The Disposal of Alien Property

Report Outline
The Question of Suitaels Provision
The Right to Confiscate German Property
Administration of Alien Property
Questioned Alien Property Transactions
Proposed Alien Property Legislation

The disposition to be made of German, Austrian and Hungarian property remaining in the hands of the Alien property Custodian will come up for final decision by Congress upon the completion of the work of the German-American Mixed Claims Commission within the next few months. Property in amounts up to $10,000, and this amount of each larger claim, has already been returned under congressional authorization. Whether the remaining property is to be returned in full or in greater part retained by the United States to meet the claims of American nationals against the former enemy governments will be one of the most vigorously debated questions to come before the new Congress.

Under the Knox-Porter resolution of July 2, 1921, which terminated the state of war with Germany and Austro-Hungary, the former enemy property in effect became security, to be retained by the United States until such time as “suitable provision” had been made by the German, Austrian and Hungarian Governments for the settlement of American private claims.

German Call for Restoration

In a recent diplomatic note the claim was made by the German Government that “suitable provision” for the satisfaction of all American claims against it had been made under the Dawes plan. The return of all German private property in the possession of the United States was called for or, the ground that the terms of the Knox-Porter Resolution, as incorporated in the separate treaty of peace signed at Berlin August 25, 1921, had been met by the agreement for the allocation of the Dawes annuities signed at Paris, January 14, 1925.