authorise reizure of the vessels of wich " tions only within on hour's selling dist-nce of the court. Five curtoms-anforcmment ...t up by recidential oct ation intoeen must and Decemb F 1935. Three of those extend in - line M robinately from the Canadian horder to /tlantic City, Ber Jersey, no the other two are in the Gulf of Serioo. 1though isuor soughting stivity ie now virtually non- evertont in those 2018, the sre e have ever been terain ted to residential reglam tion, which is required by section 1 of the ct. The remaining provisions of the ict may in covered briefly. From the int of conbiting smurgling, the 2011 important in section which oub- jects to Porfeiture versels built, fitted out, or en loyed for make 1.g or to airoud the revenue. Other rections of the ACT (1) robibit offenses by our nation 18 nd vessele goinst the revenue Love of such 'oreign countries on recigrocute by similarly venelicing their nation 19 versela for surgegling Into the United States; (2) provide for the general increase o 'ines and multies velative to mustline Na for the 08/11/ing of Acts rticul rly Indicative of musgling sativity but not otherwise cover d by Lew; (3) rovide for effective dministrative control over bo ts of Lass thin 500 tons (which is the type of to t usually used for Licuor sunggling), nd inz 61:12am control over mall contact boats which bring the contrabend rom howering Ve190.6; (4) rovi e for changes in rul 9 in proof in forfeiture roceedings to enable ef- :ective handling of such cases. It is worth noting that the phrase " overing versol", which 1P used frequently throughout the ict, is defined in the Act to mean vessel found or við off our const within or without custome aters if, "rom all the circumstance, it is reasonable to believe that that vessel 1- being or by De upril to facilitate "the introduction or attempted introduction of merch ndige into the United Statem in violation of the lows respecting the revenue". Regraded Unclassified 138 . - Two provisions of the Act which are perhaps worthy of separate nention are sections 205 and 206. Section 506 prescribes penalties and forfeitures for vessels from foreign porto or pleces which (1) unlade any merchandise within the customs waters of the United States without permit; (2) trumbip liquor, or merchandise the importation of which into the United States is prohibited, to vessels of the United States within or without customs waters; or (s) treaship liquor, or merchandise the imports= sion of which into the United States is prohibited, to any vessel within or without customs waters if the circumstances indicate as purpose to have the li:uor or merchandise smuggled into the United States. Bection 206 subjects to boarding end search any hovering vessel (as defined above), any vessel which feils within customs waters (12 miles) or within a custons-enforoemant 1200 to display lights required by law, or any vessel which fails to stop when required to by a customs or coast guard officer. Such vessels my be brought into MD. American port for examination, and for forfeiture if dutiable merchandise deatined to the United States 18 found to be, OF to have been, on board the vessel. The Anti-Sanggling Act has been markedly successful in results. To it, as well as to the Treasury's more effectively coordinated enforcement activities, say be attributed the virtually complete elimination of post- repeal liquor smuggling which was once costing the Government $50,000,000 a year. The effect of the Act, however, has perhage been largely psychological since there have actually been relatively few cases made under it and there has been only one reported court opinion construing it. The Reidum (D.C., E.D.N.Y., 1936) 14 1. Supp. 771; 16 F. Bupp. 112. In this connection, I think you sill be interested in the attached reprint which we have just received of an article by a Professor of International LAW at Cornell University which recently appeared in French in & Belgium periodical of international law, "La revue de Droit international et de Legislation Comparee". This article quotes at some length your testimony in 1935 before the Ways end Means Committee on the Anti-Emuggling Bill (see page 3 of the reprint), as well as other statements unde by you. The article concludes that the Anti-Smuggling Act represents & sound exercise of extra- territorial jurisdiction on the part of this country under international law and that the Act has been eminently successful. (Initialed) E. H. F. Jr. copied 10/0'00 One original sent to Attechments 88(e) social B. - Cushem FEDERAL RESERVE BANK OF NEW YORK Oz. OFFICE CORRESPONDENCE DATE October 6, 1939. CONFIDENTIAL FILES SUBJECT TELEPHONE CONVERSATION WITH L. W. Knoke BANK OF BNOLAND. I called Mr. Bolton at 9:20 this morning. 4.04 had just been paid for sterling, I told him in reply to his question, and the market continued a small one. Has there been any special reason for the recent advance of sterling, he asked, and I outlined to him briefly the observations most frequently heard in our rket on that point. I referred to his cable of September 28 dealing with the difficulties of the British Embassy's staff in ceshing sterling bills. I assumed that this was not an urgent matter 88 long RS sterling was at the present level and could he wait to receive E letter that I was now preparing for him. "I'll await your letter; it 1s rather e general matter anyhow," be replied. For the next three or four months or more, Bolton then stated, they would have rather substantial dollar balances before the funds were dissipated for the payment of imports. Would it be possible to invest a portion of them in United States Government Treasury bills? I assumed, I replied, that he knew what the present yield WSSI .026 for last Monday's tenders; .082 for the week before; .125 and .159 for e few weeks prior to that. The present yield of .026 might improve e little but the recent .082 rate seened quite enerally to be considered 6. fair return in prevailing circumstances. .036, Bolton replied, would not seem the least bit interesting to them and even if the return were about .06 they would not bother at all. Were there any alternative investments available, he esked. Regraded Unclassified FEDERAL RESERVE BANK 141 OF NEW YORK OFFICE CORRESPONDENCE DATE October 6, 1939, CONFIDENTIAL FILES SUBJECT: TELEPHONE CONVERSATION WITH TO L. W. Knoke BANK OF ENGLAND, FROM 2 I commented on the situation of the commercial bill market and the difficulties we had had for years now in filling orders from abroad. However, I would bear his problem in mind and let him know if there was any change in the situation. Generally speaking, Bolton continued, things were going fairly well with them. The general control was settling down and by the end of this month he was hopeful it would be running along more or less normal lines. They had caught up with arrears, the machine was working fairly well and before long he thought he might be going home again at regular hours. I asked what the reaction had been to Hitler's speech but Bolton replied he had not spoken to anyone. BECEIAED 2333 - nn THE VRURAPRT (sime - 10.00 - wo - - 1 Regraded Unclassified 142 October 6, 1939. MEMORANIUM M TO: Secretary Morgenthau mr FROM: 'Mr. Gaston Navy Intelligence reported to Coast Guard yesterday that they had a call from Federal Communications reporting that they and Hoover's F.B.I. had been asked jointly to supervise (that is, to listen in and report on) radio communications. F.C.C. had no idea how to go about it and asked for advice. Navy told F.C.C. that Coast Guard was doing most of the supervision of ship communications and other trans-Atlantic radio information of in- terest and the Navy was working closely with Coast Guard. They didn't know just what else was desired but they would be glad to assist in any way possible. We have not up to date had any direct communication from either F.C.C. or F.B.I. Apparently the idea is to have these organizations exercise some supervision over shore stations and land communications, but there appears to be some danger of over-lapping and confusion. 143 October 6, 1939. MEMORANDUM x TO: Secretary Morgenthau VS FROM: Vr. Gaston Coast Guard headquarters at San Juan, Puerto Rico, has reported that three fishermen working out of Arecibo, which is on the north coast, reported that on the morning of October 4th (Wednesday) they saw a submarine which submerged after they had been watching it for four minutes. The position reported was fifty miles west of Arecibo. Coast Guard and Navy are looking into it. San Juan had no informa- tion that a United States submarine was in that vicinity. 