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Embassy in Berlin in response to its memorandum of December 4,

1914 [1917].

I am [etc.]

For the Secretary of State:

ALVEY A. ADEE

PROPERTY OF ENEMY AND "ALLY-OF-ENEMY" GOVERNMENTS AND OFFICIALS

File No. 763.72113/425

The Secretary of State to the Alien Property Custodian (Palmer)

WASHINGTON, December 24, 1917.

SIR: I have your letter of December 22, asking whether this Department sees any impropriety in demands being made by the Alien Property Custodian for property in this country belonging to German, Austro-Hungarian, Bulgarian and Turkish consuls.

In reply I hasten to let you know that this Department deems it unwise for the Alien Property Custodian to make demands for property in this country belonging to persons who while in this country were official representatives of a foreign government. I am [etc.]

For the Secretary of State:
WILLIAM PHILLIPS
Assistant Secretary

File No. 763.72113/469

The Secretary of State to the Alien Property Custodian (Palmer)

WASHINGTON, January 19, 1918.

SIR: The Department has received your letter of January 9,1 asking our opinion as to the advisability of your office making demands for property in this country belonging to persons who, while not consuls or in the Diplomatic Service, were while in this country the agents or representatives of a government or ally of a government with which the United States is now at war.

The Department has given this subject very careful consideration and is of the opinion that persons whose names appeared in the Diplomatic List issued by the State Department at the time of the severance of relations with the enemy or ally-of-enemy govern

'Not printed.

ment should be accorded the same treatment as regularly accredited diplomatic or consular officers.

I am [etc.]

For the Secretary of State:
WILLIAM PHILLIPS
Assistant Secretary

File No. 763.72113/466

The Secretary of State to the Alien Property Custodian (Palmer)

WASHINGTON, March 26, 1918.

SIR: I acknowledge the receipt of your letter of the 26th ultimo 1 in which you advise me of certain deposit accounts reported to you by the Riggs National Bank of Washington, D. C., held in the name of the Swedish Legation, Department of Austro-Hungarian Interests. You ask me to advise you whether there is any diplomatic reason why you should not demand that this money be paid over to you.

I am strongly of the opinion that, unless you have evidence that an improper use is being made of these funds, no attempt should be made on the part of this Government to acquire them. I believe that in this matter we should be guided by the practice of belligerents during our neutrality when we were in charge of the interests of other belligerents. While we were still neutral, the American Embassy in Berlin had on deposit in the Deutsche Bank and the Reichs Bank in Berlin, checking accounts for the British, Servian, Japanese, and Roumanian Governments. On behalf of Great Britain, the Embassy had on deposit at one time over 1,000,000 marks and also had a deposit account of about 100,000 marks in a special fund called the Sir Edward Goschen Fund. The Embassy was permitted to draw on these funds freely and there was never any question as to their use. The German Government was fully informed as to the purposes of the funds and was also informed on whose behalf they had been deposited.

Accordingly, I strongly urge, as a matter of policy and in recognition of diplomatic usages, that the funds in the Riggs National Bank of Washington, in the name of the Swedish Legation, Department of Austro-Hungarian Interests, be not disturbed, unless evidence is presented of the improper use of these funds, in which case the Department would be pleased to be informed thereof before any action is taken.

'Not printed. See note of Oct. 29, 1917, from the Swedish Minister, and the Secretary's reply, No. 295, ante, pp. 265 and 269, respectively.

In this connection, I enclose herewith a memorandum left with me under date of the 19th instant by the Swedish Minister.1 I am [etc.]

ROBERT LANSING

File No. 123G31/110

The Minister in the Netherlands (Garrett) to the Secretary of State

[Telegram]

THE HAGUE, March 26, 1918, 6 p. m.
[Received 9.22 p. m.]

2207. Spanish Embassy, Berlin, states German authorities have ordered Knauer (warehouseman) to deliver to them seven boxes said to contain gold and silverware belonging to former Ambassador Gerard. Knauer has been instructed not to deliver cases without authorization of Spanish Embassy, and protest against this seizure has been sent to German Foreign Office.

