Preliminary Objections submitted by the Government of the United States of America

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Internxtiow Calurt oJusticeLe présentvolume doitEtrecitçéomme suit:

ttC,P.J. Mirnoires,Aflai~er:"1de~hafideI
(Si~issc. États~fiisd'Améviqfle)a

This volurneshodd be quoteclas:

"1.C.J. Pteada'ngsI~tmhandelCase
(.Swifntog*w..dU~a'ZtiZ es of Amwzeric")

N* de 'rente?
aies numbet 227 INTERHATSDEL CASE *

(SW'LTZERLAND v. UNITED STATES OF AMERICA)

* Mated~ #de. - Le renvoiA u&texteayant fait l'od'uneMitionprovisoire
A l'usagedela Couronf 4tk remplacepar des renvoiaux pages de laprèsente
editian danitive,
* Noje by IhaAegislry.-Arcferences a teb whiehwa issueIn aprorisional
editiunfothe useofthe Court havbeen qlaced by refei'enm to tpagesinlhe
present definitditian. COURINTERNATIONALEDE JWTLCE

MÉMOIRES, PLAIDOIRIES ET DOCUMENTS

AFFAIRE DE L'INTERHANDEL

(SUISSE STATS-UNISDIAW&RIQUE) INTERNATIONAL COUROF JUSTICE

PLEADINGS, ORALARGUMENTS,DOCUMENTS

INTERHANDEL CASE

(ÇWITZERtANu.UNITED STATESOFAMEIUCA)PRINTED THE NETHERLANDS 2- PRELIMINARY 08 JECTLONS SUBMI7TED BY
THE GOWRNMENT OF THE UNITED STATES
OF AMERICA

CQNTENTS
Pagt3
Prelim-inaryObjections . , . . . , , , . . . , . . . . . . . 303
Statement of Basic Factç . . . , , , , . . . . , . . . . , . 304
Statemcnt of theLaw:
FirstPrdiminary Objection . . . , . . . . . . . . . . . 308
Second Preliminary Objection . . . . . . . . . . . . , , 309
Third Preliminary Objection . . . . . . . . . . . . - , . 3x5
Fourth Preliminary Objection . . . . . . . . . . . . . . 3=9

2, 'VestingOrderNo. go?,Febr~xary 15,1943 . . . . .
5. AnnualReportofGeneral Aniline & FilmCorporation
for 1941, . . . . . . . . . . . . . . . . . .
4. AnnualReport ofGeneraZ Aniline &Film Corporation
fm1942. . . . . . . . . . .. , . . , .
5.-huai Reportof hncral Aniline 19Film Corporation
for19431..I...1b...I-..-,.
6.General Order No. 3j,Septemk g,1946 . , , . .
7. Oi1946o,, .u.d,rG...r. . .r,er.N-.. .5. . . .r~. .
8. Letter fmm the Bankers Trust Company to the
Secretarycitlhe TreasiiryFchmary 18, 1942. . .
g, ApplicationforLicensesto transferCornmonB sl~ares
ofGeneral Aniline k Film Corporation tu Inter-
handel, January s,1941 . . . . . , , . . . . .
ro. Aide-memoire ofthe Department of State to the
Mimisterof Switxerlaiid,February r6, 1942. . . .
11, Letter hm the Arnerican I.egatien, Berne, to the
r946s ,e.e. . .oL-t.c. . . . .enT,. . .nu. . .9.
1-2,Letter from the SwissFedczal PoliticaDepartment
tathe Ainericm Legation,Berne, Nsvemher 6,1945
rg. Memorandum of Irving J. Levy, Department of
Justice,May 22,1946 .. . . . . . . . . . . . 14. kttcr fronithe SwissCompensationOfficefo Earry
hhy Jones, Department of Justice, August IO,
1946 ....................
15- Mmoranduni ofhry Chnover, Arnerican Legation,
Berne, Aupst r6,1946 ............
r6, Aide-memoireof theLcgation of Swiherland to the
Department of State,Jme 4, 1947 .......
17, Memorandumof the Department of State to the
LegaSioriof Swi.t*Lerlan,unc18, 1947 .....

18. Aidemernoire ofthe Department O€ State to the
Go~rernment of Swiherland, April 21,1948 . . , .
19, Note ofthe MinisterofSxYit~mland totheDepartment
of State,May 4,rg48 .............
20. Note of the Department of State to thc Chqé
d'Affairesad intt~imofSwitaerland, Jdy 26,1948,
21. Sectiong (a)ofthe Trading with the Enerny Act . .
22. interhandel'scornplaintforreturn ofseized propeirty,
filedOctober 21,1946 .............

23.Answer of the Attorney Gen-1, $Id Jariuq 26.
rg50 ....................
-24. United States Dwlaratian unda Article 36, Para-
graph 2, oftthc Statuteof the InternationalCourt
of JusticeeffectiveAugust26, 1946. ......
25. Declxa'cf~nof theGovernment of Switzerland under
Artide 36,Paragraph 2,of the Statutoefthe Inter-
national Courtof Justice,effectivJuly 28, 1948 -
26. Section 5 Tb)of theTrading with theErierny Act , ,
27, Section 12cfthe Trading with the EnernyAct, . -
28. Washington Accord ofMay 2j, rg46. .. ; ....Preliniinary 0bjectit;ansofthe Governmentof the United States

of America

The Government of the Unritcd States of America herewith,
pursuant toArticle Gz of the Ruleçof the Court,files the following
Reliniinary Objections and prays tkat the Honorable Court,
without entering irito thern~rits,declarethatit has no juriçdictian
in the matter:
Fimi PreJimi~u~y Ob jectUN.-The dispute arme before the date
on which the acceptanc of the Court'scornpuTsury jurisdictionby
the United Statesof Americabecme effective.
I
Secol~d Preliminwy Ob jetien.-In any ment , the dispute arose
before tlie dateon which the acceptanc oef the Court'scompdsory
jurisrlictioby tlieUnited States of America &carne bindining on
this country as regards Sivi.tzerland.
Tiaivd P~eliminary Objection.-Interhandel, the company on
whox behalf the Govmment of Switzerland seeks rmtoration of
the stockin General Aniline & Film Corporation. has not exliaustecl
the local remcdies availablc to it in the United States courts
-
pursuant to the statutesai the United States.
Fm~ik PreLiwimy Ob@tio~,-(n) nie saleordiçposition by the
Governent ofthe United States ofArneriça of the stockinGrnerai
Aniline & Film Corporation, vested as enmy asçetç undw the
United States Trading with the Enemy Act, has been deterrnined
by the United Statesof America,pursuant to paragraph(b) of the
Conditions attached to this country" sacceptanceof the Court's
compulsory jurisdiction,to be a mat ter esçentially within the
domestic jurisdiction of the United States. Accordingly, pursuant
to paragraph (b) of thsaid Conditions the United Statesof Amerira
respectfully declines tosubmit tothe jurisdiction of theCourt the
matter of thesale or disposition of such sharcs, jncludthe paçsing
of good and clear titlc to any perswn or entity. Such deteminaticin
by the United States ofAmerica that the sale or disposition by
the Gavernrnent a£the United Statesof the stockinGeneral Aniline
& Film Corporation iç a matter eçsentiallywithin its domestic
jurisdiction apgliesto al1the issues rakedin the StvissApplication
and Mernorial, including, but not lirnited to, the Swiss-United
States Treaty of Arbitration and Conclliatio-rnof1931 and the
Washington Accordof 1946,

(b) It isreçopized by the principles of internationalZaw that
the war-time sejzureby the United States ofstock in a domestic
corpomtion, and the corrsequ~ntretention of thai stock, ne matters
withinthe B~me~ticjurisdiction of the United St&tes.In the exerciçeofitç powersunder Article36,paragraph 6,of the Statute the Court
should thmefrire deny jurisdiction to acljudicatethe legahty of th
seizure and retention of the General Aniline & Film stock.
In view of the prelirninaryùbje'ctionsfiled herewith, we shallriot

at this time discuss the mwits of the application of the Swiçs
Confederation, For instance, we shall not discuss the contention
of the Government of the Sviss Confederation that the dispute
shouId be submitted to proceedings under the Treaty of Arbitra-
tion and Conciliation of 1931, conçluded between Switzerland aiid
the United States.Nor sl~all we specificallydiscusç Swîtzerland"~
selianceon the Washington Accord which, inthe Biewoftlie United
States, appliesonly taGeman assetsin Swilzerland, not to proper-
ties seized as enerny assets within the jarisdiction ùf any of the
aed Governmentr;. Rather, we shallset forth only those facts
which are indispensable for the consideration of tlie prekminary

objections. 'IVereserve for future staternent,if necessary, a €dl
discussion of the rneritsof the case and n-ïlithen furnish necessav
corrections of the allegatioris made by the Government of Switzer-
land.

STATEMEMT OF BASIC FACTS

By the presmt procecdingsthe Government ofthe Confederation
of Switmrland seeks the restoraiion #ofcertai nharesof stock In
General Aniline & Film Corporation i. General Aniline & Fiim
Corporation is a corporationorganized under the laws ofDeJaware,
one of the States of the United States of Ammica *.Asone oftl~s
country's largest producers ofphotographie equiprnentanclsupplies,

polyvinyl ethers, dyestuffs, textileaufiliaries, and carbonyl iron
powder, hnera.1 Aniline played an important role in national
preparedness efforts prior to WorldWax II, and in the subsequent
was efifforsf the United States 3.-The produçts rnanufactured by
Geperai Aniline are of prime importance not only directly to the
armed .servicesbut indirectly to other essential \var industriesas
1vk21.Under regdations issued pursuant ta the Trading with the
Enemy Act, General Aniline has been designated asa "key corpo-
ration" because of its Importance in fieldsso closely riolateto tlze
defençe economy of the United States 4. I

Applicatiop. rg; Mernorial,p. 143.
3 Sc5Vesting Orderissuedby the United StatesSecretary othe Treasury.
Property ÇustodranonVFabriiarag, rg43,Exhibits r and-z,Appelldixin@,lien
pp.328 and 33n.
See excerptfrom the AnaualReporCsof the compnny for thcyearsrgqr,
1942,and 1943,Fxhitik 3,q anr5, Appendix,infrapp. 331, 335 and 338.
SeeGneral Order No. 35, and Oder No. 3 under Gmeral Qrdm NO. 33,
issuedon September g and October 14, 1946respectivel(8 Code u£Federal
Regulations(1952M.) Secs rjon,ro and 5of;.r3), Exhi6iand 7, Appendix,
infrapp. 340 and 342. The Çovemment of Switzesland on behalf of itsnational,Tnter-
handel, seeks the zestoration of 455,624 cornmon A sliareç and
Z,O~U,OOO cornmon B shares of General Aniline, caastituting well
over 90% of the corporation's outstanding capital stock l..'Foa
very large extent thestock certificates representing the çhares were
ph ysically located intliUnited States 2.
The General Mne stock \vasvest~d bp the UrritedStates,after
investigation, under the Trading with the Enemy Act, as enemy
propwty, i.e. as property omed by or hdd for the benefit of 1G.
Farbenindustsie A. G., ofFmnkfurt, Germany3. The Unitd States
Zhus acquired titleto the stock. Vesting under the Tra&ng with
the Enerny Act is à war measrire of the United States taken, ia
the interestof national defense, as part of this co~ntry's war
potvers and in the exercise ofits sovereipty. The Supserne Court
ofthe.United States in Sfoelzrv- Wallccce,255 U. S.239, at 242
frgzx), thus described the Trading with the Enwny Act:

"The Trading with thc Enerny Act whether taken asoriginally
enactd ...or as since arncnded*..isstrictlya war mcastlre and
finçlsits sanction in the constitutional provisionart. 1sec.8,
cl.11, empo\veing Congresr to declarewar,grarit lettersmarque
and reprisal, and make rulesconccrningcaptiirooland and water.'
Brm~z v. U.S,,8 Çrançh rro,126, 3I,, cd504,510; Mdlswv. U. S,
(P~gav, U, Sm} , r Wall. 268305 20 1;.cd,135, 144.
It iwith parts ofthe act ivhicrelat toecaptures Bn landthat
tve now areconcerncd. They invest the Yresident with extensive
powm respectingthe sequestrationcustody,and dispo5aLof enemy
propery."
ln U~itfidStahs v,ChernicalFoatvdatiotz,272 WïJS- x,9-10 (9261,
the Suprerne Court stated that the purpose ofthe Act

",..was not only to ~veakenedemy countnes by deprivin their
supportersof their properties lMillav Robertson,266 U. !.243,
248)hut alsoto prumote procluctianin the UnitecStatesof things
usefulforthe effectivprosecution ofthe wr".
As indieated above, by the vesting of the General Andine stock
III2942, thisGovemment detemined that Interhandel was a cloak
for 1. G. Farben and that tlie General Aniline stock\vas property
o~ivnedby çr~hdd forthe bene5t of 1.G. Fuben. This view ofthe

United States Govemment was cornmunicated to,the SwissGovem-
ment by a aide-mernoire, dated February 16, IWS (Exhibit 10, ,
Appntllx, infra,p,3453. On the other hmd, the SwissCompensation
Office,an .~trof the SwissGovernment, aiter in~estigatio~ in June
and July r945c ,oncluded that "Interhandel had cornpletdg severed
the tics with 1. G. Farben in1940" (SwisçMernorial, p. 85; Annex

SeeMernorialp.85.
?See Exliibiraiig slrowinthatthestock certificforz,o50.ool31ilia.m
wereSeeYeçting OrdemmarkdtExhibitsTrii3,Appandix,infvapp. 32and33a. 306 P~LZMINARY OBJECTIONS OF U. 5.,4.(VI58)

toMernorial, p. 14gf T.he position of the United States Gavem-
ment, however, r~mained unchanged and ofkiaTs of the United
States 'kepeatedly maintain4 to the Swiss authorities", parti-
cctlarlyin Jdy and. Qctober 1945,and January 1946, that Inter-
handel's "connectian with Farben was stiUrnaintained'"'.
Aftera second supplementary investigation from November r945
to Febnrq 1946,the S*s Compensation Ofiw determinecl that
Interhand elwas not German owned or controlled.Switzerland com-
rnunicated itsviews to representativesof the United States repeat-
edly prïorto August 26, 1946, on atleast five occasions alone in
November 1945 and May and August rgqf~ By letter oNovember

6, 1945, the Swiss Federal Political Department inforxned the
Arrieriçan Legation that "very thorough investigations in Switzer-
land have £ailecito estabfish the actval existence ofa tie behhveen
1.G, Chemle [i.e, Interhandel] and 1. G. Fmben" (Exhibit ~z,
Appen&~, iwfra, p. 347) Also inN6vember 1945, Swiss officials
refused to permit American officersto have acçeçs ta fileat Inter-
handel because "inthe opinion af the SvvissCompensation OfIice,
the German Interest [in Zn-terliandel]cannot beprovecl" (Annex to
Mmorial, pp. r50-151).
On May 21, 1946,representativesof the S~vissGavement met
with officialsofthe United States Department of Jusbce In Wash-
ington, D. Ç, Again the Sivissstated thnt therewas na evidmce cd
any continuing oi,~rnmhip of Interhandel by 1. G. Farben after

1940%Under the impression that the Swiss representatives had
agreed to conduçt in Switzerland ajouit investigationof]Interhandel
with the United States Department of Justice, attorneys ofthat
Dep~rtment met with officiaisof the SxvissCompensation Ofice in
Zurich in Julp ma August 1~6. (Mernorial, p, 86; hnex to
Mernorial, p. 151).Rourever, the Swiss refused to proceed with the
joint investigation. Ina letterofAngust 10, 1946 to the American
repri-seniatives,the Swkç Compensation Officereaffimecl its posi-
tion that "the frrm Interhandel shonlld nlotbe blacked," i, e.,was
not subjsçt to the Svviss'decree of Februasy 16,1945, blochg
Geman assets inSwitzerlmd. Thereafter, an August 16, 1946, a
representative of the Swiss FederakPolitical Department stated to
offtcialsof this Government that after two investigations by the
SIY~S CSompensation Office,Interhandel had becri determined ta bs
Swiss-otvned

Mernorialpp,149-150)Çeeo&o letteorf January rg196,9from theAmerican~
Legation, Bcmo,t.othe Fede~al PolitiDepartmentreaffirming thposition
(Exhibit rr, Appendii#/r-p, 1.
? See mem~randun by Irvin3.hvy, aformermmeriibeof%thUnitedSktcs
Department ofJusticeMay 22,1946{Exhibit rj, Appendiiafrapage3493.
"etter ofthc ÇwisCompensationOfficctaMr.Rnmy L. Jones othcUnited
(Exhibit 14,Appendixapsfrp.350); Memorandum$y Mr.Hamy AConoverafthe
Arnericahpt.ion, BerriAuguat 16) 194(Exhibit 15, i~p.352)-a petition fora writ of certiorafi toreview the orders of the lotver
courts tkismissingits coinplaint. As stated to this Court bjr Mr,
Tewtlsend, CO-agentof the United States of America, inoral argu-
ment on October 12,1957 ,he petition\vas then pending before the
Suprerne Court l. Thereafter, on October 14, 1q57, the Supteme
Court granted Interhandel's petitionZ. The ~u~erne Court heard
mal argument on May n, 1958, and hris the case notv under
advisemen t.

By ifsZijrsPreliminary Objection the Governmentofthe United
States of Amerka. objects to the jurisdictionof this Court on the
groud that the dispute here pmented arose before August 26,
1946, the date onwhich the Dmlamtion of theUnited State sccept -
ing the compulsory jurisdiction of this Court became effectiven.
The :Declarationofthe Unitecl Stateswas lirnitedtodisputes "liere-
zfter arising,"but the present dispute amse between Switzerland
and the United States of Arrierica weIl befarethat date.

As itwassZa2d by Ue Permanent Court of International. Justice
in theMfivromm&is Case, J'udgment (Jurisdictionj,August 30, 1924,
Series A, Mo. 2, atpp. 11-12,
fA'disputeis a disagreenienon a peineof law or $ct, açonflict
of lepl i:icrvor ofinterestshetween trvo persons ...
"..itis truethat the disputwris afirst b~tween privatepmuii
and a State-i.e. hetween M. Bfavrornrnatisand Great firitain.
Si~bseqnently,the Greek Government took up the case.The dispute
thenentered upon a new phase; itentered the domnin of inter-
nationai law, and bccme a dispute betiveen twu States. Hençe-
fonvard therefore itisa dispute which mxy or mxynot fa11under
the jurisdictioofthe PermanentCourt of International Justice,'"
Here, the disagreement caused by the vesting of the slmresof

Gened Aniline & Film Corporation had becorn ae"disputebetween
hvoStates" substantially priortoAugust 26,1946 I.nOUT Statement
~f Facts we have sholvn the early cnnscts of views in the present
case betweeriS. witzerlandand the United States. While the United
States has taken the position, cver ince rgp, that Interhandel was
a cloak for 1. G. Farben of Gemany and that the vested shares

InterharidCase(interim inetmuresorpmteckion), oral poceedings,12,tobcr
1957[SeePart 11, OrPvoc~~dingpp, 456458.1
InterlisndeCase(intertm rneasuïes of protection), Orderof24,3957;
I.C. J.Repoas q57, p. 1v8;see althe Swiss Meinmiap. 9'1.
The tcstofthe UniteStatcsDeclaratiaisseIorthasExh1br.24.Appndix,
P#fr&,p. 370.were property owned byor heldfor the benefitof1. G. Farben, the
SvtrisGnvernmcnt ha Leen the opposiéeview at ieast since the
summer of1945A .s demonstrated above (su$ra, p.3061, that opp-
site view waicornrnunicated by officiaiofthe Swisç ~uvernrnedt
to several representatives of theUnited States Governrnent on at
leastfive occaçions before August 26,1946, nanrely in N0vernbe.r
1945 and inMay and eady August of 1946. The confiicting views
wese exchanged by the twa Governments, acting thrmgl~ repre-
sentatives oftl~eSwiss Federal PoliticaDepartment and the Swiss
Compensation Office, on the one hancl,and representatives of the
United States Deyartment ofState and Departrnmt of Justice, on
the other, bothin officialdiscussions and by officcon-espondence
dealing çpecificdy with theln terhandelcase. Clearlythe exdiange
of these conflictinviews conçtituted aninternational dispute. Sec:
the case of theLegd Slatzts oEaste~nGreenland, P. C.1.J., series
AP, No. 53 (judgment of April5, 1933). p.22, aip. 71, where the
Courtheld that a rnere oralstatement to the representxtive of'a
forcign Goverment is suficientto entinuate the officialview of
the hvernrnent,

The Interhandel controversy, thus, luasa dispute between the
Governments oE Stvitzerland and thc United States of Ammica
before Auguçt 26, 1946 . he consistent expressions oftheir differ-
ences of opinion by the &cial repreçentativeç of the two Govern-
ments made it a "dispute" between the two States, foritis nat
necessary that the conflict be camed on by means of diplmatic
negotiatians.As the Permanent Court of International Justicstated
in the caseofthe Ceman Interesfiix PolrishUpfw Silmia,Judgmcnt
(-furisdiction) Aiigus25, 1925 , ries A,No, 6, aip. 14:
"Now a differencof clpiniandom existas won ncone of the
hvernments concerned points out thatthe attitude adoptcd by
tlic otl-ier crinflictitcown vicws."

,hd in the C~OYZ~Z FacJtory Casa, Judgment (lnter~~etation),
Uecember 16,1927 ,uies A, No. 13, at pp. ro-~r,interprett iheg
term "dispute," the Permanent Court:again stated :
"ln so farasçoncem tlicword 'dispute'the Cmrt obsentcsht,
accordingtothetenor ofArticl60 oftl~eStatute, tlie ~nanifmtation
of theexistenceof the dispute in nspecifmaimer, as forinstance
by clipl~maticncgotiatjo irinstreqiiircdIt wcluldno doubt be
desirrablcthataS tateshoiild noproceal to take asseriousa stcp
as surnmonii~g mothtrr Statc toapyear I-iefotethCourt without
havingpreviously,within seasonahle limitç, endeavoureto nsake
iquite ç1mr that adiferenceofvie- isin question whichhasnot
bocn capable of heing othewise overcorne. But in vicw of the
wording ofthe articlethc Court considcrs thatit çannotrequire
tl~athe disputc should have maifestcd itself inaforma1 way;
accordingto the Court's v,iewit çhoriId he siifficiifthe two
Governmcnts haire infact shonvnthemselvcs as holding olrpwte
t-ietvInrcgard tothcmeming or srope ofajudgmen t of theCourt. PRELTMINARYOBJECTIONS OF U. S. A.(or 58)

The Court inthis respec rekallsthe factthat inits JudgrnentNo. G
(relatingto tlie objection to thejurisdictionraiscd by Polând in
rcgarcl to thapplication made by the Germm Government under
ArticIe23 ofthe Geneva Convention concemimg Upper Silwia),
it expsess~l theopinion that ,he articlein question not rcquiring
preliminary diplornatic nego tiationsas a.condition precede tn
recourse could be iiadtothe Court assoon asoneof the Parfies
cwnsideredthat there was a difierenceof opinion arising out othe
2 interpretatioand applicationofArticles6 to22 oftlieConvention,""
.That the dispute tva a 1egd dispute isof coum, bevond question
since the crucial conscqumces which flowed fr& this dispute
conçerning the awnership and contmi of Interhandel affecteclthe
international legalrights of the United Statesand Switzerland with

respect to the vesteclstock in General Aniline & Film Corporation. 1
'IiVhilin its developmenf over the years new facets were added to
the dispnte,the above-stated di ffermceof opinion between the two
Governmeritç as to the enerny charâcter of Interhandel and the
ownership of the General AniIine stock has aiways been, and still
continues tobe, the essence of the dispute. This is evident frornthe
Swiss Application and the Memo~5a1b ,oth of which are predilicated
upan the broad contention that Intefiandel '"vas not underenemy
cantrol at the time of the entry of the United States of Arnerica
înto the second IVorld War and ...it hùlds almost the totalityof
the shares of the General Aniline and Film Corporation, wKçh is
neither a corponation segistered ina country as enmy ofthe United
States of Americanor under tlie control of a wrpo~ation registered
in an enemgf country but is connected with Interhandel alclne and

controlled by it" (Memo~ial, p. a42 ;see &O Application, pp. 8, g;
mfl the lengthy exposition inthe Mernorialof the Swks contentions
concerning the alleged character of Interliandd and the allegedly ,
non-enmy nature of the vested assetç, pp.79-85, 103-109 121-128,)
It foilows that the legd dispute hme preserited by the Govern-
ment of Switzerland is not vithln the jurisdihon of fhiç Court
because it arose hefore the date onwhichthis country'sacceptmce
of tliecompdsory junsdictrion of the Court became effective.