144 TREASURY DEPARTMENT X WASHINGTON October 6, 1939. MEMORANDUM FOR MRS. KLOTZ: The following information came to me from the Coast Guard. If you think the Secretary would be interested, please pass it along to him. "Information received by this office from the Commender, San Juan District, indicated that an unknown submarine without lights was seen by three fishermen one mile north of Arecibo Light, Puerto Rico, at 4:30 A. V., October 4th." Buris thanis 145 October 6, 1939. MEMORANDUM non *X TO: Secretary Morgenthau FROM: Mr. Gaston The Army recently took away at higher pay a very able young man who was one of our three civilian cryptographers in Coast Guard Intelligence. We have in addition two Coast Guard officers at headquarters here who Waesche tells me are very good and whom the Army can not take. We have another, Lieutenant Jones, whom Waesche considers at least the equal of Mrs. Friedman but who is now on duty as an Intelligencer Officer at San Francisco. If an effort should be made to take any more of our civilians we might have to seek an understanding with Army and Navy. PARAPHRASE OF TELEGRAM RECEIVED FROM: American Embassy, Paris NO.: 2357 DATE: October 6, 1939, 5 p.m. FOR THE TREASURY Last night we were told by Reynaud that gold in the amount of 1,500,000,000 france was gained by France during September. This amount was gained principally out of repatriated capital. He added that he had expended france 800,000,000/of this amount on contracts in the United States for the purchase of airplanes. With the exception of rentes which made moderate gains partly on continued strength of the franc in New York, the market today was hesitant on profit taking though the undertone was firm. Coal mining issues were fairly strong. Hitler's Reichstag speech had little effect market-wise though its purport was not fully known till after the close. A certain amount of repatriated French capital 1a finding its way into investment channels notably short term government issues and others of high liquidity. The belga was weaker today, being quoted at 730 and 736 as against 734 and 740 yesterday. Other foreign exchange rates were unchanged. BULLITT EA: EB K.P. chen Oct6.1939 147 PRIVATE & CONFIDENTIAL Type Number Name Bomber 18 Vultee 2,700 mile range, 1,100 lbs. of bombs Bomber 4 Northrop Pursuit 35 Hawks III Pursuit 10 Hawks I Pursuit 16 Hawk 75 Pursuit 15 Derwotine Pursuit 10 Howkess Trainer 35 North America Trainer 75 Various kinds 148 GROUP MEETING October 6, 1939. 9:30 a.m. Present: Mr. Hanes Mr. Cotton Mr. Thompson Mr. Gaston Mr. Riefler Mr. Viner Mr. Harris Mr. Duffield Mr. Bell Mr. White Mr. Cochran Mr. Foley Mrs Klotz H.M.Jr: Gene, I don't know whether it is proper or not, but I have taken a great interest in this malaria control thing in China. If the Public Health people would have no objection, we might say some- thing about my interest in this matter. You like to write things. This is typical. "If the average yield on Treasury bills in a month has risen from five percent to fourteen percent. # But he forgets that they have gone back to .035. They run the thing up, but they forget to mention that they have gone down again. I would just write him 8. polite letter calling him a liar. Johnny, I want you to hang on to this (handing docu- mont to Mr. Hanes). You insist on seeing me until we clear it, will you? Hanes: All right. H.M.Jr: See what I mean? Hanes: Sure. S.M.Jr: And this Wellington Koo thing came in. Did that come from the State Department? Cochran: Yes, sir, we made & copy because we had only one copy. H.M.Jr: Bullitt is trying to help us get some money. 149 - 2 - We have an addition to our 9:30 group, Mr. Cotton, who is Ambassador extraordinary, plenipotentiary, et cetera, on second floor left, and in that capacity I thought he had better sit here and hear what is going on. He would be more useful to the six gentle- men downstairs and to Mr. Hanes and me on this side. He ought to have his weight taken this morning and then see what he weighs a week from now. Those flowers are from this very nice Mr. Shewmaker, who is retiring after thirty years' service and he grows those in his back yard. Bell: Aren't they beautiful? H.M.Jr: Aren't they marvelous? Have you got anything, John? Hanes: No. I had a conference with Chen yesterday. It 1s taking me B. little longer than I thought. I will see him again today and get through with it just as soon as I can. H.M.Jr: If I could have some of those maps to read over the week-end, I would like to have them. Hanes: The data he left here 1s very interesting. It is amazing what that corporation has done. Whether that is getting ready for a big touch or not, I don't know. H.M.Jr: If you will give it to Mrs. Klotz, I will take it home tonight. You saw the stories in the papers this morning, didn't you? Hanes: No, I haven't seen the papers. H.M.Jr: About the American boat and the Germans? Hanes: Oh yes, I saw that last night. Gaston: Are you interested in over-night news on the Iroquois? H.M.Jr: Very much 80. 150 - 3 - laston: Pollio called me at 11:00 last night to tell me that the Maritime Commission had called him earlier and said that the master of the Iroquois reported he WAS changing his course to go to the Azores and they asked the distance to the Azores and the distance to St. Johns, New Brunswick. He calculated the distance roughly as 725 miles south to the Azores and H.M.Jr: Do you mind, for the sake of Mr. Viner and myself - St. Johns is in Newfoundland? Gaston: Yes. Did I say New Brunswick? H.M.Jr:- You said New Brunswick. We know. Caston: Right. They were about 725 miles north of the Azores and about 1,000 miles east of Newfoundland. They asked Pollio's advice and he told them that he would give the master his discretion, but nevertheless they called him back & short time later and told him that they had given the master of the Iroquois flat orders to continue on his course westward and to establish radio contact with the destroyers who were going to meet him. H.M.Jr: Who gave him those orders? Jaston: Maritime Commission. I hope they contact the Navy. H.M.Jr: We didn't give them? Gaston: We did not give those orders. Pollio's advice was to the contrary, he would let the captain use his judgment. The Ingham and the Thomas came through the canal Wednesday and the Navy asked permission to use them in a. search for a belligerent craft 200 miles west of the canal and they have been ordered to go on that mission for the Navy and report when they get through with it. That is two of the big cutters. The Hamilton 1s at Norfolk and it 1s reporting to the Navy tomorrow and probably will sail for the Atlantic patrol Monday. H.M.Jr: In your 30 million dollar budget, did you ask for any more big cutters? Gaston: Yes. 151 - 4 - H.M.Jr: How many? Gaston: Three. H.M.Jr: Why didn't you ask for six then you might get three. Viner: And make them bigger, please. Gaston: Bigger cushions you want, pad them on the side? Viner: Yes. Onston: All right, we will ask for nine. H.M.Jr: How long does it take to complete a cutter? Gaston: Oh, it will take a year and a half. H.M.Jr: Can you do it in that time? Jaston: Yes. They would launch it in about a year and I should think on B. rush order they would get it down in 8. little over 8. year, but it would normally be two years. H.M.Jr: When would that mean completion? Caston: What date in March will we get the appropriation? We will get them in September or October or November of 1941. H.M.Jr: Are you still interested, Viner? Viner: I am thinking of my successor. H.M.Jr: I just wanted to have it clear. Gaston: Of course, that depends on how much construction the Navy has and the U.S. Lines. Harris: U. S. Lines ordered four new ships yesterday, I will have you know. Hanes: What are they going to do with them? Harris: I don't know. 152 - 5 - Viner: Not carry freight. Hanes: Not carry anything. Gaston: There is going to be an appropriation for not carrying freight, too. H.M.Jr: Anything else? Gaston: No. H.M.Jr: Gene? Duffield: Nothing. H.M.Jr: You had better be here at 10:15, Gene. Ed? Foley: Gene asked me last night whether Mrs. Banister was subject to the Hatch Act, and I have given him an opinion. H.M.Jr: Mrs. Banister? Foley: Yes. She is Assistant Treasurer of the United States. She is appointed by the President and confirmed by the Senate. H.M.Jr: Doesn't that come under Johnny Hanes? Duffield: What I was really worried about was my coming under the Hatch Act by writing a speech for her. Gaston: It is a very non-political speech, it 1s educational, isn't it? Duffield: Very much so. Foley: It is before a Women's Democratic organization out in Missouri. The only reason I am bringing it up, Mr. Secretary, is because it might have some bearing on the Governor Ross matter that you referred to Harold Graves, where she went directly to the Attorney General and Kemp over there said she was subject to the Hatch Act. 253 - 6 - B.M.Jr: Let Harold know. Danny Bell claims the Treasury. Let him know. Foley: I will give him a copy. 1.2.Jp: Why don't I just appoint B. committee of Hanes, Gaston, and Foley to pass on these questions of the Hatch Act, see? When you are stumped, come and see papa. If you are not, I won't bother about it. Hanes, Caston, and Foley, you fellows pass on them. All right? Twies: Fine. Ed can handle public relations for you - I mean Gene can. Anything else? Poleyt You have a letter from Jerome I. Ziegler, who is counsel for Hecht bringing that action against Universal Corporation. He wants to take your deposi- tion in regard to your conversations with the Chinese Ambassador here and your telephone call from Paris to Wellington Koo and others. I would like to talk to you about it sometime if you have & few minutes. H.R.Jr: I have never done that since I have been in the Treasury. Why should I do that? I have never done that since I have been