In order to carry out this agreement, you are directed to urge the
Control Council to issue the attached draft decree, which would [Page 965] vest German external
assets. I regard it as most urgent that steps be taken immediately
to exercise control and the power of disposition over these
assets.
Law No. —
Vesting and Marshalling of
German External Property3
preamble
In modern warfare and under conditions of totalitarian rule the
instrumentalities of war include
privately owned enterprises and funds, as well as official
properties of the warring state.
Germany’s war of aggression was
sustained, not only by controlling her domestic economy, but
also by mobilizing her industrial and financial interests in
foreign countries.
In order to promote and maintain international peace and
collective security in the post-war world, it is necessary to
eliminate Germany’s potential for war.
To do this it is essential to assume control of all German
assets, wherever located, and to divest German ownership.
Therefore, by virtue of the Supreme
Authority with respect to Germany arising from the Act of
Surrender, May 7, 1945,4 and in accordance with
Article XIII of the Statement by the Governments of the USA, the
USSR, the UK and the provisional
Government of the French Republic, adopted at Berlin by the
Supreme Commanders on June 5, 1945,5
it is hereby Decreed:
article i
Establishment of German External
Property Commission.
There is hereby established a German External Property Commission
composed of representatives of the Powers occupying Germany,
hereinafter referred to as the “Commission.” This Commission is
created as a governmental agency with all the attributes, powers
and immunities of the sovereign government for the purpose of
carrying out the policies and provisions of this law both within
and outside Germany.
[Page 966]
article ii
Vesting of External Property of
Persons within Germany.
All the right, title and interest, legal and equitable, in or
with respect to all property outside Germany, of all persons
within Germany, is hereby vested in the Commission, Provided that this Article shall not
affect the property of any individual within Germany.[:]
- (a)
- who is a citizen or subject of a foreign sovereign
state other than Japan; or
- (b)
- who is part of the armed forces or civilian personnel
of any Allied government.
article iii
Vesting of External Property of
Persons outside Germany.
All the right, title and interest, legal and equitable, in or
with respect to any property outside Germany, of any German
citizen outside Germany and the branch of a corporation or other
legal entity organized under the laws of Germany or having its
principal place of business in Germany, and any legal entity
which is owned or controlled from Germany, is hereby vested in
the Commission. As used in this Article the term “German
citizen” means individuals who
- (a)
- have had full rights of German citizenship under Reich
law, at any time since January 1, 1942, and have been
within any territory while such territory was under the
control of the Reich Government, at any time since
January 1, 1942; or
- (b)
- have been designated by the Commission to be German
citizens for the purpose of this decree.
article iv
Compensation.
All persons whose right, title or interest in any property has
been vested in accordance with this law shall be entitled to
fair compensation in an amount and in a manner to be
determined.
article v
Disposition of Property Vested
under this Law.
The right, title and interest to all property, title to which has
been vested in the Commission, under this law, or the proceeds
of such property, shall be held by the Commission and disposed
of pursuant to such further directives as the Allied Control
Council or other appropriate authority may issue from time to
time in order to accomplish the objectives set out in the
Preamble.
[Page 967]
article vi
Additional Specific Powers of the
Commission.
In order to effectuate the policies and provisions of this law
and in addition to its general powers under Article I, the
Commission’s specific powers shall include the power, acting
through any agency that it may designate, or otherwise, and
under such rules and regulations as it may prescribe, by means
of instructions, licenses, or otherwise,
- (a)
- to do all acts which it deems necessary or appropriate
to obtain possession or control over all property, the
right, title or interest in which is vested in the
Commission under this law;
- (b)
- to operate, control and otherwise exercise complete
dominion over all such property, including the sale,
liquidation or other disposal thereof;
- (c)
- to subpoena witnesses and to require the keeping of
full records, the furnishing of full information, and
the production or seizure of any books of account,
records, contracts, letters, memoranda, or other papers,
relating to any property affected by this law.
article vii
Exemptions.
This decree shall not apply to assets subject to the jurisdiction
of the United Kingdom, the Union of Soviet Socialist Republics,
the United States, France or any United Nation determined to be
entitled to retain assets subject to its jurisdiction as a form
of reparations or otherwise.
article viii
Definitions.
For the purpose of this law:
- (a)
- The term “person” shall include any natural person or
collective persons and any juridical person or entity
under public or private law having legal capacity to
acquire, use, control or dispose of property or
interests therein; and any government, including all
political subdivisions, public corporations, agencies
and instrumentalities thereof. Any juridical person or
entity which is organized under the laws of, or has its
principal place of business in Germany, shall be deemed
to be a person within Germany within the meaning of
Article II hereof.
- (b)
- The term “property” shall include all movable and
immovable property and all legal, equitable, or economic
rights and interests in or claims to such property,
whether matured or not, and shall include, but shall not
be limited to lands and buildings, goods, wares,
merchandise, chattels, coin, bullion, currency,
deposits, accounts or debts, claims, bills of lading,
warehouse receipts, all kinds of financial instruments
whether expressed in Reichsmarks or in any foreign [Page 968] currency,
evidences of indebtedness or ownership of property,
contracts, judgments, rights in or with respect to
patents, copyrights, trademarks, etc., and in general,
property of any nature whatsoever.
- (c)
- The term “Germany” shall mean the area constituting
“Das Deutsch[e] Reich”
as it existed on December 31, 1937.
article ix
Penalties.
Any person who violates any provision of this law or any
regulations, instructions or directives issued hereunder or any
person any of whose property is affected by this law who acts or
attempts to act in derogation of the title or interest of the
Commission under Articles II and III and any person who assists
or conspires with any other person to commit such an act or
violation shall, upon conviction, be liable to any lawful
punishment as determined by the court. In addition to any
penalty imposed by this Article, any person who is convicted
hereunder shall forfeit his right to compensation under Article
IV.
article x
Conflicting Laws
Annulled.
All provisions of foregoing laws or decrees or parts thereof
which are contradictory to any one of the provisions of this law
or of any law or decree issued under the provisions of this law
are herewith declared null and void.
