763.72113/918
The Special Agent of the Department of State
(Ames) to the Acting Secretary of
State17
[Extract]
Guatemala, February 24,
1919.
[Received March 8
(?).]
No. 18
Sir: I have the honor to report—as communicated
in my cable of February 4th.—3 P.M.—copy enclosed18—, that on Monday, Feb. 3rd., I
handed to the President of Guatemala a copy of the proposed enactments
re enemy property prepared by Señor Vielman
and myself, together with a copy of a note I had sent the Minister of
Foreign Affairs on January 30th. officially submitting the proposed
enactments. This note, copy and translation of which are enclosed
herewith,18
rehearses the circumstances that gave rise to my mission and the
successive steps—or delays—in its progress. I wrote the original in
Spanish with the idea of emphasizing the essentially advisory character
of my mission.
As stated in my cable of February 15th.—11 A.M.—a copy of which is
enclosed18—the
enactments proposed by Señor Vielman and my
[Page 290]
self were threefold:— 1) a Decree, embodying the
general provisions of the law; 2) a Resolution embodying the Procedure
to be observed in applying it; and 3) a Resolution prohibiting the
admission of enemies to Guatemalan citizenship during the continuance of
a state of belligerency.
Under date of Feb. 12th. the President and Cabinet signed Decree No.
747—copy and translation enclosed—embodying the proposed decree prepared
by Señor Vielman and myself and on February 14th. the President signed a
Resolution—copy and translation enclosed18—embodying the Procedure to be observed in
applying the Decree and another Resolution—copy and translation
enclosed18—prohibiting the naturalization of enemies.
The Decree appeared in the Diario de Centro
America of February 15th. and the two Resolutions in the same
paper’s issue of February 17th. It is from these issues that the copies
sent herewith have been taken. The Decree and the two Resolutions were
published in the official bulletin, the Guatemalteco, under date of February 15th.
. . . . . . .
On the same day on which the Resolutions already discussed were signed
the President signed a third—copy and translation enclosed18—appointing Mr. Daniel B.
Hodgsdon Custodian (Intendente General) and Señor
Federico Vielman Counsel. This Resolution was published in the Guatemalteco of February 15th.
A word as to these appointments is in order here:—Mr. Hodgsdon is an
American citizen who has lived in Guatemala many years. …
. . . . . . .
I have [etc.]
[Enclosure—Translation]
Executive Decree No. 747, of February 12, 1919,
Taking Over Enemy Property in Guatemala
The Constitutional President of
the Republic of Guatemala,
Whereas, by Legislative Decree No. 796 the
state of belligerency was legally established by Guatemala with
reference to the German Empire and the rights created by that state
compelled the Government to issue Decrees 737 and 742, which
provided for the seizure, control, nationalization and sale, on
occasion, of the interests of German Companies in the public service
companies, without prejudice to other steps that the circumstances
might demand;
[Page 291]
Whereas, on the assumption by Guatemala of
the same belligerent attitude as the United States toward the German
Empire and in order to work in harmony with reference to other enemy
property, it became necessary to hear the advice that might be
offered by that country with a view to maintaining the unity of
action and the solidarity created by common rights and obligations
in the very important matter in question; and
Whereas, now that the opinion of the
Counsellor named for the purpose by the Government has been given,
as also that of the American Commission designated by the Secretary
of State of the United States, the occasion has arrived for
formulating an enactment which shall legally define the condition of
the supposedly enemy property in the country;
Therefore, in the exercise of the
extraordinary powers with which he is invested by the National
Legislative Assembly and in Council of Ministers,
Decrees:—
- Art. 1. All the property, rights and
actions within the territory of the Republic belonging to any of
the persons, natural or artificial, indicated hereinafter fall
immediately under the absolute control of the Government:
- a)
- Subjects of the German Empire or of any of the nations
allied with Germany who are in the territory of that
Empire or that of its allies;
- b)
- Societies, corporations and associations, of any kind
or character, domiciled and resident in Germany or in
any nation allied with the German Empire;
- c)
- All societies, corporacions or associations organized
or incorporated under the laws of Germany or of its
allies in the territory of the German Empire or that of
the allies of that Empire;
- d)
- Persons or associations of persons, subjects of
Germany or of any of her allies, with domicile in any
nation other than Guatemala, who keep up commercial
relations within the territory of Germany or that of her
allies;
- e)
- Subjects or associations of subjects of Germany or of
her allies and subjects or associations of subjects of
any neutral nation, whatever their domicile, provided
they commit wrongful acts with the deliberate object of
aiding the German Empire in any way—or its allies—or of
harming the Republic of Guatemala or any of her
allies.
