German Government informs me, in note just received, that their liquidation of American oil properties in Roumania has not yet been effected but that this liquidation will be effected surely in the event of news of the liquidation of German properties in the United States.

WILSON

File No. 763.72113/415

The Secretary of State to the Swiss Minister (Sulzer)1 No. 88

WASHINGTON, January 3, 1918. SIR: The Department's attention has been called to the fact that in a number of cases involving the settlement in the courts of the United States of estates in which persons defined as enemies or allies of enemy by the provisions of the Trading with the Enemy Act, are interested, the consuls of the neutral countries having charge of the interests in the United States of the enemy or ally-of-enemy governments of which such persons are subjects, have made demands upon the present custodians of the funds involved for payment to them of the amounts due the respective enemy or ally-of-enemy subjects represented by them.

The Department has further been informed that the consuls of such neutral countries are appearing before workmen's compensation boards and other tribunals in the United States claiming the right to represent enemy or ally-of-enemy subjects in the collection und receipt of funds awarded by the boards and tribunals to such subjects.

I, therefore, beg to call your attention to the provisions of section 7(c) of the Trading with the Enemy Act, approved October 6, 1917, which read as follows:

If the President shall so require, any money or other property owing or belonging to or held for, by, on account of, or on behalf of, or for the benefit of an enemy or ally of enemy not holding a license granted by the President hereunder, which the President after investigation shall determine is so owing or so belongs or is so held, shall be conveyed, transferred, assigned, delivered, or paid over to the Alien Property Custodian.

In view of the fact that, pursuant to the provisions of the Trading with the Enemy Act, the President has appointed an Alien Property Custodian whose duty it is to receive funds owing and payable to enemy or ally-of-enemy subjects, the Department is of the opinion

The same, mutatis mutandis, on the same date, to the Spanish Ambassador, in charge of Turkish interests in the United States (No. 773), and to the Swedish Minister, in charge of Austro-Hungarian interests (No. 317).

59665-33-18

that it would be well if, in the interest of uniformity of action, and in order to obviate possible confusion and misunderstanding regarding matters of this character, you could find it convenient to bring to the attention of the Swiss consular officers in the United States the above-quoted provisions of the act in question.

Accept [etc.]

ROBERT LANSING

File No. 763.72113/433

The Belgian Minister (De Cartier) to the Secretary of State

No. 127

WASHINGTON, January 10, 1918.

[Received January 15.]

SIR: A British-French-Belgian conference was held in Paris on October 9, 1917, to consider measures to be taken, from now on, to protect the property and interests of the citizens or subjects of the Allies in enemy country or in territory occupied by the enemy.

The necessity of taking measures in this respect has been made imperative by the system of spoliation and destruction pursued by the German authorities against the property and interests of the Allies, notably in Belgium and in northern France.

As I have the honor to show by the attached documents (annex 2),1 since the invasion the Germans have applied themselves to ruining, more and more, Belgium and northern France by exorbitant financial exactions, by the requisition of cattle, of horses and of all the stocks of commodities and merchandise, by the carrying off and transportation to Germany of raw materials, of the machinery and tools of industrial plants, by the deportation of the workmen, by the destruction of factories, etc.

The situation has become the more alarming as, according to the latest advices from the occupied territories, the Germans are continuing to demolish all the factories, to cut down the forests, and to requisition from private individuals all sorts of objects, even down to carpets, bed-coverings, linen, clothing, shoes, etc.

It is impossible to foresee where these requisitions will end, and even whether the securities and valuables of private individuals will be safe from confiscation.

All this spoliation and destruction is carried out in accordance with a methodic plan acknowledged by the Germans, for the double purpose of increasing the resources of Germany and, at the same time, of exhausting completely the financial and economic resources of Belgium and of northern France, not only for the present but also for the future. Indeed, according to the thought of the German authorities, while the factories of Belgium and of northern

1 Not printed.

France will have been destroyed, German industries will be able to recommence work immediately after the war on account of their machinery remaining intact and even being augmented by all the machinery carried out of Belgium and France; in this way German industries would be in a position to furnish their products to the foreign markets of Belgium and France, and, in addition, to invade the domestic markets of these two countries.

It is to be feared that nothing will be left in Belgium and northern France, unless some means can be devised to cause the Germans to cease these depredations.

Under these circumstances, the conference assembled at Paris adopted several resolutions, notably the following:

(1) In each of the Allied countries organizations shall be constituted for the purpose of collecting and studying all useful information regarding:

(a) The private property and private interests of each Allied country in enemy territory or in territory occupied by the enemy;

(b) The private property and private interests of the enemy in the Allied countries.

