Foreign Relations of the United States Diplomatic Papers, 1938, The British Commonwealth, Europe, Near East, and Africa, Volume II

763.72113/2745

The Chargé in France (Wilson) to the Secretary of State

No. 1828

Paris, March 2, 1938.
Received March 11.

Sir: I have the honor to refer to the Department’s instruction No. 457 of September 13, 1937,⁹⁰ and to previous correspondence regarding the claims of American citizens for the release of property sequestrated by the French Government. Particular reference is made to the letter of May 19, 1937,⁹⁰ addressed by the Secretary of State to Senator Pittman,⁹¹ enclosed with the Department’s instruction No. 322 of June 8, 1937,⁹⁰ to this Embassy, concerning Section 9 (e) of the Trading with the Enemy Act.⁹² The Department’s instruction No. 457 advised that the amendment as recommended by the Secretary in the above letter to Senator Pittman had been enacted into the law,⁹³ and that Section 9 (e) as amended now reads as follows:

“(e) No money or other property shall be returned nor any debt allowed under this section to any person who is a citizen or subject of any nation which was associated with the United States in the prosecution of the war, unless such nation in like case extends reciprocal rights to citizens of the United States: Provided, That any arrangement made by a foreign nation for the release of money and other property of American citizens and certified by the Secretary of State to the Attorney General as fair and the most advantageous arrangement obtainable shall be regarded as meeting this requirement; nor in any event shall a debt be allowed under this section unless it was owing to and owned by the claimant prior to October 6, 1917, and as to claimants other than citizens of the United States unless it arose with reference to the money or other property held by the Alien Property Custodian or Treasurer of the United States hereunder; nor shall a debt be allowed under this section unless notice of the claim has been filed, or application therefor has been made, prior to the date of the enactment of the Settlement of War Claims Act of 1928 (Act of March 10, 1928, c. 167⁹⁴).”

After recalling the position taken by the French Ministry of Foreign Affairs in its note of December 14, 1928,⁹⁶ and in subsequent communications, relating to its willingness to release the property of American claimants listed in the enclosure to the note in question, the Department instructed the Embassy⁹⁷ to renew discussions with the Minister of Foreign Affairs with a view to reaching such a reciprocal arrangement between the two Governments as is contemplated by the above amendment. The instruction further indicated that the reciprocal release arrangement should, in addition to covering the American claims listed with the note of December 14, 1928, and in subsequent communications, set forth specifically that the proper authorities of the French Government will release property of certain other designated categories of claimants. The proposals of the Department were transmitted to the Minister of Foreign Affairs by the Embassy on September 27, 1937.

In reply to the Department’s cablegrams Nos. 606 and 21 of December 4, 1937, and January 15, 1938, respectively,⁹⁸ the Embassy by its cablegrams Nos. 1718 of December 10, 1937, and 88 of January 17, 1938, respectively,⁹⁸ informed the Department of the progress of the negotiations.

In a communication dated February 22, 1938, copy and translation whereof are enclosed, the Ministry of Foreign Affairs has indicated that it is prepared to conclude an arrangement on the basis of the Department’s written instruction No. 457 of September 13, 1937, and its cabled instruction No. 625 of December 21, 1937.⁹⁸ It will be observed, however, that the Ministry of Foreign Affairs has set forth certain precisions and reservations which it feels are required on particular points to reconcile the terms of the agreement with French jurisprudence.

Before preparing this despatch, occasion has been taken informally to obtain oral clarification at the Office des Biens et Intérêts Privés of the following points in the French reply:

(1) The note indicates willingness to release property to an individual who acquired American nationality before January 10, 1920, but makes no reference to those “who may have retained, under the laws of another country, his or her former nationality.” The Embassy has been given to understand, confidentially, that the French Government preferred not to take any official position in this respect, but that, as indicated in the note, consideration would be given to claims upon the proof of acquisition of American nationality provided by the competent American authorities.

(2) The French Government states that it is willing to make restitution in the case of a married woman who at the time of her marriage was a citizen of the United States and who prior to April 6, 1917, intermarried with a subject or citizen of Germany or Austria-Hungary, provided that the property was not acquired from an ex-enemy national subsequent to August 3, 1914. It was explained that this date is fixed by French law as concerns claims made by French nationals on the French Government, and that it would be extremely difficult, if not impossible, for the latter to accept the date of January 1, 1917, as requested by the Department.

