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ADMINISTRATION OF ALIEN PROPERTY

MONDAY, JULY 1, 1946

UNITED STATES SENATE,

SUBCOMMITTEE OF THE COMMITTEE ON THE JUDICIARY,

Washington, D. C.

The subcommittee met at 10 a. m., pursuant to call, the Honorable James W. Huffman, presiding.

Present: Senator Huffman.

Senator HUFFMAN. The committee will be in order.

This is a subcommittee hearing of the Committee on the Judiciary, on S. 2039 and S. 2378. Copies of the bills referred to will be included in the record at this point.

(The bills are as follows:)

[S. 2039, 79th Cong., 2d sess.]

A BILL To amend section 32 (a) of the Trading With the Enemy Act of October 6, 1917, as amended Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That_(a) subdivision (C) of subsection (a) (2) of section 32 of the Trading With the Enemy Act of October 6, 1917, as amended (Public Law 322, Seventy-ninth Congress), is amended by inserting before the semicolon at the end of such subdivision the following: "or a person who was a victim of religious or racial persecution in the country of his origin or residence." (b) Subdivision (D) of such subsection is amended by inserting after the word "war" the following: "(other than a person who was a victim of religious or racial persecution in the country of his origin or residence).”

[S. 2378, 79th Cong., 2d sess.]

A BILL To amend the First War Powers Act, 1941

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the First War Powers Act, 1941 (55 Stat. 838), as amended, is hereby further amended by adding at the end of title III thereof the following:

"SEC. 305. The Trading With the Enemy Act of October 6, 1917 (40 Stat. 411), as amended, is hereby further amended by inserting after section 32 thereof, and before the section added by Public Law 382, Seventy-ninth Congress, the following sections:

"SEC. 33. (a) A foreign country or national thereof as defined pursuant to section 5 (b) hereof may not institute, prosecute, or further maintain a suit pursuant to section 9 (a) hereof in respect of any property or interest vested in or transferred to the Alien Property Custodian (other than any property or interest acquired by the United States prior to December 18, 1941), or the net proceeds thereof: Provided, That neither the Philippine Government nor any Philippine national shall, solely by reason of being, or having at any time been, domiciled in or a citizen or resident of the Philippines, be deemed a foreign national for purposes of any such suit.

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(b) (1) Notwithstanding the provisions of section 7 (c) hereof, any person, other than a person who

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(A) would be barred by virtue of section 32 (a) (1) or (2) hereof from receiving a return of property; or

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CONTENTS

Statement of—

Arnold, Elting, acting chief counsel, Foreign Funds Control, United
States Treasury Department...

Page

Boskey, Bennett, adviser on enemy property problems, United States
Department of State...

Carroll, Charles R., National Foreign Trade Council_.

Connor, Richard J., representing Uebersee Finanz-Korporation, A.G.-
Cutler, John Ward, associate general counsel, Office of Alien Property
Custodian

7,91

Isenbergh, M. S., special assistant to the Attorney General-
Kane, Al Philip, representing American Federation of Jews from
Central Europe---

14, 98

Kulze, Richard, international-trade section, New York Board of
Trade..

Maurer, Ely, Acting Assistant Chief, Division of Economic Security
Controls, United States Department of State.--

Murphy, Charles E., international trade committee of Advertising
Club of New York..

Polier, Shad, member, national advisory board, American Jewish
Congress

Schwieters, John, international section, New York Board of Trade___
Terrell, Claude M., law firm of Willkie, Owen, Otis, Farr and
Gallagher.

Turlington, Edgar, international comparative law section, American
Bar Association...
Wilson, John J., law firm of Whiteford, Hart, Carmody & Wilson____
Appendix:

Letter of Otto C. Sommerich, chairman, special committee on custody
and management of alien property, American Bar Association____
Communications and brief filed on behalf of National Foreign Trade
Council, Inc..

Memorandum of Claude M. Terrell, law firm of Willkie, Owen, Otis,
Farr and Gallagher___.

Memorandum of associate general counsel, Office of Alien Property
custodian...

34

36

100

102

104

106

108

Statement of George Eric Rosden, attorney at law, Washington, D. C.
Brief of international trade committee, Advertising Club of New York.
Memorandum of Richard J. Connor, attorney at law, Washington,
D. C....

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63

ADMINISTRATION OF ALIEN PROPERTY

MONDAY, JULY 1, 1946

UNITED STATES SENATE,

SUBCOMMITTEE OF THE COMMITTEE ON THE JUDICIARY,

Washington, D. C.

The subcommittee met at 10 a. m., pursuant to call, the Honorable James W. Huffman, presiding.

Present: Senator Huffman.

Senator HUFFMAN. The committee will be in order.

This is a subcommittee hearing of the Committee on the Judiciary, on S. 2039 and S. 2378. Copies of the bills referred to will be included in the record at this point.

(The bills are as follows:)

[S. 2039, 79th Cong., 2d sess.]

A BILL To amend section 32 (a) of the Trading With the Enemy Act of October 6, 1917, as amended Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That_(a) subdivision (C) of subsection (a) (2) of section 32 of the Trading With the Enemy Act of October 6, 1917, as amended (Public Law 322, Seventy-ninth Congress), is amended by inserting before the semicolon at the end of such subdivision the following: "or a person who was a victim of religious or racial persecution in the country of his origin or residence." (b) Subdivision (D) of such subsection is amended by inserting after the word "war" the following: "(other than a person who was a victim of religious or racial persecution in the country of his origin or residence)."

[S. 2378, 79th Cong., 2d sess.]

A BILL To amend the First War Powers Act, 1941

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the First War Powers Act, 1941 (55 Stat. 838), as amended, is hereby further amended by adding at the end of title III thereof the following:

"SEC. 305. The Trading With the Enemy Act of October 6, 1917 (40 Stat. 411), as amended, is hereby further amended by inserting after section 32 thereof, and before the section added by Public Law 382, Seventy-ninth Congress, the following sections:

"SEC. 33. (a) A foreign country or national thereof as defined pursuant to section 5 (b) hereof may not institute, prosecute, or further maintain a suit pursuant to section 9 (a) hereof in respect of any property or interest vested in or transferred to the Alien Property Custodian (other than any property or interest acquired by the United States prior to December 18, 1941), or the net proceeds thereof: Provided, That neither the Philippine Government nor any Philippine national shall, solely by reason of being, or having at any time been, domiciled in or a citizen or resident of the Philippines, be deemed a foreign national for purposes of any such suit.

(b) (1) Notwithstanding the provisions of section 7 (c) hereof, any person, other than a person who

"(A) would be barred by virtue of section 32 (a) (1) or (2) hereof from receiving a return of property; or

1

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