1 INTLRNATIONAL COUlZTOF JUSTICE
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PLEADTNGS, ORAL ARGUMENTS, DOCUMENTS
INTERHANDEL CASE
(SW1?'%13flLr\NI~ Ir.liNITE11 S'i'ri'TESOF AniIEl<lC..i]
JL~I~~~~Il~l 1;21 hl;iI<CI1959 SECTION A.-APPLICATION INSTITUTING
PROCEEDINES
[ï'vartslalio~~.!yIheHcgistryJ
APPLICrtTION INSTITUTING PROCEEDINGS BI' TEII:
SWISS CONFEDEIIATION AGAINST THE UNITED STATES
01; AR'IEI<ILAARIIRESSI~U TO THE REGISTRAR OF THL
IN'I'EKNATIONAT,COUR'S 017 .JUSTECE, PEACE PPAL:lI;E,
THE I-IiZC;UL N,ETHBRLANDS
(tl:\i\'l>1<11 ?O TlII? RI:C;ISTHi\R OF THE COURT ON 2 OCTOBEH
L 1 1-1 S S 01 I I s c i TO -riiii
R1:.IIISl<I,rlNIIiIN1) HY 'TIII? CO-RGIZN?' 1:01< TI-Ill SIVIS5
C~?Jl~~~l~l~I<.\~~l1?i -IlII C,\SI<)
'l'lic iiiitlcrçi~tictl, :icti;LS tiic t\gciit of tIic Siriss 1;vclcr;il
(:ciiiiiçiIi;is tlic Iiniiri~irto iiistitiitc ~irricccdirigsbcfnrc tliitcr-
ii;itititi;il CiiucifJiisticc in tI1eclis]>utcwliicli haç nriscn bctivccn
tlic Ijiiitecl Stcitesui Arricricn xiid Sivitzcrlrtncl rcl~iting to tlic
rcstitiitioii by thc United Stntcs of thc açscts of tlie Suciéfi iiilcr-
nciiioii(11cfirit/rpro~/ici~niiollsind/r.çivielle.e1 covr~iricrcinlcsS'.:t.,
ciitcrcrlirl tlic Coii~n?crcinlRegister of thc Urbritl District of U;~slc
riii unc ~Utli, I~S. Ttiis Al-il~licatioiibroiight to yous knowlcclgc
in confnrmity r\.itli rirtiçlc 40, pnrngrnpli I, of tlie Stiitute and
12rtiçle 32 of tlic IC~ilcsoi tl-icI11tcrnation;il Coiirt of Justicc.
Tlic I;its ciilwliicli tlic ljrcsc~it :Ilililic;ilioii is foundcd arc tlic
ioIloivi~i:
r. 13ydccisirins rl;ttprl l:ctririi;iry 16th i~riclslliril zqtli, 1942, ;~iid
otlicrs, t;ikrtl in ;i~>pIic;itirirîof Ci111tr:cltatcs lnwç oil circmy
~~rn~wrty-'Cr:idiiig ~villi Itie 1:iicniy Act of Octobcr Gtli, t917.
togct l~cr\vit11;uiieiicInicrîtsiii;icIcrluriiig tlic Sccond \Vorlcl \\'ar-
tlic Coveriiiiicrit of the Uiiitccl Statcs orclered thc vcstii-ig of so~iic
go IJC~ccnt. of tlic sliat.cs of tlic Gcncral Aniline and Filni Curpo-
raticjti,;inciltcrlirisc cst;iblisliecl irz tlic United Statcs of Ariicric;~
(1icrein;tltcr callcd G.A.F.), bclongirig to thc Sociéfki~~lcv~ialt'unci/l:
purir +nulicifinlioits iiidrislvielles d ct?inrricrciciS.'4 . (1s,riirt~i -\h
i)r;i.)Tlic Anicricnn nutliorities justificd tliesc mcnsurcs ori thc
ci11cg:ttioritli;it tlic said sIi;lrcs wcrc iil fnct tlie propcrty of"1.G.
I;;irl~cnii~diistricof Frarikfiirt,or tliritthcy ivcre ownccl by or liclcl
for 1.(in 1:nrbcniiidiistric.nntl iticorjioratccl ;~t Baslc in coilforiiiity with Scviss laiv vil Ilic
iiiitiative ol I.G. I'nrbcilinduçtric of Frnnkfurt. Its original nanic
was "SciciCtC.ii-itcriinticrii-i;iIlciioiirciltrcpriscs chiiiiiques" (irz bricf,
"1.I;. Llicii~ic").Tlic objcctç of ttic coin1);itiy arc defiiicd iri Arti-
clc 2 (if thc Statutc (1940 vcrsioii) (hrincs I) :
"Di~s Untcri~cliiiicii ist cirlc Holdinggescllschüft. 1lir Z~vcc k
ist clie Dcteiliguiig ni1Tnduçtric- und Ha~iclclsunteri-ieli~~i~~iigcn
allcr Art, iiisbcçorirlere clcr C~ictnischcrîBrandie iti~In- uiid
Auslandc utitcr Aiissd~luss VOII 13nnkgesc~~iitteniriicl untct
Ausscliluçs dcs gcwerbsmlissigen Atl- und Verkaufs voii
IYcrtpapiercil. " *
At t'lietiiiie ol its Ioriiidatiuii tlic capit;il of Iizterliandcl was tiscrl
iit 20 riiiiiioti francs. ln 1929 it w;rs raised tn 290 n~iiiiorîs,tlicn
zintlci-ivr:iitscvcr;il rccliictioi~s.Tlic nicist iinportnnt nitiong Iiitct-
liniirlr.l';issc:ts isi tr;p;irticill;itioii iii(;.i'\.I:. At thc prcscizt tiriic
Iiitci-Ii;iticlclIiulcls 455,624 ~i thc 592,742 il sIi:ires i~iG.A.1:. ;iiiil
tlic wlicilc ul tlit: 2,050,o~io13 s1i;ircs issucd. 'l'lius, Intcrli;iiitlcl
coi~trols 90 to 95 lier cctit. of the isçuccl s1i:ires of tlic Arirericiiti
conccril. 111Jiine, 1940, lionlcïcr, Intcrlinndel's lirikç !vit11 1.G.
Farhcn wcre scvcrcd nid frorn that ~nornent Gcrman control ovcr
Intcrliandcl fii~allyccased.
3. 'flic Swiss Govcriiiîici-it 1i;is Iiccn asking for the relc;isc of
1iitcr1i;lndcl'sasçcts iii thc United States since 1948. 111 so doitig it
rclierl on tIic rcs~iltï 01 scvcral YCI-JP thorough inscstig:itions whicli
liacl ~~rovcdI^icj~ntid qucstioii tlint lritcrhandcl, a Swiss Company,
wns iieitlicr Gcriira11prolicrty Iior cnntrolled by C;ermnil nationals.
Iiip;iriiciil;ir, tlic Swiss (~ovcri-inicntcitctl in support of Its rcrlucst
the iirinnci;iIAccoi-rlcoticliiclcci iil\\r:~çliiiigtonon hI:ly zjtli, 1946,
bct\vccti Swiss reprcsciitntivcs and rcprcsciitntives of tlic Uilitcrl
St;itcs of Atiicricn, I7r:incc ancl tlic Unitcd liingdom, acting on
be1i;zll of their allics, hereintifter callcd the "Washington Accord"
(Annex 2).
(rr) Tlic objcct of the \\fasliiizgtoii Accord was tu providc a
soIution tci four esscntinl ~irrible~iis. 011 the one hand, it col-~iplicd
~vith t~vo Rllicd requcsts, rinrnely, for tlic investig;iticsn and liqui-
t1;itiriii of Gcrninn ;~sscts in Sn~itzcrl;ii~d,and for the scttleiiicilt
of wh;tt \v;is tlicii çnllcd tlic ~>rolilciiiof "loottcl" golcl. III rctzirn.
Ç\vitzcrl;incl obtaincd s;iliçfnction oii t\vo poiiits : tlic Allies agrcctl
to abolis11tlic "klncli listç" so far as thcy coriccriied Sc~itzcrlniid;
:incl, fiirtlierinore, tIic C;overntiicnt of tlic Unitcd Statcs agrcetl to
rc1c;~scSiviss asscts in tlic Unitcd Çtittcs ~vhicli rluiing tlic war
hacl hccii siibjcct to v;irious restrictive nicrisures. This East provisioii
.-- ..
* 7'rc~~~.~l~~-i'~'II~i~tcr!)ri>ib CIi~(,ld~~co!i~p;~iiylis ol~jc~15 p;~rtlc~pat!~)!~
III iii<liii(aiiilCIIIIIIII<'LCI.I~ 11110~rl01 csihr)LIII~,~s~~~çi,llin th[:CIIC~II~L~~
iicl<LIIIS\+~itxc~l;i;l11<1 ;~broil~IIL~~cluc11111g>:1nk1t1LIII~the pr~tcs~io11:~11r-
C~~ISLZIII L,lc(J[ scc~~riLic%zvns tlic subject of Article IV, parngrnph r, of the hvnshingtoii
Accoicl, ivliich sunç as follows:
"Llie Guverniiîci~t of tlic Liiiitcrl St:itcs \vil1 unblock Çwisc;
iisscts in tlie Unitccl Stn tes, Tlic i-~t:ccs~nry pruccclurc \\-il1Iic
clctcrii~iiicd withoitt clc1,iÿ."
(b) II-i S\ifitzcrlancl itscli, tlic Fedcral Authori tics Iiad not
:iitfnitcJ thc Waslriizgtoii Accnrcl beforc es;itiiiniiig tl~c case of
lntcrlirinclcl froin the vielilpoint of Sliriçr,Inw in regard to Gerriinii
prol>crty. ilsis knowi~,tlie Fcc1cr;ilCouncil dccided, by its I3ccrcc
of 1;cbriinry ~Gtli, 1945, tn 1d1:icc Gcrtri;in nçsets in S\vitzcrl;itirl
iindcr tlic ccintrol of the Siviss Cor-~ipeiisatioiiOifice, wliich is tlic
cj\vi';s1,ciclyrcspoiîsihlc for cscçi~lioiîof thc iibnve-mcntioned dccrtc.
111 \.ici1or tlic fiicttliiit 1iitctti;in~lclhnd bccn foiiritled, as iilcntiorictl
iillcivc,,oii tlic initiativc of 1.C;. l;:irl-ien, tlic Sivisç Compensatio~i
Otlicc ç,iiihcrt nn invcstig;iLioii to lx ii~aclc,froili Jutic 11t1i to
,july 7tli, 1945 iitci tlic positioti of tlie s;iid ccimpnny. Tiiis cticluiry
sli(i\tctl tliil, ;isfro~n .]iiiic, 1940, Intcrliririclcl Ii;iclscvcrccl al1 its
cciiiiicctiotis \\lit11I,G. li;ii-bc~i,tliiit the C;erii~ntidi;irc of tjic iiriii's
c;ipitiil \t1;l;Lsizi:illini~icii-iiys1i;ircnnrl tlint tlic I3onrcl tifIIircct~ir3
coii~istccl;iliiiust csclusivcly of Swiçs nntiolz:ils. 'TheSwiss Comlicii-
s:iliriiOlliçc tlrcw Irriiiitliis iizr.cst~gntion tlic logicnl coriclusioii t1i:~t
1iitcrli;iiidcl1v;ic;i Siviss com1i;iiigr~vliosc asscts \i.crc tliercforc iiiit
s~~l)ji>ctto t11v l~rm-isi (II?of tliC 1~~:ilcr:~C u1111ciI' skcrrc of I:CIJ~II-
:ir>?10th~I!jq.j.
I~i rrslionsc, liri\~,cvcr,io scvcrnl AIlicd rclireseiitntions, in pni-ticir-
1;irby tlic Iriiitctl St;itc3 Govci.iiiiictii, \vliieh clcclarcd tlint it Iiacl
fouiirl in C;criiinny ct~iciitiiciitsslioiviiig close links bctu-ecti 1.C;.
1;;irbcii :ind 1 Iterliiiiiclcl,tlie S~vissCot~ipensation Office dccic1~:rl
011 Octobcr :<rrth, 1945, ~irovisioiinlly tu blocli the propcrt?~ of
1iitcrli;itidel Ior tlic purposes of cnrryiizg out a frcsh and rrlorc
tliciruiiglr irivcstig:ition. 'l'lzislastcd froin Novcniber 5tIi, 1945, to
1;cliru;iry2stl1, 1 gqh, aiid iicitiitllyc»vercrl 1ntcrh:iridcl but cstcndccl
tr,1iriir.;rii(lirirEi~?itlii;il10 wprc iiiclircct or indirect re1;itionç~vitti
Iiitc,li;iiiclcl. I,il;c tlic cnrlicr cricluiry, tliis scconcl investigntiuii
cst;il>li';licrt1i:~t11itcrh;iri~lclw:is in iio Jcgrcc uttder Gcr~rrariin-
Iliiriicc. I1csl)iti: tliisclistc c;ttcgoric;il oiitconic, the Swiss CLIIII~CI~-
s;itioii ()liicc C~II~~IIIItC o~1I)Iock Iiitcrlt;iri~lel,taking iiitu ;icçoiiiit
tlii:hict t1i;it t l i:\llictl iiicriilici-of tlic Joirzt Cuminissioti, ~~~liicli
1i;ul iiic:iriwliilc bccii sct up undcr the Zttsliitigton Accord, 1i;icI
tlot 1)et:ri~villingto accept tlie findings of ttie secorid eiic1uiry.
111 tlii-SCcirci~iiist;iilccs, tlic Siviss Cniiipci~sntion Offcc Iiiitl iiii
clicricc Imt to suliiiiit: to tlic Swiss Aiithority of Rcvic~z.,n-liosc
tcriiis of rc[crciicc 1i;idIiccii COII~~FIIICL~by the Wasliingtoii Accorcl,
:tri;ip~>c.x1 lcidgr:dby Ititcrliatidcl apiinst tlic blocking of its asscts.
011l\luvciiibcr zritli, 1947, the 12rcsirlcntof tlic Swisv:iuthurity of
I<c\.itin.,$1. Gl~org I,ciicli, I~rcïiclciitoi the S\\.iss FcdernlTribuii:il, AI'I'1,ICATION INSTITUTING I'ROCEEDINCS (2X 57) 11
invitcd the Joint Comri~ission,uridcr Article III of the Annes to
tlieWashington Accord, to take part in the rcvicw and to conirnurzi-
cntc to hlm its fliidings, accompanicd by reasciizs,within one i~ionth.
ln a lctter of Deccrnbcr igth, 1947, the mrijority of the Joint
Conîiiiissioii declinccl that invitation, dcclariiig that the Cornii~issio~i
w;is itsclf invcstigiiting thc case of 1.G. Clieriiie (noiv 1ntcrh;litdel).
It;idcicc1tlint, .;tic~uktllic Sxviss~\utliorjtÿ of Kcvicw take a decision
hcfore the .Joint Loiiiinission lind coiiipleted its work, that rlccision
i~~oiilcliiavc rio effcct upoii its ciirrent investigations.
The Sirius Authority of Review, hoivever, fclt unable to deliiy
its corisidcrntion of tlic case, since it could hardly continue to
ii~aintain ;i blocking whicli ltad bccn imposcd as a tcii-iporary
measurc, whilc tlic tlilliccl C~overiinients had liad niore tlirin tivo
yenrs in ivliicli to furriisli pruof of thcir allcgations. Tlic Author~ty
r)fI<cvicw tlierefore decirled on Jaiiunry 5tii, zgqS, to unbltick
liltcrlii~~~d~tlvith retru:lctivecffcct (Annex 3).
III criniorriîity witli the provisioils of tlic \.1'adiingtoii rlccurd,
tlic Swiss Autliorit y of IZcvicw coinniuiiicntcd its dccisiori to tlic
.l?irit Commissiori, but tlie Allicd C;ovcrninents made no use of the
right givcii thcm Sÿ Articlc III of tlic Annes lo the Mrasliingtcin
Accord to subinit tlic disputc to ilic nrbitrnl tributln1 providcd for
iitliut ilccortl. In tliosc circuriistaiicctlicdcciçion of the Autliority
of Iievicw confirining tlie non-Gcrmari cliaracter of Interizandcl
1icc;iriicres j1rriicaIrand could tlierefore bc irivoked agairist al1
St;itcs prirtics tu tlie Accorcl.
4. Ilcspile the forcgriing, tlie An~erican autliorities categorically
refused tu coiiiply witli thc Swiss rcqucçts for the rclcasc of tlic
G.A.F. sliarcs in tlic Unitcd Çtatcç. Notes cschanged on the niattcr
Irctivcen tlictwo Goverii~i~ei~tsshowcd diametrically opposed ~*lei~~s.
(Sec coiiiiiiuniclitio~is oi A4:iy4tE1,Jury 26th. September 7th arid
Octobcr latli, 1948, Anneses 4, j, 6 and 7.)
S~itzcrl:ind coiitiniicrl fir-iiito m:iint;iin the Suriss ch;ir;ictcr
of I~ltcrli:~iirlcl,:iiid consccluciitly tlet~~nndcdthrit, in accord;iiicc
\\.i~lgcizcral intcr~i;itiorinl 1;iw iirid riiorc especially in 1-iursu;iiicc
of Articlc IV (iftlic \V;ishii~gtcitiAccord, tlie assets of thecornpiany
in tlie liiiitcd Stiitcs slioiild be rc1e;iseti as property belonging tu
1i;~tiuii:ilsoi a iicutral country. It addcd that the Uriited States
Goverrimeiit could not qucstioii Interharidel's Swiss charactcr
;ifter tlic invcstigationl; anfindingsbot11 of the SwiçsCompcnsatiori
(7llice;iritof tlic Autlrririty sif I<ciriciv,;igainçtwhicIi thc Uriitcd
Cjtatcs:I;ovcrririiciit liacl not appcalcd, riltliough it had the riglit
i tci do SC)'l'hc Americ;iti Governmcrzt, for its part, denied that tlic
Wasliirîgtori Accord wnl; np~-ilicnbleto tlie nsscts of Interhaiidcl
otitsiclc S~r.itzcrl;ind. 5. \Yhcn it l~iirl bccoiiic convii-iccd that thc Uiiited St;itcs
;i~itlroritics nould rlot biirlgr: in thcir rcfusal to rclcnsc tIic I;.:l.I;.
stl~ircs, tlic SirrissGo~~cri~iiicii~ t>rriliciscdto tlic Govcrnnicilt (if tlic
Ui~itctl5t.ttc.i tçi ciltcr iiilo 11cgriti;itiunswitti it in cirdcr to scck ;i
II-icn(lIyscttlciiicii t nf t licrlisliiitc.It relicntcd t1i:it rcqiicst sci.r:siil
tiiiics (sec nritcs or .\liril gtli, 1953, 1)ccciliber ~st, "54, ;lut1
&!;~r~h~st, Ig-jj, ;\tincscs S. g ancl IO).
111 ~O~CS of rcpl~ diitcd nl;ly 27111, IrJ.i3# ;iiicl lune 7th. 19.55
(Aiir~cscs rr ;i~d ~2), tlic.Uriftccl St;~tcs C;ovcri~i~icnt rejectcd tlic
5n.ihs prri[ios;il, htntiiig tI~:it,iri i ts viciv, tlic Iritcrhandcl ç:isc 1;iy
i:sclusi~;cIv iiitliiii tlic ,itlniiiiistriitivc 1111~1jiicliciriljiirisclictioricif
tlic I'n~tctlSt;ites niirl Ili;{tit \\-astllercfore riosiibjcct ior Jiploi-i~:itic
iic&citi;iliciii>1.S ;itId~bctll~rit tlic ?Iri~cric;triIjcprirtrilen t of -ustici:
\\;IS, II~JIV~~V(~ :-,I-~~~KI~CLtI ~>r ii~tt) privatc cc>~~t:ic1 tvit11LIIL:
;igoiiis or ilic S~visq 1);iriibs~~~i~~~~ri~~:~l .t \r:isJ li~iiv~~cr,pui1itt:cI
oiiL ti11 1lic !l~iii~ric:i~siitlc ~tr;1igIitw;1y~fiat atiy COIIIIN-OII~~SC ~vliicll
\tvo~i1<1 iicj;~-;iiltto ilit;:\~i~rric,iiiOIlicc of Aiic~i['ro]~:~-Lty lic l:irgVr
41~ir1: of tiic ;~s~bfh iri IIII~~S~~O~I\\oi~ltl lx, ~t)iisi<\rrc~"l~~~irt;;~listic".
Si~cli .i co~irlitiiiii ciriilti oliz,iciii~l.iiot lii::iccclrtccl11).tlic Siviss
(;ri\libr~lillt'~it.
L'roiiitliis ;ittitilclc ciitlic ;lnicric;iii ;ititlroritics, tlic S\viss1;cclcral
C'oii~icilcould ai il!^ct~r~cliirlctlint tlic dispute wnç ii~c;ip;iblc of
st~ttlctiicnt ;it tlic rlililo~ririticlc\.cl.
1t \i.,is for tlicst: rc;isoils tlint tltc Siviss I;rivcrirnierit deciclcd tri
~~-opostc trillic Unil ctl States C;overiiiiicrit in its ilote of rtugust gtli.
I gjG(s\riilcs 115)rccuilrsc to ;irbitr;iticrn circo1ici1i:ition.
Tlic Ijivisc;Co.r.criiiiit:titrclicd iiitlic iird llliicc UII tlie Trcaty of
Ar11itr;itiriii;inrlCoiicili,iticirirlntcd 1:cbru;iry rhtli, 1931 (.4nncs 14),
!\rticlc r of ivliicli provfrlcs:
" 13vcry rlisjiilte ;irisitig bct~vccii the Contrtiçtirîg Piirtics,
oi ~vlii~t~i~c I;L~LI~~Cii ~TI:L~~x:, sli;iIl, 1v11cii)rclii~:iryclip101i1;ttic
~n'ocw(liiigs li:~vc f;iilpd, bc s~ibniittctl to :irbitrntioil rir to
co~rcili:itio~i, ;is tlic Cuiitr;tctiiig 1"nrtics riiay rit thc tirne
tleciclc."
Shc iiiit1crt;iking tu hnvc rccciilrsc to arl~itrcttioi~ isri.gericral u1iC
îrir ;irly difrcrc~icc coricc.riiiiig :i cl~iirriof a juridicill nature; .-lrti-
clc \i ~>i-uvi(lcs:
"Tlic Gin tr,içti iig I'~irtir5 biiid tlicilisclves tu subniit tu
;irliiti-;~tiuiicvcry cliifercnce wl~icli 11i;iyIrn~c nriseri or iz1n!;
;iri~t: Iict\vecii ilic~ii by virtiic ol n claiiii of riglit, whicli is
jliridical iti ils ii;itiirc, p~o~iclccltliat it lias not becn possible
to :itljiist suc11di1Tr:rciicchy clipI»ni:icy ;iiicl it hnç iiot iii klct
IWI'E ;lI~ljuslrtlas :i i-rsiiltof rcfcrencc .to the Per~~znricntCo~n-
iiiishioiiril (;uricili;itiorrctriisltiitccl liizrsiinnt to ;\rticlcs 1 l ,tricl
1I1uf tliis Trc;itj-." 'rlic 1931 Trcaty of Arbitratiori :~iicConciliation furtlicr proviclcs
for critzci1i;itioriprricccclings,~vhicli:is n rulc rlo not nced to prcccrlc
arbitr;~tiu~i,biit ivhicli iii:iy bc oblig;itury wlicri thc P~irtics clo iiul
in 5;ict tr:sort tu nrlrftr;itiun. Article II provides:
"hriy rlisputc wliicli Ilns ~iot 13~~11scttled by diplonincy niid
in rcgnrtl to ~vliiclitFicCnlitraciitig Parties do iiot in frict1i:tvc
rccoursc to nrljudic;~tiiii~by ;in arbitral tribunal, sl~alltic siib-
izittcd for invilstigation :~iirlrc~~ortio ü Pcrr~înncnt Corniiiis-;iorî
of CoiiciIi:itio11 coiistitiitctl in tlic rnnl-iricr Iiereinriftcr prc-
scribcd."
"Ili c;isc tlifIcrcticcs ol opiniciii ririsc with regird to tlic
:ipl)licnticiii... of illis rlcctii-tl \r-liiclicriiinot bc scttlril iii ;iiiy
citlier way, rccilrrrsesliiill be linri lu nvliii~citiuir."
~I'liisprcivisiriti,cciiiiisignt thc c11dof tF~c \Vashingtoii Accord, is
;L ~CIIC'~p~ rLvIision co~.t:ri~lg;il1di5l)ut~s \vliicIi 111ay IL~~SC in criii-
tlcctioii ~vitli ,21151 C~;LUSC:in that Accord. It csorlccrrisiiot oiiJ17thc
cilii~atioiis nssii~ncrl b!. tlic SI\-iss Govcriinieii t, but also uildcr-
t:ikiilgç givcri to tli;it C;o\~csiii-iienb ty t11cAlricd Govcrnmcn ts, and,
iii p;wticiilar, Article IV (r), ~vhich:ift'cctso~ily rclatioi~s bct ivceri
C;\vitxcrl;i~ic iiid ilie Uiiitcd States.
-1'lic5\s3.G '3ov4~~~ri~i)t*iftirtl1~1-rqir~s~cd iis cc)livictio~ith:it, il1
\-ittiii: oftlic 111-i1icili1oi:siiitcrii:itivii;llarv, tlic C;ovcrnnicrit uf th$:
Uiiilcd States iiloiilclabstniii from taking ariy iiriilatcral nicasiirc iri
rcsl)c:ct nf tlic prol~erty iii dispute ]-icnding ititcrnatiorial Iiro-
cccclirigs, tli[itic;to say, tliat it woulclin fact stay for the tir~icbeiilg
tlie s:ilr:of (;.A.l:. s1i;trcçwliicli it hacl announced.
111its rclily of Ja1iii;it.y r. ItEi, 1957(Arirics 15) thc Unitccl St;itcc;
C;uvcriiiiicrit rcjcctcd tlic Ç\viss rccluest to submit thc dispritc tci
;irhitrritio11.Simil;~rly, tIic riotc ci£ thc LTnitcdStates Goverrirririit
ol>l~)scdtlic npciiiiig rifcciiiciliiitiutîlirocccriirigs, wliicli, in its x'iciv,
coiiltl Icad to rio pusiti\.i: rcs~ilt, tlic lcss so beçausc it Iiad ali-cbarly
iii:~tlcknu\vii its i~xiljilty io sub~nit thc disyiutc to subsequciit nrlii-
tratioi~. Iii ~irlditiuii, thc LitiitctI Statcs Govcriii~icnt rcfusctl to
p~-o~niscto rcspcct tlic slrilits qilo ~)cridiiig 3 settleincizt of tlic
clll"~tl0ll.
'L-hii.i,tlic Sir-iss G«\.crni~ic~ztcxliairsted al1 the merins ;it its
rli\l)owl kifluittirig ;iticiicl tiy clililcxii~acto the diçputc \rliiïEi liarl
ariscii hctrvccli itsr:1f aiitl the Go\:ci-nn~ciit of tlie Uiiitctl St,itcks
corict:r~iiiritt;lic rclc;ihtboi Intcrhaiidi~l asscts in tlie Unitcd St:itcs. I. r\ccordingIy, thc Siviss Gui-crtimcrit, Iriciilguriablc to rccngnize
tlic çorrcctiicss of the r\rricric:in ILI~~UIIICI~~S,inforn~cd tlic Lovcr~i-
i~zcrit of tlic Uilitccl States, irr a riotc of Octohcr ~st, ryj7, t:lint it
fclt cibligcd to tiiringthe tlisliutc I~cfrirctlic. Internatiorial Court of
Justicc (Aiirics 16). '
2. Tlic IJartics tu tlic dispiitc ccinccrriiiig 1iitcrli:indel-Sivitxc'r-
1;iritl;tiirltlic Unitccl St:itcs-ii:i\-c acllicrccltu Articlc jh, pnr:igr;ipIi 2,
rif tlic 5t;itiite cil tlic Iiitïrii;itici~i;d Cijiirt of Jiihticc ;iiitlrccng~iiz~:
LI? c~)~iil~iil~~ir h~~ ji~ris(Ii~tio~Y ~~.s( (IL-/O ancl \vitli(~utSI>CCIX ;igIrctb-
tiiciit iii ;il1Icg;il tliçpiilcs coiicci-iii~ig, iiitcr cilin, ilie it,-crprctatiu~i
ci€ a ti-crity ;iiitl :itiy cl~irbstionof intcrnntional ]an'. 111cclic;liiitc
conccrning liit~~i-li;i~~c sl;(tiçlics110thtlicsc conditions ;its scltlc~iictit
i~r\-ril\,cistcr~-irct;itiniioftlic \\:;isIiiriglt~~z Accurcl ni-iclni1esnii1in:~-
ticiil of rlricstioriç of iiitcrn;itionril I;i\r-.
