ative, individual, organization, or other person, who would be an enemy national solely by reason of a relationship to any such country or its government, or to any national thereof, Provided, That any license which, by its terms is not applicable to any transaction or transactions involving any enemy national or nationals shall be regarded as not applicable to any transaction involving the Government of Bulgaria, Hungary or Rumania or any national of any such country who, except for the provisions of this circular, would be considered as an enemy national.

(b) Communications and transactions with or by enemy nationals exempted from General Ruling No. 11 under certain conditions. There are hereby exempted from the prohibitions contained in paragraph (a) (1) and (2) of General Ruling No. 11 (§ 511.211):

(1) Any trade or communication with an enemy national;

(2) Any act or transaction involving any trade or communication with an enemy national;

(3) Any financial, business, trade, or other commercial act or transaction by or on behalf of an enemy national.

(c) Exemption not applicable to certain transactions. The exemption granted in paragraphs (a) and (b) of this section shall not apply to any transaction which is prohibited by the order or § 511.211a (General Ruling No. 11A) or by any other ruling or regulation (other than § 511.211, General Ruling No. 11) issued by the Secretary of the Treasury pursuant to section 5 (b) of the Trading With the Enemy Act, as amended, unless such transaction is licensed by the Secretary of the Treasury. A license authorizing any prohibited transaction will not require a waiver of § 511.211 (General Ruling No. 11).

(d) Section 511.32 (General License No. 32) not applicable to certain remittances. The provisions of § 511.32 (General License No. 32) shall not be deemed to authorize any remittance to any citi

Alien Property and (2) § 506.1 of this chapter which requires the consent of the Office of Alien Property to any distribution, payment, or transfer to the governments or persons described therein.

§ 511.326 Public Circular No. 26; status of Northern Bukovina and Bessarabia under Executive Order No. 8389, as amended, and General Ruling No. 11, as amended. For the purposes of Executive Order No. 8389, as amended, and § 511.211 (General Ruling No. 11), as amended, Northern Bukovina and Bessarabia shall be deemed to be subject to the jurisdiction of the Union of Socialist Soviet Republics, in accordance with the terms of the armistice of September 12, 1944, between Rumania and the United Nations.

§ 511.329 Public Circular No. 29-(a) Status of accounts upon parole or release of internee. Instructions or notifications by or in behalf of the Treasury Department blocking the property of any person as an internee shall be regarded as revoked upon the parole or release of the person from internment: Provided, That if the person was paroled or released prior to March 15, 1946, that date shall be regarded as the effective date of revocation. However, the provisions hereof shall not apply to any person released into the custody of the Immigration and Naturalization Service for deportation proceedings nor to any person who is the subject of a "removal order" issued pursuant to Presidential Proclamation 2655 of July 14, 1945 (3 CFR, 1945 Supp.).

(b) Applicability of § 511.42 (General License No. 42). The accounts of internees blocked pursuant to specific directions from the Treasury Department are not unblocked by virtue of General License No. 42 as amended on August 27, 1946.

§ 511.330 Public Circular No. 30—(a) Status of Korea in general. For the purposes of the order (Executive Order 8389) and General Ruling No. 11 (§ 511.211):

(1) Korea shall not be deemed to be a blocked country or to be enemy territory;

(2) Nationals of Korea shall not be deemed to be nationals of a blocked country solely by reason of the fact that Korea was regarded as subject to the jurisdiction of Japan.

(b) Under § 511.211a (General Ruling No. 11A). Section 511.211a (a) (3) shall not be deemed to apply to a partnership, association, corporation, or other organization solely by reason of the fact that it is organized under the laws of Korea, or has had its principal place of business therein.

§ 511.331 Public Circular No. 31. (a) Reference is made to § 511.212 (General Ruling No. 12) relating to unlicensed transfers of blocked property. Reference is also made to General Ruling No. 19 relating to the release of Treasury controls over property vested by the Alien Property Custodian. This section deals with the effect of such release on unlicensed attachments levied with respect to blocked property prior to the vesting thereof by the Custodian.

(b) Under § 511.212 (a) (General Ruling No. 12), interests in blocked property cannot be acquired, transferred, or created by unlicensed "transfers". Nor may an unlicensed transfer be the basis for the assertion or recognition of any right, remedy, power, or privilege with respect to, or interest in, any blocked property.

(c) An attachment is a "transfer". See § 511.212 (e) (General Ruling No. 12) where the term "transfer" is defined as including "the issuance, docketing, filing, or other levy of or under any judgment, decree, attachment, execution, or other judicial or administrative process or order, or the service of any garnishment". An unlicensed attachment, therefore, cannot operate to transfer or create any interest in blocked property. Nor can it serve as a basis for the assertion or recognition of any right, remedy, power, or privilege with respect to, or interest in, any blocked property.

