of nations, States, or free cities other than Austria or Hungary or AustriaHungary and is so owned at the time of the return of its money or other property hereunder, and has filed the written consent provided for in subsection (m); or

"(13) A partnership, association, or other unincorporated body of individuals, having its principal place of business within any country other than Austria, Hungary, or Austria-Hungary, or a corporation organized or incorporated within any country other than Austria, Hungary, or Austria-Hungary, and that more than 50 per centum of the interest or voting power in any such partnership, association, other unincorporated body of individuals, or corporation, was at such time, and is at the time of the return of any money or other property, vested in citizens or subjects of nations, States, or free cities other than Austria, Hungary, or Austria-Hungary, and that the written consent provided for in subsection (m) has been filed; or

"(14) An individual who at such time was a citizen or subject of Germany or who, at the time of the return of any money or other property, is a citizen or subject of Germany or is not a citizen or subject of any nation, State, or free city, and that the written consent provided for in subsection (m) has been filed; or

"(15) The Austro-Hungarian Bank, except that the money or other property thereof shall be returned only to the liquidators thereof, and only if such liquidators give a bond, in a penal sum and with sureties satisfactory to the President or to the court, as the case may be, conditioned that they will redeliver to the Alien Property Custodian all such money or other property distributable to the Government of Austria or Hungary; or

"(16) An individual who at the time of the return of such money or other property is not a citizen or subject of Austria or Hungary, and that the written consent provided for in subsection (m) has been filed, and that no suit or proceeding against the United States or any agency thereof is pending in respect of such return, and that such individual has filed a written waiver renouncing on behalf of himself, his heirs, successors, and assigns any claim based upon the fact that at the time of such return he was in fact entitled to such return under any other provision of this act :--"

SEC. 10. (a) Subsection (d) of section 9 of the trading with the enemy act, as amended, is amended to read as follows:

"(d) Whenever a person, deceased, would have been entitled, if living, to the return of his money or other property hereunder, then his legal representative may proceed for the return of such money or other property as provided in subsection (a) hereof, and such money or other property may be returned to such legal representative without requiring the appointment of an administrator, or an ancillary administrator, by a court in the United States, or to any such ancillary administrator for distribution directly to the persons entitled thereto : Provided, however, That the President or the court, as the case may be, before granting such relief shall impose such conditions by way of security or otherwise, as the President or the court, respectively, shall deem sufficient to insure that such legal representative, administrator, or ancillary administrator will redeliver to the Alien Property Custodian such portion of the money or other property so received by him as shall be distributable to any person not eligible as a claimant under subsection (a), (b), or (n) hereof." (b) Subsection (e) of section 9 of the trading with the enemy act, as amended, is amended by striking out the period at the end thereof and inserting a semicolon and the following: "nor shall a debt be allowed under this section unless notice of the claim has been filed, or application therefor has been made, prior to the date of the enactment of the settlement of war claims act of 1927."

(c) Subsection (g) of section 9 of the trading with the enemy act is amended to read as follows:

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(g) The legal representative of a person, deceased, whose money or other property has been conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian or seized by him hereunder and held by him or by the Treasurer of the United States, may (if not entitled to proceed under subsection (d) of this section) proceed under subsection (a) for the recovery of any interest, right, or title in any such money or other property which has, by reason of the death of such person, become the interest, right, or title of a citizen of the United States, unless such citizenship was acquired through naturalization proceedings in which the declaration of intention was filed after November 11, 1918 or has become, prior to the enactment of the settle

ment of war claims act of 1927, the interest, right, or title of a person eligible as a claimant under subsection (a), (b), or (n) of this section. Such legal representative shall give a bond, in a penal sum and with sureties satisfactory to the President or the court, as the case may be, condition that he will redeliver to the Alien Property Custodian all such money or other property not distributed to such citizen or person so eligible, or, if deceased, to his heirs or legal representatives."

