Office of the Historian

File No. 763.72113/447

The Secretary of State to the Swiss Minister ( Sulzer)

No. 129
Washington, February 13, 1918.

Sir: I have the honor to acknowledge the receipt of your two memoranda of October 31,1 and December 21, 1917,2 respectively, [Page 286] and note of January 25, 1918,1 in which you give the text of communications received from the German Government through the Swiss Foreign Office, with regard to the desire of that Government to receive certain information relative to German private property in the United States.

In reply I have the honor to enclose for your information in connection with the inquiries of the German Government, contained in your note of January 25, two memoranda of the Alien Property Custodian, dated February 7, 1918, and November 13, 1917, respectively.2

With regard to your memorandum of October 31 last, transmitting the inquiry of the German Government concerning patents, I have the honor to enclose for your information copy of a statement received from the chairman of the Federal Trade Commission on November 2,3 with reference to the application of the Trading with the Enemy Act to the use by American citizens and corporations of patents and copyrights owned or controlled by enemies or allies of enemy.

I should add however that in so far as these statements appear to explain acts of Congress, they are not to be taken as definitive statements as to their meaning which may possibly be made a matter of judicial determination.

I beg also to enclose for your information a copy of the Trading with the Enemy Act, approved October 6, 1917,4 together with a copy of an Executive order issued on October 12, 1917, pursuant to the provisions thereto.5

Accept [etc.]

Robert Lansing
[Enclosure]6

Memorandum of the Alien Property Custodian ( Palmer)7

Washington, February 7, 1918.
1.
The offices of the Hamburg-American Line have been taken over by the Alien Property Custodian under the authority of the Trading with the Enemy Act.
2.
Supreme Court has, of course, made no such order. If subjects of Germany residing in enemy territory own stocks and bonds of gold-mine companies, the taking over of such enemy interests will [Page 287] be contemplated by the Alien Property Custodian. The interests of German subjects resident in this country have not been touched.1
3.
The Treasury Department has ordered the liquidation of enemy fire and reinsurance companies, which liquidation is now proceeding under the supervision of the Alien Property Custodian.
4.
The liquidation of German private property, particularly the German commercial enterprise, is being accomplished under the direction of the Alien Property Custodian where such enterprises are conducted by partnerships of which an enemy as defined by the Trading with the Enemy Act is a member. The act of war having avoided such partnership agreements, the War Trade Board has issued licenses to the partnerships to continue in business for the purpose of liquidating out the enemy interest under the supervision and control of the Alien Property Custodian. Where the enemy interest is in the shape of stockholdings in American corporations, the Alien Property Custodian is taking over the stockholdings and representing the stock and is placing directors in the companies to supervise the management and operation of such companies. None of such corporations is being liquidated at the present time.
  1. Ante, p. 266.↩
  2. Not printed.↩
  3. Ante, p. 279.↩
  4. For summary of statement of Nov. 13, see telegram No. 774, Nov. 14, to the Minister in the Netherlands, ante, p. 267.↩
  5. Post, p. 328.↩
  6. Not printed.↩
  7. See ante, p. 263.↩
  8. Filed separately under File No. 763.72112/5372.↩
  9. In answer to inquiries of the German Government contained in note of Jan. 25, 1918, from the Swiss Minister, ante, p. 279.↩

  10. Paragraph 2 of this memorandum as received from the Alien Property Custodian reads as follows (File No. 763.72112/5372):

    (2) Supreme Court has, of course, made no such order. If subjects of Germany residing in enemy territory own stocks and bonds of gold mine companies, such enemy interests will be taken over by the Alien Property Custodian. The interest of German subjects resident in this country will not be touched.

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