The Department has no comments to make with respect to the bill. DAVID W. KENDALL, General Counsel. Hon. J. PERCY PRIEST, DEPARTMENT OF STATE. Washington, D. C., September 30, 1955. Chairman, Committee on Interstate and Foreign Commerce, House of Representatives. DEAR MR. PRIEST: Further reference is made to your letter of April 4, 1955, transmitting for the comment of the Department of State 3 copies of H. R. 5395, a bill to provide that members of the Armed Forces shall be paid compensation at the rate of $2.50 per day for each day spent in hiding during World War II or the Korean conflict to evade capture by the enemy, which has been introduced in the 84th Congress. The proposed legislation would amend section 6 of the War Claims Act of 1948, as amended, by extending the authority of the Foreign Claims Settlement Commission of the United States to receive, determine, and provide for the payment of compensation of claims of a new category of claimants designated as "evader." An evader is defined as a member of the Armed Forces of the United States who, during the period beginning December 7, 1941, and ending August 16, 1945, and during the period beginning June 25, 1950, and ending July 27, 1953, being in immediate danger of capture by the enemy, went into hiding for a period in excess of 10 days to avoid capture, or having escaped from confinement as a prisoner of war went into hiding for a period in excess of 10 days to avoid recapture; and who was discharged or released under honorable conditions from the Armed Forces of the United States after having been an evader, or who is serving on active duty with such forces on the date of the enactment of the proposed measure, or who died while so serving. With respect to members of the Armed Forces of the United States who participated in World War II, the term "evader" is further defined as one who, if living on the date of the enactment of the proposed measure, is a citizen, national, or resident of the United States, or if dead on such date, died a citizen or resident. It is further proposed under H. R. 5395 to allow compensation at the rate of $2.50 for each day on which an evader concealed himself to prevent capture or recapture by the enemy. Claims would be paid to the person entitled thereto, and, in the case of the death of the person so entitled, to or for the benefit of certain other beneficiaries specified and in the order prescribed in paragraph (4) of subsection (d) of section 6 of the War Claims Act of 1948, as amended. Claims comprehended by the proposed measure are required to be filed with the Foreign Claims Settlement Commission within 1 year from the date of enactment of H. R. 5395. To carry out the purposes of H. R. 5395, the proposed legislation would authorize that claims of evaders arising out of World War II be paid out of the war claims fund established by section 13 of the War Claims Act of 1948, as amended, and would also require that the Foreign Claims Settlement Commission on or before August 31, 1956, estimate and certify to the Secretary of the Treasury the amount which will be required to pay all such claims filed under the bill which have not been paid as of that date. The amount so certified is not to be included in the computation made under paragraph (2) of subsection (d) of section 17 of the War Claims Act of 1948, as amended. Claims of evaders arising out of the hostilities in Korea would be paid out of sums appropriated for that purpose. The category of claims covered by H. R. 5395 arising during the period beginning December 7, 1941, and ending August 16, 1945, is only one of a large number of categories of claims arising out of World War II with respect to which compensation has not been provided. As you are aware, section 8 of the War Claims Act of 1948 required the War Claims Commission to prepare a report for submission to the Congress with recommendations concerning war claims not authorized to be paid under existing legislation. The final and supplementary report of that Commission, which contains comprehensive recommendations for the disposition of claims arising from the war, was submitted to the Congress on January 16, 1953 (H. Doc. 67, 83d Cong., 1st sess.). No specific recommendation is made in that report with respect to claims of evaders, as defined in the proposed bill, who participated in World War II. With respect to the category of claims mentioned in the proposed legislation arising during the period of hostilities in Korea, the Department is not in possession of sufficient information to enable it to express an opinion respecting the necessity or desirability at this time of dealing with claims of members of the Armed Forces of the United States arising out of the Korean conflict in addition to those presently authorized to receive consideration and compensation under Public Law 615 (83d Cong., approved August 21, 1954). That act extends the World War II prisoner-of-war benefits under section 6 of the War Claims Act of 1948 to American prisoners of war captured and held during the hostilities in Korea, such payments to be made out of appropriated funds rather than out of the war claims fund. As the committee is doubtless aware, information necessary for the formulation of a sound opinion with respect to the desirability of the proposed measure is much more readily available to the Department of Defense than to this Department. This Department understands that a report has been submitted to the committee by the Department of the Navy setting forth the views of the entire Defense Department to the effect that the enactment of H. R. 5395 is not regarded with favor by that Department. In the light of that report and of the considerations set out therein, this Department would not be in a position to recommend the enactment of the proposed bill. The Department has been informed by the Bureau of the Budget that there is no objection to the submission of this report. Sincerely yours, Hon. J. PERCY PRIEST, FLORENCE KIRLIN, Acting Assistant Secretary DEPARTMENT OF THE NAVY, OFFICE OF THE JUDGE ADVOCATE GENERAL, Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: Your request for comment on the bill H. R. 5395, to provide that members of the Armed Forces shall be paid compensation at the rate of $2.50 per day for each day spent in hiding during World War II or the Korean conflict to evade capture by the enemy, has been assigned to this Department by the Secretary of Defense for the preparation of a report thereon expressing the views of the Department of Defense. The purpose of this measure is to amend the War Claims Act of 1948 to authorize payment from the War Claims Fund to a member or former member of the Armed Forces