enemy assets which have not been paid or authorized to be paid into the war claims fund." The Bureau of the Budget continues to hold that view. S. 2227 provides for the return of assets to individual former owners in the cases where humanitarian and foreign policy considerations most strongly indicate the desirability of such action. At the same time, S. 2227 does not involve the use of funds for this purpose beyond those estimated to be available in the accounts of the Office of Alien Property. For these reasons the Bureau of the Budget recommends the favorable consideration of this bill. 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 relative to the bill H. R. 6970 to amend the Trading With the Enemy Act, as amended, and the War Claims Act of 1948, as amended. This bill is identical with H. R. 6730, a bill introduced on June 8, 1955, at the request of the Secretary of State. As indicated in the transmittal letter from the Secretary of State to the Speaker, the Department of Justice participated in the preparation of the legislation, and the legislation represents the considered position of the administration. The purposes and effects of H. R. 6970 are discussed in detail in the Secretary of State's letter which is on file with the committee. Accordingly, the Department of Justice recommends enactment of this legis lation. The Bureau of the Budget has advised that there is no objection to the submission of this report. Sincerely, Hon. J. PERCY PRIEST, WILLIAM P. ROGERS, Deputy Attorney General. DEPARTMENT OF STATE, Washington, D. C., February 21, 1956. Chairman, Committee on Interstate and Foreign Commerce, House of Representatives. DEAR MR. PRIEST: I refer to your letter of February 9, 1956, requesting the Department's comments on H. R. 6970, and to my reply of February 15, 1956, stating that I would communicate with you further as soon as the bill had been considered by the Department. This bill appears to be identical in all respects to H. R. 6730 which was recommended by the administration. The Secretary commented on H. R. 6730 in his letter dated June 6, 1955, to the Vice President and Speaker of the House. The Department has nothing further to add to these comments at this time. The Bureau of the Budget advises that it has no objection to the submission of this report. Sincerely yours, THRUSTON B. MORTON, (For the Acting Secretary of State). 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 response to your request of February 9, 1956, for the views of the Foreign Claims Settlement Commission on the bill, H. R. 6970, entitled "A bill to amend the Trading With the Enemy Act, as amended, and the War Claims Act of 1948, as amended." This bill is identical in every respect with H. R. 6730 and S. 2227, both in the 84th Congress, upon which the Commission has expressed its views in response to the request of your committee and the Committee on the Judiciary in the Senate, respectively. The views of the Commission on the subject bill, H. R. 6970, would, therefore, be the same as those expressed in its reports on H. R. 6730 and S. 2227. A copy of the Commission's report on H. R. 6730 is enclosed for your information. Sincerely yours, WHITNEY GILLILLAND, Chairman. (NOTE. The report on H. R. 6730, referred to above, appears on p. 361.) Hon. J. PERCY PRIEST, DEPARTMENT OF STATE, Washington, D. C., February 27, 1956. Chairman, Committee on Interstate and Foreign Commerce, House of Representatives. DEAR MR. PRIEST: I refer to your letter of February 9, 1956, requesting the Department's comments on H. R. 6971, a bill to authorize the Attorney General to dispose of the remaining assets seized under the Trading With the Enemy Act prior to December 18, 1941, and to the acknowledgement of February 13. The Department of State considers that the legislation proposed in H. R. 6971 is essentially of a technical nature lying primarily within the purview of the Department of Justice. However, so far as the legislation provides for disposition of certain World War I claims of foreign nationals, the Department has no objection to its enactment from a foreign-policy point of view. The disposition envisaged by the bill appears to be an appropriate one, taking into account the smallness of the claims, their presumed abandonment, and the administrative impracticalities of any other solution. 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, THRUSTON B. MORTON, (For the Secretary of State). 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 the bill (H. R. 6971) to authorize the Attorney General to dispose of the remaining assets seized under the Trading With the Enemy Act prior to December 18, 9141. This bill is identical with H. R. 6909, on which the Department reported to the committee by letter dated July 7, 1955. That bill, in turn, was introduced at the request of the Attorney General. The reasons in support of its enactment were fully stated in the Attorney General's letter to the Speaker of the House of Representatives dated June 7, 1955, which letter, together with attachments, are presently in the committee files. For the reasons set forth in the above-mentioned correspondence, early and favorable committee consideration of this legislation would be appreciated. 