Nellie E. Schnyder

Decision Date21 July 1954
Docket NumberB-117819
Citation34 Comp.Gen. 32
PartiesACTING COMPTROLLER GENERAL WEITZEL TO NELLIE E. SCHNYDER, MARITIME COMMISSION
CourtComptroller General of the United States

Vessels - foreign - just compensation claims vested in alien property custodian the pending treaty with the federal republic of Germany, which would preclude german nationals from asserting war claims against the united states, would be ineffectual to prejudice a claim for just compensation, arising from the requisition of a german-owned vessel, which was vested in the alien property custodian pursuant to the trading with the enemy act of 1917, as amended, and from which the former owner of the vessel has been divested of all beneficial interest and control.

Reference is made to your letter of November 16, 1953, file reference 2d1:214, transmitting a voucher, with attachments, providing for deposit with the treasurer of the united states the sum of $422, 684.05 as just compensation for the ex-1german vessel arauca, without prejudice to such rights as the united states May acquire under the provisions the " convention on relations between the three powers and federal republic of Germany, signed at bonn on May 26, 1952, " and " a protocol to the north atlantic treaty signed at paris on May 27, 1952" (senate executives q and r, 82nd congress, 2nd session). You request advice as to whether the transfer of funds should be made in view of the provisions of the so- called " peace contract.'

It is reported that on July 28, 1941, the maritime commission requisitioned title to and possession of the arauca pursuant to the idle foreign vessels act of June 6, 1941, 50 U.S.C App. 1271, and executive order no. 8771, 6 f.R. 2759.

The united states declared war on Germany on December 11, 1941 and on August 28, 1942, the alien property custodian pursuant to the trading with the enemy act of 1917, 40 Stat 411, as amended by the first war powers act of December 18 1941, 50 U.S.C. App. 616 and executive order no. 9095, 7 F. R. 1971, as amended, issued vesting order no. 126, 7 f.R. 7061. By the terms of that order "all property * * * owned or controlled by, payable or deliverable to * * * the hamburg American line" was vested in the alien property custodian "to be held, used, administered, liquidated, sold or otherwise dealt with in the interest of and for the benefit of the united states.' more specifically, vesting order no. 17336, February 12, 1951, 16 f.R. 2015, issued by the attorney general, as successor to the alien property custodian, executive order no. 9788, October 14, 1946, provided as follows:

* * * any and all claim to just compensation (under the idle foreign vessels act) * * * created in favor of the owner or owners of the s.S. Arauca by virtue of and arising out of the requisitioning of said vessel * * * by the united states * * * and and and all rights to demand, enforce and collect said claim and all rights thereunder, including particularly but not limited to any and all monies heretofore or hereafter paid or deposited as compensation * * * is hereby vested in the attorney general * * *. (italics supplied.)

However, prior to the present final determination of just compensation for the arauca, the united states became a party to the " convention on relations between the three powers and the federal republic of Germany, " supra, which provided (article 8) that it and the previously concluded " convention on the settlement of matters arising out of the war and the occupation" would enter into force simultaneously. Article 1 of chapter 9 of the latter convention provides, in pertinent part, as follows:

* * * german nationals * * * shall not assert against countries which * * * have been at war with Germany * * * claims of any description arising out of action taken or authorized by the government of these countries betweeen 1 September 1939 and 5 June 1945 because of the existence of a state of war in
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