(d) Section 511.212 (d) (General Ruling No. 12) does not constitute a license authorizing the seizure or creation of any interest in blocked property by attachment proceedings or other legal process. This paragraph merely is a formal statement of the position which the Treasury Department has always taken with respect to litigation affecting blocked property-that it does not desire to interfere with such litigation so long as it is clearly understood that the judicial process cannot, without a license or other authorization from the Secretary of the Treasury, operate to transfer or create any interest in blocked property. Thus the proviso of § 511.212 (d) specifies that "no

attachment, judgment, decree, lien, execution, garnishment, or other judicial process shall confer or create a greater right, power, or privilege with respect to, or interest in, any property in a blocked account than the owner of such property could create or confer by voluntary act prior to the issuance of an appropriate license." In issuing § 511.212 (d) the Treasury Department did not undertake to decide for the courts whether they should exercise jurisdiction. It simply prescribed that jurisdiction could be exercised only on the basis that if a Treasury license was not issued, the judicial process could not operate to transfer or create any interest in blocked property, nor could it be the basis for the assertion or recognition of any other right, remedy, power, or privilege with respect to the property.

(e) The Treasury Department has always considered that when the Alien Property Custodian has vested any property, it would not be in the national interest for the Treasury Department thereafter to grant licenses authorizing the creation or acquisition of any interest in the property. Formerly it was the practice of the Department, whenever it was notified by the Custodian that a particular property had been vested, to issue a specific release to the Custodian of all control of the property under Executive Orders Nos. 8389 and 9193. Section (a)

of General Ruling No. 19 constitutes a general release of such control in the case of all German and Japanese property vested by the Custodian. Section (b) of General Ruling No. 19 is intended to make it clear that a release of control over any vested property to the Alien Property Custodian, whether by specific release or by reason of the General Ruling, operates as a final denial by the Secretary of the Treasury of any pending application for license or other authorization relating to such property and that no application for a license authorizing the creation, acquisition, or transfer of any interest in such property will thereafter be entertained or granted. The paragraph is thus a formal statement of what has always been the position of the Treasury Department-namely, that once blocked property has been vested by the Custodian, there is no longer any possibility that an unlicensed attachment may ripen through the issuance of a Treasury license into a seizure and acquisition of an interest in such blocked property.

(f) In view of the fact that the Alien Property Custodian has publicly announced his intention of vesting all German and Japanese property in the United States, it will be the general policy of the Treasury Department not to grant any licenses authorizing the creation or acquisition through legal process of any interest in blocked German or Japanese property.

NOTE: General Ruling No. 19, formerly codified as § 511.219 of this chapter, has been voked. (13 F. R. 8327, Dec. 25, 1948)

§ 511.332 Public Circular No. 32. Notwithstanding § 511.211a (General Ruling No. 11A), property returned by the Alien Property Custodian under section 32 of the Trading With the Enemy Act, as amended, shall not be regarded as subject to the restrictions of the order solely by reason of the interest of any blocked country or national thereof resulting from the return.

§ 511.333 Public Circular No. 33-(a) In general. For the purposes of the order and § 511.211 General Ruling No. 11:

(1) Taiwan (Formosa) shall be deemed to be subject to the jurisdiction of China;

(2) No person shall be deemed a national of Japan solely by reason of the fact that, at any time on or since the effective date of the order, Taiwan (Formosa) was regarded as part of Japan.

(b) Under § 511.211a (General Ruling No. 11A). Section 511.211a (a) (3) shall not be deemed to apply to a partnership, association, corporation, or other organization solely by reason of the fact that it is organized under the laws of Taiwan (Formosa) or has had its principal place of business therein.

§ 511.335 Public Circular No. 35—(a) Reference. Reference is made to § 511.87 (General License No. 87), exempting certain transactions from section 2A (2) of the order, to § 511.94 (General License No. 94), generally licensing certain countries, to § 511.205 (General Ruling No. 5) relating to the importation of securities, and to § 511.212 (General Ruling No. 12) relating to unlicensed transfers of property in a blocked account.

(b) Registered securities. Securities issued by any person subject to the jurisdiction of the United States which were registered in the name of a national of a blocked country on or prior

to the effective date of § 511.94 (General License No. 94) for such country are subject to the proviso of § 511.94 (a) and constitute property in a blocked account unless transfer of registry has been appropriately authorized under the order.

(c) Property of blocked foreign corporations and other organizations. Property in the United States which is blocked by reason of the interest of any partnership, association, corporation, or other organization, organized under the laws of any foreign country, which is a national of a blocked country because of the stock or other interest therein of a blocked country (including the countries licensed under § 511.94 (General License No. 94)) or nationals thereof, shall continue to be regarded as property in a blocked account, notwithstanding the transfer of such stock or other interest to a non-blocked country or a national thereof.

