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this Government that the Egyptian regulations will be applied in an equally liberal manner to American citizens residing in Egypt.

For use in your discretion, it may be stated that the British Government has granted broad exemptions in favor of American nationals (not also possessing British nationality) residing in the United Kingdom from the requirement under the Defense (Finance) Regulations of declaring or surrendering foreign currency balances and securities. Similar exemptions have been extended to American nationals in all British colonies and mandates, and have been granted, wherever the question has been raised, in British Dominions.

HULL

883.5151/44: Telegram

The Minister in Egypt (Kirk) to the Secretary of State

CAIRO, September 17, 1941–8 p. m.

[Received September 19—5:27 a. m.] 1405. I have discussed with the Minister for Foreign Affairs 84a in the sense of the Department's 459, September 12, 7 p. m., the proclamation relating to the declaration of holdings of dollar currency or securities and was assured of a speedy reply.

An announcement has been made that the declaration provided for in the proclamation must be made before September 30th.

KIRK

883.5151/50: Telegram

The Minister in Egypt (Kirk) to the Secretary of State

CAIRO, September 30, 1941–6 p. m.

[Received October 2–5:10 p. m.] 1496. My 1405, September 17, 6 [8] p. m. In view of the fact that the Ministry of Finance issued an order published in the Journal Officiel of September 15 setting September 30 as the date before which the dollar holdings of persons residing in Egypt should be declared I repeatedly requested the Minister for Foreign Affairs at least to exempt American citizens and companies from making such declarations pending a final decision on the matter. Today the Minister for

a Foreign Affairs telephoned me to say that the Minister of Finance had prolonged the period in which the declaration might be made until a solution of the matter had been attained.

The Legation understands that the Egyptian authorities with the view to following a procedure similar to that of the British had requested the British Embassy here to furnish them detailed informa

Ha Salib Samy.

tion on the legal exemptions granted to American citizens residing in the United Kingdom in respect of this matter, that the British Embassy had received such information only yesterday and that accordingly the Egyptian authorities were not in the position to reach a decision prior to the date on which the declarations should have been made.

KIRK

883.5151/49: Telegram

The Minister in Egypt (Kirk) to the Secretary of State

CAIRO, October 1, 1941–1 p. m.

[Received October 2–4:33 p. m.] 1500. My 1496, September 30, 6 p. m. The Legation has received a note from the Foreign Office confirming the telephone message mentioned in the Legation's telegram under reference to the effect that pending a final decision on the matter American nationals and firms in Egypt will be exempt from declaring their dollar holdings in Egypt and abroad.

KIRK

883.5151/50 : Telegram

The Secretary of State to the Minister in Egypt (Kirk)

WASHINGTON, October 8, 1941–9 p. m. 543. Your 1496, September 30, 6 p. m., and 1500, October 1, 1 p. m. For your guidance in possible future discussions with the Egyptian authorities 85 concerning the requirements for declaring holdings of dollar currency and securities, the following is the Department's understanding with respect to the exemptions granted to American nationals residing in the United Kingdom:

American nationals residing in the United Kingdom and not also possessing British nationality are exempt from declaring their securities whether acquired before or after the date on which the Defense (Finance) Regulations became effective. This does not include securities which were acquired after that date from a person affected by the regulations, or those which were acquired from or in place of balances which are not exempt from surrender according to the regulations hereinafter defined. If it is desired to export from the United Kingdom any securities, it is necessary to obtain permission to export in the usual way and the authorities must be assured that the applicant has been exempted under the arrangement permitting American

* No record of further discussion of this subject has been found in the Department files.

citizens to retain their securities. American nationals are also not required to surrender foreign currency balances which they acquired before the date on which the regulations were made effective, nor balances which they acquired after that date provided (a) that the acquisition of these balances has not been in contravention of the Defense (Finance) Regulations, and, particularly, that it was not the result of the sale of sterling balances for which permission is necessary, and (6) that the foreign currency balances were not acquired in the course of current trade or similar transactions.

