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the late claims will necessitate the continuance of the expensive machinery of the Mixed Claims Commission for some months, which would not otherwise be necessary or which would not have been necessary to the same extent if the claims had been presented within the time prescribed by the agreement of August 10, 1922, your Government considers that the claimants for whom a remedy will thus be afforded should participate to an appropriate extent in the expenses which will result from the prolongation of the life of the commission. This, you suggest, might be accomplished by the collection of a fee for the final filing of each claim, thus eliminating to the greatest possible extent claims which are unfounded or which are presented in unjustified amounts, and an additional fee for preparing and adjudicating the claim.

I desire to express my appreciation of the willingness of your Government to cooperate with my Government in an effort to complete the adjudication of the claims defined above. My Government, equally with your Government, is anxious that the work of the Mixed Claims Commission should be completed at the earliest date practicable and will use its best endeavors to that end. With respect to your suggestion that the claimants who will be benefited by an extension of time for the presentation of so-called late claims should share to an appropriate extent the additional expense incident to the prolongation of the labors of the Mixed Claims Commission, my Government considers that it would not be feasible to require the deposit of a fee as a condition precedent to the adjudication of the claims. In an effort, however, to meet the views of your Government that it should be relieved of this additional expense, the President would be willing to recommend to the Congress that the one-half of one per cent which the Secretary of the Treasury is authorized by the “Settlement of war claims act of 1928" to deduct from awards made by the Mixed Claims Commission before payment thereof to the claimants as reimbursement for the expenses of the United States incident to the adjudication of the claims, shall, in so far as regards the late claims, be made available to your Government for defraying such expenses as may be incurred by your Government in connection with the adjudication of such late claims. I, therefore, suggest the following as the terms of the agree ment between the two Governments:

(1) That all the late claims of American nationals against Germany, notice of which was filed with the Department of State prior to July 1, 1928, of the character of which the Mixed Claims Commission, United States and Germany, now has jurisdiction under the claims agreement concluded between the United States and Germany on August 10, 1922, shall be presented to the commission with the supporting evidence within six calendar months from the first day of February, 1929.

(2) That the answer of the German Government to each claim presented shall, together with supporting evidence, be filed with the commission within six calendar months from the date on which the claim is presented to the commission, as provided for in paragraph 1.

(3) That the subsequent progress of the claims before the commission, including the submission of additional evidence and the filing of briefs, shall be governed by rules prescribed by the commission, it being understood that both Governments are equally desirous of expediting the completion of the work of the commission.

(4) That the preparation and adjudication of the claims shall be governed by the same legal principles as have so far been applied in the proceedings before the Mixed Claims Commission.

(5) That the President will recommend to the Congress that the one-half of 1

per cent which the Secretary of the Treasury is authorized by the “Settlement of war claims act of 1928” to deduct from awards made by the Mixed Claims Commission before payment thereof to the claimants for application to the expenses of the United States incident to the adjudication of the claims, shall, in so far as regards the late claims, be made available to the German Government for defraying such expenses as may be incurred by that Government in connection with the adjudication of such late claims.

Upon the receipt from you of a note expressing the concurrence of your Government in the conditions outlined in paragraphs 1 to 5, inclusive, the agreement contemplated by paragraph (j) of section 2 of the “Settlement of war claims act of 1928" will be regarded as consummated. Accept, Excellency, the renewed assurances of my highest consideration.

FRANK B. KELLOGG. His Excellency Herr FRIEDRICH WILHELM VON PRITTWITZ UND GAFFRON,

Ambassador of Germany.

(The German Ambassador to the Secretary of State]

DEUTSCHE BOTSCHAFT,

Washinglon, D. C., den 31. Dezember 1928. HERR STAATSSEKRETÄR:

Ich beehre mich den Empfang der Note Eurer Exzellenz vom 31. Dezember 1928 bezüglich der Regelung der Late Claims vor der Deutsch-Amerikanischen Gemischten Kommission ergebenst zu bestätigen.

In Erwiderung darauf beehre ich mich die Zustimmung meiner Regierung zu der Regelung der Angelegenheit auszusprechen, wie sie in den Paragraphen 1 bis 5 der Note Eurer Exzellenz vorgeschlagen ist und Ihnen mitzuteilen, dass meine Regierung das im Paragraphen J des Abschnittes 2 der “Settlement of War Claims Act of 1928” in Aussicht genommene Abkommen als in diesem Sinne getroffen ansieht.

Genehmigen Sie, Herr Staatssekretär, die erneute Versicherung meiner ausgezeichnetsten Hochachtung.

F. W. v. PRITTWITZ. Seiner Exzellenz

Dem Staatssekretär der Vereinigten Staaten,
Herr FRANK B. KELLOGG,

Washington, D. C.
(The German Ambassador to the Secretary of State)
(Translation)

GERMAN EMBASSY,

Washington, D. C., December 31, 1928. Mr. SECRETARY OF STATE:

I have the honor to acknowledge receipt of your excellency's note of December 31, 1928, with reference to the adjudication of the late claims before the Mixed Claims Commission, United States and Germany.

In reply thereto I beg to express to your excellency the concurrence of my Government in the proposals for adjusting this matter, as outlined in paragraphs 1 to 5 inclusive of your excellency's note, and to inform you that my Government considers the agreement contemplated by subsection (j) of Section 2 of the “Settlement of war claims act of 1928" as thus consummated. Accept, excellency, the renewed assurance of my highest consideration.

F. W. v. PRITTWITZ. His Excellency The Secretary of State of the United States, Mr. Frank B. KELLOGG,

Washington, D. C.