here. Poley: Well, an effective deposition or interrogatory now, if your want to do it, might kill off that suit against Universal. These fellows might drop the suit after that. I think that from what you have told me before that your answers to these questions certainly wouldn't be helpful to their contention. H.W.Jr: I have never permitted myself to be sued as an Indi- vidual. Voloy: This isn't that, Mr. Secretary. This would be simply taking your deposition and what we - you are not subject to the jurisdiction of the New York court down here and it would be entirely voluntary on your part. What we could ask is that they frame the interrogatories, put them in writing, and send them to us and then I can look them over and decide whether I think you ought to answer them. 154 - 7 - H.M.Jr: All right, you 80 that far. Foley: I have a little memorandum here on this smuggling act which you mentioned on the telephone. H.M.Jr: Did the President get out an Executive Order? Foley: We have had three orders under the Act providing for Customs enforcement areas on the Atlantic Coast from the Canadian border down to about as far as Atlantic City. Those orders are still in effect. H.M.Jr: What is the French thing? Foley: Well, that is an article by a law professor at Cornell which has been reprinted in French and he comments on the Act and also on your testimony before the Committee when the Act was under con- sideration. H.M.Jr: Well, give me another copy of that. Foley: You want another copy for your files? H.M.Jr: For the house. Foley: Yes, sir. H.M.Jr: Don't you think it would be nice to send Mr. Hull a copy? Foley: Yes. H.M.Jr: O. K. Foley: Yes. Cochran: Sterling is bid at 4.03 7/8ths this morning. H.M.Jr: How are things downstairs? Cotton: All right, I think. H.M.Jr: Was that mission over to Interior all right? Viner: They told us that Standard 011 had the information. 155 - 8 - H.M.Jr: They didn't? White: They had nothing. They had nothing and they didn't know very much. We talked desultory matters for about half en hour and then he finally ended up with & suggestion that he thought we could get the information we wanted from the best source and the source he would go to if he had 8. task of that kind were Socony and Standard 011 of New Jersey and he suggested the names of three men in both organizations who would, he felt, be right on top of the situation. H.M.Jr: Well, did they take any offense at our doing this? White: Oh no, and it is arranged so that we can contact Mr. Fry, who is under Mr. Holland, who appears to know a little more about it than the others, or at least they didn't recommend any others who would know very much. They claimed that they were concerned almost entirely with the domestic oil situation and not the foreign. h.M.Jr: Well, is that particular economist over there? White: Well, they didn't think we would gain very much by getting in touch with him. H.M.Jr: Then we can disregard that crowd? Viner: I think so, except that we may ask them EL technical question or two on petroleum just to make them feel that we are using them. H.M.Jr: Well, if you two gentlemen, Viner and White, will be here at 11:00, please. Win? Riefler: Nothing. H.M.Jr: Jake? Viner: I had a visit yesterday from Mr. Kintner and he seems to be breeding B. story based on information from you and from other high officials of the Treasury which would be a very painful one to 156 - 9 - me if it came out that way. He says you told him that you have made an assignment to us and the same assignment to White - you expected us to prepare separate studies and then afterwards to fight it out between the two of us. White: I am glad you think it would be painful to you. H.M.Jr: We didn't hear you up at this end, What did White say? White: I said I am glad he thinks it would be painful to him. Viner: What I tried to persuade Kintner is that I don't wait that long to fight Harry. H.M.Jr: Gene, tell Bob Kintner that I was talking very much off the record and that he will please forget that. Viner: You see, he went on to picture us 88 your new crew, as being lined up, and he mentioned also some names on the other side as if there were two battle lines, and so forth. I think that would just ruin us here and there is no basis for 1t. Certainly any of us are not in that battling spirit and White: Why didn't you tell that to Kintner? Viner: I did tell him and he didn't believe me. H.M.Jr: He was in here and we were gossiping and he told me that some other group was working on a peace- time basis, were we doing anything, and I said yes. In an off moment, they said, "Who 1a working on 1t,' and I said, "We have two groups working on it." Viner: And he took that to mean that - I don't know how he lined Harry up where he did.... White: Where did he line me up? Viner: He said you were one of the New Dealers Gaston: What are you, the House of Morgan? 157 - 10 - Vinor: I am the House of Morgan and Win 1a even worse. H.M.Jr: What 1s worse than the House of Morgan? Viner: And Taylor 1s Ogden Mills' - I mean Walter Stewart, he said, was Ogden Mills' most relied upon advisor. White: He saw me about noon. Viner: He had B. lot of this foolish stuff and believed in it and said he had gotten it from Treasury people. H.M.Jr: He got it from the fact that I said what I did. Viner: No, he said he talked to others too. White: He talked to me, but he didn't get that. I would have given him something better if I had given him anything. H.M.Jr: Well, I am responsible for the story starting, any- way. Fortunately for me, I always have somebody present. See what you can do. Diffield: I will try. H.M.Jr: All right? Viner: I meant to tell him - I told him I expected columnists to be liars 30 that even if I denied it, I still ex- pected to find it in the column. White: I don't think you will be disappointed. He was too gleeful over his story. Gaston: They have good reason for printing what 1s denied. H.M.Jr: Well, Gene and I slip once B. day. Viner: I was 8. little afraid that the story might be blamed on me, H.M.Jr: No, it is my slip. I was proud of the fact that we were working on peace possibilities. George? Haas: I am preparing a report on that.... 158 - 11 - H.N.Jr: Give us three minutes on 1t, George. Heas: Want me to talk about it now? H.M.Jr: Yes. Heas: The Secretary asked me to attend the meeting of the Atlantic States Shippers Advisory Board. One of the items on their program was to discuss the railway equipment needs. I found that the group up there were divided in somewhat of three d1f- ferent sections. The shippers are obviously appre- hensive of railway equipment shortage and orders are being inflated and the railroads have cautioned them against that. Thirteen railroads reported there and each railroad said that they were able to handle the business. Some of them said that from now on they would need BL lot of cooperation from the shippers. Each one asserted rather firmly that there was nothing to fear. At the same time, they listed their orders for new equipment. They say they are not apprehensive, but at the same time they are ordering large volumes of new equip- ment. The railway association has headquarters in Washing- ton. Their reports are very similar to the indi- vidual railroads but they took an over-all picture and they claim that there was a good deal of hysteria in regard to railway equipment shortage which would result in shortage. There is one situation which actually - there is actually some shortage existing now in some areas and that is in connection with coal cars. The coal that came from Great Britain stopped immediately. It was going to Canada and the United States. Now, it is coming from coal areas in the United States and the cars that go to Canada, for example, are gone A month. They made an estimate for this area of the carloadings and their estimate is some 14 percent above a year ago. There was one report on the financial and economic condition. You might be interested in the financial report. This financial discussion concerned itself with interest rates in the bond market, and so on. He told the people when they see the bond prices moving rapidly down that they should keep their mind on the fundamentals and that is all for easy 159 - 12 - money, that under certain conditions bond prices might move in any direction. He was rather bullish on bond prices and on the general business situ- ation he cautioned them as to inventory accumula- tion, but he expected in the next six months that business would go up, mainly for the reason that once you get a turn in business it lasts at least that long. H.M.Jr: Who is "he"? Haas: He was an official of some New Jersey bank, I have forgotten where it was. He did B. fairly good job in sizing the thing up. R.M.Jr: George, on Monday at 12:00 o'clock have it ready for me and Mr. Hanes and a one-page summary. Haas: You want one page plus a more detailed report? H.M.Jr: Yes. Haas: It turned out to be a much more interesting meeting than I anticipated. H.M.Jr: If there are any other lines on any other company, I wish you would send George up there (to Mr. Hanes). Will you be back here at 10:15, George? Haas: Yes. Harris: The State Department asked one of their men to talk with me day before yesterday about an approach which