SecondPreIHminaryObjectim

'By its Second Freljminq Objection the Euverriment of the
United States of America abjects to the iurisdiction of this Court
on the gmunil that, inany event, th diqkte here presented amse

1 Sm also Gug~enheim, Lehrb~ch der: T'odkcmcht(rgsr)VOLII, p. 71j:
"... 'dispute' Isa conflict inwhioh contrary interesparties havefound
thcirexpre.ssionidiffmmcesof opinion betwew Uiem,The parties nced inas
yet haveformnlatedthtirclaims."
The original Ccsrikxtnreadsasfol1on.s"..dasç ein'Strt5nifKonfiiM ist,
heïtenzwlsclien ihnen ihren AusdrufindenDie Streitteile brancheriaber ihre
Anspnieche noch nicht fomiulizuthaben." PRELTIWINAR'Y OBJECTIONS OF U .S.A. (VI58) 3x1

beforethe date un which the acceptariceof the Cowt75compulsoq
jurisdiction by this country becarne binding on this country as
regards Switzerland.
h çhown in aur discussionof the Erst I)r&niiaary Objection
(supra,p.308), theprwent dispute arose beforeAugust26,1946 t,e
date of the United States DmIaration, and only disputes arising
after that date arecuvered by the United States Declaration. But
even ifthe fids therestated were held not to constituta "dispute",
there can be no question that the fùmal exchange of diplumatic
notes between Junc 1947 and Juiy 1948 gave rise to a dispute
before Jdy 28, 1948 ,he effective date of the SwisDeclaration l.
Becauseof the recipracityprincIplc governing the Court'scom-
pulsory jurisdidion (see Hudson, The Permanent Coud of Ifiter-
lzationalJustice,1920-1942 (19431,pp 465-4691the Coart thus lacks
jurisdictionof the present disputç. The general priricipleoi red-
procity was codiiied inArticle 36, par. 2, ofthe Court's Statute
("The statespartiesto thepresent Statute may at any time declare
that they recogniïe as cornpulsory @so factoand without specid

agreement, anrelatim toany othw sdatac~ePtingthe same obligation,
the jurisdictinn of the Court in dl legaldisputes concerning ..."
[Emphasis added]). The principle was specifieclinboth the Uiiited
States and the SbviçsDeclarations açcepting the Court'sjurisdiction,
Both Declarations beieg "inrelation to.any other state acçepting
the same obligation".
The United States Declrirafian, whichwas eflectiveAugust 26,
1946, contained the clause Mting the Court's junsdiction tu
disputes "hereafter arising." while no such qualiiying clause is
contained in the Swiss Declaration wliiçhwas effective July 28,
1948. But the reciprocity principle,we submit, requireç that as
between the United States and StvitxerZandthe Court's jurisdiction
be limitedta disputes =king afterJirlyz8. 1948.
The Court has receatly, in the Case ofCertailzNorwgia* Loam
(Judgrnent ofJuly 6. 1937, I.C.J.Xeflorts1957, p. 9.atpp. q-z4),
reafhmed itç interpretation of the principlof reciprocity:
''In thPrehinary Objections fildby the Norwegian Govesn-
ment itisstated:

'The Nomgian Goverment did not insert any çuchresccr-
vationin iitolvn Declaration. Butit has the rïghto sely upon
thCminçedictthat the dispute which hasbeenbroughtdheforethe
Court bythe Application af jul6th, rgS5,iswithin thdonletic
jurisdiction, the Norwegian Crovernment considers itself fyll
entitIedto reiyon tMçright. Accordingly, irequests theCoairt
todecline, ograunds thatit lacksjurisdictirthefunctionwhich
theFrench Gçivemment would have it assume.'

The textof thSwiçsDeclardionissetforth aExhibi25,Appendix, i~&#ra
P-3714312 PRELIMIATARYOBJECTIONS OF U, S:A. (VI58)

Inconsidering this pround of the Objection the Courtnotes in
-the first plactl-iat thpresent cme has been brought before it on
the hasis of Article 36,paragraph 2,of the Statute and ofthe
comsponding Declarationsofacceptance ofcompulser yjurisdiction;
thatin the prmnt casetlie junsdidio of theCourtdepeiidsupon
tlie Declarafions made by the Parties in accordance with ArtiçIe
36. paraeaph z, of the Statute on condition of reciprocity:and
tliatsincetwoiinfiateraldeclarations areinvolved, such jusiçdiction
is cmfentd upon the Court only to the extcntto whicli the Deçla-
rations coiacidein conferring it.A cornparison hetween the tws
jurisdictiowithin narrowereLLmitsthan thetNorwegiantsDeclaration ;
çonsequentEy, thecornmon willof the Parties,which.i~ tliel~asiof
the Court'çjurisdiction, esiswithinthese mirroiverIimits indiçated
by the French rescrvation. Folloivingin thiç connedion the juris-
prudence of the Permanent Court of International Justice

P, C.1.aJ.,SeriesA!R,No, c74,p.J22;-Ebctrlcity Companyof Sofia8,
and Rulgaria case,Judpent of April4th, 1939 ,.C. .,J.,Series
A@, No. 77,JX 81) theConrt bas reafitmed this method afdefiiiing
the litnitof~tsjurisdictionTIius the tidgrnent of tlzCourt in.the .
A,iz$o-l.~.a~iOi2 Coq5aqzy casestates:

'As the 'hanian Declaration is more limited inscapc than
the United Ihgdorn Dticlaratiori, isthe Iranian Dechation
on which the Court miist base itself.'(1.C. 1.Re$oris 1952,
p-103.)
France Elaslirnitsd~RTacceptance of the compulsorg jurisdictiori
ofthe Court by excluding beforehand disputes 'relatingtomatters
which are essentialiywi thin thcriatitionjurisdiction astinderstood
by the Govemment of the French Repilblic.'. In accordancwith
the condition of reçiprmity towhich acceptanc oethe corhpidsory
jiinsdiction isniade subject in both Declarafions and which is
provideci for in Artide 36, parxgraph 3, of the Stahite,Xorway,
eqiially with France,is ntitled to excqt fram the mmpulsory '
jurkdiction of the Court disputes understoad by Norway to Ix
essentially withinitsnational jurisdiction."

See &O the staternent in the Individual Opinion of President
McBair inthe AfigLo-lrafiianOil Co. case that acountry invaking
the compulsory jurisdiction"must shew that the Declmations of
both States concur in cornprisingthe dispute in quosiion within
their scope" (I.C.J.Reports1952 ,tp. 116).Or, asProfessor Enriques
described it, the two Ueclarations, ta the rxtent of theircomplete
equality ,becomemerged and together consthte an arbitralmod :

'"Sinctheacceptmceunder thecondition ofmciprrocityreprescnts
the tÿ-ita assume anobligation towards anyothct Member or State
acceptingthe samcobligation, itisclearthat thcvarious declarations
of acçeptanc under the condition of reciproclty muçt correspond
exact-, a_reirttrinslçallylinkeand constitute ilsarbitral accord.
The effect of thisaccord isthat every State, acccptitig under the
condition of reciprocity,assumes towarclsmy otber State Ekewise accepting under .the condition of recipracity the obligation to
subrnit certain cùntmt~rsies to the jurisdiction oi the Court."
GiulianoEnrique$, "L'Acceptation, sans réciprocite,de la urldic-
tion obligatoirde laCoiir pcrrnanente de Justice intcmaiionale~',
Ïiev~tde Droii i.~at~rrratiow(3rd serieç, 1932)v~ol,13, p. 534, at
p.846.l

Accordingly, it isthe United States D~laration, more limited
in scope because of its prohibition of rettoactivity, on which, in
the \VOI'~$of the ArgLo-.I~a~ziiz O~zEdeci~ion,"'the Court muse base
itself". If that isdorie, there can be no jurisdiction inthe Court

with respect to the present dispute, even ifit aroscafter Auest 26,
1946 b,ut before JuEv 28, r948. Clthenvise,retroactive effect ~vould
be given to the compulsory jurisdiction of the Court. For iftlie
dispute is consîdered to have arisen between the two corrntries
sometime between August 26, 1946 and July 28, 1948 ,here conld
not haGe been coinpulsoq? jurisdiction a regards the two tuuntries,
no Deciaratioii on the part of Suritzerland accepting cornpulsory

jwisdictiorz then being in effect?.
Ifthe United States had filcdan appihtion against Switxerlmd
with regard to a dispute .\vhichartise after Auguçt 26, 1946, but
&fore July 28, 1948, Switzerlmd, as a respndent, could have
invoked the principle of recipr~city and clairnid that, in the same
way aç the United States iszl~t bond to accept the Court's juris-
diction with respect to disputes arising before its acceptarice,
Swltzerland, too, codd not be required triaccept the Coiirt'sjuns-
diction in rela+ioa to disputes nrising befose its acceptance, It is

simply a rcqnirernent of fairneçs and equaiity that the resultbe the
samehwe tvhere Switzerlandis the applicant and the United States
the resporident .
See dso the Phosphatesm isMorocco rase between France and
Italy (P.C.I J..,Series A/B, No. 47) where appl icakion of the reci-
procity principlc to a Prelirninary Objection based upn ratims
ternporzlwas irrgedby France. Inthat case, the French Dedaration,
effective April 25, 1931 ,ad xccepted the jurisdicbon of the Court
"in any disputes which may arise after the ratification of the present

dedaration with regxrclto situations or facts çubsequent to such
ratification..,",tvhlc the Italian Declaration, effectiveS~ipternber 7,
Thc Frenchtcxtk a~ fdowç:
"Cçi~rnel'acceptat iousconditiondcréciprocisignifilavolontédca'agaget'
Y~S-&-YI<lto11kautreMembre ottIhatqui %cepte lamême obligation,6.cçiair
que leriivededécIarationç d'acceptatsoii~ox~ditideiréciprocitése correspon-
Sent extictementse conjuguentet çanstjtutmua acriorarbilralL'effetdecet
acc~rdestquecliaqueGtat qui acccptsouscrinditlorideréciprocité,asyume 1'0bh-
gation,vis-A-vide tout nutrs Stat qui accepte &alement souscondition de
dciprocit8, dsoumettracertaines contrrwerseInjuridictiadc IaCorrr.'"
nationai Justice, origiiiJly filc25,1921~e'rpireoneApril17,J947.Hudson,-
The P,!?~$rnrrlou8rof T+iferntrfiJecslcca. zgso-2942 (~94p.701. note55,
and p,705. Switzerlandaççeptnnce of the juri~dictimtheInttirnntivnal Court
ofJustice bccamcefiective onon Jlily1% ~945~
-3I4 ~E~NARY OBJECTIONS OF V. S.A.(VI 58)
~931, had recognized the jurisdiction of the Court with regard
tu Iater-ariçing disputes without the additional reqair~mmt that

they be disputer; "~4th regard to situations or facts subsequent to
such ratification".In its Preliminary Objection the French Guvern-
ment urgd, a'ntsah, that because of th6 principle-ofreciprocity
the qudifying clause 'with regard to situationsor facts subsequent
ta such ratification" must qualify the edent of the Court'sjwis-
diction whenthe latter becme operative bettveenthe two countries-
The Court:found it mecasary to passupon this partimlar issue
since it sustained the PreLiminary Objection of France on the I
broader gronmi that the fads leadhg to the dispute had arisen

before Apd 25, 1931, the date of the Frmch ratification,
In presenting the French position, Professor (now Judge)
Basdevant stated:

"La Franc estliéepar laclausede juridictioobligatoire vis-&-vis
de l'Italie A partiseulement du moment où l'Italiest lih elle-
m6me par cett elause pour l'avoirratifiée,c'est-à-d &paertir du
7septembre r93r, date de sa ratifica.tion. Ldeux Puissancessont
liéesl'une-vis-à-visde l'autre à partirde la date la plus rhcente,
le 7 septcnibte 1931, êiIex ued~ LE ecspdcision introd&t~ dans Zn
déclarationfrdnpise, seszalcmeatow lintiier Ikgd deInclmss UMA-
di#&mdsqui s'élèoerm-m ct~szetdessitwtions o.t:mJnifsp~sti:iriew.?
cettedate.
Ainsi, et corne conséqriencede cette limitatio Ic,deiiY
Puissancessont lih l'unevis-à-visdc l'autrà partirdu 7septembre
1931 A l'igard seulement d~ faits post6rieurs à cette date,"l
Phosphatesadin MorwcoPercase,SesiesuC,No.f 8j,epl),1022-roz3;tsee,
alsaSeries C,No. 84,p. 223, d seq.

And in his reply argument Professor Basdovant explained the
justifkation of the French position mort: fuUy, as foflows:

"Dans k dkclaration française d'acceptation de lajuridiction
obligatoire,la clailse dont il s'agit limitcette jiirid~ctianaux
difikrendsnks de situationset de faitspost&rieursA la ratification
de laditeclause. Cette limitation a pour but d'6vi.itertout effet
rétroactif dela juridictionobligatoire,de ne paf; soumettre A la
juridiction obligatoidesfaits qun'y étaientpasço~uniç aumoment
ciàilssesant produits.

J Translation:
"Franmisbnnd by theclauseofobligahry firisdictionCawardItaly mly fmm
momeat whm Italy herseisbound by that cIamon accountofhavins. ratifit,
thst isto say,beginning Sepkember Igjr,thedate ofits ratificatThe.two
pciimrsarebound toonemotlier from the lattrate, Septernb7,rg31,and,by
vbrdwaofthe specificntaunénlvodifi Fvmck derdmwlionwnly &ath8e?Jectof
RmitingO#fkis dg~l&ru#ioIhe iii&veptc8~whi& avisa co~mïsbbdions offaçls
xnThus,eand inçonsequence ofthilimitation, ttwrtpwers are bbuadCoone
another, begmning Septemb7,rg3rr"th regardto factç suhequent ro khakdate."
[Ernphasis aded] Supposoils qu'lm faitsesoit produit le xerseptembre~931 : cette
'date, il n'&aitpe srrumis A la juridiction obligatoire de la Cour
entrela France et l'Italie, pour la bonne raison qu'a cette date
l'Italie n'avait pas encorc ratifladausede juridiction obligatoire,
Si, apr4smtte ~xtification, quse pmduisi t 1c7 septembre 1331l, e
fait se trouvesoumis 3la juridictionobligatoire hlaquelleil dchap-
pi t le rerseptembre, Ikfet rétroactifqu'on a voulu hiter par 1a
d6claration lrançaise SCprodujra." l Series C, No, 135p,. 1290; sec
also Serjeç C, No.84, p, 714-

See dso G. Staedtler, "L'Affairedes Phosphates du Mme (Excep-
tioms Préliminaires), zû Revue de DroitInfermttimal el68 LkgisZatioa

com$~r~~ (1939)l PP. 323 329.
Like the clause inthe French Declaration of April 25, 1931,
Involved inthe Phosphates a* Mormco case,the qualifying dause in
the United States Declarrtion "has the purpose ofavciiding evesy
retroactive effectof theobligatory jwisdiçtion''. Hence, theprinciple
of reciprocity requîres that thc Court pursuaritto Article 36,par, z,
of the Statute deny juridiction of the present dispute.

The Govemment of the United States of ,4merica respectfully
mbrnits that the Court deny jurisdiction of the Application of the
Government of the Confederation of Swjtzerland, for the reason
that Interhandel hcls not exhausted the legd rernedies anilable to
it inthe United States courtsto obtairi fie return oftlie same assets

hvhich are now sought tn be restored in this proceeding,
As çllowh sybya, Interhandel's appeal from the dismissal ofits
suit for return of the assets here inquestion is under advi~ement
by the Suprcme Court of the United States. Should that Court
reverse the order of disnlissal, there would be the possibilltythat
a return may be secured by Interhandel in further proceedings in
the United States cawrts. Accordingly, under the well-crstablished
principle of International law rcquiring the exhaclsiion of local
remedies before aninternational proceeding rnay be instituted, the

Trai~slation:
"'InthcFrench declamtioofacceptace oftheabligabv jurkdlctioü'ieclause
inqli-tionlimitsthis juri~dicttothe disptesanslmg-from sitnntioand facts
sutsequcnt t~the mtihcationof said clause. Tliis limitha the purposa of
avoidingcvq rctroactive effecttheobligabry jusisdictian, ofnoésabjectang
theobligatory jurisdictfoa facts wliich were notstoiintcthemoment whan
tliey originated.
Let ussupposethat atact miginated onSeptemberI,1931;on that datc iwa9
for thegoodoreawn thntbQn thatddateoYL-tlhaduiiotyetratifiethe clause of
obligatorjuri~dictioIf, after thratidcation, whitook placonSeptember 7.
r93r, theh¢t i9suhjected ta the obhgatory jurisdifwmonwhich itwcaped on
September r,the retroactivefiecwhich one tvanted to avoid by the French
declwation, \vil1beproduced."application of the Confederationof Switzerland caÿuiat be enter-
tained by this Court, Judgment of the Permanent Gourtof Inter-
national Justice in thePa~teu~~s-Sald~t RailKays case,Series
AP, No. 76 (Februqy 28,1939 p1p. 4-59As statd in thcPanevexys
case,the doctrine of exhaustion of local rernedies "s-ubordinates the
prescntation of an intemationai clah to suchan. exhaustion"
{SeriesA/B, Na 76, atp. 18);cf.the Judpent ofthe Permanent
Court of International Justice in the Mauromwtis (Juris-
diction},August 30, X924,Series A, No. z, p. 12.
See alsoWackwortli,Bkest of Inter~mtz'ofiLm (19431,Vol. 5,
pp, 501-50 4 ,9;Freeman, Denial of Justice(1938 )p,. 404,408,
412-415 ;Schwarzenberger, Irtt6~natimwlLmei(3rd ed.,19571 V ol. r,
pp. 602 ff;Draft Convention on the 'Taw ofHes@lzsibitityofStates
for Damuge Done i3etheirTLYP~~O o YthePersurt or Prope~Zy of
Form&ws", Artide 6, and Comment to Article 6,23 A.J.I.L. Spec. I
Suppi.149,152-1 'M3islong-standing principle iSoneofthe most
firrny estaMished prinlciples of internationlaw. Çee Vat tel,Ths
Law ofNcitio~s(18631,Book II, Ch. VII,Section 84and Ch. XVIII,
Section 350; F, de Martens, Traidk de Droit Intwnaiional (r883),
Vol. 1, p. 445; PhilIimore, Ca~entavZes lapon Ifiknaationa! Law
(r8551, Vol. II,Part V, Ch. II, Section III, pp,3 ff;.Hall,Inter-
fiafionalLaw (6thcd.,~gog)p. 273 ; Bluntschli,Le Droit Intemtio-
N& Codifié(r8741,Section380 ; CalvoLe Droit I~~ker~afiofl(~8Sgtj),
Vol. IL,Section 864,p. 348 ;Anzilotti, LaRes$onsw&bii! Interflalia-
ltaledes Etattsin R.G.D.I.P., Tome XIII, p. 8 ;fifoore'Digest of
InternationalLaw, V016, p.259 ff; Emchard, Di+itmafic Protection
of (7itiz';asad, pp. 285fi.
Nane of the exceptions to the doctnne of exhanstion of local
remdies appliesto the present case, Clearly, rwrt to the duly-
estabIrshed caurts of the UnitedStatesmains open and çomplete
redress is ava-il~tbto Interharidell.See theY anevezys-Sald~liskis
case, Series AIR,No, 76,at p. 18;Statcments of Jirdge Haçkworth,
the Airnericandelegate, inthe Thircl Cornmiltee ofthe Conference
for the Codification of InternationaLaw, at The Hague, an March
22, 1930 .eague of Nations Dac, No. C. 351 (c).M, 145 (c(1930)~

74-
Nor iç thisa case where, inaccordance with the rulings ofthis
'Çourt, the doctrinofexhaustion of localrernediesmay be inapp1.i-
cable becanse the reliefprayed seeks only a declaratory judgment
of anaiieged tseatyviolation rather thanatlyrestitutioof property
or indemnity. Compare the two decisions of thePermanent Court
of International Justice, bath clealing withthe question of juris-
diction,in the caseof the Ceî.ma~ InteresisTLPolish Up$er SiEesia,
Series -4,No. 6 anclSeries A, Na. g (August25, 1925, and Jdy 26,
igz?) In the formez jridperit,the Court held th& the doctrine of
SesSectirg (aofthe UnitedStatmTrading with khcEnerAct {the text
ofwhich isset forin the ApyendixExhibiZr.infrap.3j9,uuderwhiçhthe
UnitedStatecon~tsargivenspehfiç power to othcrcturofvested propertF. PRELTMINARY OBJECTIONS OP U. S.A. (YI58) 3I7

exhaustibn of local semedies is inapplicable when the onlyselid
sought is a declaratory judgmerit dechring tbat provisions of a
treaty havebeen violated. As the Court expreçsly stated in its
Jucigment on tlie Merits of the firstappxcation (May 25, 1926)
(Permanent Court of International Justice, Series A, No.7. atp. $1).
the first application did not require tlie Court tciindicata what
mensutes on the part of the respsndent Governrnent would have
been in accordance with the treaty provision. Specifically tvith
respect Co the doctrine offailure to exhaust local rernedies, the
Court stated:

'?t isa much disputed question infhe teachingof legalautharitles
and inthe jurisprudence lofthe principal colintrieswhether the
doctrine of lilis~endamce,the object of whicli iç to prevent the
possibility ocenflictingjudgmcnts, caribe invokedin internationai
relations, inthe seme that the judges of one State slicruld,in the
absence oia traty, xefix';to entertainay suitalrcady pending
tofdoeif an actionon tliesarnlisubjectthad atsome previous btime
bmn broughtin due furmbefort: another court:of their owncoiitry.
'l'heisno occasion for theCourt to devotetirne to this discussion
in the present case,because itis clen tliat thessential elements
which constituteIilis$ertrEamare notpresent.There is no question
of two identicaactions the acticin,stpencling bcforethe Germano-
Polish.Rllxed Arbitral Tribunal atFaris seeks the i~stitut-ioto a
private Company of the factoro yfwhicll tlre latter daimstohave
been wrongfully deprivecl; onthe other hand, the Permanent Court
of InternationalJustice isasked togivc ailinterpretatian ocertain
clauscs of the Geneva Convention." (SericsA, No. 6, at p. zo;
see also SeriesC, No, 91, p. 24.)

However, whm thereafter the Germari Govemmerrt,aftei. obtain-
ing a favorabl reling, fileda new application in which it ssugbt
recovery of danages (Series C, No. 13-1, p. xq), the hwt, in
another decision onjwïsdict ion, held that the doctrineof exhaustion
of local remedics IV~Sapplicable in that situation, distingukhing itç
I ~arlicrnrling as follows:
"The questim wliethcr the jurisdiction -of thmc tribunils thc
Upper Silesian Plrl~itral Tribunamd tlze Germano-PolisIiNi xed
Arbitral l'ribirnal] might prevenl the exwcisc of the usisdiction
bestowed ripon the Court byparagrap xof ArticIe 2o ithe Geneva
Convention was bmught up belose the Court during the proceed-
hgs inregard to the jurisdiçtioin thesuit sub~nittedto the Court
by the German Govenimcnt'sAppIication of RIay rjth, 1925.The
Polis1Governrnent indeedsubmitted that thatApplicationcodd ~ot
beentertained nntil the Germano-Polish Mixed Arbitral Tribunal
had ddivmd j udgment. in the case conccrning the same factory
of Chorzbw hrought: by thc Oberschlesische on Nsvernber rotfi,
igaz, before .the Tribunal. Thc PoIish Gowrnrncnt alço argued
that,as it \vas a question of an alleged destniction of vested
rights,the Upper Silesian 'l'ribunalmight have juridiction under
Article 5 oftIre Conventioi-r. %me 01 the reasons for which the Court, in Judgment Na. 6,
overniled this plea that the suit corrld not be entertaind-for
instance the argument relating to the fact that the Parties are not
the sme-might to çome extent be applicable &O In the present
case.12 slamLdhowmiwbe oliservddtkat tizepwitio~ is no$ th same,
mova t~#&dly in zisw of the/ad that dh Germca.n Applicatio.pzof
Mayr$k, xp~, askfidth Colar fof adec!ur#€wy judgrne~t bebwee~
Siaies. wha'coz~lytheCwvdcmld giw, whereas thepreseniA#pticatim
s~e&sa~ iirtdmnitywkich Gs m.otn.ewsoriIy diflerenfrm thut which
the Compami~s vit whss BelettlJiE is cliirn~d, might obtaim fvom
afiotkerbrébl~vd ,ssuming that tliere\iirsne~vhichwascompeterit.
For tliireason,.the Cot~rtwiJ1nùt be content mcrely to refer ta

'fudpmt No.6 and idl oncemore examine the question inrelation
io the spccialconditions inwhich it presents itselon this occasion."
[Emphasis added.1 (Series A, No. g, at pp, 26-27.)
See dso the descriptionby W. E. Beckett, CKefLcgal Adviserof

the British Foreign Ofice, of the fist of the two decisioris as a case
where "Gemany at that tirne did not ask for a decision involving
the payment ofcompensation for the lossessufiued hy the Geman
campariles". ('"Les questions d'intkret gén4ra.Iau point de vue
juridique danslajurisprudence de laCour permanente de Justice
internationale'', 39Xeczteil des Cowrs, rg32, 1,p, 135, at p. 164) l;

and the staternent by Kaufmann ("Règles généralesdu droit de la
paix", 54:Rec~deid Ees Cows, 1935, IV, ât p. 4561, emph&g the
difierence between the two sitirationçand making if clear tbat the
doctrine of exhaustion of local remedies beccameapplicable tvhen
the problem of recovery was htroduced into the case 9. See &o

Vhe French tcxk xeadasfollows:

"..-1'AUeniqneétait en droitde demanderla dmsiofi de la Cour sur cette
la pmsibilitk pou10sparticiiliers intéred'avoirrecaursàfd'aiitretribunaux; '
en vue d'une indemnité.'avait rien faireavec l'applicatiaiemandç ackueIIe,
vu que 1'Allkinapc ne demandait pas ELte moment-iA un amet comportant le
paiement dc compen~atioos pourIesptes subies parlessocir2t&riallcmmdeç".
Translation:

'Gmany %vaswrrect inasking the decisios oftliCod an tliis question in
the fact that interestcd iridividualsresortoother tribuna'lsfor recovery bad
nothing todo ntith the preseintCkrman application since Geratthat kimedld
not 3sk for decisra~nvolvingthepayment of cornpensaticforthc losses suffered
by the Gmnm compariies."
The Frenchtex* readsasfoIlows:

"-4iii.dans T'afiiide I'Usinadg Chovm ka Cour n'a paçcxi@ l'épuisement
lasaisieetlareprise del'usine Btatent cantraauxsprévisionsconventionrielles;ant
mds, s'agissadnela demande en indemnitd,elle a juge nécessaired'examinle
pointds savoir la soctetdCps&iee avait eu3,sadisposition darecom capables
dc luiassuretl'obtentiod'me réparationadéquateet effectiv~."

