Waldemar Leopold von Bredow and by said trust company, and under a written agreement, dated May 12, 1930, executed by Frederike Strachwitz, Count Alexander Strachwitz and said trust company for the benefit of Friederike von Bredow, now Freiederike Strachwitz; (b) 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 countres, in and to that certain property held in trust by Union Trust Co. of the District of Columbia, as trustee under the will of Edith McAllister Newlands of December 29, 1933, and the codicil thereto of December 24, 1936, for the benefit of Friederike Strachwitz and her children; is property within the United States owned or controlled by nationals of a designated enemy country (Germany) or countries; 3. Determining that to the extent that such nationals are persons not within a designated enemy country, the national interest of the United States requires that such persons be treated as nationals of the aforesaid designated enemy country (Germany) or countries; 4. Having made all determinations and taken all action, after appropriate consultation and certification, required by said Executive order or act or otherwise; and 5. Deeming it necessary in the national interest; hereby vests in the Alien Property Custodian the property described in subparagraph 2 hereof, to be held, used, administered, liquidated, sold or otherwise dealt with in the interest of and for the benefit of the United States. Such property, and any or all of the proceeds thereof, shall be held in an appropriate special account or accounts, pending further determination of the Alien Property Custodian. This shall not be deemed to limit the powers of the Alien Property Custodian to return such property or the proceeds thereof, or to indicate that compensation will not be paid in lieu thereof, if and when it should be determined that such return should be made or such compensation should be paid. Any person, except a national of a designated enemy country, asserting any claim arising as a result of this order may file with the Alien Property Custodian a notice of his claim, together with a request for a hearing thereon, on Form APC-1, within 1 year from the date hereof, or within such further time as may be allowed by the Alien Property Custodian. Nothing herein contained shall be deemed to constitute an admission of the existence, validity or right to allowance of any such claim. The terms "national" and "designated enemy country" as used herein shall have the meanings prescribed in section 10 of said Executive order. Executed at Washington, D. C., on January 6, 1943. [OFFICIAL SEAL] LEO T. CROWLEY, Alien Property Custodian. 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 for the views of the Foreign Claims Settlement Commission on the bill, H. R. 7785, a bill for the relief of Friederike Strachwitz. The subject bill directs the President or his designee to "transfer and deliver to Friederike Strachwitz any right, title, interest, or property in or of said Friederike Strachwitz" which was vested in accordance with the provisions of the Trading With the Enemy Act, as amended, and Executive Order 9095, as amended, notwithstanding the provisions of the Trading With the Enemy Act. The bill further provides that no return shall be made of any moneys paid periodically as income to a trust under the vesting order to the Alien Property Custodian or the Attorney General by the Union Trust Co. of the District of Columbia. Additionally the bill, H. R. 7785, provides that said Friederike Strachwitz file a claim for the return of such property and interests within 60 days succeeding the enactment of this act. Under the present provisions of section 32, Trading With the Enemy Act, property vested on or after December 18, 1941, or interest in the net proceeds thereof, may be returned by administrative processes to certain categories of persons after filing a notice for the return (in the form prescribed by the President) of such property. Section 9 (a) of the act provides that any person not an enemy of ally of the enemy, claiming any interest, right, or title in property transferred to or seized by the Office of Alien Property may bring a suit before the United States district court of the appropriate district for return of the property, after filing notice of claim with the Office of Alien Property, if an application for return of property has been filed, and return has been made within 60 days, or if no application for return has been filed (50 U. S. C. App. 9). It is further provided that pending the disposition of the suit, the property in question shall be returned by the Office of Alien Property. It is provided in section 33 of the Trading With the Enemy Act (50 U. S. C. App. 33), as amended, that notice of claim must be filed by August 9, 1948, in the case of property vested prior to December 18, 1941, and not later than February 9, 1955, or 2 years from the vesting of the property or interest in respect of which the claim is made, whichever is later, in the case of property vested on or after December 18, 1941, in order that return may be made either under section 9 or section 32. Section 39 of the Trading With the Enemy Act provides that the net proceeds remaining upon completion of administration, liquidation, and disposition of property and interests of Germany and Japan, and the nationals thereof, shall be covered into the Treasury "at the earliest practicable date." Section 13 (a) of the War Claims Act of 1948, as amended, created on the books of the Treasury a trust fund known as the war claims fund, which consists of "all sums covered into the Treasury pursuant to the provisions of section 39 of the Trading With the Enemy Act of 1917, as amended." Claims payable under the War Claims Act of 1948, as amended, by the Foreign Claims Settlement Commission, are payable from the war claims fund, as well as are certain claims payable by the Bureau of Employees' Compensation, Department of Labor. In this connection, amounts remaining in the war claims fund as of August 31, 1955, will be in excess of $15 million upon completion of all claims programs presently authorized under the War Claims Act of 1948, as amended. The Foreign Claims Settlement Commission is not, however, familiar with the facts concerning the claim involved in the subject bill since it is not within its jurisdiction. The Foreign Claims Settlement Commission, therefore, has no interest in this bill other than as it relates to the war claims fund. In view of the present amounts available in such fund, this Commission would have no comment to offer on the bill in question. 