had been made to them by the Swedes. The Swedes had come to see them and said that the British had informally demanded that they submit to them & manifest of all their cargoes to neutral countries and to Sweden before the ships sailed and wanted to know how we felt about that, because it had been quite informally approached by the British through our own State Department, so I thought that was a pretty wise subject and called the Commerce Depart- ment and the Maritime Commission and other parties that I thought would be interested and we went into a huddle with the State Department men. This is a very broad question and one which arose in the last war. It was compromised then by something CO - 13 - that was known as the Skinner Plan, whereby instead of submitting your manifest to the British - and in this case I think you would have to submit your manifest not only to the British but the French and the Germans 8.8 well - you got permission from the Embassy before you could ship any cargo. You perhaps know what that is about. We just discussed this thing pro and con all over the lot and then we thought that this thing was so dovetailed with the ques- tion of cooperating with the domestic railways here to prevent a congestion at seaboard, In other words, if a great deal of cargo is going to be refused and put on a more or less black- list, then it ought not to be allowed to move from the interior plants because otherwise you are going to get the same congestion at the sea- board, so we are now trying to locate the group that are working on that and we are going to have another meeting on Monday or Tuesday and we will continue that work. R.M.Jr: Will you talk to George and see that anything that he learned up there about piling up at the seaboard - if there is anything in that? Haas: There was something. Hanes: Kelly told us last week that he was working on a plan to stop that. Harris: That subject, I think, has been very closely gone into by that Army and Navy Munitions Board. Jaston: It would all be out the window, wouldn't it, so far as the manifests are concerned if the cash- and-carry act were passed? IL.M.Jr: Don't count on the Army and Navy Munitions Board. There are two Boards. The one that 18 going to continue to function is the Joint Munitions Board. Marris: That is the one I referred to, H.M.Jr: Is that the one you referred to? Harris: That is the one I meant. Maybe I have called it by the wrong name. 161 - 14 - H.M.Jr: There are no civilians on this at all. Harris: That is correct. H.M.Jr: There are no civilians on the Board I am talking about, Harris: That is right. It is headed up by the Assistant Secretary of War, H.M.Jr: No. Hanes: This is State, Treasury H.M.Jr: Excuse me. This is the one they don't know about. This is the one - the personnel of the Joint Munitions Board is the only Army and Navy Board that is not under the Joint Board and this is not responsible to the Assistant Secretary of War or the Assistant Secretary of Navy, but 1a responsible to the President. I wanted to get this thing straight, 880. Do I make myself clear? Harris: Yes. H.M.Jr: There, are two Boards and this is the only Board which 1a not under the Joint Board and this is the Board which I believe will do the functioning, and there are no civilians on this Board. Harris: Well, this matter 18 something that is going to become very serious, especially if the present legislation goes through and American ships are tied up. Then this thing has got to function immediately. Otherwise, you are going to get the most terrible congestion at seaboard. H.M.Jr: I am going to let you Harris: Would you like me to continue the way I am going on this? H.M.Jr: I am going to let you read this memorandum and you can see what this Board is and maybe after reading it you ought to contact this Board. I think you will find this is the Board, until we get in a war, that is going to do business, see, 162 - 15 - Harris: Yes. H.M.Jr: And if you haven't made a contact - after Johnny is through I will let you read this memorandum. I think this is the one that is going to do the operating. I think the other one is definitely out of the window. Harris: Now, you sent me a memorandum H.M.Jr: Will you show that to Harris? Hanes: Was that Joint Munitions Board set up by act of Congress? H.M.Jr: Yes. Hanes: In what year? Bell: I think it came out of the National Defense Act. llanes: 1925? Bell: Something like that. H.M.Jr: But, in the room, I believe it 1s fairly obvious that the President 18 going to use this group. You might just as well get in touch with them. Harris: Now, you sent me a memorandum or letter from Mr. Hull about those two ships. He 1s correct in his letter, there is no question about that. I have drawn you B. memorandum there. But the moment it became known that the State Department was interested in the thing, then it quickly rectified itself of its own weight, ao that what he says there 1s correct, but the fact that he made some inquiries, it automatically corrected the position, which was what I wanted to happen. H.M.Jr: Then it is 0. K.? Harris: It is all through, yes. H.M.Jr: After you have read that, will you give it back? Basil, I would do it through General Watson. 183 - 16 - Harris: Yes, sir. H.M.Jr: O. K.? Harris: 0. K. E.M.Jr: Harry? White: There are two matters. They relate to the ques- tion of export controls over scrap iron and other materials, which was on the sub-committee report to the Executive Committee on Commercial Policy in that they would develop some information, which you may or may not know. There 1a a rise in the price of iron and steel and the increased output which is expected to reach, I think, 83 percent this week and probably 90 within two weeks. It is not due to foreign orders. They have no addi- tional foreign orders, according to this report. It is due to the domestic situation. The recom- mendation here is that nothing be done to attempt to get any legislation that might provide for restriction on exports yet, and no legal power exists with which it can be done now, so they are just going to watch the situation on the ex- ports of iron and steel scrap. On the question of wool, the recommendation is that this Government confer with the British Government and attempt to arrive at some arrange- ment whereby there will be an allocation of wool for this market. Now, 1f anybody is interested here S.M.Jr: Bob Stevens came in here to see me. He is in the textile business in 8. big way. He said that the Navy wanted 75,000 blankets and could only get 25,000 and that was a 50 percent advance over a month ago. The idea was that the English have wool in Australia and South Africa, more than they can handle, and they need more cotton. We can make a swap. I made the suggestion that if we got possession of this wool, we would handle it the way we did with the WPA. We could keep title to the wool, let the 164 - 17 - manufacturer have it and do what he wants, pay him for the manufacturing, and then assign it to the Army and Navy. I sent him to Wallace and Wallace turned him over to Commodity Credit. I don't know what happened, but unless somebody gets behind it, I don't think anything will happen. Hanes: What happened over there was that Commodity Credit was very much interested in 1t and told him that he would prefer, if he could work it out with the private producers amongst the people in the textile trade, to bring back to him a. program, one which they could pass, and that they would be delighted. I thought it was an excellent 1dea and he left with me a memorandum. I think I will give that to Harry White. It is B. very interesting proposal and incidentally, this Bob Stevens is seeking to do something to help the country. He wants to step out of the picture. He just framed the idea and got it all ready and said 1f somebody in the Government would take it on, he would be glad to turn it over to them and help them in any way possible, but he is not in that business. White: The issue is rather important. It is expected that England will get in, as you know, control of some important commodities, not complete control but sufficient control so that they can influence the world price very substantially and be in an important bargaining position, and the issue is whether they shall do business directly with American businesses here or with groups of such business mon or whether they shall do business with the Government, whether it shall be Government-to-Government or British Government to business men, The feeling is that if it 1s with business men the American business men here will be at & bargaining handicap, whereas with Uovernmont-to-Government there are 80 many other things that enter into the picture that possibly a more equitable arrangement can be achieved through Government-to-Government cooperation. That issue has not yet been decided or discussed much, but it 18 coming up today and I want to know whether you have any definite views on it. No, but I have turned it over to Wallace. Doesn't Wallace have a representative? 185 - 18 - White: He does. Leslie Wheeler. He is very competent. 