(3) As concerns the settlement of claims of American nationals against ex-enemy nationals whose property has been liquidated in France, it was explained that consideration could only be given to individuals whose claims related to operations with an ex-enemy national in France. For instance, no payment could be made from property of German nationals liquidated in France if, to illustrate, the claim related to supplies or deliveries made to a German national in Berlin, but whose property had been seized and liquidated in France.

The last Section of the French communication under analysis embodies the interpretation of the French Government of certain special points relating chiefly to Alsatians and Lorrainers. In this respect reference is made to the Embassy’s cablegram No. 1744 of December 17, 1937, and to the Department’s cablegram No. 625 of December 21, 1937.⁹⁹

The Ministry of Foreign Affairs asks whether the Embassy is in agreement with the proposals and interpretations set forth in its note. In acknowledging the note the Embassy is indicating that it is being forwarded to the Department for appropriate consideration. Furthermore the Ministry attaches the list of American claims¹ which “appear to it to have been notified under the conditions” set forth in its note, and “which appear susceptible of being taken into consideration”. The request is made that this list be completed, if necessary, and that the Ministry of Foreign Affairs be provided with the list of claims which French nationals have laid before the American authorities.

With respect to the list of American claims attached to the French note, it was considered desirable informally to request information with respect to the bases of the list, for the reason that certain names which appear in the list of December 14, 1928, and in subsequent communications, are omitted. It was stated, in the first place, that the list attached to the French note of December 14, 1928, had disappeared from the archives of the French Government; secondly, that the list was not intended in any way to be restrictive, and that, as indicated above, the French Government invites the American Government to complete it, if necessary.

Respectfully yours,

For the Chargé d’Affaires ad interim:

H. Merle Cochran
First Secretary of Embassy

[Enclosure—Translation]

The French Ministry for Foreign Affairs to the American Embassy

The Office of Private Property and Interests has the honor to acknowledge receipt of Note No. 800 of the Embassy of the United States of America, dated December 23, 1937, in reply to the verbal request made by the Office on the 16th of the same month with respect to the Embassy’s note of September 27, 1937.

The Office of Private Property and Interests desires, as does the Embassy, to reach an agreement establishing a regime of reciprocity for the return of American and French property sequestrated during the War by one and the other governments.

As indicated during recent conversations, the Office is prepared to conclude an arrangement on the bases set forth in the notes of the Embassy referred to above, but on particular points it finds itself obliged to provide certain precisions and to make reservations to certain formulae of principle applicable to possible categories of claimants. It should be added that these precisions and reservations have no other object than to avoid a peremptory incompatibility between the formulae proposed and the jurisprudence invariably followed by the French State.

Furthermore, individual cases might be examined with the view of applying to claims the most liberal satisfaction compatible with the principle of equality of treatment between the nationals of the two States.

In this spirit, the Office of Private Property and Interests is prepared to extend to nationals of the United States of America advantages strictly identical to those which the Office extends to French nationals as concerns the release of sequestrated property.

As regards the application of the procedure of restitution to the different categories of American physical and moral persons concerned, the claims presented to the Office of Private Property and Interests should fulfill the following conditions:

1. They should have been lodged with the Office before August 17, 1930 (a condition which is imposed by the decree of May 19, 1930, to all claims).

2. They should be based upon the American nationality of the party concerned or of the original claimant.

3. They should not refer to property for the retention and liquidation of which the compensation provided for by a Treaty of Peace has been allowed by an ex-enemy power.

Under this triple reserve, if it has not yet been liquidated, the property will be restituted or released or, if it has been liquidated, the proceeds of liquidation will be restituted or released if the owners:

1. possessed American nationality at the time the property was sequestrated,

2. acquired American nationality before January 10, 1920 (the proof of this acquisition to be produced by the competent American authorities),

3. acquired American nationality after January 10, 1920, if prior to becoming an American citizen, they acquired, ipso facto, by virtue of a treaty of peace, the nationality of an Allied Power,

4. if the owners are American women who contracted marriage before April 6, 1917, with a national of an ex-enemy power but who resumed American nationality before January 10, 1920, or if their marriage was dissolved before this date, provided that the property was not acquired from an ex-enemy national after August 3, 1914.