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. Washington, D. C., October 4, 1955. Hon. J. PERCY PRIEST, Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, House Office Building, Washington, D. C. MY DEAR MR. CHAIRMAN: This is in reply to your request for the comments of this Office with regard to H. R. 7785, for the relief of Friederike Strachwitz. This bill would require the return to Mrs. Strachwitz (Friederike Strachwitz) of any right, title, interest, or property vested from her by vesting order 632, excepting funds already received by the Office of Alien Property on account of such vesting. The executive branch is aware that the vesting program in the United States has resulted in hardships to many of the former owners of German and Japanese assets. Executive branch concern about these hardships led to the submission to the Congress of draft legislation based upon full and careful consideration of the problems involved. Pending bills, S. 2227 and H. R. 6730, represent the introduced version of draft legislation submitted to the Congress by the Department of State on behalf of the administration. These bills authorize a limited return of vested German and Japanese assets to their former owners and the limited settlement of certain war claims of United States citizens against Germany. They deal with the problem on an overall basis, and, if enacted, would afford to individuals as large a measure of relief as appears possible, taking into consideration the availability of funds as well as the interests of the remaining American war claimants against Germany. The Bureau of the Budget does not favor private relief legislation for each separate case. It therefore recommends against enactment of H. R. 7785 and recommends, instead, that the Congress give early consideration to S. 2227 and H. R. 6730, bills which deal with the problem on an overall basis. DEAR MR. PRIEST: Further reference is made to your letter of August 2, 1955, requesting a report on H. R. 7785, a bill for the relief of Friederike Strachwitz. By the War Claims Act of 1948 the Congress directed that all German and Japanese assets in the United States, with certain minor exceptions, be vested and retained by the United States without compensation to the former owners. In addition, such act gave priority to the use of the net proceeds of liquidation of the retained assets for the payment to certain categories of war claimants against Germany and Japan. The Department has been informed that in pursuance of this act the Alien Property Custodian and his successor, the Attorney General, have issued approximately 18,000 vesting orders in respect of German and Japanese assets and have advanced a total of $225 million from the proceeds of the liquidation of the assets for the payment of war claims pursuant to the provisions of the act. The Department is aware that the vesting program in the United States has resulted in hardships to many of the former owners of the assets. The alleviation of these hardships was one of the major considerations motivating the Department and the other interested agencies of the executive branch in the submission to the Congress recently of proposals for a limited return of vested German and Japanese assets. The draft bill which accompanied these proposals and which was introduced in the House as H. R. 6730 was designed to deal wtih the question of hardship on an overall basis and to afford as large a measure of relief to these individuals as possible, taking into consideration the availability of funds as well as the interests of the remaining American war claimants against Germany. The Department considers that it would be impracticable to attempt to deal with hardship cases by separate legislation for each case and is, therefore, unable to recommend favorable consideration of H. R. 7785 in view of the legislation that has been proposed. The Bureau of the Budget advises that there is no objection to the submission of this report. Sincerely yours, Hon. J. PERCY PRIEST, THURSTON B. MORTON, TREASURY DEPARTMENT, GENERAL COUNSEL, Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, House Office Building, Washington, D. C. MY DEAR MR. CHAIRMAN: Reference is made to your letter of August 2, 1955, enclosing a copy of H. R. 7785, a bill for the relief of Friederike Strachwitz, and requesting the views of this Department on the proposed legislation. The proposed legislation would provide that the President or the officer or agency designated by him pursuant to section 32 of the Trading With the Enemy Act, notwithstanding the provisions of such act, shall return to Friederike Strachwitz, on certain conditions, such property of Friederike Strachwitz as was vested in or transferred to the Alien Property Custodian or Attorney General by a vesting order issued under the Trading With the Enemy Act. Since it is believed that the subject of the proposed legislation is primarily the concern of the Department of Justice rather than the Treasury Department, this Department has no comments to make with respect to the bill. Very truly yours, Hon. J. PERCY PRIEST, JOHN K. CARLOCK, Acting General Counsel. EXECUTIVE OFFICE OF THE PRESIDENT, BUREAU OF THE BUDGET, Washington, D. C., June 6, 1956. Chairman, Committee on Interstate and Foreign Commerce, MY DEAR MR. CHAIRMAN: This is in reply to your letters of March 2 and March 9, 1956, requesting the views of this Bureau with respect to H. R. 9584 and H. R. 9749, respectively, identical bill to amend the War Claims Act of 1948 to provide for certain hearings before the Foreign Claims Settlement Commission at locations convenient to claimants; to provide that claimants shall be afforded the right to examine evidence in the possession of the Commission, and to examine and cross-examine witnesses; to provide judicial review of certain actions of the Commission; and for other purposes. The principal purpose of the bill is to provide hearings and judicial review before the Foreign Claims Settlement Commission and judicial recourse in the courts for claimants of Korean prisoner-of-war benefits who are denied awards on the grounds that they "voluntarily, knowingly, and without duress, gave aid to or collaborated with or in any manner served any such hostile force." 