August 31, 1954) with the result that the type of claim represented in the subject bills was not included among the recommended categories of new claims. The bills in their present form would require the payment of the benefits authorized out of the war claims fund. The Commission has been unable to estimate accurately the amount that would be required for this purpose, for the following reasons: (1) While the number of persons who might be eligible for benefits has been estimated at 3,275, there are no presently available records by which this figure can be confirmed, and (2) it has not been possible to ascertain the number of civilian Americans interned in China who may be ineligible for benefits by reason of having received similar benefits under previous war-hazard and relief legislation. Assuming there would be 3,275 eligible claimants who would receive the same average payment made to civilian internee claimants under section 5 (a) through (e) of the War Claims Act of 1948, the cost of the measure would be approximately $7 million. For the reasons stated above, this Commission opposes the enactment of H. R. 1756 and H. R. 4274. Informal advice has been received from the Bureau of the Budget that there would be no objection to the presentation of this report to your committee. Sincerely yours, WHITNEY GILLILLAND, Chairman. EXECUTIVE OFFICE OF THE PRESIDENT, BUREAU OF THE BUDGET, Hon. J. PERCY PRIEST, Washington, D. C., September 26, 1955. Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: This is in reply to your letters of February 5 and February 16, 1955, requesting the views of the Bureau of the Budget with respect to H. R. 1756 and H. R. 4274, bills to amend the War Claims Act of 1948, so as to extend the benefits of such act to persons captured or interned by, or in hiding from, the Japanese Government in China during World War II. These bills would extend civilian detention, injury, disability, or death benefits to American citizens captured, interned, or in hiding to avoid capture in China, or while in transit to or from China during World War II. Section 5 (a) of the War Claims Act of 1948, as amended, has authorized such compensation for civilian American citizens who were captured by the Japanese Government at Midway, Guam, Wake Island, the Philippine Islands, or any Territory or possession of the United States, or while in transit or in hiding at such places to avoid capture. A filing date limit of March 1, 1952, for the proposed additional claims is contained in H. R. 1756 and H. R. 4274. The Secretary of State and the Chairman of the Foreign Claims Settlement Commission, in the reports they are making to your committee on both bills, are recommending against their enactment for the reasons set out therein. This category of claims was omitted from the executive branch war claims recommendations of June 28, 1954, because these claimants were warned by the State Department of the impending danger and asked to leave threatened areas. We remain concerned about setting such a precedent for payments for death or disability under these circumstances. The Bureau of the Budget concurs with the views contained in the reports of the Department of State and Foreign Claims Settlement Commission and recommends that these measures not be enacted. Sincerely yours, Hon. J. PERCY PRIEST, ROWLAND HUGHES, Director. DEPARTMENT OF STATE, Washington, D. C., April 5, 1955. Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. PRIEST: I refer to your letters of February 5, 1955, requesting the Department's comments on H. R. 2102 and H. R. 3242, bills to amend section 32 of the Trading With the Enemy Act of 1917, as amended, so as to permit the return under such section of property which an alien acquired by gift, devise, bequest, or inheritance, from an American citizen. The Department of State, together with other interested agencies of the executive branch, has been engaged for some time in a thorough examination of the broad question of the disposition of vested German and Japanese assets. On the occasion of the visit of Chancellor Adenauer to the United States in October of last year the Chancellor and President Eisenhower agreed that representatives of the United States Government and of the Government of the Federal Republic of Germany should meet to discuss the question of a possible return of vested German assets, as requested by Chancellor Adenauer and the question of providing compensation to American citizens who have suffered loss or damage to property as a result of the war with Germany. Conversations between representatives of the two Governments on these two problems were, therefore, held in Washington from February 10 to March 3, 1955. The object of these conversations was to achieve an exchange of views on these questions and to explore the range of problems which they present. They were not conducted for the purpose of concluding an intergovernmental agreement on these questions. In the course of these discussions, the German representatives were informed that