of compensation at the rate of $2.50 per day for each day during World War II or during the Korean conflict on which he concealed himself to prevent capture or recapture by the enemy, if such concealment exceeded 10 days. The War Claims Act of 1948 authorized claims by American civilians and military personnel against the war claims fund. The claims of civilians were based on the theory of detention of the person by the enemy and could be filed either where the person had been interned or went into hiding to evade capture. Claims of military personnel were authorized only in the event of capture and the subsequent violation of their rights under the Geneva Convention by their captors. The distinction between the two groups relative to hiding from the enemy seems to be a valid one, not only because of the difference in the theory of their claims, but also because military personnel are required to assume greater risks than civilians and in most cases would be expected to fight until death or capture. The bill, if enacted, would set a precedent which in all fairness should be applied to any future wars in which the United States might be involved. Should such a precedent result in permanent legislation applicable to all wars, a monetary incentive would be created for members of the Armed Forces to desert or absent themselves without authority to avoid the danger of combat and then claim that they were in hiding to prevent capture. In this event, the determination of which claims are bona fide will be most difficult. Furthermore, the lapse of time since World War II will create serious evidentiary problems in the administration of the law. Rather than enlarge the benefits for military personnel under the War Claims Act of 1948 in the manner provided in the bill, it is believed that benefits should be restricted to those for prisoners of war which are based on violation of rights provided by the Geneva Convention. In view of the foregoing, the Department of the Navy, on behalf of the Department of Defense, opposes the enactment of H. R. 5395. This report has been coordinated within the Department of Defense in accordance with procedures prescribed by the Secretary of Defense. The Department of the Navy has been advised by the Bureau of the Budget that there is no objection to the submission of this report to the Congress. Sincerely yours, IRA H. NUNN, Rear Admiral, United States Navy, Judge Advocate General of the Navy 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 concerning the bill (H. R. 5395) to provide that members of the Armed Forces shall be paid compensation at the rate of $2.50 per day for each day spent in hiding during World War II or the Korean conflict to evade capture by the enemy. This bill would amend section 6 of the War Claims Act of 1948, as amended (50 U. S. C. App. 2005) by authorizing the payment of compensation to a new category of war claimants. The persons benefited would be members of the United States Armed Forces during World War II or the Korean hostilities who concealed themselves in excess of 10 days to avoid capture by the enemy or who, having escaped from confinement by the enemy, concealed themselves in excess of 10 days to avoid recapture. Compensation would be paid at the rate of $2.50 each day. Claims for compensation would have to be filed within 1 year after enactment of the bill. The payments to World War II claimants under the bill would be made from the money in the War Claims Fund established by sections 12 and 13 of the War Claims Act of 1948. These payments would have priority over the last installment of payments to be made to claimants under section 17 of the act for losses suffered by virtue of sequestration measures imposed by the Japanese occupation authorities in the Philippine Islands. Payments to veterans of the Korean hostilities would be made from appropriated funds. Whether the bill should be enacted presents a question of legislative policy on which the Department of Justice prefers to make no recommendation. The Bureau of the Budget has advised that there is no objection to the submission of this report. Sincerely, WILLIAM P. ROGERS, 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: Further reference is made to your letter dated May 3, 1955, requesting the report and comment of the Foreign Claims Settlement Commission with respect to H. R. 5840, a bill to amend the Trading With the Enemy Act. This bill, introduced April 26, 1955, is designed to amend the Trading With the Enemy Act of 1917, as amended, to provide for the full return of all vested German assets presently held by the Office of Alien Property, Department of Justice, with certain limited exceptions. Additionally it would authorize the payment in full of claims of nationals of the United States for the loss, damage or destruction of property, real or personal, located within the geographical boundaries of Germany as they existed on December 7, 1941, or within any area under the control of Germany on that date. Specifically, the bill proposes to add 17 new sections to the Trading With the Enemy Act numbered from section 40 through section 56. Sections 40 through 47 relate to the return of assets while sections 48 through 56 govern the matter of claims. Sections 40 through 47, relating to the return of vested enemy assets, would not be the concern of the Foreign Claims Settlement Commission. For that reason the Commission refrains from commenting on this portion of the bill. The same is true with respect to provisions of the bill which would establish a new Federal agency to be known as the Vested Property Commission to study problems arising between the United States and other countries with respect to intercustodial conflicts. Proposed new sections 48 through 56 would authorize the Foreign Claims Settlement Commission to "receive, examines, adjudicate and render awards and decisions" with respect to claims authorized in proposed new section 48. Such claims are described in that section as those for the loss, dispossession, destruction or damage to property, real or personal, owned by citizens or nationals of the United States or their legal predecessors in title, or in which they had an insurable interest. Compensable losses would also include loss of income normally derived from such property. It would be required under the bill that such claims be paid in full on a replacement cost basis "as of the date of award or judgment therefor (as the latter are hereinafter defined). The definition referred to is not found in the proposed bill. Although the bill would authorize claims based upon eviction or dispossession from property and for loss of income normally derived from such property, property