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 the enactment of this bill, or other pending measures to broaden or increase the benefits payable under the War Claims Act, might involve the use of the same funds required for the financing of H. R. 6730, introduced by you, proposing a return of vested property to natural persons up to a maximum of $10,000. The financing of H. R. 6730 is proposed to be effected from assets in the hands of the Office of Alien Property of this Department now destined for ultimate transfer to the war claims fund under section 39 of the Trading With the Enemy Act. This last-mentioned measure was submitted as part of the President's program and the Department of Justice urges its enactment. 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. Hon. J. PERCY PRIEST, THE GENERAL COUNSEL OF THE TREASURY, Chairman, Committee on Interstate and Foreign Commerce. MY DEAR MR. CHAIRMAN: Reference is made to your letter of August 2, 1955, requesting a statement of the views of this Department on 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. The proposed legislation would amend section 17 of the War Claims Act of 1948 (1) to add two new classes of persons to those entitled to survivorship benefits for losses arising out of the sequestration of assets by the Japanese Government in the Philippines; (2) to provide payment of allowed claims in full instead of in installments; and (3) to extend the time for filing claims to 1 year from the date of enactment of the bill. It would also extend the time for winding up the affairs of the Foreign Claims Settlement Commission with respect to these claims to 2 years from the date of enactment of the bill. Since the subject of the bill is primarily the concern of the Foreign Claims Settlement Commission rather than the Treasury Department, this Department has no comments to make with respect to the bill. Very truly yours, FRED C. SCRIBNER, Jr., General Counsel. FOREIGN CLAIMS SETTLEMENT COMMISSION OF THE UNITED STATES, Hon. J. PERCY PRIEST, Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. PRIEST: This is in further response to your request for the views of the Foreign Claims Settlement Commission, on 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. As indicated in its title, the primary purpose of the bill is to increase the classes of persons eligible for benefits pursuant to section 17 of the War Claims Act of 1948, as amended, by extending survivorship benefits to the following additional classes of persons: (1) brothers and sisters (in equal shares) if there is no surviving widow, husband, child, or parent, and (2) the next of kin (in equal shares) under the laws of descent and distribution of the State in which the deceased was domiciled at the time of his death, if there is no widow, husband, child, parent, brother, or sister. The foregoing purpose would be accomplished by striking out the words "to the individual specified, and in the order provided, in subsection (d) of section 6 of the act" in subsection (c) of section 17 and substituting new language which would include the additional classes of survivors as indicated in the foregoing paragraph. Secondly, the bill would further amend section 17 of the War Claims Act by providing payment in full of any claim allowed pursuant to its provisions out of the war claims fund as established under section 13 of the act. The bill also provides that individuals entitled to benefits under section 17 of the act may have a period of 1 year after the enactment date within which to file a claim notwithstanding the present provisions of subsection (b) of section 17 of the War Claims Act of 1948, as amended, which provides that claims must be filed within 1 year after the date of enactment of this section (August 31, 1955). Finally, the bill provides that the Foreign Claims Settlement Commission shall wind up its affairs in connection with the settlement of all claims for benefits authorized pursuant to the proposed amendments, within 2 years after date of enactment. Section 17 of the War Claims Act authorizes the Foreign Claims Settlement Commission to provide for the payment of claims filed by members of the military or naval forces of the United States, nationals of the United States, and American-owned business firms for losses arising as a result of the sequestration of accounts, deposits, or other credits of such individual or legal entity in the Philippines by the Imperial Japanese Government during World War II. Also eligible for compensation are certain banks and financial institutions in the Philippines which reestablished the accounts, deposits, and other credits of the individuals and legal entities described above which had been sequestered by the Japanese. Subparagraph (c) provides that in the case of death of any individual entitled to payment of any claim under section 17, payment of such claim shall be made to the individual specified, and in order provided, in subsection (d) of section 6 of the War Claims Act. In this connection, survivors enumerated under subsection (d) of section 6 are as follows: "(A) Widow or husband if there is no child or children of the deceased; "(B) Widow or husband and child or children of the deceased, one-half to the widow or husband and the other half to the child or children of the deceased in equal shares; "(C) Child or children of the deceased (in equal shares) if there is no widow or husband; and "(D) Parents (in equal shares) if there is no widow, husband, or child." The attention of the committee is invited to other sections of the War Claims Act which limit the payment of compensation to classes of survivors identical to those enumerated under subsection (d) of section 6. The bill, H. R. 7733, would extend benefits to two additional classes of survivors under section 17 of the act but does not extend such benefits under other sections of the act. Inasmuch as the benefits available under the War Claims Act are not vested rights but are in the nature of gratuities, the classes of survivors as provided for under the War Claims Act are similar to those under other laws providing gratuities, such as laws appertaining to veterans. In this respect, it appears from the legislative history of the War Claims Act of 1948 that it was the intention of the Congress to limit survivorship benefits to dependents or immediate members of a family. The subject of extending benefits to other classes of survivors was discussed by the Commission in