Translation:
"ï'hui n,theFacdoy aiChqrdm me the Cnvrt has not demandedtheexhaustion
oflocal remdies tecausetherewas a request fodeclaratory jiidgmenputting onSrendent, intm ah, to sell or liquidate such property "inthe
interest ofand for the benefit of the United States". Section rs of
the Act {Exhibit 27,Appendix,infi&,p. 372) requiresthat property
vested under tlie Act "'be sold only to Americanciti.tensS" unless
the President in the publicinterest otherwise determines. Accord-
ingly, the rnanner in zvhichproperties, such as Gemral Aniline, are
to be sold or otl~e*se dispaçed of, isa matter for detemination
solely by the President of the United States. .

(bj In part (b) ofits Fourth Preliminary Objection the Govem-
ment of the United Statcs respectfully submits that the Court, .
in the exerciseof itspowersunder ArticIe 36, par. 6,of the Statute,
should deny itsjutisdic'cion,for thereaçon that acts of seimre and
retention of stock in an American corporation, done in the exercise
of the wax powers,are not matters of international law but rather
are recognized by international law to be within the domestic
jurisdictiun af the United States,
-4smentioned S@YU, p. 305, the stock here inissue was vested
as eziemyproperty under the war powersQI the United States;
Generd Anillneisan Ammicm corporation ;its plants are locatecl
withinthe United States andits products areessentialto the defense
within the United States ad ifs products are essential to the
defense efforts andww-time needs of the United States. The Swiçs
Application and Maorial seek to raise issuesas tu the sejzuîe and
retention of those vested assets. But these matiers are issues
within the domestic jurisdict ion of this çount,yand the municipal
laws andregulatiotrs prcivlding fur the sdzare and retention of
enerny assets are within the sovereign rights of this country and
not subject tciinternational supervision.,
In the Smevezys-Saldutiskk Kaa'Zwc aase the Çod said :
".Lnprînciple,the property rights andthe contractuai righfs of
individuals dependin every Sttîfeonmunicipal law ad faIthere-
foremoreparticularly within thjurisdiction ofmunicipaltribunais,"
(P.Ç.I.J.Reports,Series AJB, No. 76, p. 18.)

The disposition and the çontrol over the shues of a corporation
organized uiider municipal law have almays becn. considered to
be artintegral part of the sovereign rights of a Çtate Thus, for
instance, Field, chscussing the Iegal position of property situated
.vvitk the territorial Limitsof a State under the heading "Local
character of public funds and corpoxate shares" (Art.572)s) tated
as follows :
"Public funds or stocks, and sharcs or other Hnterests in,or
obligation';ofnations or States,or of bodiespoliticor coqmate,
or other artificiabodiesoxving their existence tu local lawsare
governedin respectto the vaiiditand efectoftmnsactions affecting
fhe same, or property therein, bkthat law tvhich Rivesthem ex-
by tlie law of the place where the saredelivered or transfmed.d".
Field, OwtEirssfan lfilmwzdi03aalCode(18761,p. 398. Thisopinion was sharedby Fiore who, discusshg the contentsand
the smpe of the right of imperlm of a soverieign State,ointed
out that this rightisexercised with respectto "things actuallyin
the ten-itciry(Art s48and 291) and thatno legal relation concern-
ing thingslocatedir the terl'itaof theState shdl Is eeld effective
if the resultentails a derogation from the laws of publzc policy
rdating to propertyor from publicmunicipal law (Art,293).Fiore,
InterantionalLaw Codz'fied~~dits LegdSw~zdiom (1918 1,,174 fi.
and 191 ff ,seea3soFeifer, Le DomaAe Rés~vc! (1937 1.117. This
is especidy tnie tvhen such disposition involves shareof stock in

a domestic corporation vested undm a staiute p~oviding for the
war-timcseimre of enmy property.
Fmm the earliest days of the republicthe SupremeCourt of the
United States, under itsinterpretatinn ofinternational law, has
repeatedly held that Congres has the power to authorize the
tconfiscatioof enemy private property on the ouïbreak of ww.
"...Tn deding with thequestion under international law, the
consistent doctrine the Supreme Court has been thatany invio-
Iahility whicrnight be grmted toenemy privatepropertywithin
the juriçdictiowasdue rnerely,asLord ~~~ficld had said, to tlie
Private Property",IIveLawpandIlCmienzporaryPrnBlem 166,ne170

I1945)*
InWare v.ETyZl~fi,Dallas rgg (17961M, r.Justice Chase,speaking
for the Sapreme Court of the United States,Said(at p. 226):
'Tt appears ko me, that every nation at wwarwith another is
jus~able, by the general andstrictlaw of nations,toseize and
confiscatealmavable property ofits enmy (of ankind arnature
whatever) wherever found, rvhetherwithin iterritoryosnot.'"

In BTUWN vv,Uwited States, 8Crmch IIO (r8rgj, Chi& Justice
Marshall,likewisespeakingforthe SupremeCourt, stated(atp.izzj:
"Respecthg the powerof governnrent no doubt is entedainecl.
That war gives tcithesovereignfull xightatale the perçons and
confiscatethe pmperty ofthe enerny wi~erevcrfound, is conceded,
The mitigationrof&s agid rulewhich thehumane andwisepolicy
of modern timw has introduced inio practice,wilmore or less
That remaiasundiminis hed,and whent#easovertgnaauthonty shalltself.
chuse tobrhg it inta opefation, the jadicial department rniist give
effecttoitswdl..,"

Cilhg a host of intemati#nal law authorities, Mr.Justice Stûry,
inB~OWH V. United Sbat~s,s~p.ia, considered "thnile ofthe law
of nations to bel that every such exerciseof authority is lawful,
andrats in thesound discr~tion of the çovereign of th~ nation".
8 Cranch atp, 145.
Various international arbitral tribunal3 havalso heTd that the'
requisitioning of enemy assetsduring the war 3s recognized byinternational law asa matter within the discretionxy power of a
State falling within its domestic juriçdiction in the exescise of the
prillncipleof self-preervation. For exampie, the Greek-Tu~kish
Arbitral Tribunal has held that requisitioningis :

'"..the manifestation of the unilateraIwilaf the authorîtiesexercis-
ing their pokveof employing the resourcw found within thecountry
for ptirpoçeof national defense. It finds sufflcient justificatioin
the necessityçreatcd by theIV-ar,"ec~cildesD&c&ions des3'rihma~x
mixtes,Vol. VIIJ, p, 230,

Professor Cheng, indiscuçsing the principle of self-preservation
as a recogrilsd doctrine of international Saw, makes the follorvlng
comment ;
"Ry concedjng to %tatesthe right of ~quisition and angary,
internati,unallav aUomanation's military needs totake precedcnce
mer private property rights situated in territory subject to its
autl~ority.Apast hm çpecifictreaty ststricti upnsits exercise,

conditionalcupn, and circurnscribeduiby,ithe presence of .suchcmjli-
tq needs. Howthey may best be inet is, ofneçessiy, amattcr to

asAfifitied byIntkunafionalCotirts~and,I'ribw~als(rg53),@p. 43.Law

See also thesiatement by &ofessor Kaufmann conceming the
rjght of a State ta adopt war-time measures, stressing khat thex
rneaciuresare reçognized by international law as domestic rnatters,

in sayuig :
"A war in Our tirnesisaccurnpclnied by eccinowicwar/avc which
5sairned at the destruction of the economic foundations onwhich
the rnilitary, navaland air powers [of thc enemy] am based, and
which isalso aimed tobreak the wiilof national defense, by attacks
directed againstthe economiç forces ofthe civilianpopulation, The
econornic warfarc,wliiçli iç clearly distinpisbedfsoni was as such,
tliuç liasresultein the development ofdistinct, definite and fornial
juridicalforms, nmlely the seizure of the assets, riglits andinterests
6f enerny Individuals,located witliin the national territory and, in
the case ofsuc11scizure, the liquidation of theassets ..The Treaty
of Versailles and other related treaties contain in tl~eiPart X
detailed regulationçoftlieselegd forrns,The regdations haveuplilield
the measuresreIating to tlic seizure andliquidation ofthese assets
and have extendecl their applicationto the periodafter the war ;...'
lCaufrnann ,igles gk~~'raledu d~ndde Lapazx (1g36p 1.,Sg '.

a The original Fznchtext is asfonows:
"La guerre moderne est.accompagnée d'nno pave kmmomiyrce,defin&, non
sedement h dgtruirelabaseéconomique sur laqnelle mpsentlesforces militaires,
maritimes etaermines, maiç aussirompre la volonte ddéfensenationalpar les
attaquesdirigéescontre les forces 6conomiqsc.lapopulatiodcivile. Laguerre
&conorniqueqrii sdistingunettement delaguerre proprcrm~nditea ainsi donn&
la saisie des biens, dctiinteretdes particulie~ ennemisisdansfleterritoire
national, et,casBchéant,lciuliquidation..LeTrait&deVersaillesetlesTraites. The Swlss Application (pp. g, 10,~r) and Mernorial(pp. IOX ff.)
seek to overcome these principles ofinternational law 'byasserting
that a decision by the Swiss Coinpensation Office,afirrned by the
Swiçs Authosity of Reviewin 1948 o the,effect that Interhandel
is a Swiss concern and not German owned or controlled, waç a
deusion under the Washington ~&d of May 25,1946; and that
as a resdt Article IV of the Accord, providing that 'Yhe Govern-
ment of the United States will unblock Stviss assets inthe United
States" ~~quires the Govanment of the United States to release
thev~tedGenemlAnilinestockPocatedInthkW coeuubm iyt.

that simply by citing an ~bviozi~lyinapplicable provision of an
international agreement dealing tvith other matters entirely,the
Stviss Governent camot remove the case fronl the sphere of
domesticjurisdiction.
Thm is noneed here to set forth indetailthe numerous reasons
svhy Article IV of tlie Washington Accord is of no relevânce
whatever in the present case.IR the firstplace, the proceedingsin
Switzerlmd, upon which the Mernorial and Application now rely,
kere not even decisians under the Washington Accord. Rathec,
the proceedings werc purely S.cviss,before a Swiss tribunal on a
Swiss matt er-the blocking of Interhan delby Swiss authoriti es
under the Swiss decreeof Feb- 16, x9455 Moreover, even ifthe
decision of the STY~S Authority of Review wovld have ken wider
the Accord, that decisiaii çtill could have effect on the veste$
General Aniline stock which iç property in the United States, fur
the Acwd (errceptArticle IV tliereof, mentioned i.ibfra)relates

only toGermm groperty in Is\yitzerlar-id and the authority ofthe
Swiss Authority of Review wwasas aconseqtience limited to German
property "inSvujtzerlandJ'This is borne out by the clear language
of the Accord,its stated purpose to deal with the claim oftlie Alies
to "titk taGerman property inSvvitzerlandby nason of the capitu-
lation of Gerrnany and the exercise of supreme authority within
Gerarimfa 2,bythe record of the negotiations of the Accord and by
jtsconstruction by the parties 3.
Finaliy, Evenif the decision af:the Swiss Autl~ority of Review
had been a decision under the Washington Accord, tl~ere wriuld
stiU be noobligation of the United States under ArticleIV ofthe
Washington Accord to return the vestedÇenerd Mine stock.
Article IV of the Accord required tbe United States to "unblock
Swiss assets",which referred rnerely to LiftLngor rerirovllg the

parallèle~rlh11n~t dm ieurXe Partienm rQIementation dEtailde ces
formes: ils anEmaintenu les mesuresaisietLiquidatiopntzs, et prolong4
leur application dapbrioded'apréç-guer..e;
" Foi the futtxtofthe1VdshingtoAccord ofMayM25,~gqG,seeExhibit 28,
Appendix,infrw, p. 3,4.
Forthe detuls see thestatenientlre memorandumofthe Gcvernnrent of
the Unit& States ofAmetka, Jannury rr,tg57, .Anri30 Mernorial [Vide
hnex 1j to Applicatiop.52, atpp,5Q-Fi2J.cùntrols on dl recognized Swiss ptoperty then maintaihed by the
ijnited States Trmsury Foreign Funds Contrd-a matter cleatly
derstaod by al1parties at the lime of the negotiation ofdie
Washington Accord, and thereafter, tu be entrrely different from

the ussti~gof merveyassets bythe Allen Property Custoclîan(Iater
theAttorney Generalj inthe beneficialinter~st the United Statesl.
A snbject-maiter which is witliinthe domestic jurisdiction ofa
country as paft of its war powers does not Jose çuch chmcter
sirnplyby the citationof an international agreement which hm no
relevance and deals with a totally differcntopic*

Whereas the dispute preseritcdto th Court by the SwissAppli-
cation and Memorial arme, before August 26, 1946 ;
Whereas, in any event,the dispute arosebefo~ JuIy 28, 1948;

IVhe~eas Interhandd, whow casethe SwissGovernmmt is~çpouç-
ing, çtill lias available it reniediesin the United Statescourts;
Whereas the United Statesof Amerîca haç deiermined, pursuant
t6 paragaph (b)-of the Conditions atiached to tliiscountry's
acceptanc of thè compulsory jurisclictionof the Court, that the
sale or disposition of thevesteclshares oI Generd AniIine & Film
Corporation hee iliuolved isa matter esseritidlywithin the domes-
tic ~urisdictionofthis country; and -
IVhereas the sehure and retention, in the exerkise of the m
powers, of the stock .inGeneral Aniline & Film Corpliratirin ae
matters '~vhich,under international law, are within the domestic
jurisdictiorof the United Statesof Arnerica;

MAY IT PLEASE THE COURT
30 J~GE ANIJ DECTDE

(x) First Preljmina~y Olfectim
tliatthe is no jurisdiction inthe Court to hcar or determine
the matters raised by the S~vissApplication and Memorial,for
the reason that the dispute arose'befo Arugust ph, 1946, the
date on which the acceptance of the Court's compulsory jziris-
diction by thiçcountry becarne effective;
(a) SecovzdPrelimifia~yOb jèctbon
that there isno jurisdictioninthe court to hear or detemine
the matters taised by the SwrissApplication and Mernorial,for

the remon that the disputearme before July 28,1948 t,e date
outvhich the acceptance ofthe Court's ~onqd~~ry jurisdiction
bv thiscountry .became binding on this country as regards
skitzerland ;
For the detaiseeth^ staternents imemoraridnrnofthe UnitedStateç,
Jailiia~rr, 1957Arinex30 toMernorial Widd r\nrie.taApplicittip,,52,
at pp.61-66]. themattersiraisedrbythe Swiss ApplicationoandrMernorial,ifur
thereason that Interhandel, whoçe case Switzerlandisespous-
ing, hàsnot exhausted the local reinedies availabto itinthe
United Statescourts ;

(a)that there isno jurisdiçtlonin thisCourt to hear orde-
termineany issuesraiçedby the S~vissApplicationor Memonai
conçerningthe saleordispositionofthe vested sharesofGeneml
AnilZne-& Film Corporation (includingthe passingof good and
clmr title fo any person or entity)for the reason that such
sale-ordisposition has ken deteminecl 'by theUnited States

attachedtr,thiscountry"ogcceptanch of tliCourt'sjurisdiction,
to be a matter essentially withinthe domestic jurisdictionof
thiscountry; and

(b] that there isno juisdiction inthis Court to hear or
detemine any issues raiseby the Swiss ApplicationorMmo-
riaconcerning the seiznre and retentioof the vested sharesof
General Aniline & Film Corporation,forthe reason Wiat such
seizur'and rtention are,açcardingtointernational Iatmatters
within thedomestic jurisdictionofthe United States.
The United States-of Arneric-areservesthe right tu supplement
orto amend the precadingsubmisçians, and, gmmally, to subnait
any furthm legai argument.
Resgec tfulIy submited .
Lumus BECKER,
Agent ofthe United States afAmerica,
The Legal Adviser,Deparment of State.

DALLA S,TOJNSEND,
Co-agentof the United States ofAmmica,
Assistant Attorney General,Department ofJustice.

STAXLE DY.METZGER E sQ.,
Assistant figd Adviser,
Department ofState.

PROFESSO SIRDNEY B. JAÇOBY,
GeorgetownUnivemty Law Schrxil,
1Vashingtm, D. C.

Attmney , Department of Justice, The undersigned,~ibarçador ofthe United Statesof Am~rica
to The Netherlands, hereby certifies the authentofthe above
signature ofLoftus Becker,Agent, and DallasS. Tawnsend, Co-
agent, of the UniteStatesof America.

The Hague, Junc 19~8.

(Signet?PHKIP YOUNG,
Ambassadm of the United Statesof Amenca. 1

APPENDXX TO W. S. PREL.OBJECTIONS (EXH. ?)

Appen dix

Exhibit 1

VEWING ORDER PURSUAN TO SECTION 5 (b) OF THE TRADI W ITGA
THE ENEMV ,CT, AS AMENDED
1,~~NTIY.MORGBNT JrIASec,retaryaitheTreasury, acting under
and hy vlrtueof theauthority vestedin me by the President pursuant
to section 5 (b) of the ofOctober 6,19~7 as,arnmded by section3ox
ofthe First Ww Powers Act, 3941,finding afterinvestigationthatthe
follriwing shaseofthe stockofthe GeneralAniline& Film Corporatiori,
a.corporationorganixd under the laws of the State ofDdatvare, are
the pmperty of nationaisofa foreign çouniq dcsignated inExecutive
Oder No, 8389, as amended, asdefined thesein,and tl-iathe action I
l~ereitaken isinthe public interestdo hereby order and declarthat
sach shares tncluding aiiinteresttherein are hereby vested in the
Secretar~ ofthe Iresury to be held, used, adrninistered, iiquidated,
çold or btherwise deal&th in the interest ofand for theIxnefit of
the United States: 1

Number of Class
sbres Registered themarriof

GoheiniraPrùfcswr DrCas1Bosch,
Geheimrat Profe~sDr. CarBQSC~,
LudwigshafenGcrrnmy*
Ckheimsat Dr. Hermann Schmiitz,
BerlinGerrnany.
Geheinirat 13r.Hermann Siihrnitz,
Bcrlin, Getmany.

IntmationakG~enschaftfür Che-
) mische UnOernehmungenAMien-
/ geseiischaBasel,Switzerhdd. Cefixate Humber of Clofs Kcgisterein thename af
aumbm shares shareî

ogqS ..... ro,ooo
0574 . - - - 5,om
0575 " . . - . S,OW
0576 ..... 5,oQo A Internationale Gesellsehaft fur Che-
0577 - . . - . 5,000 1 mische UfiternehmurgerlAktien-
0578 - . . . 5 gesellscht,Basel, Switeerland.
0j80 ......a . ~,OOO
o58r ..... 1,000 A
0582 ..... 350 ,9 I
BBI~. .... 650,000 R L. D. Picke ring & Cornpanyin
cnstody for N.V, Msabchappij
vbotIndustrie onWdelsbelangei~,
Amterdam, The Netherlands.
32 ...... Ioe+,abo '.V Maatschappij voor Industene
34........ rm,ooooo B ThedNetherlmds., Arristcrdam,
1CliemoBI~v~batschavjsrChemische
1 .... ~00,000 " Ondernemhgcn , Amsterdam,
20.,,-.. 20û.000 B 1 The Netherlarrdç.
4.*.-. .. 500,1100 3 ' Banque FEd érnle (Eidgm6ssiçche
, Bank, A.C.), Ziitica, Switzerland.

accauntpmpendingnfurthexdctcmination ofthef sSecretaq ofldtheaLreasury.
This shall not be deerned to limit the power of the Secretary of the
Treasury toxehirn such property or the procesd thereof, or toindicate
that compensation will not he paid inlieuthereof,ifand .when il:çhould
be determinecl that such retum or compensation should be made.
Any person riotanational ofa doreign colintrydec;ignateàinExecuti~te
Order No. 8389, as mended, asserting any interestin said shares of
stock 'orany party asserting any claim as a resultof thisOrdermsy frle
with the Secretary of the ~reaiury a notice of his clkirn, togcZkrr ith
a requcçt for hearing thereon, on Form TFVP-r within one year of the
date of this Order, or withisuc11fusther time as may be allowed by the
Sccretaq of the Treasury.
This Orda shall lx pulllishid'inthe Federd Regist er.
By direction of the President:Re: C~rtkin capit-alstockand other interestsin.General Aniline & Film
Çorporat ion.
Under the authori-tofthe Trading with the Enmy Act, as amended,
and Executive Order No- 9095 a,sammded, and pursuant to law, the
undersigned, after investigation:
(a)Findiizg that I.G.Parbeninduskie, A.G., whose lmt known
.-sxddress was reprcented to the undersiigned.asbeing Frankfurt,
Germamy,is a nation. of a designitedenemy country (Gerrnany);
(b) Finding that the çharésof stock (constitutinga substmtiai
part, namc2. appmximately 97% of al1 outstanding shares) of
General An~line & Film Corporation, aDelaware carporation, which
is abusiness enterprisewithin the UnitedStates, which sharcswere
ctivered by vesting erderissued by the Seaetary of the 'freasury
under date of Febmâr~f 16, 1942~and lvhichare descinbedtherein,
and whch ne thereafter ttestehy the undersigncd pursuant to
Vesting Order 3%. j of April24,rg42 ,nd delivered ta therinder-
signed by the Secretâryof the Treasury,wme, priorto such vesting
thereof by the Secretary ofthe Treasuq, owned hy orheld for the
bcnefit of saidI.G. Farbenindustrie, A.G.;
(c)Finding, tlzcrefore,thatsaidbusiness enterpriseisa national
-of a designated enemy country (Gerrnany);

(d) Finding that16,186 çhares (other thantlie sharesreferredt*
to Vesting Order humber 753 ofvesScptember 19,1942)~of ClassuanA
cmmon stock ofsaid businessentcrprise xe owned byor held for
the benefit of mtionalsofdesignated enemy countries (Japan and
Gemany), the names in which snch shares are regktered and tlie
names and lastknown addressesof the persons fowhom suçh shares
are hcld and the riumber of shares held for each,are respectively
set farth inExliibit A attached liereto and made a part hereof;'

intwests intlie aforesaidbusiness enterprise Iieldbynationais of
designateclenerny countries (Japan .andsGerma~y} ;

(1)Having made al1deteminations and taken ail action, after
appropriatecmsultation ad certification, reqiriby said Execu-
tive Oder of Act or otherwke ; and

hereby veskçin the Alim Properky Çustodian the shares ofstock and
ûther jnterests described Insubparagraphs (d) ,,. to he held, usd, ,
adrninistered, liquidated, soor otherwke dealt with inthe interestof
and for the benefitof the United States. APPENDLX TO U. S.PREL.OB JECITONS (EXET.3)
331
Siich propertyand anyoral1of theprweeds thereof shaBbe BeId in
a specialaccount pending further determination ofthe Mien Property
Custoclian.This shall not be deemed ZQ limit thepowersof the APien
Property Çustodian to returnsuch property or the procesds thercof, or
tcliridicate thacompensation willnot be paid in lieuthcreof, if and
when it should bedeterminen that such seturnshoulclbe inade orçuch
compensation shouldbe pnid,
Any person,except anational ofx designatedenemv country, assert-
ing any claim arisingas a reçultof this order may file witk thAlien
Property Custocliana notice ofhis daim, togethet witha reqtlest foa
hearing thermn, on Form APC-z, tvithin oneyearfrom the date hereor,
within suchfurthertirneasmay be ailowed by the Alien Property Çus-
tadian. Nothingherein contained shabedeemed toconstitute anadrnis-
sion of the existencevalidityor rightto allowance ofany such claim.
The teims "national", "'designrtd enmy country" aiid "business
enterprisewithinthe United States" asused herein shall have.tmean-
ings preçcribedinSection Io of said ExecutiveOrder.
Executed at TnPashingtciD,.C, onFebruary rg,1943.

(Siped) Eeo T. Crowley,
LEOT, Crcow~~ir.

230 ParkAvenue, NewYorkCity
OPERATLKGDIVISIONS
GEh'ER9L ANJLINE WORHS, NEW YORK CTTY

AGFA MÇCO, BINGHAMTON, N.Y.
OZALID PROQUGTS, JOHNSON CITY, 3i.P.