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, House of Representatives, Washington, D. C. DEAR MR. PRIEST: This is in further response to your request of February 9, 1956, for the views of the Foreign Claims Settlement Commission on the bill, H. R. 6971, a bill to authorize the Attorney General to dispose of the remaining assets seized under the Trading With the Enemy Act prior to December 18, 1941. This bill is identical in every respect to H. R. 6909 and S. 2226, both in the 84th Congress. The Commission has previously expressed its views on H. R. 6909 in response to the request of your committee under date of September 30, 1955. The views of the Commission on the subject bill, H. R. 6971, would therefore,, be the same as those expressed in its report on H. R. 6909. It may be well to point out that a Subcommittee on the Trading With the Enemy Act, Committee on the Judiciary in the Senate, conducted public hearings on S. 2226, September 29, 1955. In the course of these hearings, representatives of the Department of Justice, which submitted the bill for consideration by the Congress, proposed an amendment to section 1 (c) which would revise that section so as to provide that any Rumanian assets transferred would be deposited directly into the Rumanian claims fund which was established by section 302 of Public Law 285, 84th Congress. Since the bill was introduced prior to the enactment of Public Law 285, no such provision was made. On the contrary, the bill provided that such Rumanian assets would be carried in accounts in the name of Rumania. The deposit of these balances in the Rumanian claims fund would, of course, increase the amount available for the payment of claims authorized by Public Law 285 to be filed by nationals of the United States against the Government of Rumania. These claims concern the nationalization of American-owned property by that Government prior to the enactment of the law and for certain World War II damages and other losses suffered by American nationals with respect to their property in that country. This program is administered by the Foreign Claims Settlement Commission. The expected balances in the Rumanian claims fund which would be derived from the liquidation of certain Rumanian assets seized and blocked by the United States pursuant to Executive Order 8389 of April 10, 1940, will not be sufficient to permit the payment of such claims in full. The Commission believes that any additions which can legitimately be made to that fund over and above the transfers thereto from the proceeds of World War II assets would be in the best interests of American claimants. The ultimate amount of funds available in the Rumanian claims fund is not expected to exceed $25 million. The amount of claims asserted against that fund may exceed $100 million. The Commission is advised that under the proposed amendment to section 1 (c) sponsored by the Department of Justice, there would be transferred the sum of $87,294.12. The question has been raised as to the equities of making pre-World War I Rumanian assets available for the payment of World War II claims, in other words, whether it would be appropriate to transfer to the Rumanian claims fund World War I assets to take care of World War II claims. This involves primarily, a matter of legislative policy upon which the Commission does not believe it can appropriately comment. It may be worth while to consider, however, that the question of World War I claims for war damage or war losses against the Government of Rumania raises the problem of whether there are any such claims by American nationals that could be asserted against the funds which are proposed to be transferred to the Rumanian claims fund established under Public Law 285, 84th Congress. The Commission is informed that there are probably no such claims and that, therefore, the transfer of such Rumanian funds as proposed in S. 2226 would not work to the disadvantage of any World War I claimants. Although the Commission in its report to your committee on the identical bill, H. R. 6909, took no position with respect to enactment of the measure, in its present form, it would, in view of the foregoing, support the amendment proposed by the Department of Justice to section 1 (c) of the bill, S. 2226. 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. TREASURY DEPARTMENT, Hon. J. PERCY PRIEST, Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: Reference is made to your request for the views of this Department on H. R. 6971 entitled "To authorize the Attorney General to dispose of the remaining assets seized under the Trading With the Enemy Act prior to December 18, 1941." The bill would provide for closing out the administration of World War I assets by the Office of Alien Property. It would transfer (1) unclaimed funds to miscellaneous receipts; (2) unliquidated property to the Treasury for liquidation; (3) accounts held for Iron Curtain countries and their nationals to the Treasury for administration subject to regulations administered by the Department of Justice; and (4) certain participating certificates representing the proceeds of withheld German property to the Treasury pending further disposition. The Treasury recommends favorable consideration for this bill. The Department has been advised by the Bureau of the Budget that there is no objection to the submission of this report to your committee. Very truly yours, W. RANDOLPH BURGESS, Acting Secretary of the Treasury. EXECUTIVE OFFICE OF THE PRESIDENT, Hon. J. PERCY PRIEST, BUREAU OF THE BUDGET, Washington, D. C., March 