740.00111 A.R.N.C./182

Memorandum by the Under Secretary of State ( Welles ) to the Legal Adviser ( Hackworth )

Mr. Hackworth: Dr. Fenwick8 left with me this memorandum this morning.

I think it is highly desirable that the Committee of which he is a member extend the scope of its functions in every appropriate way during these critical times. My judgment is that the points made in the memorandum are satisfactory. Will you let me have your reaction?

S[umner] W[elles]
[Annex]

Memorandum by the American Member of the Inter-American Neutrality Committee (Fenwick)

Memorandum in Reference to Extension of the Functions of the Inter-American Neutrality Committee

1. Original functions of the Neutrality Committee in respect to application of the technical rules of neutrality have now been greatly limited.

Technically unneutral acts which are now being committed by the United States can be justified in International Law by the fact that Germany has undermined the foundations of the law of neutrality. But the result is that the “standards” laid down by the General Declaration of Neutrality adopted at Panama9 can no longer be interpreted or applied strictly.

2. New functions which might be assigned to the Neutrality Committee.

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Recommendations setting forth rules in respect to

a.
Claims growing out of acts in accordance with the law of neutrality.
1.
Determination of basis of compensation to American States for costs of internment of belligerent merchant ships and their crews.
2.
Determination of basis of compensation for the requisition or utilization by neutral American States of belligerent merchant ships lying idle in American ports.
3.
Determination of basis of compensation for requisition by belligerents of neutral property located in their territories, in accordance with the law of Angary.
b.
Claims growing out of violations of the law of neutrality.
1.
Compensation for the death of neutral persons and the destruction of neutral vessels, cargos and mails in consequence of illegal submarine attacks.
2.
Compensation for the death of neutral persons and the destruction of neutral property in consequence of illegal bombardment and other acts in violation of the law of war on land (e. g., announcement by State Department that it reserved the right to press a claim in the case of the death of American diplomatic officer killed in Norway).
3.
Compensation for acts of sabotage committed upon neutral property in neutral territory by agents of belligerents.

3. If the Neutrality Committee proves capable of handling neutrality claims it might be later given competence to make recommendations in respect to inter-American claims cases in general.

C. G. Fenwick

  1. Temporarily in the United States. He returned to Rio de Janeiro on May 20.
  2. Approved October 3, 1939; for text, see Department of State Bulletin, October 7, 1939, p. 326. For correspondence on the Foreign Ministers Meeting at Panama, September 23–October 3, 1939, see Foreign Relations, 1939, vol. v, pp. 15 ff.