(d) Consequences of certain documents. With respect to paragraphs (b) and (c) of this section, attention is directed to the fact that neither § 511.87 (General License No. 87), exempting certain transactions from section 2A (2) of the order, nor § 511.205 (General Ruling No. 5 of July 25, 1947), removing the restrictions on the importation of securities not specified in the list attached to such ruling, authorizes any transfer of property in a blocked account. Regarding the paragraphs (b) and (c) of this section, attention is also expressly directed to the provisions of § 511.212 (General Ruling No. 12) concerning the effect of unlicensed transfers of property in a blocked account.

§ 511.336 Public Circular No. 36-(a) Certain specific licenses and authorizations revoked. To the extent that they authorize any transactions set forth in this section, all licenses and authorizations of whatsoever character, other than those contained in general rulings, general licenses and public circulars, are hereby revoked effective June 30, 1948, and all licenses and authorizations hereafter issued except those which expressly refer to this public circular, shall be ineffective to the extent that they purport to authorize any such transactions after June 30, 1948:

(1) Withdrawals from blocked accounts for payments or remittances for the purpose of living, traveling or other similar personal expenses;

(2) Withdrawals from blocked accounts for remittances, regardless of the purpose, to Austria, Belgium, Denmark, France, Greece, Italy, Luxembourg, the Netherlands, Norway or Sweden by any means other than by the payment of the dollar amount of the remittance to a domestic bank for credit to an account in the name of a bank within such country.

(b) Exceptions. The provisions of this section shall not apply to any license under which all payments, transfers and withdrawals may be effected from an account, including any license which permits an account to be treated as the account of a generally licensed national.

§ 511.340 Public Circular No. 40: Effect of prohibitions with respect to domestic and foreign scheduled securities. (a) Reference is made to §§ 511.205 and 511.205b with respect to which an inquiry has been received as to whether a contract which calls for delivery of a security of a particular issue without reference to any particular certificate number is null and void if a domestic or foreign scheduled security (as defined in the aforementioned sections) is delivered pursuant to it. It was pointed out that ordinarily if delivery is made of a security which is defective another security of the same issue is required to be substituted. The question is directed to whether §§ 511.205 and 511.205b alter any of the obligations arising out of such a contract.

(b) Unless such a contract creates an obligation to deliver a domestic or foreign scheduled security, a contract for the sale and purchase of securities is not rendered null and void by §§ 511.205 and 511.205b by reason of the delivery of a domestic or foreign scheduled security in purported compliance with the contract. Sections 511.205 and 511.205b do not in any way invalidate any rights of the parties to such a contract to enforce its terms, such as requiring delivery of another security of the same issue. Such a contract does not, however, transfer title to or create any interest in or claim to a domestic or foreign scheduled security. [16 F. R. 545, Jan. 20, 1951]

SUBPART E-GENERAL LICENSE AND PUBLIC CIRCULAR ISSUED BY THE GOVERNOR OF HAWAII

§ 511.401 General License H-1. (a) A general license is hereby granted author

izing any national of a blocked country to engage in transactions (including the importing of goods, wares and merchandise from the continental United States) incident to the normal conduct of the professional, commercial, or agricultural activities of such national in the Territory of Hawaii.

(b) With respect to any enterprise controlled by an enemy national or in which an enemy national has a substantial interest, this general license shall not be deemed to authorize:

(1) Any purchase, sale, transfer or other dealing in, or with respect to, securities or fixed assets;

(2) Any modification in capital structure;

(3) Any loan other than loans incident to the financing of an importation into the Territory of Hawaii;

(4) Any unusual accumulation of inventory;

(5) Any payment of dividends or bonuses other than bonuses to bona fide employees in an annual amount not exceeding the equivalent of one month's wages;

(6) Any payment or transfer of credit from a blocked account in any banking institution not within the Territory of Hawaii.

(c) Any person exercising the privileges of this general license shall file such reports as may from time to time be required by the Office of the Governor of Hawaii, Foreign Funds Control.

(d) This section shall not be deemed to authorize any transaction which could not be effected without a license if the person exercising the privileges of this section were not a national of a blocked country.

(e) Attention is directed to the provisions of Public Circular No. H-6, as amended.

[13 F. R. 5456, Dec. 31, 1948]

NOTE: Public Circular H-6, formerly contained in Appendix B to Part 132 of Title 31, was revoked. (11 F. R. 7719, July 13, 1946).

§ 511.510 Public Circular No. H-10. Notwithstanding the provisions of

§ 511.211a (General Ruling No. 11A), § 511.401 (General License No. H-1) continues applicable to blocked accounts in the Territory of Hawaii.

[13 F. R. 5457, Dec. 31, 1948]