8,2,Jr: Could you get this memorandum to White? Banes: Yes, right away. White: Are you interested in following the development of this? E.V.Jr: Well, I think if the statements that he made are true - and I am sure that they are - that the English have got more wool than they need and we can get some of it, I think it is too much to ask of any business group to sit down and try to swap wool for cotton. I think the Government has got to do it for them. A bunch of business men only having one piece of the picture, they can't negotiate a thing like that. Whiter It is more than swapping. There are probably more commodities involved, so it is not so much & simple barter as much as adjudicating prices. H.M.Jri If the English are going to pursue the policy of buying large quantities of cotton and strategic war materials, then we have got to sit down and say, "You have got to give us a piece of it." White: Not only strategic war materials, but any important commodities. Harris: The wool association came to me on this matter the other day. They had been to the State Department, the British Ambassador - gosh, they had been kicked all over the place. Hanes: They are in & desperate condition. Harris: Mr. Secretary, I suppose you know England has assessed the entire Australian wool crop. H.M.Jr: And South Africa. Harris: Most of the wool that is brought into this country is Australian. That is the one we are primarily interested in. H.M.Jr: This fellow had it all in a nice package and I sent the whole thing over to Wallace. 106 - 19 - All right, Harry? White: All right. H.M.Jr: I would like to be kept posted on it. If they don't get along very fast, I am going to tell the President about it. Harold, at Cabinet the Assistant Secretary of Navy said that our purchase of 20,000 units of hemp - I don't know what the unit is - in Manila, completely cornered the market and he had had complaints about it. Graves: The War and Navy people yesterday asked Collins to call off that prospective purchase of hemp and he is cancelling it. H.M.Jr: They don't want it? Graves: No. H.M.Jr: Why? Graves: Apparently it is in line with the suggestion that you referred to about cornering the market. But at any rate, he has had & formal request from the two departments to cancel his order for him. H.M.Jr: Anything else? Graves: Nothing. E.M.Jr: Tell Collins to give me a little memorandum on that. Graves: I have asked him to do that. It will be in this morning. Bell: I understand the President has just about turned down the Budget summation for this year. I don't know whether we should interest ourselves in that. I think it ought to come out. H.M.Jr: That is up to Harold Smith. Bell: Well, Treasury is in it too, H.M.Jr: Give me one page on it for Monday. 167 - 20 - Sell: All right. A.M.Jr: Have you got any feelings on it, John? Hanes: No. I was against Danny Bell when he came around and talked to me about it. He says he wants to continue it and I think, too, that if the period has gone six months without the public being apprised of it, I am sympathetic with Danny's feeling about it. Bell: Newspaper men are beginning to speculate on the budget and I think we ought to have something to refer to. H.M.Jr: Give me a page, will you? You are going to stay in here. My advisory economists, I may ask Monday or Tuesday what your opinion is on Government financing, looking forward over some time, I mean what kind of pieces of paper we ought to use. I think we talked about that, Win, same time ago. You have got some ideas, haven't you? Maybe Monday or Tuesday I will ask you. I am putting you on notice. Riefler: I won't be here Monday. I have got a board meeting in New York. I will be here Tuesday morning. H.M.Jr: Is that all right? Riefler: Yes. H.M.Jr: I don't need a written memorandum but maybe Tuesday we might talk a little bit about it, looking forward to what kind of thing we ought to do if the situa- tion abroad gets worse. All right. -FL See Its to President dated 10/10/39 transmitting this information. jee also President's memo of 10/14 October 6, 1939 TO THE SECRETARY: In the President's Budget Message of January, 1935, the President stated in part as follows, under the heading "Better Methode of Fiscal Control: *In order to promote more satisfactory methods of budgetary control in the Govern- ment, I propose this year to insugurate the policy of having a Summation of the Bodget prepared for publication immediately after the Congress has acted on all financial matters. .... Be then went on to say that this summation would exhibit the revenue estimates as revised by the Treasury so as to reflect any changes is the economic situation during the preceding months and aleo any revisions in the tax lave made by the Congress, and m. revision of the estimates of expenditures based upon the appro- priations made by the closing Congress. This summation has been lesued each year beginning with September, 1935. and each year the newspapers look forward to the publication of this revised Budget. In view of the changes made by the last Congress in the appropriations and the recent Executive Orders of the President increasing the military branches of the Government, it is of NOTO interest than ever to the public to have this summation issued. The newspapers are now beginning to sales their own estimates and I think it would be most unfortunate to break the precedent of Lequing the summation as 11 would be such better for all concerned if the newspapers could got their inform- Won on budgetary estimates from BOBS official document rather than publish their own guesses. I hope you will have an opportunity to urge the President to issue the summation at as early a date as practicable, although it should be timed go as not to come during or imediately preceding a. Treasury financing operation. DVB:BLI 189 October 6, 1939 10:15 a.m. Operator: Go ahead. AMJr: Hello. Randolph Burgess: Hello, Henry - this 1s Randolph. HMJr: Oh. B: And there are three of us on this wire. HMJr: Wonderful. 3: George Harrison 18 on one phone and Earle Bailie is on another and I'm on the third. Allan Sproul: And Allan's here listening. B: Allan is sitting on the sidelines and Bob Rouse 18 giving the market a last check and he'll be in again off and on. HMJr: Well, I've got some of my people and we've got the loudspeaker on. B: Well, this 18 quite B. party then. HMJr: Oh, yeah. E: (Chuckles) Well, it's too early to tell very much about the market. HMJr: Uh-huh. B: We've talked with four of the dealers. It all depends on their size-up of this speech but they don't think very much will happen. today. HMJr: Yeah. B: They think in general that the speech 16 -- 18 not much of a peace speech. HMJr: Yes. B: But it remains to be seen how the market interprets it. Regraded Unclassified - 2 170 HMJr: Yeah. in Now we've talked it over here and our -- our feeling 18 that BO far there's -- nothing has happened which would necessarily prevent going ahead next week. HMJr: Yeah. B: Bo our primary feeling 18, the thing to do is to watch this market during the day and to keep our minds open until Monday morning. HMJr: Well, that's easy. B: That doesn't strain any of us. HMJr: No, no -- but George Kerrison: My feeling, Henry, is that you ought to do it if you can and you won't know definitely until Monday morn- ing whether you should. HMJr: Yeah. H: I think that almost -- under almost any circumstances you will be able to do it certainly at a rate. HMJr: Yeah. H: But you don't want to do it at an unreasonable rate, I understand. HMJr: Yeah. à From your standpoint. However, unless something very develops, I should think by Monday you would be free to go ahead and better fix your rate than you could fix it this morning. HMJr: Well, has anybody there given you a rate on a five- year note? Randolph Burgees: Well they haven't talked five years very much because I think, frankly, their feeling is that the five- year market is B. little thin and our feeling 16 that we ought to play absolutely safe and do something a little shorter than that. And the two -- the two 171 - 3 - things that we think most about would be a June 142 - which 18 Just short of three years, which would be one per cent HMJr: Yeah. B: Or a March 143 - which is three and half years, that would be one and a quarter. They'd both be worth about par and seven-eighths without giving any extra interest. We think it's better not to give the extra interest on the whole because it -- it's simpler not to and looks stronger. HMJr: Well, our boys here have figured a four-year note with a one and three-eighths coupon, which would sell at a one and a quarter premium, and they figure the five-year note exactly the same. George Harrison: Say that again, will you, Henry. I didn't HMJr: A one and three-eighths per cent H: Yeah. Randolph Burgess: Yeah. HMJr: four-year note or five-year note would sell in both cases at one and a quarter points premium. B: Yeah; well, that's right. That's right. A four-year one and three-eighths 18 not impossible. We figured it would be playing a little safer to do a -- a three and a half. HMJr: But they say both the -- both the four-year note and the five-year note with a one and three-eighths coupon that they both would sell at one and a quarter points premium. B: Well, they would theoretically, Henry. Actually, the five-year note would be a good deal chancier. It would be taking a good deal more of a