SEC. 11. Subsections (j) and (k) of section 9 of the trading with the enemy act, as amended, are amended so as to comprise three subsections, to read as follows:

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(j) The Alien Property Custodian is authorized and directed to return to the person entitled thereto, whether or not an enemy or ally of enemy and regardless of the value, any patent, trade-mark, print, label, copyright, or right therein or claim thereto, which was conveyed, transferred, assigned, or delivered to the Alien Property Custodian or seized by him, and which has not been sold, licensed, or otherwise disposed of under the provisions of this act, and to return any such patent, trade-mark, print, label, copyright, or right therein or claim thereto, which has been licensed, except that any patent, trade-mark, print, label, copyright, or right therein or claim thereto, which is returned by the Alien Property Custodian and which has been licensed, or in respect of which any contract has been entered into, or which is subject to any lien or encumbrance, shall be returned subject to the license, contract, lien, or encumbrance.

"(k) Except as provided in section 27 paragraphs (12), (13), (14), and (16) of subsection (b) of this section shall apply to the proceeds received from the sale, license, or other disposition of any patent, trade-mark, print, label, copyright, or right therein or claim thereto, conveyed, transferred, assigned, or delivered to the Alien Property Custodian, or seized by him.

"(1) This section shall apply to royalties paid to the Alien Property Custodian, in accordance with a judgment or decree in a suit brought under subsection (f) of section 10; but shall not apply to any other money paid to he Alien Property Custodian under section 10."

SEC. 12. Section 9 of the trading with the enemy act, as amended, is amended by adding at the end thereof the following new subsections :

"(m) No money or other property shall be returned under paragraph (12), (13), (14), or (16) of subsection (b) or under subsection (n) unless the person entitled thereto files a written consent to a postponement of the return of an amount equal to 20 per centum of the aggregate value of such money or other property, as determined by the Alien Property Custodian, and the investment of such amount in accordance with the provisions of section 25. Such amount shall be deducted from the money to be returned to such person, so far as possible, and the balance shall be deducted from the proceeds of the sale (in accordance with the provisions of section 12) of so much of the property as may be necessary, unless such person pays the balance to the Alien Property Custodian, except that no property shall be so sold prior to the expiration of six years from the date of the enactment of the settlement of war claims act of 1927 without the consent of the person entitled thereto.

"(n) In the case of property consisting of stock or other interest in any corporation, association, company, or trust, or of bonded or other indebtedness thereof, evidenced by certificates of stock or by bonds or by other certificates of interest therein or indebtedness thereof, or consisting of dividends or interest or other accruals thereon, where the right, title, and interest in the property (but not the actual certificate or bond or other certificate of interest or indebtedness) was conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian, or seized by him, if the President determines that the owner thereof or of any interest therein has acquired such ownership by assignment transfer, or sale of such certificate or bond or other certificate of interest or indebtedness (it being the intent of this subsection that such assignment, transfer, or sale shall not be deemed invalid hereunder by reason of such conveyance, transfer, assignment, delivery, or payment to the Alien Property Custodian or seizure by him), and that the written consent provided in subsection (m) has been filed, then the President may make in respect of such property an order of the same character, upon the same conditions, and with the same effect as in cases provided for in subsection (b), including the benefits of subsection (c).

"(o) The provisions of paragraph (12), (13), or (14) of subsection (b) or of subsection (m) or (n) of this section, and (except to the extent therein

provided) the provisions of paragraph (16) of subsection (b), shall not be construed as diminishing or extinguishing any right under any other provision of this act in force immediately prior to the enactment of the settlement of war claims act of 1927."

SEC. 13. The trading with the enemy act, as amended, is amended by adding thereto the following new sections:

"SEC. 26. (a) In the case of money (including the proceeds of property converted into money) deposited in the Treasury of the United States under section 12, the Alien Property Custodian shall allocate among the various trusts (1) the earnings accruing on such money (including the proceeds of any bonds or certificates of indebtedness in which such earnings are invested, and the earnings thereon) prior to March 4, 1923, and (2) the earnings accruing, on or after March 4, 1923, or the date on which the money was so deposited (whichever date is earlier) and prior to the date on which such allocation is made, on the earnings computed under clause (1). Such allocation shall be made under regulations prescribed by the Secretary of the Treasury and shall be based upon the average rate of earnings (determined by the Secretary of the Treasury) on the total amounts deposited under section 12.