the executive branch intends to submit proposals to the Congress for its consideration providing for return of vested German assets to natural persons as a matter of grace and up to a limit of $10,000. It is believed that such return would be of substantial benefit to the group of persons who would be affected by H. R. 2102 and H. R. 3242. It is further contemplated that in conjunction with the proposal for a partial return of assets, proposals will also be submitted for the settlement of war claims held by United States nationals against Germany up to about $10,000. Discussions were also begun on March 15, 1955, with representatives of the Japanese Government with respect to vested Japanses assets in the United States. It is expected that the legislative proposals outlined above will be submitted to the Congress upon the conclusion of the discussions with the Japanese representatives. In view of the foregoing, it is suggested that the committee may wish to defer consideration of H. R. 2102 and H. R. 3242 until the foregoing proposals are submitted. The Department has been informed by the Bureau of the Budget that there is no objection to the submission of this report. Sincerely yours, THRUSTON B. MORTON, FOREIGN CLAIMS SETTLEMENT COMMISSION OF THE UNITED STATES, Hon. J. PERCY PRIEST, Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, Washington, D. C. DEAR MR. PRIEST: This is in further reference to your request of February 5, 1955, for the views of the Foreign Claims Settlement Commission on the bill, H. R. 2135, entitled "A bill to amend section 32 of the Trading With the Enemy Act of 1917, as amended, so as to permit the return under such section of amounts payable to aliens under trust funds created by American citizens." The Trading With the Enemy Act is administered exclusively by the Office of Alien Property, Department of Justice, except with respect to provisions relating to payments that may be made under that act by the Secretary of the Treasury. Any interest which the Foreign Claims Settlement Commission may have in proposals to amend the Trading With the Enemy Act arises from the provisions contained in section 39 of that act and in section 13 (a) of the War Claims Act of 1948, as amended. These sections relate to the disposition of the proceeds of liquidated enemy property and to the war claims funds which is the source of payment of several categories of claims over which the Commission has jurisdiction. However, the Foreign Claims Settlement Commission, in cooperation with the Department of State and other interested agencies of the Federal Government, has given serious consideration to the matter of war claims by American nationals against Germany payable from funds to be made available by the Federal Republic of Germany. The Commission's views and recommendations on this general subject were incorporated in the bill H. R. 6730 submitted for the consideration of the Congress by the Department of State, July 7, 1955 (Executive Communication 870, House of Representatives), and presently pending before your committee. An identical measure, S. 2227, is currently pending before the Committee on the Judiciary in the Senate. Although the type of claims contemplated by the subject bill, H. R. 2135, are not of the type provided for in H. R. 6730, your committee may wish to consider the provisions of H. R. 2135 in conjunction with H. R. 6730 since the latter bill also relates to the return of the proceeds of certain German vested assets. For the foregoing reasons the Commission refrains from any further comment of recommendations with respect to H. R. 2135. Informal advice has been received from the Bureau of the Budget that there would be no objection to the presentation of this report to your committee. Sincerely yours, WHITNEY GILLILLAND, Chairman. Hon. J. PERCY PRIEST, DEPARTMENT OF JUSTICE, OFFICE OF THE DEPUTY ATTORNEY GENERAL, Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. CHAIRMAN: This is in response to your request for the views of the Department of Justice relative to H. R. 2135, a bill to amend section 32 of the Trading With the Enemy Act of 1917, as amended, so as to permit the return under such section of amounts payable to aliens under trust funds created by American citizens. This bill proposes to amend section 32 of the Trading With the Enemy Act (50 U. S. C. App., sec. 32) to provide for the transfer of certain property vested under that act as the property of nationals of Germany, Austria, or Japan, to persons other that the prevesting owners. It provides that any right vested under that act to payments from a trust established prior to World War II by an American citizen for the benefit of any national of Germany, Austria, or Japan, shall be transferred to the American citizen who originally established the trust, or to his successor in interest. Section 2 of the bill further provides that claims for the property may be filed within 3 years from the date of enactment of the bill. Enactment of this bill would appear to create a serious