File No. 763.72113/402a
The Secretary of State to the Minister in the Netherlands ( Garrett)1
774. For publicity. A. Mitchell Palmer, Alien Property Custodian, today announced that there has been considerable misapprehension as to his plans and purposes in respect to property of aliens residing in the United States. He said that nationality or citizenship does not determine whether one is an enemy or ally of enemy under terms of Trading with Enemy Act. Principal test of enemy character is one of residence, place of business, or business connections. Subject of Germany or any of Germany’s allies residing in this country, even though he had made no declaration of intention to become citizen, is permitted to continue in trade and commerce and in possession and control of his property while he remains in the United States and obeys its laws. Broad purpose of Congress as expressed in act is first to preserve enemy-owned property in the United States from loss and, second, to prevent every use of it which may be hostile or detrimental to United States. Commerce cannot, of course, be carried on between residents of countries at war. In absence of general law for protection of money property in the United States belonging to those under legal disability, there might, without special action by Congress, have been very considerable property loss or deterioration. Property of every person under legal disability is in every civilized country protected by trustees or conservators to administer and care for property while disability exists. This is duty of Alien Property Custodian. He is charged by law with the duty of protecting property of all owners under legal disability to act for themselves while state of war continues. Act authorizes in certain cases a license to permit enemy-owned business to be carried on. Where such license is not applied for or not granted, Custodian directed to exercise well-defined authority of common-law trustee. Thus probable waste, and loss of much valuable property and property rights which could not, while war continues, be conserved by enemy owner, is avoided, and trustee appointed [Page 268] and paid by United States is charged with duty of protecting and caring for such property until end of war. There is of course no thought of confiscation or dissipation of property thus held in trust.
- The same, on the same date, to the Chargé in Switzerland (No. 1123).↩