"(b) In the case of any person entitled, under subsection (a) of section 9 or paragraphs (1) to (8), both inclusive, or paragraph (11) or (15), of subsection (b) of section 9, to the return of money or other property conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian, or seized by him, the Alien Property Custodian, when the allocation has been made, is authorized and directed to pay to such person, notwithstanding any receipt or release given by him, the amount allocated to his trust.

"(c) In the case of persons entitled, under paragraph (12), (13), (14), or (16) of subsection (b) of section 9, to such return, and in the case of persons who would be entitled to such return thereunder if all such money or property had not been returned under paragraph (9) or (10) of such subsection, and in the case of persons entitled to such return under subsection (n) of section 9, an amount equal to the aggregate amount allocated to their trusts shall be credited against the sum of $25,000,000 invested in participating certificates under paragraph (1) of subsection (b) of section 25. If the aggregate amount so allocated is in excess of $25,000,000, an amount equal to the excess shall be invested in the same manner. Upon the repayment of any of the amounts so invested, under the provisions of section 5 of the settlement of war claims act of 1927, the amount so repaid shall be distributed pro rata among such persons, notwithstanding any receipts or releases given by them.

"(d) In the case of any other enemy or ally of enemy entitled to such return, the Alien Property Custodian shall deposit the amount allocated to his trust in the Treasury in the name of such person until otherwise directed by Congress. "(e) The payment provided for in subsection (a), the investment provided for in subsection (c), and the deposit provided for in subsection (d), shall be made out of the unallocated interest fund.

"SEC. 27. The Alien Property Custodian is authorized and directed to return to the United States any consideration paid to him by the United States under any license, assignment, or sale by the Alien Property Custodian to the United States of any patent (or any right therein or claim thereto, and including an application therefor and any patent issued pursuant to any such application). "SEC. 28. As used in this act the term 'unallocated interest fund' means the sum of (1) the earnings accruing prior to March 4, 1923, on money (including the proceeds of property converted into money) deposited in the Treasury of the United States under section 12 (including the proceeds of any bonds or certificates of indebtedness in which such earnings are invested, and the earnings thereon), plus (2) the earnings accruing on or after March 4. 1923, or the date on which the money was so deposited (whichever date is earlier) and prior to the date on which the allocation provided for in section 26 is made, on the earnings computed under clause (1) of this section."

SEC. 14. As used in this act

DEFINITIONS

(a) The term "person" means an individual, partnership, association, or corporation.

(b) The term "German national" means

(1) An individual who, on April 6, 1917, was a citizen or subject of Germany, or who, on the date of the enactment of this act, is a citizen or subject of Germany.

(2) A partnership, association, or corporation, which on April 6, 1917, was organized or created under the law of Germany but excluding any such partnership, association, or corporation, more than 50 per centum of the interest or voting power in which was on April 6, 1917, or on the date of the enactment of this act, vested (directly or indirectly) in citizens or subjects of Austria, Hungary, or Austria-Hungary.

(3) An individual (other than a citizen or subject of Austria, Hungary, or Austria-Hungary) whose claim is based upon an interest on April 6, 1917, in a partnership, association,. or corporation excluded under paragraph (2). (4) The Government of Germany.

(c) The term "Austrian or Hungarian national" means

(1) An individual (other than a German national) who, on April 6, 1917, was a citizen or subject of Austria, Hungary, or Austria-Hungary, or who, on the date of the enactment of this act, is a citizen or subject of Austria or Hungary;

(2) A partnership, association, or corporation (other than a German national) which, on April 6, 1917, was organized or created under the law of Austria, Hungary, or Austria-Hungary, if more than 50 per centum of the interest or voting power therein was, on April 6, 1917, or on the date of the enactment of this act, vested (directly or indirectly) in citizens or subjects of Austria, Hungary, or Austria-Hungary;

(3) The Government of Austria, Hungary, or Austria-Hungary.