John G. Baragwmath Tdin E. Maçk

Walter H. Bennett CharlesL. McCann
'IVilliaC. Breed D. A. ScEimitz"
Ralph Budd Robert L. Stevens
W. C.Btillitt Nelson S. Talbott
R. Hutz Hugli S.'CViIliamson

John E, fiiack,President
F. A.Gil-ibons,Smretary
, H, S.WiUimson, Trcrasurer

Suspendedbyordmof thc UnitedStatesreasuryDepartment. APPENDIX TQ U,S. PREL. OBJECTIONS (~33. 3) 333

essentialforthe war,The dficiilties of obtàining rmaterials ta have
a direct haring on the volume of production. Rising wagt rates and
increased cost of materials will have an adverse effect on coçt of
production,

RELATIO NIST'XuTSH GOVER~WENT
The beginning of r941 saw renewed &forts onthe part of thle corpo-
ration'sdirectors tohave I.G. Chernieseli itstock Zn the Companyto
Amcrican investors. Tliese effortfaifed. During thistimc, the cosyo-
ration kept the Governrnent informed of its actions md niade every
effortto co-operate with the annoui~cedpolicies of thecountry.
Dtiringrg41 a nimber of changes toolr,place inthe management of.
the corporation. Subseqiientt~ the removal of Mr,D. A. Schmitz as
p~Mdent by action of the Board of Directors and an Oct. 31, 1941,
Mr. JolinE. Mack vvaselected president.SeveralAmencan directors of
Gman birtli resigned in the Fall ofthe pea~ tomake room forthe
electian of directorof national standing.
Since June 18, 1941,y~ur wrporation has been operating undw a
business license issuehy the United States TreasuryDepartment under
autfiorityof Executive Ordcr 8369, as Amended.On Februaq 16, rg42,
the Secretary of the Treasury, underan Exeçutive Order delepting the
authority of th2 Yresident ofthe United States under the Tradingwith
the Enemy Act, dkected the transfer to hirnselfon the books of thc
corporation of a11shares of stock reestered in the nme of cestain
foreign nationals, wkiclsiiaresconstitute appmxirnately 97% of the ,
outstaziding sharesof thecorporation. This transfcr\;zs duly made,
The plaopss madeby thecorporationduring the thirtcen years oits
existence speaksfor itself. This achievementwas made possible by the
great loyalty, skiand enthusiasrn of our employees. Everyone inow
oganization is doinhiç full shartoconhibute to asuccessfnlconclusion
ofthe war, On behalf of theBoard ofDircctars, 1 wish to expressmy
dm13appreriation.
JazzfiE. MACH P~wddsd-
NEW YORK ,,Y ,
Febv.iiav27* r94z.
# . , . * 4 . . " . # . . . . i . * ,.m .. t S . . .

GEMERAL ANILTW WOAKS IlWlSEOM

This division is compriscd of two modem plants, one located at
R~çsclacr, N,??., on the East bank OF the Hudson, opposite Albany,
- hnving an areaof oves ga acresand çonsistirig of 27 builclings;tother
occupiesa plot of~05 acres atLinden, N.J,,and consistsof 46buildings,
These plants,cmplloying about 2,500 people, are principaUyengaged in
thepmdziction ofa romplete linê ofdyestuffsand intermediates, which
aresuitable for&ost every purpose friw'hichdyestues are used.
- The di~sion'ç products are grincipaUy usedintextiles,leather gciods,
paper,pain t andplastics.Of major importance arethe Vat Colorswhich
provide the fastesdycs obtainible for cotton,rayon and linen.Equally
important areAcid AfizarincColors,the best ofthe waoldyestuffs, also
Naphtoi-;and their dcrivatjvesused prirnarrilforprintinpcotton goods. KPPENDIX TO U. S. PREL. OBJECTIONS (EXXI.3)
334
General Aniline Works dm mmufactures textile auxiliary products
which are vsed inthe dyeing and finishing processes. Among these is
Igepon , soap substituite; Tanigan, a superiûrtanning açslstaïtt;
E-rnulphors,Jargelyused in thesubber trade; Nekal, a wetting agent ;
and Ramx~litand Ramasol, lagely usedfor water-proofmg fabrics.
Extensive researchlabontories ernploy scoreofchemiçtsoccupiedin
irnproving and diversifying the products rnanufactureRcsearch inthe
field ofvinylçompounds has been centinued and satisfactory progress
has ben madewith polyvin ethers to bensed asivaxes,adhesives and
{vater-rqdent agents.
At presmt over60% ofthe production ofGcneralAniline Works goes
into defcalswork. Thecompany is the largestproducerin the country
of kllakrand 0th- dyes used for wiifirrms andother materialsof the
armed forces,
During theyear GeneralAniline Worh emcted at itsLinden plant a
consistingentirelyofminuteauniform lspheresof anonionuskinrstmcture
wliich, whenused in cores ioutstanding inthe high frequency range of
radio receptian antransmission and igreatly superiortoothermaterial
used forthispurpose. The capacityof tlris unis subçtantiallinexcess
of the presen gaveniment requirements for allbranchesaf the.armed
forces.

AGPA ARSGO DIVISION

The story of the AgfaAm Division jsalrnost sgnmymous ivith the
bistoryaf pficitogaphg intheUnited States.Now situated at Binghamn-
ton, N.Y,, thisorganizaiiorihad its beglnning in 1842 when Edward
Anthony estahlishedin NEWYork City the firçtphotographiesupply
house in this coizritry.Todamore than 3,300 workers ara employed h
more tlian 56 buildingswhich include ona ofthe ~vorld'most rnoclern
film manufacturing plants.
Agfa Ansco manufactures a cmpl~te lhe ofphotopaphic materiaEs
incluciingcameras, Mms, paprs, chernicalsand mmy 0th- items of
eqilipment. Operatio are casriedoutby highly skilled technicians and
a standard of cleanlirieand precision is maintained that resulinthe
high quality and uniformity of Agfa Ansco productç.
The division takespride in the Xeceoftwo a~vardsfromthe Academy
of Motion Picture ArtsLnd Sciences, The first, i1936, was for the
developnicnt ofAgfa kslnscInfra-Red Film, whilethe second, in 1938,
cited the performanceof tw~ fastpanchromatic hs-Supreme and
Ultra-Speed.
Also noteworthy was theperfectionin 1937 of hgfa Ansco Supe an
weresthed to fourtirnefaterethmesany previaus light-sensitimaterid.
Taday, photography has becorne extrernely important in modern
warfareancl.agrowingportionof thc productionofAgfaAnscosensitized
materials is devotcdtothis purpose. In addition, many ofthemachines
in the Cameraplant, normaFIyusedfor civilianproduction, are Seing
turned mer tothe production of non-photographie warmateriais.
War production, thm, is Agfa Ansto's çIiiefpre-occupation as it
celebrates it100th arlniversa-ry: The OzalidProduc tsDivision,organizedinK2 33,asOzalidCorporation,
Mich.,aandOakland,onCal.3t rnanufactnresOzalidwhiteprint md develop-it,
ing machines, and in itscoating depadment sensitizes thepapers,foils,
tracing cloth and other materials used in thesemachines. The Ozalid
reproduction process, zinlike blue printing, gielda positive print in
black, bliieor maroon line upon a white background.The processing,
considerahh easier thmlosblue pdnts,isdone inspecialOzalidmaclllnes
whir,EdI,cvdoped over thelast few years,have revolutionized thindus-
try. The largest machines, preponderantly uçed by the United States
Government,the aircraft alid the automotive industry, permit there-
production of drawings at a spwd up to 20ft.per minute.
The abilityof OzaIid yapcr 20 reproduce bue to scde has made it
particulav rluable to manttfactwen of prccision instruments. Army,
Navy and war industriesare extensiveuscrs ofQtalid products.
The Division" U~riaphmeDepartment .bashem conc~rned wjth the
developnient ofa new type of sound reccirdiogon tbin cellophane and
reproduction by meam sf a bem af light and a photo-electriccell.This
proceçs is low incost,permits an extremely long playing time from a
small spool and results iriafideiityof sound hith&n unknown.
The department has alm çlcvclopcdspeçialOzaphane an forduplicat-
ing microfdrnnegatives aswell asamachine for printing anddeveloping
tlzisfilmItisthe anly process ccimmetciailyavailablefor dircctdupli-
cation of microfilm,
Commercial applicationhas begun on a rn processfor reproducing
microscopie prints onpaper, anclthe dcmand has temprarily exceeded
the available capacityFi~rthennorc thedepartment recently produced
aphatographic proçess for the reproductionof reticules onopticaglass.
Itis expected that application otliisproccss will be of reavalue for
military and naval purposes.

General Aniline 8rFilm Corporationwas forrnerlyone of theprincipal
foreign operationof theGerman cliemical trust knownas1.G.Fxrben-
industrie.The Company's products were alrnost eniirely developments
of research carrjedon in Gerrnany and the key to its operation and
ptogress was held by Gerrnans, who determined what it rnanufactirred
and sold, It içnow conbulled by the United States Goverment as a
resultof the vesting of stocformerlv foreign-held, hy the HrrnLeo T.
Crawle y,Alieit PropertyCustodian of theUnited States.
On Mmch r4, 1942, the management ofthe Company was entrusted
to anew Board ofDirectors. Thisisthe firsanniial reporofthat Board.
On Apxil 7, rgq, the Hon. Henry Jforgcntliau,Secretar of the
Treastiry of the t'nited States, add-Iesçed a Icttcr* approved by
?W. Crawley, to thenesv Prtsidentof the Company descrjbing the basic
poljcy hy which the Directors shoulhe governed,This letter Çtatethat
b 336 .APPEND~X TO U. S,P'REL. OBJECTIONS @XH, 4)

fhose chosen to manage the Campmÿ should restdf the organization
with ctirnyetentAmericans and, after its Americrtnization, apply the
Company's activities andfadlities to the fullestextent to the waz
effort, opraiting it inaiiways in accordarice -4th soiindArnerican
businessmethedç. The Directors we~ealso adviçed by Rlr C.rtlwlethat
itwas the Govemment's policy that the Company should rieverretnrnto
German ownerskip, &mm cùntrol of ciper~tions Gennan influence,
The Board af Direciors of theCompany has endeavored to nianage its
&airs inconformity witli these instructions and with the intercrjts of
the stockholdes as a rvhole.
Prior io April 7,1942, govemnzent agencies cauwd the dismissalor
suspm~sion of a suhstantialnumber of,the important ernyloyees of the
Company, including many ofitsprincipaexecntives,engincers,çhemists
and kcvoperators,Thusthe Board took over theCompany sheared not
oniy of itstraditionalsource ofrescarc ahnd.direction, butalsoof its
executivepersonnel.l'hcr!rwasno time totrain successorsand therefore
. itwas necessary tofil1the vacant positionsfrom the outside, The re-
placement of theseindividirals with menofthepropertechnical abilities
and experience dunng a war periad, when the normal scarcity ofhigh
calibrcpersonnelis accentuated, beçame themost difficultundertaking
,with whiçh the Board was faced.
izationofgthe Companyrchmlebeen sucmsçfuli completed. the American-
Ttvice-once inrgr7 and again in rgqr-t his country has hwtz thruçt
into a World IVar partIy depetident on its enmies for many strategic
materialsdeveloped from researçh. Insome cases,by fortuitouscircum-
stances and the ent rise of Amencan industry, th% country had
managed to getfromzrman sources possession opatents and know-
how relatingtovital chemical processes and products.
The Board considirred that this Company sfiotiMnever again bave
to depend upon sources within Gemany os any otlrer foreigcountq
fur the tcchnical knowldge necesçary foif tosupply such basicmiliary
products as its plants couldhe adapted te manufacture, Tberefore, it
became obvious to thenew Board that inarderfor the Company to serve
effectively inthewar effost and beofmost valueto the gouernment, or
to survive after thwas initshighly technical andcornpetitive field, it
would be neeessary frirthe Conipany to create in mthiscountryan inte-
grater desenrcliand clevelopment orgâtiizatioof at least equd calibre
to tliat of the German cliemical trust on wlliclithe Company had
heretofore depended. Accordingly,the Board dccidedtbat the Company
must establishaneffectiveresearch orgânization,yroperly equipped and
staffed,ço that with the necessary protection of an effective patent
system, itcould futfiitsobligationsta the stackhciIderandtlie piihlic,
Steps tdcen to fdfili these obligatioare described on page 3.
The periodof transition i1942 has neceçsarily beena trylag one for
management and ernpIoyees alike. To the loyalty and efforts of more
thm 6,ooo men and worncn' who comprise the Company's o-rgariization
shodd gofull creditfor such sucçessas theCornpan y lias enjoyedinthe
past year.
PR~DUCTIO'N AND TITI?WAK EFFORT

The new mairagrnent faced a double:difficiiltat *listart PtTotnly
wa~ ifriecessaryfora ncw 5t& to take overa goingmncern of acornpli-mted technicalnatureand keep jtup tothe furmer staiizlmckOFoperation,
but the cfiange had tolx made at a tirnekvlienitwas necessary for the
Lompmy, like many otlicr 19merican companies, to convert from a
pace-time to a var-tiine footing. The pcriod of re-sta.finc~incided
ahost cxactly with the period of canvetsion.
Despi te these complications, the task of converting the Coniliany's
activitiesto war channeEs has be~n accomplishedand all-timc high
production records forthe Companyhave been setduring the past tlirctr
rnontl~sin four ouf of fiveof its plants.
Tlie dptuffs md chernicaloperations of theCompany havebeenma-
teriallyirnproved duringthe yearl'h1 e~rnccss.Devdopmcnt Department,
organixeedin tl~clatter partof the year, has already madc substa~rtial
irnprovemeiitciin qttalityhas inmeased productive effir.iencyand has
devised rnetl-iodsfrecoveringcritical spentmaterials previritiwa3ted.
Lapacity to produce certai dyestuffxand chernicalspartiqulclrlneeded
for the wareffort has been increrssemare than 80% over prcvioas peak
output. The required capital expenùitiires were relntivc rliior and
jnvolved cinly srnall amounts of critical materids. While sales osuch
prodircts are at a new high, dernad has not yet equallcd the ncwly
demunstrated cayacity.
Restrîctioi-on the useof numerous dyestuffs for civilianprposcs as
weil as on the manufacture of certain textiles have adversely affected
sdm.
The Gornpmyhas contmcted to sel1to the !VarDepartment itsentire
ontput ofa çeitain cllemical pr~dnctfor conversion into an important
explosive, Large quantitiesof otherspecial chernicalirsedby the Army
and the Navy are dw king furnished. The Company's facilities forlie
productbn of Carbony ran Potvder, a product of strat egicimportance,
have becn operatecl to capacîty and recently have hecn çubstantially
increascd. Under contract with the \Var Dep;trtmmt, the Company fias
designcd a standby plant and has trained a group of Army ofiiccrs in
the opcratio-n of the procw. The Company has also fabricated inIts
own shops a suhstmtid quantity of apparatus for the Government's
new plant.
The plants engage8 in the production of dyesh~-EE snd chctmicds
inçludr:extensive macliiric shopfalnlities for ordreuairçand mainte-
nance. Tlirouçh closecoopehtion witli the ticld o&ce of the War
Froductlon Board these facilitiesnorrnallyidleabout sixteen hourspet
day,havelxen uscd ta relieve battlenecksintlic production oa variety
of partsrequired 11yother rvarindustries irthe locality.
O~ring tu the increased demmd for photographic and X-my film on
the partofthe armcd services,theWar 'f3roductioBoa-rd hasestabllshed
rigid controovw the production and distributionoffilm proçlucts. The
Çonipny has exerted every efforto make availnhlethe Jargest pmsiblc
quantity ofphotographic materials with existing plant andequipn~en t,
Production of filmproducts in xgq W~S greater than in any previor-is
year and the cnrrent rate of production is Iiighethan atany tirne in
thepast. ~ÇCO Colorfilm was introclucedthroirghsales to the govem-
ment and certain war industries,Salcs ofse~lçitlzedmaterials to the
gavernmei~t have bwn at prices substrintially below normallevds.
'l'hCamera Wotkç was converted during the year tothe manufacture
of speciawaryroduds, in grcat part non-photopphic and largelv new
tothe Company. The dollar valnc ofthe products cmently requlting from thesenew operations isnearly.double the value of the lzgest
previouç peace-time output- In attaining production on such new
products,heavy expenses were inmred which wcre not rxovered eut
of 1942 sales.
Total output ofOzalid productsin'rg4 was greatlyinmmss of that
of the preceding year, SizbstantialdE the Ozalid machines produced
- by the Company cvererequiredto meet the needsof the government and
ofhers holding high priorjty ratings.
Your Government has directed the Cornpan ta a ply its activities
and faciljtietotriefullesestentto tliewar eXart.1fis hasbeen done.

By ordsrof theRuard of Directors,

To THE ST~~~~o~~ :~~~
General Aniline & Fi1111 Corporationis mmqd by a Board of
Directors nominatecl by the Alien Property Çustodian of the United
States and elected by the Stockholders, The Companmas formerly one
01the principalforeignopmations ofthe.Cerman ChernicalTrust known
as I.G.Farbenindustrie.Ln Februziry-rgp cclntroof the fareigowned
stock was seizedhy the Ui~itedStatesGovemment. Title to 9047% of
the Cornmon A Stock and to ailofthe Cornmon B Stock ren~ainsvesteil
inThe policyofothe BoardofDirectors, iccrnformitgwith thedirectives
of theCustodlan, istooperate the Company as a cornpletely Arnerican
organizatii onraccordance uith ço~indbusiness methods, applying its
activitieand facilitiestthe fulleesxfcnt tothe aidoi theu7arcffort,
iindlooking formci toits continuecl operatioasan Xmerican awned
and controlted eterprise,

The Company" production js camiedon hy thne Divisions: the
General Anilinc 'CVorksDivision,the Ansco Division (formerly Agfa
Ansco), ad the OzalidPrnducts Division,
The GeneralAniline MTork s ivisiornani~dacturepsrîmafilydyestuffç
and auxiliârieused in çonnectionwiththe dyeing processand ffiother
purposeS.It isone of theprinci~iaproducers nf thetypes of dyestufis
required for rnilita uryifornls and cquipment. hductian of such
dyestufls in5943 was increased more tham 60% o~cr 1942 and more
than 120% over 1941.
Auxiliariesmandaçt ured by tlie General Aniline IVorksDivision
includesyntheticdetcrgcnts,theproduc~onoftvhichbaçbeenlargelyandcfor specirssaapq'effectivinfseawafer. Forces formobile laundries
This Division also manufactures carbonjd &on powder, which isuscçl
prhcipdly for the productionof cores forradio equipment requird by
the ArmedForces; and PoIeçtron resins, usedin substitutesfor mica,
wliiçhhave caabld the Amen Forces to obtain animportant new typc
of electricacquipment.
The Ansco Division manufatst~~xe fih and other photograpliic pro-
ducts, and until August 1942 produced cameras for civiliantraile. The
Canlera Plant Is noivdevoted substantially rooy0 to war prodt~cts,the
output ofwhich wasmort than quadrupied In1943 over rge. Production
of filmin 1943 increased,about 18% over rg42 and larger Government
requirernents forfilmproducts were met by reducing*tlieamount amil-
alde ta the civilian market.
The Ozalid Frodacts Division is engased in the sensitiung ofpsper
md cel3uIoseacctatc filmsfor thcrepraduçtion ofdrawings and printed
or typed copy, and in the nianufactureof machines for tlieir expmiire
and dev~toprnent.Output of sensithed materiah, &ter an increaçc of
Sryo in1-49over 1941 ,ho\ved afur-theexpansion of 177&in 194. 3vcr
1942.
ARMY-NAVY @

the hmy-Navys ofEhefor"great accornplishmentainthe productionawofwar
equipment". Appropnuteceremanies will be hcld at Binghamt~n and
Jolinscin City, New York onM.arch27.

The 194% Annual Report discumd the nced for, and establishment
of,tlx new Rewch Division,Tliercsearch staff fi&en ~pproximately
doulded during the past yearand the personnelof the Market Develop-
ment and Patent DepY-tsncnts bas bcen Increased.
The major efforts of tlie tesearcstaff are devotedto strengthenlng
theCompany'spositionin itsestahbshed linesofdymtuffs,intermediates,
pbotographicmataiais and Ozalid l>mductç, all ofwhich are essential
tothe ArmedServices. Close attcntionisalso being givento the oppor-
turzltipresented for expansion ino more diversifiedand rapidly grow-
in$ chernical fields. Reseaand deoelopment have dready yielded new
poducts valuable tothe war effort wl~ichhold interesting possibilities
forpeace-time ilpplicatiofiAddifional products are In the pilotplant.
stage and still others arebeinwtively. stucliecl.

The Companyis the orner of more than 4,000patents and patent
appIiivationin chernicaland other fieldsThe Board of Directors has
secogriizethe responsibilityimposed by ownership of these patents as
weil as the necessity of continuingreçearch in American industry to
f~irther tsuccessfulpmsecution of thewar.Accordinglyit has expanded
its researchprogram to develop these patents and hm adopted arid
prirs~~cdhe followlngpatent Iicensiiipolicy:
All patent holdings areavailable for licensingfor war liequlrements
upunrequest ofthe proper Government autho-rity. Patent rights inthaçe fields in which ttieCompany js not actualIy
engaged areavailable for licensing omasanable tcms and rayailticto
rcsponsibleandcapable interests to thc end fI~atthe most effective Lise
may be maclethereof in the'varieclpliasesof wat production,
Patent rightsin tliose fieinswhich the Company isactuallgengaged
are aho availablcfor licensingforthe duration of the \varon reasonable
terans and royalties,to responsible and capable licensees when the
Company iç imable tosupply the products itmanufaçtmes mder such
patents insufficie~itqliantititomset the dmnds forwar use or vitaly
war-connected use, or whcn itis sr,requested by propex.Government
authorilcy.
The scsea~cll labom mies andarganizationhavc bwn establishedand
arc operating with these ends in view.

By ordcr of the ~oariof Directors,

$503-9 (Gozernt Ordw No. 35)

Under the awthoritgof theTrading with the Enerny Act,asamended,
including witliout firnitatiob section5 (b) and xz thereaf, Execu tive
Orders Na. gagj, as amended, and No, 9142 . nd pursuant to la~v!the
undmigned, dete-rmining
That in many instances slmrm ofstock .i nloniestiçorpurations
which had been 17estedby the Afien Propcrty Custdian as enemy
owaed orcontrolled at the time ofthe First World War, and were
subseclriently s01by him Ivere,at the Zime of the Smnd SYùrlcl
\Var, found to have conle under enem y unmership or control a3 a
scçdt of mena sdes or tmnsferi:;md
Tliatsuçh ownership and controlwere detrimental tothe national
defense and tended to impeclethe war effortof the United States;
and
That inthe case of corporationsclosely related to the defensc:
economyof tl-iUnitcd Statesthe pnblicintereçtrequiresthat athers
than Ari~eri c ~mdonals be prevented, sulxeqrientto the vcçting
and sale by the Alien Pqerty Cusfodian to Amencan Nationals
ofshaes ofstock in saidcorporations, from acquising ownaç2l.ipor
çontrol therea; and
That itis necessary inthe lmblicinterest thatthe Atien'Prriperty
Lustoiliari, uposaleof vested stock insuch curporations toArneri-
cm Nationals, place ccrtain restrictionupon the resde thereof or
the trader olany interesttherein, in ordertù prediadesubsequent
acquisitiunof oct-nershiy or coi-iil-iercIiyothers thm An~erican
Nationals;Iierebyissires the foUowingrcgulafion:

5503. 9eg~dajiolm~ric~ctin he ~drans/erO/ skaresO/ stockelested
alzdsoldhy tJtAiie~Prafiwby CusLodinn
(a) The lUien Propetttv Çustaclian designate from be to time by
order isçiiedpursuant ta thisregulation certainco romtiom subject to
his supervision, jurisdiction andcontrol, which are of imputtance in
fiel& dosely related to the defense economy ofthe United States.
C,arporationsso desipated arcliereinafter re-tenedto as "key corpo-
ration~.~'
@) The term '"vestestock''as risedittliiregulation shd tedmmed
to mean shares ofstock in key corporatiùrzvtçted by the Aïirn Property
Ctiçtodianand herenfter sold by the Mien Proper ty Custodianand shall
alsoincludc mv shares ismed in excllange forvested stock orissucdby
way of stock dividend "iliereonçirsplit-irp thereoor shareç acquircci
pursuant to any rights os warrantsaccruing to the holdws of vesteci
stock notruitlistandingany recapitdization, consolidation, rncrger or
~eclassfication.

Tc) Only American fitionals shall bequalificdto Ixcome omnersor
llolders, dircctorilidirectly, bymesne cnnryep.cincerotherwis~~ of.any
interest invested stock.
"American National" $hall mean: (1)the United States,any statc or
territory thercof, as well aany politicalsnbdivisioriagency or imtrii-
mcntality of the United States osZtny such date or territq, (2)czny
partnership org,mi~d and having itssiprincipaleplaceof business(inmthe
United Statesor a territorythereof, 75% of the rnernbers ofwhich are
citizen3of and resident in the United States who own at least a75%
interestin thepartnerd~ip, and (4)any corporation,association or other
organizati ornganiz edder the laws ofthe Unitd States or any state:
or territory thereofand havlrigits principalplace ofI~~sincssthereiri,
75% ofthe voting stock of which isowned or hcld for the bcnefit of
Amencan IcTationals, and ivhich corpuratiori,association orotl~crsuch
orgnnizationis tlocoritrolied byemns othcr than American Nationals ;
pmvided, I~OWHI~tPh;at individuas, partners hips, corporationassocia-
tions or organizations ~vhich have been determined by thc Alien
Propcrty Cilstoclimto be acting fororon behalfofa national of Gerrnang:
or Japail,alid persons who, 1. arder ofthe Alien Propmty Custodian
issuecipt~rsuatn hereto, are determined not to be qualifiedto own or
Iiold vesttd stock>sha'Inot be demed Amerkafi Natîonals fur purpose
of this regulatioi~,irrespectoivwelictlier they wouldothenvise qualify
iiilder suhparapaphs CI }z,, (3or (43hereof; and pro~iideslz~rihshat
ai~yindividual,partncrship, corporation, -associationororganisation act-
ing, fioldingor purpiTing tr> art or hold.dkectly or hdirect.l!rfor or
on behalf of orfor the bencfit of anyco~intry,inclividrral,partnersbip,
corporation, assqciatini~ or organi~~tion which is not m American
National shaFinoZ be deemed anAmcrican National for purposcsof this
regdation.