a series of interagency conferences within the executive branch during the early part of 1954 with respect to the recommendations relative to compensation of war claims contained in House Document No. 67, 83d Congress, 1st session. In this connection, the matter of other classes of survivors was considered and not recommended for inclusion inasmuch as such payments would raise serious inequities between primary, secondary, or other groups of survivors now authorized under the act. The difficulties which would be encountered in proving the next-of-kin relationship to a deceased person and the time consumed in documenting the proof of such a relationship would far outweigh the benefits which would be derived. Of approximately 300 claims considered to date under section 17 by the Commission, there were no cases involving a next of kin and only 2 cases involved brothers and sisters. The Commission believes that should the subject bill be enacted establishing brothers and sisters and the next of kin as eligible survivors under section 17 of the act that a dangerous precedent would be established not only with respect to other sections of the War Claims Act but, as well, to other legislation providing gratuity compensation. Section 17 (d) of the act provides that any claim allowed shall be paid in full up to and including $500 and that any award in excess of $500 shall be paid in 2 installments. The first installment shall be $500 plus 66% percent of the amount in excess of $500 and the amount of the second installment shall be contingent upon the moneys remaining in the war claims fund on September 1, 1956. If the sums remaining are sufficient the awards will be paid in full, if not, the second installments shall be reduced ratably. The method of payment under section 17 of the act as described in the foregoing paragraph was devised with the purpose in mind to enable every eligible claimant whose account or credit was sequestered to receive an equitable payment on his claim with respect to whatever amount was available in the war claims fund during the time the amendments to the War Claims Act were considered inasmuch as such amounts in the fund were limited. However, it is presently estimated that the amounts remaining in the war claims fund as of August 31, 1956, will be in excess of $15 million upon completion of all claim programs now authorized by Public Law 744. The proposal to extend the filing date under section 17 of the act to 1 year after the enactment date of the bill would, in effect, discriminate against those persons who have been informed by the Government, volunteer agencies, such as veterans service organizations, and other media, that the deadline for filing claims would expire on August 31, 1955. There is no basis on which the Commission can estimate the number of claims which would be filed should the subject bill be enacted. Consequently no estimate of its cost can be furnished. If the subject bill were to be enacted, the Commission would be required to maintain qualified personnel presently assigned to processing section 17 claims longer than the anticipated completion date of such claims, thus affecting the eventual assignment of such personnel to other claim programs authorized under Public Law 285, 84th Congress, and impeding the ability of the Commission in meeting the production schedules set forth in its budget justifications. The Commission has placed considerable emphasis on completion of its programs within the statutory deadlines and the imposition of this new proposal would tend to extensively prolong its functions in these matters. For the foregoing reasons, the Foreign Claims Settlement Commission opposes favorable consideration of the bill, H. R. 7733. 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. DEPARTMENT OF STATE, Washington, D. C., October 14, 1955. Hon. J. PERCY PRIEST, Chairman, Committee on Interstate and Foreign Commerce, House of Representatives. DEAR MR. PRIEST: Further reference is made to your letter of August 2, 1955, transmitting for the comment of the Department of State three copies of H. R. 7733, a bill 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, which has been introduced in the 84th Congress. Section 17 of the War Claims Act of 1948, as amended, authorizes the Foreign Claims Settlement Commission of the United States to receive and determine claims for lesses by American nationals, members of the United States Armed Forces, and American-owned business firms arising out of the sequestration of their bank accounts and other credits in the Philippines by Japanese authorities during World War II, and claims for reimbursement by banks or other financial institutions doing business in the Philippines which reestablished such sequestered accounts, deposits, or other credits. In the case of the death of any individual entitled to payment of any claim under section 17, payment would be made to the individual specified and in the order provided in subsection (d) of section 6 of the War Claims Act of 1948, as amended, except that no payment shall be made to any individual who voluntarily, knowingly, and without duress gave aid to or collaborated with or in any manner served any government hostile to the United States during World War II. The proposed legislation would amend section 17 by striking out "to the individual specified and in the order provided, in subsection (d) of section 6 of this Act" and by providing that in the case of the death of any individual entitled to the payment of any claim, payment be made only to or for the benefit of the following persons in the order named: "(1) Widow or husband if there is no child or children of the deceased; "(2) Widow or husband and child or children of the deceased, one-half to the widow or husband and the other half to the child or children of the deceased in equal shares; "(3) Child or children of the deceased (in equal shares) if there is no widow or husband; "(4) Parents (in equal shares) if there is no widow, husband, or child; "(5) Brothers and sisters (in equal shares) if there is no widow, husband, child, or parent; and "(6) The next of kin (in equal shares), under the laws of the State in which the deceased was domiciled at the time of his death, if there is no widow, husband, child, parent, brother, or sister." The proposed measure would further amend section 17 by providing that each claim allowed under that section be certified to the Secretary of the Treasury for payment in full out of the war claims fund, established by section 13 of the War Claims Act of 1948, as amended. It is also provided in the proposed bill that individuals entitled to benefits under the provisions of section 17 may file their claims within 1 year after the date of enactment of H. R. 7733, and that within 2 years after the date of enactment of H. R. 7733, the Foreign Claims Settlement Commission of the United States "shall wind up its affairs in connection with the settlement of all claims for benefits authorized under the amendments made by this Act." As you are aware, the category of claims cognizable under section 17 of the War Claims Act of 1948, as amended, is presently administered by the Foreign Claims Settlement Commission of the United States. The Department is not in possession of sufficient information to enable it to express an opinion respecting the necessity or desirability of the proposed legislation. 