- Art. 2. The seizure and control of
property shall be carried out by the Custodian, already named by
the Government, in conformity with the mandates of this law and
with the Procedure with reference thereto which shall be
formulated for the purpose.
- Art. 3. Within sixty days from the
publication of this Decree all persons, natural or artificial,
who, holding property of any kind in
[Page 292]
the territory of the Republic, are covered
by Article 1 of this law, must, in person or through their
representatives, present a detailed inventory of all their
property, under oath or affirmation, to the Custodian. This
inventory shall be confidential and be used and utilized only
for the purposes of this law.
- Art. 4. Within the same period all
persons, natural or artificial, who, by title or otherwise, have
in their possession property belonging to individuals or
associations covered by Article 1 of this law, must present to
the Custodian, under oath or affirmation, an exact inventory of
such property, specifying the title or arrangement under which
they hold it, the value of the property and the name and address
of the owner or interested party.
- Art. 5. The managers, directors or
representatives of stock companies or joint stock associations
organized under the laws of this Republic or duly incorporated
must present to the Custodian’s Office, within thirty days, a
list of all share-holders who are covered by Article 1 of this
law, giving the number of shares belonging to each of
them.
- Art. 6. Every debtor or creditor of
any of the persons or associations specified in Article 1 of
this law must present to the Custodian, within the same period,
a statement, under oath or affirmation, giving the amount and
nature of the debt, the date and place of payment and the name
and address of the creditor or debtor.
- Art. 7. Persons who, being covered
by Article 1 of this law, do not present the proper inventory
within the period named, shall be punished with a fine of from
one thousand to five thousand “pesos payment of such fine to be
no defence against immediate seizure of the property belonging
to them. The same penalty shall apply to the persons referred to
in Articles 4 and 5 of this law. Debtors who do not present the
proper declaration shall be punished by a fine of from 500 to
20000 [2,000] pesos and ipso facto must make immediate payment. Creditors who
do not present the statement called for within the time set
shall be subject to the same fine of from 500 to 20000 [2,000] pesos and, in addition, shall lose
all right or privilege in case, for any reason whatsoever, it
shall be necessary to sell the property or properties of the
debtor.
- Art. 8. In case the inventories,
lists and statements to which the preceding Articles refer
contain false or misleading data, the persons or the
representatives of associations presenting them shall be
immediately submitted to the appropriate penal action; they
must, moreover, pay the damages thereby occasioned.
- Art. 9. The net proceeds of the
property subject under this law to seizure and control must be
deposited in the banking establishment designated by the
Government for the purpose and may not be withdrawn without the
express authority of the Government and except for investment in
their entirety in this country.
- Art. 10. On and after the
publication of this law all acts or contracts relative to the
disposal, rental or hypothecation of the property, rights and
actions of the persons covered by this law shall be null and
void. For such acts and contracts to have legal validity they
must have the previous express approval of the Government given
through the Custodian. Nor may such persons collect, extend or
satisfy any debt or give receipts or quittances without the
consent of the Custodian.
- Art. 11. The expenses and
compensations which the seizure and control of the property,
rights and actions covered by this law may occasion shall be met
by the owners of the property and those having an interest in it
in the proportions and under the conditions which the Government
may fix by advice of the Custodian.
- Art. 12. In any civil cause pending
in the Courts or which may hereafter be brought in which there
is involved any question concerning the property, rights and
actions belonging to persons covered by Article 1 of this law,
the Custodian must be made a party.
- Art. 13. The periods named in
Articles 3, 4, 5, and 6 of this law may be extended by the
Government, by special resolution, for a period not to exceed 90
days.
- Art. 14. Only the property of
persons covered by Article 1 is subject to this law. The rights
of Guatemalans shall have no other limitations than those
prescribed by the laws, lists and enactments of the
Republic.
- Art. 15. This Decree shall be
reported to the National Legislative Assembly at its next
session.
Given in the Palace of the Executive Power in the City of Guatemala
the 12th. day of February, 1919.
(Signed)
Manuel Estrada
C.
The Secretary of the
Treasury and Public Credit, in charge of Foreign
Affairs
G.
Aguirre
The Secretary of
Government and Justice
J.
M. Rein a Andrade
The
Secretary of Public Instruction
J. Ed. Girón
The Secretary of Public Works
L. F. Mendizábal
The Sub-Secretary of War
J. M. Letona R.