(h) The provisionsof this regdation and of Ordesr;issued piirsuant
thereto shallcontinue in efect unt ilreçcincledorsupelseded, notwitli-standingtheend of thepresent wa62the end of thepresen:meeençy
or the termination of supervisofthe corpuration affected.
(40Stat.4x1,50 U,S,C. App.1;55 Stat..8 30g, .S.G.App.(Snl>p,)
6x6;E.O. gzqz, 7F.R. 298j,E+O. 9193,7F.R. 5205).

ExecutedatWashington, D.C., this9th ofSeptaber, 1946-

(Sitmd)James H, Markbarn,
JAMRS E. R~ARKHAM,

Atie~ProfimtyCwiadi~t~.

Rtigulatiun(195ged.)Sec,505.xoJ.ber la, 1946 , Code of Federal

REGULATI PENITSTTCI ~NG RITTRANSF EFKCHARES OF SFOCK
VKSTED AND SULD PiY TRI~LEN PROPERT YL~STODTAX

3503.9Mer Nù 3under $503.3(GrnaratOrderNo. 35)
Underthe authority ofthe Trading withe Enemy Act, asmtlnded,
and Executivc Ordess isstted thereiindeand pursurnt ta 1aw, the
undersipcd ,determiing
That the AEim ProperbyCustoiljan Ilawsted omr 97% of ths
cornmon capitalstockof GeneralAniline & Film Corporationby
VestingOrders Nos.5, 245and 907. RIIhas asçumed supervision,
jurisdiçtiand controlof saicorposai-ion pursuatliereand hy
virtue oGeneral OrderNo. 3s:
That Generd Aniline & Film Curporation isengaged inthe
manufacture,among other thingsof polectroresins, yhotûgraphic
equipment and supplies, dyestufls, and other prswliich have
proved ofprime importancebot direct1y to the amed serviend
izidirectto warand dher tsselitial industries durinwar and
willmntiriueto bcvitalto national prepmdness;
That GeneralAniline & Filni Cnrporatiojs a corporationof
importancein afield closely relatrthe defensecontsmy ofthis
country;and
Thxt thepti'tilicinterestrequiresthepreventrmetvcd orner-
shipor contrùl byotherthan Amentan Nationals of thoseshares
ofstockofsuch cwyarationwhichwere wsted bytht,AlienProperty
Custodim daring the presmtu7ar;
herehyissuesthe followinregdation:

5 503.9-3OrderNo. 3 irrld8r5o3.g{Gmwd Ordfir No. 3;)
GeneralAdinc RrFihi CorcioratioaDalawa~ecortmration,is herebv
designatedas a key carporathn ivitltlimeaning 8f -503.9(~nlzerd
OrderNo,3 5). APPEMDIX TO U.S. PREL. OBJECTIONS (EXFT. 9)

Applicationhy Bank of theManhattaii Company(New York 1-425f1or
650,00 0hares.
Applicationhy GeneralArliline & Filni Corporatioii (NewI'or45711)
for lotsofgm,ooo and 600,000shares,respectively.

IN THE fihITEl3 OF ~~I-ICATIONS FOR IA~a~~~ Ta TR~SFFK COMMOK
"RHSHARE ÇF GENEBA A-TILIN &EFILM CORPORATIOE
(FORMHW A,T~ICXN IL- CHEM~G ÇO RPOIW.TIOW),

This mcmorandum hns been prepwd in order tosiimrnanze andmakc
clear thestntnsof the above applications~iendingbeforethe Foreign
ProperQ ControlCommitfecof the l'reasury Department sincc ,yuneand
Auguçt 1940 respective]y.
,I he.çe al~nlicationsfor licenseto trarisfeCornmon 13 &ares of
GneralAndine R:Film Corporation (forrnerly American I.GClicmical
Corporation) to Intcrnatiunalc Gesellscllaft Chcmiscbe Vntcrne11-
mungcn A.Ç. (Iiceii~aftrefemd to as"1.G. Chemie") a S~visscorpo-
ration ofBasd, SwitzerlandThe applications wcrmade pursilantt~ the
provisionsof Executive Otder No. 6560 dated .January rj, 1934,as
amended by Exccutive Ordcr No. 8389 dated April ra, xq4oi and
Executive OrderNo.8405 datcd3lnyr o,rg40,wliicorder as50arnerrded
prolzibits, ainong other thingsexccpt -asspecificaity authorizein
rcgulationsorlicenses issued by the Secretof the 'Treasury yilrsuant
thereto,cer'çahtransactions ii~volving the propmtyin n-hickNethsr-
landsor any national thereof has at any tinonossime Muy~o, 1940,
had any interestO£ any nature whatstsoevedirector inclirect.

THE APPLICATIONS

The hrst application&ted .7a~ 12,1940, and fileclby Bank ofthe
Manhattan Company isfor a liceristo transferFjj~,cioCamrnon 1%
sliares01GeneraI Aniline & Film Corporation lidd by Rank of the
Manhattan Company innctrstodydcpot inthename ofN.V. Maatçchap-
pijvoorIndustrieen HancTeIshelangtFereinaftw referrcdto a"N.V,"),
aDutch corporation ofAinsterclam, The Netherlmds, ta custody depot
tviththathanlç in the nameof T.G.Cliemie.Said650,ciooshares (repre-
satecl hy CertificatNo, -5)tvereand areregktered in the name of
L. D.Pickeringk Co.,New York, asnomince forBwùi:ofthe Mlanhattasi
Company.
The secondapplicationdaled d~gust 29, 1940a ,nd61ed hy Gcnenl
Aniline& 1TilmCorporation isfor a liccnsetotransfer to T.G.Chemie
300,00u Cmrnon R shares (representedby CertificakcXos.32, 33 ;+ad
34 for ~oo,ooo shares each) of Generd Aniline& Film Corporation
reffisterin thc name of N.V., and Aoo,ooo CornmonB shares (repre- $.Zn $
mw oazw '
W 3:69
644Mm
- 7Q=-r 5
0 CEE:
" +hg cg
X z"r,ZW3
- u pc g
% marÿ 2
O "S. @
5 rn Es
w $253
Clai.ua
ga O cd
i qmz*
L b'E2Eo
tn
3 "HErn*
0 62%;
E-Z,&o
X ,15O*4
Z Ubtn
iJzGg*v
SPES
yd"Cz,hz
POE"%-2
a o &.S
CiJQqu
NU^2sproductive facilitiemay be effectivel~itilizedinthis country's war
effort.The Minister ofÇwi tzerlandisassurcd that thereis nointention
on the part of thisGavernment toimpair, injureor otherwiseadversely
affectlegltimatcrSwissinterests.
In thiscase every carehas beeritaken towake surethat no legithate
Swiss interestshouldbe adversely affectedThe order undcrwhich the
stock is vesting in the Secretaxyof the Treasuryprovides that çnch
property and tkie proceedsthereof should be held in çpecialaccuunt
Order alsostatesiethattany persono"assertiaigany daimheasiaaresult of
this Order may file 4th the'secreto frthe Treamrry a notice of his I
claim,together with requestfor a hearingthereon ...tvithione year of
the date of thisOrder .,."Thus it isthe intention of tkiGo~rernmént '
to afford anopportnnity for legitirnatSwiçs intérestçtùbe asserted
andfor appropriate steps to be taken in order that these legitimate
Swiss interests may not be adverselyaffected.
I

DUR %'IRF TOHL : refm tu my letfer of January 16 by ivhich 1
cbnveyed the requestof mg Government that the provisionalhloclcing
of theassetsof I.G. Chernit be extended beyond the datof Januarv 31.
"I the last paragraph ofmy letter 1 alluded tathexeported changes in
thMystGovernmentthihas now requestedmeed tnconxyeyitoyoucaits concern
with the circurnstance tliat this chana in the structure ofa concern
which it regards asGcrman controllf and whith has been blocliedas
suçhby thc cornpeten£authorities of your Governmen tstensiblywas
permitted by tlime aiithoritieç.
My Govemrncn t asksthat J indicateto youitsdesire that nochanges
inthe structure ororganization omy cornpanS rtprcsentblùcked-under
Federal deqees with respect to &man assetsk perrnitted,Itrcgards
thismatter as particularlyimportant in view ofthe proposds made by
your Govesnmeat to discuss mith the AlliedÇovemments the problem
of &man assetsin Switzedand. My Government intends tarcved to
thissuhject in any conferences rvhichmay he held in tbenear future
rvithrespect tothis prohlern.
1 am advised by my British and French colleagues that they are
addressing letterto you ina paralle1sense.
Sincerely you~s, ExJaibit2
DJ~PARTM Eu~rTrr~u x ~D~ AL

alVI!3fON DES AFFAIRE$ J~TTCANGÈRES
BERNE l,6 fiovrnbre1945. i
MonsieurDANIEL J. REAGAN,
Cmseillm firésIaLégufwn
des.I?tfits-~%d'Amériqwe,Berne.

GERSR MONSIEUR, l

J'ai Z"honneide mus exposer ce qulsuitausujetde laSociétéInter-
nationalepont EntreprisesChjtniqus S-A. & Râle (Y.- C&hernie)dont
M.UKohli: &LIphsieurs foisl'occasi denparler avecman pr6décesseur
Ai~ssitBtap4s I'entrk en vigueur de IVarr8t &u 27 avril dernier,
caniylkart le blocage desa.vairs lemands. l'Officsuisse de conipen-
satjon décid2d'ysoumettre 1.-G.Chmie envertu de l'art.g,al,3, selon
lequelles avoird'une sci&té peuvent4tre frappksprovisoirement d'in-
dkponibilit6en casde doutesur lecaract&reallenianddc!cettesociété.
31alait Gtreainsi .faitquanleConseild'administration$1.-G. Cl-icrnie
invital'Officsuise de compeasation à proc4der Mi~mCdiaternen t ilne
rkvision cornpl&terieslivreset des documents de la société. Cette
proposition fut acceptéektmt entendu ue, tant que dureraitcette
révision,ilne serai dispos& d*aucunfon 2s $1,-G. Chernie, exception
faite dedépensesadministratives indispensableàlamarche de l'affaire.
L'exyertise, faite par trospicialiçtede lDf%cesuiss de cornpen-
&ion, adur6 un moiset skst ktendueddiversessoci4tPsliksfinan~~ière-
nient2 1.-G.Chemie.
?ilalgr&lefait quecetterkvisicn n'aiamené la d6coizverted'aucun
document permettant de conclnre q1.1'1.-G. hemie cçt une societk
contr616ede l'Allemagne,il a 4th dkdd6 rhcemrnerit queses avoirs
seraientsoumis au blocage Four un temps limiti, afinde permetwe 9
vos Autorités,siellepersistent considerercette hol&ng ccimme &nt
sous influence all~rnande, d'en apportcr la preuII.a ainsiétk tenu
compte de l'importanceque votreGouvexnement afAache à cettaffaire.
Te voussaurais doncgr&d5infomer vos Ailtomtésde cequi pr&c&de
. n'ont pasperniid'Ptablir i'cxistence ached'[iIicnentrt1.-G.Cihernie
et 1.4. Farhen. Vous vaudrez bien dire également à lVrrshiiln@oque
lesAutoritésfëdkralecomptent c ria in tieblocageprovisoireji~squ'aii
31janvier rg+Gct le leveensuite5 moins que, avant cctedate,du ccité
américainoti allié,la preuven'ait étapportde que 1.-G. ÇIimic doit
être considéréecomme ime çocikté.esouinfluenceprépondérante alle-
mande, au sens desarretésdes16fevrier !27 avril/3 juille~94.5. am
ce:cas,il vasans direque le blocageprovisoiredeviendrait définitif.
Ce délaiexpirant au QL janvierdevrait êtreamplement sufisafitsi,
comme l'ad6claré toutrécemment M. Ostroiv,duConsulatdesEtats-
Unis LtZürich,à deux reprksentants de L'Offieuisse de corripensation,
lesAutoritksamtsricainesen .AlIemagncol ntmaintenant lesdocuments
nécwsaireç enmain pour prouver quecette affairestéconomiquement
allemande. M. Ostrciwa annoncé d'autre partJa prochaineawivk en348 APPENDIX TO U. S.BREL. OBJECTIONS (c-. 12)
Suissedkcrn spécialistedecetteqirestionet il vsans ilire queIESmtori-
tis sitisseintéress8csont pretes àrecevoir cettepersonne pot~rs'entre-
tenir aveccile.
Recevez,cher Monsieurl ,'assurai~cde mes sentiments lesmeilleurs,

-
[Translation]

RTZRX Em, swber 6,1945.
MR,DANIE L.REAGAN,
Cozi?zseJ!ofIPnLecgnlion offhe TTgtifdtades ofAmevicrc,Bems.
I
DEAR SLR :1have thel-ionoto transmitto you the fo1IowEn gtatement
in the mattor ofSociété IIIternationalpour $ntreprises Chimiques S.h.
Basle (I,G.Chemie), on xvhichyou had sevemltalk s ithrnypredecessor
M. Kol-tli:
Imrnediately after thedecree aiZast Aprii 27 rventintu effectwhich
completed the blocking of Gmrnan as';etthe Swiss Compensation Office
decided to bring I.GClremie under ithv virtueof art,g,par.3, according
to which the assetsof a company may be frozen temporarily if çome
doubt existsabut the Gerrnm chamcter of tliat wmpany. This cvas
about to be done, rvhenthe Board of P.G. Chermieinvited tlie Swiss
Compensation Ofice taproceed immediately torieomplete examination
with theounde~tandings that,hforthe ditrationofrthis examination, no
funds ofI.G, Chemie shoirldbe disyosed of, cxceyt foradministrative
expenses whlc1-rwcre indjspensab inethecourse of hasiriess,
Thc investigatictn whicli was made hy thne expertriof,the Swisi;
Cornpensa tiori Officetookonemon th and it extendedto several cornpa-
nies tied hancially to I.G. Chemie.
Inspite of the fact tbat this investigationdnot leadto thediscovq
of any document which would permit the coiiçlusion that I.G. Cherrite
is a company under .themntrül of Gcmany, the dccision ivasmade
receritlytohavei ts assetsblocked fora limitcd time,in ordcrto permit
your authorities, if they persistcdin regading tl~is holding asunder
Gerrnan influence, to fwnishthe proof for it.This way one has talren
into account the impurtanc weSUchyour Government attaches to tliis
matter.
I would likeyau to inform your nuthontiles of the foregùing and in
doing this to stressthe,point that the very thorough investigationsin
Çwitzerland have failedto esiablidi thactud existenceof atic bcttÿeen
Z.G. Chernie and I.G. Fnrben. You could also inforrnWashington that
the FedcsimlAII~horitim are gaing to maintain tl-ittmporasy blocking
until January gr,1946, and to raise it thertafter unlespriorto tlrat
datc proof hasbeen furnished on the part ofthe ,hericans orAUieçthat
T.G. Chernie has to l~e considered a cornpany predominantly ind der
German influence within tlie medning ofthe dekrees of February 16,
April 27,and July 3, 1g45 .t Sues without saying thatin this =se the
temporaq blockingwill become dcfinitive. This periodwhicli expiresonJanuary 31 shuuldbe amplysufhcienf Ef,
asAiIrOstraw ofthe Consulate of the United Statesat Zürich has stated
recently to two repramtatives of the Swisç Compensation Office, tlic
American at~thortics inGemany have obtained the doçumen ts neces-
saryto prove Qat this matteriçGeman in anccoriomîcsençe.Mr, Ostrow
has ako announced the forthcornhg visit in Switzcrland oan expert in
this qliestion and it goes without saying that tlreinterestcd Swicjs
authoritiesarc ready to receive tliis personfor talkwith kim.
I 1remain,
Werysinccrely yaurs, (Sig&] R, HOHL.

Exhibit 13
Tm F~E MAY 22, r946.
1nvr;lrJ, LEVU
STV~ Sego tjEions,

There ws a meeting in Mr. Jones' office011Mayzr, 1946, attendecl
by Messrs. Schwa'lie,Ott, ancl SSçneberger, representing tlie Stviss
Fovernrnetit, and NIessrs.Jones, Hilken, Roskey , Isenbmgh, and me.
The Swiss reviewed the difficultiin the past in theirinvestigation of
I.G.Chernie. They daim that they had made a very thorough investi-
gation ofal1aspectsofthe case and rai dotvndl leads includhg Stumen-
egger. They say there isno question that LG. Cheniie waç foimded by
1.G.Faben, but the reorganizationof1939and 1940 leaveç them without
inabdityetoegetfany ofnthe euidenceiivliichthenAllieshave acquired inr
Gcrmany andjndicated that theaction wliichthey took to IAockChernie
catlnotha sustained unless somc evidence af Farben owncsship is fortIr-
coming froizius.Chernie has brought same sort ofadrninistrating action
in Switzerland to uablock thcir accounts aad tfie Swisshave tliusfar
dehyed action, bitt believ~that they cannst postponc consideratio~iof
Chernie'sapplication much longer and on the preseiltstateofthe record,
they canno t çuccessfully defendt,
Xtwas accosdingly agi-eedthat there should boa mt~tuai eschailgc of
information in Switxcrland. They promised iis fuU accessta their files
andfull cooperatiun exccpt tlrat they repeatedthat no direct approach
could be made by our people to witnesses; thatit would be necesçary
towork thruugh the S~viss.Zt&e it that they cimt mean that we woiild
not be able to intc~cw mrihesçes or e~amine the records of the Swiss
Company, but that we kvouldhave towork with the Swisçpracedurally.
This becausc of the old questionof Swiss sovereignty and therefusal to
let fgreign representative approac'h witnesseç,ctc, dhctly rvithout
clexring withthe Scviss,
Tlie S~vissbrought up tlrcqnestion of Rfr,'5,Vilson'p licationta see
bisclients in Switzerlar~dand the unfairneçofdenying t c cIimt acceçs
to hisattorney. 1 was irifomed L3yMr, Boskey hformally that Wilson
wilZreceive a liceristo go toSm-itxerlanrlintlienear futiire.
The arrangement: was Feftthat assaon asScl'lwabe and Ott return to
Switzerlmd, rvhich will beintlic vcry near future,they wlll infarrn us
and thev will berendy atany time thereafterto meet otirrepresentatives
anclto rnauguratethis joint inquiry.Mr. Jones indicatrd his oum plans
to go to S~vitzerlmd early this summer and he may wish to time the
inqiliirscithat it may takc place when he istlzcre. APPENDIX f O U.S. PREL. OBJECTIONS(EXIT. 14)

Tclephon 72.770
MQjka.
Direction
Monsic~~TrT~R'Y LEROY JO~S,~
Ambassadedes Etats-unisde
,l'AmiriipeduNo~d, Bev~e,

Nous rbférantBnos entretienen Amhique concernant leblocageou
ledhblocage de la maison "Interhandel",RPlk, etnos observations lors
de nos diffkrentspourparlers,nous nous permettons de vous exposer
ceqni mit:
. maison. Suivante1erésultatsdevces recherch reeeaillkesnoui sommestte
d'avis que lamaisan "Intahandel" ne peut êtrebloquée,Néanmoins,
nous l'avonsbloquecl.provisoirement,étantdonrikpzrelcs ~prkntarits
des États-unis ont dkelaré, à maintes reprises, qu'ils possédent des
documents, prouvant que la maison "'Interhandel"est cçintrbléepar les
AUemands, Malheureusement nousn'avons pas encore ptt prendre
connaissance deces documents.
D'autre part, lorsde nos nEgociations ft IVaskirigtonous sommes
convenus que vous viendrezcn Suisse au mois de juin pur nous son-
mettre vas moyens de preuve y relatifsetpour élucideren commun
accord laquestion du contr6le allemand de la maison précitée. notre
regret,nous n'avons pas encore mçu, jusqu'i pdsent, les ditsmoyens
depreuve. En outre,vaus nous avez inform&squ'a ce sujetvous devez
vous rendre en Allemagne pour quelque temps.
Vu que Mr.le Dr. Ott quisk~ccupe decette affairen particuliedoit
prendre sesvacances d6s lundi le rz &. et &tant donnbqtre1'Qfice
SuJsse de Compensation doittraitm encore un grand nombre d'ctiitreç
cas,nousnous permettons dc vous sugglérere nous soumettre Icsdoai-
mets surlesq~~eLvsousbasez votre opinion queIrmaison "Interhandel"
est contrdléepar les Aiiemands etde nous confirmervos constatations
faitesàcesu jctjusqu'àprésent,afinqu'entreternpsnous puissions &en-
tuellement faire desrechercl-isupplémen tires.
Mr, le Dr. Ott sera loipendant 15 ours, Entretemps vous poussiez
peut-&ire vous rendre en Allemagne. !l&sle retour du prhommé les
pourparlerspeuvent êtrerepris, afin quel'affaienquestion puisse etre
LiquidéeaussitBtque possible,
Nons croyons que cette rnauihreda procéder est la nreillcure,étant
donnéque d'une part vous devez vous rendre cn Allemagne etd'autre hFPENDlX TO W. S.PREL. OBJECTIONS (EXW. 14) 35I

part MT.lc Dr,Ott doil prendre sesvacancesgpartir du rzmt. car d8ç
finVeuillezagréer,Monsieur, l'expression de nossentiments distingpihs.

pranslat ion]
$CHWEZZÈR~SGWT VERRECHWU;UGSXI*ELLE
OFFICE DE COMPENSATION
UFmCTO SVIZZISRODI COMPENSAZIONE
Zurich
Borensiiassé zG 4
Molka.

Ms. Hmn~ LEROY JONES,
Embassy ofth U~ilcdStafes ofAmavica,Bme,

DEAR SIR: Refening fo Our corderence in herica cmcersiing the
bloclung and unblocking ofth firm "InterhandeY, Basle, and to our
observationsat the tirnofour diffcrenttdks,we rvishtostate asfollowç:
As yon know, we have made two investigations concerning this km.
According to theresiiltof ourdetaïied researches,we are ofthe opinion
.that the hm "Interhandci" shoiiki not be blocked. Nevertheless, wt:
blocked it provisionally ivicw of the fact that representativesof the
United States have declared severaltimes that tlttyposscss documents
proving thatthe firm "Interhandel" iscontrolled byGermaris.Unfortii-
nately, we have not yetbeen able toleam the nature ofthese documents,
Moreov~r, at the time of ournegotiations in Washington, we agreed
thatyociwould corne toSwitzerhnd in the manth of June tosubmit ta
us your means ofproof relative to the matter andto explain incornmon
accord the question of Geman control of the said hrm, To our reget
we have not yetreceived up tothe present Eimethe sxidmeans of proof.
Furthermore, you have inforrned us on this subject that you must go
to Germany for scirntirne,
Since Dr. Ott tvhois particuhrly incharge of thiç matter mwt take
his vacation starting iiqonday,the12th of August, and sirice the Swiss
Ofice ofCompensation must handle a large number of other cases, we
take the liberty of suggesting toyou to szibmit to us the documents
upon which yau base your opinion that the "Interhandeliirm iscontrol-
led hg Gerrnans and to confirrn50 uc;your statements on this çubject
hitherto made, tothe end that Iveeventually sçhalBe able tomake our
sappIementa1 investigations.
Dr. Ott will beaway for fifreendays. In the rneantime you will be
able tomake ycrur tripto Gemany, Upon the retm of Dr. Ott the
conf~mces can be taken up again,to the end that tlie afFaisinquestion
on be iiquidatedas soon as possible.
Ws believe that thismannsr of pmceeding is the hest sinceon ane
hand you must make a trip to Gemny, and on the other, Dr. Ott must
take hisvacation heginmng with the rzth ,ecause from the end of
Augpst it will be impossible forhim to leave Zürich,
Please accept,sir,the expressionof our distingilishesentiments. MEMORAND~
To: Mr.Plitt Au~us~ 16,1946.
From: Haq Conover

Ms. Jones and I cGed thisafternaon atthe office of MrFontanel
(Mr,Mann was ina abltoaccampany us because of anunan ticipated cal1
to dcpart assoon aspassible for Park). Mi-Fontanel wâs assistsd inthe
inallilitto attendrthermeeting and tlianlzed Mr.nFontaneloforbeinghso

kind as tu receiveus.

Mr, Fontanel expresse sdrpriseat the enormity of tlic cax and the
problem of analysis and at thc rniszinclerstandirconcming procedure
mhichexisted on tliepart oftlierespective participanin the Washington
discussions. Hestated thathe had yesterday calledupon &Ir,Petitpierre
and presented to him MT. Jarid letter; that Mr.Petitpieme had stated
most certainly that I.G. Cherniwould not imrnediatelybe unblocked ;
but that jtkvasirnproper for theSC0 to make available toAmerican or
otlrerforeign representati docsments relating to a firm which, after
two invmtigatioiisby the SEO, had been defermined to he Swiss-owncti,
Ms. Petitpierre, tlierefore, that itwas incumbent upn the American
auth~ritiesto prmcnt evidcncc to contradict tl~esefindings.

The Legation ofÇmitzerl~nd hm been instmcted Itomake the follow-
ing statement regarding Internationale Handel* und Induçtrie-bet eili-
gilngen A.G. (Interhandel), formerly kno.cvn a9 I,G. Cllemie, Basle,
Switzerland.
Two particularlythorough investigations carried out by tlie Çwiriss
the clarificatioof degedcaGerrnanx9control,havethadsaenegative result.
It may be recalld tliatvarioiiçUnitcd States Government agcnçies,
and a1seanofficial report of theWax Department, asserted to I-ravat
Iiand conclusi17e proof of claakirigNo evidence, however, has been
submitted to the Swiss authorities, despittepeated requests.Uecaiise
of laclof proof against Znterhmdel and in Yiew of the snbçtantial tirne
which harielapscd since the investigationswere cornpleted, it al-ipears
very likely tl~atthe camyctcnt Swiss autliority wliich has allowed an
appd by Interhandel must soon reverse thepreviousdecision;i,e.,must
Ziftthe blocking of Interhandd.
Providecl that thc appeal iç successful, the S~vissauthmities are
confident thata favurablc çettlerncnt wil1breaçhedwith respect#tothe
stock of the Generah Aniline and Film Corporation, which belon@ tto
InterhanClcland wliich was vestedin theMien PropertyCustodian in
February 1942.