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 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. 7785) for the relief of Friederike Strachwitz. The bill would require the return to Mrs. Strachwitz (Friederike Strachwitz) of any right, title, interest, or property vested from her by Vesting Order No. 632, dated January 6, 1943 (copy enclosed), excepting funds already received by the Office of Alien Property on account of such vesting. Vesting Order No. 632 vested the right, title, and interest of Mrs. Strachwitz in certain property held in trust under an inter vivos trust established by her and in certain property held in trust under a testamentary trust created under the will of the late Edith McAllister Newlands. Vesting Order No. 632 also vested the interests of Mrs. Strachwitz' husband, Count Alexander Strachwitz, and their 14 children in the property held under the 2 aforesaid trusts. Under the terms of the inter vivos trust, Mrs. Strachwitz is the life-income beneficiary with a general testamentary power of appointment. The annual income, after taxes, approximates $30,000, and as of June 30, 1955, the Office of Alien Property held a net amount, after taxes and expenses, of $331,995.42 received on account of the life-income provisions. This sum, together with any further periodic income payments received by the Office of Alien Property prior to possible enactment of the bill, would be retained. Upon enactment of this bill Mrs. Strachwitz would be entitled under the terms of the inter vivos trust to receive the periodic income payments from the trust which accrue subsequent to enactment, to withdraw during her lifetime up to 81964-5625 50 percent of the corpus of the trust to receive the corpus if her husband predeceases her, and to make a testamentary direction for disposition of the entire corpus. Under the terms of the trust, if no testamentary disposition were made by Mrs. Strachwitz, the corpus would devolve, on her death, to her heirs at law and next of kin. Mrs. Strachwitz' interest in the testamentary trust as well as the interests therein of her children are contingent interests. Both primary life beneficiaries are living and Mrs. Strachwitz' right would mature only in the event she should survive them. Section 33 of the Trading With the Enemy Act, as amended, provides that no property may be returned unless a claim with respect thereto was filed by February 9, 1955, or within 2 years from the date of vesting, whichever was later. No notices of claim have been filed with the Office of Alien Property by or on behalf of Mrs. Strachwitz, her husband, or her children, and the time for filing such claims has expired. While no claims have been filed, information contained in the files of the Office of Alien Property discloses that Friederike Strachwitz, nee von Bredow, was born in Bremen, Germany, on November 2, 1906. She married Count Alexander Strachwitz, a citizen of Germany by birth, and resided in Germany until she entered the United States on June 16, 1947, on an immigration visa issued to her as a German citizen at Stockholm, Sweden. It appears that she received United States citizenship in 1952. There is no information to the effect that Friederike Strachwitz was a victim of enemy oppression within the meaning of the proviso of section 32 (a) (2) (D) of the act, which permits a return of vested property to such victims. It appears that Count Strachwitz, her husband, was a member of the Nazi Party and an officer in the German Army. Since under existing law Mrs. Strachwitz is ineligible for the return of any property vested by Vesting Order No. 632, the enactment of this bill would accord her a preference over the thousands of German citizens and residents whose property was similarly vested by the United States under the provisions of the Trading With the Enemy Act, as amended, and more particularly it would accord her a preference over those individuals of German origin who, like her, emigrated to this country after World War II. There appears to be no basis for singling out this case for preferential treatment, and to do so would establish an undesirable precedent and invite requests for enactment of other similar private relief bills. Accordingly, the Department of Justice is unable to recommend enactment of the bill. 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. UNITED STATES OF AMERICA OFFICE OF ALIEN PROPERTY CUSTODIAN Vesting Order No. 632 Re certain property held in trust by Union Trust Co. of the District of Columbia, Washington, D. C. Under the authority of the Trading With the Enemy Act, as amended, and Executive Order No. 9095, as amended, and pursuant to law, the undersigned, after investigation: 1. Finding that Friederike Strachwitz, Frances Strachwitz, Hubertus Strachwitz, Rosie Strachwitz, Christian Strachwitz, and Count Alexander Strachwitz, whose last known addresses were represented to the undersigned as being Gross Reichnau, Sorau Nieder/Lausitz, Germany, are citizens of Germany and are nationals of a designated enemy country (Germany); 2. Finding that the property described as follows: (a) All right, title, interest, and estate, both legal and equitable, of each and all of the aforesaid persons and of each and all other nationals, whomsoever they may be, of any and all designated enemy countries, in and to that certain property held in trust by Union Trust Co. of the District of Columbia, Washington, D. C., as trustee under a trust indenture dated February 22, 1927, executed by Friederike von Bredow, Count Alexander Strachwitz and |