USE OF FUNDS COVERED INTO THE TREASURY UNDER

THE SETTLEMENT OF WAR CLAIMS ACT OF 1928

COMMUNICATION

FROM THE

PRESIDENT OF THE UNITED STATES

TRANSMITTING

DRAFT OF PROPOSED LEGISLATION AFFECTING THE USE OF FUNDS REQUIRED TO BE COVERED INTO THE TREASURY UNDER THE SETTLEMENT OF WAR CLAIMS ACT OF 1928

FEBRUARY 25 (calendar day, FEBRUARY 26), 1929.-Read; referred to the Com

mittee on Appropriations and ordered to be printed

THE WHITE HOUSE,

Washington, February 26, 1929. The PRESIDENT OF THE SENATE.

Sir: I have the honor to transmit herewith for the consideration of Congress a draft of proposed legislation affecting the use of funds required to be covered into the Treasury as miscellaneous receipts under the settlement of war claims act of 1928.

The details of the proposed legislation, the necessity therefor, and the reason for its submission at this time are set forth in the letter of the Director of the Bureau of the Budget transmitted herewith, with whose comments and observations thereon I concur. Respectfully,

CALVIN COOLIDGE.

BUREAU OF THE BUDGET,

Washington, February 26, 1929. The PRESIDENT.

SIR: I have the honor to submit herewith for your consideration & draft of proposed legislation affecting the use of funds required to be covered into the Treasury as miscellaneous receipts under the settlement of war claims act of 1928:

The total amounts authorized to be deducted under section 2 (e) of the settle ment of war claims act of 1928 from payments on account of the awards of the Mixed Claims Commission, United States and Germany, rendered under the agreement between the United States and Germany of December 31, 1928 (entered into under the authority of section 2 (j) of such act) are hereby made available for reimbursing Germany on account of the expenses incurred in connection with the adjudication by the commission of claims under the said agreement, and the Secretary of the Treasury is authorized and directed to pay the total amounts so deducted to such representative of the German Government as the Secretary of State may designate.

Pursuant to authority contained in section 2 (j) of the settlement of war claims act of 1928, the United States entered into an agreement with Germany on December 31, 1928, for the extension of the jurisdiction of the Mixed Claims Commission, United States and Germany, to include claims of the same character as those of which the commission had jurisdiction under the agreement between the two Governments signed August 10, 1922, which were not filed in time to be submitted to the commission under the terms of that agreement bút which were filed with the Department of State prior to July 1, 1928.

Section 2 (e) of the act provides that there shall be deducted from payments of awards of the Mixed Claims Commission as reimbursement for the expenses incurred by the United States in connection with the adjudication of the claims an amount equal to one-half of 1 per cent thereof, which it is provided shall be deposited in the Treasury as miscellaneous receipts.

It is proposed that the amount of one-half of 1 per cent which is authorized to be deducted shall, so far as the claims filed under the agreement between the United States and Germany of December 31, 1928, are concerned, be made available to the German Government for defraying such expenses as may be incurred by that Government in connection with the adjudication of such claims.

It is estimated that this deduction of one-half of 1 per cent will amount to approximately $50,000.

The proposed legislation is necessary to meet a contingency which has arisen since the transmission of the Budget for the fiscal year 1930, and its approval is recommended. Very respectfully,

H. M. LORD, Director of the Bureau of the Budget.

PROPOSED LEGISLATION

The total amounts authorized to be deducted under section 2 (e) of the settlement of war claims act of 1928 from payments on account of the awards of the Mixed Claims Commission, United States and Germany, rendered under the agreement between the United States and Germany of December 31, 1928 (entered into under the authority of section 2 (j) of such act), are hereby made available for reimbursing Germany on account of the expenses incurred in connection with the adjudication by the commission of claims under the said agreement, and the Secretary of the Treasury is authorized and directed to pay the total amounts so deducted to such representative of the German Government as the Secretary of State may designate.

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2d Session

No. 695

EXTENSION OF JURISDICTION OF WAR CLAIMS ARBITER

TO INCLUDE CERTAIN PATENT CLAIMS

FEBRUARY 17, 1930.—Committed to the Committee of the Whole House on the

state of the Union and ordered to be printed

Mr. Hawley, from the Committee on Ways and Means, submitted

the following

REPORT

[To accompany H. R. 9142)

The Committee on Ways and Means, to whom was referred the bill H. R. 9142) to extend the jurisdiction of the arbiter under the settlement of war claims act to patents licensed to the United States, pursuant to an obligation arising out of their sale by the Alien Property Custodian, having considered the same, report it back to the House without amendment, with the recommendation that the bill do pass.

The settlement of war claims act of 1928 provided, among other things, for the settlement of claims against the United States (arising out of events occurring in the United States during the World War) in respect of German-owned ships, title to and possession of which were taken by the United States; the radio station at Sayville, Long Island, beneficially owned by German nationals, which was taken by the United States; and certain patents (belonging to German, Austrian, or Hungarian nationals, seized by the Alien Property Custodian of the United States under the trading with the enemy act) which were used by or for the United States or which were sold or licensed to the United States by the Alien Property Custodian.

Proceedings in these cases are in progress before the war claims arbiter, appointed under the settlement of war claims act, and awards of fair compensation will be made by him in due course in favor of the German, Austrian, and Hungarian nationals, and payment of these awards will be made in the manner and in the order of priority prescribed by the act (secs. 4 and 7).

There remains but one class of patent claims for the Congress to pass upon. This class is covered by the pending bill. Certain of the patents which were seized by the Alien Property Custodian during the war were sold by him in 1919, 1920, and 1921 to the

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