763.72113 Hungary/1
The Hungarian Minister (Széchényi) to the Secretary of State
Sir: On March 10, 1928, under No. H. R. 7201 of the 70th Congress, the “Settlement of War Claims Act of 1928” was enacted by the Senate and House of Representatives of the United States of America in Congress assembled. In section 10 of said Act, bearing the title “Investment of Funds by Alien Property Custodian”, on pages 16 and 17, subsection (d) contains the following provision:
“The Alien Property Custodian is authorized and directed (after the payment of debts under section 9) to transfer to the Secretary of the Treasury, for deposit in such special deposit account, all money and the proceeds of all property, including all income, dividends, interest, annuities, and earnings accumulated in respect thereof, owned by the German Government or any member of the former ruling family. All money and other property shall be held to be owned by the German Government (1) if no claim thereto has been filed with the Alien Property Custodian prior to the expiration of one year from the date of the enactment of the Settlement of War Claims Act of 1928, or (2) if any claim has been filed before the expiration of such period (whether before or after the enactment of such Act), then if the ownership thereof under any such claim is not established by a decision of the Alien Property Custodian or by a suit in court instituted, under section 9, within one year after the decision of the Alien Property Custodian, or after the date of the enactment of the Settlement of War Claims Act of 1928, whichever date is later. The amounts so transferred [Page 470] under this subsection shall be credited upon the final payment due the United States from the German Government on account of the awards of the Mixed Claims Commission.”
While the Act in question is a unilateral act of Congress, and therefore could not have bearing upon the Trianon Peace Treaty as incorporated in the Treaty Between the United States and Hungary, proclaimed on December 20, 1921, by the President of the United States,16 nor upon the Tripartite Agreement entered into between the United States, Austria and Hungary on November 24 [26] 1924,17 without first being acceded to by Hungary, nevertheless in order to enable me to deliver a report on this question to my Government, 3 beg to call Your Excellency’s kind attention to the following:
According to the opinions of the legal experts of the Tripartite Claims Commission, and the German counsels, it is clear that section 10 of the Settlement of War Claims Act of 1928, amending the Trading with the Enemy Act by adding thereto section 25, follows the intention, in subsection (d) of the new section 25, to turn over all unclaimed property to the German special deposit account, (1) if no claim has been filed with the Alien Property Custodian prior to March 10, 1929, or (2) if a claim has been filed prior to March 10, 1929, then if title to the property is not established by decision of the Alien Property Custodian or by a suit in court instituted under section 9, within one year after the decision of the Alien Property Custodian, or after the date of the enactment of the Settlement of War Claims Act, whichever date is later. The legal effect of the above provision seems to be that a Hungarian national who fails to make claim with the Alien Property Custodian prior to March 10, 1929, loses his property once and for all. It should be noted that although the Senate report makes reference on page 26 to the “undisclosed trusts”, the provisions of subsection (d) of section 25 of the Trading with the Enemy Act apply without distinction of any kind to all property of individuals held by the Alien Property Custodian, whether in the undisclosed enemy trusts or not.
According to the opinion of my legal expert, the German national is under the same liability; however, there seems to be a certain discrimination in favor of the German Government as against that of Hungary.
For the time being I have no information whatever with regard to the so-called “undisclosed enemy trusts”, but, according to a literal interpretation of said provision, it seems that in cases where a Hungarian national fails to make claim with the Alien Property Custodian [Page 471] prior to March 10, 1929, his property—although actually known to have been owned by an identified Hungarian national—would have to become part of the German special deposit account, which procedure would appear to be injurious to Hungary.
This situation might have resulted as a consequence of the fact that the provisions referring to the settlement of war claims against Austria and/or Hungary, or their respective nationals, were incorporated into said Act only by an Amendment made before the Finance Committee of the Senate, and perhaps it was omitted through an oversight to insert the necessary special provisions in sections 5, 6 and 7, dealing especially with the Austrian and Hungarian property. However, in view of the foregoing, I should greatly appreciate it if Your Excellency would kindly inform me at your early convenience regarding the correct interpretation of the provisions of section 10, subsection (d).
Accept [etc.]
- Signed Aug. 29, 1921; Foreign Relations, 1921, vol. ii, p. 255.↩
- Ibid., 1924, vol. i, p. 152.↩