5w1tïcrl;~ntltlcl,cisitc~tliis l>cclnrntioti acccpting tlic coizzpiilsor!:
jiirisclictiurr (if tlic C:oiirt iiticli~ Articlc 36, parnr;i-apli 2, tif tlic
5tniiitc oii J uly ~Stli, ICI#, wi tlio~~t :111!-liniitatioll of ti~ne aricl
011 tlic solc crincliticirzof reci~~rocity.
'I'licUtiiti:d Stntcs of Ainci-icnrilctltlicir I)eclarntioil of acccptrii~cr~
irii:Iti,giist zhtli, r3-16,for :i p~riod (3f (~VC yV;trs, ivitli ;Lt;icit rcrleii;~l
c1;iiiscirliicli is still in ol,cr:itioiz.
111 tlicsc cir-ctiriistaiiccs. tlic 5iviss Fct-lent1Goi;crlzrnent iiotcs
t1i;il tlic I>i.clar:i tions cif tlic t\io Stritt:~ rcccigiiizing compiilscir~.
jiii-ibtliction :ire in t!çrcc1i1~11itipon tltc coiii~,ctcnccof tlic Coiri-licir
tlic i~irlmsixcifscttliiiç dispiitcs r(5l;ititigto thc iiitcrprctrttion of tlic
\\':isliirigtuii Accorcl a~icl of cliicçtiorisof i1itcrri:~tional law rclc\-;iril
to tliis rlir;li~itc.I-Iciicc it follo\\.s tli,ii tlic Coiirt iç conilictc~it to
:itljiitlrc;itc ori tlic subnifssions fortiiiil;itecl li!; t2ic S\iiss Fcclei-al
C;ri\,i:r~iinciitiri thc lircsent .2i-iplicntion.
tf :~'i~igrt:gnKI to tlic loi-cgciingcrinsirlemtiurîs
\Vlicrcas tlic rlisputc \vllich li;is nrisen hctwccii tlic S~vissLonfcdc-
ratioti aiirl tlic Uriitcrl 5t:iti:ç rif:lmerica nit11 rcgrirclto tliia1-chtitii-
tioii ul Ille ashcls oI 1iiici-li:iritlcl,a Swiss coinliriily, i-~iiscscl~~cstiotis
of iiitct-rîntroiial l:iw, incliirling t1i;it nf tl~c interprctntiori of tlic
\Y:ldiiiigtti~iAcçcj1-to lf Aln! ~,jtli, rqdTi;
Mllicrc;iç t lie Swiss Crii~fctli:rnliiiii ;~iitl tlic Unitcd Sintcs of
~\ri~criçnliai-c ;idhr:rcrl to !\rticlc 36, ~iarngraph 2, tif tlzc Çtntiiti: [if
tliv liittbrii:~tio~~:\(i-ourt of .j~isticc: :111t! r(:cngnixc its c[ni~i]~iiI~~)i-!-jurisclictioii ipso fncla ai~d ivitliciut spccinl agrccri~cnt:iri nEi1cg;ll
rlisputes conccriiii-igtl~ciiitcrprct~ition of n trcat?; ai~da1-i~q ~ucsttirirz
cif intcrnntional 1:iw;
~1flicst:;istlic Govcrnincnt of thc Uniicd 5tntcç of .L\nicricri
clvclincd thc proposal of tlic 5wiss Fcclcral Govcrnmcrit to siibriiit
tllc prcscnt disputc to ;irbitratir)ii or çonciiiation in nccordnncc ~vitli
the 'Srcaty of Arliitrntioii niitl Coi~cilintiorm of:1;cbruary ~Gtli, IQ:<J,
11cti\.ccriSivitzcrlnnrl and ilic Unitcc1 Statcs of :imcricn, ;\rliclcu 1,
II ;liitL'uf idiiçli 111-civitl oi- r-cco~irscto arbitrntiurz or cancilintiori
iiiany rlisputc lihich it lins i~otbccn lirissiblc tri scttlc by diplo~i~ntic:
iiiciiizs, and also iii accorr1;iiiçc iimitlltlic \ITasliiiigtoii :\c(:cisrl,
!Irticlc VI of whicli lil;civisciprovidcç for reconrsc to nrl~itrntiiiii
if tliflcrciiccs of opinion slio~ilclnrisc \vit11rcgatd to tlic npplic:itin~i
or intcryirctntirin of iliat ,~lccortl;
\Yhcrcas it lias not bccri possiblc to scttlc flic disliutc by diplo-
11i;iticnieaiis;
i\cctii-rliiiglÿ, :~iiclslilijccttri tlic sub.;crlucnt prcscntntion to tlic
C:oiii-i,iii;iccor<l;iiicr:mit11hrticlc 43 of its Stntiitc, of ;i Mciiiciri;il,
Cuut~ti~i--~lc~~~c~ :i:1{l1i,n gc~icr:iluf aily 1cg:tl:irg~~~iic~ ;~t
'l'acornniuiîicate thc prcsciit Applicntiail iilstituting proceeclii~gs
to tlie Govcrriri~cnt of thc ljnitpcl Statcs oi !Imcrica, in accord;iricc
\vitIl i\rticlc 40, p;ir;igrapli z, aftlie Statutc of tkc Court:
Lo ndjurlgc ailcl clcclare, ~rhctlicr tlic Ciovcri~ment of thc Uiiilcrl
St:itcs cilrl~neric:~npl-icarsor ilot, aiter considci-iilg thc co~ltciltiriiis
ul tllc l',irkics,
1. tlint tlie Gnvcri~nici~tol tllc Unitccl States of Art~cricniç ui~cler
;[riob1ig;ition tri rcstorc the nssciç of the Socididiiiteutinlioirrrlc
+nitr finrricipntioiis iiidirslricllcs cl coirinicvcinle.~ S.cl. (Inter-
linnrlcl) tu tli;it coiiilxiny ;
2. iii tlic nltcrn;iLivc, tliat thc disputc is aile which is fit frir
siilirnissioii for juclici,il scttlciiici~t, nrliitrxtion or concili;itioii
iiiidr*zt-lic ctiii(iiiii\~liicliil:\vil1Iicfut-tlic Cniii-t tu tlrii~riiiiric:.
'1'11 1w,iss Fcdcr:il Coi~iicilIiirtlicr rcscrilcs tlic riglit to ~;iil)lrlr:-
liiiLiitiiiittli iiioclily its siibinissloiis.
'I'lic iinclcrsignccl is ;iplioiiitccl by tlie Sij.iss Fcdcral Coiincil :is
its tlgcnt for tlic pnrpoçcs of tl~cprcscnt proccedings nncl Profcssor
I';iul Giiggctilicini is nppoiiitcrl risliis Co-Agen t. Hc is nuthori~cd
hi iniririii tlic Coiirt tli;~t for thc purpose of al1 notificatioiis nrid
crimniii1iicatic~11 tis) hc i11;icIiiitlicsc ~irocccclirigs, tlic Swiss I'cderal
(;ouiiçil sclccts as its actrlrcss for servicc tlic L;\vihs I<~ill~ishy ;il
Thc 1-1;igiic.1, thc iiildcrsigrictl, S\viss i\inlinss;~clor to thc Ncthcrliirids,
ccrtify tlic :iirtlic~iticitof thc ;il>oircsignature of Professor
G corgcs S:iiiscr-H ;III,.\gciit of tlic Fcdcnil Curiiicil.
IYL.S.] STAT W'I'EN
dcr
Iiitcrnationtilc C;cscllscliait für
CliciiiiscliUn tcrrichtnungcn
-4.-G.
i11
13.413151,
Ilic G~~~cllscli:itt cinc AkticngcscllsciiriftililSiriirc des Scli\i.ei-
zcrisclicii Obligriticinenrcclites. Sfiltitdic Firriia
Iiitcrrintiuii;ilc Gcscllsclinit fiir Clicniischc Unternchrnuiigcn A.-G .
(I.G.Cliemie)
SociCtdIiitcrnr~tionalc potIr Eritreprisec, Cliimiqucs S. -4.
(1.C;Clicmic)
3 2.
IAis Uiitcri~chiiicii ist eine ~JoIditigçgcscllE slir~~~~cIckist
clic 13r:tciligung an Indiistric- uiicl Hnridelsuntcriichii~1~11ge11llcr
Art, iiisl~csoriclcrcdcr Cherîiischcn Urnriclle i111III- und Aus1;iridc
uiltcr Aiisscliluss voii Bankgcscli5ltcn uncl unter Auçschliiss des
gci~~erbsiii:issigeA~n- und Zicrliaufs von \Irertpapiercn.
_....................*..
[~'Y(I(/IICL~~)I,I
t;'y./\'l-u'L'S
de I;L
SociCtkIiitcrnatiuriale pour Eilt scpriscs
Cliiri~irlucS. si.
ii
]<ALE
1. I<;iisniî-oci;ilcsi;,gc,biit ct rliircticla sociCiC, La sociétéest une sociétéailonyIne, au sens du Codc s~iisscclcs
obligations. Elle porte la raison sociale suivante
Lnteriiationalc Gescllscliaft Iiiz Chemisclie Uiiterneliniungcii A.-G.
(L.G.Chcmie)
Soci6té Iiiternationale pour Entreprises Cl-iimiclucçS. A.
(1G . Clicr-e}i
et a son siège à Bàle.
L'entreprise coristitue uiie sociét6 holding. Elle ;Lpour Isiit la
participation aux entreprises industrielles et cornn~crciales de toiitc
nature, en particulier dans le donlaine chimique, en Suisse ct à
l'étranger, A l'exclusion des affaires bancaires ainsi cluc dc 1';~chnt
ct de la verztc profcsçionnclle des ~iapicrs-valcurc;.
Messieurs,
Au cours des négociations qui vieiiileiit de sc ter~i~iiicr,lcEioii-
verncmen ts alliks, recoilnaisçan t pleinerncnt la souverailictfi s~iissc,
ont fait valoir leurs droits aux biens allemands eii Suisse, sefot~d;iizt
sur la capitulation de l'Allemagne ct l'escrcice par cus de l'ntitoritb
suprcme dans ce pays; d'autrc part, ils aiit dcmaiidk In rcstitutioi-i
d'or qu'ils disent avoir ét.6priç contre tout droit par l'Al1cm;igric
aux pays occupbs,pendant la guerre, et trançf6rC par cllc c tiSuisse.
Le Gouvcrnetr~ent suisse a dCcl;iré nc pouvriir rcconnaîtrc dc
fondement juridique k ccs prttentions, niais Ctrc tlEsircux cle
contribuer pour sa part A la paciricatian ct à 1iireconstruction tlc
l'Europe, y compris le ravitaillement des çontrkcs JévastEcs.
Dans ces circonstances, nous sommes p:irvcnils :L I'lilcccitrlci-
aprks :
I
I. L'Office suisse dc compensation poursuivra et complCtcrn lcs
recherches concernant Ics biens de toute nature en Suisçc, ;qipar-
tenant à ou contrhlks par des Allemrrnùs en Allcmngnc et Ics 2. Les Allannnrls attcints par cettc n-ieçure seront indeinriisés
cil niorin;lie allemande, A un cours fisc ;ipplicable dans tous les
cas, cn contrepartie dc leurs bicns 1iqtiiclCs en Suissc.
:j.J,n Çiiissc fournira, sur les foilclsr:53 clisliosition en Allcrn;igile,
1;~nioiti& des soiiiiiicsen ii1o1iiz:inllc~tiniide116ccssaircsà cet cffct.
4. L'Oflicc suissc cic coriipcilsntiçrii csCcutcra les taclles qui lui
soiit confi&escn 6troit con tnc t avec une Commission rilistc au sein
rle I;ic~iicllechnciin clcs trois Goiivcnicizicnts aIIiCsaura iin sepr6-
sciitarit ct durit fcrri.partic Cg;ilciiiciit111rcprisentant du Gouver-
ncnîciit siiiççc. Elle pourra, tçi~it comilie lcs personnes privccs
ii~tFressCes,rcco~irircontre lcç rlCcisiuns rlc1'Oficedc corrtpcils ct1011.
5. Lc ~;ou~crncmciit.cs tuissc prcndr;i A sa chnrgc Icç frais d';id-
111iiiiçtr;itiriiict rlc:1icluid:ztionclcs biciis nl1cril;irids.
1. $11,lc l-irotliiit tl1;i1icluicl;itionclcr;bicns situes cn Çuissc ct
;il)l);~rtci~;int dcs 1\1Iciri:indsCIIAllcningnc, unc part cle 50% scrn
botiiiii.~:l la Suisse et uilc part Cgalcscsa niisc à la disposition dcç
r\llibs cn vile dc la rt.coiistriiction clcs pays alliés dévnçtL ou
nlq~;tuvrispar la guerre etlc r:ivitnillcincntdes populations rtffaniées.
2. Le E;ouvcrncmcnt suissc s'cngagc 3 111ettre;i la dispositioii
dcs trois Gouvcriicn~cnts ;illiésun riioiztarit de zjo millions de francs
suisscs, jiaynlilc 5 vuc cil or ri New York. Lcs Gouvcrnenierits
~illik, de lcur cutd, rlCc1;lrcnt qu'en acceptarit ce rnoiltiint 11s
rci~onccnt, Iioilr eus-ilii.riics ct pour leurs Uniiques d'érnissio~i, i
toiitcs rcvendicationç contrc Ic Gouvcrnernent suissc ou la Earîquc
~intioi.i:ilesuissc relatives 2 l'or :icquis par la S~iissede l'AIleri~iigne
pciidnrit la giierrc. Toiitc cluestiot~ relativc A cet or be trouve
nirisi rCglCe.
III
],ci; iiiutl;ilitCs d'nlilil1c;itirin rlcs cliçl~ositions (lui pr<ci:rlriit
lixiii-v~i;i l'Ari~icsc.
IV
1. !.c Gouvcriicnicnt rlcs Etnts-~riis dCblocluerales avoirs suisscs
aux 1i:t;its-Unis. La proci'durc riCcessairc scrn fiske sans dF1;ri.
2. Lcs Allies supprimeront sails ddni les 11listes noires iipour
nut;irit rlu'ellcs conccrticrit lri.Suisse.
1.c r~:~-~rksc~~ts aiutssigiiC clil Gouvcriiement suissc déclare nzir
cI.g:ilcnieiiail rio1î-de IliPriiMpriutC dc Licctiteiistcir~. Remarqzces: La lcttre cilvoyEe par les dblégntions alliCes I In cl6IC-
gation suisse cst d'unc tcncur identique, satif cn cc qui coriccriic Ic
paragraphe V qui, daiîs la lettre des Allies, cst rEcligC clc In f:iyoi~
suivante :
Les rcpriseiitants soussigrii.~ clcs C;ouverricmci~is {les ]i tilts-üiii.;
d'Arnkriclilc, clc 13 Eralicect du Hoyaiirnc-Urii[le Gri~iitlc-1Crnt:igr cic
d'Irlande dtiNord d6clarctit qu'c~i ce qiii coriccrilclcs clis~iasitioisliti
prccèdcnt ils agisseilt ég;ilemcnt.pour Ic com~itc clcs C~oiivcriirriii:iitç
des pays çtiivanls: All>ariic,Aiistiallc, Uclgirluc, C:in:irl;i,D,~~iciii:irk,
Egypte, GrBcc, Iiidc, I,iixctnl>ourg,Nol-vegc, NuiivclIc-%cl;itirlç.1';ii-s-
Bas, Tclii.coslovaquic, Uiiioii dc l'Afrique du Sud, \'uiigusJ;ivii~cl,
nutalit qiic de bcsoiil, jioiirIc cornplc clc ItaiirIiiiiirliicl'CIiissioii.
S'il devait s'éleverdes divcrgenccs d'upiiiion au siijct rlc l'iiplili-
cation ou dc l'interprétationdu prbsent nccnrcl ct si ccç divci-gciiccs
ne pouvaienl cire rksolucs autrcinent, il c;cr;iitElli t;iplicI:i 1':irlr:icc.
Lc prdsent Accord et son Annexe ciitrcrcint en vigiicur dCsclu'ils
auront été approuvés par le Parletnerit suisçc.
Le prPsent Accord ct son Anncxe sont etablis cil tcstc :irigl.iis
et français, les deux textcç faisant Cg;ilcment foi.
Vcuillcz agrécr, Mcssicurs, I'rissur:iilccde ina Iiniitccunsirl6r;itic~ii.
Aux Chefs des Dili.gatioiis nlliCcs,
WASHINGTON I,). C. (Sig)i~~,SI.UC~<I.
A. - Lcs biens situésen Suisse et appartcnalit àdcs Al1cni;itzds cii
Allemagne, définis sous IV ci-dessous ct clCsignésci-nprEs riIriicns,
allemarids N, scront liquidéscornine il suit:
a. Les dibiteurs en Suiçse d'illlcmands cn Allemngric scront
tenus de verser lc montant de leur dette riuil con~liteoirvert
auprès de la Banque nationale çuissc, au iloilide l'Ollicc clc
compensation. Ce versenient aura cffet libkratojrc.
b. Toutes les personiles, physiques ct morales, en Suisse, qui,
de quelque rnanikre que ce soit, administrent un bicri :illciii;ind
seront tenues dc le rcrnettre, avec cffct libératoire ?L 1';g;ird de
l'ayant-droit, AI'OKlccde corizliensatioii. Cct Ofl -ce licliiidcrii c. 'ruiitcs lcs participatioils;1des eirtrcl-iriscet autres orgnnisincs
suisscs, nli~);irtci~ant:i clcs r-lllctîi:irîds eAllemagne, serurit
liriscsciicliargc ct litluidccs par I'Ofticeciecompensatioil. Lc pro-
! [luit dc cettc litluidntiori scra \;ers6 a~icompte n~entiorini:soriça,
rl. 11 sera prucEdC ~'LIIIC liinniiirc :i~inlogiiccii ce (lui crinccrIit:
tous autrcs biens nllcriinncls.
e. Ln Coinmission rniste csnriiirlcrn avec bietiveillnricc tous lCs
c:is, ~jiiilui scrotit scjumis 1i;Lr1'08icc clc co~il~iensatioii, dc
I~icnsrl'iirigiticsuisssc Irtiiiv:iilt cii Suisct:qui npp:irtictiilcnt
i dcs Icniriics clc n;lisbaiicc suissc inariéesi des Allcmrincls ct
rbsidarit ci1 Allerîiagr~c.
E. - 1,'OfiicecEe cor-ril-iciisritiorsl'crîrircavec l'nssistaiicc dc
la Lumiiiissiosi nîistc, de dEceler ct d'nssurer l'annulation de toutcs
in;iIitcuvrcs, tcllcs cliie priscç clc g;igc, privil@ges,hypotliEqucs ou
:IItiCS tlcrintiirc:icouvrir fraiiiliilciiscincritdes bicns nllcmands.
C. - 1,'OHiccdv coiiipeiisrition Icr;~coriiiaitrc ii In Çoni~i~issivrz
mislc, pour tr;irisriiis~ic:ltrsniitciritCscotiipCtcrltcs cn AlIcrn:igiic,
Ic rilriiit,i~itrlc Iri 1icliiirl:clcoLiiciihn1lctii:iiztlscl;ins cliuqiic cils
~xirticiilictavec indiaititiri du iium ct de l'adrcsçc du titulriirc di1
(lirit.I.cs ;itituritEscciinliCiciitcscii A1lcrn;igricprendront lcs niesurcs
11t:ccss;iircsliuiir enrcgihtrr~r Ic titre cleç intéressésallemands ;tus
bicns IiqiiirlEs i reccvoir Iri contrepartie dc ccus-ci, en nionrinie
;illciiiniiclc, c:ilcul:L un l;itis dc change uniforme. Un iiiontant
E~;il 2 1.3ritriitiéclu total clcs iilclcmnitkç revenant aus intFrcçst~s
;rllcni;i~idssera dkbité tlu crFdit csistntit au coniptc du Goiiverric-
riicritsiiissc à la rcFlcri-ccEinu~~gsk:isç ciL Bcrliri. Rien dans cct
;irr;iii;=ciiicritnc poiirrn Ctrc iilvoclue, à l'avenir, pl'une ou l'autre
1x11i-itiiipré5cii t rlccortl coiiiinc u~i ~irbcLclentl-iour le ri.glciiiciîf
dcs crC,iiiccssuisscs siir I';tllcm:~giie,ct il iic pourra Ctre nll6guCqiie
Ics C;ozivcrncliiciitçn1lii.sont recoillziipar 15niictin droit i la Slii~x
:Lclispu.;erdii crbdit ci-clcssiismentionné.
A. - L'Ollicc dc coiii~'ictis:itiolcra c1i;irgbclcrcchcrclicr, prcndrc
]~o.;~c~ico it licluidcr lcs bicils allemaiicls.
13.- 1.c C;ciiii-crriciiit suissc ;~sçiirci-l'applicati.n di1 pr6sciit
:Iccortl c.tico1I;iliornticiii;i\-ccIcs Gouvcrnci~~entsdcs Etats-Unis, cIc
111Fr:iiicc ct du I<oyiit~iiic-ljnA. ccs fins il,sera conçtitui. uiic Coiii-
iiiissioi~iiistc, si6gc:iiltà I3criic tiiià Zurich, et coniposEe çl'iiii
rcpré~ont;iiit clc cliriciin dcs cltintrc Gouvcsncments. Cette Corii-
iiiissiciii, doiit Ics foiictiotis suilt inclic1nési-;iprGs,statucra i 1;i
ri1:ijoritCrlcs vtiis.
C. - 1,'OfIicctlc coiiipc~~s:~tioiit 111Coi~~niissioiml istc eritrcroiit
cri Ioiit-tiiiiis ;tiic;sit8t tliic 11055iblcn~-ir~sI'cntrfe cn viguciir de
l1:\ccurtl. D. - L'Office de compensation cxercera ses fonctions cn cci1i;i-
boration avec la Commission mixte. Il tiendra celle-ci nu courant
de son activité p&riodiquement ; il répondra aux clricstiur~squi lui
seront posées par In Commission, relatives ati but coiiirliiln,3
savoir la recherche, le rccençernent et la licluiclatioii rlcs bicns
allemands. L'Office ne prcnclra aucurîc dCcision i111port:int.cç;ins
conçultcr préalabicrnent la Cornrnissiorzmis te. L'Officedc conipen-
sation et la Corrimissiori i-ilixtc rî~cttront r'llcur clisliositiuii rdci-
proque toutes iilforrilations et tous documei~ts 1)roprcs A f;icilitcr
l'accomplissement dc lcurs taches.
E. - L'Officc de compensation coiitinuer;i, coinme par le pnssd,
A procédcr i toutes erlrluetes utilcseiice (lui cuiiccrnc 1:isitu;ition
ct le statut dc bici-is qiic l'Office niirn dcç raisons de coiisitldrcr
comnie bicns nllcmrincls,ou qui lui scroiit signalCs co~iiiiictels Iur-
la Coinmission rilixte, ou dont 1:i 1irol~riiFtC s~iissc tlc boiiiic loi
scrait suspcctCc ou contest&. Lcs coiic'iiisio~is:iustl~icIlci;irvic:ii(li-;i
l'Oficc seront cliscutéeç avec la Cornmiçsioi~iniste.
F. - L'Office de compensation, aprCs coilsultatioii rlc la Corii-
mission mixte, Eixerü les rnodalitEs ct conditions dc vctitcs clcl;
biens allemands, d'une inanikrc gEnErnlc on daiis clcs cas ~i;irticii-
liers, en tenant raisonnablerncnt ço~ilptc à. ILLfois rlcs iiltCrCts
nationaux clesGouvernements signataires ct clcccus rlc1'Ecuiloniic
suisse, ainsi que de l'opportunité d'obtciiir ic r~icillcur pris et di:
favoriser la libertidu commerce. Çculcs Ics pci-sirriiiesttiaticiii;llitE
non-allcmandc prcscntan t lcs garailtics \;cii~lucssci-ont adii~isc;'i
participer 5 l'acquisition des bicriç cil clucstir-in,ct tçriitnicsui-cs
utilcs seront prises puiir Gvitcr Ic rricliat tiltCricur dccs Iiiciis1i;it
dcs rcssnrtissants nliclnailds.
Si la Commission mixte, après consultation ~VCC I'Oflficcdc
compensation, ne peut se déclarcr d'accord avec In dkcision cic cct
Officc, ou si la partie en cause le dbsire, l'affaire petit Ctrc, claiis
le délai d'un mois, sournisc à unc Autorit6 suisse de rccsiirs. Lcltc
Autorité sera composée de trois mcmlires ct 1xésidCcpar un jiigc.
Elle statuera dans la forme administrative, dans Ics ciblaisIcs pltis
brefs et suivant la yroci.dure la plus siir~plc.La clCçiçioiidc l'Oflicc
de compensation oii, sclon lc cas, de I'Autoriti: suissc clc rt:coiirs,
sera dkfinitivc.
Toutefois, si la Commission mixte est cn dksaccaril :ivcc iiric
décision de l'Autorité suisçc dc recours, lcs trois Go~~vcrncii-ict~tu
alliéspourront, dans le délaid'un mois, soumettrc Ic dif &rcrrcl,s'il
porte sur des points visés 5 l'Accord ou i son Ailncsc oii s'ilcsl
relatif A leur interprétation, 3 un Tribunal arbitral cornpos6 rl'uri
membre désigné par les trois Goiivcrnemcnts nllibs, (l'linirrcmbrc
désigné par lc Gouvernement suissc et d'un ticrs arbitre dkigizi:
d'accord entre les rluatrc Gotlvernetncnts. Pour Ics affaircs qui ~icsoiit lias dc 1ircrrîiEi.ciilîliurtaricc, la Luinniission miatc et l'Office
de coinpensation pourront SC mcttrc cl'acçord pour soiiincttrc
l'affaire nu tiers iirbitrc statuant scul cn tant clucTribiriial ;irbitral.
'l'cii,snoyciis clc prcuvc pourront ctrc produitç dcvanf Ic Tribunal
arbitr;~l qui statuera souvci-aincmerit sur tous les points dc fait et
dc droit qui lui seront souniis.
1,cs di.cisirins du 'I'ribiinal arbitral scrorit défiilitives.
Lcç irais rlu 'Tribiir~nl;irhitral scror~tllrklcvéç sur Ic produit itc 1;i
licluidatiui-i cles bicns allci-iiancls,nva~it tout partage.
A. - 1.e tcrtnc H hic11 11,tc1 ([u'il est cinployé dans l'Accon1 ct
soi^ 121itic.stcoii~lircnilra tous hicns, droits ct interets clc qiiclq~ic
n;iiiirc (1"" CC soit, ;ic(litici;tv;tlit 1c1'''j;t~ivicr 1948. Les scirii~iics
cl11crlcs 1i1;:'501111~ïii hiiisïi: oiit di^uu dojv~ilt piycr par l'i11tc1-
iili:rli;iirtliiçlcariiig ci-rri;itin-siiissenc scruilt pas consiilCrCt:h 110111.