5. if the owners are companies, corporations, associations in the United States or outside of the United States and composed exclusively of American nationals or controlled by American nationals at the time of the seizure and at the time of release.

As concerns the property of companies, corporations or associations established in France and partly composed of American nationals, the latter will receive the part of the available assets in proportion to their rights in such companies, corporations or associations.

4. if the owners are beneficiaries of deceased individuals, or of dissolved companies, associations or corporations who would themselves have been entitled to obtain release if they still existed.

Furthermore, under the reserves made concerning the date of deposit of the claim, the qualification of the claimant and, in the absence of indemnification, the Office is disposed to proceed:

1. to the settlement of claims of American nationals against ex-enemy nationals whose property has been liquidated provided that such claims can be made against the sequestrator or the liquidator under the conditions applying to the lien in France or laid down in French jurisprudence,

2. to the delivery of securities, identical in nature and value to those which have been seized, or should the claimants not be in a position to furnish the numbers of the securities which they possessed, to the delivery of the proceeds of their liquidation.

In cases where the number of securities seized is not sufficient to satisfy all claims, the claimant will only have the right to the restitution pro rata of the certificates in existence or sold.

With respect to French claims, the Office of Private Property and Interests takes cognizance that the Government of the United States is prepared to grant to French nationals, physical and moral persons, identical treatment to that which the Government of the United States grants to its own nationals.

Furthermore, the Office interprets as follows the meaning of certain special points which were the subject of the Embassy’s note of December 23 last:

1. Only the claims of French nationals which were not secured by enemy property seized or which arose from operations which had no relation with this property, are subject to the restrictions relating to the date of the creation of the right, imposed by the laws in vigour in the United States of America.

Claims of this nature will only be settled if they existed prior to October 6, 1917.

2. The French beneficiaries:

(a) of French nationals,

(b) of persons who acquired French nationality as a result of the Peace Treaties,

(c) of enemy nationals who lost the nationality of an ex-enemy power as the result of the Peace Treaties,

will obtain the restitution of all the property and revenue which they may claim whatever may be the date of the decease of the person from whom they derived their right.

3. French heirs of enemy nationals who have retained their pre-war nationality will receive, when the restrictions imposed by Public Resolution No. 53 have been removed, the total restitution up to 10,000 dollars plus 80 per cent of the excess, plus the income.

4. Alsatians and Lorrainers who, in German territory as it existed on August 2, 1914, acquired American securities after October 6, 1917, but prior to the seizure of same by the Alien Property Custodian, will receive the integral restitution of their property and the income.

5. Alsatians and Lorrainers who, under the conditions set forth in the preceding paragraph acquired American securities, but only after the seizure by the Alien Property Custodian, will receive 80 per cent of their property,—this restriction also applying to American nationals.

6. The French claims not covered in the categories defined above will be taken into consideration even if the right upon which they are based arose after October 6, 1917.

The Office will be very grateful if the Embassy of the United States of America will be good enough to advise it if it is in agreement with respect to the proposals and interpretations set forth in the present note.

The Office attaches herewith the list of American claims² which appear to it to have been notified to it under the conditions set forth above and which appear susceptible of being taken into consideration.

The Office will be particularly obliged to the Embassy if it will be good enough to complete this list, if necessary, and if it will, in its turn, provide the Office with the list of claims which French nationals have laid before the American authorities.

Paris, February 22, 1938.

90. Not printed.
90. Not printed.
91. Key Pittman, Chairman of the Senate Committee on Foreign Relations.
90. Not printed.
92. Approved October 6, 1917; 40 Stat. 411.
93. Approved August 24, 1937; 50 Stat. 748.
94. 45 Stat. 254.
96. Not printed.
97. Instruction No. 457, September 13, 1937, not printed.
98. Neither printed.
98. Neither printed.
98. Neither printed.
99. Neither printed.
1. Not printed.
2. Not printed.