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File No. 763.72112C26/119

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

WASHINGTON, July 27, 1918.

[Received July 29.]

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

I have furthermore the honor to inform you that, in conformity with what was agreed in the matter, the net earnings of the Plant, proceeding from sales effected under my Government's administration, will be deposited in the Caja de Depósitos y Consignaciones.1 Accept [etc.]

M. DE FREYRE

File No. 763.72112C26/110

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

No. 195

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Grande Sugar Plant, and to inform you that the Department understands that the request made in your note of July 10 is withdrawn in view of the information contained in your subsequent note referred to.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

For the Secretary of State:
WILLIAM PHILLIPS

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

IV

TRADING WITH THE ENEMY

TRADING WITH THE ENEMY AND WITH ALLIES OF THE ENEMY

File No. 811.712/65

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

WASHINGTON, April 6, 1917.

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

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

File No. 811.712/65

Order No. 211 of the Postmaster General (Burleson)1

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

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

412

a bulletin of verification stating that the United States can not act as intermediary for the forwarding of such mails.

That for the purpose of executing this order postmasters at post offices of the United States and its possessions are hereby instructed to send to the Division of Dead Letters, Post Office Department, Washington, D. C., for return to the senders or other appropriate disposal, all mail matter prohibited dispatch as above indicated.

This order is hereby made to include all mail matter destined for Germany now remaining in the United States and its possessions, and that which may be mailed or received hereafter.

Postmasters will cause due notice of the foregoing to be taken at their offices and until otherwise instructed refuse to accept for mailing any mail matter destined for delivery in Germany.

In view of the fact that under existing conditions mail for Austria, Hungary, Luxembourg, Bulgaria and Turkey requires transit through Germany, to which country mail service from the United States is now suspended, mail for those countries will be treated, until otherwise ordered, in the manner herein prescribed for mail destined for Germany; but mail from those countries received in the United States will be dispatched to destination.

File No. 763.72112/3475

A. S. BURLESON

The Consul General at Rio de Janeiro (Gottschalk) to the Secretary

of State
[Telegram]

RIO DE JANEIRO, April 10, 1917, 6 p. m.

[Received 11.05 p. m.]

Lloyd Brazileiro inquires whether its northbound shipping will be hindered delivering cargo from German shippers in Brazil or to German consignees in our country.

File No. 763.72112/3475

GOTTSCHALK

The Secretary of State to the Consul General at Rio de Janeiro

(Gottschalk)

[Telegram]

WASHINGTON, April 12, 1917, 5 p. m.

Your April 10, 6 p. m. You may inform Lloyd Brazileiro Department knows of no legal obstacle to the transaction to which they refer. Point out, however, that this statement of Department is. of course, made in contemplation of existing conditions only.

LANSING

File No. 763.72112/3457

The Secretary of State to Messrs. Berliner, Strauss & Meyer, New York City

WASHINGTON, April 13, 1917.

GENTLEMEN: The Department has received your letter of April 2, 1917, wherein you seek information as to whether, in the state of war existing between this country and Germany, you may trade with persons of German origin in Mexico, Central America and South America.

The Department cannot undertake to enter into a discussion at this time of the matters referred to in your letter, but may refer you to the following cases: Janson v. Driefontein Consolidated Mines, Ltd., L.R. (1902) A.C. 484, 505; Kershaw v. Kelsey (1868), 100 Mass. 561; Montgomery v. United States, 15 Wall. 395; Briggs v. United States, 143 U.S. 346; Williams v. Paine, 169 U.S. 55.

It may be further observed that the Department cannot, of course, advise you as to any laws that may be enacted in the future by this Government or the Government of Germany affecting the nationals of the respective countries with reference to their commercial activities.

I am [etc.]

For the Secretary of State:
FRANK L. POLK
Counselor

File No. 763.72112/3464

The Secretary of State to the Cummer Lumber Co., Jacksonville, Fla.

WASHINGTON, April 17, 1917.

GENTLEMEN: The Department has received your letter of April 4, 1917, wherein you state that you have contracts for the delivery of phosphate rock with Messrs. H. J. Merck & Co., of Hamburg, Germany; that these contracts were all made prior to the beginning of the European war; that the delivery has been suspended from time to time under a war clause in the contract; that you have made no new contracts since March 3, 1914, except on February 13, 1916, when you agreed to an extension of 69,743 tons (which had been automatically canceled) until the end of the war; and that you would like to be advised as to what you should do with reference to these contracts.

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You doubtless appreciate that it would not be possible for you to carry on transactions of the character referred to in your letter during the existence of war between this country and Germany.

The matter of future commercial relations between your company and your German customers is one in regard to which the Department is not in a position to advise you.

As of possible interest to you, the Department may call your attention to the following cases: Montgomery v. The United States, 15 Wall. 395; Scholefield v. Eichelberger, 7 Pet. 586; Kershaw v. Kelsey, 100 Mass. 561.

I am [etc.]

For the Secretary of State:
FRANK L. POLK
Counselor

File No. 763.72112/3491

The Secretary of State to Mr. Emil Schwarz of Messrs. Benjamin Schwarz & Sons, New York City

WASHINGTON, April 19, 1917.

SIR: The Department has received your letter of April 11, 1917,1 wherein you state that you are a citizen of the United States; that for many years past you have conducted business in New York City in copartnership with several non-resident subjects of AustriaHungary; that the active management of the business is solely in your hands and its operation is wholly in the United States; that your partners have contributed a certain amount of money to the copartnership capital, but take no active part in the management of the business, but receive a percentage of the profits for their contribution to the copartnership capital; that the firm's business is the purchase and sale of merchandise; and that you desire, if possible, to continue business in the future in the same manner, as without the use of the capital contributed by your partners and the use of their credit, you will be seriously hampered in the operation of the business. Accordingly, you ask whether your rights or the rights of the firm, either in outstanding accounts or in the future operations of the business of the continental United States, are affected by the severance of diplomatic relations between the United States and Austria-Hungary, or will be affected in the event of war between the two countries.

It does not appear to the Department that the severance of diplomatic relations between the two Governments can, from a legal standpoint, affect the affairs of your firm to which you refer. The

'Not printed.

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