1'al)l)lic:~tioiidc l':\ccosd cliriinie hicns allctnarids.
13. - 1,'csprt.ssion a :\Ile~-l~;iridscii .Stlemagnc ii visc toiitc:.
11~rs~n11c 1111ysirluc cstiiitir,ilcsrQiclant ou cunstituées cil Allcmagiic
riii ;i!::itit Ic 5iCgcdc lcurs afiairt:~ cn Alle~rlagnc, autrcs quc Ics
rirgn~iisriit,çclc tout(: rl:~tlirc al-ipartciiatît A ou coiitr0liis par 11~s
Ilcrsriritlcbsrliiirit:srint lias dc ri;~tiorinlitCallemande. Der; nicsiires
;i1~~>rt~l)i- ~C o nt pi-iscsIiciiirlirliiiclci-liitthrétsquc des AIIc111;~licl+;
cil ;\lli~~ii;igiic~iossCrlciit CI) 5uisçc par I'iritcrnîEdinire dc tels
cit-g;ii~isiiii:s;,iiiisi clilmr s;lrii.egardcr les intérêts substa~ititbls
clc'l~~~-a)~~ith l~s11:itionnlrtCririil-allemande qui seraient, saris ccl:~,
li(~~ii~l~*+.
I,V~ .ilI~*~~i:i~q ~iiil~:iiiro~~(:t(r;ip:ttri6s ;iv;i~~tle ltej:t~~v~i: i-)~S,
iiii;iit5iijct clcsq~icls scr.;i~itci-vvtiiic,:i\.rint ccttc datc, uric clCcisiciti
<Icxil~i'tri~tnc~ tiémariailt EICS auto]-itl's SU~ÇSCS sont assi~ililbsuiis
RA1lci11:itidç cn Alicrnrigric )).
I-c (;ciii\'crncrnent suisse s'cngügc, cil Fgard aux circo~ist;~~ici*s
sl~Ccinlcsclii cils, ii riutoriscr les trois C;ouvcrnernents alliés ù tircr
iniinCtliatciiiciit, jiisr~ii'; coiicuri-cnçc de jri ~nillioiis dc fraiics
siiissc~s,t1i.s :i\vnnccbssiir Ic ~irorliiit rlc, Iiiliquitlntion dvs biciil;
;ill~*iii;inrlsnIpnIiccs cliii scrurit ii-i~~~iitiiblcssur lciir 1,;irt ilc ci:
priitlliit. Ctbs ;1\~nticï5scrorît :iflcctbcs i la ~trkhnbilitatiurz 11ct ail
rctnl~lissciilctztrlcs victitncs iztirrnliatriablcs clel';ictio~rallemiirirlc,
IE;'~I'irit~t.~i~k~lj;iii-~1~ConiitC i~itc.rgouver~lclizc~~ta lcs r6fiigii.b.
ri. - 1311attcnclailt 1:i cunclusitin d';iccrirclst-tiiiltip;irtitcs uus
c~iiclslïs ti-rais(;oii\~(-rricinciits allihs ont l'intention d'iir~itcr le
C;cjii\~ci-~ic~iiis ~~iiçtsc;iatllicrvr, ct cn attendant la prirtici1i;itiori
3 de ce Gouvernement auxdits arrangements, aucun brevet de
propriété allemande en Suisse ne sera vendu sans l'accord dc la
Commission mixte et de l'Officede compensatiorl et iln'en sera
pas dispos6 autrement sans cet accord.
B. - Il en sera de meme de ventes ou trançfcrts de inasqucs
de fabriques ou de droits d'auteur allemands.
Les dispositions qui précèdentrie sont pas applicables ailxl~icns
de l'État allemand en Suissc, y compris lcç bicns dc ln Iieichsli:iiik
ci dc la Rcichsbahn.
Washington, D. C., le 25 mai rr)qG.
L'AUTORITÉ SUISSE DE RECOURS
fondée sur l'Accord de Washi~igtoli
a décidé
daris sa séance du 5 janvier 1948
dans la cause
Société Internationale pour Entreprises Chirniqiieç S. 11. (1.G.
Chernie}, Petcr Merianstrasse 19, 21 Bde, rcpréscntee par l'avocat
Dr E. Wehrli-Bleuler a Lurich,
. contre
la décision du 30 octobrelrg novembre 1945de I'Ofhçc suisse de
compensation ;iZurich,
concernant le blocage dcç biens:
r. - Le recours est admis et la soumission (le la recouratitc
au blocage des biens ~Ilemands en Suisse est levke, avec effct
retroactif au 30 octobre 1945.
2. - La prkçente dkcision scra commui~iquée L l:i rccourni~lc.
au Départemcnt politique fbdkral, à 12 Ccimmis.;ioii iiiistcct il
l'Officesuisse de compeiiçation.
Uerrie,le -5jaitvier ~948.
Au nom de l'Autoritéde rccours
Le Secrétaire :
NB. T,'expérlitioncomplCtc de la décision de recours suivra. ..
Ilie Blinistcr of 5\vitr.crlaiid presei-its liis coinyliil-iciits tu tlic
Honorriblc tlie Sccrctar; of Statc niicl lias the Iio~iorto cal1 liis
;tttcrltiori ttlicfollowii~gm;itter.
J. Thc ;isçcts of SriciCté liiteri~atioiialc pour Piirticipatic~ns
lnclustricllcs ct Loti~iiicrcialc S, A., nlso ki~oivnas Iiitcri~atioi-i:ilc
1ndiistric- 8 H ;iiitlclsbctciligui~ge~~A.G.; fornierly kriown as
SocittC liitcrization;ilcpour Ei~treprises Chir-iiiqucs S. A. (1.C.
Cheiilie), ;ilço forrncrly krîoivi~as Internationalc Gescllscliaft fiir
Clicmischc L1i1tci-irclitiii1ngci l.G. (and hcrcin;iftcr c;tllecl Intcr-
linndcl), \-c3tcd iiitlic Olficc of :llicri Propcrty, ripprirci~tly \i-cri:
st:izcil~iiiclcrtlicnssurnlitioii tlint tlic compiiiiy, fouiriitlicinitia-
tive ol ;! I;crrii;iii cciiiibiric19211 r,flectcd iritcrests iri tlie slilicrc.
»f st.*ctioij (b) of tlicTriiding \sith the Eizciiiy Act, as at~iciidcrl.
2. Altliuugli neithcr tlic Sivisç aiitlioritics ilor tlic i1nicric;iii
C;overi~riicntlins ~irrîrluccrlevidence ngninst Interhandel, thc Sisiss
1)lockingliroviçions \i4crc;ilipliccl provisionnlly.
3. 1ntcr1i;indcl's nppcal ;igninst this blocking was subrnittcd to
tliCconilictcnt Aiitl-iorityof 12cvicn-,jirovided for by tlie \.l~asliingtori
~Iccunl uf :\pril 2j, 1946. Upon çotiîplctiori of estrcmely thoroiigli
invcstig;itiiiiis inndchy thc Swiss Coinpcnsatioii OfTice, and aftcr
the siibmission nf tlic rcçult thercof by the Siviss Compc~isntion
Ollicc to tlic Joint Conimiçsion, aiid ;ifter thcir joint co-operatioil
in rclntioii thcrcto, the riutliority of Rcvie~i~,on Jar~uary j, rg&
, rctrtiactiveIy liftccl thc blocking of Interiiai~clelThe nllcgation of
;trcncrny control 1i;iJprovcd to be \\.itIiout foundatiori.
4. :\ccording tri Anncs III, p;i~igraph 2, of the IITasliingtni~
1 :\ccorcl, the tlircc Allicd Go17ern1ncnts rn:iy, 1i.ithin orle ri-ii~iitli,
rrtliiirc thc differcnce to be çubmitted to arlriitration, if thc .Joint
1 Coiiiiiiission i:, iii dis;igrccmciit witll any tlccision of the Authority
l tifl<c~ic\v. Sincc tlic tlircc Allieci C;rivcriinici-itsfailed to takc tliis
stcii, tlic dc:cisionof thc .4uthority of licvicw clcclaring Intcrliaizdel
a S\viss conccrn 1i;isbeccimc tirialniirl bii~dingU~OEI al1 parties to
1 th :\ccortl .
i 5. Uriclcr.,lrticlc 1V of tlic \V;isliingtoii r\ïcorcl, tlic C;ovcrniiiciit
(il flicUiiilctl St;itcc; agrecd to tlic releasc of Swiss ~isscts in thc
I liiiitctl St:itc.;.
I 'L'licRlirristci-~voiilrltlici-cforc :ililircci,itc it if tlic Ikpnrtiilcnt
01 St;itc uriiilcl t;riiit;ict tlic çriiiipctcnt (;ovcriiincnt ;igcricics witli
;I \.ici~to Ii;l\:itrg thc ~~stcd propcrty returnecl to Ii~icrhrindcl.
Tlic ;iiii~cscrl doci~inci~lsare trarisi~iittcd solelÿ to describi: tlic
1-cstcclpi-optbrtyancl tc~rcflcct Iritcrhnndcl's titlc thcrctli.26 ANNEXln:s A L.1 K~~J-u~<TI(~N'4)
E.~tcLosz#res
I
Form APC-IA - Noticc of Claiili for Property - concerliirig
455,448 sharcs of thc A stock ;trid z,ogn,oori
shareç of the B stock uf Gencrnl ritliliric niid
Iii111i orp.
II ,, ,, Schedule 913 - Clinracterizntion of Coqiorntc
Clai~iiat
Supplements (with ai~ncxes) Nos. r,2, 3, 4, 5, 5'1, 69GAI, 7, 7:\, l
73, 7C, 7D. 8, Ski, SB, g, gA, 913,gC, ro, IO!\,
1013, TOC, TOU, II, IIA, IIB, TIC, 1111, r?,
1214.
Form APC-IA - Conccriiii-ig176shares of tlic :\ stock oi Gcticr:il l
Aniline Ri Filiii Cor]).
,, ,, ,, Sclierlulc 9S3
Supplenicnts (ivith atlncses) Nus. 1, 1.4, IU
Forni APC-rA - conccrriiiig c:istiiii tlic ngrcg;~tv ;iiiiciii~it crf
SY75,244.70.
,, ,, ,, Scfiedule gU
Form APC-IA - coi~ccriiirigcash rcprescnting dividcrîds 1);iicb!.
Generril Aililirîe cY:17ilrtzCorp. 011 Sept. 2S,
1940, DCC. 12, 1940, OC^ .O, 1941 UpOll650,001)
shares of the 13stock of Gcncrnl Aililinc. L?
Film Corp. rcgistered in tlie iiaine of 1,. I).
Pickeriilg & Co. anci bclongiiig to tliccl;iiirz:i~it.
II ,, ,, Schcdule 913
Form APC-LA - coticcri~iiigcnsli rcyrcçcntiiig dividc~~rlc:~niIiy
Gcncr;il Aliilii-ie & Film Corp. duriiîg flic j.c;irs
1g4o nncl 1941 UPOR Uou,onci slirrrcs oi tlic
B stock of Gencrlil Aiiiliiie rcgistcrcd iiitlic=
namc of Cherno Ma~itschappij voor Llicniisclic
Ondcrncnzingen, arid upoil 3ori,ooo sliïircs rcgis-
tcred iii thc il;iilic of N.V. ~;i;itscli;ili~~~ocir
Industrie cil HnndelslieIniigcn ;il1 hclcingirtg tci
claimant.
,, ,, ,, Schedule gR
Form APC-IA - concerniiig cash reprcsentitig dividciicl pnid Iiy
General Aniline on Dcc. 15, 1941 uporl G5o,c?oo
slrares oftlie B stock of Geiieral Anilii~c rcgis-
tered in tIie nürne of L. Il. Pickcriiig ?? Co.
arid bcloilging to the daimntit.
JI ,, ,, Scliedule gT3
Form APC-1 A - concerning casli representing ciiviçlc~irlslxiirl liy
Gericr;il Atiiliiie oOct. IO, 1941 ;iiirIkc. 13,
rg4z ir11o1 -oo,ooo slinrcs oi B stock of C;cn~r;iI :\riiliilc rcgistered iii tlie ilailie of Baiirlue
FddErnlc S.:\. ;inci bcloi~girig to the claiinailt.
,, ,, ,, Scl~ccluIt:913
Lcgatiori of S\zitzcrliiiirl - 3I;iy 4, 1946
.lt~ll~.\i!-7
cop
Clic i.cçri:t;it.i. [if Stat~y ~ir~s~~iitIs iic;çriiiililiiriciits tu tlic C1i;irgC
tl':\fl';iirtbsnt1 i~it~riiiitri C;~ritzcrE:iiirl;,ilid ~-clcrctlo tlic 31itiistcr1s
iiritc irf 3I;ij- 4, 1948. \vit11ci~clcisiircs.çririçcrnirig thc sctiirn of
;ihscts iii tlic L~iitccl5t;itcs clrtir~~cd II? 1.C;.CIrcmie.In tlic IVIiniçtcr's
ilritu ;ittciiticin is cnllccl tci ;t cli9cisio1iof thc 5wiss .4uthorit!; of
I<i.\.ic.ti"tli~c1;iriiigl~it~rlia~~rli~ 1l.C;.Cticiliic a ';\riss conccs~~".
-flir*1)i:l~;lrti~~ci ~ft Stiitc h;is iici~rceiiisirltcrl{vit11 tlic I)cliartr~lcnt
4if -1iisticc ;iritltII<.'1'rv;isiiry1)c,lxirtirisrit, ;ilid clcçircs to ccirniniirii-
ciitt: tkitb foll(nviiig iw tl~c tiiial ai~l cc~iisi(Ii~i~lc ricjv of tliis Go\*i:r~~-
lll<>lii011 llit, l1I;ltrr.
.\b ria1irvs~.tit; i.c.5 tif Il11: 511.i.ss :;o\vcr~ii~~ciitI~ ia1.c iicrcttifoi-c
l)t,t*iiiliforiti~~ 1,t 111s (;ri~~~i-~in~i*~i ~os~si~lcsts l~cclccisio~~ of tlic 5\~iss
.\~itIioi-ii\. riC l<c\.ic>\v ns Iinïiiig Iiri t:t'fcct ririthc rlucstiosi of tlici
ii-wts il1 ilii, L'ilittvl 5tatvs vvst~~i l)v tliis (~OYP~III~ICI~~ :tiici c1;~iiil~iI
!>\. 1.Ii. Cll~iil1c.
'flii:rlcçisiciii of tlit- i;ivi>:,.liitlicirit!; of l<c\-ic~r~ . ~iisii~adi:un air
;il111v;) lif 1.I;. Clicnlit' Fi-ciii;i 1iroi.isirinn1 Lilockit~g ordercd II?; the
5\vis Cr >11i1~tb~is\tio~(i)l'iic~* piii->i~;iiltto tlic Siviss 1;cdcral C(~~lic11
l)cc~t~(~ <ifI;cbriiar.\*IO, Jr)qri, iirirlnot onan ;ippcal takcil uilcler tlie
ti.1111.;iif tlic \\:.i-;hi~i,ntcii:i\ccoi-cl ri( 3I;~y 2.5, 1944. Thc cluesticiiiof
\\ lir.tlii*~tliib;isscth iii S\iit~i:r-1;iiitlIicltl 11y1.G. Cl~ciiiiearc Gcrriirin
:ihsr.ih ~vliiclisoiiic \vitliiii Ilic ~irrivisioris of tlic \V;i~l~ingtorirlccorcl
I? still ticforc. tlic ,]nilit Lciii~inisz.iori.I'laiiily tlic decisiori of tlic
51vihs:liitliosi t\- tif lti:\,ic\r, ~vlicririincle ;is ;i rcsiilr of an npl)c:iI
ii1irli.i;i S\i.i~ rlt:çi-tbir:itlics tll;iii ;ic,il rcsiilt rif nii appc;il by tlic
IoiiiI I.iiiiiiiii~~triii rii- Ii\. :isi iiitc-i't.stc.(ll~;ii'l\-tiiidcr tlic ~Iccortl,
1% iitit J~liirli~lfi 111i01i titi* l-illir~~l .11;11,,5, t7\.t.ti;~s to tlirb st~rtiis of
I.!;. (:Iii,iiiii*;isc;i,tci;ii 5ivitzvi 1:iiiel.
111 itii!.t:\-ci~t, tlii: \V;i>Ii i~~gt(jti:lc~~~rtlSovcrrls unly l)~-up~>rt i~ï,
>\\itzcrl;iticl ri\\.nccl ril-cciiiti~cilli~1 tl)~Gcriiîans iii Gerinany, thc
~~ruc.(:nl s1 wliicli ;II-c tci lii: iisr(l ns spcçilicd iii thc :'iccord. .4sçcts
-iil)jcct tci ~.r>stiiig iti tlic L-riittlrlStates, wlictlier or iiot thcy hiivr:
lic~i~ii\,c>stibrI ;ire clcarly \i-ithoi~t thc scopc ol tlic .-lccord. Tlic
ilrcihiriii on 1.I;. Sliciiiic's cliilrii tci nsscts iii tlic b~iitctl Stntcs is
.iciIi.I!(,ri<:frii-tlic .It tcirtic'!-(;CYICI:I iiIii~l~r~CC~IO~I 32 ofthe 1.1-ricliilg
u.iiii t\iie 1':lii.iiiy;\ct, as 1111li:licic( ci 'iihlic T-;i\i- No. 322. 7c)til
('oiigi.cc;s, 211(2 Scssi~in.30 [.-.S. C'. .\1'p. SN. 321, or for tlic Liilitcrl
5t:iti.s coiir-t.;if siiit sliri~iltlhc iiistitiitrd iiii~lci-Section 9 (ri) (1 1hc
'l.~~;it\ii\\litII tIIC +~~ic~tii?b~let. The views of this Governrneiit were clearly stated in tlic t~cgritia-
tions leading to the Accord of May 25,1946. Thus in tlie n~criiora~idurii
of Jüne 18.1947 ,eplying to the Aiclc-MOnioircof thc Stviss 1-cgiiticiii
of Juric 4, 1947 aising tlie same poirz tas no\v raiscd, thc Bcpartmc%i i
statcd:
"During the couIse of the negotiütiot~sIcztcliiigto thc Acc~ir~l
of May 25, rgqh he United Statcs rcprcsentati~.cs 1nadc1clrai-
that a decision oil the Interhandel I.G. Clicmic casc cari li;~ib
no cffect on any settlernerlt of or dccisioii ori the vcsting h!.
the Alien Prol3crty Custodian uf l~ebruary 1942 rif tlie stock
of thc Gcneral Aniline and Film Corporation. 'l'hc Cinitth(!
Statcs Govcrnriient has not change4 its \,ic\~ i~itliil; tii;~ttcr-."
In its Aidc-Mémoire of Ayril 21, 1948, tlic I>clinrtrn~:~it ;ilsii
exprcsscd a~rcemci-itwitli tl~c xhicivof thc rlttorricy C;ciii:r:iof tlit.
Unitcd Statcs that "Gerrnan asscts locatcd outsidc uf 5ii itzihi-l;iritl
arc not witliiti t11cçcolic of thc Accorci. **** * l'rcilicrty\mi.sti.1iv I
the Unitcd States **** " (is) wholly urirtftcctcd Iiy tlic \\r:isliii~Ktci;i
Accord " ****." Thc I)cprirtiiici~t fui-tlit~ ~ioiiitctl uiit I~I;L~t1ii.i
haç been tlic coiisistcrit view of thc Governmeril I~I ilic L;iiiti*tl
Statcs sincc May 25, 1946, and that, concurrcntly {rith signiiig of
thc Accord tliis iindcrstanding u7as stcitcd tri, and iiiitlerstoocl h!.,
Swiss ufficiüls.
Tliis Goi:srnmcnt's consistent ii~terpretation of Article IV ciftlic,
Accord lias bccn that it relatcs or il^to the cçtablishmei-it of :i
promedure for tlie unblockirig of Swiss asscts in ille United St;iti:s.
and, as iç true of thc ciitire Accord, it in nu way relrttcç toassctz; iii
the United States \rcçtcd or vcstible unclcr tlic Tracling witli tliib
Encnly Act. This interprctntion fallriws thrintcnt of thc ticgotiiittii..;
of thc Accord. It will tic rccallecl that tlic iti~lilciiiciitatiu~rOItliih
Article took tkc forrn of arî agrcemciit bctwccil the ~l'i.e:isrir\.
Departmcnt and tlie Swiss Miniçter of I;iiiancc for tlic dcfrtistiiig of
the frozcn Swiss asçets iii thc United Statcs. Morcovcr, iinclci tliih
agrcctnent the Swiss Governrnerit ivas precluded froi1-iccr tticat ioii
of assets in the Unitcd States clccrned by this Guvcrni-i-ic~ittrl IJL~
Gerrnan tainted, ur otherwise incligiblc for certification, e\-cil tlitiiifili
claimed by cntcrprises org:inized in Sivitzerlünd.
It iç thereforc clear thüt no clausc of tlie Accord touclics uliriii
or affects in aily r-nünrierasscts or 11ropcrtics in tlie Unitccl 5t;iit.a
in which a direct or iildircct Gerrnan interest is asset.tccl, aiid tlic
status of srichassets or prol>ertiesis not subjcct tn any of tlie IirticrT-
dures of the Accord. Thc dccision of ttle Swiss Autlïorit!- uf Iic.\-ic~\\-
isnrit relevant to the vcsting of the propcrty iii clucstion rtiicl tliv
coritentiori that thc asscts claimed by I.G. Lhcmic iri tlical'iiitibtl
Statcs sho~ilcl be relcascd must thcrcfoi-c be r~jclctcd.
Ikpartment of State,
\Vcishingtori 1111~26, ~948. This text gives Intcrhandel thc rigiit to appeal uiidcr tlie provisions
of the Accord. This corporation wns even obliged to do so bcc:~use
thc deciçion of tlie Compensation Oficc !vas madc iiloliservancc
of the articles of tlie Accorcl, as evirlcrzccd I-iythe intcrvcntion clf
the Joint Commission in collaboration with thc Offcc.
Furthermore, in dcclining the irivitation of the Ailtlinrity of
Rcvicw to participatc in tlie prucerlurc oi ap~îeal, thc Jriit~tCOIII-
mission did not statc that the examination of the Intcr1i:inrlcl c;zsc
by the Authority of Rcview waç i~ot taking placc nccording to 1
the procedurc fixed in the Accord. The only rcaçon gi~~cn ii.;~tliat
the Coinniissiori had not con-ilî.lctcd jts ii~veçtig;itioiw. Siicli lïcirig
the case, if the Joiiit Cn~ninissicirzliacl wislicd to coiitiiiiic its
investigations, tlie threc Allied C;c)vt:rniiicntscoulci hnvc rt:cltiircd
thc difYercnccIn he siibniittcd to ;irùitrr~tiun. III iiot {l116.50,tlic.;c
Govcriii~iciits 11:~vc rcçogiiizcd irnpliçilly tlic tlccisioti i-i~;içIl))J
the Authosity of Keview.
Thus tlie dccision, whereby it is ~str~blisllcclthnt 1 iitcrliiiticicl
is a Swisç-controlled corporation, is bindirig for the sign:itoricç of
the Accorcl. It is tliercforc expcctccl tli:it the Americnii C;civcriiiiiciit
would act nccorclingly.
2. Vcsted liroperty is not excluded from the Wadiiilgtori r\ccorcl,
and the provisions of thc Accord du not allow sucli an csclirsion
to be construed.
The Swiss Govcrnment, therefore, fails to scc t~ow tlic ri1)inioil
that suc11 propcrty may escape the dis~riositions of thc Açcotcl c;in
be deicndcd. Moreover, according to the note of tlic ISep:irtilicnt
of Statc ofJuly 26, 1948 ,veil propcrty i~otyct vestccl Isiitsuhjcct
to vesting slîoulrl ticcscluded fro~il thc Accarcl.
If such o13iili0ilwcre arliiiittccl, the distincti~~i Iii:i\i~cc\.chlc(i
and non-vcsted property would bc witliout rne:ining, as tEicAnicri-
can aiithorities could at any time tratisform non-vestctl liroperty
into vested property and thcreby renclcr thc proviçioi~s of the
Accord inapplicable to it.
Yroperty subject to vesting ordcr is propcrty in whidi an cncIiiy
interest is asscrted. Such assertion, lzowcvcr, ,does riot cscluclc tlic
possibility that tliis propert y is non-enemy. Actually , vesting does
not finally determine wlietticr or not the property is ciiclny. l'lii.;
inust tie decidcd only aftcr examination of tlie facts. Ttie rc;il issue
is not whcthet the property in thc Linitcrl Stntcs is vestctl Iiui
whethcr the propcrty is Swiss. Since thc Accon1 iiscs ;i~irocctlurc
to determirle wl~ctlicr or not a property is Gcrrn;iri, t11erlccisirin
reached after tliis proccdurc is completcd is ayiplicnblr ris wcll to
vested property as to ciny other property,
Hence the decision madc by the Autliority of Revicw, accordirig
to the procedure set fort11in the Accord-decisioil whcrcby it \vi.as
established tl~at Interhanclcl is a Swiss corporation-cnrries ~vth
it the obligation to liberate the assets of Intcrhanclel which iscre
veçted.Swiçs assets in the United States, the obligation undertaken bg,
the American Government to unblock Swisç assets should none the
Iess be fulfiliedfor al1 other Swiss assets, bc they veçted or not.
Nothing in fact allorvs thc interpretation that by the exchnnge of
letters of Novembes 22, 1946, Switzerland ha5 acceptccl tliat
Article IV (xjof the Accord is ilot applicable to vestcd propcrty or
to property çubject to vesting. -
Enasmuch as it has been cstablished, under the prcicedurc stili-
ulated iri the \Yashiiigton Accord, tlint Interharidcl is a Swiss
corporation, it follows thüt the United Stntes shoulcl, ~iccording tci
the obligation assumcd undcr Section IV of the Accorcl, li2)crate
the assets of tliiç corporation.
The foregoing considerations dernoilstrate that tlie ~~r~sltion of
the United States in tlie Interhandel case cannot be coiisiderccl by
the Swiss Governriieilt aç being in conformit y with tlic provisioits
of the Washington Accord. It iç the firm hopc of tlic Govcri-iniciit
of Switzerland that the Ariicrican nuthorities will reçonsider thc
case in the ligllt of the arguments prcsented in this notc aiid libcrate
the açsets of Intertiandel in tlie United States. Sl-ioulcltliis cspcc-
tation not be fulfilled, the Governrnc~~tof Switzerlarzclwrlulcl lirlve
no other recourse but to rerluest that the question bc suliri~ittcd to
the arbitration procedure provided for in Article VI of tlic tlccrird
of May 25, 1946.
Washington, D.C.
The Secrctary of Statc prcsents his compliments to thc Hon»r-
able the Minister of Switzcrland and has the horior to rcfer to
the Legatian'ç note of Scpternber 7, 1948 conccrni~ig :isscts iti the
United States clnirned by I.G. Che?nie.
After careful consideration of the piiints rnarlc iri thc 1,cgaticiii's
notc, this Govcrnmci~t rcafhrms its vicws statcd lircvioiisly. 'Tlic
qucstion of the returr~ of the propcrty forincrly rnr-iiet!,y 1.G.
Chemie and now vestcd under tlie Sracling with tlic k;;iiciii>.Act
js wholly bcyond tlic scope of tlic Waçliington Acccird of hl~ly 2j,
1946, and is governcd solcly by thc statutes of tlic Unitccl States.
'The question is füi-bcyond any perrnissible coristriictioti ofthe
Accord and is tlicrefore riot subjcct to thc arbitratiori clausc ciE
the Accord.