conflict with the returns authorized under present law. Austrian nationals are generally eligible for return of vested property formerly owned by them under the provisions of section 32 of the Trading With the Enemy Act, including interests in trusts created by American citizens for their benefit. Those "nonhostile" German and Japanese nationals who fall within the categories of persons eligible for return under section 32 are similarly entitled to return of interests in such trusts, as well as all other property owned by them. In the event that the property subject to claim by any such person eligible for return under existing law consists of an interest in an American trust subject to this bill, the right of the grantor of the trust to apply for that interest would be in direct conflict with the claim of the former owner. The bill makes no provision for resolving such conflict. It is also to be noted that, despite the title and language of the bill, a payment made pursuant to its terms would not actually be a return of vested property. The individuals who would be paid under its terms are persons who did not have any legal interest in or right to the property in question prior to its vesting. Moreover, in some instances the provision for payment to successors in interest to a deceased grantor may mean a conferring benefit on heirs of the grantor who were, by the latter's express wish, excluded from participating in the trust. In attempting to distinguish between vested assets on the basis of their origin and source, the bill would depart from the original intendment of the Trading With the Enemy Act to deal with property owned by enemies at the time of war and without regard to the original source of such property. The value of the assets which ultimately would be transferred under this bill cannot be accurately estimated. The total value of interests in trusts vested during World War II as the property of German, Austrian, and Japanese nationals is approximately $49 million. The aggregate value of the interests in those of the trusts created by American citizens prior to World War II, which would be returned by this bill, has not been determined, but it would undoubtedly con stitute a substantial portion of the $49 million total. This bill would therefore preempt a large part of the $60 million of vested assets estimated to be available to finance H. R. 6730, a bill now pending before your committee, and which provides in general for a return of vested property to natural persons up to a maximum of $10,000 each. It is estimated that H. R. 6730 would provide a full return to approximately 90 percent of the former owners of vested property. The instant bill also conflicts with H. R. 6730 in that the latter would return the vested interests in trusts with a value of not over $10,000 to the prevesting owners rather than to the settlors. The Department of Justice is opposed to the enactment of H. R. 2135 but urges favorable committee action on H. R. 6730. The Bureau of the Budget has advised that there is no objection to the submission of this report. Sincerely, WILLIAM P. ROGERS, Deputy Attorney General. EXECUTIVE OFFICE OF THE PRESIDENT, Hon. J. PERCY PRIEST, BUREAU OF THE BUDGET, Washington, D. C., March 14, 1955. Chairman, Committee on Interstate and Foreign Commerce, House Office Building, Washington, D. C. MY DEAR MR. CHAIRMAN: This is in reply to your letter of February 25, 1955, requesting the comments of this office in regard to H. R. 2135, a bill to amend section 32 of the Trading With the Enemy Act of 1917, as amended, so as to permit the return under such section of amounts payable to aliens under trust funds created by American citizens. Despite its title, this bill would actually not provide for a return but instead would require the transfer of vested property in trust to the original grantor of the trust or his legal successors. Since it does pertain to the disposition of vested assets, however, it is recommended that no action be taken on H. R. 2135 until the Congress has had an opportunity to consider the detailed recommendations and implementing legislation the administration plans to propose in the near future with respect to a limited return of vested assets to their former owners and the partial settlement of certain war claims of Americans against Germany. Sincerely yours, HAROLD PEARSON, Hon. J. PERCY PRIEST, DEPARTMENT OF JUSTICE, OFFICE OF THE DEPUTY ATTORNEY GENERAL, Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, Washington, D. C. DEAR MR. CHAIRMAN: This is in response to your request for the views of the Department of Justice concerning H. R. 2233, a bill to amend the War Claims Act of 1948, as amended. This bill would amend the War Claims Act of 1948, as amended (50 U. S. C. App. 2001) to authorize the compensation of American nationals and wholly American-owned business enterprises for losses arising from "nationalization, seizure, or other taking by Germany during World War II of real or personal property, or any interests therein, or of