chance. HMJr: Well B: Because that market is better. - 4 - 172 HMJr: Ah Earle Bailie: The impression I get, Henry, 18 that the market would be very enthusiastic about a three or a three and a half -- would like it, and we'd have good feelings on our issue. If we went to a five there'd be a question in my own mind -- not that we wouldn't get subscriptions, but that we wouldn't get that push that we hope to get out of the issue for the whole market. HMJr: Yeah. Well B: Now that may not be true Monday. HMJr: Yes. Well, my own -- will you fellows Just hold on a minute? B: Yeah. HMJr: Deal around a -- deal out one deal of cards while I'm talking, will you? Just hold on a minute. B: You bet. (Brief pause.) HMJr: Hello. B: Yes, Henry. HMJr: At this end we feel that there should be no hints to the market of any kind that there may be some- thing coming Monday or Tuesday. B: Oh, that's right - yes. HMJr: Because B: We have avoided that very carefully. HMJr: While our minds are open they are sufficiently un- decided that we don't feel there should be any hints B: Yeah. 173 - 5 - HMJr: that there's anything coming. B: We agree completely on that, Henry. HMJr: Well, then on that basis let's see what happens today and tomorrow. B: That's right. HKJr: And when will we talk about it again? B: Well how about one o'clock or HMJr: No. B: two o'clock? HMJr: No, Dan thought tomorrow. B: Oh, tomorrow? HMJr: Oh -- you mean today? B: Ah -- well, I was going up to Providence this after- noon, Henry. HMJr: What time does your train go? B: Three o'clock. HMJr: No, that doesn't fit in my schedule so B: Well why don't you let Allan talk to you, or George here? HMJr: That's all right. B: We will have been talking with them, you see. HMJr: That's all right. B: When would be the best time? HMJr: Well, I'd say four o'clook. B: Four o'clock? That's fine. HMJr: Four o'clock. 174 - 6 - B: And I will have talked to them Just before I go, HiJr: Right. B: Yeah. HMJr: And then they could B: They'll be in contact with Allan, you see, and they can talk. HMJr: Yeah, but do they -- they'll know better at four o'clock where we're at. B: That's right, yes. HMJr: What? B: Yeah. Earle Bailie: You've seen the -- you've seen the market openings, Henry; that steel stocks are up as much as five points so that what you've got here 1s an atmosphere in which probably Government bonds won't have B terribly good day. I mean, if the HMJr: They will -- they will or will not? B: They will probably not have 8. terribly good day. HMJr: Well, if they B: We all think that 18 going to hit down into the note market -- I mean HMJr: Well B: in the place we're talking. HMJr: I'm not going to be bold enough to make any forecasts. I say, I'm not going to be bold enough but B: Right. 175 - 7 - HMJr: ...... -- but on the past two or three weeks the Government bond market would sell off today. B: That's right. I think you're going to be right. HMJr: And then we never know what George Harrison's little pal over -- down on Constitution Avenue will do. B: (Laughs) He's not listening BO he can't hoot at that. HMJr: I see. B: (Laughs) We'll tell him about it. (Hearty laughter) Allan's on the other telephone now. HMJr: Oh, George -- I -- 18 George there? B: Yes, George is right here. HMJr: Was that all wasted? B: That was all wasted. I got it. I'll relay it to him. But we'll all tell him. (Hearty laughter) HMJr: All right. All right. I don't know what they use out -- in the way of out in Utah, but we don't seem to have been a ble to have discovered one that holds here in Washington. B: (Laughs.) HMJr: All right? B: Very good, Henry. HMJr: And if I see that in Kintner and Alsop's column I'll know who to blame. B: (Hearty laughter) Kintner and Alsop - 8 - 176 HMJr: All right. B: (More laughter) HMJr: Goodbye boys. B; Goodbye. 177 October 6, 1939 4:07 p.m. HMJr: Hello. Operator: Mr. Harrison. Go ahead. HMJr: Hello. George Harrison: Hello, Henry? HMJr: Yeah, what have you fellows got to give me now? H: Well, we had a pretty good day here, as a matter of fact, and I think it looks much more encouraging for next week. HMJr: Uh-huh. H: They dropped off ten to twelve thirty-seconds then recovered about half the loss and ended up from unchanged to five thirty-seconds lower than last night. HMJr: Yeah. H: And considering everything I think that's pretty satisfactory. HMJr: Yeah. H: But I think the thing we better do 18 to look at it as -- as late as you can Monday and decide what -- whether you think the rate situation war- rants your going ahead, as I think it will. HMJr: Well, after talking with Bell later on during -- after I got through this morning, he said the understanding was that we really shouldn't try to decide anything until noon Monday. H: Until noon Monday? HMJr: Yeah. H: That's right. That's what we all feel. HMJr: Well, then why not let's - 2 - 178 H: Sure, what I think we ought to do 18 just forget about it until noon Monday and then have a hookup if you want to. HMJr: Right. Let's say about a quarter of twelve Monday. H: Well, we'll call you a quarter of twelve Monday and we'll have all the dope then and make any suggestions that we -- we've got at the time. HMJr: O. K. H: First-rate. HMJr: Thank you. H: Goodbye. HMJr: Goodbye. TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE October 6, 1939. TO Secretary Morgenthm FROM Mr. Cochrau Reference is made to the file of cablegrams in regard to the opening of an account for the Bank of Brasil as fiscal agent of the Brazilian Government, and also to Mr. Bernstein's memorandum in regard to his con- versation of last night with the Federal Reserve Bank lawyers. After Mr. Bernstein's conversation of yesterday evening. Mr. Knoke spoke with M. It was agreed between us that the Federal Reserve Bank should, as of that date, receive the $3,000,000 from the New York banks and purchase gold there- with from the Stabilization Fund to hold under earmark, as fiscal agent of the United States Treasury. for the Bank of Brasil, 83 fiscal agent of the Brazilian Government. In our conversations earlier in the day. I had favored the idea of this being & straight Central Bank account, but I had yielded to Mr. Knoke, when Mr. Knoke explained that the Federal had no Central Bank ac- count from the Bank of Brazil itself and that a delay of several days would be entailed in seeking approval from the directors of his own bank and from the Board in Washington for the opening of such an account. Mr. Enoke BB- sured me, however, in our final conversation yesterday evening. that his bank, after opening the account yesterday in the manner above designated, would take the initiative in seeking approval for the opening of & straight bank to bank account, to which the above described gold could be transferred. During the day I had talked with Messrs. Foley, Bernstein and Bailie about the problem, and had mentioned to the Secretary about 4 P.M. that we had up. & question as to the Brasilian account. The Secretary had told DO to go ahoad and settle it. I informed Mr. Bailie of this, just before Mr. Baille left for New York. I thought the matter was thus aettled until this noon, when I went to see Measre. Foley and Bernstein in regard to the questions raised by Leroy- Beauliqu in regard to a French account with the Federal in New York, the French Attache being at that time with Secretary Morgenthau. While discussing this question, Mr. Foley let ne know that Mr. Bailie had telephoned him from the Federal Reserve Bank in New York and had suggested that a moreage be sent Brasil asking clarification of the status of the Bank of Brazil, as fiscal agent of the Brazilian Government, and also relieving the Federal Reserve Bank of New York from taking the initiative with the Bank of Brazil in the setablishment of 8 straight bank to bank account. Late this afternoon Messrs. Foley and Bernetein called me to their office and showed ne the draft of the cablegram which they proposed be sent to our Ambassador at Rio de Janeiro in the premises. In view of the change which had developed, I did not feel free to clear such & message, and it was agreed that we should see the Secretary. Ee received us for a moment at 5 P.M. but asked that the matter be postponed and that we all get together. CONFIDENTIAL - 2 - 180 together with Mr. White, and come to an agreement before discussing the matter with him further. There are two or three questions in my mind. (1) Is any further clarification of the status of the Bank of Brasil as fiscal agent of the Brasilian Government actually necessary? In their con- versations with New York, Messrs. Foley and Bernstein seemed satisfied with the wording as actually received in the cablegram from our Ambassador at Rio de Janeiro. If the Federal Reserve Bank of New York is not willing to take the initiative with the Bank of Brazil in the opening of a bank to bank account, should the Treasury Department take such initiative? If this is done by the Treasury Department, the message should be more detailed than that comprising the second paragraph of the draft cablegram prepared today. I called Mr.Knoke at 5:30 P.M. this evening and mentioned the Brazilian matter, since I had promised to clear with him before any message to Brazil went out. He had not seen the draft discussed