Tlicre follow ccrtairi cletailecl cornments on thc liciiilts raisctl in
the Legation's çntc, w-hich should not, houcvcr, bc talicn ;is
ljmiting the finalit? and gcncrality of this Govcrnriicnt's litrn
viewç on tlic qucstion, both as expresscd ;~tthis tiiiîc nntl oii
prior occasions. 'I'lic first point raised by thc Legation is to the effcct that tlze
dccision of the Swiss Authority of Revietv recognizing I.G. Chcmic.
ris a Swiss corporation, is binding upon the signatorics of tliib
M'asliirigton Accord, '1'1-i~oint is of nci signifiçaiice with respcct
tci thc instant claim by I.G. Chen~ic. 'lmlzatdaim rclatcs to thc
rctirri~ of ~iropcrty locatccl in the L'tlitccI States and subjecr to
tliis G(ivcriittîcnt's puwcrs of scizure, and, as has bcc~iinndc c1c;rr
by tliis Grivernmcnt, sirch ~~rripcrtjriç rio\risc subject tu tlic rlccord.
Hci\icvcr, çincc tlic Lcgilioil sccms to strcss that the :\ilithority
actcd iinrlcr tlic t\ccortl, it may bt: pointed out tliat the Lcgatiori
is in crrur.
'l'hc ~~~ucecrlitig bcforc tlie Autliorit). of IZevierr:\vas ~iot otic
iitirlcr tlic Accord, but \ras rathcr an ;ililical by Çhemic frum thc
~wovisiuiiai Iilocking iiticlcr tlic Swiss 1:edcrnl Couilcil dccree of
l;cl,riinry IG, 1945 I'l~c:;il)pc;ll by Chctiiic \vas, indccd, iiled beforc.
tlit: ~lcccird ivas sigiicrl. The Lcgatiotz is apparcntly of tlic vicii
t1i;it tlic jirocceding br:c:irric citic uridcr ttie Accord rcasoii of
ccit:iin "çollnl~or:itio~i" bctwcen tlic Joint Commission nncl t11v
5\siss Luiiiliciiçritioii Clfficc. I'liis "'coli;~bui-;itiuii",lioiz-cvca,\2.:1~i(i
riiorc t1i;in:trirfiort of tlic =]ciiliCoiniilissiun to securc infoririatiiiii
\vit-II rcspcct to 1.G. Clicriiic, pursuliilt to a scparatc yrocccdirig,
iiriclci-tlli::\ccnr di,itiatcrl by tlie Coinrnission oil du157 13, 1947.
'flic -1uii~t Coriirniçsion Iras not iilvolvccl in the proccedirigs bcforc
tlrc riutliority. Tlius, in rcsponsc to tllc ui'ferof tlic Autliurity to
iiitvr\~ciic in tlic nplical bcforc it, thc Joint Cornimission wruti:
tli:it th17CIICM~ C;LSC ~~~lclethrc Washington Accord \vas still beforc.
tlic Lr)nii~iissionarid tb:it therc ~73sno basis for the Comniissioii
io ayiluir beforc tlic Autbority pursualit to the Accord. Iii coriclii-
siriil, it\vas said, or1bclinlf of n inajoritj. of tlie Commission, that
"Tlic i~ppcal yrcscritcd (by I.G. Cliemie) cm, natutally, have no
cHcct on aiz57 procccrlitigs, tlndertnkcn pursuant to the Waçliingtoti
Accoi-cl, on tlie rn:ittcr by thc Joitit Coiî~rnission." This disposes:
of ;III?;possil~lc conteiition tlint tlic decrsion of the Aiitliority ot
I<i:vici~. Ii:is:iny r:ffrct illion tlic sigi1:itories of tlie Wasliing~oii
!\cciii-cl.
'l'lici-i:i~i;iiiigiriiiitsr:iiscclhy tlic I,cgatiuri rclate tu thc cliic? tioii
~~li~tlict.nii!. dccisiciri iiiidcr thc Accort1 cati ;iffcct thc ciisyirisiticiii
ul i)r(~lx:sty\r'liicli nr;is witliiti tlle po\vcr of ili~ b11it~~l 5l:it~'b tri
hrlixt:;isibiiciiij-~ii-(il>crt1.c.. \.cstcrl or vcstibie propert!. tiiid~br tlii:
'1-s:ldliig\stillt11c ~CIICI? :e~t.
Tlic tcst of tlii::~çcor.d dispuscs of tliis clticstion. If tlicrr: \ïc~'c
iiii!;doiil~ts iis tu tlic mc;i~iiiigof tlie wui-tls of tlzc :\çcoi-d, tlic!.
\voiiItl hc ciitii-cly rt:sril\-vit-iy its iml-ilcineritation sincc sign;ilirt-(m.
tlic rcciii-cof tlic iicgritiiltions,:inclthc li~i~itatioiison ~lic riitlicir~l!.
tif;il1tlic nr~g,oti;ittiifut tlicAllics, ;ind I~ar-ticul;irl!on tlic niitliorit!'
of tlic 1ir1goli;irorfor tlic Liiiitcd St:ttcs. Thcsc are :rllconfiriiiatiir\-
of tlic:liil~it:lt~~~olf tlir: :ilililic:ibilit!- of tlic .Accorcl tci C;crizin~i
jit-cilx:~-t!i.itliiii 5-;\sit/.rrl;i1irl,5iilijtci tlic contrcil of thp %\vis>34 a~uex~s A LA KBQU~TE Ex0 7)
Government, and to the exc2usion of Gerrnan ~iroperty oiitsidc
Switzerland, propert y subj ect ta the seizure lîowcrç of the Allics.
The text of the Accord lends no support tci tlrc assertioii that
decisions of thc tribunals creatcd or r-i~cntionctlin tllc Accorcl arc
to affcct propcrty in thc United Statcs, vcstccl or riot. Ori its fricc
the Accorcl relatcs 0111~7to yropcrty "in S\\+itzcrlririçl".'I'licrr ;ire
sepcatcd rcfcrcilccs, iil the Accord, to yrol~ertj~"in Snlitzcrlniid",
as well as references to persoris in Sivitzcrlarid aclmi~iistcritig (icriiirti
property, to personç in Switzcrland irîdebted to Gcsni;iris, ;iritlto
the liquidation of property in Switzcrlancl.
The only (and thcrcforc cxclusivc) refcrcncc in tlit:rlçccirtl 10
assets in the United States or to assets outside of S1r.tizcrlancl, is
found in Article IV. 'Thisarticle ~irovidcsin part that "l'tlr Cinsur-ti-
ment of the Unitccl States will uillilock S~visr;iisscts in tlic. Citiitcrl
States". Therc has bccil iiu iloiilit siricc ~iricir tri tllc: iic~~oti;itioiis
for thc Accord but tIiat such langiiagc rcfers riiilr; Io tlil: Ioi-cigtl
fun& silhjccl tritlic,i.cczing cciiiLrols:ind not ~it riIto tIII:cli\~i.stitig
of vcstcd 1irol)c:rty. 1his limitccl mciliiiri~ (II tlic wtir(1 "iiiililii~li"
was ~vcliaplircçiatcd b; thc Swiss iicgutiiltwrs for- tlic :Icr:riicl.~vlio
rcpeatedly espresscd thcir concerri ovcr thc frcc~iiig (~f Si\-rss fii~irlc,
in the United Statcs. The terin "unblock" liad :incllias liacl ILclc;ii-
and precise meaning.
Thc Dcpartmcn t lias alrcad J? puiiltcd out thnt coillirii~aticiri iif
tlie rneaning of "iinblock", as Iimited only tri frrize~i prcil)ciAt\;,
lies in the terms of tllcagreement l~ctwccnthe Trcrisui-y Ucl~nrtmciit
and the S~viss nlinister of Financc of November rcj4Gfor tlic dcfrost-
inç of frozcn asscts in thc Unitcd Statcs.
Even aside from explicit views con1rnunicrttt.d rluritig ,tlic tic~i-
tiations, tlicrc are many statcmct~ts rclcvnnt Io Ilic cliicc;tiriii{il
thc apylicnbility of the Accorcl in thc rccui-d of thc ricgriti .1t'1011s.
Ainong thcse arc nlimcrous iildicatioils thnt tlic par-ticilintinx
Allied Govcrnmcntç, as successors tci.the 1cg;il ~iiitlicii-itv nf tlic
German Governrncnl, were dirccting t11eins~:Ivcsonly tri ilic
suhjcction to rcpnrations of Gerrnari liropcrty ivliiçli, 1icç:iiisi:
of its location in Switzcrlancl, was bcyontl, Alliccl cntitrril. 'f tira-
were not coriccrncd with Gcrman prol-icrty outsidc of Sii.itxcrl;iricl,
suc11property being fully withirî thc contrcil of tlie Allicrl C~'ovcrri-
ments. As in thc case of thc Accord itsclf, thcrc arc ririiiicr-nus
referenceç, in the negotiations, to Gcrman prcrpcrty in Sn.itzcrl;i~rrl I
and none to Gcrman property outsidc of Switzcrland. ?'hc ricgciti;i-
tors moreover made it clear that tlieir çonçcrii over asscts siikjecL
to the control of thc Allies was lirnited io S~vissfuncls ~vliiçlr 11;~cl
becn frozcn iii thc Uriitcd Statcs.
The limitaticins on the collecti\~c authority of thc negritiatrirs
for the United States, the United Kingdom and 1;rlinc-earc fiirtlicr
support for this intcrprctntion of the rlçcord. 'I'hcncjintintorç, \~liii
signed on behnlf of al1cliccountrics ~vhicli ;ire:~irnii~ir~iiil~c~ofcilii:
Intcr-Allicd lieparaticiris Agcncy, werc c:~rr-!ringotit ilii: ti9rtris (iltlic Paris Agrccmerit 011 Rcparatiori of January 24, 1946. Articli: (i,
~>aragraphC, uf t11cAgreei~îciit statcs tlzat
"l;crriian asçcts iti tliose coutztries tvhich reinaincd ~ieiitr~il
in tlic Iyar agaiilst Gcrrtintiy shall bc rcrno~ed froni Gcriii;tri
owncrshili or çcintrol ritidliquirlatcd or disposcd of iriaccordancc
\rit11 tlie aiitliority rif 1;r:incc. tlie United Il;it~gdom niid tlic
Ü~iitccl St~itcs (if !\incricri, piirçuai~t to arrangcnicnts tu bc
ncgotiatcd iiritli thc ricutrnlç by thcsc cauntrics."
In tl-icsarile Articlc, iii par;igrnph A, it is statcd
'L13ncliSignatory Govcrrimeiit shall, under sucli ~iroced~ircs
as it rîiay cliocise, lioltl or clispoçe of Gerinan ciicrny risçcts
irill~iii ts jiirisclictioii iii niaiiiicrs designed to precluclc tlici~.
rst~ii-n to (;c:i-n~r~i~nv~wr~l~iopr coi~trol ..."
lt caii tliris Iic sccil tli;it tlic Agrccmcrit csplicitly Iirnitcrl tliil
:i~itl~or ? of tilt, ~it#~titi;~Lo rs (;t:rit~:i~~iisscts ii~S\vitxcrIai~~l;LIUI
t*sclt~(h:(! [rot11 Lllrir i111tI~oi-it~,:iny ;iLti~i~~~ L~otdis~)oscuf (;CI iii:~~~
:iascls ;~Ii-~~;~t si11~1t:r;tto tlic scizilr'c Iiuiicrs uf Ihc çri~it~trics
sig11:itory to tlic :lgrt:i:~i~c~it,
'Flic~~iitliorilj. of Lliciicgoti;itor for this Governnicrit, rnorcri\.iTi-,
1r;issi1iiil;lrlyliii~iicrl.As tllc T-cgatioriis anparc, tlic stritutcs ciftlic:
LLnitcclStates tcgulating the seizure aricl clisposition of c11c111~.
1)ni1)t:r ' proviclc 1li;lt clriinis for a voluntary rcturn of \-estcil
prol>crty 1maybc iilcrl by dcsignatccl groups of aliens ~iot liostile
tri tlicLiriilcd Statcs, ailcl, ifsiich claitns sliould be rejectecl, th:it thc
cciiirts rriay cntcrtaiir siiits by non-cnctny owners for tlic retiirii
of Ilic ~irtil~crty.-flic Accvrcl iras riot iiltcridcd to, and could rze~t,
iiiitlci ilii: coiistitirticniaI 1:iu.sof this Go~~crnrnent,ovcrridc tlit~se
sl;ltziics. Tlii: rcturri (if vcstccl propcrty has becti spcciîic,ill!.
i-cgiilritcd Liy tlic Coiigrcss ;ind tlie Congress 113sunly iccctitly ,
Ili I'ublic T,E~\N I~o. Y96of J ~11y 3, 1948, re-eilacted the nlanclatc tli;it
C;c~i~i;iii~>rolx:rtysliall i~ot hc rctiirricd to its forincr oxvncrs.
On tli~bcitlict. Iirttid, thcrc Ii~isIiccn iio nccd, ancl 110 rtiiiiii,[or
;iii;ign:t:iiu:i~tt1i;tt 5\viss prcipcrty ititl-ic Uiiitcd St~ttcs slin~ilrEIic
i-rlcasc~l Irciii~\.csting. Tliis Goiw-ritlicnt has riot i+est~:cl51i.is~
1irol)crty biit oiilÿ oste~îsibl\- S~riss~rvl~crt~r,actually cnciiiy pro-
pcrty. ?'lie foriim in ~i-hichthe rquestic>ro lfSwissor cnerny oir.iic~-sliili
of suc111xul>crtyis tu lx detcrniiilcd is govcrricd b!' statutcs criacti:tl
IE~~IIC COII~~CSÇ.
.l'hc Lcgrition poiiits orit that un~.ested propcrty niay bc vestctl
a11rltticrcliy talieii iroin tlic ayiplicability of the Accord. The itripor-
L;irii clistiiictiori, Iiotrc\-er, is iiot betweeil \-estcd prupcrty .i~irl
iiiivcstcd prolicrty, but I~ctiveeiipropcrty subject to the beizrirc
1~0ivcruf tlic Ijiiitcd States rincl liropcrty siibjcct to thiy pciii-cr
tif the 5\iiss C;ovcr~iiiiciit.Tlic forrzier iç rzot subject trith[: .-\cçrircl,
tlic 1:itti.r-is. l'lic cinl!~prti~>~ty sirbjcct to tliis Go\-ci-riiiic~tit'!,
l)otvtbi 11liicll iï trit,titiritiiii tlic, Accorrl içSi1 i~tihlock~d ~-irri~>t~ rt! and the arrangement with respect to such propcrty, consistcntly
with the sboveprinciplcs, leavcs thc dcterrninntion of its cneniy 1
character cscluçi-r~ely to this Government. Whilc thc Accord
provides that Swiss property is to be unbloclied, it has hccri ;igrcerl
that should this Government deem aiiy of it to he cncmy-taintcd, i
the SW~SG Sovernrnent may not ccrtiiy it for ~inblockiilg, aritl this
Govcrnrneilt nced not i~nblockit.
lil summary, the dccision of the Swiss Autliority of Hcview 11;~s
no status undcr the Accord. If ithad such status, it waulcl still be
limited by the applicability of the Accord itself, whicli lins no
effecton propcrty which is withiri the power of tliis Govcrntncnt to
scize as enemy property. The suggestions of thc last paragrnph of
the Swiss note ur-ider rcfcrcnce arc in coilscqucncc conlyilctcly I
1 linforinded and cani~ot bc ndoptcd.
It is trusted that the J-cgation ~villriliprcciatc thnt tliesc are
the final views of this Govcrnment, arrived nt ~iftcr ctiii-ipIctc
re-cxamination of the position cs~îresscd in thc Siviss tinte of
Septcmber 7, 1948. II
Ir
~ Department of State, 1i
Washington. Octobcr 12,1948.
l
LEG.4TION OF SWITZERLAND
, \VASHLNCTON 8, D.C.
The Minister of SwitzerIand presents his coinpliineiitsto tlic
I4oilorable the Secretary of State and lias the lionor to inforin
the Secretary that he haç been instructed by thc Swiss Governmcnt l
to bring to the attention of the Departmcnt of State the following
points with respect to tlie American assets of the Socikté Inter-
nationale pour Participations Industrielles et Comniercialeç (Tntcr- I
Iiandel),a Swiss corpor ation: ,
(1) The suit brought by Ii~tcrhandel in tlze U~iited States ,
Ilistrict Courtto recover tlze asscts vested by thc Alieiz Propcrty
Cuçtodiail will be dismisscd witli prejvdicc on or about Junc 15,
1953 unleçs Interliandel in the meantirne produccs for inspectiori
by the United States Attorncy General certain papers in Çwitzcr-
1;ind.
Thus InterIlandel's claiin for thc setur~i of its assctç is about
to be denicd in the United States courts, solcly on proccdural
grounds, without any oyportunity for a hcartng on the rncrits.
(2) The denial of a hearing on the inerits nffccts not only a
Swiss corporate entity, Interhandel, but thc liunclrcds of Çwiss
citizens who have irivested thcir savings in sharcç of Ii~tc-rlianclcl The Swiss Authorities, on their part, have rnisscclno opportunit?
during the past years to make evcry possiblc effort for the solution 1
of this problem, eçpecially, as shown by the enclosure, in thc matter
of the Sociét Intenratio.~zaicporw Purticipatioits Ittdlrsfriellc~t ,
CommercialesSA (alsn known as Inlerf~alzddor I.C. Chelnie).
In the spirit of s~icliconstructive co-opcratian il: sliould not IIP
too dificult to reach an tirrangernent satisfactorg: tcitioth cciurit~-ics.
Amex (concernirig the matter of Iittcrlta?zdd}.
Sunziitary ooj Ilie Egoris O/ tl~cSwiss Gnvcrii~ncirf
For n Solittio~t the I~ilievi~aitrelnlfcr
I
The rnatter of Iî?terhnizdelhas now becn pcnding £01- n pc~-irid
of over twelvc ycars. The nssets of this S~rissCorl.iciraticitii~itlic.
United States were apparently vestcd by tlic Office ofAlicn I'rolicrty
under tlie assurnptian that tlris cornpnliy, foundcd in rgzS, rt:AcctcJ
interests in the sensc of Section 5 (hl of the "Trading with tlic
Enemy Act".
As far back as the suminer of 1945, the Swiss Lornpci~sntiun
Office, an its oivn initiative, examiiied I~zteritaitdel\vitli rcgar-d
to a possible continuation of its formcr tics \vit11tl-ic (;crii-i;iii
enterprise, I.G. Farben. Althoiigh rzocvidence ivhntsocvcr foran!
such relalionçhiy for the tirnc after 1940 could bc proclucccl, tkic
Swiss Conipensation Officc, upon the irisistciice of the hllicd
Governments, particularly the Governmeilt of thc U~iitcd SS;itcs,
issued a provisional blocking ordcr on October 30, 1945. Iiolloiviiig
this ordcr, Inte~/zcalzdelwas submitted again in 1946 to estreincly
thorough and lengthy invcstigations which only confirrncci tlie
findings of the first examiilations in 194j. The Authority of Rcviciv,
cstablished undcr the Wasliington Accord, arrivcd, thcrciorc, attlii:
coriclusion that I~tlerlzntzddwas not Gcrmnn and ordcrcd tIic5i.iss
assets of this firm tohe tinhlockcd.
In accordance with thc proçedurc ul thc Wndiingtaii hccc~stl,
this clccisionwas submit.tcd to théJoiri tConin~issiori.Tlic \Vas11itig-
ton Accord providcd that if the Corntz~issio~w zcrc iilt1isagrt:ctnr:iit
with any decision of tlic Auth~irity tiflievicw, thc tlircc AllictI
Governments could requirt: that tlie ciiffercilcc bc subinittccl tci an
arbitral tribunal within a pcriorl cif one nont th. Siilcc thc A1licc.l
Governrncnts failed to take such a steli,tliccieçisionofthc .4uthoritv
of Rcview became final aiid, iii thc opinio1-ioftlieSwissG~I-criirrictit
(note of the Swiss Lcgation to the US, Department of Statc,
Septcmber 7, rgqS) b,inclingon al1partics to thc .4cçostl. :\l\.Sl:XE5 :\l..\I<EC)U~TI.E (s' TOI 39
1I
'Chc in\,cstigatiriiis of l~rterl~aiidelivcse iindcrtakcri tilriinl!.
bccsiisc thc Amcricari ~\~tlloritit:shüd asscrted ori scvcral occnsiuiis
tliat tlicy Iiüd delii~itc procifof tlie corlti~zuation of tlic forri~crtics
oi ttkat firm ~vitli I.G. 1:arbcli. Dcsl-iiteniirnerous requests, tio slicli
proof has yct bccn coii~~nrinicatcc lo tlic compctcnt S~iissauthcnritics.
Ncvcrthclcss, tlie mensurcs t;ikcri iii the United Statcs against
thc :\rîzeric~i~iassets of Iii(~rl~nrtdeL R-creliiaiiitained, and this firnr
\vas tli~iscorripelled to seck relief througli litigntion, the teriniiiation
of xi-liiçllcririnot as yet tic forcseen. In order to facilitate thc tnsk
of tlie Atricric~incourts, tlie Swiss Goveri-~ment has inadc the
ividcst possible use of its discretioil in the application of thc Rank
Secri:cy niirl Ecoiioli~ic 1ispiori;ih.cLaws iii ordcr to enablc Infer-
ltnrlrlelto proclilcc 70.000 niicroiilrns of its own, alid 63.000 of tlie
rccords of the Sii-issBnrik Sturzeiiegger. Tlie American Autlioritics
h:~vccon.;istctitly rcitrserl tlic esa~~~ii~ation of the lattcr.
-1'lichn.i.;s riutliuritics lia\,c (311nurncruus occasions offercd tticir
co-cilwr;~ticir itr orcler tri ~rorkout i~lintcvcr method \rrouId aplicar
tri 1)~-t~iust siiitablc in rcçciliriirg tlzc Iirlcrhnrlrlcl casc-be it a
st:ttIctrict~t of this ç;ist7 :iloiic--or oric involvins al1 Swiss assvtr;
vcstctl iri tilt:Cnitetl Stntt>s.Siicli prqmsalç li~iïc aç !+etbccii ~~itlicr
rlr~iiic<l01- ,i~isncrcd itictiiiclusivcl~.
'Flic Rl~iiistcr of Sivitzcrliirid prcscnts I-iiscuinpliii~eiits tu ttiv
I-101itir;il)ltlie Actiiig 5ciccrctnr~.uf Stiitc niicl has thc lioriuur to
c:ill liis iittcnticin tn tlic ~irnblcrii rifthc riçscts vcçtecl in thc U~iitctl
st .itc. .i. cnctii?; ~ii-o~icrty,but c1:iimcd by sniss citizcnç or Sivis$
çrir~~os;i~iu~i'sllhis lii-ril~lciIiiis 1)c:cria c;liise of scririus ctiriccrti iii
S\i.iizt:rlnrirl frirtriaii?. yc;irs.
CVI-tniiiriirlasurcs t;ikën by ilic United 5tatc dsuring aiid :ift?r
WorId \Var 11 iri tlie l~clcif Lcnriomic \V\;:irfarc aficcterl the intcrt*sts
rif ;i 11i:iilralStntc like 5nitzi:rI;ind in a maniicr ivhich, in notiii;il
ti~iics,ivriiildl-ieiiicoiiipritiblc \vitIltlic ~-lriricipIoef Ille i~ivioIability
(3f [1~11':it]t)riopcrty. C)f CUIII-SC, in ~rcicr to ~ircvcnt a possilil~b IISC
(if I{ircigti 1irol)c~'tvin thc Lynited Statcs for cnenly n.nr niins, a
tiglit ;iiirl kir-Ie;içliing coiitr-ri1ilIn!- Ii;i\-eliccri considcred ncccssar?
AS iolic: ;lstlir ~t~tt'(II \\-AT135tcd. I~~clccdi,f oi-ily a slight sirsliicioiiof an enemy influelice were cntertaincd, assets Iocated in the Uiiited
States and owned by neutrals were treated in the sarnc mtinricr ;is
enemy assets.
After tlie termination of World War II, and iri aclditioii to tlic
above, confiscatory mcasures werc adopted in 1948 with reg:irrl to
cnemy assets. As Far as the Swiss Governincnt is ii~forrîicd, tlic
purpose of such ineasurcs wns to n.inkc the property of forrricr
enemies avajlabIe for thc compensntioil of damages c;iiiscd (luring
the war to the persans and I~rupcrty of Anicricari citizctls. 'l'liis
ncw policy of corifiscation is esscntinlly diffcrcnt fronz tlic oric tif
preventive control, the ncçessity for which ilnd ccnsed Lu csist ;it
the end of the war. Nevertheless, applying tlie srimc Lir-rcacliirig
psinciple as ernpioyed for tlie prevcntive control, tlie confisç ;t1011
in practice was likewise not linijtecl to assetç bclongirig triforrncr
enernies, but also was extcnded to nriutral ;issets. As ;icunsctlucIicc,
;isçcts of Swiss citizeils or corpcirationç ;Ire csposcri ta-rl;iy tri tlic
risk of king used for the reliaration of d;images caii~cd 11-1;\\.;ir
in which Switzcrlniid iiplicld its trnditiunal ncutrality.
Viewing the situation afiiiost tci~ycars silice tlic t:~ltrif \Vorlrl
War 11, notliing should be ovcrlookcd ivhicli woulrl licllitci:ti.oirl
such a conscquence scriouçly riffcctiiig substü~ltial Siviss intcrcsts.
It is believed tliat this view will siircly be shlirccl by the U.5.
Governrnent, a11 the more as the question of a returri of tlic vcstcrl
property everi to former encmy nütionals was made ttie subject of
legislative proposais in tlie U.S. Congrcss, and is being gii~e~i
jncreased attention by tEiecornpctcnt Arncrjcan autlioritics.
The Swiss Government has recently rcviewcd the proble~ri i~ia11
its aspects, and more especially in the liglit of the yrescnt circuiii-
stances, which are so fundameritdly different tl-innthosc pscv:iilii-ig
during and shortly rtfter the war. Tl~c Swisç ;i~itlioritics ;~rrirctl :it
the conclusion tliat a just and amicnble solution should bc souglit
on a new basis, in osder to relieve bot11governnicrits froti~a criii-
tiriuation of the controversics of tlie past, witli al1 tlicir pulitiç;il
and legnl implications. Tliey arc, of coiissc, iiw:iïc of ilil:11i:iiiy
cluestions of ri more iechiiicnl niitiirc rcsulting froin thc cotnlilr:~
character of t lie whole probicrii. Nevcrt Iiclcss, tlic Sw iss Cicivcrii-
mcilt is confident thnt, il?11spiritof iinclcrstai~clirigariclctiiistt.iictivc:
CO-operlition,it should nut be trio diffïçu1t tu find ;Lsoliititiii s:itis-
factory to both countrics.
Thé Swiss Govcrninent , tliereforc, proposes th;it a j<iiiîeffort
bc made by Swiss ancl Arnerican authorities to iirîcl siich ;i iiciv
I-iiisison which a prnctical solution could be ncgot i;itec"lregirrliI i~
tlieasscts vestcd iri tlic United States and claimed by Sn-iss citizc~ii
or corporations.
Washington, D.C. L'op>)
Tlic Aciiirg 5ccrctary of State 1irc1sentsliis ciirnpliii-icnts to tiic
Worîoral~lcthc Miriistcr of S\r~itzcrland, arid 1i:isthc hnnor to refcr
to his riote uf April g. 19-5s 3ii~çcstirig i~egotiaticins bct\\-cc~iflic
Govcrrîniciit of Su itzcrlarid aiici tlic Goi:criirneiit of tlic Uriitccl
St~itcs,lookirig towal-cls a scttlcnicrit of tlicçnsc of I.G. Clri.iiiii7v.
ISrorarii- tlicaCciiirtrcfcrs to tlic lirni of Ititcrliandel as 1 .G. C'licn~ie),
no\v 1)ciirling jri the I'listrict Court ior the District of Col~imliia.
'I'lienotc points (lut tlirit thc suit n-il1bc dis~nisscd \r.iEliprcjudicc
011 or about .Juric r5, rgj3 uiilcss 1.G. Clicmic irathc incantiinc
~~~id~iccfsnt-iiispection certaiii p;ilicrs no\\. Ioçated in Sir.itzerlnnd.
