I shall appreciate it if you will be good enough to advise me whether the
understanding of the competent American authorities, as set forth in the
attached memorandum, concerning the position of the British authorities
on the subject of reciprocity in connection with the administration of
the British Trading with the Enemy Act is correct, and, if so, whether
on the basis of his understanding of the position of the American
Government the British Administrator is prepared to release to American
citizens property held by him in cases falling within the limits
outlined in the memorandum.
On behalf of my Government I am directed to state that the competent
American authorities are prepared to assure reciprocal treatment (as
defined in the memorandum) to British subjects whose property is held by
the Alien Property Custodian.
[Enclosure]
Memorandum Concerning the Reciprocal Release
by the British and American Governments of Property Sequestrated
in Both Countries Under Trading With the Enemy Acts
The following is a statement of the position of the American
Government in regard to the release to British subjects of property
held by the Alien Property Custodian under the Trading with the
Enemy Act, and of its understanding of the position of the British
authorities in regard to the release to American citizens of
property held by the British Administrator of German Property.
1. Married Women Cases
A.
Position of the American Government
Section 9 (b) (2) of the Trading with the
Enemy Act as amended, authorizes the return to a woman
- (a)
- who, at the time of her marriage, was a subject or citizen
of a nation which had remained neutral in the war, or of a
nation which was associated with the United States in the
prosecution of said war, and
- (b)
- who, prior to April 6, 1917, intermarried with a subject
or citizen of Germany or Austria Hungary,
of property acquired
- (a)
- from whatever source prior to January 1, 1917,
- (b)
- from non-enemy sources at any time, whether or not such
woman reacquired, prior to or since January 10, 1920, the
nationality which she had at the time of her marriage to a
German or Austro-Hungarian national.
Claims of British women who married enemies prior to
the war and who reacquired British nationality on or before June 1,
1926, will be allowed.
The foregoing is conditional on reciprocal rights being extended to
citizens of the United States.
B.
Position of the British Government
Property will be returned to a native born American woman who had
married a subject of a former enemy state and had reacquired
American citizenship, either prior to or since January 10, 1920, but
not later than June 1, 1926.
This does not apply to property of enemy origin, the transfer of
which was illegal after the outbreak of war under the British
Trading with the Enemy Act.
This procedure moreover can only apply in the case of property which
has not already been liquidated or credited to an ex-enemy power or
been so applied as to put it out of the power of the British
Government to release it.
2. Debt Claims
A.
Position of the American Government
The American Trading with the Enemy Act authorizes on the basis of
reciprocity the payment from sequestrated property of debts owing to
and owned by British claimants prior to the passage of the original
Act, provided such debt, in the nature of a pledge or lien, arose in
reference to the money or other property held by the Alien Property
Custodian or Treasurer of the United States.
B.
Position of the British Government
In all cases where enemy businesses, whether conducted by
corporation, partnership, or individual concerns have been
liquidated in Great Britain under war legislation, the claims of
American creditors, wherever resident, have been treated on an equal
footing with those of British creditors.
[Page 758]
3. Shares of Stock in Depot
Account of German Banks
A.
Position of the American Government
No distinction is made between the claims of British or American
citizens with respect to claims under this category. The American
authorities take the position that it is not sufficient for a
claimant to allege that he had a certain number of shares of stock.
If he cannot give the numbers of the certificates of such shares, he
should furnish other proof sufficient to identify the particular
property from that class with which it had become commingled.
However, it is not necessarily incumbent upon the claimant to give
the actual numbers of the shares so held.
B.
Position of the British Government
Upon proof of any American, allied or neutral subject that he is
absolutely entitled as between himself and the German bank or other
enemy to any particular shares, a release would be made; further,
even in cases where the applicant is unable to identify the actual
number of his particular shares, and can only establish that a
certain number of the shares held in depot had been held on his
account, he would also be entitled to release, subject, however, to
a pro rata reduction in the event of the depot being short.
4. Corporations
A.
Position of the American Government
The return is permitted of the assets of a corporation in the
following cases:
1. Provided the corporation (a) was not
incorporated in enemy countries, i. e., Germany, Austria or
Hungary.
(b) did not do business within enemy territory
during the war.
(c) was not declared an enemy by Presidential
Proclamation, regardless of the nationality of the owners of the
stock.
2. Provided (a) the corporation was not
incorporated in any enemy country, i. e., Germany, Austria or
Hungary.
(b) More than 50% of the capital stock of the
corporation was owned by non-enemies at the time of the seizure of
such assets by the Alien Property Custodian, regardless of the fact
that such corporation may have been an enemy by reason of doing
business within enemy territory or may have been declared an enemy
by Presidential Proclamation.
B.
Position of the British Government
Under British law a corporation incorporated and having its seat in
Germany is considered a German national irrespective of the
nationality of any or all of its stockholders. A corporation
incorporated and having its seat outside of enemy territory
irrespective of the nationality of its stockholders is considered a
non-enemy national.