14, 1956. Chairman, Committee on Interstate and Foreign Commerce, House Office Building, Washington, D. C. MY DEAR MR. CHAIRMAN: This is in reply to your request for comments of the Bureau of the Budget with respect to H. R. 6971, a bill to authorize the Attorney General to dispose of the remaining assets seized under the Trading With the Enemy Act prior to December 18, 1941. H. R. 6971 is identical with H. R. 6909 a bill upon which the Bureau recommended favorable consideration in its letter of July 6, 1955, to your committee. Accordingly, the Bureau would have no objection to the enactment of this measure. Sincerely yours, ROWLAND HUGHES, Director. EXECUTIVE OFFICE OF THE PRESIDENT, BUREAU OF THE BUDGET, Washington, D. C., October 13, 1955. Hon. J. PERCY PRIEST, Chairman, Committee on Interstate and Foreign Commerce, MY DEAR MR. CHAIRMAN: This is in reply to your letter of August 2, 1955, requesting the views of the Bureau of the Budget with respect to H. R. 7733, to amend section 17 of the War Claims Act of 1948 so as to increase the classes of persons entitled to receive payment of certain claims under such section, and for other purposes. This bill would extend the category of contingent beneficiaries under section 17 to include, first, brothers and sisters, and then next of kin, if there is no widow, husband, child or parent. In addition it would provide for full payment of claims to replace the partial payments authorized in the current legislation. H. R. 7733 would extend the period for filing claims under section 17 to 1 year after the date of enactment, and provides for completion of all claims settlements affected by the bill within 2 years. The Chairman of the Foreign Claims Settlement Commission, in the report he is making to your committee on this bill, is recommending against its enactment for the reasons set out therein. This Bureau agrees with his concern that inequitable precedents not be established by legislation amending the War Claims Act of 1948. The Bureau of the Budget concurs with the views contained in the report of the Chairman of the Foreign Claims Settlement Commission and recommends that this measure not be enacted. Sincerely yours, PERCIVAL BRUNDAGE, Acting Director. UNITED STATES DEPARTMENT OF JUSTICE, Hon. J. PERCY PRIEST, 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 the bill (H. R. 7733) to amend section 17 of the War Claims Act of 1948 so as to increase the classes of persons entitled to receive payment of certain claims under such section, and for other purposes. During the Japanese occupation of the Philippine Islands the Japanese military authorities sequestered bank accounts and other credits in the Philippines owned by American individuals and business enterprises. Postwar decisions of the Philippine courts held that compliance with Japanese sequestration orders on the part of debtors resulted in the discharge of their obligations. As a result, American persons and firms whose credits were sequestered were without the means of recouping their losses. However, in some instances Philippine banks voluntarily reestablished sequestered deposit accounts and other of their obligations to Americans. Sections 17 of the War Claims Act of 1948, as amended (50 U. S. C. App. 2016) provides compensation from the war claims fund for American individuals and businesses suffering sequestration losses and for the Philippine banks which reestablished credits in favor of Americans. Section 17 provides that in cases of the death of an individual entitled to its benefits, payment shall be made to the surviving spouse, children, or parents of the decedent in a specified order of priority. Section 17 further provides that each claim allowed under its provisions in the amount of $500 or less shall be paid in full and that each allowed claim over $500 shall be paid in 2 installments, the first equal to $500 plus twothirds 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. Section 1 of the bill would increase the classes of persons eligible under section 17 as survivors of deceased individuals by qualifying brothers and sisters if there is no surviving spouse, child, or parent, and by qualifying the next of kin if there are no brothers or sisters. Section 2 of the bill would provide that all claims allowed under section 17 of the war claims act would be certified for payment in full out of the war claims fund. Section 3 would provide for a 1-year period of limitations for the filing of claims under the bill and section 4 would establish a 2-year period within which the Foreign Claims Settlement Commission is to wind up its affairs in connection with such claims. Whether the bill should be enacted involves a question of policy concerning which this Department prefers not to make any recommendation. It should be noted, however, that the funds for the payment of the benefits under the bill would be derived from the war claims fund which, pursuant to sections 12 and 13 of the War Claims Act of 1948, 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, et seq.), and not subject to return under the latter act. The Attorney General 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). This Department is not advised as to whether commitments under present law will exhaust the money now in the war claims funds and thus prevent the financing of this bill from that fund. If so, the ultimate financing of the bill |