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Fundamentally, what Worms wants is: (a) Protection of the capital either in form of cash or securities, (b) No disclosure of ultimate ownership. The two go together, because we realize that the only way the capital can be thoroughly protected from certain possibilities of seizure is by being able to act in such a way that we will never have to disclose ownership of the capital. Worms has asked that Parimontal should be done away with. Merging with Canopa seems undesirable and dangerous. That applies to Worms' other suggestion of selling Parimontal to Canopa, since in this case the result would be the same.
Turning over Parimontal's assets to the Boston Corporation does not seem right legally on account of the fact that the ultimate owners of the funds have turned over their authority to Imafiza, and subsequently through Imafiza to Parimontal. The authority does not go beyond that, however. It seems, therefore, that Parimontal has no right at the present time, anyway, to turn over to another corporation those assets and holdings.
It seems that it would be best, therefore, to keep Parimontal, perhaps changing its name if there are more reasons to do so, and to transfer to my name the capital stock of Parimontal so that in some way Parimontal would be owned by a non-belligerent.
The next question is: Where should the cash and holdings of Parimontal be? Mr. Rosenthel seems to think that they should be in Canada, at least the securities. We think that they should be in America. The answer to that is: Is the Canadian government more or less apt than the United States government to ask for disclosures that would eventually lead to seizure? Already at the present time a complete detailed list of Parimontal's holdings has had to be turned over to the Canadian government. It is partly because of "kindness" on the part of the Canadian government that those securities can still be taken out of Canada.
We must not lose sight of the fact that the decision taken by the Canadian government effects all securities, and that if Parimontal can still take its securities out, it is because of what one might cell an exemption. This exemption should be looked upon as a temporary step which might be rescinded very easily. It is easier to rescind such a step than to pass a new set of rules. Mr. Rosenthal does not think that such a change might take place, but neither did he expect the exchange restrictions that Canada has decided upon. It seems therefore, that the easiest thing to do is not to take any such chance and to have the securities and the cash brought to the United States.

GFD

December 16, 1939