462.11L5232/630
The American Agent (Bonynge) and
Counsel (Martin),
Mixed Claims Commission, to the Secretary of State
[Extract]
Sir: In accordance with your letter of
instructions to the undersigned bearing date June 19, 1936, we proceeded
to Germany on the
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S. S. Europa arriving at Bremerhaven on June 27, 1936.
We were met there by a representative of Germany who advised us that the
German Government desired to have the discussions of the matters
mentioned in your letter at Munich. We thereupon left Bremen on the
evening of June 27, arriving in Munich on the morning of June 28.
On July 1 we formally met Hauptmann von Pfeffer who was designated by his
government to discuss the matters with us. We advised Hauptmann von
Pfeffer at that time that our positions were those of Agent and Counsel
respectively before the Mixed Claims Commission United States and
Germany and that we were not authorized or privileged to discuss any
other matter pertaining to the general relations between the two
countries and that settlement of the sabotage claims could not be
conditioned upon discussion or settlement of any such matter.
At this conference the Agent of the United States was requested to write
a letter to the Representative of Germany giving information relating to
the claims pending before the Commission. This led to correspondence
between the representatives of the two governments and to the receipt of
a written proposal dated July 6 from Germany84
for a compromise settlement of the sabotage claims and the entry of
awards accordingly in favor of the United States on behalf of the
American nationals involved. After conference with and approval of the
proposed settlement by representatives and attorneys for the American
nationals the American Agent accepted the proposed settlement on behalf
of the United States by a letter bearing date July 6, 1936.85
The proposed settlement was ratified at a meeting of the Representatives
of both Governments on July 10, 1936, and minutes of the meeting were
prepared and duly signed by representatives of each government. The
proposal included an offer to settle the Drier Claim on the basis of the
unconsummated settlement between the two agents arrived at in February
1933, which settlement has heretofore been recognized by the two
governments and the acceptance included this offer.
It was understood and agreed that no publicity was to be given to the
settlement until both governments agreed upon the date for a release of
the terms of the agreement.
. . . . . . . . . . . . . .
All of which is respectfully submitted.
- Robert W. Bonynge
- H. H. Martin
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[Enclosure 1]
The American Agent, Mixed Claims Commission
(Bonynge), to the Representative
of the German Government (Von Pfeffer)
Sir: The American Agent before the Mixed
Claims Commission United States and Germany has the honor to submit
for the consideration of the German Government the following
statement of the amount involved in the claims pending before the
commission known as the “Sabotage Claims.”
There are filed and are now pending before the Mixed Claims
Commission “Sabotage Claims” on behalf of 153 American nationals
against the Government of Germany in the aggregate approximate sum,
including interest to July 1, 1936 at the treaty rate of 5 percent
per annum of $51,780,000.00.
As the German Government is aware there is also pending before the
Commission a claim of the United States on behalf of Catherine M.
Drier, an American national, for the sum of approximately $319,
000.00 as of July 1, 1936.
The “Sabotage Claims” and the “Drier Claim” constitute all the claims
now pending before the Mixed Claims Commission in which awards have
not been entered and with the disposition of those claims the work
of the Mixed Claims Commission United States and Germany, could be
terminated.
In accordance with the instructions received from my Government, I am
authorized to discuss with the Representatives of the German
Government, agreeably to the desire heretofore expressed by the
German Government, a possible compromise settlement of the “Sabotage
Claims” and my authority is thus limited.
In order to comply with the practice and procedure of the Mixed
Claims Commission it is respectfully suggested that if a
satisfactory compromise settlement of the “Sabotage Claims” can be
reached at this conference, which I trust may be accomplished, the
German Government should direct and instruct its Agent before the
Mixed Claims Commission to enter into an agreed statement embodying
the agreement arrived at in this conference and also authorizing and
instructing him to agree to the entry of individual awards in favor
of the United States on behalf of each of the 153 American nationals
interested in the “Sabotage Claims”, pursuant to such compromise
settlement as may be agreed upon at this conference.