by the lawyers and preferred to postpone discussion of the question. BWK. CONFIDENTIAL _E1 KEMORANDUM To: Secretary Morgenthan October 6, 1939. From Mr. Cochran Mr. Knoke telephoned me at 5 P.M. on October 2. Be said that Lercy-Beaulieu had just come in and wanted to know the procedure in regard to opening en account with the Federal Reserve Bank of Now York as fiscal agent of the Treasury. Governor Harrison had received him in Knoice's presence. Leroy-Besulieu wanted to know particularly about the publicity to which the account might be subject. Ee had been told that the Federal Reserve Bank itself would not give out anything. Knoke thought that what Leroy-Beaulieu had particularly in mind was the question 88 to possible attachment of the account. It had been suggested to Leroy- Beaulieu that the Treasury lawyers could help clear this matter. Mr. Leroy-Besulisu was received today alone by Secretary Morgenthau at 11:45. The spoointment had originally been for 10:30, but Leroy- Beaulleu was delayed by a foggy airplane trip. Before he saw the Secretary be told me of the questions with respect to publicity which had not been settled in his recent conversations with Governor Harrison and other officials of the Federal Reserve Bank at New York. He told me what these questions were and I discussed them with Messre. Foley and Bernstein while Leroy-Beaulieu was in with the Secretary. When he came out, I told him what the legal advisore had given me on the subject and Leroy- Besulieu said their answers corresponded with those of the Secretary, namely: 1. That the Treasury is not under any obligation auto- matically to give publicity to any account that might be opened by the Government of France with the Federal Reserve Bank of New York as fiscal agent of the United States. 2. That Congress would be more disposed to refrain from investigating the accounts of a foreign government if they were held in such a manner that they could be inspected by the Federal officials than if they were in private or commercial banks and 3. That if Congress should make an inquiry in the premises, the Treasury would have a claim to immunity. for the fiscal agency account, on the grounds of public interest, arising from international relations, which private banks could not advance. At the same time, there was the pos- nibility of political pressure becoming strong enough to force revelations. ONFIDENTIAL Smil Regraded Unclassified MEMORANDUM 182 To: Secretary Morgenthau October 6. 1939. From: Mr. Cochran Mr. Knoks and I have talked together several times in the past two weeks upon the question which Mr. Pincent, Financial Counselor of the British Imbassy, in connection with receiving the rate of 4.02 for official and personal checks of British diplomatic and consular officials and employees in the United States. Last week I provided Knoke with a copy of a memorandum, with enclosures, drawn up by Mr. Havens in the Department of State, explaining the eyatem used in the American Foreign Service for compensating losses by ex- change. Mr. Knoke desired this to assist him in answering the inquiry from the Bank of England of September 28, which is attached hereto. This morning Knoke stated that he had talked by telephone with Mr. Bolton, of the Bank of England, and it had been agreed that Mr. Knoke would reply to the above mentioned cablegram by letter. The point was made that there WAS no urgency in this matter, since the open market rate for sterling has already passed the official rate of 4.02. Testerday evening Mr. Pinsent telephoned me at six o'clock to inform me that Sir James Rae and Colonel Greenly, the two principal members of the British Purchasing Commission, are due to arrive in Washington next week from Canada, and that they would like to pay their respects to Secretary Morgenthan. The most convenient time would be on Tuesday afternoon or Wednesday morning. They were to meet Under- secretary Hanes at the British Embassy on Wednesday afternoon. This morning I mentioned this matter to Secretary Morgenthau and he fixed the appointment for three P.M. next Tuesday. At three o'clock this afternoon I was able to reach Mr. Pincent and informed him of the hour arranged for the meeting. At this time I told Mr. Pineent of my latest conversation with Mr. Knoke, and he vas evidently quite satis- fied that Mr. Enoke was reporting by mail to Mr. Bolton in regard to possibilities of assisting in the premises. CONFIDENTIAL TREASURY DEPARTMENT INTER OFFICE COMMUNICATION All 183 DATE October 6, 1939. TO Secretary Morgenthan FROM Mr. Cochran The foreign exchange market vas quiet with trading in sterling in small amounts. Sterling opened at 4.03-7/8, and shortly thereafter rose to 4.04, the high for the day. During the late part of the morning the rate moved in an erratic manner, reaching a low of 4.02, and in the early afternoon re- covered to 4.02-3/4. The closing quotation was 4.02-1/2. The lower rate for sterling probably results from the fect that the British Control sold exchange at 4.04 yesterday, which would lead to the belief that it did not intend that the open market rate should be above the official rate. The discount on the Canadian dollar widened during the past week. On September 29th, the Conadien dollar was quoted in the open market at 9-7/8% discount and closed today at 11-3/45 discount. The softness in the rate is due to some extent to the fact that Canadian dividend checke in small amounts are being offered in the open market rather than to the Canadian Exchange Control. While these amounts are individually small, in the aggregate they are large enough to keep the rate for the Canadian dollar under some pressure. Another reason for the softness of the rate is that Americans have a considerable amount of Canadian dollar balances which they fear may not be purchased by the Canadian Control at the official rate of 10% discount and that if such is the case these balances will eventually be sold in the open market. Reporting banks in New York and the Federal Reserve Bank reported sales totaling 1495,000, from the following sources: Commercial concerns I 138,000 Foreign banks (Far East, Europe and South America) 1 307,000 Fed. Res. Bk. (150,000 for Sweden) 1 50,000 Total I 495,000 Purchases of sterling amounted to 1390,000, as indicated below: By commercial concerns 1 172,000 By foreign banks (Far Bast and Europe) 6 218,000 Total 390,000 CONFIDENTIAL E4 - 2 She following banks sold to us gold from their earmarked accounts in the esounts indicated: National Bank of Belgium $ 2,570,000 Bank of the Republic, Columbia $ 700,000 Total 3,270,000 Gold shipments valued at $86,000 from England and $28,000 from Canada, bothconsigned to the National City Bank of New York, were reported. We made one purchase of silver today, amounting to 50,000 ounces, in the Sev York Market under the Silver Purchase Act. By telephone today, Bolton of the Bank of England, inquired of Knoke of the Federal Reserve Bank of New York, 8.8 to the present yield on Treasury bills. Bolton seemed interested in investing some of their dollars in such bills, if the yield made this worth while. When informed of the current yield, Bolton showed no inclination to make any purchases. In this connection I anked Knoke if the Governor of the Central Bank of Sweden had not withdrawn some of his dollar balances from the Federal Reserve Bank recently to invest through commercial banks in New York, Enolos thought this must be the case. He remarked that nome of the commercial banks had obtained Treasury bills on tenders at rates which made it possible for them to offer some attraction to foreign central banks. He remarked that, unfortunately, the Federal Reserve Bank was not itself permitted to make its OWD tenders and could not thus compete for this business. He said that inquiries for such investments had recently been received by the Federal Reserve Bank from the BIS, and also from the central banks of Switzerland and Norway. In my conversation with Knoke I referred to the case we talked about & couple of days ago of the Chase Bank granting an advance in dollare to the Russian State Bank against gold in transit from Norway to New York. I told Knoke that we assumed that this gold would be sold upon arrival in the United States, since we did not desire to see the precedent established of gold being placed under earmark with his bank against which another party, such as the Chase Bank, might have B. lion. Knoke was certain that the needs of the Russians were DO urgent for dollars that the shipment would be sold upon arrival, and he added that the Chase Bank was too familier with United States gold regulations to risk any contravention thereof, through such an operation as I mentioned. CONFIDENTIAL 185 Secretary Morgenthau October 6, 1939 B. H. Foley, Jr. I am attaching Mr. Ziegler's letter with reference to taking your deposition in the case of Rudolf Hecht V. Universal Trading Corporation, together with & copy of my reply. This is in conformity with our conversation this morning. (Initialed) E. H. E., Jr. Attachments EHF:s Typed 10/6/39 JEROME I. ZIEGLER Attorney at Bew 12 East 41st Street 166 D New York F Lexington 2-5270 September 29, 1939 Honorable Henry W. Morgenthau, Jr. Secretary of the Treasury