(2) Enemy property and enemy interests existing at the end of the war in Allied countries or in territory occupied by the Allied troops, shall be considered as security held in common against the totality of the Allied private property and interests which has been in the power of the enemy.

(3) The Allied Governments themselves shall take, and shall recommend to the neutral states to take all necessary measures to prevent, within their territories, during the war and after the end of hostilities, the introduction and the negotiation of securities and valuables which have been, since the beginning of the war, in the power of the enemy.

(4) A declaration shall be communicated to Germany which has taken special measures concerning Allied private property. These various resolutions have been ratified by the Governments of Great Britain, France and Belgium.

In conformity with an understanding between these Governments, I have been instructed by my Government to communicate to you, Sir, the enclosed text of the final protocol1 and of the draft of the collective declaration adopted by the conference assembled at Paris (annex 1).2

I have also been instructed to ask the Government of the United States to be kind enough to give its adhesion to the resolutions and to the draft of declaration in question.

These resolutions, which are of a conservatory and preventive character, have been adopted to counteract the measures of confiscation and liquidation of Allied private property on the part of

the enemy; they constitute a warning which may cause Germany to modify her policy of spoliation.

The Governments of France, Great Britain and Belgium are profoundly appreciative of the great sympathy shown to their nationals in the United States-a sympathy which has shown itself in so many ways, especially by the generous and efficient aid given by the American Government to relieve the suffering of the people of northern France and of Belgium. Consequently, they take the liberty of commending earnestly to the benevolent consideration of the American Government this question which is of vital interest to the commerce, industry and fortunes of their nationals now so gravely menaced by the actions of the German authorities. It is to be specially noted that Belgium, whose territory is almost entirely occupied by the Germans, has not the guarantee of holding enemy property in its power a fact which leaves all private property in Belgium completely at the mercy of the Germans.

The aim sought by the conference could be much more easily attained if the American Government would, by its adhesion to the proposals in question, add the weight of the powerful influence which it is in a position to exercise in this highly important matter. Please accept [etc.] E. DE CARTIER

[Enclosure Translation] DRAFT DECLARATION

The Government of in presence of the different measures which have been applied by the German Government in respect of private Allied property and interests situated in Germany, in Alsace-Lorraine and on the territory occupied by German forces solemnly declare by these present their intention to obtain compensation for the losses sustained thereby.

They further declare that they do not intend, at least for the present, to avail themselves of the German provocations in view of modifying the policy which has hitherto been followed in each of these countries in respect of enemy property or interests, but they have decided to take the necessary steps in order to secure the preservation of the pledge actually at their disposal.

They wish to make it quite plain that they shall consider from now, the whole of German private property and interests situated on their respective territory, as a security for the whole of private property and interests held by enemies of the German Empire and actually under German control.

This "bloc " of private property and interests shall secure equitable compensation or restitutions.

File No. 763.72113/437

The British Chargé (Barclay) to the Secretary of State

No. 55

WASHINGTON, January 14, 1918.

[Received January 15.]

SIR: My Belgian colleague has communicated to me a copy of the note which he has addressed to you on the 10th instant, enclosing the final protocol of a recent Anglo-Franco-Belgian conference in Paris on the subject of Allied property and interests in enemy countries and in territory occupied by the enemy, and inviting the United States Government to adhere to the policy outlined therein.1

In conformity with instructions which I have received from His Majesty's Principal Secretary of State for Foreign Affairs, I have the honour to support the representation which has thus been made. to you by His Excellency Monsieur Cartier de Marchienne.

At the same time, I am directed to make it quite clear to you that the policy of the "bloc " entails no confiscation of enemy property, His Majesty's Government being of opinion that such confiscation is contrary to all the modern principles of international law, but that it means that the nations who adhere thereto will all act together in refraining from releasing enemy property on the conclusion of peace until they are assured that Allied property in enemy countries will be released in the same way.

I have [etc.]

COLVILLE BARCLAY

File No. 763.72112/6247

The Acting Secretary of State to the Swedish Minister (Ekengren) No. 331

WASHINGTON, January 18, 1918.

SIR: I have the honor to acknowledge the receipt of your notes, No. 1728/23 of October 29, 1917, and Ad No. 1728/23 of January 7, 1918,2 stating that you have been requested by the Austro-Hungarian Government to ascertain how measures to be taken by the Government of the United States pursuant to the provisions of the Trading with the Enemy Act, approved October 6, 1917, will apply to AustroHungarian subjects.

By way of reply I beg to enclose for your information a copy of the act in question together with a copy of an Executive order issued on October 12, 1917,3 pursuant to the provisions thereof.

In view of the impossibility of anticipating the varying circumstances which may arise in connection with the administration of the provisions of the act, you will readily appreciate the reluctance with

1

1 See supra.

'Not printed.

3

3 See ante, p. 263.