and paid by United States is charged with duty of protecting and caring for such property until end of war. There is of course no thought of confiscation or dissipation of property thus held in trust. LANSING File No. 763.72113/405 The Minister in the Netherlands (Garrett) to the Secretary of State [Telegram] THE HAGUE, November 22, 1917. 1672. Reichsanzeiger announces that provisions relative to compulsory registration of enemy property in Germany have been made applicable to United States commencing with November 30. GARRETT File No. 763.72113/414 The French Ambassador (Jusserand) to the Secretary of State [Translation] WASHINGTON, November 24, 1917. MR. SECRETARY OF STATE: The question of the stocks which Germany is even now endeavoring to build up in neutral countries with a view to post bellum activities can not but engross the attention of the Government of the Republic by reason of the advantages that country would speedily reap therefrom in resuming economic undertakings on the cessation of hostilities to the injury of the revictualling and trade of the Allies. Thus was my Government led to consider whether one of the solutions to be examined as a check to the schemes of the adversary could not be found in applying to enemy stocks the same rule as to enemy vessels sheltered in neutral harbors. The attachment which there might be occasion to bring into play would be of the nature of a conservatory measure which should be taken by the creditor states against the debtor Central Empires and affect the goods and property belonging to the said debtor Empires and held not by them but by third parties. The measure would call for: (1) A notice to the neutral states, holders of the encumbrances In bringing the foregoing suggestions to Your Excellency's knowledge, I have the honor to beg you kindly to advise me whether the American Government would not deem it expedient shortly to address to the Scandinavian countries, Holland, Switzerland, and Spain a note signed by the United States, France, and Great Britain and intended ultimately to secure the Allies in the possession of the stocks gathered in those neutral countries for the benefit of the Central Empires. Should the Federal Government coincide in these views, I would make it my duty to consult with it about the preparation of that diplomatic instrument whose final wording should be made the subject of a further exchange of views by the Allied Governments. Accept [etc.] JUSSERAND File No. 763.72115/3222 1 The Secretary of State to the Swedish Minister (Ekengren) No. 295 WASHINGTON, December 4, 1917. SIR: Referring to your notes of August 271 and October 29, 1917, wherein are proposed certain arrangements in regard to the handling by your Legation, in charge of Austro-Hungarian interests in the United States, of estates, compensation claims, etc., in this country of Austrian and Hungarian subjects, under the "Trading with the Enemy Act," I have now the honor to advise you of the receipt of a letter on the subject, dated November 19, 1917, from the Alien Property Custodian, in substance as follows: The office of the Alien Property Custodian will be amply equipped to handle all of these matters, and that office is required, as the Alien Property Custodian interprets the law, to assume the custody of such funds. The Legation of Sweden, in charge of AustroHungarian interests in the United States, may, of course, keep itself informed of the funds collected and of the parties interested and may notify the Government of Austria-Hungary from time to time that the funds are in the hands of the Alien Property Custodian. There is, the Alien Property Custodian points out, also an advantage which may result from this method of procedure, namely, that the creditors in the United States of the owners may proceed in the courts against the funds. This, perhaps, presents a strong ground of objection to the plan proposed by you. Accept [etc.] ROBERT LANSING 1 1Not printed. File No. 763.72113/412 The Secretary of State to the Alien Property Custodian (Palmer) WASHINGTON, December 4, 1917. SIR: The Department is in receipt of your letter of November 26, 1917, in which you state that a banker in London, who is the owner of record of shares of stock in the United States Steel Corp., has in pursuance of the income tax law of the United States filed with the corporation a statement certifying that while he is the registered owner of the stock, the real owner is the Public Trustee of England, and that this leads you to the conclusion that the London banker was carrying the stock for a German subject and that it has now been turned over to the Trustee. You point out that under the Trading with the Enemy Act all dividends from stock held by an enemy go to the Alien Property Custodian, and that your legal department is of the opinion that the rights of the Public Trustee of England are no greater than those of the person whose stock he holds, and that therefore the stock is still stamped with enemy character, and that the dividend should go to you as Alien Property Custodian, which position you are prepared to take unless the Department sees some objection