June 411947-
Aide Rllemoirf~om theZegatXon of Switzcrlctnd. APPENnTX TO W.5. PREL. OBJECTIONS (EXH. 17 -4ND 18) 353

'The Department of State tefers50tlie aide-memoire of the Legation
of Switzerhnd of June 4, 194J (R300-5b Schlmd) regardhg Inter-
nationaleHandels- und Tndustsiebeteïlipgen A,G. (Interhandd),
former1y knovm asI.G. Chemie, Basle, S~vitzerland.
The question of the dispo5itiontohe made of tliicase.is one which
under the tem of the Accordmd Annex theretornust be dealt witlr
tli~rougthe JointCommission. Underthese circumstances the Govern-
ment ofthe United Statesin conformity zvittheobligatims itundertook
iinderthe WashingtonAcmrdof May 25, ~946, isunable to consider
thequestions raised in the seference notin any other forum thail the
JointCorrirnisçion.
During the courseofthe negotiationskading tothe AccordofMay 25,
1946, the United States representafi mvade clear thata decision on
theInterhanclelcasecan have no effect of ay sefilernenof ordecision
on the vesting action bthe Alien PrnpertyCustodian of February 1942
ofthe stock af the GerieralAniline and Film Corporation. The United
- StatesGovernment has not changed its~yiewsin this matter.

The Department of Statsdesires to caUthe follosvingniattertûthe
attention of theGovernment of Switzerland.
The Attorney Grnerd ofthe United Stateshw cafledt.0the attcntim
of the Department the importance of the problem arising out of the
inabilitg of the properauthririticof the United States to make any
inr7wtlgati~nsinSwitzerland relatlngta property located in thc United
States and vestedos subjcct to vestingby the OfficeofAliexlProperty
ofthe Department of Jiistice. The poinmade hy the Attorney Genesal
of theUnited Statesare asfollows:
I. The question of the relevace of the Swiss-AlliedAccord of
May ztjl1946, tothe problém afinvdigation.
The cornments ofthe Attorney Çeneral on this point are as
follo\v:
"The SwissLegatlon, initsaide-memoire of Octobtr I. 1947h ~a
taken the position that the Washington Accord of May 25, 1946,
giv~sthe SW~S Sompensation Officeexclusi jurisdictionto make
investigations 'ofpersonsand cornfianieson SYPIsçterritory.The
incident which gave~iseto theaide-memire did not concem pxoper-
ty inthe United States, but the Swiss Compensation Office has
taken the same position wjthrespectto caseswhiçh involve prtrperty
lacatd in this country which haç been vesteclas Gerrnan. Ln one
such case,dlof the Swjss partiedirectlyconçemcd having consent-
ed tù an examination of cvidcnce InSwitzesIand, representatives
of theDepartment ofJusticejourncyed to thatcountry tomake the354 APPEIWIX Tb U. S.PREL. OBJECTIONS (E=. 18) '

agreed upon investigation. Iley were thereinfomed by an ascial
of theSwissCompensation Oflicethat the provisions ofthe Accord
prohibit thc making of Investigations in Switzerland by thiiis
Department, and as a resultthe investigation couldnot be made,
Recaeiseofthe position takenby the SwissGovmmmt tliiDepart-
ment has also been cumpelled to postpone several other hp~rtmt
investigations.
"The position,af the Swiss Irovernment is withouf forindaticm.
The Washington AccordobIigatesthe Swiss Compensation Office,
which haçjurisdictîonorvertheas& in Switzerland 01fim~sblocked
. under Swisslaw, tajnvestigatethe statusof propertyin Switzerland
suspectedof heing Gemm-owned, but does ntitprovide that such
' investigations areto be made by the Swiss Compensation Ofice
exclus~vely.Grman assets located outside of Switzerland arenet
within the scope ofthe Accord, and the Accord does nrit givethe
Swiss CompensationOffice the autl~orityto crrnductInvestigations
involvingsuch property. Propertv vested hy the United States, and
the investigationsihiçnepartrnént desires to conduct with respect
toSUG~Ipropertyrare gwerned only bÿ the Trading with.the Enerny
rlct,and are wholly unaffccted by the tVashgton Accord and
the relatedS~Yis statutw esth respectta the blocking of Germm
property hy Switzerland."

Attorney1NGenertclisandha ken theote consistent position of the Govem-
mentoftheUniteSStatessinceMay ~~~1~46,andthat,conmnently -
with the signing ofthe Accord of May 25, ~946, officiais of the Depart-
ment ofState statedto officiaiofthe SwissDelegatian that the prohlem
of property inthe United Statesheld through Swissinstitutions aUegecIly
an beihalfof German national$ was not subject tothe provisions of the
Accord.

2. The relation of thpmiblemof investigations to judicial action
incourts ofthe United States.
The vieivsof the Attorney Generd onthis matter are asfdl61vs:
"The attitude ofthe SwJss Governrnent, if maintaïnecl, rd1 be
brought to theattention of the UnitecStatescourts,A fundammtal
principle underlying the procedure fdlawed in tlzeUnited States
districcourts istliateach party to 3lawsuit shJ1 have the right
toa fd inspection of a13relevant documents kfore trial, in order
that aUpertinent evidencemay be broughtbcfore tliecourts. Inthe
cvent that a party is not pesmitted by his adversary to kspect
rclevantbooks, records orotttcrrdocuments, anappml maybemade
to the court for appropriate sanctions, incl-ridingtheentry of a
judgrnent dimisshg the suit. It iOur intention,in the event that
theS~vissGovernment pend inits refusa tlpermit thisDepart-
ment to conduct investigations inSwitzerland, to appeal to the
courts for the dismissal of suits institutedby Swissplainfiffs to
recover veçtedptoperty. The factthat Swisscitizensare theplaintiffs
andmustca theburdenlofpofinthesecasesisafactorwhich
the courts wil consider when rubng onmotions to dismiss frled b~j
this Department." 3. The effccof fhisproble rntlre possibility of administrative
: returns and on the judicial remcdy now pravtded by tlieUnited
. S atcs legislation. -.
The viewç of theAttorne GyeneraJonthis matter areas fdows:
vcstigationsitoudetermine thetstatusiofwestedrnpropertypdlmit&on-
prevent the Officc of Alian Property from making administrative'
returns baseclon claimç filed bySwiss citizensand can resiiltin
Swiss nationals losingthe rightta mairitain suits fothe returnof
veçted property. Suçh suits are institilt~b witthe consent of the
Unitcd States, This consentjsan actof grace on the part of this
Government ,revocable at .my tirne andsubject tosuçh conditions
as the UnitedStates desirestoimpose.'l'hccontinuanceofthe autho-
rization hythisGovernment tohe sud by aliensisconsideredto lx
conditioned upon the req~irem~nt that the alitas wiil cornplw itli
the prwedures adopted for themnd~ict of litigation iour courts
arid that the Govcrnments tu tvhich the aliens owe allegiance will
ncitfrustrate the applicableIaws of the United States. The Swlss
positionlmves the Department of Justice without means of obt&-
ing information vitalto the defense of la~muitinstituted bySwiss
citizens with the consent of the United States,This Government
cannot be expected to continue to consent to be sued by Swiss
citizensif theAccordis emyloyed withctut warrant by the Govesn-
ment af Switzerland to deny to the United States its rightsas a
defendm t,"
Iritransrnlthingthese viexvo sfthe Attorney &nerd of the United
States to the Govemrnent of Switserland, the Department of State
reiteratesits desire,crrnstantly staover themurse of thepast several
years, that pmblems relatingto the Accord omf May 25, 1946, and to
questionsconsidered eitherby the Swiçsor the United Statesaiitho~ities
to herelevantto the Accordmay beamicably and espeditiorisly resolved.

The:hlinista ofSwitzerlarid preietits his complimetesthe Honoi-ahle
the Secrctao xfySfate and haç tlie hanor to cal1 hiattention to the
followingma tter.
r. The assetsof SocittéInternationalepouxParticipations hdustriel-
les et Cornmerciaies LA., aka known as Internationale Induskie- Pz
HarideIsbeetiligmgen A. G.; former1y knmm as Soci&té Internationale
pour Entreprises ChimiquesSA. (I.G. Chernie),also fmrnerly known as
Internationale-kllschaft fürChernischeUnternchmurigen AG., (and
hereinafter callerInterhandel),veçted in the OfficeofMen Pruperty,
apparently were sejzediinder the ass~mptiorthat thecornpany, ouilded
on the initiaeveof aGermancombine in 1928r,eflectedintesesisinthe
sphere ofsection 5(b) ofthe Trading wjth theEl-iernyAct, açamendcd.'356 APPE~~ TO U,S. PREL. OBJE~IONS (EXH. rg)

2.Althoughneither the Swiss authorities nwrthe American Govern-
ment has groduced evidençe against Interhondel,the Swisç bIocking
provisionswere applied provisionally.
3. Interhandel's spyeal against thiç blockitvassiibmited to the
competent AuiharityofReview, ptovided forbythe IVashington Accord
of Aprilz5, 1946.Uprrncernpletionofextremelytlioroughinvestipiions
made bg the Swiss Compensation Office,aridaftcrthe submissionofthe
result thereof bythSwissCompensationOffice tothéJoint Commission,
and after their joint coaperatioinrelationtl~eretci,the Authoritof
Review, onJanuary 5,r948,retroactivelyliftkdtlie blocking oInter-
handel. The allegationof an memy control had yroved to he without
foilndation.
4. According to Annex X'XX p, ragraphz,of the IVashingtonAccord,
the the allied Governments may, within one month, require the
difierenceto besubmitted ta arbitration, if the Joint Commissiisiri
disagreement with any decisian of the Authoritof Review. Since the
ihree alliedGovernments failed ta take this steythe dedion of the
Authority of Review dedaring Interhande1a Sçvissconcern hasbeconle
final andbinding iipon alpartiestothe Accord.

5. UnderArticle TV of theWashington Accord,the Govemrnentof
the United States apeed tethe releaçe of SwissassetsLnthe United
States.
The hister muld thezefore appreciateitithe Department of State
would contact the mmpdent Government agerictes tvitha Ylew ta
having the vested propesty mtmed to Interhandel, The annexed
documents are transrnittesalelytcidescribethe vested properiy md
to reflect Interhandel's title t'hereta.

ENCLOSURES

Form APGr A-'lotice of Claim for ~u~ert~-c&cernin~ 455,488
Aniline andhFilm Corp,nd ~,O~CI,OOsham of the13 stock ofGeneral
Form APC-r A-Schdule gB--C haracterizationofCorporate Claimant.
Supplernexits(wit hnnexes) Nos.r, 2,3, 4,5,SA, 6, hA,7,7A, 78, 7C1
713,8,BA, BB,g,@, gB, gç,IO, roA, IOB, IQC,roD, II, IIA, TIR,
IIC, ZID, 12, UA.
Form APC-xA-Concern 176sghareçofthe Astock of GeneralAnhe
& Film Corp.
Forrn APG-rA-Schdule gB.
Sapplements (with annexes)Nos. I,TA,rB.
ForrnAPC-~A-concerning cash intheaggregate amountof 5~5,2~++.70.
Fom APC-TA-SchedulegB.
Form APC-TA-conceming cashrepreseriting dividendspaidby Grneml
Aniline& Film Corp. onSept ,8,1940 ,ec. 12,IWO, Oct.IO, 1941
upon Gsrs,oosciares of theB stock of General Anilin& Film çlorp.
registcrd inthe nanie ofL. D,Pickering & Co. and behnging to the
claimant,
FormAPGIA-Schedule gb. (40Stat.4.11~I J0S.CApp, I;55 Stat. 839 5U.S,C.hpp. 5tip. 616;
E,O, gr42 ,pril23,1942,7 F.R. 2935, ~FR, Cum. Supp.;E.O.9x93,
July 6, xgq,7 F.R.5205~3 CFR,Cum,Supp.)

Executed atWashington,D.C., this 14th.ay of October, 1946,

(Sigwed)James E. Markham,
TrinarE. M~AM.
Àiim ProperlyCwtodian.
DI Federal Rcgistw 12782,Octoher 30, 1-46,8 Code ofFederal
Rcgulations (rgy ed.Sm, sos.rg]

New York
16 WallStreet London
Fifth Avenuc at 44tStreet 26, QldBroad StreetE C 2
57th Street aNadisonAvenue Cable AddreçsNew York,Ranktrust
CciinptrollerkDcpartment abLe Addresa London ,mtnrsçorn
F. W. Buehm
Assitant Comptroller

Honorable HENRY MORGENTHA J,,,
Secretarofbh.Yreasaq,
Tïeaswy Uepavt~clzt, -ahilagtofi,D.Ç.

DEA-Sm :Supplementingour letterof Febniar16 andwith fustlict
refmence to noticeand dernand of the same Chtesigned by yriuin
cbhnectionwith certain sharof General Aniline aFilm Corporation
usare,asTfollows:t tonIyshareslistein the orderwhichare IielFy

CertificaNo. 4-Ame.rican 1-42.hmica1 Company [notvknom
asGcneral Anilinand Film Corporation) f$00,000sharesClassl3
stock rF 'sterml in tname of the Eidgenksische Rank, A.G.,
Xünch, ,witzerlandnnendorsed.
certificatwas receivd byus on October 141.94 fom thelaw
fim Brisen andÇÇI~renk,49 WaU Street,Yav York, N.Y .tobe heZd
ina blockeclsafekeepingaccouninthe name ofH. Sturzenegge &rCie,
Bille, Switzerland.
We await receipofyourfurthor advimsand in thmeantirne,remah,
Yonrs t*q truly,
F.W.BOEHM,
Asszstaftowplro1!Im* APPENDIX TO U. S.PREL. OBJECTIONS (EXH. 20) 357

Form APG ~A-concerning cashrepresenting dividendspaidby General
Aniline & Film Corp. during the yem rg4o and rgqr upon 6oo,ciao
shares of the B stock a£ Generd Aniline registeredInthe name of
Cherno Maatschappij voar Chemîsche Ondemernimgen, and upn
3oo,om sharesregstered in the name of N.V, Maatschappij voor
Industrie enHandelsbelmgen, all belonging to claimant.
Form APC-sA-SchediiIe gB.
Fom AIX-~A-concernh cash repremting dividend paid by Guieral
Anilinean Dec. Ig.1941 upontjjo,ooo sharesoftheR stock ofGenerd
Aniline rgisteredinthe narne ofLID. Pickering 8zCo.md belonghg
totlie ciaimant.
FarmAPGIA-Schedule gB.
FmAniline onoOct.nIO, 191 andhrDec.s15,394~uponden500,000Eshares of
B stock oGeneral Aniline segiçtereinthe name of Banque Fédérale
S.A. and belonglilgtothe dairnant.
#Fom APC-r A-ScheduZe gE.

The Smetary ofStatc presenfhis compliments totheCharg&d' Affai-
$es ad interimof Switzcrland, ansefertostheMinister's noteofMay 4,
1948, with efidosures,concernins the return of assetsin the United
States claimd by 3,G. Chemic.Ln the lfiniste nrteattention iscded
tù a clecisioof the Çwiss Atithoritof Review "declaring Interhandel
[].GdChemie] a Swiss çoncern.'"
The Department of Statehas nowcotlsnltedwiththeDepartment ofJusr
ticeand theTreasuryDepartmmt, and desires tocornmunicate the follow-
jng as the fmal and consideredylew of thiGovaunent on thematter.
As re resentatives of the Swiss Government haveheretofore been
informca),ttiiisGovernment considers the decision of tlie Çwiss Authority
of Kevierv ashaving noeffecton the question othe=sets jnthe United
States vestedby this Gov~ment and claimed by Y.G.Clîcmie.
The.decisionof tlie Swiss Authotyof Review was made ananappeal
ofI.G. Chcrnie framaprovisionalblockingordercdbythe Swiss Campen-
satjon Offrcputsuant to the Swiss Fedeml.CouncilDecrce ofFebm ary
16, 1945 , il not on anappealtaken underthe terms ofthe Wrashington
landrheId by I.G. ChmitT.hareGemanonofassetsisstill beforthewJoint-
Canimissien.Plainlythe decisionoftliSwisçAuthority ofReview, when
made as a mlt of an appeal rindera Swius decrcerather than.as a
resultof an appeal by the JointÇemmission or by aninterestedp~rty
under the Accord,isnot binding upon the UnitedStates, evm as tothe
statuç ofI.G. Chernieassetsin Switzerland.
In any event, the Washington Accord govems only property in
S~vitzetEandowned or controlledby Germailsin G~lr y, the praceeds
ofwhich are to be used as specified in thAccorrl.Assets subjectto
vesting inthe United Stateswhcther OT not thcyhave bccn vested, are.
çlearlywitlioutthe scopeof fhe Accord.The decision on I.G. Chernie's,358 APPENDZX TO W.S. PREL. OBJECTIONS (EX& 20)

daim to assetsinthe United Statesis solely one for AttorneyGeneral
ounderSection 32 of the Trading with the Enemy Act, as amended
(Public Law No. 32~~79thCcngress, 2nd Session,50U.S.C.App. Sec.32),
or forthe United Statescourts ifsuitshould be institutedunder Section
g (a) othe Tradingwi th the Enlemy Act,
The views ofthiç Goverment wete cleariystat~d inthe negotiations
leading tu the Accard ofMay 25,r946. Thus in the mernomduni of
Jtme 18, 194%replyingto the ilideMemoire of the Swiss Legation of
jttne 4, 1947 aising the same point as now raised, the Department
stated :
"'During the courseof the n~g~tiationsleading to theAccordof
May zg, 1946, the United States rcpresentativesmade cleu that
-* a dwision on the Interhandel IIG,Chernie] casecan havcno effect
on any setilmefitof or decisibnunthe vahg Ilythe AIim Proper-
' ty Custodian ofFebniary 1942of the stock of the General Aniline
alid Film Corporat.iun.The United States Governrnent has not
çhanged itsviews in this matter,"

lnifs AideMemoire ofApril Zn, 1948t,he Departmmt alçoexpressed
agreement with thc vlew of the Attorney General ofthe United States
that ''Germa31 assetslocated outsideof Switzerland are not lvithin the
scope of the Accord. ..Propcsty vested by the United $tates ...[is]
wholly unaffected by the Washington Accord ..."The Department
further pointedout that Vis hasbeen the coiisistenview ofthe Govern-
fient of the United States sinceMay 25, 1946 ,nd that, concurrently
with signingof the Accordthis understandin vgs statedtriand undes-
stood by, Ses% officialç.
1 This Government's consistent interyretation of Article IV af the
Accord hasbeen that jtrelates'n nlthe establishment of aprocedure
for the unblocking of Stvisç assetinthe United States; and, asis trlxe
of th. entire Accord,itin no way relatesto assetsin the United States
vested orvestible underthe Tradinguith the Enemy Act, This intcrpri-
tation f~llb~ the intent afthe negotiators of the Accord. It willbe
recalled that theimplernentation of thk Article took thc focrnof an
agreement betcvea~the Treasq Department and the Swiss Ministerof
Fmmce for thedefrostingof thefrozen S~visassetsin the UnitedStates.
from certificatioofiasseteis the UnitcdsStatesdecmed byathis Govern-
ment tobe German tainted orotherwiseineligiblefor cert~ficatioevexi.
thnugh claimedbyenterprises or anized inSwitzerland.
8ft is thereforeclear that no c7ause of the Accord touches npon or
afiectsinany marner assetsorproperties inthe United Statesin whicf~
a direct Germa11 interest is asçertedand the status.of çcrch açsetscil.
propertiiesisnot subject to cznyof the procedtiresof the Accord. The
decisionof the SwissAuthorityof Review isnot relevantto the vesting
bf the proprty in question and the contention that the assetsclaimed
by Z.G.Chemie inthe United Statesshould be released musttherefore
be rejected. Ehz'bit 21

TradingWith the Enemy Act, 40 Stat. 411, asamended, go U.S.C.
Apy. r,etsep.:

SECTION 9

(a)hg. pemun not anenerny or ally of sncmyclairnimg alryinterest,
right, or titlin ang rnoney or other property which may have been
çonveyecl, transierred, assigned, deLivert,ir@d to the Mien Property
Custodian or seizedbyhirn hereuader md held bv him or by tIicTreasurer
of theUiiited States,orto wliom ang debi rnay be owing from an enemy
conveyedoft,ansferseclassigned,tdelivered, or paitoothesAlienPropertyn
Cuçtodian or seized by hirn hereunder and lleld by him or bvthe Trw-
urer of the L'nit&States rnayfilewith thesatclcustodian a notice of his
clairnunder oath and insiich form and ccintaining such pnrticularsas
the saidcustodian shll requjrc;and the Preident, if application imade
thcreforbu the claimant, rnay order thc payrnent,convey3nce, transfer,
assignment, or deljveryto said clairnant othe money oratlter property
so held by the Alien R~perty Çustodian or by the Treasiirerof the
United ~fat~s,or of the interest thereiil to whichthe President shall
determine said clarimanf is entitledPrav.ided,That no suc11order hy
the President shailbar anyperson fmm the prosecution of ariy silit art
law or inequity against the clairnantt-eustablish any right, titEe,or
interest which he rnay havein such rnonty or othcr property. If the
President shd not socirder within sixty days aftw the filing of such
apphçation or ifthe claimant shall havefiletlie noticas above reqnimd
and shall have made noapplication to the Presidcnt, said claimant rnay
institutea suitin equity in the United States District Court for the
District ofColumbiaor in the districcourtof the United States forthe
districtintvhichsuchclaimant resides, or, ifa corporation,where if has
its principal placof business (twhich suitthe AlienI'ropaty Custodian
or the fieasure ofthe United States,as the casemay be, shdl be made
a party defcndant), to esta1,lish theinterest,right, title, or debtso
clainied,andif soecitablishedthe courtshall osderthe payrnent, convey-
mce, transfer,assignment, or delivcryto said claimant of thernoney or
othcr prnpertysoheld bythe Uri Property Cust odian or hjr theTreas-
urer ofthe United Statesor the interest thereita whic11the court clhall
determine said clairnant is entit1ed. Isuitshall be se institirted, then
stichmonev or property shall be r~tained inthe custody of the Alien
Ptoperty ~Üstodian, or inthe Treasury of the United States,as providnl
in this.Act and untiany finajudgment or decree which shallbe entered
in avor of theclaimant shaUbe fnlly satis-fihy paynient osconvevance,
tmsfer, assignrnent, ordeliverg by the defendant, or by the Alim
Proyerty Custoclian,os Treasurcr af the United States an order of the
court, or uniil final jitdgmentor decrcc shall be entered against the
claimant 01-silitotherwke termitiaied. 360 APPEND'IXTC)V.S. PREL. OBJECTfONS (EXH. 22)

-INTHE UNITES DTATE DTSTFU OTURT~FORTHE D~STRICT.OF.CO~UMBLA

SoCIETfIRTE PATIONALE POUR PARTICIPATI ONDWSTRLFLLESET I
COMMERCIA SLE.S(ALSOKNOWN As INTERK.~TION,I-NIDEU$TRZE;-
& HANDELSBETEU~GUA NG.3N AND FORMERL TAMED INTER-
NATIOUATX GESELLSCHA F~TBC'HEMISCH UENTERNEH~NGEA N.G.
(T,GCHEME) AND SOCI~~É TERN NATIONAL POUR ENTREPRISES
CEIMIQUE SS.A. (1.CBEN~E ), CQRPOR~TL ADD RESJ:RASLE,
SWITZERLA NDA,NTTFF

TOX A:CLARKA , TTQRKE GYEI~~ER O~~TRE UNITED STATES '5 SUC-
CESSOR TûTHE ALIEN PRO~RTV Crrs~ornmA, ~nmss : DEPAKTMENT
OF JUSTICE, AND~ r ~~ ~ A,JU~IAN, TREAÇURE R'FTKE UNTTED
STATES ~D,DRESS: TRE-~SURDYEPARTME NET,XD.4NTS

T.This actioarises undthe Fifth Amendmentta thCmçtitutim
ofthe 'UnitStatesandtheTrading\riththeEnemy Act ofOctober6,
1917=,amended,(U.S.C.Titi50,Apyendix,Sectionz t38,inclusive).
BotZidefendants are padiculasud undw Section (a)ofsaîd Act
and are requirtoretain the propeormoney soughtherein pending
the autcomofthisactian.
2. Plaintiisacorporatioorganize underthe law6f the Çonfcder-
ation oSwitzerlançl, has itsprinofficatBasle, Swîtzcrlanand
isand alwayshas baeu. a citizen of Switzsrland. Ttshasmbeen
changedfmmTnternation Gesekchaft EürCheniischcUnternehmnngen
A.G., (1,GChemie)and SociétéInternationale poEntrepriseChi-
miques S.A(1.G-ChernietaSoci&tInternationalpourYarticipatiunç
Industnclleet Çon~rnercialSA, kind InternationalIndustri&-
HandelsbeteilipngeA,G .and it inow commonly somctimes call~d
''INTERFT..IYDEL",

3. PIaintiJçoot,nor aanp ofthe timeshereispecifiedor matetial
hereto has bean,enemy or allofbemg oftheUnited Statewithln
the nieaniofsuchterniunder thc said TradingwithtEnemy Act,
nar a naticinoia dfiignateenemy cciuntq witEiinthrnmning.of
any lawexeciitive or vesting oorgowirnmental '-ulation.