(d) The term United States" when used in a geographical sense includes the Territories and possessions of the United States and the District of Columbia.

The CHAIRMAN. The committee will come to order. I have asked the Secretary of State to appear before the committee, thinking perhaps there would be some questions asked by members of the committee, some perhaps of a confidential nature, and others that he is perfectly willing to be given to the world.

STATEMENT OF HON. FRANK B. KELLOGG, SECRETARY OF STATE

The CHAIRMAN. I will ask the Secretary if he appeared before the House committee?

Secretary KELLOGG. No; I did not appear before the House committee. Chairman Green came down and talked with me about the history of the Dawes plan, the payments to be made under it, and the Paris agreement, whereby we were to receive our Army costs and 24 per cent for our other claims. Senator King offered a resolution last session of Congress, I think it was, Senator?

Senator KING. Yes.

Secretary KELLOGG. Asking for all the correspondence bearing on the subject of the Berlin treaty, the Dawes plan, and the Paris agreement, and I immediately went to work to get the consent of the British and German Governments to publish it. I did not get the consent of the German Government until, I think, after the meeting of the House Ways and Means Committee. But I did get the consent of the British Government, and furnished the correspondence between the British Government and the United States Government to the House committee. I also outlined orally to Chairman Green the substance of the correspondence with the German Government pertaining to the alien property held by the Alien Property Custodian.

Now, I do not know any information that I can give the committee other than appears in all the documents and correspondence which I asked the President to send the Senate in response to

Senator King's resolution. Nevertheless, if there is anything you wish especially to ask me, or if you wish me to state the history of those negotiations, I am perfectly willing to do it.

The CHAIRMAN. I think perhaps it would be just as well, Mr. Secretary, for you to state them briefly. And then after that statement why it may suggest some questions that some of the members of the committee may wish to ask.

Secretary KELLOGG. Well, of course, they are really all in these documents that I had the President send to the Senate. But I am willing to go over the matter and give you the general history of it as bearing on the payment of the American claims and the return of the German property.

The CHAIRMAN. Would you at this time care to give the committee your opinion of the House bill as it is, whether it is satisfactory?

Secretary KELLOGG. Oh, no; I do not think I would care to give that opinion. I have never examined it closely. I understand that the bill in substance enunciates in a general statement the principle of returning all the German alien property to the owners. Temporarily—and I may not be able to express it perfectly-temporarily they propose to take 50 per cent of the value of the ships, radio stations, and patents amounting to $50,000,000, and apply them on the payment of the American claims against Germany growing out of the damages accruing to our citizens during the war, to take 20 per cent of the alien property and apply that to the payment of the American claims, and to take about $25,000,000 of interest that accrued. on the proceeds of German property held by the Alien Property Custodian, or earnings of that property prior to the time the Congress provided for the payment of the income of that property to the claimants to the property. Now that is about as far as I have gone in the examination of the bill.

Leading up to the agreement whereby we were to receive our Army costs and 214 per cent, the committee is probably aware of the fact that the London conference was called for the purpose of putting in force the Dawes plan. The conference ended by signature of the protocol putting the Dawes plan into effect on the 1st of September, 1924, while I was in England. I attended that conference on behalf of the United States, although we did not sign the agreement putting it into force. Under the Dawes plan, as the committee are aware, Germany was to make what you might call global payments, that is, payments in lump sums into the Reichsbank, which was created under the Dawes plan, or to be created by Germany, in discharge of all claims of all the allied and associated powers, the United States being the associated power. Germany was to pay 1,000,000,000 gold marks in 1924-25. The next year 1,220,000,000 gold marks. The next year 1,200,000,000 gold marks. The next year 1,750,000,000 gold marks. And thereafter 2,500,000,000 gold marks, with certain minor qualifications for increase or decrease, which I do not think bear on this question.

Senator KING. Thereafter and for how long, Mr. Secretary? Secretary KELLOGG. There is no limit of time. The Dawes plan did not pretend to fix the claims of the allied and associated powers, nor limit the amount that Germany was to pay.