I..(;. Clicmir iioii- li;is, rtnd at al1titilcç lias hacl, thc ftillcst
cilq>c~rtiinity for n 11e;iringon tlic incrits (if its c;isc, in accorclancc
\vit11 tlic iiritici~ilc\vliiçli prci.;~ilsin tlic Uilitccl Sttitcs tliat cvcsy
crin~pI:iiii;~ii;i~gniiista >ibiztirr:f ~~rolicrty )riytlie Govcrnment slinll
harc criinplcti: ncccss to tlic courts in riccorclancc ~vithlaw. III tlic
rsïciitiot\ t>I tliis liriiicililc, I.(;. C'licinictias maintaincd its silit
;iiirlrccr*ivr:ctIhe bcriclits rillolrecl to litigants, arnnng tlicm thc right,
~illiichit 1i;iscserciscrl, tn ins1it:ct ai-iclcop? al1 the documents in
tlic ~x~sscs~o~onf tlic C;ci\-crrirncntof tlic Unitctl Statcs. I-et it has
iint ribcyccl tlic cirdcr of the Coiirt piitting upon it the sccilircic;il
rililigatiriri to proclucc ihc dociiincnts Iocatcd iri Switzerln~icl
knoii-II ;is tlic.Strir~ciicggcr p;~p~rs.C'hicfJiidgc Laws, of thc District
Court fcirthe District of Colu~nbia, in his oliiniori of Fcbriiary ~q,
~cis.:, Ii,is commcntccl that 1.G. CIic~î~ie Iias bcc~i iiilegal dcfalilt
[if ilic ordcr for two ;LIIC;I1i;~lI?;Cars.
'I'licsc 11iipers.uhicli arc .I-cquircd in thc iiivestigation of thc
c.Iit>niycliaractcr uf 1.G. Cliciiiic by tl~c Anicricati Criilrts iiridcr
Arncricrin lcgal staiidarcls, have rlot bcen foi-tlicarning, tliougli tliesc
\,cbryImIwrsu-erc scizccl ;ii-idcsnmincd by thc Sir-issGo\-crniiici-it
;i> iicccssiirily rclcvnri t iii its in\-cl;tig;itioiiof tlicGermiiri un.ncrsliil~
,if 1.C;. (:liciiiic.tinrlct 51r.i~~In~vs.If, rlcs~~itctlie opiiiion tif tlic
IIistrict Coiirl f(i~ tiic 1)istrict of (:rilunilii;i,thc lia~cr5 criritiot l)c
nliicc(l, tlic c~isiiin~disii?iss;~l \vil1 Iic dui., ;is Chicf J iidgc I..:ii\+s
piiili:tl oiit, tci 1.C;.CIic1iîii:'siiinbi1ity to cninply \vit1111tricric;iti
jiir1ici;il ~irtict~tliirsor **theiiivcstigatioii and discovcry of hçts iii
;L cnsc, cst;il~lislicda3 conclucivc tri tlic propcr nrid orclerly rsd~ni~iis-
t~itiriil tifjustiçc iri:iCoiirt of the L;.;iiitec l tates". Such a dismissril,
1))-:i Iaivfiil orclcr of tlic Coiirt \vil1 bc subject to ;il?pcal to Iiiglicr
c(i~irls, riIlitiaccrii-ctriiiccwitli tlic In~vçof tlic Unitccl Statcs.
'1-11sGoveriliiiciit trl thc Uililcc2 Statcç rlocs not qirestion tlic
hi-iss Cci\x:i-rimciit'ssu\-crcigri riglit to adtninistet riilclc~iforccits
oufn I;i\iç. 13ythc s:iizic token, the adrninistrntio~znnclenforccmilnt
of ttlc In~vsof tlii. ZJiiitcd Statcs are witt~inthe cnn~petcricc nrid
jii~isrIictinricif tlic I,:nitcclStatrs Go~crnmcrit. The Dcpartmciit of
3t;iti: li:iç, in its iicitc to thc Lcgation of Cjn~itzcdnnrl rifJiily 25, 1948, among otliers, strited that tlic "decisiun or1 1.G. L11cinir~'s
daim to assets in thc United Statcs iç solel!. orle ...for tlic LTilitcd
States courts if suit should bc iiistitutcd lirider Scctioii y (ri){if
the Trading with the Er~erny Act". 'l7iis positioii uf the Uiiitcrl
States Goverilmerit is unchangecl.
In thcse circuinstai~ccs thc Goverilrzicrit of thc Giiitecl Slafcc:
cannot agree that if thc Coiirt disrriisçcs 1.G. Ltic~nie's claim, tliv
dismissal will be withoiit any oliliortui~ity for a liearing uii tlic
merits or that a "gravc injustice" is thrcatcticd. Tu rillegc that
such a disniissal wriuld bu "wholly un pruccdurril grouilds" is tci
ovcrlouk in Cbicf Judgc Laws' worcls, tliat " l'rocccl~iral la~vs,
provided as a mearis rifattaining just clecisions, arc fiilly as III~I)LII.-
tant to tic of~~erved rissubstailt ivc Iawç, lir.o\-iilcrl, of coiirsc, t lit.
procedural 1aws involvc substaiitial lioints". 'l'licsulistantialit!. uf
thc point is sliow~iby thc Chicf Judge's concliision thrit inslicctiuii
of thc Sturzclicggcr papcrs "il;csscr~tial if tlic 1i;irties rirc to «Iit;iiii
kiiowledgc of tlw facts riilclisstirs I>~.li)rc trial", ;iii(lis;ilsristiciiiii
by his decision ci11tlic conscqiicriçcs tifpursui ri::;ililoilii~ coiirsc..
as cluoted belo~ïr:
"'To üduyt ring: ot1-it.rcoiïrsc woulrl icacl unly to fiustrritiuii
and nuiiificatiriri of established ~irocccliircs. It ~rciulcl~ierrnit
a ioreign governineiit to releasc only th docu~~~cnts hvor,~lilc:
to onc liarty and to retairi or dcstl-0)-thc rcst. It n.ould pcrizii~ l
a foreig~i govcrniilcnt to stipulatc the cor~ditioiisurirlcr \iliicli
documents required iri a court of tEic LTliited Statcs iiiigliitic
released aild thus imposc forcigr1 proccdures icitrials cil suit5
in United States Coui-ts. It would pcsinit a foreigii ~xirty tci
be ~>laçecl in a favorecl positioii by tlic Ia\\-s:or acliiiii oi llr.;
governrnerit. it iniglit defeat the purposcs of tlic Ti-acliiigwitli
the Eriemg-Act by permitfing a fcircig1-n iationr~lto bririg suit
in tliis country to rccover property scizcd iindtr thia Act aiid
thcn çeek sheltcr undcs thc protectivc cluak of its go\-i%rniiitbiit
when discovcry is sought.
The Court concluded that
.. duc proçess ivould be denied if a forcigii go\-crn~iiciii \i~.~-r
to be allowed to frustrate the psoccdureç cstablishctl it-itlie
Courts of the Uniter\ Statcs."
The Leçatjoi~'~ notc ctimrnents that an iiijusticc will bc ~loiic to
the non-cneiny sharcholders in 1 .G. Chenlie. Cliicf .]udgc 1.aws lins,
tu tlze coiltrary, explicitly rulcd that ifthc complaitit of 1.G.Cliviiiir
is dismissed, the çtockholrlcrs inay ileverthcless ~nairitaintlicir s~i~th
for their proportiorial share of tlre assets N.o injustice ciiii i-13siilt
tu the non-enerny stocklioldcrs.
Littlc cost and no ciifficultics attach lii ttzeni;iiiitcii;iiicc vf.;zicIi
suits alid scvcral 1iunrln:d st~icklioldcrs lirivc niurcovcr ,111-..l?,
indicatcd tlicir intcrcst iti ~iiirçiiitil; thrii- lrgal r~~riit~clii~1ihc;iltcirnty ;ilrc;iciy~cl-ircsri~tiiigsuch stockholdcrs, ;is tvcll ris otlicr
compctcnt attoriic!?s. ilridoiilit stnilrl rcndy to prnsccutc such clairnç.
'1-Ilcf;tirticss of tIic fccs to lir cIi;irgccl \vil1 bc ~ctliiircrl to hi, nl)~irovc.d
Ii!. tlic courts. alid tlic ~>rcic;~cutir iii ihc:scclriinis, II!?ostlcr ciItlic
cilxaci;il3Instr.i-, iimillIic \Iitlioiit cslit~i~rlitiirc nf u~irc:isotiablc siiins
LIS ctïsts.
-1'liisC;ovcriiiiici~l ic, ulilitcciativc of tlic S~viss Gci\-criinîciit's
citfcr to co-opcrntc iii srtt1cnir:ilt ncgritiriticins.-1-hccase is, liowc\.cr,
iiiir for clislx)siticii~hy I:riiti*rlSt;itcs Coiirth, or for tht. liastics tu
rlic;l)riw urilliy ii~irtualagrct3nicnt, if pcissil?lc,and ilot onc which can
Ili. clisl-mscrlof oii ihc liasis of go~crtiriit~iit to guvt:riiiiiciit iicgotiii-
tioiis. 'I'lic crisc n'il1 hc dilffciilt tci scttlc utltil tlie niinibcr nntl
;iiiiriiiit tif IIOII-PI~CFII~ ~li;iri~liolrlin~ç Iircot-nckrlou-II. If aiid IVIICII
5i.ttlciiiibiitIicbceiiiir:~ >icissilil~ .t is thc \'ic\r of tliis Govcrniiicrit t tiai
it 4io111(1 l~t, (lo~ii~, is r~ist(o~i~:is vii !i~iclic;ibc:sj II>-clirc,r:trit:gcifi;~-
tiiiiiz 1ir.t\\,ibihithv ~ ~ ; i i ';iiiclt l i hlbtcit-rit.? C;ciicr;il of th<: 1Iriitcd
St;r Iil>. FI
!11 ~III~CII~~~ t l(#IC~;OYI~I-~II IILII~ILht: L.itiitwl5t:ttcs 1s of tli~
nl>i~iiiiii t11;it iii;illo\vi111 t1 1 (:as(. tri ]irocl*c(l iii acc~ir(lanccu.ith tlic
l;i\\.c(if tli~bi+'r~fti% 5tt;litcs. vt1ir.i-irlrriiir-tor settlcd by agreeiiic~ii
OI tlic ~xirtics tu tlic siiit, it is nçting ~vith cutn~iIctcprupririty iii
;ircrirtl;iiiçu i\ itlitlic ~irincrlilcs tif la\\- ;in( jiisticc.
-4 /lm cc 12
clpp}~
'l'!ichiecrct;ii-J -if 5t,~tc< ~ircsriit~his ctiri~l~linir:iit o tlic Honor;ible
1 1 1 Iiliriistcr of S~ritzcrland niicl lias ilit: honor to rcfcr to his ncitc
ot S1;tiçIi 1, rrjj5, \vitIl 1-cgnrd to nsçcts \.cstcd iii thc Utiiteci Stntcs
A:. c.iiciiiy l~ol~r:rt!. hiit clniinrcl b!: $\vis2 citizciis or ci~visscorpo-
r;itttiils. 'I'lic-iIiriistct's iiotc pioposcs thnt ;L jciiiit cfïort bc rnaclc
II? 5ii.ic;c;;iiitl :\ii~ci-icnriairt1ioritir:s to iind n riclv bnsis un ~vhicli :L
~>r;i~ticalscilutiri~i cati bt: rit-gutiatrd.
\l:lrili. tlirn: ;irib ;iniiml~i~rof çnscs i~itliis licld, it is iinctcrstoutl
tlir lliiiistcr's iivtc lias 1i;irticiiIrii-rcfcrcncc tci thc Iiitcrha~iclcl
c;i.;ib.:i scttlc~iici~t cif \vliicl~is funclaiiîentril tci thc ~vliolclisoblciii.
.\.< tlic. I.i,g;itio~ii\ :in.:iic, this c;isc is iicirvpc~idiiig in thc courts
;ii ,i i-i~siiltof thc suit I~rciiiglitby I~itcrliar~dclA.G. for tlie rctiirii
{if tti(. sii;iri~. iii (;cnr.r;il Xiïilitic ;inil l;iliii, ~cstctl 1):- tiic (lfticl~
qlf ,\lic,ii l'~i>l~crty t~iielsrtlic l'r:idins !vitIl tllc E11riii~-:kt, a~iclis
1iiiiwIor rli-;l'i>s ton 1iy tlrc coiirts riiitl(*rthc st:itiitcs of thc Lnitctl
5t ;itib~. St.~.i.rtlic.lcc;s,lliia .-\ttiii-nr-!-(;r>tict.;il,iilio is thc rcçliorisihli: AKNESIS .+LA I<I~QU~TB (NO 13)
44
authority regarding these matters, can, witli the agrcc~nen tof tlic
~~laintiffs,reach such private and out-of-court settlement of tlicsc
questions as is fair and equitablc. Accordingly, tlic Dcpartrncn t of
Justice iç willing, as always, ta discuçs any proposais,taking irito !
account tllc relative nieri ts of tlzc positions ol the adverse partics,
which may lead to scttlemcilt. It is the positioil of thc l)eliarttnciit
of Justice that, even on thc basis of tlic facts so far adrluced, ~iri!.
proposal for a division of the assets or of their procccds wuulrI ricit
be realistic unIess the larger çhare revcrtccl to tlic Ofliçc of I\lic.~i
Property. Thc Dcpartrnerit of Justicc cllso poiiits out thlit it c;lii
only undertakc such disctissions with liersons autl~orisccl 13y tIic
private intcrcsts coricerned to reach a scttlemcrit.
While thcse liroblcms thus do iiot lcnrl tlicinselvcs tu scttlciiictit
'by i~~tergover~inici~talncgotilitioriç, thc I.lepartriiciit ril ,/ii~irl&
would, of course, Ijc wilii~ig to cxplain tiic furegoiiig ;~iid otllr-i-
rcIatcd liroccdticil tnat icrs to rifticinlof tlit~Go\'c~r~iiiicritf hiirt- 1
zcrland, as it liast« tlic Li:gation, ifthe S\\-iss Go\.i~t.iiiiir~~litiiil~l
so desire.
Department of Statc,
Washington, lune 7, 1955.
Légation de Suisse.
'Washingtot~ 8. D.C.
Thc ChargC d'Affnii-CS ad iritcriiiuf Ç~vi tzcs1;lrid prcsctlth Ili.;
cornplirncntç to thc EEonorablc the Sccretary of State aiicl, 111
accordance with instructions of his Goverrimciit, lias ttie Iiu~ioi-
to bring to his attention the iollon-ing natter:
The fact that the considerablc assets of thc SocietCIntcrnationalc
pour Participations Industridlcs et Commerciales S.A., hcrcaftc=r
called "Interhandel", which were ~ested iri 1942 arid 1943, liavc
to this date not been teturneci to thcir riglitful owners, is a ci~iist~
of great concern to thc Govcrnmeilt of Switzerlaild. Inclcccl, ;il1
attenipts of thc Swiss olvriers to obtain thc rcturn of thcir ~~ropcrty
havc so far rcmaincd unsucccssful. As of tiie prcscnt, in vicn ciftliv
latest Ainericati court dccisioris in tliiç mat ter, whict i have i~crz~i
restricted to merc proccdurnl gruunds, the pruspccts for a sati'i-
factory ovcraIi solution scem tu be remote.
The Federal Council is of the opinio~i tliat thc rcfiisal of tlic
United States Government to return these assets is contrarj- tti
Article IV, paragraph I, of thc Swiss-Alliccl Accord of Magr 25,
1946. The Federal Council, in princiyle, as tvell as on acco~irrt tif
thc important interests irîvolved, finds it iinpoççiblc to actliiicsvt~ in siich a situation. '1*l-icrcforci,t is noiv ccinfronted ~tliththe ncccssity
of givitig thc matter its consiclcrritiun, not only on tlie basis of tlié
priiiciplcs qif iritcrnatiutial ln\\- I~clrt;ii~~intg« tlic protection of thc
Icgitirr~nti:i1iti:rcsts crifi.ricutr:ll Stiite, \r.liicli principlcs arc rccug-
iiizcd I~utliII?;tlic Uiiitccl 5t;itcs aiid C;witzcrlatid,but also bcc;liisc
tlic innttcr iii\.ulvc';acll~crcnccto :in agrcciilc~itconcluded Iriet\\rccii
tlic C;oi-crtiinciits of tlic t\vo couiilricç.
Siticc, o\-cr n Iong licriod of tin~c, ciiffctcnccs of opi~iion lirivc
csistr:cl l>cl\vci:iitlic I;u\:crrîriie~~ts of 51vitzcrlnrid iiridthc Uriited
Statcs with rcçl~cct to tlic iiitcrlirct;itiori of thc aforcmer~tioricd
Accord, wtiicl~Iinvc bccti tlii: siilijcct of discuçsions on morc tiiaii
uiic ricçaçiriti,tlic Siviss I;oi-ti,riiiiicnt n~)w fiiltls itsclf con~pcllcd tti
suliiiiiC 11iib11i;lttcr to scttlciiiciit tiv iiitcriintiorial procecdings.
Iri \.ic:\rit'tlitbcIvsc iirirl Fi.ic:~~dli-claticiiisbctwcc~i S~sitzcrlaiitl
:11i<I L,~III~Y St\att:s, as \vt>l!;LS in vic\v r)ftlic gc1it:r:iIprii~ciplcs
iiii.olcmcl,Ilii~\\~issi;ovcriiriictiti-cgrctst1i:itits rcpcrttcd suggestions,
iii:tilc rs~)c.ci,iIiyi~i t11c iiiciiiorniTcIiitiiuf t~ic Swiss Lcgatiriii in
\\i;lsliiiigtori, datcci I>cccinlici- 1, 1954, itlld its 11oteof n'Inrch r,
rgj j, coiicci-t~itigtlic lririssibilitof nr-iiicablyscttiing the Iilterl~andel
nirittcr in furthcr clilrlrii-i-i;rticil:iscirssioris,rernairicd svithout positivc
tcaction on tlic 1i;lrt of thc Unitcc1 Statcs Gcîvcrnriicrtt, so tliat no
ritlier \\.;i!ri>triniiiscr~icnfor tlic prcservntion of the intcrcsts in
q~i~stiuil.Thc Trc:ity of tirbitration aricl Corzciliation concluded
bctivccri Sn.ilzcrl;~i~clariclthc Ijriitccl St~itcs on Fcbruary 16, xgr,
proïi~lcs in ~\rticlc I tlint evcry dispute arisirig bet~r~centhe cotl-
tr;ictirig 11;u'ticsçllaI1,wllcri ordirrary diplornatic proceedings 11avr:
fnilcd, Irt:sul>~nittccl"to ni-I>iti'ntiorior to coilciliation", as tlic
çiiiitr-:ictiii~lxii-tics tti;iy;~t tlic ti~ricrlocidc. Ali arbitratioil clause
is :ils(,cor1iiiricdititlic Accorcl (if Play 25, 1946. -1'Iie17cdernlCoiiricil
~~c~~~ifi';':stI;ii;lt iicccssi~ry:irra~igcitlr:nts hc innclc irz accorrlancc
witli t\ic al,lilic,iblc lxrivisinns of thc 'l*rc:;iiyof 1;cbruar~r 16, 193 1,
biit, i~itil:lki~igtliis ~iroljosa" it itsriot i~ztericicdtu waive an? rights
iitiricr tlic ~Iccorclof Ma\: z j, 19415.
'I'lic 1;cilcr;il Coui~cilis ccirzviriceclthat thc Government of thc
Uiiitcil 5tiltcs (if Atzicrica~vill,in vit:i\tif tllc coi~tctnplatcd arbitrn-
tici~ior cciiiciliatioii prucc~:clings,~iphald tlic 1irincil.ilcs of thc laiiv
of ~i;~tiriiis\,vlicr'r:I~g;uurl I;iitli deinaiirls tIi;it ;il1action bc avgidctI
diiriizg tlic çoiirsc of pruccrliit'e\vli~cti~iiiglitprcjucliccthe cxecutiiin
of thc dccisioiis riS ;in ;irliitr;itici~icuiii-t tir tlic accclit:ince kif tlic
])rol~os;~I ~[ :i co~~ciIi:itie)n cc~iia~~iissio:~ 1,ic1i,11;i<lcliticjt~l~iit tlw
11;1riin i~ii-tilvri1 icfi-;ti~~froi~i ~incIt:rt;~!iir~ Lg1-i~ ki11c1of :iction
~rli;tlscic\-cr ivhicIi iiîiçlit hciglitcil or incrcase the differei~ccs in
clt~t:stho".'I'hcrcforc, iri the scrisc cif tlicsc principlcs of goocl faitli,
as 1:~idcio\\-i~ iii nurnci-ous arbitraticit-i trvatics, arid irhiclz underlié
t11caiitliririty of thc 1ntern;itionni Cuurt of Justice to takc apprci-
~rialc 1irc~c;iiitianaryincasui-cs, tlic l;e(lcral Council rcqueçts thc
.C;ovct.~iii.ictitif tlic Uiiitcd 5t;itcs of :\tmerica to ensurc that tlic
s!rr/rrrqiiri ~i~l:iti~igto tlic ;issctç ol tlic Iritcilia~idcl lucntvcl in tlic United States remairis unc2îanged during the course of the arhitrri-
tion or conciliation prociredings.
(.Simg.I'.SCHSI-DEK.
Washington, D.C., August 9, 1gj6.
'~RAITL Iri'ARI3ITRAGE ET DE CONCLLI ATlON I3S'rKK
LA SUISSE ET LES I~TXTS-UNIS 13'i\h1 kllly ~'13
LE COWSEJ I:.EDBI~A SIISSE ET THE SWISS FEDERAL ~;DUSCII.
LE PRÉSIDENT DES ~TATS-UNIS AND THE PHESLL)E;~ TF TIIE
D'ARII~RIQUE UNITED STATES OF L\AIFIEIC:I
conscients des obligations que Mindful of the oblig t'ions.
la Suisse et les Etats-~ilis d'Am& which have bec11 ;isçunicd by
rique ont assumées en vue de nc Sivitzcrland and tlic United Stiitcç
rechercher que par dcs moycns of Arncric;i, thnt the scttlcmcnt
pacifiques le réglemenf de tout of al1disputcs oi whntci~er nature
difiErend qui viendrait A s';lever or of whatever orjgin, whicli may
entre eux, quelles qu'en soient la arise between them, shnll nevcr
nature ou l'origine; desireux d'af- be sougkt exccpt by pacifie menris;
firmes de nouve:iu l'adhésion des desirous rnorcover of rcnffirn~ing
deux pays au principe que taus the adhcrençe of the tivoçoutî-
les différenddkosdre juridiclue qui triesto theprineiple ofçubii-iitting
pourraient les diviser soientsou- to impartial dcçision al1 jtiridicnl
mis à unc décision impartiale, et contsoversieç in ufhicl~they may
soucieux de montrer la sincéritéde becorne involvccl; and c;igcr to
la renonciationà la guerreen tant demonstrate the sincerity of the
qu'instrument de politique. natio- renunciation of war as ;in inçtru-
nale dans les,rapports entre la ment of national policy iil thc
Suisse et les Etats-Unis d'Arne- relations between Switzerlaticand
rique, the United States of Arnerica,
ont résolu de conclure uritraité Have deçided to concliidc a,
d'arbitrage et dc conciliation et trcaty of arbitration and crincil-
ont désigné, à cet effet, leurs intioii nncl for thnt Iiiirpcjhc
plénipotentiaires, savoi: hnvc aplioiiitcd as tlicir rcslicc-
tive Plci~iliotcntiaric.
Le Conseil FédéralSuisse : The Swiss Fedcral Counc.il: l
M. Marc Petcr, EnvoyéExtra- Marc I3cter, Bnvoy Extraosdi-
ilary aiid Ministcr Plcnipote~~tiory
ordinaire et Ministre Plhlipoten-
tiaire de Stiisse aiix fitats-Unis of Switzerland to thc Unitcd
d'Amérique;et States of Atnerica; ancl
Le Président des Btats-unis The Yresident of the United
d'Amérique : Stntcs of Arncrica: hl. Hcnry Li Stirilson, Sccrk- Henry L. Stimsoii, Secretary of
taire d'État desEtats-ZTrîiscl'Arrié- State of thc United States of
ricluc; Arnerica :
lesquels, :iliri.s s'étrecomniuni- 11~Ei0 h,aving cominunicated to
rlui. lc~irspleins pouvoirs, recon- one anritlier thcir full powers
nus eil bor~ilcet duc forrnc, sont foiincl ir-igood and duc forni, linvc
con\leniis dcç rlispositiuns siiivaii- agreed uyon the following articles :
ttis:
Article 1 Article I
-.
lout difftrcnd, dc quelrluc na- Evcry diçputc arising betliree~r
turr: clir'il soit, rliiivicildrnit d tlic Cuntracting Parties, of whcit-
s'6lcvcr crltrc lcs parties coiitrac- cver natiirc it nlay Se, slirill,whcri
taritcs scro, en cris d'échcc des ordiniiry rli]-ilomatic proceedir~gs
11rucEdCstliploiuaticlucs clrdinni- 1ial.c failed bc çubrnitted to arbi-
res, scriitiiii l'arbitrage oii ;L1;i tratio~i or to coilciliation, as tlie
ctiriciiiritionsuivant cc quc cléciclc- Contsacting Parties mny ;it the
ront ;[lorslesparties contriictantes. tinie decide.
'Tciiitdifii-i-eiidrlumi1'arir;iit pu -4ny dispiitc ivliich Iiasnot bcen
cire rbglt:par 1;ivoie diy1orn;~tirlue settled Iriy diploniacy ailcl iri
ct pour I;isolutioii cliiq~iclles par- rcgnrd to \irhiçh the Coi~tractirîg
tic5 coiitr;ictnlites n'riiiraicnt pas, Pnrticç do not in fact Iinvc
cn fait, recours un tribunal J'ar- rccoiirsc to adjudicntioi~ by aii
bitnigc scriisoui-~~is,ux firiscl'en- arbitral tribunal çhall be sub-
rl~ktc ct rapport, à une Commis- rnittcd for ji-ivestigntion a~id
sion ~>crii~;inentedc conciliation report to a Perrnarlent Corn-
coristituécconform6mcnt ce qui r~îission of Conciljntioi~ coiisti-
tistprescrit plus loin. tutecl in the milnncr lîercinaftcs
prescribcd.
Articlc II1 Article II1
-I'liclJcrmancnt Çorr~ii~isçiotiof
1,;~Lo~~iinissionperm;it~cnte de
cciricilintion coriilircr-idrri cii~sl Cn11cili;itionsliall bc colnpcisccl rif
iiiri~brcs et scr;i çonstitube LUSSI- h1.eniein1.iersand shall bc çoristi-
tUt rliiclmssii?lcn1irCs1'~cIinngeclcs tutcd as scion as ~iosçiblc :ifti~tlic
r:ltilicntiotis clulis6sciit tnzité.Lcs cscliangc of i-;itilicritio~ls of tliis
p;irtics coiltractnntes iioinmeron t Trciity. Each of tlic Cuntrnctr~ig
chaciiric deux meinbrcs, l'un choisi Part ics shall alipoi~i t t11.omciii-
pnrriîi leurs prol-ircsnationaux, Ic I-icrs, onc fron-i aniotig ~ts n\vn
scconcl parmi Ics rcssortissarits iintioi~als, tlic rlthcr frntri iiriioiig
rl'iin Et;ittiers. Elles dCsigiicront thc nationals of a chird Stntc.
cl'uilcornnilin accorclle cincluiéme 1hc Coritrrictit~g l'artics will, 111
incizibrerliriIICsera pas un de lciirs common accord, aplioiiit thc lifili
11i~iii11cr~vllc)dia11 IIO~ II!, oilc
n;itiriri;iuscT qui sera de plein 48 ANNEXES h LA
droit prisident de la Coinmission. of their national$, and wIio shall
En cas de désaccord sur le choix be 8x oficro the Prcsident of the
du président de la Commission, Cornmission. If ilo agreeii-ie~it is
ilsera procédé à sa nomination, reaclied as to the clloice of tlie
conformémeiit au rr~ode prescrit President of thc Cor~~n~içsioiIliiç
aux alinéas 4, 5et 6 de l'article 45 elcction shall lx coticluctcd ilz
de la convention pour le riiglement accorclünce with thc niethocl prc-
pacifique des conflits internatio- scribcd in the fo~irtli, fifth ;tnd
naux, coriclue, i La Haye, le sixth paragraptls of Article 45
18 octobre 1907. of the Convcntioil for tlie Pacific
Scttlernent of 1ntcrn;~tionril IJis-
putts, concludccl nt Tlic Hague
on October 18, zgo7.