It will be noted that the exemptions apply only to individuals and not to business enterprises.

HULL ETHIOPIA

LIBERATION OF ETHIOPIA AND CONQUEST OF ITALIAN EAST AFRICA BY THE BRITISH; EXCHANGE OF MESSAGES BETWEEN PRESIDENT ROOSEVELT AND EMPEROR HAILE SELASSIE

740.0011 European War 1939/7921 : Telegram
The Consul at Aden (Timberlake) to the Secretary of State

ADEN, January 25, 1941–8 p. m.

[Received January 27—5 a. m.] 6. Immediate objectives fighting around Kassala are Asmara and Massama. I have reason to believe that British are preparing early general attack on Abyssinia from three sides, principal thrust from Kassala through Lake Tana region which has never submitted to Italians and diverting attacks from Kenya and from Aden at British Somaliland. I am reliably informed British officers have for some time been active and successful in Abyssinia organizing guerrila warfare, very large amounts of war material, particularly planes, light tanks, and troops have recently passed here destined for Port Sudan from which point railway is now clear to Kassala which is expected to be used as a base of operations.

Preliminary Eritrean campaign launched to prevent possible flank attack on eventual Ethiopian venture should also clear up Red Sea within a month and release many warships on Red Sea convoy.

The Italians are reported to have total armed strength of 250,000, mostly natives, in Abyssinia but plan defense only at two or three strategic positions near Addis Ababa where lines of communication are short. Serious shortage of gasoline, especially aviation, reported in Abyssinia.

On the basis of continuing reports, native uprisings, low morale and general supply shortage, and in view of heavy British preparations, I believe main offensive which will probably start within 6 weeks likely to produce capitulation Italian East Africa early in spring

TIMBERLAKE

740.0011 European War 1939/8156: Telegram The Ambassador in Italy (Phillips) to the Secretary of State

ROME, February 6, 1941—noon.

[Received February 6–11:15 a. m.] 167. There is deep concern apparent in Italian circles with regard to the situation of Italian women and children in Italian East Africa now unable to leave the country. This fear will presumably become acute with advance of British forces and probable native uprisings. In the circumstances it occurs to me that it would be in line with our tradition and would at the same time be a highly important gesture for us to make at this moment if, acting on my own initiative and yet with your approval, I could discuss the situation at the Foreign Office intimating that we might be able to be of assistance in evacuating the women and children. Already I have heard it said that the Japanese might undertake this task. In event that Italian Government should welcome my suggestion we should of course have to explore the possibility of chartering a vessel immediately available in those waters.

PHILLIPS

740.0011 European War 1939/8156 : Telegram The Secretary of State to the Ambassador in Italy (Phillips)

WASHINGTON, February 7, 1941—6 p. m. 68. Your 167, February 6, noon. For reasons of policy the Department does not desire you to undertake any arrangements personally or on behalf of this Government looking toward the chartering of a vessel or other active participation in the evacuation of Italian nationals in Italian East Africa. However, the Department regarding with humanitarian concern the situation of Italian women and children there, authorizes you informally to discuss their situation with the appropriate Italian authorities and to offer your good offices in an informal approach to the British authorities for safe conduct and such other facilities as those authorities may be able to extend to the Italian authorities in evacuating Italian women and children and other noncombatants from the area in question. Formal approach to the British authorities in the matter would, of course, have previously to be made through the Brazilian Embassy at Rome inasmuch as it is understood that the representation of Italian interests in Great Britain have been undertaken by the Brazilian Government. The Department is glad to have had you bring the matter to its attention and in view of its sympathetic interest in it, will appreciate prompt word from you as to further developments.

HULL

740.0011 European War 1939/8229 : Telegram
The Ambassador in Italy (Phillips) to the Secretary of State

ROME, February 8, 1941–5 p. m.

[Received February 83 p. m.] 181. Department's 68, February 7, 6 p. m. This morning in con

6 versation with Anfuso who is in charge of the Foreign Office I men

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