Act, the Congress hereby confirms that property (including any interest therein) of Germany, Japan, or any national of either such country, vested in or transferred to any officer or agency of the Government at any time after December 17, 1941, pursuant to the provisions of the Trading With the Enemy Act, shall not be returned to former owners thereof or their successors in interest, and the United States shall not pay compensation for any such property or interest therein. Funds resulting from the liquidation of such property shall be used as provided in this Act for the payment of American war damage claims against Germany and Japan, and interest resulting from the investment of such funds, pending the adjudication and award of such claims, shall be used for scholarships and fellowships as provided in this Act.

TITLE I-SCHOLARSHIPS AND FELLOWSHIPS

DEFINITIONS

SEC. 101. For the purpose of this title

(1) The term "children" means legitimate or legally adopted children, stepchildren if members of the household of the parent from whom eligibility is derived, or illegitimate children if it is shown by evidence that the person from whom eligibility is derived was the parent.

(2) The term "veteran of World War I, World War II, or the Korean conflict" means a person who served on fulltime duty in the Armed Forces, other than for training purposes, during World War I, World War II, or the Korean conflict, but only if such service did not terminate under dishonorable conditions.

(3) The term "Armed Forces" means the Army, Navy, Air Force, Marine Corps, and Coast Guard of the United States.

(4) The term "World War I" means the period beginning on April 6, 1917, and ending on November 11, 1918.

(5) The term "World War II" means the period beginning on December 7, 1941, and ending on December 31, 1946.

(6) The term "Korean conflict" means the period beginning on June 27, 1950, and ending on January 21, 1955.

AWARD OF SCHOLARSHIPS AND FELLOWSHIPS

SEC. 102. (a) The National Science Foundation is authorized to award(1) to children of veterans of World War I, World War II, or the Korean conflict, and

(2) to other individuals who are citizens of the United States, out of funds made available under the provisions of section 103 of this Act, scholarships and graduate fellows for scientific study or scientific work in the matehmatical, physical, medical, biological, engineering, and other sciences (including the teaching of such sciences) at accredited nonprofit American institutions of higher education, selected by the recipient of such aid, for stated periods of time. The Foundation may establish such criteria for the award of such scholarships or fellowships as it deems will promote the progress of science in the United States. Selections shall be made from among individuals meeting the requirements of this title and such criteria solely on the basis of ability, except that all children of veterans of World War I, World War II, and the Korean conflict meeting such requirements and criteria shall be awarded scholarships or fellowships before any scholarships or fellowships are awarded under the provisions of this title to other eligible individuals. In granting scholarships to either such children of veterans or such other eligible individuals, in any case in which two or more applicants for scholarships or fellowships, as the case may be, are deemed by the Foundation to be possessed of substantially equal ability, and there are not sufficient scholarships or fellowships available to grant one to each such applicant, the available scholarship or scholarships or fellowship or fellowships shall be awarded in such manner as will tend to result in a wide distribution of scholarships and fellowships among the States, Territories, possessions, and the District of Columbia.

ESTABLISHMENT OF FUND

SEC. 103. (a) Nothwithstanding any other provision of law the Attorney General shall make available to the Secretary of the Treasury $100,000,000, and such additional amounts as may be or may become available, out of funds

resulting from property, or interests therein, of Germany, Japan, or any national of either such country, vested in or transferred to the United States at any time after December 17, 1941, pursuant to the provisions of the Trading with the Enemy Act. All amounts made available to the Secretary of the Treasury under the provisions of this subsection shall be established as a fund in the Treasury which shall be known as the American War Damage Claims Fund and shall be available only for the payment of claims as provided for in title II of this Act, except that until needed for such payment moneys in such fund shall be invested in interest-bearing securities of the United States. Any money remaining in such fund after the payment of all claims provided for in title II shall remain invested as provided in this section for the purposes of this title.

(b) All interest resulting from investments made in accordance with subsection (a) of this section shall be available to the National Science Foundation for scholarships and fellowships as authorized in this title.

ASSISTANCE FROM ADMINISTRATOR OF VETERANS' AFFAIRS

SEC. 104. The Administrator of Veterans' Affairs is authorized to provide such information and assistance as may be requested by the National Science Foundation for the purpose of carrying out the provisions of this title.

RULES AND REGULATIONS

SEC. 105. The National Science Foundation is authorized to prescribe such rules and regulations as may be necessary to carry out the provisions of this title. TITLE II-AMERICAN WAR DAMAGE CLAIMS

WAR CLAIMS ACT AMENDMENTS

SEC. 201. (a) The War Claims Act of 1948, as amended, is amended by inserting after the first section thereof, the following title caption: “TITLE I”. (b) Sections 2 through 8 and 10 through 14 of such Act are amended by striking out the word "Act" wherever it apears therein in relation to such Act, and inserting in lieu thereof the word "title".

WAR DAMAGE CLAIMS

SEC. 202. The War Claims Act of 1948, as amended, is further amended by adding at the end thereof, the following new title:

"TITLE II

"SEC. 201. As used in this title

"(a) The terms 'Germany', and 'Japan', when used in their respective geographical senses, mean the area contained within the territorial limits of each such country as such limits existed on December 1, 1937.

"(b) The term 'Commission' means the Foreign Claims Settlement Commission of the United States, established pursuant to Reorganization Plan Numbered 1 of 1954 (68 Stat. 1279).