En tout tcnips, Iossqu'il n'y At riny tinlc wllci~ Ilierc is no
aura aucuii cas pendant dev:int uise bcforc thc Criiiztnis5ic1,ilicr
la Commission, chacune des par- of the Coritrnctirig I'articsiii;iy
tiescontractaii tcs aura la faculté rccall a nienilicr oftlic Loiii~iiis-
de révoquer tout membre de la sion nlipciintcd Iiy it atid 1i1:iy
Coinmission nommi: par ellc et dcsigiiate liisucccssor.l'lic rcc:iIl
de luidésigner un successeur. Le of tlic Prcsidci-it of tlic Ccirziiiiis-
président de la Commission pourra sion wi11bc cffectcd iitaIiy sticli
ktre rhvoqué en tout temps 5 la timc on tlic rcrlueçl tif citlier
requete de l'une des parties con- Contracting Party, provided that
tractantes lorscju'il n'yaura au- ifthe President shnll tinvc bccn
cun cas pcndant devant 1s Com- electcii in accordance with the
mission, 5 la conclition que, si method prescrihecl ii-the fourth,
le président a &tédésignéconfor- fiftii and sixth 1-iarngrapIiç of
inérnent à la procédure prcscritc
par les a1inf.a~4, 5 et 6 de l'arti- Article 45 oftlze Cuii\-ciitioti for
the L'aciiiç Settlcinent of Iiitcr-
cle 45 dc Ia convention pour le national Disputes, concludcd at
règlement pacifique des conflits The Hague on Octobcr 18, 1907,
internationaux, coilclue, à Ln no request for liis rcciill in;iy bc
Haye, lc 18 octobre 1907, aucune made within a pcriod of two yc~irs
demande de révocatioii ne pourra froni tlie datc {if his clcctiotî.
êtrefaite avant l'expiration d'uil Vac:incies, frarii wli:ltc~,tcaiise,
délai de deux annkes i compter shall bc filled as soon ;isliossililc
de ça nomination. En cas de in the mrinncr hcreiriabovc pro-
vacance de siégeet q~iellc qu'en vided for the milking of origiilril
soit la cause, il sera pourvu appoint iiicnts.
aussitoi.que possible au rcinplace-
ment des membres de laCommis-
sion selon le mode fixé pour leur
nomination.
Les membres de la Commission Members of the Cornmissiorz
de conciliation recevront une in- sliall receive anadecyuritehonora-
demnite suffisante pour le temps rium during thc ti~nc wheti tliey
qu'ils consacrerorit A l'exanien are engagcd in the periorr~iançeof
d'uii diffërend souniis à la Com- duties relntii~gto n crise bcfore~riissiu~~ C.liacunc des parties COII- thcm. Eacli of thc Coritracting
tractan tcs supportcrri. scç proprcç Parties will bear its uwn ex petiscç
fr;iis ct iiiic p;irt Cgnlc cIcs frais and orle-half of tlic cspciiscs of
de 1;i('oniriiissiuir. t.lie Conirilissioti.
1-orscliic les prtics coritr;ic- Aftcr thc Contrrictii-ig P;irties
tniitcs hc seront iziisch cl'nccord slinll liave ngreed to subniit n
pour so~i~~~cttrc u:ti cIifi&rcn~l la disputc to conçiliatioi~, tlie Co1i1-
pi+t~cMurc clcconcili;~tioiz,13coin- iriission st~allproceed to tlie coii-
riiissicitl scrx s~iisic sur rcq~1i.t~ çiclcrntiori of suçh dispute upon ;L
;idrcssCc iisoir ~irksirlcii pir 1 'iilic retliiest serrt to its Prcsiderit by
dc.; 13;"ti~s c~~itr;~ct:illtch. cithci- ol tliciii.
S~II~;tccor(!cot~tr:~ir~bl,a t'olii- Tlic Comniission sli;iIl rileet, iir
inissit~li%(:r6~iiiir;~;[LIIicli (ICsigi~C thc :tbsciiccuf an agrecii.ientclllicr-
1);~ ~UII ~)~-tI%itlr.t \vi5c, ;it tlic plcicc tlcsig1i;itcd Iiy
iiç l'rcsirlctit.
I.;Il oiiiiiiissiur~iciil;ksi-r'mtat:- 'I'licLoniiiiissioii 11i;iyri-a~iicits
Ixol>rcs 1-;glcs ilc ~irvcCrliirc. :\ 0x11 rules of procedure. 111 ttic
cléf;liittlitcllc~r;glcs, cllc siiivr;~, ~ibsciiccof sucli rulcs it shall fol-
;i~it:i~kl111icl~)s.;iblc,1,i~irockd~irc lo\v iii so iar ris praçtic;ible the
pi-E\-ricpar lcs ;irticlcs IS i 34 iii- procedurc set forth iri :Irticlcs IS
clusii.cinciit Ji:1;icotivcritioii pour to 34, iiiclusive, of tlie Corivcli-
Ecribglciiictit liacifirliic rles coritsi tioii for the Ibcific Scttlciiiciit of
ii~tcrii;itio~i:iiis.çciiicliic. 5 La li-itcriirttintînDisl-iutes coilcludcd
lliiyc, IC 18 0ctubt.c 1~~07. ritThe 1-Lig~ieO , ctobcr 18, 1907.
1,;il o~iiiiiissiorîprCscntcr:i son Tlic Conii-~iissionshall subniit
nilqmst tf;iiis II:rlblai rl'iiiic :iiiliCits rcport witliin ont ycar :iftcr
à criiiil>ivrdu joui- oiz clle aura the clate on wliidi tlie casc sIiii11
kt& saihic di1 cliffbi-ciid, à inoins havc bec11submittcd to it, uizlcss
clut: lch p;irtics contsactntitcs tlie Çoi-itraçtiilg Prirtieç shoi~lcl,in
ii';iliti~~ct oii i~c jirorogcnt cc commori accord, sliortc~ior extend
clcl:ii [L'IIIICOII~IIIL~II~iccorrl. 1-i: tlic titi~cliniit.Thc rcport sliall bc
i-;i~~pcrtsera Cf;ililieIi iruis cscIn- 1)rcli;~ccliii triplicatc. onc cuy~y
1~l;iitc;;iiiicsciii1)l;iirchcra rcriiis s1i;iIbc lircsciltcd tu cacli Gai-crri-
:i~li;irl~cgouvcr~~etnentct Ic troi- niciit ;incl thc third rctainccl 1iy
siCiiic,rcte~i~iIxir 1;iLo~tliiii~cjiol~tlic Corrr~iiission for its files.
~~our scs dossiers.
Lcs 1);utics coii tractrirites s'cti- Thc Contractirig Parties agsce
gagcrii 3 fuuriiir i In comiiiissioii to iurniçli tlie Commissrun \vith
;il1 the mcaiis and I;icilitics rc-
tous lcs inciyciis et filcilitEsii&ccs-
c;;iires ~OLI~ SS(II~tiquî*tc et soli cluirerl for its investigatioii :ind
Klppur th report.
~\pri:s cluc Ic ra~port {le lri Tlic Contraçti~lg Parties rcscrvc
('oriiliii~sionICII :iillraCtC SO~IIII~S, tlie right to net indeperirIciitly (%ri
les 1x1[.tics cniitr;ict:iiitcsc rCsci-- tlic siibjcct rilatter of tEiediçlriitc.
vcîriiit Ir:clroii (l'agir librcriiciit iiftcr tlic reportof tlic Coniiiiissiondans la question ayant fait l'objet shall have been çub~i~itted,
du différend.
Article V Article V
Les parties contractantes s'en- The Contracting Parties hiiid
gagent à sourncttre à l'arbitrage thernçelves to subrni t to arbi trn-
tout différend qui sc serait &levé tion every differet~cc tvl~ich m;Ly
ou s'élkverait entre elles sur une have arisen or may arise bctwccn
prétention de nature juridique, i them by virtue of a claim ol right,
la condition clu'il n'ait 1x1 être whicli is juridical in its naturc,
rCsolupar la voie cliploniatique ou provided that it Izas ncit becn
rlii'iln'ait pas &teréglé,en fait, 5 possible to adjust suc11~lifi~i-ct~c~
la suite d'un renvoi ;ila Commis- by ciiplori~açy riiiïit Iras iicititz
sion perrnanentc de conciliation f;ict bccn ncljustccl ;is ;i rcsiilt
conçtituée conforrntmcnt üus ol rcfcrcricc to tIic 1'criii:iiir:iit
articles II et III du préseiittrait&. Conimisçioii 01 Coiicili,it'011curi-
stituted pursuant to :\rticlcs Il
and LI1 of tliis Lcüty.
Article VI Article VI
Lcs dispositioils de l'article V The provisions of Articlc V
ne pourront êtreinvoquees dans shall not bc iilvokcclin rcçlicct uf
tout clifferend dont l'objet any difference thc subject it~attcr
of which
a.relève de la coinpétencc a. is within thc do~nestiç jriris-
exclusive de l'unc ou l'autrc des diction of cither of tlic Goritract-
parties contractantes ; ing Ikrtics;
b. affecte les intérets d'fitats b. irivolves the iritcrcsts of third.
tiers; Parties;
c. depend du maintien ou c. dcpends upon or involves thc
touche au maintien de l'attitude maintcnancc of the trarljtiorial
traditionnelle des Ctats-unis attitude of the Unitcd St;itcsof
dJAmCtique dans lcs affaires am&- Amcrica concerning Ariicric;in
ricaines, communkmcnt connue questions, con~n~onlydescribecl as
sous le nom dc doctrinc de thc hlonroe Doctrine; .
Monroe ;
d. &pend de l'observation ou d. depends upon or In\.rd\.i:s
touche A1"observation des Engage- the observance of tlic obligntio~is
ments assumés par la Suisse en of Switzerland in accordancc witli
conformith du Pacte dc laSocikté the Covci~ant of thc 1-cagiie »f
des Nations. N-d'ions.
Article VI1 Article VI1
J,e tribunal auquel seront sou- 'l'hctribur~nl to whicli juriclic;il
mis les différendsd'ordre juridique differei~ces shxll bc subti~i 1tcclsera constitiik, clnns ciinqiie cas d-~:iEble dcternîii-ied in cach c;içc
particulier, par lcs partics con trac- hy thc Coritrricting 13arties but
taiitcs. Toii tciois ct s;iuf :iccord shail, in the absetlce of otiicr
coiitr:iirc, cc tribunal sera 1;iCour açrearient, bc the Pcrinatlcrit
11enix;tieiitc d'rirbitr;ige Ft;~blic ri Coiirt of Arl~itration establislied
La Hriye par lacanvcntion poizr nt The Hague by tlie Corivention
Ic r$glcilicnt picilirluc des con fitc; for the Pacific Scttleinent of In-
i~zternaiioil;ius, ctincluc le IS oc- ternational Dispu tes coticluclcd
tol)rc 1907.Lcr;dEcisioilsrelatives Octobcr 18, 1907 Jlecision ris to
:iii tribiir-inl feront l'objet, daiis the tribunal shall be made in each
ç1i;irluc c;is pi-ticulicr, d'uil ac- case by nspecinl agreement, ~vhich
ctirtl sliSciril, 'liii pourvoira, s'il y specinl agreement sEiall provide
a licii, :i 1'org;inis;ttiondu trilzuii:il,or the orgnnization of thc tribu-
tl<,litiiiics ~iriiivoit.~,spnhcr;i 1;i nril if ncceshary, shnI1 dcfiric its
~l~v~tiiiiioti1t.s{llii";tioiicrilitigc ImIvrrs, l;li;ill st:itc tlic <lucstioi~
cl tICtcriiiiiic.r;i lescliit*htiïirih, or cl~~cstioris ;~t issilc :111~1 511;111
i-Csciiitll-c. 5r:ltlc tlic tcriiis ol refcrciicc.
Cpt ;iccortl .;jiCci:iscr;i cl;~ns Siicli specinl ngrccmctit sliall, iri
each c:lsc, be rri~idcun tEicpirt of
cli;ttluc c;is coiiclu, polir la Suissc,
c~itifortili.metit3, la Cqnstitution Switzerland in accordance \rith its
lCclcralc, ct, Imir lcs lztats-Unis comtitutional law, and on the part
rlbAnii.ritluc,par IcPrésideritrivcç of thc Unitcd States of Aiiiericx
1';ivisc!tIccoii5ciitctnciit tliSCriat Isy the Preçident thereof, bj7 and
\vit11ttie advice and corisent of thc
Senatc.
Article VI11 Article YIIT
I,i+ j~-&cn t tr;itC scra r:itifiC Tlic ~iresei~ttreiity shall 1x2rnti-
lxir 1;~Siiissc coiiforinéi-iîciilh la lied by Switzcrland in acçord:~nce
Cuiiqtit~itioii fedkrnle ct par le \rith its constitutional laiv and by
tlic Prcsident of the Uirited Statcç
I1rCçidc~itdes Etats-Unis d':li-i-ié-
ricltw :rvcc I'rtvis et le consente- of America by and with the
niriit clu S6iz;it. adviçe aiid coi-isent of theScnntc
thereof.
I.,'Ccf~;i~lglesr;~tiricatiotiç :~iir:i Thc ratificatioi~s çhnll bc cs-
licii à bVns1iington dans 1c plus clianged at Washington rissuun as
brcf cli:l;ii possiblc ct le traite possible, and the treaty shrill cc)-
c1-itrt:r;i en vigueiir IC jotlr de rne into force on the day of tlic
I'~?cil:iiigc clcs ratifications. II exchnnge of tlic ratifications. it
clcii~c~irt:rcn viguciir nuçsiloiig- sliall tliererifter rcmain in forcc
triiiph clulin'aura pas 6té dCi-ioncC continuously unleçs niid until tr:r-
siil-:iviç d'iinc rini-ikcdonné par niinated oi-inoticc of one ye;ir by
I'~iiicclcs jxirtics co~~L~ct;iiite~ ;i. either Contracting Party to tlic
l':i~~trt:. otlier.
ICn Iriidc cliirlilcs pl6niputcii- Iii fait11wlicreof tlie res1icctii-c
ti;iii-rriit signb 1cprfsent trait&, I'>leliil?otenti,iriesIiiivc signcd tliis ANNEXES A LA REQU~TE) (NO 15)
s2
en deux exemplaires, chacun en treaty in duplicate in tlic lTrencli
langues française et anglaise, les and English languages, botli tests
deux textes faisant également foi, having equal force, and havc herc-
et y ont apposé leur cachet. unto affised tlicircals.
Fait à Washington le 16 février Done at \Yasliingtori tlic sis-
mil neuf cent trente et un. teenth day of Fcbruary in the
year one thousand nine hundred
and thirty-one.
L. S.(Sig. M)arc PETEH.
L. S.(Sig. H)enry L. STIMSON.
Note des US:1-Slanlsdcp~irlçrr~c11~çs
vain II. Jaltrrn1957
The Secretary of State prcscnts liis compliments to thc Honorable
the hlinistcr of Switzcrlancl and has the honor to rcfcr to tlic
Legation's notc dated August g, 1956, conccrning ccrtain sliarcs in
General Anilinc and Film Corporation, an Amcricari corporation,
held and owned by the Unitcd States unclcr thc Trading willi tlic
Enemy Act, and claimcd by a corporation incorporntccl tinclcr the
' laws of Switzcrland, Socidté Internationale pour Participatioiis
Industrielles et Con~mcrcialcsS.A., hcrcinaftcr callcd Iritcrhanclcl
and the Swissclaim to the right to a release of tliis propcrty bccnusc
of the provisions of thc Swiss-Allied Accord of May 25, 1946.l'hc
Swiss Governmcnt has rcqucsted arbitration or conciliation of tlic
claim with respect to the propcrty in question.
In the notc under reference, thc Governmcnt of S\vitzcrlancl
further requcsted that the staltis qzbc niaintainccl in rcspcct of
those sliarcs pending arbitration or conciliation ~~rocccclings.
Thc Unitcd States Govcrnment dccply rcgrcts that tlic Intcr-
handel case and the interpretation of the provisions of tlic Stviss-
Allied Accord havc so long rcpi-cscntcd soiirccs of disagr,ccrnciit
betwccn the Unitcd Statcs and S\\litzcrlarid. Ovcr a pcriocl of
many years thc two Govcrnments Iiavc on rcpcalccl occasioiis
esprcssed thcir vie~vson tliese subjects.
Mindful of the traditionally fruitful and fricndly rclatioiis
betwccn the Unitccl Statcs ancl Switzcrlancl, thc Unitccl Stalcs
Government has given most serious considcration to thc vicws
cxpressccl in the aforcrnentioncd note. This has involvcd a tliorough
and Icngthy rccxamination by this Govcrnmcnt of tlic vnriccl and
complicated issues connected with tlic proposais of tlic Swiss
Govemnient. This recsamination has rcsiiltccl in conlirining tlic .\Kh'LXks A LA 1t~~t;i::l'l(s" 1j)
53
vicwç oii this mattcr herctofore comrnunicatcd to the S~viçsGovcrn-
tncrit on rcpcated occrisions siilce 1947.
'ïhc Unitcd Statcs Govcrnmcnt regrets tliercforc to infornz thc
C;overniiient of S~vitzcrland that for reasons set fort11in dctail iti
the cncloscd mcn~orandiim, it cannot agree to the suggestion of tlic
(2overnincnt of Çivitzcrl~ind that the saicl inatter bc rcfcrrcrl to
;irbitrntion, on tlic grourid tliiit the inatter docs not involvc ;i
dispute falling withiiig the scopc of tlze obligation to have recoursc
to arbitration. Likewisc as to tlic siiggestion of conciliation, tlic
Uriitcd Statcs Go~crninent rcgrcts tlzat it cannot acccdc to this
siiggc:stiurifor thc rcnsons sct forth in saicl memorandum. In vieiv
uf tliis conclusion, thc United Statcs Govcrniilent also regrets to
stntc tliat it cannt~t agi-cr:to the requcçt of tlie Govcrnmcnt of
S~vitzcrlancl tliat ilic sfiiiiiqiro bc maiiitaincci i11rcspcct tu tlic
:issct-;uf liztcrliail~lcl luclited i~itlic Unitud States.
-1'11L~iriitcd Statcs Go~crnn-ieritrecalls its notes of May 27, 1953
;ilir.juiie 7, 1955 to tlie Govcrnn~cnt of Switzcrlancl, in which thc
.-ittorticy Gcrrcrrilof thc Unitcd Statcs csprcssed the ~villingiiessto
~irgotiatc \vitl-ithc partics n scttlci-iient of the çasc in the United
Strttcs: coiirts. The LLttorilcy Gcncrril remainç u-illing to cntcr irito
tijrcct ncgotiationç with tlic parties to the suit or Iheir cluly autlzor-
izctl rcprcsentativcs, iii tlic liçht of the stntus of thc suit, for a
st.ttlc11icntof the çaçc ivliich \vil1protect tlie legitiinate iritcrests of
1111partics cui~ccrilcd.
I31iclusiirc:
AIc~~ior;~i~cl~i~~~.
1)cp;~trncn t (ifStritc,
\\'nsliiiigton, J3tl~;ir?;I 1,1957
3fei~iuvriiidiri~zrit'sUS.4 -SicinisJcp(irfc-
iirciilcîlotiII. J~I~II~Y y957
'1-111(:;ovcr~irmcrit tif51~itzcrlnnd h;is rctlucstecl arbitratiotl rir
çiiiicili:itiriii, 1iiirsu;iiit to tlie 'L'rc4iiI:cbru;iry 16, 1931 or tlrc
Siziss-i\llictl liccorrl of kI;iy 25, 1946, cifthc rlriestiotl of its riglit,
iiiirli~rthc t\cçortlof 1qq6, to tlic rclcnsc of çcrtriiil shilres in Gcncr:il
;I~ili~~t::~nd 17il11Lori~oratiol~, ;IIIA~l~cric:ii~corpoi-:itiu~i,livltl ;~nd
ciiviicrlliy tlic Uiiitccl Stntcs iiiiilcr tlic Tradir~g with tlic Bnciny
,-\r:;ilictcl;iitiicc\ilva Slviçs corl)orntioii, 5oci6tk Iiitcrnatioi1:ilii
]jour l'articip;~tioi~sliiclustricllcs ct Coinincrciales S..4., hercinilfter
c~~~l~I~ 1itlcrl~~i1l~lcl"
1. 'I'lic'i'vcaliiirroj IlicClrsc iiiflicUiiiirrlSlnics Cuirvls
Tlic rilnttc*of the riisizcrslii~-o,f the sharcs in qticstion ha5 I~CC 'II
~iil-ijcctrifproçccdings, i~cin-coilcliirleclafter 3 full and fair hcaririg,
iri tlic cciinlictrnt courts cofthc Unitctl Çtiltcs. The shares were vested by this Governmeiit in 1942, under tlic:
Trading with the Enemy Act, as the property of 1.G. Farbcn of
Germany. In 1948 nterhandel, a Swiss holding company, troiiglit
a suit for the return of thc shares against the Attorney Cencral
as successor to the Alien Property Custodian. Tlic issiics \\.c:rc.
whether Interhandel was an enemy or was eneniy-taintccl ~iiitlci
United States law, wliether Interhandel owried the propcrty, aiicl
whether Interhandei had participated in a consl~iracy \vitIl tlic:
Sturzenegger banking firm in Basle and 1.G. 1;arbcn to clo:ik
properties around the world, in the iritcrest of 1.G. ]:ai-bcn. ;L
German concern, and to alloiv 17arbento control sucli propcrtics.
In the course of procecdings in intervcntion, bcgun by iiiinorii!
stockholders of Interhandel and carried to the Suprerne Court of
the United States, it has been held that any disiiiissal of tlic coiii-
plaint of Interhandel would leave unaffected the riglits of ininoritl.,
non-enemy stockholders.
In 1949 ,he District Court of tlic Unitcd Statcs for tlic ilistrict
of Columbia, in which the suit was pcndiiig, orclcrctl tlixt tlic:
Department of Justice eshibit to Intcrhnndcl nll ils rccorcls, riri(l
that Interhaiidel reciprocally eshibit to the Departinciit of .jiisticc
tlie Interhandel records and the Sturzcncgger rccords controllccl b!.
Interhandel. These Intcrhandel and Sturzencggcr rccorcls liad bccn
examined by the Swiss Compciisation Ofice in an invcstigatioii
of the German character of Interhaiidel. Interhandel thcreupoi~
examined and photostated al1 the recorcls of the Dcpartincnt of
Justice, consisting of over 20,000 documents. LVlien,howcvcr, tlic.
time came for exhibition of the Interhandcl and Sturzcnegyr
'records, the Sturxcnegger rccords were seizcd, 113o:rder of tlic Sitf~ss
Government, under the S\viss bank secrecy ancl econoniic espioriagc
laws.
Thereafter, many individual papers were ordered to be relcased,
but others of an unknown number, as well as the books of accouiit
ordered produced, were coiitinuecl under orclcr. of seiziirc. This
ordcr, now withdraivn bccausc the litigation in thc Uiiitccl Statcs
has ended, was many tiincs rcaffirmcd by tlic ininistrics iiivol\:ccl
ancl by thc Swiss I;cclcr~ICouiicil, thc last instance liaviiig occiirrc~tl
on Scptember 5, 1956.
lhe papers of Intcrhandel itself tvcrc purportcc1 to bo r:sliil>itctl
to the Department of Justice, but it clevclopecl thcreaftcr tliat
several thousand had bccn withheld and that tlie books of accuuni:
exliibited to the United States Departmcnt of Justice were a
different set from the original books csarnined by the Swiss Comycii-
sation Office.The Basler Nachrichten of Rlarch 29, 1956,rc1)orts ail
admission by the managcinent of Intcrhandcl that the books of tlic
company were kept in a preliminary version and that, \vliilc tliis
version was available to tlie Swiss Govcrnment, the :\mericaii
Departinent of Justice \\.asshow11only a final version of tlic l~onks.
which oinitted certain itenis, though tlic linitccl Stritcs Court Iiatlcirdcrcd Ilitcrlinnclcl to prndiicc thc docrin-icnts arid l~ooks irliicli
had bccn cx;iinincd Iiy the Swiçs Go\+crnmerit.
Tlic ci-CI-itiinlclisrnisail of Irilerliandci's ço~iililaint n-as 1iast:tl
on tlie failurc tci producc tlie Stiirzcricggcr- pnperç. 'I'lic Court
origiii;ilIy sct tlic tirnc for ~iroduction of ttic pnpcrs as .July 1949.
Whcti ;iitcr Icngtliv ~irricccclitigçit flnrill!.apjieai-cc1thnt thc lrialicrs
ivoiil<lnrit br: j)rricliicc.rl,thr: Coiirt r~ilcd,in rgj3, that thc suit b!.
1titci-h;irirlt>iiiiust bc disiiiisscd tvith prcjiirlice for tlie fniliirc tif
thc c1;iiiii;itlt to ~irticliicutlir. tc{liiircd paliers. II r ITecl.Sup. 43 j.
Tlic Coiirt llclïltEi~it1ntcrli;iiitlcl 1i;icIslioivii itsi:If iinabIc to complt-
\i.itIi tlii: fiiricIairirrit;~lrulcs of tlir: r\trirriçnn juclicial systcrn iintlt~r
n-IiicIi tlir kicts miist I~CF : iilly devclopcd and rcvcriled iii ortlcr
t1i;iLjiisticc lie rioiic. It wns lielci irrele\:nnt that Intcrhandel !\.as
lirc~-~nt~.d 21y tlic ordcrs of i ts C;tivcrni~icnt from prodircing tlie
~x~l'ci-S ".l'lir Coiirt natr:rl tlirit it Iras not sitting in juclgincrîc rin
tlir sitci.ibc\.I:i\vs of 51vit~ri-l,~ricl t1i:it i~c~ltt.;~ ]s 1vv11 3s citix~rih.
~~i\*~~r'~iiiitsi:lx wcll :LS iritliviclii:ilc;,wcrc rt.clirircctn comlil?; \\.itIi
tlic i-iilihO[ ~)i-oc~clziro t:fl-iiitcd 5t;itc.s courts, whiçh arc clcsigriccl
to gi\.i, fiill tliscovcrj- of 11i1,Licts tc_itlic nclvcrse part!- iri tlit.
iiitcri:st if fair-;~iitljust srttli:iiiciit af dislriitcs.
-['O ;~tliil>taiiy otll~t. CIIIITSC, the LOZII-I ticlcl, "\vriuld pcrmi t LI
for~'igr~ ~)I-L~I-I~IIIC tZI~n'l~asc (ir11~-thc ~UC~IIIICI~~S fax'or;~bl~ to
clrit:IKII-tyntid to i-ct;~iilor ilvstroy thc rc~t" 2nd "might dcfcat
tlie Iitirlnisctsof tlic <l'ratli~ig~vitlzthc Encniy Act by pcr~nittiti~
:i forcbigiii~;itionnlto Iiring siiit in this çoirntr!~tci recovcr prapcrtbv
scizctl ii~i[lci-tlic Act :~nd thcri seck shcltcr undcr the ~rirotcctivc
cluitk of th ,L;OYC~II~IICII~ IV~ICI~ ~~SCOI-CIi- s~ççiught". The Court
ctinclirtli:il 11i;il"cluc ~>r-tic~snr.;oiilclI>eclenfml if n foreigil go~-crrz-
nictit wcrc: tri bc rillo\vcd to frustr:itc thc proccdurcs establishccl
III tlic Coiirts ciltlic Cjnitccl States".