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 concurs with the views contained in this report and recommends that this measure not be enacted. Sincerely yours, PERCY RAPPAPORT, Assistant Director. Hon. J. PERCY PRIEST, Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, Washington, D. C. JUNE, 5, 1956. DEAR MR. CHAIRMAN: This is in response to your request for the views of the Department of Justice concerning the bill (H. R. 9584)1 to amend the War Claims Act of 1948 to provide for certain hearings before the Foreign Claims Settlement Commission at locations convenient to claimants; to provide that claimants shall be afforded the right to examine evidence in the possession of the Commission, and to examine and cross-examine witnesses; to provide judicial review of certain actions of the Commission; and for other purposes. Section 6 (e) of the War Claims Act of 1948, as amended, provides for the payment of cash benefits to American servicemen who were held as prisoners of war during the Korean hostilities except those who "voluntarily, knowingly, and without duress, gave aid to or collaborated with or in any manner served any * * * hostile force." Section 5 (g), which contains a similar exception with respect to collaborators, provides for the payment of cash benefits to American civilians who were captured during the Korean hostilities or went into hiding to avoid capture. Section 11 provides that the decisions of the Foreign Claims Settlement Commission in respect to claims filed under the War Claims Act of 1948 are final and not subject to judicial review. The bill would amend the War Claims Act of 1948 as amended by adding a new section thereto (sec. 18) which would permit reapplication for benefits by a person whose claim was either denied or only partially allowed on the direct or 1 Identical report on H. R. 9749. indirect ground that such person collaborated with any hostile force or enemy of the United States as set out in section 5 (g) and 6 (e) of the act. The provisions of this new section would apply to past as well as future claims. The bill also would make the provisions of section 11 of the act, as amended, inapplicable to claims filed under section 6 (e) of the War Claims Act, as amended, and those filed under the new proposed section 18. It also would make provision with respect to hearings before the Commission and for judicial review of the Commission determinations. It would provide, among other things, that claimants shall have the right to cross-examine all witnesses on whose evidence the Commission has relied. It would also include a provision that the Commission shall disregard the evidence of any witnesses not made available for cross-examination by the claimants. In making the provisions of section 11 inapplicable to claims filed under section 6 (e) of the War Claims Act, as amended, and those filed under a proposed new section 18, the bill represents a departure from the principle of finality of determination embodied in existing law. In view of the fact that the allowance of these claims is purely a matter of bounty or grace, as distinguished from the recognition of any legal obligation of the Government, it is believed that the existing policy of not making such determinations subject to judicial review should remain undisturbed. Furthermore, the provisions of the bill as to cross-examination of witnesses and requiring the Commission to disregard evidence given by any witnesses not made available for cross-examination by claimants would present serious difficulties in the administration of this program. Existing law prohibits the allowances of claims made by any persons who voluntarily collaborated with any hostile force. Obviously, in many instances information as to a claimant's collaboration can be obtained only from confidential sources, such as fellow prisoners, who would be unwilling to testify publicly against a claimant. In view of the foregoing, the Department of Justice is unable to recommend enactment of this bill. 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., March 22, 1956. Chairman, Committee on Interstate and Foreign Commerce, House of Representatives. DEAR MR. PRIEST: Further reference is made to your letter of March 2, 1956, transmitting for the comment of the Department of State three copies of H. R. 9584, a bill to amend the War Claims Act of 1948 to provide for certain hearings before the Foreign Claims Settlement Commission at locations convenient to claimants; to provide that claimants shall be afforded the right to examine evidence in the possession of the Commission, and to examine and cross-examine witnesses; to provide judicial review of certain actions of the Commission; and for other purposes. The proposed measure relates to the subject of hearings before the Foreign Claims Settlement Commission of the United States under section 11 of the War Claims Act of 1948, as amended, with respect to certain claims denied or approved for less than the full allowable amount by that Commission. Since this matter is not one within the province of the Department of State and since further the Department does not have sufficient information concerning the hearings, the Department is not in a position to comment on the necessity or desirability of the proposed legislation. The Department has been informed by the is no objection to the submission of this report. Sincerely yours, Bureau of the Budget that there ROBERT C. HILL, Assistant Secretary (For the Secretary of State). |