GARRETT

File No. 123G31/110

The Secretary of State to the Minister in the Netherlands (Garrett)

[Telegram]

WASHINGTON, April 1, 1918, 3 p. m.

1074. Your telegram 2207, March 26. Request Spanish Embassy, Berlin, to protest against German authorities seizing property in storage of former Ambassador Gerard as violation of diplomatic immunity recognized by nations generally as attaching to such property. Point out that Government of the United States facilitated forwarding of personal effects of Count von Bernstorff after his departure, and inform German Government that personal effects left in United States by former German diplomatic and consular officers accredited to this country, as well as by persons whose names at time of severance of relations appeared on Diplomatic List issued by Department, have not been taken over by American authorities, and that Government of United States expects that German Government will similarly respect property left in Germany by former diplomatic and consular officers of United States.

Keep Department fully advised in matter.

'Not printed.

LANSING

File No. 763.72113/504

The Secretary of State to the Alien Property Custodian (Palmer) WASHINGTON, April 3, 1918.

SIR: The Department has received your letter of March 30,' reporting certain transactions between Mr. John Simon of New York and Dr. H. Albert, resulting in Mr. Simon's indebtedness to Doctor Albert in the sum of reichsmarks 2,760,750.76.

The Department's letter of January 19 on the subject of seizure by the Alien Property Custodian of property belonging to persons on the Diplomatic List had reference only to property actually belonging to those persons, and if the Alien Property Custodian is satisfied that the sum of money which Mr. Simon owes Doctor Albert is in fact the property of the German Government, this Department perceives of no reason why the Alien Property Custodian is not authorized to demand it.

I am [etc.]

For the Secretary of State:
WILLIAM PHILLIPS
Assistant Secretary

File No. 123G31/112

The Minister in the Netherlands (Garrett) to the Secretary of State

[Telegram]

THE HAGUE, April 18, 1918, 6 p. m.

[Received April 19, 2.29 a. m.]

2239. Your 1074, April 1, 1918. Spanish Embassy reports German authorities state that threat to seize Mr. Gerard's property due to misunderstanding, and that German Government is disposed to respect property of American diplomatic and consular officers in Germany on basis of reciprocity.

GARRETT

File No. 701.6211/452

The Alien Property Custodian (Palmer) to the Secretary of State

WASHINGTON, May 28, 1918.
[Received June 1.]

SIR: It has been reported to me as Alien Property Custodian that the German Government owns in the District of Columbia, 51,000 square feet of land of the approximate value of $150,000 situated

1

Not printed.

'Former German Commercial Attaché at New York.

59665-33- -22

on the north side of S Street, between Phelps Place and 23d Street, Northwest.

It will be noticed that this property is distinct from the site of the German Legation [Embassy] and disconnected therewith.

I shall appreciate your consideration of this matter, in connection with the former rulings of your Department, and your advice as to whether this property is subject to a proper demand of my office.

Yours respectfully,

A. MITCHELL PALMER

File No. 763.72113/596

The Alien Property Custodian (Palmer) to the Secretary of State WASHINGTON, June 24, 1918.

[Received June 28.]

SIR: A considerable number of reports have been made to this office by Swedish consuls in charge of Austrian interests, and Swiss consuls in charge of German interests, in respect to certain funds held by these consuls respectively. The funds to which I refer are held by the consuls as the successors to Austrian or German consuls who at the time of the break in diplomatic relations were either (1) acting as administrators of Austrian or German nationals, respectively, who had died in this country, or (2) acting as collection agents for Austrian or German subjects, resident in their respective countries, of the beneficial interest of such subjects in estates being administered in the United States.

Unless there is some diplomatic reason to the contrary, I propose to make formal demand, in the usual form, upon the Swedish and Swiss consuls in charge respectively of Austrian and German interests, for the delivery of this enemy property to me.

Respectfully,

A. MITCHELL PALMER

File No. 701.6211/452

The Secretary of State to the Alien Property Custodian (Palmer)

WASHINGTON, July 8, 1918.

SIR: Referring to your letter of May 28, 1918 (Tr. No. F-555-CB report No. 3400), relating to certain property in the District owned by the German Government, I beg to state that this Department does not consider that the property should be taken over by your office. ROBERT LANSING

I am [etc.]

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