Hon. J. PERCY PRIEST, COMPTROLLER GENERAL OF THE UNITED STATES, Chairman, Committee on Interstate and Foreign Commerce, House of Representatives. DEAR MR. CHAIRMAN: Further reference is made to your letter of March 9, 1956, acknowledged March 12, requesting a report concerning H. R. 9749. The bill would amend the War Claims Act of 1948 to provide for certain procedural changes in regard to claims filed by civilian internees and American prisoners of war captured and held during the hostilities in Korea. Specifically, the bill would make section 11 of the act inapplicable to those claims filed under subsection (e) of section 6 and would add a new section 11A which would permit a claimant whose claim is denied or allowed for less than the full amount to examine the evidence upon which the Commission based its determinations. In addition, the claimant would be entitled to a hearing before the Commission and would be granted the right to cross-examine all witnesses on whose evidence the Commission relied in denying his claim, or in disapproving it in part. If not satisfied with the decision of the Commission after a hearing the claimant would be authorized to request a court to review the decision of the Commission. The bill would also add a new section 18 which would permit any person whose claim was denied or approved for less than the full allowable amount on the ground that he collaborated with the enemy as set out in sections 5 (g) and 6 (e) of the act to apply to the Commission for a redetermination of his claim. We have no direct factual information as to the need or desirability of the proposed legislation. Since, however, the War Claims Act of 1948 is an equitable statute, we see no objection to granting claimants the additional rights and privileges proposed by the bill. Sincerely yours, Hon. J. PERCY PRIEST, JOSEPH CAMPBELL, Comptroller General of the United States. DEPARTMENT OF STATE, Washington, D. C., June 6, 1956. Chairman, Committee on Interstate and Foreign Commerce, House of Representatives. DEAR MR. PRIEST: Further reference is made to your letter of March 14, 1956, in which you requested a report on H. R. 9864, a bill to amend the Trading With the Enemy Act, as amended, and the War Claims Act of 1948, as amended. H. R. 9864 is in general outline somewhat similar to H. R. 6730 which was introduced in the House and referred to your committee on June 8, 1955, as a result of proposals submitted by the Secretary of State on behalf of the administration in his letter to the Speaker on June 6, 1955. However, H. R. 9864 differs from H. R. 6730 in the following important respects: 1. The provisions of H. R. 9864 regarding the return of vested assets provide for the full return of vested assets to natural persons while H. R. 6730 limits such returns to a maximum of $10,000. 2. The provisions of H. R. 9864 relating to claims provide for the payment in full of all specified claims whereas H. R. 6730 limits payments to a fund of $100 million. 3. H. R. 9864 extends the definition of allowable war claims against Germany contained in H. R. 6730 to include nationalization claims arising in Albania, Austria, Czechoslovakia, Germany, Greece, Poland, and Yugoslavia without limitation as to time and claims based upon confiscation, dispossession, larceny, or duress by Germany and its allies or their nationals which took place in any time after January 1, 1933. 4. In H. R. 6730 the assertion of claims is limited to persons who were citizens or nationals of the United States at the time the loss arose and at the time of filing the claim. In H. R. 9864 this definition is extended to include all persons who are citizens or nationals of the United States at the time of the enactment of the law. With regard to item 1, above, the Secretary pointed out in his letter of June 6, 1955, to the Speaker of the House that the primary purpose of the administration's proposals for a limited return of vested assets was to alleviate the hardships which had been suffered by the former owners, many of whom found themselves in indigent circumstances. This policy was expressed in the President's letter to the Chancellor of the Federal German Republic of August 7, 1954, in which he referred to hardships which arose on the one hand out of the vesting program in the United States and on the other out of the absence of compensation for war claims of American nationals against Germany. The President said that none of the bills then pending in Congress with regard to the return of vested assets had the approval of his administration. He expressed the hope that an equitable and satisfactory solution could be achieved. The proposals in H. R. 6730 would substantially accomplish these objectives and would result in a full return to 90 percent of the former owners of the vested assets with funds remaining in the hands of the Office of Alien Property. Extending the return program to permit full return to all natural persons would go beyond the concept of the alleviation of hardships outlined by the President and could be carried out only with a substantial outlay of public funds. The Department, therefore, cannot support these provisions of H. R. 9864. As stated in the Secretary's letter to the Speaker, the purpose of the claims program envisaged in H. R. 6730 is to afford some relief to American war claimants against Germany by restoring and making available to them the equivalent of funds derived from German reparations which had been used for other purposes under the War Claims Act of 1948. If these funds had not been so used they would have been available at the discretion of the Congress to pay American property damage claimants against Germany. The creation of the $100 million fund as proposed in H. R. 6730 would not, therefore, establish a precedent for the payment of American property damage claims against