Licensed nationals warned by Treasury to retain all assets

Licensed Nationals

Warned by Treasury

to Retain All Assets

CLARIFIES

TRANSACTIONS

Alien Parents May

Not Transfer Any

Property; Allow Sales

Special attention of all Japanese

nationals residing in this country

was called to the provision in the

general license No. 68-A issued to |

them on December 15 which pro-

hibits them from making any trans-

actions "substantially" diminishing

their assets within the United

States.

Any attempt on the part of an

alien parent to "give" his citizen

child or any other person any great

sum or large interest in business is

illegal, it was pointed out by Fed-

eral Reserve bank officials late Wed-

nesday.

However, any property may be

sold by an alien parent to his cit-

izen offspring or any other per-

son unless that alien parent receives

equitable renumerations and his as-

sets in this country are not lessened

by the transaction.

The Federal Reserve bank au-

thority quoted the clause in Foreign

Funds Control circular No. 199 in

`which provisions of general license

No. 68-A are clarified. This para-

graph in the circular reads:

"(6) This general license shall

not authorize any transaction which,

directly or indirectly, substantial-

ly diminishes or imperils the assets

within the continental United

States of any national of Japan or

otherwise prejudicially affects the

financial position of such national

within the continental United

States."

It was believed here that the Fed-

eral Reserve bank officials had re-

ceived many inquiries during the

past three weeks on this point,

making it advisable to issue this

general warning through The Nichi

Bei.