4. On and priortoFebniary 16,~942,and conthuously thereafter,
plc~intwasandmithe ownerofz,op,oaoshwç oftheQmmqn 5 stock,
and 45$,#8 shareoftheCornmon-4 stock, oGenetalAniline -&Film
Corporationof a valuein excessof One Hundred Mfiiion Dollars
{$roo,o~o,o~~j.362 APPENDIX TO U,S.PREL, OBJECTIONS (E-. 22)

all dividendsjiricludingstock of tlieplaintiffcorporation)and avajls
thercof and al1right, titland interest therein.
(3) Judgmentfor the castsofthis action.

1-3.Plaintiff incoprates inta and rnakcs a part of th comt the
averrnents çontaiilerl'inthe first, seconcianthird paragaphs of the
5rst count of this Cornplaint.
4-On arid pnor ta February rj, 1943~and çontinuously thereafter,
plaintiff!vasandis the ùtvner lo174 shues ofthe CommonA stock of
GeneralAniline & Film Gosporation, ~f avalue in e'tcesof Thirty-five
Tlmrisand Dollars ($3ej,o~a,oo).

g. On Febniary r5,rg43,Han. James E. Markham, a5Alien Property
Custodian. and the-n1e--eccssorof the defeiidant Clarkin this action.
imed his'~estin~Ordcr No. 907, whereby he illegally~ized the aior&
said shares ofstock and veçied the same in liimselas siich Custodian.
6.That effective on,to-wit;October rg, 1946, by Executive Order
No. 9785,the Officeof Alien Propertp Ct~stodianwas terrninated,and
al1autlioritg, rights, privilcga, powee, duties andfunçtions vcsted in
,saidWce or Custodian, or transfelrorldelegatedthereto,wae vested
in andtransferredand delqatcd to the Attorney General, tobeadrninis-
tmed by Tiim,and al1property and interestsvested in and transferred
to the AIien Froperty Custodian, or seizedby hirn, and al1 proceecis
thcreof, weretransferredto theAttorneyGenerd ;and thatp,~rrsuantto
said ExecoZJ~e Order, said slzares anow in the possession 05oneoftl-ic
,defendaats inthisaction,namely, Hon. *dom C. Clark Attorney General
ofthe United States,asthe snccessortrithe AlienProperty Cwtodkn,
but they are held illegdlyby him.
I
7. Thatsaid sharesofstoclcwere seivedand vesied and arebeingheld 1
without warrant of laxv and in violation05 the Constitution of the
United State s,d without the consen tfthe plaintiff. I
S.On or about June 2, 1948p ,Filntiff dulfile. with the defendant
Clarka Notice ofCIaîmunderotzth, tvith respect to the aioresaid shares
of stock,in the form and containing the pmticulars required hy the
Alien Property Custodian or by the defendant Clarkashis successor.

y.Defendant Clark is retainhg theaforesaid shares ofstock, omed
by andbdonging tothe plaintiff, without warrant lawand inviolation
ofthe Constitutionofthe 'UnitedStates,and tl-ieyshouldbe returnedto
*thepl~ntiff asth,esole owner thereof.
IO.The dtferidant,Wilhm A, Julian,Trmurerof the United States,
issued as a defendant in this count by virtizeof the provisionsof
Sectiong (a)of illesaid 'Tradingwith the Enemy Act, because cash
dividends which l-iavebeen received bv tllc defendant Clark and his
predecessorCustodians upon the sharesof stock describecherein areon
depositwith and inthe possesçionofthe defendant _Tuliarn an accorint
irrtheUnited States Treqnry in the nameof the defendant Clark, and
a& wmngfully ailil illegally hebg the said defendant Julian. APPENDIX Tb U,S, PREL-OBJECTIONS(EXH. 23) 363
l

'(r) 3~d~rnen-tthak entitlto the retuim and immediate pnssession
oftheshares ostockdeçcribed ithe4th pasagraph hereaf.
(2)Judgment thatthe defendants,rcspectiveiy, accaunt and
deliveand transfcr sasharesofstocktothe ylaiatiff, together tvith
al1 rlividen(including stockthe plaintiff corporatand nvails
thcreof and dl rigtitland intersitherein.
(3)Judpmt for thcostsofthis action.

SocrBr&INTERNATION POU RPARJ'ICIPATJ I~W STRIELLE ~~
CO~EKCIAL S.S.(ALSORNOW AS I~T~IK.UATION INDEU$TRTF-
& FX.~NDELS~E~~U~U AG,G;E;ND FORMERL NAMEDINTER-
,NhiA'rIOGESELLSCHA FÜTRCNEMIÇCH ENTEIZHXRMUNÇEX A.G.
(1,G. CHEMIEA, SOCICTÉ I~TER~ATTON~ P:OUR EYTRFP IREÇ
CHIMIWUE$ ,A.(1.G.CHE~~ZE).

DIsnrm or Co~uamra,ss:
1, WALTERGER~NN,Managerof the corporatinamedas plaintif£
in theahve entitled civil acdoosolcrnnly sweathat1have read
the Eoregoingcornplaiiit know the content'thereof; and thaE
verily belithe stiitements made insaid cornptobethe.

[SworntoOctoberzr, ~9431 (SigradWalterGerniann,
WALTER GERMAM-J.

CiviActionNo, 3460-48

SOCTET TERR.%TIONALE UR PA~CTPAZ~O NDVJSTJUXLLESEf
COMMERCIAL S.SA,, ETC. p.Ge CHEM~E UIXTIFF

J.HOWA MRcDnarrrATTORNE GYENEKA OL THE UNTTE DTATES,
SWCCXSSORTOTHE AUEN ~ROI>ERTYCUSTORIA NTAL.,DF3E:KDAXTS

The defendant5,HowardMcGrath, Attorney GeqeLal,assuccessor
tothe AliePrùpmty CtistodiaandGeorgia Neese ClarTreasrirerof
the UniteStates,for theanswertothe cornplat.lierein:
Denyeachand evwyallegatiüncantained in the candpatapphs
oftheqo,mpIaint(andnot rncrely the allegaof paratgmphswhich are in theirmtirety expressly denied below),except those paragraphs
or allegatims as are hmeinafter expressly, and not by implication,
admitted.
With respect to the specificoun-tsand paragraphsof the cornplaint,
the defendants;

r, admit ht; the actionpurports tohe bsotightandthe jurjsdiction
oT thecoirrtisZnvoked tinder theEifth ,beridment to the Constitution
.ofthe United Statea nd the,Trading.with the!Enemy Act.,as amended
(W.S. Code, Title 50, Appendiu, Section r, etseq.), and puticularly
Section g (a)thereof.
a. Admit, onInformation and helief; that the plaintisacorporation
organize under the laws of Switzerland nnd that Its name lias been
çhangefd mm Internationale Gesellschaft fChemischeUnternehmringen
A.G. (IL. Chemie),anclSociété Internationalepour 'Entreprises Chimi-
ques S.A. (I.G. Chemie), to Sodtk Tntemationale pour Participations
Industrielles et Commerciales S.A. and Internationa Ilelustric-& '
Handelsheteiljpngeii A. G. ;.anci. i"now comrnonly samctirnes catled
"Intesliandel".
3, Deny the auegations ofParagraph 3. .
4. Admit, on information and belief,that 2,050,000 sharei;of the
Cornmon B stock,and 45~~ 443shares ofthe Cornmon A stock of heral
Aniline 4 Film Corporation may have a idue inexccss of One H~mdred
Miilion DoBaarç($zoo,ooo,ooo.oo).

executedt andt issueda Vesting16Order2,whereby,etder odia, shares of
General Aniline& Film Corporation of the description and nurnber
referred toinPatapaph 4, Flrst Count, r;%+, were vestecl under the
. Trading with the Enemy Act and Executive Orciers and regulritions
issuecitheremder. Said Vesting Orderis filedwith and published inthe
Fedesd Register(7F.R. roqb), A certified copy thereof is attached hereto
as Exhibit A and by tliis referenjsincorporated herein.
Admit tl~aton April24, 1942,the Mien Property Cuçtodian cxecuted
and issued Vesthg Order Nw. 5,whereby the ~hares of stock of Generai
Aniline & Film Corporation coi~ered by the aforamentioned Vesting
Order jçsuecl hy the Secretarof the Tremry on Febmary 36, 1942,
were vestcd,under the Trading with the Enerny Act and Exccutivs
Orders and rcgulations issued theteunder. Said Wting Order Yo, g is
filed witiand puùlishedin the Fecleral Register(F.R.3~48)~ A certified
copy thereofis attached hereto as Exhibit B and hy thiç refcr~nccis
incorpoxated herein.
Admit that-pumant to çaid~es&g OrderNo. 5 the Çecretary ofthe
Trmsury delivered, transfmed aiid assîgned to the Alian Prvperty
Custodirrn ,~terdia, sharesof stockof GeneralAniline & Film Corpo-
ration ofthe descriptionand nurnber referredto in Paragraph 4, First
Count,szc9ra.
6, Admit that byvirtsre of ExecutiveOrderNa. 9788 ,ated Qctohr
14, ~946,and effectiveOçtobex 15, 1946,filedwith and published inthe
FederalRegiçter (ïr: F,R. XI~SI e,ror corre~fcdXI F.R. IZTZ~), the
Qffrce of AlienProperty Custodian waç terdnated and the Attorney
General bbecame the szr&essorto the Men Property Custodian. Admit khat pursuant to saidExemtive &der shm of stockof the
General Aniline $:Film Corporatioizof the description and number.
referredto in Paravaph 4, First Coun t,SU$^, md VCS~C~ under the
aforernentioned Vesting Order of February 16, 1942, and under the
aforementioned Vesting Order Na. 5,wwe transfmcd toand are now
astsuccesscir ta the Alieii Property Custodian-i,Attomey Generzil,

7. AdmitEliatshares of stock tithe descriptionand nmber referrcd
to in Paragraph 4, Fist Count, stcp~u,and vested urider the 'tresting
Order af February ~6,1942,and under Vesting Order No, 5,were seized,
vested and are bcing held tvithoutthe consent ofthe plaintiff.
S. Admit that on orahout Febniary r, rg43,theplaintifffiled with
the then Ofice ofAIicn Property Cristodiana document under oafh, in
the form requiredhy tliAlien hoperty Custodian, entitled "Notice of
Claim forReturn ol Proycrty" with respect to 445,443 çhares of the
A stockand 2,050,000sharcs of theB stock of tlie Geiieral Anilir9:
Film Corporation and al1dividcndsand incremen t onsaidshares,vestecl
underVesting Order No. 5,
Admit thaton orabout Jim z, ~948,the plaint% filedcviththe pre-
deçessor of the defendant j. Howard McGrath, ,4ttorney Gene~al, as
successor tothe Ahen Properiy Custadian, a document wdcr oath, in
the forrn reqiiired by the predecessos of the defendant J. Howard
McGrath, cntitled "Noticeaf CIaimforReturn af Prolxrty" witli rcspcct
to the aforesaid stock,dividendsand increment,
9, hny the!allegations ofParagaph 9.
IO. Admit that plaint* purports to suethe defendant Eeorgia '2'se
Clark,Treasurer of the UnitedStates,nnder Sectiong (a)of theTrading
with the Enemy Act, andthat cash dividends wccived by the defendan t
J.HarvardRlcGrath, Attorney GeneraL,assiiçcessotothe Mien Property
cuçtodian, and his predeceswrs as Alien Property Custodian m the
&ares. of.stock vested.by. VestringOrdes No.. 5.are on deposit.nrih.
defendantClarkinan account intheUnited StatesTreasuryin the name
of J. Rotvard McGrath, Attorney General, as successorto the Alien
Yroperty Custodiari.

1-3,The defendants repeatthe allegaiionand denialsof their answcr
made in,Paragraplxsr to 3,FirstCount, saz$r@.
4. Admit, on informationand hclief, tha176 sliarcsofthe Cornmon
-4 stock ofGeneral Aniline & Hm Corporation may have a value in
excess ofLIlirty-five Thousand DoIlan ($3-j,ooo.oo).
5. Admit that on February r5,1943~ the Alien Property Custodian
execrrted md issued Vesting Order No. 907, whereby, infer a&ia,176
sharesof theCornmon A stockof theGmed ilfirli& FiLniCorporation
were t-ested iuider thTrading with the Enemy Act arrd Executive
Orden and replations issued thercunder. Said Vesting Qrder isfiled
~vith and yublishedin the Federal Register (8 F.R. ~453) A~certified
ccipy thereof is attached heretas Exhibit C and by this refcrence is
incorporated herein,
6. Admit that hv Mue ofExecutive &der Mo, 9788,dated October
14,1946, and effectiveOctobe~ 15,1946, fil& with and publishcd inthe Fedcrd Rcigiste(rr F,R. rrgar,errorcurrected rrF.32 ,212.3)t,e
Office illienProperty Cuçtodian was te-rminated and the Attorney
General.became the succesor tothe Alien Pt~perty Çustodian.
Admit that pursuan to said Exmutive Order shareq ofstock of the
descriptionand nurnbesrefmed toin Paragaph 4,Second Coun t,sztflva,
and vested under Vesting QrderNo. go7, were tïmsferred tothe prede-,
McGrath,fAttorneyGeneral, tassuccessortçtheAlienPropertyCzis'rdan.

7. Admit that the shares of stock o:fthe description ancl nuber
referredtu inParagaph 4, Second Caunt, s~pra,and vested underVest-
ing Order No. 907,were seized, vested anCla~ heing hdd wizihot~tthe
consent of theplaintiff.
8.Admit that on or about June 2, ~948,the plaint8 filed wit'lthe
predecessorof the defendant J.Howard McGrath, Attorney Ceneral, as
successor tothe Alien Proprty C.ustodian,a document underoatli, in
tlx ferm required by the predece$sor of the defendant J. Howard
McGrath,entiticd "Notice ofClaim forKetum af Property" with respect
to 176 sharesof the A stock of the General Aniline &Film Corporation
and al1 dividttndsand inmment on said shares,vested under Vesting
Order No.907.
g, Deny the degations o.fPmagaph 9.
YO. Admitthat plaint* purparts te sue the defendant GeorgiaNeese
Clark T reasurerofthe United States,under Sectiong (a)of the Trading
UJith theEnemyAct, aritdhat cashdividends receivedby the defendant
J.Hotvard McGrath,Attorney Geneml assucceçsortothe AlienPropesty
C~~çtodian,and his predecessors as Alien Property Custodian on the
çhares of stockvested by Vesting Order No. -07 art an deposit with
defendant Clark inan account in the United StatesTreas~~qrin the
name of the defendant J. Howarcf l\lcGrath, -4ttorne~~General, as
simessor to the Alien Property Custodian.

r. Upon infom~ation and belief,the defendants dege that between
about 1928 ,he exact date 'beingunlenom to the defendarlts, and the
çurrendrr ofGemany in rg45,alid thcrcafteto a the unknamn to the
deferidants, the plainticngage dnand participated ina conspiracy or.
lm, which had hwn inexistence since ahoutrgzo , ith1.G.
carnion,l!cl.GreiiteretCie,,Basle,S~itzerland (and its successoKrm,
H. Sti~riseneggeetCie.),and others unhom to the defendants. -4mong-
the CO-conspiratorswcrethe siibçidiarypreclecessoand ccintrollecom-
panies of'theplaintiffof I.G.Farbeil, of H. StsirzeneggeretCie.,and
the offteersdirectors,stockholders, agents, and representativeof. the-
CO-conspirators.The ultimatepurpose and objective ofsaid çsnspiracy-
or cornmon plan wasto conceal,camouflageand cloak the ownership,
coatrol,and domination,by LE. Earben ofpropertiesa-ridinteresitn.
many coiilntries of the worlcl,including tUnited States,dhor than
Gcrmany, Amnng thc variaus purposes and objectivesof tlie said,
conspiracy were toassisi1.G.Farbeli :
{a)Ta escape, avaid, or evade the txx laws of the Gelrma~
gaverriment ; (bjTo escape, avciid orelrade the tax Iams, the lam aimed aE
foreign-avineclpropcrty and other I'LWSof the co~lntriesin whicli
said propertim and interests were Iocated;
(c)To mate and mairitain reserves ofproperties and interests
which codd IicreaIi~edin non-German, sotmd çu~rencies;
(cl)TQavoidthe effectofanti-Gcrrnan andanti-foreign sentiments,
iincludingboycotb of Cerm,m and foreip-made goods, in the
cçsuntriein wiziçli saiprtiperties andintwests were locatad ;
(e)To conceal,cxmotiflageand cloak the ownemhip, control and
domination by I,G. Fxrben ofproperties ad interestslocated in
çountries,inclubg the UnitedStates. other than Gerniany,in order,
toavoid sebure and confiscation in thment of $var bctweeii sinch
cmntries and Germarip.

In the purposesand objectives stated mder [dl and le)above, the
namd conspiratorsconspired with the government of the German Reich,
2. To effettuatethe said conspiracyor cornmon plan, the narned
conspiratorsand others,Aeceased and unknùwn to the defendants,used
diversplans. mems, methads, actsand devices,iirclirdibut not limiteci
to, the followlng:
(a)Catised the plaintifto be organiizedinthe ycar 2928;
(b)Çaused blocks ofstock inthe plaintifte beissued to,trans-
ferred among, and held bycorporations, partnerships,consortiaand
individualsawned, controlIed ordominated by 1.G.Farben ;
(ç)Çaused General Aniline & Film Corpumtion(originally knùwn
asAmericm I.G. Chernical Corporation) to he organixed in the
year 1929;

Film Corporationctoçbz issuedto, transfmed among, and held by &
cor mations, part ne=hlps,consor tiaand Lndividuals owned , con-
tr[ ed or dominated by I.G. Farheri;

[e) Caused corporations te be ogarii~ed and stock to be isçued
raused the management,andcontro bandhoperation ofcorporationsrand
pmitnersJiipstobe entrusted toagents,representative;anc?associates
of I.G, Parhen and others xesponsible and loyal to J,G. Farben;
causccl,for thesepurpases, agreements tol>enmde by andhetween
t.hcco-conspiratç orns;d loms and optionsto be given andtaken
with respect tothe ymchase and sale of stock, stock certificto be
secteted, applicationsto be made and favorabl acted upon by the
government ofthe Germam. Reich; atvaious times unknown to the
defendanés and in detailsainknowi-rtothe defendants ;
(f)C,aused io be executed agreements andcontracts affecthg
çubsidzary,associate and independent corporations, parnmhi ps,
associationsand indiriduals,bvth respect to des, patents, patent
licenses,technicd e,upcr:rienc, now-how and other makters forthe
purpose ofretaining, ho-ng and exerciçingcontra1and domination
hy I.G. Farben of such srabsidiary,associate and independent
corporations,pwtnerships, associationsand individuals, at various
timw unknown tathe dcfcndalratsand in details unhovn to the
' defmdants; APPBNDlX TO U. S,PREL. OBJECTIONS (EXR. 23)

(g)Held meetings and discilssionin Gesmany,Switzetland, the
United States and other places unkrtown ta the defendantç, at
variouçtimes unknown to the defendants ai~din details unknm
to the defendants.
3. Bv reason of the foregokg,the plaintiff anthe propmtyclaiincd
by the Elainti~ arenernyand enemy tainted,and,tkiereforetheplaintiff
Eranso standing toinstittite or maintain this action.

1. This cmnterclairn ariseundcr z6 U.S,C., Secs.3740and 3744 and
Sm. .24 (1) and 25 (5) and 24 (20)af the JudicialCode (28 TJ.S,C,,
Secs,qr lx)41 (5) and 4r (go)).
2, This criunterclaiispi-osecutedundmthe authorityofthe Attorney
General at the r~questof the Commissianer of Internah Rcveniie,
3. Onoraboiit Xovember 8, rgzg,the plaintfherein andthe Standard
Oil Company of Rew Jersey,a corporationorganiz endder the lalm of
the State ofDelaware, bv theiragents and representatives executed a
contractandonNovernbir 22,1929,the aforesriirlpartiespedomed and
dixhargcd aforesaid contractiilthe City of New York, New York, at
rvhichtirneand place infrillclischa~gand pe~formar~ceaf theaforesaicf
contract thc plaintiff delivereto the Standard Oil Company of New
3erxy thrcc copies afso-calleFom Party Agreement and one thoirsand
sharcs (r,oooof stock comprisingthe entire a~ithorizedshareofcapital
stock of the Atlantic BingerCompany, n corporationorgmized iinder
the laws ofthe State of Delaware, and, itexchange ruidconsideration
for tlic afora~dperformance on the part ofthc plaintiff, StandardOil
Company of Wcw Jersey then and thwe transferred <anddelivered to
pllaintiff ontliousand (1,000) sharcs ofstock ccirnprisingtlic en&
amoun t ofthe authorized capital stock af Q1dShareInvestrment Cornp.
any,a corporation nrganizedunder the latvsof theStatc ofDelaware.
4. The coçt20 the plaint8of thedoresaicithree copiesofthe so-cdd
Four Party Agreement wasni1 and thecost tot'lieplaintiff the afore-
said one tl-iousand(~,ooo)sharcç of stock of Atlantic BingeCornjiany
was $2~85,714.2 and on afortcsaiday thefair market value ofafore-
said Olcl Sliams Invesbent Co. stock was $35,ojg,366.31.On tl-1Us
exchigc onHovember 22,1929, the plaintiff realiiradnet profitor
gain ofnot les5 than $32,673,652 .0er.after forthe calendm y-
1930,1931,193 a2, 1933the plintif£ earned and reccivcas dividends
onthe OIdShares Investmerit Cornpan ystock not lesthan Sr,++6,3~4-25~
as follows:

5- Wlth respect to eachof theyears aforesald, 1929,1930 ,931,r932
and 1933, plaintifneglected to file setum of its inçome fmm sources
withlrithe Unitcd States and nosueh retum for any year was fiieby
plaintifor by any one on its behalfat Baltimore, Maryland, or ai any other place,sa thatneither the gainfrom the 1929 exchmge hereinabove
referred to,izorariy of tlie dividends receiveidthe subsequent years,
Iias ever be&ntàxed, The failureto filereturn for eachyear was willftil
and with the purpose and intent of evading the incarne tax on the
income of plaintifffromsourceswithin the United Statesandwith intellt
I to defraiid the United States of itç taxwjth respect to that inc,ome.
6. dl times from Novemhcr 22, rgzg, toand iricluding thpteserzt

1 the, plainfifithrniigland by ils ageihandrepiesentativer haswillfidlv
and fsai~dulentlyconceded and secreted tfieaforesaid gain or profiand
incorne from the Bureau of Tnternal Revcriiie and wiUfuIland intention-
ally misrepresented to agentsofthe Burisauof InternaiRevenue niaterial
facts in connection vvlt11he aforesaid gain or profitand incorne.
7,On or about Septembw 21, 1948, the Commissioner of Intemal
Revenue, pirssilanttoand in compfiance with the rulesand bregwEations
of the Bureauof Interna1Revenue, notified the Qtficeof .MienProp~i-ty
of a pending tentative tax liability in the amount of SII,II~,~OQ.QO
against the plaintiffhharein for thc lars 1929 to 1933 inclusive and
directcd that the Cornriiissiorietof Interna1 Rcvenucshodd be adviçed
of angrpsoposed reléaseofproperty whiclr would rerlticthc value of tlie
prop~rty held inthe iiccount of pIaisitiff tan amount legs than
$11,if 2,000.00.
8, On orabout' Octaber 27, 1948, pursilant tathe RLI~ and Regu-
lations ofthe Rnreari afInternal Revenue, the Office ofAEien Propity,
Departmcnt of Justice, notifiecl thGommissionerofln ternal Revenite
that the plaintiffherein had instituted an actionseekinga retum of its
deged proyerty 1-ld hy defendants hwcin hy virtueofaforesaid Vestifig

Orders Nos. 5,907, 6-7~8C, i?*,6768, 6769 and 7574..
g. On or aht Xob-eniber 12, 1948, the CommisGoner of Tnternal
Revenue notified the AlieiPropertryCustodian that on information and
facts hc had determined that for thc'cdmdar years xgzg, 1930, 1931,
1932and I933 the pIaintiIIadnet incomc of:not lesthan $3q7rrq,g7B,zS
and that an ndjiistment af the plaintiff'income tax liability focicli
vear appcared warrantea dnd thatsuch xdjustrnmi tfüic deficienzics
mi th pend ticswac in the aggsegatearnount ol $6,6oz,zqS.e;6.
re. Tlicreaitcron an assessrne lnttdated Januarv 28, 1949, the
Cornmissioner ofInternal Revenue asmsed agaiast the plaintif[taxes,
intcrest, and penaltiesas fallows:

r Incame3'ax ?j%P~nalty joQ/,Penal@ Interest Total
i

r93o L3~995,042.64 $23.760-Gb391J747,.1.326 $1,fi~.@g."~ $9~3~~023.62i
w31 59,042.64 r4,760.66 29,5r.31 3S,513.59 1~1,83S-"t
x931 16,2~3.03 4.057.01 8,144~02 g,GrT.88 38,010.94
2933 6,085.T r,.5zrm3S 3,024.76 3#?39.32 r3,SSS,gj

ProfitTax ~ ..

