File No. 763.72113/563
The Secretary of State to the Swiss Chargé ( Oederlin)
The Secretary of State presents his compliments to the Chargé d’Affaires ad interim of Switzerland, in charge of German interests in the United States, and, with reference to the Legation’s memorandum of May 10, 1918,1 requesting to be advised whether measures of liquidation of German property have as yet been taken and, if so, against whom, has the honor to inform the Chargé that a copy of the Legation’s memorandum was referred to the competent authority of this Government for consideration and that the Department is now informed that the liquidation of German private property, particularly German commercial enterprises, 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; that the act of war having avoided such partnership agreements, the War Trade Board has issued licenses to such partnerships to continue in business for the purpose of liquidating out the enemy interest under the supervision and control of the Alien Property Custodian, and that, where the enemy interest is in the nature 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; but that none of these corporations are being liquidated at the present time.