any business owned by or belonging to" such nationals and enterprises. The payment of claims allowed under this bill would be made from the war claims fund established by section 13 of the War Claims Act of 1948. Each claim allowed in the amount of $500 or less would be paid in full. Each claim allowed in a sum greater than $500 would be paid in 2 installments, the first equal to $500 plus two-thirds of the amount of the claim in excess of that sum and the second consisting of the balance in full or in a reduced amount depending on the sums remaining in the war claims fund as of September 1, 1956. The war claims fund, the source of benefits under this bill, consists of the net proceeds of German and Japanese property vested under the Trading With the Enemy Act, as amended (50 U. S. C. App. 1), and not subject to return under that act. The Office of Alien Property has transferred a total of $225 million to the war claims fund including $75 million transferred pursuant to the directive in Public Law 211, 83d Congress, approved August 7, 1953 (67 Stat. 461). The Department of Justice does not have information indicating whether commitments under present law will reduce the money now in the war claims fund to a level below that required for the financing of this bill. If so, the ultimate financing of the bill under present law would have to come from vested assets to be transferred to the war claims fund in the future under section 12 of the War Claims Act, which added section 39 to the Trading With the Enemy Act. Thus this bill, or other pending measures to broaden or increase the benefits payable out of the war claims fund, might involve the use of the same funds required for the financing of section 2 of H. R. 6730, the House bill which proposes a return of vested property to natural persons up to a maximum of $10,000. The financing of that proposed return is to be effected from assets in the hands of the Office of Alien Property now destined for ultimate transfer to the war claims fund under section 39 of the Trading With the Enemy Act. Section 7 of H. R. 6730 would amend the War Claims Act of 1948 by adding a new title II to provide for compensation to Americans who have certain types of war damage claims against Germany as the result of World War II. Section 203 (a) of the new title II covers much the same ground as the subject bill by providing for compensation to American claimants for physical damage to or physical loss or destruction of property located in Germany and certain other European countries which occurred as a direct consequence of "special measures directed against property during the war because of enemy or alleged enemy character of the owner." Section 204 would bar payments on account of the loss of specified types of property. Allowed claims would be paid from a $100 million fund to be derived under section 202 (a) from payments which the Federal Republic of Germany is to make under an agreement of February 27, 1953, in settlement of its obligation to the United States for postwar economic assistance. Payments in respect to any award would probably not exceed $10,000. It will be seen from the foregoing that the subject bill varies from the related provisions of H. R. 6730 in several substantial respects. Accordingly, the Department of Justice is unable to recommend enactment of H. R. 2233, but does urge favorable committee consideration of H. R. 6730. The Bureau of the Budget has advised that there is no objection to the submission of this report. Sincerely, WILLIAM P. ROGERS, Deputy Attorney General. FOREIGN CLAIMS SETTLEMENT COMMISSION OF THE UNITED STATES, Hon. J. PERCY PRIEST, Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. PRIEST: Further reference is made to your request of February 5, 1955, for the views of the Foreign Claims Settlement Commission on the bill H. R. 2233, entitled "A bill to amend the War Claims Act of 1948, as amended. The general purpose of this bill is to provide, by the addition of section 18 to the War Claims Act of 1948, as amended, a German claims program for the benefit of nationals of the United States including the heirs-at-law of any such deceased national and wholly owned American partnerships, firms, corporations, or other legal entities. The bill proposes to compensate such nations for real or personal property losses resulting from nationalization, seizure, or other taking by Germany during World War II. Under the bill there is no restriction with respect to the location of such property which may have been nationalized, seized or taken. The only require ment is that it shall have been so taken by Germany or any agency or person acting for or on behalf of or upon instructions from the German Government. The question might well arise, therefore, as to the eligibility of a claim based upon a seizure by Germany's allies in World War II as well as the question of whether individual members of the enemy German military forces throughout the world in their looting and raiding operations, with respect to private prop |