thereto. Without expressing an opinion as to the legal phase of the question, the Department informs you that viewed from an international standpoint, it perceives no objection to your proposed action, provided you have satisfied yourself that the stock is in fact owned by an alien enemy. It seems important that this should be clearly established in order that any unnecessary complications may be avoided. I am [etc.] ROBERT LANSING Executive Order No. 2770, December 7, 1917, Supplemental By virtue of the authority vested in me by "An Act to Define, Regulate and Punish Trading with the Enemy and for Other Purposes", approved October 6, 1917, I hereby make the following orders, rules and regulations: I. I hereby prohibit any and all foreign insurance companies from doing business within the United States after February 1, 1918, unless such companies shall first obtain from the Secretary of the Treasury licenses to do business. II. I further hereby vest in the Secretary of the Treasury the power and authority to issue at any time, upon such terms and conditions as the Secretary of the Treasury may deem proper and as are not inconsistent with law, or to refuse, a license to any foreign insurance company to do business within the United States through agencies, branch offices or otherwise. THE WHITE HOUSE, 7 December, 1917. WOODROW WILSON Statement by the Alien Property Custodian (Palmer)1 Declaration of war with Austria-Hungary will not change the status of citizens or subjects of Austria-Hungary resident in this country. Such persons are not included within the term "enemy " as employed in the Trading with the Enemy Act, and their property in this country will not be molested or interfered with in any way. Deposits in the Postal Savings Banks of the United States, and deposits in other banks and banking institutions, belonging to citizens or subjects of the Austro-Hungarian Empire resident in this country are not liable to seizure by the Government and will not be taken into possession by the Alien Property Custodian. There is no reason whatever why such persons should be concerned about their property, real or personal, or their funds in bank, or securities, or other investments. Under the Trading with the Enemy Act the test of enemy character is one of residence and not nationality. The Alien Property Custodian will take into his possession only the property in this country held for, or on account of, or for the benefit of persons who are actually resident within the enemy territory. File No. 763.72113/414 The Secretary of State to the French Ambassador (Jusserand) No. 2017 WASHINGTON, December 14, 1917. EXCELLENCY: I have the honor to acknowledge the receipt of your note of November 24 requesting to be advised whether the American Government would deem it expedient shortly to address to the Scandinavian countries, Holland, Switzerland, and Spain a joint note with France and Great Britain for the purpose of securing to the Allies the possession of the stocks of goods gathered in those neutral The Official Bulletin, Washington, Dec. 10, 1917 (vol. 1, No. 180), p. 2. countries for the benefit of the Central Empires with the object of resuming economic activities on the cessation of hostilities, to the injury of the "revictualling and trade of the Allies." In reply to Your Excellency's inquiry I have to state that the Government of the United States has given careful consideration to the proposal of the French Government, and has reached the conclusion that at the present time it would be inexpedient for the Government of the United States to join in such representations to the neutral countries mentioned as are set forth in your note under acknowledgment. Accept [etc.] ROBERT LANSING File No. 763.72113/432 The Secretary of State to the Alien Property Custodian (Palmer) WASHINGTON, December 21, 1917. SIR: I beg to acknowledge the receipt of your letter of December 20,1 with regard to the question of making a demand for property belonging to and held for, by, on account of and on behalf of, and for the benefit of residents of Turkey who are enemies within the meaning of the Trading with the Enemy Act. In reply I desire to point out that Turkish interests in the United States are very small as compared to American holdings in Turkey and that any action on our part looking to the seizure of Turkish property would result in the Turkish Government seizing property in Turkey as a retaliatory measure with tremendous losses to American interests. In these circumstances and in view of the fact that we are not actually at war with Turkey, it is the opinion of this Department that no demand be made for property in the United States belonging to and held for, by, on account of, and on behalf of, and for the benefit of residents of Turkey. I am [etc.] File No. 371.11/220 ROBERT LANSING The Chargé in Switzerland (Wilson) to the Secretary of State [Telegram] BERNE, December 22, 1917, 5 p. m. [Received December 24, 4.30 a. m.] 2289. Department's 1227, December 15, 5 p. m.2 Spanish Embassy, Berlin, wires as follows: 1 Not printed. 2 Not printed; see telegram No. 1076, Oct. 31, ante, p. 266. |