Funds in local banks of Japanese nationals are entirely frozen under orders issued by the U.S. Treasury department.

Access to their accounts is allowed for Japanese citizens, those born in this country or in American possessions, as Hawaii, and now residing here.

In the case of the accounts of even the American Japanese, the banks must exercise discretion and determine that funds dispersed will not be used for the benefit of a national not licensed by the federal reserve bank.

NOT YET

No orders have been received Friday concerning procedure for accounts of Italian and German nationals.

Accounts of Japanese nationals frozen by treasury edict are subject to treasury license. No money can be withdrawn or checks cashed payable to a non-citizen unless he has been licensed by the federal reserve bank as an individual.

Previously a general license has been in effect for all nationals but that was canceled.

Individual business transactions also are involved, bank officials said.

The treasury department, it was said, is making provisions for nationals to continue their business, especially in the produce line, and they are urged at the earliest time to contact the federal reserve bank and request a license to operate.