foreign governments out of public moneys. However, the payment in full of the types of claims covered by H. R. 6730 as well as the additional types of claims specified in H. R. 9864, as described in items 2 and 3, above, would involve a substantial expenditure of public funds over and above the equivalent of the funds derived from German sources referred to above. The Department does not consider the claims involved to be of such a nature as to warrant the use of public funds for their satisfaction. Accordingly, the Department is unable to support these provisions of H. R. 9864. The Department also cannot support the provisions of H. R. 9864 which would eliminate the requirement contained in H. R. 6730 that a claimant must have been a citizen or national of the United States at the time the claim arose. As was pointed out on page 12 of the explanatory memorandum submitted with the Secretary's letter to the Speaker the eligibility requirements of H. R. 6730 follow the traditional and generally accepted principle of international law relating to the nationality of claimants asserting claims against governments other than their own, which has particular applicability in this situation. There are other differences between the two bills which the Department has not had an opportunity to consider fully and on which the Department might wish the opportunity to comment should this bill be given further consideration. However, in view of the major differences discussed above, the Department cannot recommend favorable action on H. R. 9864 and again urges, for the reasons stated in the Secretary's letter to the Speaker, that prompt and favorable action be taken on the administration's proposals contained in H. R. 6730. The Department has been informed by the Bureau of the Budget that there is no objection to the submission of this report. Sincerely yours, ROBERT C. HILL, Assistant Secretary (For the Secretary of State). EXECUTIVE OFFICE OF THE PRESIDENT, Hon. J. PERCY PRIEST, BUREAU OF THE BUDGET, Washington, D. C., June 6, 1956. Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: This is in reply to your letter of March 14, 1956, requesting the views of this office with respect to H. R. 9864, a bill to amend the Trading With the Enemy Act, as amended, and the War Claims Act of 1948, as amended. The Secretary of State and the Chairman of the Foreign Claims Settlement Commission, in the reports they are making to your committee on this bill, are recommending against its enactment for the reasons set out therein. This Bureau concurs with the views contained in these reports and recommends that this measure not be enacted. Sincerely yours, PERCY RAPPAPORT, Assistant Director. Hon. J. PERCY PRIEST, FOREIGN CLAIMS SETTLEMENT COMMISSION OF THE UNITED STATES, Washington, D. C., June 5, 1956. Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, Washington, D. C. DEAR MR. PRIEST: Further reference is made to your letter dated March 14, 1956, requesting the views of the Foreign Claims Settlement Commission with respect to the bill H. R. 9864, a bill to amend the Trading With the Enemy Act, as amended, and the War Claims Act of 1948, as amended. This bill, introduced March 12, 1956, is similar to the bill H. R. 5840, introduced in the 1st session of the 84th Congress, and to its identical companion bill, H. R. 6088, also in the 84th Congress. It is also similar to the bills H. R. 6730, H. R. 6970, and S. 2227, in the 84th Congress, and is related to a number of other bills and resolutions heretofore introduced in the 84th and preceding Congresses pertaining to the return of certain German and Japanese assets and to the recognition of claims by nationals of the United States for losses arising out of World War II generally attributable to the enemy German Government. The subject bill proposes to amend the two acts mentioned in the title of the bill so as to provide (1) for the full return, with certain limited exceptions, of all vested German assets presently held by the Office of Alien Property, Department of Justice, with certain exceptions, (2) for the payment in full of World War II property loss and personal disability claims by "citizens and/or nationals" of the United States, with property loss claims confined to property located within the geographical boundaries of certain named European countries as they existed on December 1, 1937, and (3) certain vaguely described propertyloss claims arising as a result of "confiscation, dispossession, larceny, or duress (with or without violence)***" not only by enemy military forces but by "any individual national or nationals of Germany or its allies (whether or not pursuant to orders) at any time after January 1, 1933." The subject bill contains many provisions found in the administration-sponsored bills, H. R. 6730 and S. 2227, but also contains many provisions of H. R. 5840 which the Commission believes are objectionable. With respect to that portion of H. R. 9684 relating to the return of certain assets vested by the Office of Alien Property, the Commission cannot appropriately comment. This expression of views, therefore, will be confined to provisions which propose establishment of a general World War II claims program under a series of amendments to the War Claims Act of 1948, as amended. Unlike the administration bills, H. R. 6730 and S. 2227, the subject bill (1) contains no restrictions or limitations whatever, either as to the type of property loss that would be compensable, the causes thereof, including thefts and dispossession, or the amounts to be paid for such losses, requires (2) no new claim to be filed if a claimant has, at any previous time, filed a claim with the Commission, with its predecessor Commissions, or with the Department of State, (3) compliance with "all provisions of the Administrative Procedure Act of 1946," (4) preference