Washington, D.C. Re: Hecht v. Universal Trading Corporation, K.P. Chen, Rei Te-Mou, and S. D. Ren. Dear Mr. Morgenthaus As you have probably been informed, the above entitled litigation has been instituted some time ago against the agency of the Chinese government and the three members of the Chinese Financial Mission who arrived in this country during September, 1938. The basis of this suit is e breach of a written contract between my client, Rudolf Hecht, of New York City and the Chinese government through its Ambassador, Dr. C.T. Wang and his attorney, W. Carl Richards of Cumberland, Maryland. The contention of the defendants is substantially that no preliminary work had been done on the Chinese loan, an- nounced December 15th, 1938, prior to the day the three members of the mission arrived in Washington. The work and efforts of Dr. Wang and his associates are ignored. In preparing this matter for trial, which should como up in the near future, it becomes of major importance to obtain your testimony as to a certain conversation held prior to September 19, 1938. Con- cerning those conversations, I have certain definite information which requires amplification and clarification. The defendants have testified at a preliminary hearing, that they arrived in this country as a result of a. telephone call which you made to Dr. H.H. Kung, Chinese Minister of Finance. They have testified that this telephone call was made by you while you were in Paris early in the month of August, 1938. Concerning this particular call, I am seeking to obtain the following information from your who had opened the pre- liminary negotiations for the loan which subsequently lead up to this telephone call; who had continued the discussion of the loan between the opening of negotiations and the call; how far the negotiations for the loan had progressed at the Regraded Unclassified 87 time the call was made. I know of at least one other United States official who is personally familiar with the details of your conversation with Dr. Kung. I would appreciate learning from you whether Dr. Wellington Koo, who at that time WES in Paris, is also fani- liar with the details of the call, My information, obtained directly from Dr. Wang, includes an outline of the conversation which you personally had with Dr. Wang in New York on September 3, 1938, You may remember, that upon your arrival in New York on that day, you attempted to communicate with Dr. Wang only to learn that he had just left left New York for Washington. The Chinese Consul General's Office finally located Dr. Wang and he returned late at night to meet you. At that time Dr. Wang was informed by you as to the status of the loan. In view of the issues of the above entitled action, you can readily see that the entire conversa- tion of September 3, 1938, together with the background and events leading up to it are extremely pertinent. Under no circumstances would I want to do anything to interfere with the heavy duties imposed upon you. However, as you now know, your name has been mentioned repeatedly in this litigation and in the preliminary examinations. Further- more, there is no doubt but that at the coming trial it must be mentioned again on innumerable occasions. Since your information 18 first-hand and relevant, I would like to arrange for the taking of your deposition. At your convenience, that can be done either in Washington or in New York. Will you be good enough to recall these matters to your mind and inform no when I may obtain your statements upon them. Thanking you in advance for your courtesy in this matter, I remain, Respectfully yours, /s/ Jerome I. Ziegler JIZ:HM 188 OCT 6 1939 Dear Mr. Zieglers Secretary Morgenthau has asked ne to reply to your letter of September 29, 1939, with reference to taking his deposition in the case of Rudolf Heaht V. Universal Trading Corporation, et al. As you know, the Secretary's duties are extremely presting at the present time and I feel that it would be en unnecessary imposition to ask him to answer questions under en open commission. As on alternative, I suggest that written interrogutories be settled between you and counsel for Universal Trading Corporation and submitted to no for consideration before anything is done of & formal nature. After I have had . chance to study the interrogatories, I shall be glad to tell you the Secretary's wishes in the matter. Very truly yours, (Signed) E. n. Feloy. 126 General Counsel Jerome I. Ziegler, Esq. Attorney at Law 12 E. 41st Street New York, N. I. NOT/EHF18 Retyped 10/6/39 TREASURY DEPARTMENT WASHINGTON LBS October 6, 1939. MEMORANIUM FOR THE SECRETARY: We are going to be faced very shortly with a demand from the British for the submission of e copy of ships' mani- feste on shipments by American flag steamers to neutral coun- tries. (Incidentally, I understand the approach has come, very informally, from the British already). During the last war this same question was raised, and ultimately the so-called Skinner plan was adopted whereby ship- pera first made application to the British Embassy, end if ap- proved, a permit to load was given. We are undoubtedly going to be faced with this same question very shortly, end this brings forward the third problem. We do not want to allow goods for OI- port to move to seaboard from interior points unless approval to ship bas previously been given, otherwise our ports and railroad facilities will be clogged with cargo which cannot be exported. Therefore, it seems fundemental that when the question of present- ing manifests or adopting the so-celled Skinner, or some other plan, is definitely put forward, et that time some bureau should be in existence to handle our OWD problem of export permits. During the lest war this permit was known 6.0 a "G. 0. C." (General Operating Committee) permit, and wee issued by the committee of the reilroads after presentation to them of the British permit to load. Banil thanis 190 OCT 6 1939 My dear Mr. Attorney Generalt I have received your letter of October 2nd with which you returned the nemorandum dated October 1, relative to "Credits to Bolligerents." I wish to express to you my appreciation for your concurrence as to the legal conclusions therein expressed. I an enclosing for your files a ribbon copy of the memorendum on credits. Sincerely yours, (Signed) H. Morgenthau, Jr. Secretary. The Honorable The Attorney General of the United States. Inclosure Flied E.15th 191 OCT 6 1938 My dear Mr. Attorney Generals I have reseived your letter of October 2nd with which you returned the memorandum dated October 1, relative to "Credits to Belligerents." I wish to express to you my appreciation for your concurrence as to the legal conclusions therein expressed. I on melesing for your files a ribbon copy of the memorandum on credits. Sincerely yours, (Signed) E. Mergenthau, Jr. Secretary. The Homorable The Attorney General of the United States. Enclosure Fries 192 OCT 8 1939 My dear Mr. Attorney Generalt I have received your letter of October 2nd with which you returned the memorandum dated October 1, relative to *Credits to Belligerents." I wish to express to you my appreciation for your concurrence as to the legal conclusions therein expressed. I an enclosing for your files a ribbon copy of the mescrandum on credits. Sincerely yours, (Stgaed) H. Morgenthalt, Jr. Secretary. The Honorable The Attorney General of the United States. Emolosure This 193 OCT 6 1939 My dear Mr. Attorney Generals I have reseived your letter of October 2nd with which you returned the memorandum dated October 1, relative to "Credits to Belligerents" I wish to express to you my appreciation for your concurrence as to the legal conclusions therein expressed. I en melosing for your files a ribbon copy of the memorandum on credits. Sincerely yours, (Signed) H. Morgenthan, Jr. Secretary. The Homerable The Attorney General of the United States. Inclosure FlieS 194 OCT 6 1939 My dear Mr. Attorney Generalt I have received your letter of October 2nd with which you returned the memorandum dated October 1, relative to "Credits to Belligerents." I wish to express to you my ap reciation for your concurrence as to the legal conclusions therein expressed. I am enclosing for your files a ribbon copy of the memorendum on credits. Sincerely yours, (Signed) H. Morgenthau, Jr. Secretary. The Honorable The Attorney General of the United States. Enclosure Flied ARIMENT OF STATE Office of the Attorney General 195 Mashington, B.C. 1 October 2, 1939 My dear Mr. Secretary: I have examined the attached memo- randum, prepared in your department, relating to the legality of short term credit transactions under the Johnson Act and the existing Neutrality Act, and concur in the legal conclusions therein expressed. With kind regards, Sincerely, Honorable Henry Morgenthau, Jr. The Secretary of the Treasury Washington, D. C. 196 October 2, 1939 My dear Mr. Secretary: I have examined the attached леко- randum, prepared in your department, relating to the legality of short term credit transactions under the Johnson Act and the existing Neutrality Act, and concur in the legal conclusions therein expressed. with kind regards, Sincerely, Honorable Henry Morgenthau, Jr. The Secretary of the Treasury Washington, D. c.