File No. 763.72113/679

The Ambassador in Spain ( Willard) to the Secretary of State

No. 1277

Sir: Referring to the Department’s instruction No. 786, April 18, 1918,1 directing the Embassy to secure information in regard to property in Germany of American citizens, etc., I have the honor to enclose herewith a copy of a note verbale from the German Ministry of Foreign Affairs to the Spanish Ambassador in Berlin in reply to the latter’s inquiry on this point.

I have [etc.]

Joseph E. Willard
[Enclosure—Translation]

The German Foreign Office to the Spanish Embassy at Berlin

IIIa.11559/109057

Note Verbale

In reply to your verbal note of the 1st instant (Am. Div. No. 2985–12783) concerning the treatment of American private property in Germany, the Department of Foreign Affairs has the honor to inform you as follows:

The German decrees on the private property of citizens of the United States, that is, the proclamations of August 9, November 10, December 13, and December 31, 1917, and of January 30 and March 4, 1918 (Imp. Law Bul., 1917, pp. 707, 1047, and 1105, and 1918, pp. 5, 67, and 111), were issued solely by way of reprisal after the American Government had in advance published decrees against German private property. The Imperial Government declared several [Page 312] times that these decrees would not be enforced unless the American Government took measures against German property in America. The Department takes the liberty to refer in this regard to the verbal notes of March 231 and April 18,2 Nos. IIIa–5772 and 5682.

After German property in the United States had been taken into custody by the American Government, the German Government took similar measures against the American enterprises in Germany.

Meanwhile the Imperial Department received, in reply to its inquiry regarding the treatment of German property in America addressed to the Government at Washington through the Swiss Government, the information that the “Treasury Department” had ordered the liquidation of the insurance companies and that the liquidation of German private property, especially commercial enterprises, is taking place under the direction of the “Alien Property Custodian.”

Furthermore, an “Urgent Deficiency bill” was passed in America authorizing the President of the United States to expropriate the establishments of the German maritime companies, the “Nord-deutscher Lloyd” and the “Hamburg-Amerika-Linie” in New Jersey near New York, and containing besides an additional note to the “Trading with the Enemy Act” which gives to the Alien Property Custodian authority to liquidate all enemy property subject to his administration. The Imperial Government protested through the Swiss Government against this mode of action and declared again that the measures which Germany would take against American private property would depend on the manner in which the United States proceeded against German private property.

Pending final information on the treatment of German private property in America, the Imperial Government has thus far abstained from liquidating American property in Germany.

As regards the question of the treatment of the property of American citizens domiciled in or outside of Germany, no difference is made in this regard in the German legislation as already explained in the verbal note of April 18, No. IIIa–5682, with the sole exception that Americans domiciled in Germany may make disposal of their property in Germany in accordance with the provisions contained in the proclamations of November 10, 1917, and October 7, 1915 (Imp. Law Bul., pp. 1050 and 633).

The Department of Foreign Affairs would be much obliged to the Royal Spanish Embassy if it would bring the foregoing to the [Page 313] knowledge of the American Government and kindly call the attention of the latter to the fact that the Imperial Government will only be able to furnish it information concerning the treatment of American private property in Germany in proportion as it receives precise answers from the American Government to the German inquiries and protests addressed to it through the Swiss Government.

  1. Ante, p. 294.
  2. See extract in telegram of Apr. 25 from the Minister in Switzerland; ante, p. 296.
  3. Not printed; summarized in telegram of May 13 from the Minister in Switzerland, ante, p. 298.