in processing claims filed by persons more than 60 years old or who have not been able to avail themselves of the war loss provisions of the Internal Revenue Code, (5) payment of claims for losses of property, real or personal, on the basis of the replacement cost "as of the date of the award or judgment therefor," (6) compliance by the Commission, in settling claims with "principles of fair play and justice" regardless of legal precedents, (7) complete judicial review of all decisions at the election of an aggrieved claimant or the institution of a suit de novo in the District Court of the United States for the District of Columbia or in the United States Court of Claims, by claimants whose claims are not processed and paid within 2 years after filing, (8) annual balancing of the value of returned German assets and payments of war-damage claims. The foregoing are some of the more outstanding provisions of H. R. 9864 which the Commission believes offer an impracticable, extremely complicated and expensive solution to a problem deserving the most painstaking analysis in developing and drafting of implementing legislation. The subject bill, insofar as it departs from the bills sponsored by the administration, does not meet these requirements. 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. The Commission is informed, however, that the various sources of funds mentioned in the bill are either nonexistent or unavailable in the amounts indicated. Considering the almost unlimited scope of the bill's proposed claims program, it is impossible for the Commission to make any estimate of the probable costs involved either for the payment of claims or the expenses of administering such program. Such costs, it is believed, would undoubtedly be astronomical. Additionally, 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 in the Senate, June 14, 1955, as S. 2227. A complete explanation of the provisions of H. R. 6730 may be found in the Congressional Record for June 8, 1955, volume 101, No. 95, beginning at page A4062. These bills, which represent the executive branch proposals in these respects, have the complete approval and support of the Foreign Claims Settlement Commission. They were 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 and S. 2227, the Commission is opposed to the enactment of H. R. 9864 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, House of Representatives, House Office Building, Washington, D. Ơ. MY DEAR MR, CHAIRMAN: Reference is made to your letters of March 16, 1956, requesting a statement of this Department's views on H. R. 9972 and H. R. 9973, to amend the Trading With the Enemy Act, as amended, so as to allow bulk settlement of certain claims by successor organizations to heirless or unclaimed property. Section 32 (h) of the Trading With the Enemy Act now authorizes the turning over to organizations designated by the President of certain property which will be used for the rehabilitation and resettlement in the United States of persecuted persons. The property to be turned over under the existing legislation is vested property which prior to vesting was owned by persecuted persons who died without heirs and is limited to an amount not in excess of $3 million. The present bills would provide for the bulk settlement of the claims of the successor organization which has been designated by the President by payment from vested property. H. R. 9972 would provide for payment to such organization of not less than $2 million nor more than $4 million. H. R. 9973 would provide for payment to such successor organization of not less than $2 million nor more than $3 million. 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 bills. Very truly yours, FRED C. SCRIBNER, Jr., General Counsel. Hon. J. PERCY PRIEST, UNITED STATES DEPARTMENT OF JUSTICE, 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. 9984) to extend for 1 year the time for filing of claims by former prisoners of war under section 6 (e) of the War Claims Act of 1948. With certain exceptions, the time for filing claims arising out of the Korean hostilities by former prisoners of war expired August 21, 1955 (Public Law 615, 83d Cong., 2d sess.). The effect of the amendment provided by the bill would be to extend for 1 year, or until August 21, 1956, the period of time within which claims of the nature referred to might be filed. Whether the bill should be enacted is a question of 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, Hon. J. PERCY PRIEST, WILLIAM P. ROGERS, Deputy Attorney General. TREASURY DEPARTMENT, Washington, D. C., March 23, 1956. Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: Reference is made to your letter of March 17, 1956, requesting a statement of this Department's views on H. R. 9984, to extend for 1 year the time for filing of claims by former prisoners of war under section 6 (e) of the War Claims Act of 1948. Since this relates to matters not within the jurisdiction of this Department, the Treasury Department has no comments to make on the merits of the proposed legislation. 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 dated April 19, 1956, for the views of the Foreign Claims Settlement Commission on the bill H. R. 10549, a bill to amend the War Claims Act of 1948, as amended. The subject bill, H. R. 10549, is closely related to section 7 of the bill H. R. 6730, a bill to amend the Trading With the Enemy Act, as amended, and the War Claims Act of 1948, as amended, which was introduced in the 1st session of the 84th Congress. Section 7 of H. R. 6730 would authorize the settlement of certain propertyloss claims by nationals of the United States attributable to World War II military operations in Albania, Austria, Czechoslovakia, Germany, Poland, and Yugoslavia and the settlement of claims for personal injuries, deaths, and cargo 81964-56-26 |