I have [etc.]
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[Enclosure 2—Translation]
The Representative of the German Government
(Von
Pfeffer) to the American
Agent, Mixed Claims Commission (Bonynge)
Sir: I have the honor to acknowledge the
receipt of your letter of July 1, 1936, regarding the status of
matters before the Mixed Claims Commission United States and
Germany.
As stated in the discussions already had by Ministerpresident Goering
and myself with the American Embassy in Berlin, the German
Government is desirous of settling the Sabotage Claims pending
before the Commission. I may also point out to you that the
settlement is intended to be the first step on the part of Germany
for an energetic effort to improve the mutual relations between our
countries; furthermore this really unpleasant and disagreeable
matter shall be at last wiped out; but in no case there should be
any appearance that the German Government might concede any
liability with respect to the claims.
1. We assume that there are at present in the Special Deposit Account
in the United States Treasury certain funds estimated to be in the
neighborhood of $20,000,000. available for payment of further awards
to American nationals. With these funds the Sabotage Claimants shall
be satisfied as specially described in § 2.
2. We propose that an award is to be entered to each sabotage
claimant in such sum as will yield an immediate cash payment to that
claimant from the Special German Deposit Account in the United
States Treasury on the date of entry of the award, such immediate
cash payment to be equivalent to 50 percent of the principal of the
claimants claim with interest at 5 percent per annum from the date
of the destruction out of which the claim arose to the date of the
award. This formula is solely for the purpose of determining the
amount of such immediate cash payment. It is intended that the
result of this agreed formula will be to apply whatever cash is
available in the United States Treasury to immediate cash payments
to sabotage claimants pro rata in proportion to the principal of
their respective claims. If the cash immediately available is not
sufficient to cover payments in accordance with this formula, all of
the sabotage claimants would suffer reductions in such payments pro
rata to the principal of their claims. If after the available cash
has been exhausted with these payments and any further credits may
enter in the Special Deposit Account then these credits ought to be
divided according to the same formula and Settlement of War Claims
Act.86
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This proposal shall not preclude the entry of individual awards by
the Commission which shall take into account any adjustment of
interests agreed to between the individual claimants as long as the
total of all cash payments as herein above provided remains
unchanged.
3. The mathematical computation of the amounts to be entered as
awards to yield the immediate cash payments required by this formula
is to be done under the supervision of the American Agent.
4. This agreed statement applies to all claims now pending before the
Mixed Claims Commission, especially arising out of the fires and
explosions at the Lehigh Valley Railroad Terminal at Black Tom, N.
J. on July 29–30, 1916 and the Kingsland Assembling Plant at
Kingsland, N. J., on January 11, 1917,87 described as Docket Numbers 8103,
8117, et al. and list numbers 11,333, 4830,
et al.
In order to simplify matters, the Drier Claim should be settled too,
if it can be done under your present powers. We propose a basis of
$160,000.—plus interest from January 1, 1920, as previously
discussed. This amount should be paid beforehand out of the Special
Deposit Account.
5. The understanding of the German Government is that this settlement
of these claims will dispose of all claims now pending before the
Mixed Claims Commission, so that these unpleasant matters can be
finally concluded.
I am [etc.]
[Enclosure 3]
The American Agent, Mixed Claims Commission
(Bonynge), to the Representative
of the German Government (Von Pfeffer)
Sir: I have the honor to acknowledge
receipt of your letter of July 6, 1936 and beg to advise you that
the proposal as contained therein for the settlement of the Sabotage
Claims and the Drier Claim pending before the Mixed Claims
Commission is hereby accepted on behalf of my Government.
The proposal having been made and accepted, I beg respectfully to
suggest that the German Government take the necessary steps to
effectuate the settlement and the entry of awards by the Mixed
Claims Commission in accordance with the rules of the
Commission.
I have [etc.]
