(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 sec

tion 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 authorizing 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]