19-33 z,a-s~.~r 553.23 1,10dq6 1,r77-93 5,a58j:

-', $9,4!?;>2'0.73 'fie assesmmt Est showing these ~~sessmentswas certiFredta the
Collecforof Interna1 Revenue at Baltimore, Maryland, on,to-wit,
Januwy 28,1944, and seceivd infils offion thatday or the next,and
îmmediately upon such receipt inhis officthe Collecior of Intcsnal
Revenue gave noticeto the taxpayer (plaintiff) imd maddemand for
payment, but no part of the tax soassessed, listedand demanded has
ever beenpaid. Iftbe plaintif£hasa properkyright witlirespect tu any
.propertv sued forin thisaction the United States ofAmerica has and
daims à Lienthereon asproyertybelonging to a delinquent taxpayer as
provided by Section 3670 et seq.of the Intcrnal Revenue Code, On or
about February 3',1949 the Comrnissioner of Intemal Revenue notified
Tom C. Clark, Attorney Genera?, as successor tu the Alien Property
Çustodian, ofthc assessrnentof these taxes,penalties,and intaeçt in
the aggregat oe$9,496,220 ;but3 the ta9 5s asessed or any part
.thereof has notbeen paid,

2. thedefendantsdemand jirdgment dismisang the cornplainthmeh,
togetherwith the costsand disbursements inthe action,

judgment onthedanFirstÇounterclalmthfortandnan behalf of,theeUnited
States, itlicamoun t of $g,qg8,zzow .73,interest.

Dated: Wdiington. D.C., March 4, 1949.

English officiatext,z United Nations Treaty Series,p.9. Signed at
Washington, xqAugust 1946. Received by the Secretariatof the
United Nations on 26 Angust 1946.
1,Wmny $, TRUMAN ,residenf of the United States of Ainerica,
declareon behaif of the United Statesof Amririca, under Article 36,
paragraph 2, of theStatute. ohe InternationalCourt of Justice, and
inaccordance witk theResolution of August 2,rg46, ofthe Senate of
the United Stztes of herica (two-thirds of the Senators present
concttrringtherein), thatthe United States of America recognizesas
compulso~y i$sofacto,and without special agreement,in relatioto my
othe~Statc acceptingthe same obligation, the jurisdictioofthe Inter-
national Courtof Justice in alegal disputeshereafter ansinconcerning
(a)the intsrpretat oifantreaty;
(bj any question ofinternationallaw ;
(c) the existenca£any fact whlcli,if estabfished,wouldcansti-
tutea breach ofaninternat ional obligation;
(if)the nature or extent of the rcparationto be made for the
breach ofan internationalobligation;
Puovided,that this dedaration shdl not apply to

(a) disputesthe solution of which the parties $halentrust to
othertrjbunals byvirtue of agrecmetsalready in existencorwhich
may be conçluded in the future;or . -(b]disputeswith seprd to matters which are eçseatiallwithin
the dùmestic jutisdictioof thc United States afArnerica as de-
termined,t bhe United Statesof America; ,r
. (c) dispiites ansingunder a m~ltilateraltreaty,unless (1) nt1
pwties-to thetrcatyafiectedby thc decisiciaredso pmies to the
, case beforetheCourt, or(2)the 'UnitedStatesof America specially
Wes to unsdiçtion;and

PmvSdcdfia~dhert.iatthisdeclasatioshaIlremin in forcfora p~rjod
of diveyears and thmafter un tLlthe expiratio fnsix manths dter
noticemay be glven to terminate this declaratio-.

DECLIRAT~ OPN~~flGOYERN~N TFSWI~ERLAN UNDDER ARTICL E6;
PAI~AGRAPH 'F,THE STATUTE OF Tm ~XTÉAMATIDNAL COUR TF
JUSTICE

Tr'ranslatedfrothe ~rcn& officialtexby the SecretadatoftheUnited
Nations. Signd at Berne,6 July 1948 , eceivedby theSwretariat of
the'United Nations on 28 July 1945,
THESWISS FEUERA~ C,OUNCId Ly,ly authan~d forthatpurposeùy
a Federal Order which was ad~pted on 12Ma~ch r948 by the Federal
Plssernhlof theSwiçç Corifderationandput into efFecton17Junc 1948,
herebydecllr~eshat the Swiss Contederation.iecrignizeascompulsory
t$sofactomd without specialagreement, inrelationtoany other State
acçeptingthe same obligation, the jrirjsdiction of the International Court
of Jiistice i31legaldisputes conceming :
(a)t'e irrterpretatiof atreaty;
(b}any question ofiintcrnationa2kw;
(c)the existence ai anhct wlilchifestablislied, wocrldconsti-
tut.ea lxeach of aninternational obligation ;

(ilt)e nature or extent ofthe reparation tcik made for the
breach ofan international obligation.
This dedaration which ismadeunderArticle36 of thestatute a€the
hteri~ationd Court ofJustice-shall takeffect iromthe dateonwhich
the Swiss Cunfederation becomesa partyto that Statuteand shd Iiave
effectaslong as ithas notbeen alx-ogated subjecto me year's notice.

Tmd'mgWith th Enemy Act, qo Stat.4x1, as amended,50 U.5.C;
App. r,d seq:

.*....... 1 .......*. I I . * . *
(b) Ditrinthe tirne of wauor during ariyother period of national
tmcrgmcy decl-aredbythe Presidmt, the President mav, though any
agency that he may designate, or othenn'~and under'suchnrlec:arid President shall deem p-racticible,suçh securities shallbe sold and the
procceds deposited inthe Ilf-easury.
Ali other propertyofan enerny,orallyof enerny, convejred,trançferred,
assigned, dehvered, er paîd to the alien proper-tycustodian 'hèreunder
shall be safely lield and administe~d by Iiim kxcept as hereinaftk
provided; and the President iç autlrarizedto designate as adepositâry,
- or depusitaries,of property of an eilernyor allyof enerny,any bank, or
banks, or trust company. or trust cornpanies,or other suitable depositary
or depusitaries,located and doing business in tlzeUnited Çtatès. The
alien property custodian rnay rleyosit withsuch designated deposit+
or dcpositaries,orwith the Secretary of theTreasuy, any stocks,bonds,
notes, time ddts, tirne bills of exchangor other securitics, oproperty
(exeptmoney or checks or draftspayable on dernand which are required
to he deposi.tedwith the Scçretary of theTreasury) and çiichdepositary
or depositaries shall bc authorized and ,emyowered to coileci any
djvidends or interestor income chat may becornedue and any maturing
obligations held for the accountof suchcustodian, Any rnoneys colleeked
on said accoun tshall be paidand deposited fort1wi tlzI3ysalddepositary
orby the alien propertyci~stodianinto theTeasurv of the UnitedStates
aslicrcinbefarepsovided.
'UiePresideni shdl reqtiixedisuc11 designatecldeyoçitariesto execute
SUG~fbondsonto befconditionediasjhegmay direct.ect property on deposit;
The alien yroperty custodian shall bevested ~4th ailof the powers of
acammon-law truste inrespect ofdl propesty,otlier than money, whiel-i
has been or shall beor which haç been or shall berequired tobe, coinfey-
ed, transferred, assignecidelivered, oryaid civerto kim in pursuance of
thè provisions oftkis Act, ancl,Inaddition thereto, achg under the
sup-ei-k;isi,and dire~tion.of,th$ Rwidqnt,, and under,sirch -les ancl
regiilationsasthe Prwident shall prescril~e,shall have power to manage
suc11property anddo any act or things inrespect thercof or make any
disposition thereof or of any part therèof, by sale or otherwiçe, and
excrcise any rights or powcrs kvhich may be or becorne appurtenant
thcreto or to the ownerçhiy thereof inlike manrrer as thciugh he wwe
tlieabsolu se ner thereof: Provided, That anypropcrtysald rinder this
-4ct,excepi whensold tothe United States,sl~dlbe sald only to Arnerican
citizens, atpublic sale to the highest bidder, after public advertisemet
of the and placeof sale whjch shail Fe where the propesty or a major
portion thereof is;;ituated,unfessthResidentstating t.l.iereasonstl-ieref~t,
in the public interest shall othenvise detemisic: Provzded f~rthcv, That
~l-teisoldat 1i;uhlsale,the alienproperty custodian uponthe ordu ofthe
President stating the reaçonstherefor, shall liavethexight:torejea11bids
ad resellsuch propert ay public salor othlcrwiseas the Preçiderit may
direct.Any person pr~rchasing proprty fromthe alienproperty çustodiai~
Eoran nndisclosedprincipal, or for resalto a person not a citizen othe
United Statcs,orfor the benefit ofa.person not a citizenofthe United
States,orfor the benefitof a persan not a citizen of theUnited States,
shal be gui1ty of a misderneanor, and,upon conviction, sl~allbe subject
to n fine ofnot more thnn S~o,mo,or imprisonrnent for not'xnorethan.
ten years, orhoth, alid the property shall be forfeited' tu theUnited
States--1tshallbe the duty of cvery corporation incbrporated within the,
United Statcs and every tii~incorporated. assoçiatibfi'or:CO-mp ya."-or
4 ttustee,or.trusteesurithin theUnited States issmilg;shar2s'os.certifïcateç374 AP-NDIX TO W. S.PRBI,. OBJECTIONS (EXH, 28)
'
represmtingbcnefidalintcrests to transfer such sharesor certificates
upon its, hisortheirbooks jnto thenarneof the alicnproperty custodim
upon demand, accompanied by the prescntationof the certificateswhich
represent suchsIiaresor benefiçial.interatThe alienproperty custodian
shall fortlrwithdepositinthe Treasur yfthe United States, asherein-
bcforeprovided, theproc~ed os any such property or rights50 soldby
him.
Any money orproperty reqtiiredorauthorized by the provisionsof
thisAct tobe paid,conveyed, trançferred, assignecl,ordeliveredto the
alien propertyçusfodianshall,ifsaidcustodian shailso directby written
ordes, be paid, canveyed, transferrd, assigned, or delivered to the
Treasnrer of the United Stateswith the same effectas if tithe alien
property custodian.
enemy totlanynrnoney or other property receivednand heldfbyatheaalien
propertymstodian or deposited inthe United States Thasury, shall hé
settled as Congrcss shail direc:Providi~edaowevert,haton order of the
President as setfoxthin sectionnine Irereofor of thecourt,as setfmth.
in sections nine and ten hereof,the aIicn property cuçtodian m the
Treaçurer of the United States, as the c&e mjy be, shall forthwith
convey, trttnsfer, asçign,and payta tlieperson towhom the Psesident
shal ss order, orin whose behalf the court s'halenter Enal jitdgment
or dècree,any property of an enerny or ally af enemy held by said
custadian or bysaid Txeasurer, so far asmay he necessary to comply
wiih said order ofthe President orsaid final judgment or dccreeof the
court: And ~rolridefwlker, that the Treasurerof the United States, on
srder of the alienproperty custodian ril~all,as psovidedinsection ten
hereof, repay to thelicensee anyfunds deptisited by said licenxe.

For the Press]

May 21~ 1g46.

, The Delegations of Frace, Great Eritaia, md United States have
anived at agreement with the Swiss Dclegation m twe fundamental
questionswith which they have Been coriçern.edduringthe yast several
weeks. The decisions relate to the division cf German holdings in
Switzerlandand togold rcçdved bySwitzerlandhm Germany.
.Agreementis in generalterms, andçome detailremain tobe woiked
out inWashingtonon a technical level. The accordprovides that :
(1) Holdhp of Gemans in Gemany or Germanç subject to re-
patriation \vil1 be identified andliquidatedm trançferredto persons
acceptable toaII wncerned, This work $vil1be donc by aSwiss xgency,
which the SwissGovermefit willsetup,The Savissagency wilcooperate
with aJoint Cammiçsion composed ofrepresentativesof thethree Allied
governments and ofSwitzerland. Doubtful arcontroversialcasescvilbe
refmcd ta arbitration,
(2) The proce& af liquidation will be divided eqclallybetween the
Allia astrustleefor the countries clairning reparationsan5witze~land.
On their side, the Alliewill tum the funds they obtain over to the
Inter-Allied Reparation Agmcy for the rehabilitation of countries
devastated or depleteclby Germany. Procedure for the distributionof
these fun& waç provideii inthe Paris Reparation Agreement signed in
Paris inJanuary of this year.
(3) 'Ihe Allies wilaccept a payment of 250 million Swiss francs in
considerationofwhich thc governmentssignatory tothe Paris Reparation
Agreement wili waive theirclaim and thos of their centralbanks for
restitutionhn-i Switzerland ofrnonctary gold. Thismount wiUalso be
divided in accordancewith thc Paris ReparationAgreement. Thc amount
equalrjapproxirnately$58-1m 4illion.
The accord reacked on tlie above questions provides the bais fot
cùncluding in the neafuturethe aegotiatianu whichbegan in\Vashington
un Marcli 18,Tt provides asatiçfactoryrnethod ofpreventing the use of
G~xman assets for the finmcing ofa new $var.Et XISOsetttisamicalgy
difierences opn~iciplebetween the Alliesand thcSwlsson thegold issiic
and tlie allocation of the proceeof liquidation.
The negotiations are being conductedby Ms, Waiter Stucki forthe
Swiss Govemment, J'lr. Paul Ciriargueraudfor the French Government,
Mr. FmW. JTcCombeforthe Britisli Governrnent, and Mr,Randolph Paul,
Spehd Assistmt to the President, for theUnited States hverninent.

"Legation ofStvikzerland,
"SwissDelcgatiun,
'"mhilag.t#Z, D.C.
"May 25, ~946.

"G~NTLEM :~~
"In the course of the discussionswiiichhave taken place, theAllied
Gmrernments ullytecognizingSwiçssovereipty, ciahcd title to&man
' property in Switrerland by reasonof the capitulationof Germanyand
the exerciseofsuprerneau thority withiGermany, and sought the seturn
frorn Switzerlmd of goId stated to hairebeen wronglully taken by
Gcmany from tlie occupied countries durhg the war and tsanderred
to S~vitzerland.
'"The Swis Gavernrnent statsd itwas unable ta .orecopizthe legal
bàsls ofthese claims but-that itdesired to c~ntribute itsshre to the
1 pacificationand reconstruction of Europe. including the sendiog of
suppliesto'devastated areas. .
"In these circumstances we have amived at the AcCord whieh folloiivs: "1.The- Swiss Compensation Office sM1. pursue andcornpicte it+
investigations ofproperty of every descriptionin S~vitzerlandowned or
controlled by Germaris in Germa y and it shall liquidatesuchpsoperty.
This provision shd apply equdly to the property of such uthcrpersons
of Gcrmannationality asare to be repatriated.
"2, The Germans affected by this measure shdl be indemnified in
Geman money forthe property whlçh has been liquidatedinSwit zerland
gixsuar3tto this Accord. Ineach such case anidentical rate of exchange
shall be applied.

r'3. Sivitzerl~nd will, oof funds awilahle to iiin Gcmaii y,f~~rnish.
One-half of the German money necessaryfor this purpose.
"4. The Swjss Compensation Office shaU exercise the fmctions en-
tnrsted to it inclose cooperation ~vlita Joint Commission which shall
be.cornposed ofa repreçentative of eachofthe threeAllieilGovernments,
and a representative of thc Swiss Goverriment.The Joint Commission,
as ail interested private personsl~allhave aright ofaypeal againsi the
decision of the SivisCompensation Qffice.
"5. The Swiss Govemment will bear the cost.of the administration
and liquidation of Germari property.

"TI

"1.Of the proceeds of the liqhidationof property in Switzerland of
GermansinGermmy, 50 percent shall accrueta the Swiss Gavernment
arnd 50 percent shallbe lslacedat the disposal of theMies forthe re-
habilitation of coiri~trirlevastatedor d~.pletedby the war. including
tliesending of stipplieta famine rjtrickenpeople.
a "a,The Govmment af.Switzerland undertakes to place atthedisposa1
oj th three ,4lljecl,Gqvepqeqtsthe agoqnt +o2zq,o~n,ooo Swiss francs.
payable on dernand ingoldin New York. The Allied Gnvernments declare
on their part that, in accepte this amount, fhcy waive in tlieirname
and in thename of their hanksofissueal1claims againstthe Governent
of Switserland alidthe SrvissNational Bank inconnedion tvith gold
acquired during the war from Germany by Switzerland. A11qiiestioas
relative tosuch gold will thus beregulated.

:"The pmdurcs relating totliiapplication # the present Accordare
out inthe Anriex.

"r. 'The Government of the United States will unblockSwiss assets
in the United. States, The neceçsary procedure srrillhe determined
wjtho utdéllay. . .

"2. The AlLies wiU discontinue withoutdelay the'BIack listsh w far,
asthiy 'coricernSwit~erlai~d. 'me undcrsignedrepmen tative of thSwis Govérnmei~t declares on
his part that he iacting alsoon behalf a£the Principalityof Liechten-
stein.
"VI
"In casedifiercricesof opinionariswith regard to theapplication or
intapretation of thisAccordsvhich cannot be settled iany othermy,
recourse shall hehad to arbitration.

"This Accord andthe Aanéx shalltake effectupoiitheirapproval by
the Swiss Parliament.
"l'hisAccord and theAnnex have been writtenin Englishand French,
bath texts Iiaving thesamc validity,
"Verytrtily yotirs,
"'STtFçxz
"To the Chiefs af theAltiedDelegations,
"IVashington,D.Ç."

"A, Property in Swifzerlandof Cermctnsin Germanyaçdehed under
N bdow, hereinafterterrned G~errnanproperky',shall be liquidateclin
the followingrnanncr ;
"a.Persons in Switzenlandindebted toGemans in Germariy sliall be
reqvired to pay their debts into an account inthe i~ameof the Swiss
Compensation Office with the Swiçs National Bank mil thus l?l~solvc
themselves of liahility,
"b. AI1natuml and juridical persans inStvitzerland who in anyfom
administer Gerrnm property are trrbe requird tosurrenderthese açsets
to the Compensation Office.Such action will temiriate their liability;
The Compensation Office\vil1liquidatethepropeityand pay tlie proceeds
into the account mentioned under 'a',
"c. The Compensation OEce shall take titletoali participationsin
Swiss enterpriseor'organizatiorrbelongÏng to Grman sin krrnany and
shall liquidate them. The proceeds of lijuidation shaBe paid into the
account men tioned under 'a'.

'U. The Compensation Officewill similarly proceedwith- the tiqui--
daticinof anyother Gcrman pperty.
"c. The Joint Commission will give sympathetic consideration to
ases, brought to tlieir attention by tCompensationOffice, relatingto
prbperty of Swissoriginlocateù in.Switzerland and belongingto wbmen
of Swiss birth married toGermans and residing in Gemany, . .-
"B. :~he~ompensation officwillmake everyeffortwith the&iistance
ofthe Joint Commission tauncomr alltransactions ofa cloakingnaturewhethe-rby pawn, pledge, rnwtgage8 os otherwise, by which Çeman
psoperty was cancealed, and will ensure thelramiilment.
"C.' T11eCompensation OfFleewill notifytothe Joint Commission,for
transmission to the cornpefent authorities in Germany, the amouiit
realizedby the liquidationin eachcase of Eerman propertywith particu-
Jarsof the names and addreçscs ofthe Eerman owners of thatpraperty.
The comyetent authorities in Getrnany will take thenecessary rneasures
Iriorder that there will berecorded the tifleoftlieGerman oivners of
the propertyliquidated to teceivethe countm value thereof inGerman
rnoney, calculated at a iinifom rate of exchange, An amount equal to
one-lidf ofthe total of theindemnities accruhg to the German owners
wilibe debited to thecreditexistingiit the name of tlie SwissGovernment
at the 'Verrechnungskassc' in BerLin.Nothing in this arrangement shd
hereafter be invoked by one or the other party ta this Accord asa
precedent for thesettlement of any Swissdaim upon Germany nor shall
itbe alleged that the Allied Governent tkereby recognized any rigtit
anthe part of Swltzmlmd ta dispose of tficreditabove mentioned.

possesgon, and liquidate Gcrrnan pzope ctr,owered to uncover,talre inta

"Rd 'TheSwisçGovernmcnt sha1lcarryout this Accordincollaboration
with the Governments of the United States,France, and the United
Kingdom. For tlxk purprise there shall sit in Berne or Zurich a Joint
C~rnrnissioncomposed airepresentativeçof eacliofthefour Covetnmen ts,
which sl-ialactby maj oity vote, The functions of theJoint Commission
are enumeratedbelow.
"C. The Compensation O%ceand the Joint Commissioriwill enter
upon theirfiinctions x ssaonas possible after tlie corningintoforce of
the Accord.
"D. The CompensationOffice wilI exercise itrs functionç in collabo-
ration with the Joint Commission. It will keep the Jein tCommission.
pcriodicall infonned about its activities; it rvill replyto inquiries
suhmitted by the Joint Commission relative to the cornmon objective,
i.e., thnncovering, the ceiisus, and the liquidation ofGerman property;
The CompensationOfficewill consultthe Joint Commissionbefore rnakirlg
important deçiçions.The Compensation OtXce and the Joint Commission
shailplace atthe dkpposa lfeach other aU infomatioi~ and docurnentaty
evidencetikely to facilitate the accompIishment of tlicirtasks.
"E. The Compensation OEce shallas hitherto invmtigatre the locus
and status ofitems ofprûperty suspecteclby itor reported ta it bythe
Joint Commission as bbeingor believed to comprise a Gemm property,
OF to be of doubtful or disputed bona fide $%vis swnership. The con-
clusions of the Compensation Ofice will be discussed with the Joint
Commission.
"F. The Compensation Onice wiIlsettle, in generalar pàrticular, in
consultation withthe Joint Commission,the tem~s and conditions of saIes!
of Gcrman'prûperty, taking into reasonable account the national inter-
ests of the signatory Governments and thcise of the Smtissecanomy
together with the oyportunity ofcïlhainingthe bestprice and of favoringnfreedom of trade. Oiilypetsonsof non-Germannationality who are ina
position to present suitahleparantees \vil1bepermit ted io participate
in the pt~rchaseofsuch pmperty, and all possiblerneasureswillbe hkcn
to prevent rcsales to Grman persons.

'"lthe Joint Commissionafter consultation with the Comyensatjon
Oi3ce is unable to agreeto the decisionof that ofliceor if theparty in
interest ço desires, the matter may within a period of one month, be
çubmittéd to a Swiss Authority of Review. This Authority shaii be
coqosed of three members and shail be presiderl over by a .Judge, This
rcview wiiibe adrninistri ntfovneand the procedure shall be prompt
and simple. Thedecisions of the CompensationOffice, orof the Authority
ofReview, should the matter be referred to it,shallbe hal.
"Nevertheless, if theJoint Commission is in disagreement with any
decision of the Authorityof Review,the three ,411ieGovernments rnay,
within one mnnth, reqrzire the différenceto be submjtied to arbitration
asfollows: If the differeiice concernmattars covered by the Accord or
the Annex or tlieir interpreiationç,the difference may, if tlie AHied
Governments desirc,be submitted to anArbitralTribunal, This Tribunal
shall be composedofonememberdesignated hy ttre three AlliedGovern-
miinfs, a mernkr designatedby the Swis~Government, and a third
mernber designated by the fourGovemmen tç.Any çuch Bifferencetvhich
iç not ofprimary importance may, if the Joint Commission .md the
Compensation Office agree,be submitted for decision to the niember of
the Tribunal who ha ben designated by agreement of the four Govern-
mentç, who in such cases will sitAS the Arbitral Triburial,
"The Arbitral Tribunal &il not be restrictedas regards the nature or
proaf of evidençe prodiltcedheforc it and dl have full jurisdr'ctioto
consider al1matters of fact orlatvsubmitted to it.
'"The decision of the Arbitral Ttibiuial shalbc fiaaI.
"The expenses of the Arbitral TLibilnd slialbe a charge on the pro-
ceeds of the lipuidatioi~ of Gcm~an pzoperty, before their division.
. . . . Ir-. . , . i . i l l . *
"IV

"A. The tcrm 'property', as ilsed in the Accord and thiç *hnex,
includes al1property of evexy khd and description and every rightor
interest of whatever nature in property ncquired before the first of
Januarg, r948. For tliepurpose of the Accord surns paid or payable by
yersons in Switzerland tkrough tlie German-SrvisçClearing shall not be
regmded as Geman property.
"'33 l'lie expressionGwman iiiGermanybmeansal1~atural persans
resiùent in Gemmy and al1 juridicalpersans canstitirted or-having a
place of business or otherwise orgarsizedin Gcrrnany, other than those
organizationsof whatcver nature the omership or control of which is
held bypersons wIioarenot of German nationality.Appropriate masures
will be taken to liquidate tlieinterestsin Switzerland which German
nationals resident in Geman y have through sach organizations and
equally to safeguard subçtantial intefes tfnori-çleman persons svhich
lvould otl~erwisebe liquidated. "Gerrnans whohave been repatriated beforc the first January 1948.
or in connectinn with whom, before that date. a decision by th'&Swiçs
Autharities has bwn taken thait such personshould he repatriatedfrom
Slivitzerlandare to be considered as fallirig within the expression
'Gerrnans in Gcmany'.

"The Sw& &verninent unddakes, in mgnition of. the specid
çircurnstances,topermit the tlireAlliedGovmrnents to dm imrnedi-
ately up tn ~o,om,ooo Stvksfrancs uponthe proceeds of liquidation of
Gehan property against their share thereof.These advances will be
devoted to the rehabilitation anresettlementofnon-repatriahle victims
of Gman achon, tlirough the Inter-Governmental Cornmittee on
Refugees.

"VI
"A. Pending the conclnsion ofmultilateral arrangements to wlzichit
is the intention Ofthe khee AlliedGovemei~ts tc,invite the Swisç
Government to adhere, and pending the participationof the Swiss
Govemment insuçh arrangements, noksman-awned patent in Switzer-
land shall be sold or otherwisetransferred withaut the concurcnce of
the Compensation Omceand the Joint Commission.
"B. No Geman-owned trademark or copyright shall be sold or
transferred withoi~tthe concurrence of the Compensation Office and
the Joint Commission,

thehÇermanceState.includingproperty ofthe Reichshank and the Gemarrof
railroads.
"S~trcxr
"WAS~GTON, D.C., . .

"hfq 25,~9461' '