'Hic I'nitcd St~itcsCoiirt rif Al-ipealsfor tlic District of Coluint~in
iiii;~i~iii~oiisln~t'7iriiit:clthi.; clccisioilriricitlie S~ipremc Co~irt of tlic
Ijititi:rli.t;itl:sIiiis rciirsctl tci t'cvicu. ttic cisc fiirtlicr. zzj 1:. ~rl
5-52,j5O I'.S. ():{7.
111 ,li~ri(~rr)gs, ii*lil:itlic Court of ~\lil'ciilsi~ihrtz~cctilic clccisiori
cif tkic 1)isti-ictLtiilrt, it gr:iiitchrlIiitcrl~;indcl still anutlicr estciisiori
of riiiiiatifsis ~ilu~itlis tr~~-ir.otliicrtl:ic rrcords. and tliis estctiçiut~
.iviis lmhoi1gct1 rliirii~g the Siili~-eincGjtirt's consideration rif tlie
mat tcr. 'l'lii:1;istcstcnsi»ii uf tiiiîc cspircd i~iXugiist rg$, ailcl tht.
case tiv\i -;t;iiids disiiiissctl rvitliozit ;iriy clualification.
C'iiiti:il5trites cniirts arc kiinzvr~for their inclcperidcricc ancl
rc;icliricss tri CIO jzistici:;it tlic suit rif nll. rcgardless of n.1iethc.r tlic
siiltcit i~ ;tn alicn cir wlictlicr ~IEU Ciiitcd States Govcrnment is tlic
1);irty ;q;~iirst ivliorti çtiii1pl;iirit is 1,ruught. These corirts Iinvt. a
criiitiriiiiiig 1)t-i:occiipntioiitri iniiintairi tlzr pritzcip1cshotli of ;\me-
ricnti ciiii%(tii~tio1i;iI ];il\- n~itl(if irit~lrnntiio~ial 1;~\v tlznt prol>thrt!.
r~i;i~.110t 111,t;~iit~iir~~n citixtbi~or ali(:tl ~vitli~~iictlt~i~~rnc~ss of l;ijv and that for every taking claimed to be illegal therc must bc n
full remedy.
The course of the proceeclingsin tliis case lins sliown tlie solicitiiclc
of tlie laws and of the courts of the United Statcs for thc riglits of
Interhandel. By Sections 9 (a) ancl 32 of tlic Trading witli tlic.
Enemy Act, Congress has given two rcmedies to any pcrsoii clriiniing
that hc is the owner of vcsted propcrty and tli:lt Iic is not cneniy-
tainted. One is the right to file a claim witli tlic ;icliiiiriistrntivc
authorities. The seconcl remecly, licard de .iiovo by tlic courts
without any prejudicc by a failure in tlic first rcmecly, is tlie riglit
to litigate in court. Interliaiidel has hacl thc beiiefits of botli rcnic-
dies. Both its claim and suit have been disrnissed.
The remedy thus provided by Corigress in thc Trading \vit11tlic
Eneniy Act has becn Iiclcl by tlic Supi-cilie Court ol tlic Viiitccl
Statesto be full and ndequate ancl in compliancc witli tlic:~~riiiçil)lcs
of the Constitution mentioriecl abovc. Sloe11,rv. I,lTrrlklcc ,-55 (;.S.
239. Thc rulcs ciflx-occtlui-cin tlic Unitctl Statcs co~irtc;rcg;irtliiig
clisclosurc of inforinntion arc ni1intcgr;ll p;irtof tlic jutlici;il i-ciiiïtly
aifordcd by tlie Unitcil Statcs, ariclarc iiicompliniicc \vit11tlic staii-
dards of international law for n fair hcnriiig. 1iitcrlr;~iidclIlasrccci\.ctl
due process of law. The claim of Interharidel to tlic sliarcs iii
question lias thus been clefeatecl.
II. The Clairr~of tlzeSwiss Gover?znte?tb
The Claim which is bciiig inade by thc Swiss C;o\~crniiicnt is
stated to be basecl iipoii the Allied-Swiss Accord, signeclnt \\';ishirig-
ton on May 25, 1946, and kiiown as the Washington :\ccord.
' Arbitration or conciliation is rcquested under that .4(:corcl 111-
under thc Trcaty of February 16, 1931.
In respect to the Washington Accord, it hris beeii :isscrtctl by
the Swiss Govcrnnieiit that a decision by tlie Swiss Coiiipciisatioii
Office in 1947, affirmed by the Swiss Autliority of Revicw in 1945,
to the effcct that Interhandel is a Swiss conccrn and not Gcrniaii
owned or controlled, was a decision pursuant to its autliority iintlcr
the Washington Accord of allay 25, 1946, and tlierefore bincling oii
the United Statesto relcase Interhandel nssets locatecl in tlie Uiiitcd
States, under Article IV of the Accorcl. Articlc IV provitlcs t1i;it
"tlie Government of the United States will unblock Çwiss :içscts
in the Unitcd Statcs".
The United States Governn~cnt criiinot ncccpt tliis ;irgunic.nt.
The decisions advertecl to were not uncler the Accorcl biit \\.crc
rather decisions by Swiss tribunals uncler n Swiss clccrcc of 1;cI~ru-
itry 16, 1945. Moreover, even hncl tlic decisions bceii niiiclc iintlcr
the Accord, they \\~ouldneccssarily lirive I-i;iclto be liinitcclii;ilq)li-
cation to Interhnnclei's assets in S\vitzcrlnntl ancl \voultl 1i;ivc: Ii;itliiii i~ff~ct oii tlic (;ciii,r;il tliiiliiicniid Fi1iii s1i;ircssiiice tlicisr c;li;iri:\
,isr propcrty iiit11cLTiiitt:dStatt:~~luit 111 51vitzcrl~k11d 'i.%calitliority
tlic 155 C.oi~liwii~;~tioi~ Ol'lici:a~iclol tl~c :It~thority of ~<CI.IC\\.
iiiirlcr t11c ;\ccot'cl clirliicit ibiicoiiili;ihC;C'TIII;I IISSC'~S 10c;it~doutsidr
5\vilzcrl;iiid, Iriciiigliiii~tccl to hiicli iisscta lncntrcl ii~Sivitzcrl:ii~d.
1,;istly. tII(!o1illg:ltiriii tr) iinblucli iii :Ir.ticlc 1 \' rcfcrs to tllc liftiiiç:
i~fUriitc:cl St;~tcs 'Trt:.iiury cci.~itrulsoii ;idiiiittcrlly S\\-iss ;ïsscts ;~ntl
iicittii tliibclitcsliiig of ~)r'tilwrt)v 'cstcrl by tlic ;\licri l'r~i~icrt!;C~iïto-
cli:t~i;IS (;cri~~:ti~t:ii(:iiiyprrJpct t~, ~~rliiclliicis;iliv~ysbcr11f~illyiindr~--
st clcit tli bc ;t \i-liollpcliffcicnt 1ii;lttcr.
, .
I. 1lic l>rocuctlings I~cforc tlie Sir-iss Co1nliciis;itiori Offictb ;iticl
tlir: .\iitliriritp- 01 Rcvicu \ivre iicit procectlingr; unclcr tIic 11cçcircl
;III(! tliiisc~)III( IIO~ I)L1\1i11cIiii tii tII(: Joiiit Loiii~i~i~sioi~ i~t~~l~li~li~~~l
IIII~SII<III~ti~ I11;iî :lcc(rrtl [fi-011 th(: .lllii~s. Tlic procc~cliiig~it,t,!rth
1>IIIIv ~I5u.i+. 1~:101- ,i~51\k t ri1111ii; ~11 ii S~VIS 11attcr-;I I~I~~cki~i~
itf 1II(~~I-IIIIL,IIIiIy51viw ;t~itli{)riti~-u sti<It:r ;tS\viss {lt;crtbc.
'I.II~>(IC?CI-,I~I 0I1G tl~ 51vish C.OIII~~~~~%;IO ~fIlcIi-~<mtI t~f il~i:
\~kLl~osit>* of lt~b\vivi~ \\vrr 1);tbt:iI {)II Iiiti:r1~~111~l~cli'i~ii~pliiiiit.
'l'liis1-oiiilil;iiiit,\vliicli \\;la i~istitiitccl cvc~ibt:iore tlic \\'asl~i~igtci~i
r\i*~ortlwiis sigiiccl, \i.;is;ig;iiiist ;icloi~icqtic,St~iss blockii~g uf t tit:
;i+\i:t:. of 1iitcrli;iiiclc.l,III Octobt:r ;ilid Noucinbcr 1945, unclcr ;L
h~viss r2r:cscc of l:ebrunr!; 16, rg_tj. It ha5 bceti c1;iirnecitliat tlic
ilccisiiiii of the Swiss :lutliuritg of Keview, irhcil it nffiri-t~cd the
tlrcisio~iol tlic 1csst.rbotly, \va.; onc i~iidcrthc \V;ishiiigtoii Accord,
;iiitliti :'irlil)ort of tIiis it II;I~liccri c1:iiriicd that the solc l-iurposcof
tliï :iiitlicirity of Rc\-ic~v 13 to hciir disputes i~risii-iguriclcr tlic
."\c.coi-tl.I-Ioii-rvcr, liy tlic 51riss clccrcc cif Ilecciiibcr 27, 1946, tlic
\~itIii)rity t~;i> glvcii it~ridictioii m,t:r p11rc1~. 5it.i~~ ~ii:tttcrs,
iiicliitli~ig ;11i1~11;~rlcur~s~lictioii u\-cr tlic dccisiïii~s of tlic S\viss
('{i~rilw~<.itiriO iifhcc in rcspcct of blockings iitidcr tlie Siviçs tlccrctb
iif I;ctirii;i~.y 16, 1945 ~Siiiis,\\,lieri thc =Iiitlioritj~ of Iic~ic\v on
,l;ii~ii,ir?j, I (NS. nlliriiicd thc clcciçioi~ of tlic S~riss Cori~jicnçritioii
I )flicib,it \i-:iiiot ;ictii~griiitlcr tlic :\cctird biit ratlier ;is :in clztirrly
Suis:, Irti(ly cstbi-cisilit:jttrisrliçticiii gr,iiitccl by Siviss Iitw to ,-iffiriii
;I (1i~ï1iioii 11~1 ;~~iotlici.S~vishbocly iiiidcr ;i Swiss la~v-tlic LOdj
Iilocl;i~ig tl(:çrçc.
-1'licrlccisir~ii~li;ikcs thi.i clc;ir-. Tlic titlc of tlir: dccision stntcc;
t11;tttlic 11i;tttcriiii~olvcci,is ~~itcr~~~~~~;c 1]q~1l':1i1igaii~htthe 1945
1,lockirigi. Iii tlic opiriirjit. tlic :\iitharity coiicri-iis ~tself unly witli
\\ 1ii.liibrtlic i;icls \v,iri-;iiit tlic blocking of Iritcr1i;iiidcl iiridcr thc
it)~.ï hlrickiiig dt:cr~:i'.I'urthr,rriitire, tlic jiitlgmcnt is oizly th:it tlic
Si\ i-,.blockiiig is ri.scii~dc~c rictt.ti,ictivc t» tlic date it i\-;isiriipusccl,
0i.tobt:r jr). rljj~ l'liis date ~v;islong bcforc tlic \\iiisIiingtoii :lccord
\vit5 ~iv~oti;i vl, 'Cl~t: LLC~ tliiit tlic ,]oint (;orl~ii~issioiilin(1cr TIV
\l';i.~l~iiigttiii:\cccirrl \v;is iii\,itc(l tn join iii thc 1,rticccclitig ;iiicl
~-i.fiisrh i1)rlo io rjlrlluit i;ri~r-\-crttlii: di:cil;ioiiiiito ;i dccisiniz iiiiclcr
tliib;\ççcirr 1.'1'11 ,iiiiiit(:~irtiiiiissi(?riiii;trleticlc;ir thnt tlic 1ntcrli;iti-
(lthl (:,Is~~1~Io1-ia il IIII(I~T ~IIP ,\ccorïl !\,:is ;L wp;irate III:~rt>rjbtill on its agcnda ancl that the dccision of tlze Aiithorit~: çurilrl Iiavc
no effect on the casc uticler thc Accord. In its lcttcr nf 1)eccrnlii~r10,
1947, declining tlit. invitation as inappropriate iir-idcrthc -+\cçoi-il.
thc Joint Commission said: 1
i
"The case iricliicstiori is still undcr cot~siclçr;ltiuil 1iy tlil.
Joint Cominissiuli iindcr tlie tcrrris of tlic \;TfüshiiigtciiiAcctii-cl
and as yct tlic Coinmisçiori l-ins 110t clisrigrccclwitli an!. dccisiuii
of thc Stviss Comliensatiori Clficc iiiiclthus tlieiAcsucriis Iiri
basis for thc Joint Cotilrnission tcînlqlcnr bcfrirritlic Ccitiiiiiissiiii~
de Recours at this ti~ne as proviclccliri ~trtick 111 of tIic ;\iiil~~x
to the Washington Accord.
A majority of tlic Joint Cornr-riisçiciiirr.oiiltl ~ir-i~lrr 1Zi;t
thc case of 1 .Ci. (31i(i1ii(e11tci-11:iiitlclit:~iost~iiiii~il11)-tlit-
Commissioii rlc Iiccti~irs uritil cu~isidcr;iticiiof tlii:F~I;~L~IT1)).
tlic J oirit Comit~issioii hris I>c;c~~tiricliicIccI.If, Iirl\zri:\lctiI-l.iis
widi canricit Iic gr-ariicd, :L iii;ijur-ituf tl~c Joitit Cr~iniiiis~iiiii
stûtcs that the ~ilipcril1irest:ritctlby tlic :iirii-cii~ctiticitLii-~ii
can, naturülly, have no effect on aiiy ~~rriçccdings,iirirlci-tnkcri
1 l~ursuant tri the \i\'ashingtori Accord, on thc iiintti>r II!. tllc
Joint Con~n~issio~i.''
l
Thc Autliority of Review iti its o~iirrioilrccitcd tlic colitelits of
this letter froni tlic Joint Commission. W'I~iletlic r\utiioi- citlrll
not agree to the ~iostpoi~enient of its dccisiori, it cEidiiot c;iiggc.;t
that its dccision ~vould affect the issue ui~der tlic ~iiçcorrl.It r:itlicr
went on to ~rritc n dctailed opinion clcvoted on13t1 u tlic 1945 5u.i.;~
blocking and tlic dccrcc of Februriry 16, Tgqj.Tlic !\iitliui-it!. 2 ) ~
this opinion rccogiiizcil t1i:it it t~i.;ri~nliing :itlccisioii OII ,iS\t.ih-.
blockirig casc ancl riot oric urîder tlic \Yasliiiigt ci11 :\ccoi-d .'1'ii:
decision, tlicrcforc, c:innot hc corzsidcred tu hiiicl ;tnyonc iinrlrr ilic,
Washington Accord.
2. Moreover, a decision of tlie Autlioritjr of 12cvic1ir uilclci. tlitl
Accord could have no effect on ariy pro~ierty in tlic Unitctl Stiitcc;
such as these sliares, ior the Accord (escept for Article 1Vtlicrcol)
relates only to Gcrnlan property in Switzerlai~cland tlic ;ItItiority
of thc Swiss Autkosity of Revietv il; ris a.consecluencc liiiiitcd to
German property "in Switzerland". This is borne ~itit triythe n-orl-1s
of the Accord, its purpose, the record of thc i~cgotiatioiis ;iiid it.:
construction by the parties.
In the entire history of the negotiatioiis ol tlic M7asIiitigtriil
Accurd there tvaç never n suggestion by ;~nyboclytliat tlie Siris.;
Çompensatioil Oflice, which the Accord providecl woulcl rlc:iI ~i-itli
Germai] assctç iri Switxerland, or the Swisç Autliority of !?ci-ici57
should have any juriçdiction regarding assets, Gerr~~rin or otlicr\visc,
not located in Switzerland. Ncither wris there rtny siiggi:stiori tli;it
either of these bodies slzouId havc any jtirisdictioii itii-li:lttcrs;il-i~iiig
under Article IV of the r-\ccord. 'Tlic iiegotjatioiis \vcrc bet\ï~cciî rcprescntativcs ril the Wiiitcrl
St;itc.;, Unitcd I<ingdorii, nnrl Prn~iccon tlic or~cEiai-iclr,cy-ircscntiiig
.+\llic~lcoiiiitrics ciititleil to seck rcpnratioi~s from Gcriiiari ;~ssctt;
.> S\vitzcrl;tncl, nrid rc1)rcscntntiircs of S~ritzerlnnrl on tllc ot licr.
t 1Iicciinccrri uf ;i11,ils is nl-ioiitto be dc~noiistrntcd, i\~;15orily C;crrii;iii
n ;isscts in Ç~~itzcrl:iiiil. It \\-;isii~tliis coi~ricctiai-ith;it 1iirovisicii- \ias
I/ rn;itlc in Articlc 1 oi thc Accord for tlic f~inctions of the S~ïiss
Coiii])c~~s;ition Ofricc with respcct to C;crirî;~ii nsscts iiîSwitzer1;iiitl.
Xi-ticlc 1\i, tliriiigli iiicliltlecl in ttic Accord, clcnlt ii-itti :i ~iiircly
bilntci-;ilnl;ittcr bct\\.ccii the Uizitcd Cjtritcs:irid Switï.crl;~ncl,~~nrilcly
tlic iiiililcicliirigof S\s,iss asscts iii tlic l;nitctl States. It wrts not
gcaiii-i;liitri tlic sctictirc rclirescnted by tlic rest of thc :\çcord, biit
1
r-c.l:ili~lii ,in c:itii-ïly 5ibli;ii i~inttcr, ;ilid.is rlisciic;srtlscp;ii.;itibly
111'1>\\..
'l'll;!Olil~ ~1:l-l~l;Il~ ;Ih55htlo~;lti~~ \l 5\~11~~~1-1~ {~CIALbtIll~~co1lcl~l~1l
ril t1 1 ti~cgrili:ittirs ;iiitl tlii:ir (~tivcrn~lir~iitsis clc;ir. 'l'lic fiint t\VO
:isticlr*h clc~i~ciiist~itctliih 1iiiiit:ition. 13y :\rticlc I, 1irirngr;il~li 1,
tIII:SI\ iss C'ciiii~>r:~is;itiO ~illcc \v;i~i to iiivcstigatc and liquiclntc
" ~'I-O~NT~J* of c\-c:r?:tlcscrilitic~~iiii S\vitzcrl;irîd oivneri or coiitrtillctl
Ii! ( ~criiinils iii C;crll~;iiig",and Iiv ~irirngrapli 2 thc Gerii1:irzonf~icr::
\\III-(tri 111:indr:riiiiilietl" for tlic pi-operty whicli 11;isbcc tilicliiirkitcd
iil 5~vit~vrl:ind 1iiirc;~i;intto tliis :Lccorcl". Thc "procccils of tlic
Ii<liii,l;iticlicif propcrt?; iii Sn'itzcr1;iiiil of C;crrii:i~lsin Getriiany"
\v(=i.t?tci tjc clivirlctl t,rlii;illj-bct~vccii tlic i\llics and S~vit~crlarid.
.Ilt, 11 (1).
'I'liv:\ccortl tliJ iiot tli.:~l\~.itlitlic title to Gel-iii;iii pruperty in the
1'iiitr'cl5t;itch, ;iltlioiigIi iii:li-ticlc 1 \i it ~iro\.iclcdfor tlic ~iriblocliilig
cil'Si\ iqh ;15sc:t.;iii tlic liiiiicrl Sl;itch. 1ts 5iibji:ct tiiiittcr ;is to titlc
\V,I~ v~~iili~ird tel ~;CI.II~:I1 I~1-eiperty 111 51vitzcr1;11itI.
lil tlic :lçcrirtl, in tlic Anilcs de;iliilg \vitIl ~lrriccdurcs :iiirliri tlic
Iibtcrh siiiiult;rricuiisly c~cli;irigccl,tlierc ;ire rcpcntcd ;itid iiiimcroiis
rvlt-rciircs confiriiiiilg t1i;tt tlir: propcrtjr \iliich is thc subjcct of tlic
.'içcc~rrl is C;crm:iii linilwrty in Stvitzcrl;iiicl. 13.g., p;iges 42, j7,59.
ri0 of tlic 1i1cii;ii-yscssiuns tif tlic 1icguti;~tors.LIlc chicl S\i.is.;iicg{i-
ti,ttcir si;itcrl, "1'011 ;isl; tlic Gcrniari ;wsets i11 Stvitzcrlnnd for
riq~;~ration.;aiitl \\.c ;t>Ii tlic C;crni;iil nçscts in Snlitzcr1;itid for
c.cii.thi-ii;il 1c;nt p;irti;ill\: ciiir ç1;iiiris;ig;tiiist Gcriiinny" (pngcs ($-
05 I Itlic 1ilrii;iry scs.;ioiis).
'l'lic~ire;~iiltiIt:i,Iliiiiiii~:itiiigtlic ciitirc lirirlxjsc ancl scopc ul ilic
.\ccrirtl, olici~s tvitli ~icirds coiiliri~zing thrit tlic outcr liriiits oi
tlic. :kccord ;~rcGcrti~;iii ~~ropcrty iti S\\-it~crl;ii~d. It is snicl tlikit
tlic ~\lli1 r:iii.c"c1:iiriicd titlc to C;crni;iiiprolicrt y in Stt.itzcrlai-iil by
ri>;ihoiiof tlic:c;ipitiilatioi-i of C;crili;iny and thc cscrcisc of silprcItic
iiiitlicirty witliiii C;crni;iiif"' tli;it tlic S~viss Govcrnrncrit \vas
iiri;ililc to i-cçogiiizc this cliiirii biit dcsirccl to cor1tribute Co tlic
rcçcitistriiction of Eurcipc ;~r-idtlint iir tlitse circiiiust;inccç flic
1i;wticc; 1i;itl;irri\.cil :it tlic t-iccord. The Swiss Governinent Ilas itself acted on tlie basis that Gcrii1;in
property riotwjthin Switzerlaild is not \vithiri the Accord, by frceiiig
from restrictions under the Accord suc11Gerinan risscts ris: \\.t.rlb
adininistercd froni Switxcrlünd but iverc rrtitnctu:~lIyIoattcd tIicr.(b,
oii the grouncl thnt "thc Washiilgton Accord çovers onlj~ asseth in
Switzerland' " (Fcuille Fkcléralc, 1949, p. 774-5.)
It rnust be recognized, too, that thc Amcric;~i~iiegntiiiturs iiitlits
Accord were not ;iutliorizecl to i~lakean !lccord wliiçli ~viiirlcl:iiÏi~vt
rights to property in the United Stntcs, eitlicr vcstcd tir suhj~lct to
vcsting as eiicniv property. Vcstcd propcrty is rîcit oiily s~ihj~,c-r
to the powcr of Congress as sucli but is also suhjt'ct iiiiclcr tlit,
Constitutioil ici Congressioi~;ilcor-itrolbecniisc it is ~>srilwrt!. of t1 1 t h
Unitcd States. Tlic di-iposition of sucti ~iropvrt?; w:ts :liitl15 5ol~41.
for Congrcss, which liacl tIien by statutes, sincc rcpcatcd ;r11{1ciiii-
lirrned, expressecl its will as to thc rclcaçc of liroperty tlcciiict2 cncIii!-
property undcr the stat~çlnrclçof T-:riiteclStates 11i\\-.Tticic Ii;it-Lb
been set out aboi-c, in Part 1, thc i~ietliods pcrrnittcd by C'riiigr.c+
for thc relense of propcrty vestccl ;is cricn-iyuiiclcr tlic Tr;ic-Iiii\\itIi
the Enerny Act. Tliese methods wrcrccscliisivc aiicl coultl iiot 1)~.
varied by ncgotiiiturç iti tlic Esecuti\-c 13r:iiicli, wliu :isto ~~~aitli-t
propcrty, wcre bouncl by tlic Constitutiotinl pr~~isitlil tli;~t tiiili-
Co~igressand iiot Ilic Esticiitivc niay dislitisc of liircilicrly til tli~
United Siiltes. The riegotiators nTeretliiil; i~ot;iut.lisrizc.rltu iii;il;~,.
and clid not rn:ikc, any ügreemcnt iiitlic .?record;ificctiiig psirlicit!-
vested in the United States.
Otlicr rnnterinls, \r~liich ~iced iiot riotv lx: spccificrl in dci:iil.
' cunfirm tliat thc AcccircI iras iii tcriiîs rind in its constt-iictioii
liniited to Cerina11 assets in Sivitzérlaild.In its orisiii it \vas iiit~birrl~il
to be so limited. Tlie gctiesis of tflc Accord lies 111tlic I~itcr-tlllic~l
Declnsatio~iof January 5, 194.3, :inci inIicsolutioii VI crltlic i3ri:ttciii
Woods Conference of JuIy 1944. By thesc cleçIaratiuiis tlic rlllic.,
stated their ii~tentioli to urldo acts of luotirig by tlic ci~cziiyaiitl tri
take possession of encriiy asset:, in i~eutrnlcouiitries. 1 iitlie 130tsci;iii
Protocol of August 2, 1g45, it wris agrecil tli:it tlie Allics titlicr tIi:iii
the U.S.S.R. werc in part to sntisfy tlieir rcp;~r;itintis cl;liiiis FI-oril
Gcrn~nn cxternnl asscts iri ncutr:il countrics. Tiic :\llic=cII'oiitr-iil
Council for Ccrmrtiiy was clircctecl to takc coiitrul ;iiicl~ioii-tz01'
dispositiori of Germai1 extcrnal ;isscts "rzot ;ilrc.nclyuiiclrr tlii:cuiiti-(11
of thc Unitcd Natioiis" (I'rirt 11(13) (TH) )1.içcur~ii1iglytl.ir ('o~it~-til
Couiicil cnnçtcd its Lntv No. 5, claiiriii~gtitlc to C;criii;iii cstr:i-ii;il
üsscts. The eflcctu,ition of this law \i7:istlié st;itecl 1iurlmo"cof t l l i b
rit:gotiations, recluestcd by thc Allies, uliicli cu11niii:ilerl iil Ilic
signirig of thc Acçurcl. Tllc Allies alrcncly lii~cltnkcn coiilriil ri\.(,i.
Ccrtn:iil propcrty witliiti thcir oii.ii bortlci-s ;\tictlicrr \vas nt) iiccil
for any liegotiations or For aily Acçorcl ivitli Switzei-l;ind ~vitli
respect to çuch propcrty. Ttiere svas, hou-cvcr, i~ccd for-iiii:\~~lii-rl
which \vould recogiiizc tlic :! 1Iicd riglits tu tlic (;VI-iir;iilirrilii,\*
ii~Stritzcrlniîd. ANNEXES :\1.A HEQL~~~TE (K' Ij) 61
The Paris Keparation Agreement of January 14, 1946, was the
final step in the chai11of international cvents preceding tlie \Yaçhing-
ton Accorcl. Uy Article 6A of the Agreement the signatory ponters
agrecd to retain tlic Gerinan ;issets within tlieir borders. Furtiicr,
they autllorizcd France, tlie United Kingdom arid the United States
to iiegotiate with Sii~itzcrlaridfor thc disposition of Gerinari assets
iri Switzerlancl, and \vit11tlie other neutrals for the dispositiori of
Germai1 asset.;in tliose otlier coulitries. Article CiC provides:
"C;errn:in asçcts iii those çountries ivliicli remaincd neutral
irithc n-;it agi~inst Gcrmany shnll be rernoved £rom Gerri~an
o\viiershi~:,or coritrol iiricl Iiqiiidatcd or dispused of in accor-
daiice ivith the authority of I'raiicc, the United Kingdom ailcl
tlic linited States of Ailierica, pursilant to arrangements
tri I'iciicgotiated \vit11 the ~~eutralsby those countricç. Tlie
nct proceeds of liiluidation or disposition sliall be made
nvailable to the III ter-Allied Iicpriration Agency ..."
