763.72113/2768: Telegram
The Ambassador in France ( Bullitt ) to the Secretary of State
[Received June 28—2:45 p.m.]
1019. The information contained in the Department’s telegram 408 of June 27, 7 p.m., was this morning informally conveyed to the competent officers of the Office of Private Property and Interests.
Confidentially and informally the officers indicated that the text of the French reply was before the Ministry of Foreign Affairs for signature and that it contained a proposal along the line outlined in the last two sentences of Embassy’s 942, June 16, 4 p.m. It was especially stressed that even if the position of the Department had been known to it before final completion of the French Government’s reply it would have been difficult and even impossible to omit the proposal for the reason that the Office is unable to conceive any other practical method of application of the arrangement.
The French authorities emphasize in conjunction with the proposal outlined in Embassy’s telegram 942 that they envisaged the turning over by one government to the other of the amount of claims only as concerned claims which shall have been accepted for payment under existing laws and under the terms of the reciprocal agreement.
The Office of Private Property and Interests fears that at this late date insurmountable difficulties will inevitably face both governments unless such a system is adopted. In the first place as concerns the French authorities it was stated that in many cases advances have been made by them on account of sequestration claims by its nationals against the American Government, and that in each instance the American authorities have been advised. Considerable difficulty is anticipated regarding the recovery of such advances if claims are settled directly. Furthermore as concerns both the French and American Governments troublesome delays and complications are feared for both sides as regards for instance the transfer to the appropriate parties of sums due in the case of successions, bankruptcies, disappearances, companies dissolved, etc. In this connection it was emphasized that the French plan would practically eliminate the almost insurmountable difficulties that would otherwise arise for the one and the other governments in connection with legal formalities, searches, et cetera.
The indication was clearly given in the conversation which a member of the Embassy staff had this morning with the competent officials that direct settlement of approved claims would render the arrangement practically inapplicable from the French viewpoint and the hope [Page 340] was expressed that the amendment authorized last year to section 9 (e) of the Trading with the Enemy Act as described in the Department’s instruction No. 457 of September 13, 19377 will permit the Department to agree to the proposal.