File No. 311.6253N811/2

The Swiss Chargé (Hübscher) to the Secretary of State

Department of German Interests
IV–B–14

Memorandum

The Chargé d’Affaires a. i. of Switzerland, representing German interests in the United States, presents his compliments to the Secretary of State, and, has the honor to enclose copy of a protest from the German Government, which has been forwarded to this Legation by the Swiss Foreign Office for transmission to the Government of the United States, regarding the sale of the property of the North German Lloyd and Hamburg-American Lines, and also the sale of German property to American citizens by the Alien Property Custodian.

[Enclosure—Translation]

The German Foreign Office to the Swiss Legation at Berlin

No. IIIa–10398–88033

Note Verbale

The Foreign Office thanks the Swiss Legation for the text of the Urgent Deficiency Bill and the declaration of the Alien Property Custodian enclosed in note verbale No. A.V. Gen. 4/22678 of the 18th of this month.

[Page 308]

The German Government must protest against the addendum to the Trading with the Enemy Act of October 6, 1917, in the Urgent Deficiency bill, which empowers the President of the United States to dispossess the North German Lloyd and the Hamburg-American Line of their establishments in New Jersey. The condition put upon the dispossession which is left to the discretion of the President, that it shall be necessary for the national security and defence, cannot be accepted as a valid ground for such rule, since the above-stated ground can always justify a seizure for use during the war but not a lasting acquisition of the property. Supposing it, however, to be a valid ground, it should then be held, as it is against the German companies, against all the other American and other steamship companies and enterprises established at similar places. As this is obviously not contemplated and the case is rather one of discrimination against German private property, appended to the Trading with the Enemy Act, the German Government must, in case the President of the United States exercises the power conferred upon him, see therein an attempt antagonistic to the spirit of the treaties of 1785, 1799, and 1828, and in no wise warranted, to shackle, through measures of force, the opportunities of German shipping interests to develop in the future.

When farther on the amendment to paragraph 4 of section 12 of the Trading with the Enemy Act of October 6, 1917, also contained in the above-mentioned bill, vests the Alien Property Custodian with the power of disposing of all the property in his care, money excepted, to American citizens, there lies therein another measure consciously aimed to do lasting injury to German economic existence, which is not in the least affected in its contemplated operation by the assuaging Alien Property Custodian’s declaration of March 28, of this year.1 The German Government is constrained to repeat what it said on the subject in its note verbale IIIa–4532 of March 10, of this year;2 it again lays emphasis on the statement that it cannot but be guided in the enforcement of the retaliatory orders that have been issued against American property in Germany by the manner in which the United States of America will proceed against German property.

The Foreign Office would be thankful to the Swiss Legation if it would make the foregoing known to its Government with a request to communicate this protest of the German Government to the Government of the United States of America through the Swiss Legation at Washington.

  1. Ante, p. 292.
  2. Ante, p. 296.