It was pursuai-it to tliis authorization tllat the thrce naiiled
potilers riegotiated the \VasIiiiigton Accord with Switzerland ancl in
~\rticle V ol the Accord tlic ricgoti;itiilg powers 11otedthrit thcy
sjgned un bchalf ol the govcrnrnents sigrlatory to the Paris IÇcpa-
ratiori Agrecnient. The limitation or1 the authority of tlie thrce
powcrs bo~iiidtheni to seek only to griiii control of Gerrnari asçcts
iii tlic ricutrrilcuiiiltrics, on ljelialf of flic United Xations wlzo are
ine~~ibersof the Inter-Allied t2ep;itatioii i'igclicy. The tliree potifers
Iincl no aiithority to ~icgotintc witli r~spcct fo :tssets outside
Switzcrlriild.
~~cco~rlin~l~ t,lic pciwcrs rcl~resented in thc It~tcr-Xllied 1Zclxi-
rati~11 i\gciicv 1i;ivc dccliticd to accclit thc Siviss Govcriimct~t's
1xxitiiut-ii11itlic W;ishington Accord. On j anuary 21, 1949, the
Xssc~mbl~o . f t21c Inter-Allied licpnration Agency, cornprisilîg al1
tlic 1~11vc1" st~atory to tlic l';iris Rcpnratioi~ Agreement, liaving
liceil infnrrncclof thc Swiss Govcrni-i-ie~ t'is argtiniciits to thc contntry
dcnicd tlial tlrc ;irg~irncnt Iinclany v:ilirlity. Tlic rcsolution uf tlic
:\ïsc1nlil~-ri:;itlsitipart, as fullo\ss:
,,L()\si i)b:ist; tl~ilt tlir \V;isl~i~igtonAgrccnie~~ t 1s c1c;trl~
liinitcltl ic;çopc trii~p1~1js-olcly ici C;crtizntinsscts 1oc;itctl iii
S\vit~rbi-1;iticI~trid tliliits larigiiagi~ clcinnnst~ites tlirit tli~:
iic'g~)l.ti;iii)o\IrCbrsrccrigiiizt:rit1i;lt thci-c {vas 110 aut Ilririt!-
vi:stctl iii tlicrritri birld Gu\-crni-iiviits Ii'lcinbcrs of tlic 1riti.r-
:\llicrl Kcpni-atioil Agcizcy, iri n \va\- tvliich woulcl nffcct tlic
rcs~)ccti\-crifilitOF iliosrC;ovrr-ni~i~~ t~ 05 er ~SSC~S ~vithi~itlicit
iin iijurisilictiui~;
Co'rsr~~~~~r;i chcreforc tlzat Iliv cIeçisior-1~ of tlic Joi11t
C(~~~î~iii.~~ci;ilniilot IICI~i~ldil~g or Iinve cstratcrritorial eFfcct
ciri ;i.;stlts\ritliitt~rijurisdictio~~ çifGoi'trntncnts 3lcilitlcrs iif
tlli:!g,rc~tlc!r;'"C;\vitzcrlriiiclnour contcncls \vas macle by tlic Accord, \iras thus
bc\.onrl the csccutivc po\vcr as rin ciicroachinent upon tlic Icgis-
Iritivc ~)o\vcrsof Coiigrcss. It coiiltl tlicrcforc not bc macle niicl it
\\:,. iiot ~)iirl)ortctl to-l)c: inaclc.
1lie ol)lig;ition \vliicli \v;isiinclcrtnkcn II!; tlic Liiitccl Statcs uiiclcr
:\rticlc 1\? of tlic i\ccoi-d \\las iiicrcly to lift or rcnio\-c the coiitrols
oii al1 rc.cogiiizcclS\viss prol~crt!; tlicn mriiiitaiiictl II): the Liiitcd
St;itcs 'I'rc~asiiryI:orcign Funds Control uiider Esccuti\~c Ortler
No. S3So. 'l'liat tlic \vliolly clil'fcrcnt set of la\vs ririci proccr.liircs
rilq>licnlrlcto ciicm17~)rol~crt!'uiiclcr tlic Trading \vit11tlie Encmy
Act \GIS iio p:irt of tl~is obligation \vas fully iinclcrstoocl bj~ nll
1)artics nt tlic timc of tlic ncgoti- LIt'ion.
l'li(i rc;isoii for tliis \vas the grcat tlificrcncc bct\vccn frcczing
of f(:]r(:igii1~~1l1csty-l)lockiiig riricl iinblocking-and \,csting of
c-ii(!iiiy~)rol)crt\. SIic foi-cigii fuiicls controls Iiacl as tlicir purlx~sc
tlic I)S(:\X&Itioii of ciiciiiy ;iclv:iiit:ijic fi-oiiiforc:igiio\\:iicd asscts. 'l'licir
iiic-;iiis\vas ;IIIiiiiiiiol>iliz;ilic,iof l)i'ol)erl~~\,vitlioiit aiiy t:ikiiig of
lit]<: or sc:iziirc, :iii(l;i ~)ruliil)ilioii OII cIc:iliiigs \vitIiuut 'l'rcrisiir!;
lice-iisc.. 'l'li(-;ic.liniiiistcriii ;igciicy \vas tlic ~l'rcasur): 1'01-cigii
I;iiiitlc:Coiitrol, :incl tlic nictliotl of tlic rclcasc of tlic coiitrols \\.as
tlit: gi-;iiit vf ;i licc:iisc, citlici- gcncral or sl,cci:il, in tlic cliscrctioii
t.)ftlicaSccrctai-J. of tlic Trc:isui-y.
'I'licsystcin for cnciiiy prol)crty \vas rinothci- tliing ciitircl!;. 11s
INISIM)SC \v:istthc sciziirc of cnciiiy ~>i-opcrtyin thc bcnelicinl iiitcrcst
of tlic Liiitctl Statcs. aiitl ils iiieaiis \vas a vestiiig \\.hicli traiisfcrrccl
titlc to tlic United States. 'fhc atlmiiiistcriiig agcncy \\las tlic -4licii
1-'rol)(:rtyCustocliaii (Izitcr tlic :\tturilcy Gcneral), and the mctliocl
of i-clc;isc\vas :in atlministrati\:c cl;iini bcforc tlic Attorney Gcncrril
:iiitl,if t1i:it \vci-cclcniccl, a silit iii tlie courts under Section 0 (tr)
of tlic 'I'racliiig\vit11tlic Eiicm!; Act.
.l'lie rcco~iiizccl vocnl~ular)~dcscripti\.c of the -Sreasur!; forci~ii
fiincls \vas "block" and "blocking", "freezc" and "freezi~ig", tor
tlic inil~ositioii or csisteiicc of tlic controls, and "iinblock" or
"tlt.frost" for tlicir liftirig or rciiiovnl. Tliiis, ;ixrccincrit to tlic
liftiiix of tlic coiilsols iii\vliat I)ccaiiic i\rticlc 1\? \vas rccliicstccl iii
;i Slviss Icltcr of .4l)ril II, 19-16,askiiig for ail ciid to "frccziiig".
'fo tliis rcqucst tlic cliicf i\iiicricrin negotintor respondccl on April 12
tliat \\lien tlic otlicr issues \ircrc scttlccl, tlic Unitecl Stntcs \\.oiilcl
(lisciiss "~~~C~CCC~LI~C foi- tlic i~nfrccziiig of legitimatc S\viss asscts
in tlic Giiitccl Statcs". Tlic rictiial liftiiig \vrisespresscd iii Article 1 \;
of tlic :\ccorcl as ni1 ol>li;i;~tionto "unblock".
Oii tlic otlicr linntl, the rccognizctl vocabulary npproprintc for
tlic ciicni)~ propcrty program \vas "\rcsting" nncl "clivcsting" of
cnciii!; or Gcriiiaii ~~roperty. Tlic tisc of tlic terni "S\viss assets"
~~rccliiclcc;lln): tliouglit of clivesting, for propert!; \vas \:cstccl oiil!;
\vlicii it \vrisclccmctl to hc cncmy property, and clivesting took ~)lncc
iiot II! cscciiti\:c :ictic-)IIbiit on lii-iclingsin;itlc iiian nclininistrativc
claiiii ~~roccccling or l~ytlic coiirt in n la\vsiiit. The terms "iinblock"and "Swiss assets" werc thus a complctc negatioii of any thouglit
of divesting of enemy assets.
It iç clear that the negotintors for tlie Goveri~ment of Switzerlanrl,
who had grcat experience iii tkese mntters, ui-iderstoocltl~c words
used in the sense iridicatcd above. Tlie rccord of tlic ncgriti-,it'inlis
discloses that the worcls "unfreeze" rtnd "unblock", "blrickiilg"
and "freezing" were used interchangeablu by the Stilissiicçoti;itcirs,
and rrîorcover used to reicr to Trcasury controls.
In an early meeting the chicf negotiator for S~i~itzcrlaiics;iicl
(Meeting of Marc11 18, 1946, p. 29):
"As far as Icgaliy acquircd property whicli canic to us is
concerried, our attitude is idciitical with thnt t;iketi by thc
United States litttie tiinc ol thc ititrodiictioi~ of tlic 'frci:zliig'
aiid wIiicli was dcfined as fullurvs: '\Vc ti;ivc to jircitcct tlliisc
wl~ohnvc faith i~iIlle United Skitcs and ii~vcstc<l tlicii;ish{:t>
lzere'. It ir;strnngc, ii~dcccl,tli;it the Cswiss :ic;scts wliicli Ii;irl
bcen blocked ivitli tliis cnd iiivicw c;iiiiiot iicio. lic si:li~;ic;etl,
preciscly becciuse \\v caiinot 51ool-tio cibscrvc ati:illitiirlc~\i'l~fcli
woiild be the very ricg;ition of tIic Aiilcricnn 111-iiicililc hvliicli
1 have quoted." (Plcnarjr Meeting of hlarcli TS, 194t1,11.29.)
The speaker herc was not only usiiig "blockec~" ;incl "il-ceziiig"
as referring to the United States Treasury Foreign fullcl5 crrntrcils
but he was showirig an intirnate knowledge of thc origins :i11dci-eii
the ratiorlale of tiioçc coi-itrols, inatters which arc iiî ;il1 respect.;
utterly different fronl the prograin fnr the vesting of encilîy liropcrt!,.
Other inçtiirices iil \\?hich the cliief 1îcgoti;itor for S\vitzerl;~iicl
rcpentedly exprcssed Iiiç conccrn, iii the course of thc i~cguti;~tiuiis
for t2ic Accorcl, civer clic blnçkirig anrl frecziiig ci( Si\.iss;i~.;~ts.
using thc xvc~rds interchringe:ibly, arc to be fu~incl:it p;igcs 21, jr),
44, 48, 53 of the record of the plcnary scssions ;incl iti tlic lcttcrs
frotn Minister Stucki of April 17 and 24, 1946. Ilrhcii tlic 11i;tttct
RTaS diçcussed in the Stviss Pnrliamcrit it was so clcar tiirit u~ily
Treasury controls werc bcing liftecl thcit the tot;ils of tlic Slvihs
asçets involved zvercstntcd as rcportccl by n Unitcd Stnt el'Creaçury
publication on the results of its freczing controls. Debates, Nntioiiril-
rat, June 26, 1946,p. 403
Therc likewise war; 11umisunderstni~di~~gon the part of tlic Cilitcrl
States negotiators, wlio çoulc2 not havc sci ignorecl thc ~iruvisirins
OS law çtating ttie cscliisi\rc incails for thc rlivesting or priipcrty
vested as enemy.
The Swiss Governmcilt has long rccogiiizcd t1z;it tlic cili1ig;~tlon
of Article IV to unbloclc Swiss asçctr;was irn~ilcinentcrl ii-cscli:ingcs
of letters between Sccret:~rÿ of thc Trensury Snydci- :inrl 1lic (Sliir:f
of the Feclcral Political Dep;irtmc~-it, hl. Pctit1iit:rt.c. oii K\;rvciii-
ber 22, 1q46, ;iricl betwecii Counçclloi- h-. Rcir11i;lrcl I-Icilll;iiitl
Mr. Jnnies H. Mrt~zii,L:nited St;itcs Trc:isii~-gFZ~~lircsri;iti\-c.titi
Novernber 2j, 1946. Feuille I;édérale, 1949, 776-7. Thc Govcrrimei~t of tlic Unitcc1Çtatcs tiiercfore cantiot iigrcc to
the suggestioil of the Su-iss Governmcilt tliat the said illatter be
rcierrcrl to arbitrntiori undcr the Accorcl, on the grourici tliat tlic
iiiattcr ducs riot ii~volvc ;i disputc frillii-igwithiii tlic obligatioii
ind derthe !\ccorrl to Ii;lvc rccoursc to iirbitr t'011.
As a riiattcr \vliollyrtpnrt froin thc Accord, the SwissGover~in~ei l
:iiso rctlucsts arbitratio~~of "the interests in question", under the
Ti-cnty 01 1;cbrunry 16, 1931. This rcquest would put witliiii tlie
criiiipctrncc of nrbitr;itors tlii: pciivcr to disptise of prolierty witliin
ilic LlriitcrlSt;itcs. ;lu is Iicri: iiivnlvcd. A clisputc involving title
tu siicli prul~erty ih "nt "dgrct tci:lrliitrntioii. Article VI rifthe
'L'i-ib;isyit:ciliciilly~~rorirlcstliitt:
"Tlic ])rovisioi~s E)E11rticIc [tlic ;trhitratioti provisiuii]
slitilrio1 tic i~iriolieriiiiTCS~CC~ of E~II!differcncc tlie çubjcçt
iii;~ltcrof \~liicl~
(o) is \vitliiti Ilic doiiicstic jurisdiction of citiier of tlie
Coiitriicting I1nrtics, ..." (Enlyhnsis sri~ipliccl.)
'Tlic rlccisiori oii \\.Ilnt qiiestions arc nritlziiz tlic dorncstic juris-
clictiriliis, iindcr tht: Ti-caty, lilacle uriilnternliy, by each part!' for
itsclf, n-itlioiit:111~7rcvieii' or cciiitcst 13- othets, who canrzot bc :is
iiilly ;iliprcci;ltivc uf tlic 1i:iturc of tFic don-iestic jurlsdictioiz of a
~);irty :istlirit p:uty itstblf.r\iess:ig~cconceriîing the ratification ol tlie
'l'ri:;ity (JI Pcbl-ii:~r)16, 19:jI , l'cuillc I'i.dErnle, 1931, 1, 1). 961 ;
l'tcil. n.tZVclil~cr~, Ilie .Sc/iierlsL~cvic/ifsrrtri ~~org~eicJc.svcr/r~~ der
C;C~I~PC~:, (~(3.12) I)ic l~l-i~il~~~~-\l~:i3 rt4c,G3; cui111Sitrc 2 Forcig~i
l{clations cif tlic Ijriitcrl StLitcs,1g29, p. 4; J. W. Gariicr, I'lit:Nsia
,Irbilrrilirirc'Ireo~licsof /lie Uiiited Stnl'cs, 23 Ain. Joilri-~ülof Inter-
iiritioilal Law, 595, 598(1929 ;)sce also 2 Oppctiheirn, Iilternational
1,;liil(7th cd. 194S), P. 3r ;ilid note 4.
'Clicclispuçition of titlc to property locnted within a country ii;
iii;~ilifcstIywitliiri tlie tloriicstic jurisdiction of that country utilcss
ilil: criutitry iiivolvcd lias by sovcrcigri nct removcd thc l-t~attcr
frtm its esclusivc cloinc.stic jurisdiction. Ti-le United Statcs Iiris
iitit rcrrlovcclttzc rii;tttcr of tlie o\vncrsliip of these sh:ires in Gcnci-;il
Aiiilinc L%Filiii Corpcirntiri~ifroiii itl; cloii~csticjurisdictiori. Kcitlicr
by tlic \l':lsIiiiigtun Accord Izoraiiy other act hns the Ui-iiteclCjtiitch
çriiisciited that iirzÿ hocl?; otlicr thnn its cuurts sliuuld cleterrriiiic
tlit:(iiiriicrsliipof tlicsc sliarcs. It h;iç given an rii~~plc remedy iriits
courts, iuicl tlzc rcn~cdjr has becn Itilly utilized by I~iterhnndcl.
Pioz\+ to rigrcc tlint ;in??body other tlian the United States courts
;ictiiig uiiricr Unitcd Statcs stntiilcç Ilab jurisdictioii to rtrlcuii the
ïi\r.i-icr.;lii~oif tlie liropcrty Iicre in questioi~, ivoulcl be to o~~erritlc
;~rid ig~orctlic statutes c11ncted II?Congress. TIicscstatutes l-iror-idc
tlicr<x.\-çliisi\mcthod, Fosiiiiiniid çtniidnrds for-thc retiirn of pro- perty vested in thc United Statcs under the Trading with thc Encriiy
Act. Under thc Constitution of tlie United States as notcd :ibovc
the Executjve Usanch canilot disposc of property of tlic LInitctl
Statcs. It cari only be clis~ioserl of by tlic Congrcsç tlzrtiiigli nppru-
priate statutes. It lias already bcen pointed out thiit tlie negoti;itorc;
for the Accord diclnot seek to Iririi-igabout, and did rîclthring about,
such an uiiconsti tutioiili l resuIt. Tliis Govei-nmcnt coriltl iiot ilou.
do what the negotiators wcrc ur?atilc to do ;ilid dicl 11otdri. :lc;.I
conscquencc the United States cleen~s the ow~ier~liip of tlicsc
shares is a rnatter "withiiî tlie dutiicstic jiirisdiction of tlic I:riitr:tl
Statcs" withirî the incaning of thc Treiity, witli thc result ili,il tlic
arbitration provisions of the Treaty iii;iy iiot bc invtlkccl.
The cornrnerzts inarlc above regardirîg thc requcst for arbi triitioii
aIso cornpel the conclusion tliat thc iiitcrests of oiir niut~i;iIr~l~itions
would not bc iurthcrcd by resorting to conciliatioii unclcr tIic rr):{I
Treaty. The processes ofji~vestigatioiî ;ind reliorting by;Iconcilixttiry
group upon the nature of a claiin and its bnsis ivherc thcrc lias bccti
obscurity or lack of cIarity therein, enrtbling thc p~irtics bcttcr 1.0
conipose diffcrences tvhiçh have bec11basml iiyon suc11obsciirity or
lack of clarity, arc of course the csscncc of tlic provisioiis oî tlic
1931 Treaty reIating to conciliation. Iii tlint situation tlic ixirtics
nevertheless retained "tlie right to nct inclependcntly ulioii tlic
subject rnatter" even after the report is ~nndc. 'Tlicinstant crisc,
howevcr, does not rcpresent that kind çifsituatioii. Rlithcr, it is ii
case where thc positioii of the Goverrzmcnt of Switzerlaiicl and its
basis have long beeri fwlly unclerstond and the position of the
Government of the United States of AiricricnIlas been conimiinic:itcd
fully to thc Swiss Govemment. Corisccluently, it is not thc tyyic tif
situation in which there could be anyaclvaritrtgc to bc gaiiied froiii
further investigation and reporting. Furthcrniorc, such proccsscs
could iiot, for the rcasons set frirth abovc, lerid to subseclueiit
arbitration whicli, under the 1931 Treaty, appenrs tu be oiic of thta
objectives of the process of conciliation.
The Swisç Government has 110r set forth ricll~iriifalliizg witlii~i
the scapc of the 1946Accord, and tlic cluéstion of titlc tri thcsh;ires
bcing a rnatter witliin the doinestic j~irisilictioiiof tli~lUiiiterl St;ites,
has becn iinnlly scttlccl by tlie compctcnt coiirts of tlic Uiiitcïl
States in proceeclirigs the propriety of whicli is not rliicstionctl.
Under the circuinst~inces, and in tlic light of tlic coiistitritio~inl
aiid statutory Iirnitntions rcgardiïig dispositioii of propcrty ul tlic
United States referred tu abovc, concjliatioii procecdiiigs criuld riot
achic-\?ethc objcctivcs of thc conciliatioii provisions of tlic uj:gr
Treaty and waulcl neccssarily be unproduçtivc. Thiircfrirc, tlic
requcst for conciliatioii ~nust be rcsl-iectfully ciccIi~icd.
The position of this Governrnciit on this claiin is li;isctl iilion
careiul and rcpeated reexaminatien of thc c1;iini nvcr n peritlrl of
cight ycars. On each occasiuri thc rtintter hns bcen raisccl by tlic
Goriernrnent ui Switzerlaiid, a carcful rccsnminatioiî tiftlic r~iicstiriiilins tnkcri 11l;icc.111cach ii~stai~cetlic co~iç1usiui- \\-as the same. Tliis
Goverilment a~aiii acldrcssed itsclf tn thc problerii, followil~g
~vccipt of tlic i~rilc rifAiigiist g, 195li. ;incl lias coi~cliidctl t1i;it 110
cliringc iii its ~ircviously clcclnrcd ~iusitioii is justificd.
Tlrcrc rciî1;iins fur clisçuçsioi-ithc rcrluest for ~i~airitenailcc of
tlic st;~tiis cliio of tlic assets invol\recl, lieilclin(:nrbitration or ctiiici-
1i;itirii~Tlic iiotc of August o. 1956, suggcsts tliiit prii~cililcsof guud
fiiitll. ~vliicliiiiiclerlic tlic ;~iitliority ciltIic Ir~tern;ttionril Lourt ol
ii>t içcto tiikc ;ip~)rol~si;itclrcc;t~iti(sliarv ineasiircs, requirc tliat
tlii.; (;rii-cr~iliw~itmai~itiiin tlie status cluo WC trike Zhis rcclucst
tci br: ciric tu rcfriiiii from making ;in?; s:ilc of tlie Gencral ritiilirit.
;iiiiIFilni sliilrcs ta \\liidl claiiii isi~i;idc.
'l'lic rcqiicst fur rz~.iiritcii;iriccof the stntuc; cluo fnlls \\-itlitlic
i-t.~\iics;tfur- :irliitt:~tiaii, [or tlic ~-iriilciples;ibo\rc discusscd :ire
i.il~i;ill;~l~l~licabltc o tlic rcrlurst for ~i~;liiitcnnnccof thc .st;itus qilci.
1 iiI lie iiist;~trt c:isc,Iiiorcovcr. tlic rcrliicst fur rnnit~tct~;~i~c c iFtlic
:;t:itii:, (1tio1s111 f;icl ;i r~cli.~cstfor a cli;inge of trie st~tus rliio. To
rcfrciiii Irtiin rri;ikirig ;L s;dc uf thc ~isçcts\~couldlirevcnt thc cflec-
t~i;iiiciiicil tlicInws of tlic I;iiitccl States \\-hich, aiicc tlic Iitigntiuri
iri tlie co~irts rc;~clies ;i ~ii-cscr-ibctsltage, pcrrnit and rec~uirca ~rilc
of tlic ;isscts. A sale is c1c~ir;iblc ii~ thc 11ntiori;ilintcrcçî ril tlic
L-riitctlSiiltcs, b;~scdin Ixirt ~i1~01~co11~'dcrntio onsnntiorial Jefcnse.
Oiily thc criiirts of thc Cnited St:ites hn\-c jurisdiction to st:iy
siicli ii sale uf pr~pert?~ Iric,itcd in tl~c L-riitccl States; suc11juris-
{listion is ho\-crcigii iirirlcscliisi\-e.
I.'.41iil?:iss;irlcrlt: hiiishc 1irFscntc cciniplinieiit~ aii I1cpnt.t~,-
~iit:ii~(\'Et:it t4 ii ~'IIOIIIICL~~ I~C\TII~S sur sa IIO~C (lit 11 j:i~i~,it:r
Iqj7, ;iccoiii~xtg~iCc cl'ii~imCincirnncliliii.conccrnririt l'tiff,iirc rlc 1;i
SoçiCti! iiitcr-1i:ilioii:ilcptiiir 1i;irticipatioiis itidiistrielles ct coninicr-
ci;ilcs 5. :\.,i I3iIc (1iitr:rli;~iidcl).Cctlc iiritc rElioilclait :i iiric riotc*
SIIIS~C~ <I\L (1 ;ioiit I~$I. Id':\~ii~~~~~s~ es~~lc~h:;irgkc par ic Coilhril
ICr!Cr;il clu lirirccr cc <1uisuit ;i In coi~nniçs;ince du L)I.p:irtcriiciit
rl'l31;it,
1.c-Coiiscil l4clbr;tl~)ri:i~c ,içtc avcc s~~gi-eq tue Ir Giitiverr~ernc~~tt
(lt>h i<t<tts-l-~~is;,il~rC\hb?trt*rcft~& :i116gocicr:ivec LI^en viic dt:
rt~cl~t~rcIi~ hi 1111;irr;iti~eii~cntttait pcxsilile. s'olîpose ;i ce cliic Ir litigesoit soumis au Tribunal arbitral institue par l'article V1 dc
l'Accord de Washington ou k unc procedure de conciliation oti
d'arbitrage, telle que !a prévoit le Traite conclu lc 16 fcvricr 1931
entre la Suisse et les Etats-Unis.
11 constate donc que tous lesmoycils dc rksoudrc lc litige orit FtC
épuiséssans succéspar la Suissc.
Dans ces conditions, il ne.reste au Conscil fCdCrald'a~itrc possi-
bilité,en se fondant non seulement sur l'Accord de Washirigton (lu
zg mai zg46mais aussi sur les rEgleçdu Droit international gi.nErri1,
que de saisir du différciid la Cour intcrnatio~~alc de Justice ii I,;I
Haye, dont les deux Gouvernements ont reconiiu la juriclicticiti
obligatoire conformément A l'article36,chiffre 2, de son Statut.
En conséquence,le Conseil fédéral a pris ladécisionde clemandcr
à la Cour de sc prononce: sur le fond du litige et, s~ihçiclinircmt:iit,
sur I'obligatioil pour les btats-Unis de soumcttrc cc litigc soit :1 1:i
juridiction internationale, soit A un arbitrage, soit criccirc iiilc
procedure de conciliation.
Le Gouvernement amkricain paraît avoir clCjripris rli:s rlisliirsi-
tions pour la vente de 75% dcs actions de la rrCienerrilAniliiic;iiirI
Film Corporation 1)appartenant i riItcrhanrlc1 ct scinhlc aivoir
l'intention de procéder à cette vente avant nzêrnccluc Iclitigc ait
été résolu. Aussi le Conseil fédéraldcrnandera-t-il Cgriicnicn t i 1;i
Cour internationale de Justice d'indiquer toutes mesurcs cririçcr-
vatoires en vue de lasauvegarde des droits cl~iiseraicrit kventuellc-
ment reconnus à la Suisse ou ;ises ressortissants et, cn partiçulicr,
il priera la Cour de demander au Goiiverricrnent américain cie ric
pas vendre les actions de la a General Anilinc and Film Cor1)orntiori ri
avant qu'une décision ait étércnduc sur le fond du litigc.
Le Conscil fédéral informele Gouvcrncincnt dcç Gtats-unis qu'il
a désigné commeagent auprés de la Cour iriternationalc dc Juçticc
M. le Professeur Georges Sauscr-Hall et cornnie CO-agcnt M. le
Professeur Paul Guggenheim, tous deux ;iGenEvc, et qu'il lcs ;L
chargés d'adresser
une requ&te introcIuctivc d'instar~cc :~liprEs dc ln Cour iilter-
nationale de Justice.
Application Instituting Proceedings