damage claims are required to have arisen as a direct consequence of hostilities in World War II, "or of conduct causally connected with the existence of such hostilities" or "as a consequence of confiscation, dispossession, larceny or duress (with or without violence) by the forces or authorities of Germany or its allies or by their individual members or by any individual national or nationals of Germany or its allies (whether or not pursuant to orders).” The Commission believes these provisions for the most part would present many administrative difficulties. Elements of proof, verification of loss, valuation, and ownership are among those factors which fall within this category. The bill contains detailed but ambiguous provisions for appeals to the courts for a redetermination of claims which would tend to prolong the settlement of such claims indefinitely and constitute an undue expense to the taxpayers. Moreover, these provisions overlook the precedents established in the statutes presently administered by the Commission to the effect that its determinations are final and conclusive. Finally, the bill would provide for the payment of such claims out of certain specified sums of money. The Treasury Department is the appropriate agency to comment on these sources of payment since most of them appear to have their origin in certain international agreements and alleged profits derived from such agencies as the War Damage Corporation. Among other things, the bill is discriminatory against nationals of the United States who suffered property losses in World War II which occurred in countries outside of Germany. The Department of State on June 7, 1955, submitted to the Congress as a part of the President's international claims program, draft legislation which would authorize the payment of claims of nationals against the United States resulting from World War II in a number of European countries including Germany. This proposal was introduced in the House June 8, 1954, as H. R. 6730, and a complete explanation of its provisions may be found in the Congressional Record for June 8, 1955, volume 101, No. 95, beginning at page A4062. This bill, as the executive branch proposal in these respects, has the complete approval and support of the Foreign Claims Settlement Commission. It was developed after consideration of all of the technicalities involved in such a program as well as the best interests of Americans who suffered such losses including those who lost their lives or became disabled by the sinking of such ships as the Athenia in 1939. For the foregoing reasons, and particularly in the light of the pendency of H. R. 6730, the Commission is opposed to the enactment of H. R. 5840 as drafted. 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 CONGRESS PRIEST: This is in response to your request for the views of the Department of Justice concerning the bills (H. R. 5840 and H. R. 6088) to amend the Trading With the Enemy Act. These bills are identical with one exception which is noted below. Section 1 of the bills would add new sections 40-47 to the Trading With the Enemy Act, as amended, for the purpose of effecting a general return of property vested under that act after December 7, 1941. Section 2 would make technical amendments to the Trading With the Enemy Act necessitated by the addition of the new sections. Immediately following section 2 of the bills are provisions designated as sections 48-56, which, although not so identified, are obviously intended to be new sections 48-56 of the Trading With the Enemy Act. These sections in general would provide compensation to American nationals who suffered property losses after December 7, 1941, in Germany or German-controlled areas as the result of war, confiscation, or nationalization. The Foreign Claims Settlement Commission is designated to receive and pass upon the claims for compensation. At the outset it should be noted that the Trading With the Enemy Act, which is administered by the Attorney General, is concerned only with vested property and is not the proper statute to which to add the sections in the bills designated 48-56. These sections would best be made part of the War Claims Act of 1948, as amended, which deals with certain war claims against Germany and Japan and is administered by the Foreign Claims Settlement Commission. The subject matter of the proposed sections 48-56 is not within the area of operations of the Department of Justice and their provisions will not be discussed herein. This report, therefore, will relate to the portions of the subject bills dealing with property vested under the Trading With the Enemy Act, as amended. The bills in general would authorize the return of all property, or its proceeds, vested under that act after December 7, 1941, except (1) the property of enemy governments other than Italy, (2) the property of persons and firms behind the Iron Curtain, (3) the property of natural persons convicted of war crimes, (4) property which if returned would be seized or treated by a foreign government as enemy property, and (5) property subject to transfer to the Philippine Government under the Philippine Property Act of 1946. Return would be made to the owner at the time of vesting, or to the legal representative or successor of such owner. The "record holding or title ownership as the case may be of [the vested] property at the time of vesting" would be conclusive in determining the owner. In the event that a postvesting compromise of a claim to any property had taken place prior to the enactment of the bills, return thereunder would be conditioned upon the claimant's tender, without interest, of any amount he had received in compromise. There is one proviso in H. R. 6088 which is not contained in H. R. 5840. That proviso would prohibit any returns of vested property to nationals of the Federal Republic of Germany until after the President determines that satisfactory arrangements have been made by the Federal Republic to meet its obligations under the London Debt Settlement Agreements of 1953. In view of the fact that $225 million of vested assets has been used to pay the claims of American prisoners of war and other persons under the War Claims Act of 1948, as amended, the bills would authorize the appropriation from the Treasury of such sums as may be required to satisfy claims for return under their provisions. All funds remaining after administration of the Trading With the Enemy Act, as amended, would be paid into the Treasury. Persons who have already filed claims for return with the Attorney General under existing legislation would not be required to file again. Other claimants would have a year within which to file. |