"(c) The term 'citizen of the United States' means (1) an individual who was a citizen on the date of the loss, damage, or destruction for which claim is made under this title and continuously thereafter until the filing of such claim or until his death prior to such filing, or (2) a corporation, partnership, association, unincorporated body, or other entity which on the date of loss, damage, or destruction for which claim is made under this title and continuously thereafter until the filing of such claim, was incorporated or otherwise organized under the laws of the United States or of any State or Territory thereof, or of the District of Columbia, and with respect to which, at all times between the date of such loss, damage, or destruction and the filing of such claim, the outstanding capital stock or other proprietary interest in such entity was beneficially owned by citizens of the United States who could qualify as individual claimants under this section.

"SEC. 202. The Commission is authorized and directed to receive and to determine according to law the validity and principal amount of claims of citizens of the United States for

"(a) physical damage to, or physical loss or destruction of (A) property located in Germany, which occurred during the period beginning September 1, 1939, and ending May 8, 1945, and (B) property located in Japan, which occurred during the period beginning December 7, 1941, and ending September 2, 1945, as a direct consequence of military operations of war, or of special measures directed against property during war because of the eenmy or alleged enemy character of the owner, which property was owned by the claimant at the time of such loss, damage, or destruction;

"(b) damage to, or loss or destruction of, ships or ship cargoes, owned by the claimant at the time such damage, loss, or destruction occurred, which was a direct consequence of military action by Germany during the period beginning September 1, 1939, and ending May 8, 1945, or Japan during the period beginning December 7, 1941, and ending September 2, 1945;

"(c) loss or damage on account of the death or injury of any person who, being a citizen of the United States and a passenger on any vessel engaged in commerce on the high seas, was injured or killed as a result of military action by Germany or Japan during the period beginning September 1, 1939, and ending December 11, 1941. Awards under this part (c) on account of the death or disability of any one person shall not exceed $7,500. An award on account of the death of any such person shall be made only to or for the benefit of the following persons:

"(1) Widow or husband, if there is no child or children of the deceased;

"(2) Widow or husband and child or children of the deceased onehalf to the widow or husband and the other half to the child or children of the deceased in equal shares;

66

'(3) Child or children of the deceased (in equal shares) if there is no widow or husband; and

"(4) Parents (in equal shares) if there is no widow, husband, or child.

An award on account of disability shall be made only to the person so disabled, or, in the event of his death at any time prior to the payment of the award, to the persons specified in paragraphs (1) through (4) of this part (c) in the order so specified.

"SEC. 203. No award shall be made under this title in favor of any insurer or reinsurer as the assignee or other successor in interest to the right of the insured.

"SEC. 204. In determining the amount of any award under this title there shall be credited all amounts the claimant has received or is entitled to receive from any source on account of the loss or losses with respect to which the award is made, including, but not limited to, any insurance payments, amounts received by court action or settlement of claims for such loss, and the amount of any tax benefits realized by the claimant as a credit against United States or State taxes of any kind.

"SEC. 205. Awards shall not be made pursuant to section 202 with respect to any of the following classes of property: intangible property; accounts receivable; bills receivable; records, files, plans, drawings, or formulas; currency, deeds, evidence of debt, securities, money, or bullion; furs, jewelry, stamps, precious and semiprecious stones; works of art, antiques, stamp and coin collections; manuscripts, books, and printed publications more than fifty years old; models, curiosities, objects of historical or scientific interest; and pleasure watercraft and pleasure aircraft, except that awards may be made with respect to property of any such class if such property constituted a part of the inventory, supplies, or equipment for carrying on a trade or business.

"SEC. 206. A claim based upon an interest, direct or indirect, in a corporation or other entity entitled to an award under the provisions of this title shall not be allowed.

"SEC. 207. Within sixty days after the date of enactment of this title, the Commission shall give public notice by publication in the Federal Register of the time when, and the period within which claims under this title may be filed. Such period shall end not more than six months after the date of such public notice.

"SEC. 208. The Commission shall certify to the Secretary of the Treasury, in terms of United States currency, each award made pursuant to section 202. "SEC. 209. (a) The Secretary of the Treasury shall make payments, out of he American War Damage Claims Fund established under title I of this Act,

on account of awards certified by the Commission pursuant to this title as follows and in the following order of priority:

"(1) Payment in full of the amount of awards made pursuant to section 202 (c).

"(2) Thereafter, payment in the amount of $1,000 or in the amount of the award, whichever is less, on account of the other awards made pursuant to section 202.

"(3) Thereafter, payment from time to time on account of the unpaid balance of each remaining award made pursuant to section 202, which shall bear to such unpaid balance the same proportion as the total amount in the fund available for distribution at the time such payment is made bears to the aggregate unpaid balance of all such awards.

66

(b) Such payments shall be made in accordance with such regulations as the Secretary of the Treasury shall prescribe.

"(c) For the purpose of making any such payments, other than under the provisions of section 209 (a) (1), an award shall be deemed to mean the aggre gate of all awards certified in favor of the same claimant.

"SEC. 210. Payment of any award pursuant to this title shall not, unless such payment is for the full amount of the claim, as determined by the Commission to be valid, with respect to which the award is made, extinguish such claim, or be construed to have divested any claimant of any rights against any foreign government for the unpaid balance of his claim.

"SEC. 211. The action of the Commission in allowing or denying any claim under this title shall be final and conclusive as to all questions of law and fact, and shall not be subject to review by any other official of the United States or by any court by mandamus or otherwise, and the Comptroller General is authorized and directed to allow credit in the accounts of any certifiying or disbursing officer for payments in accordance with such action.

"SEC. 212. If any person to whom any payment is to be made pursuant to this title is deceased or is under a legal disability, payment shall be made to his legal representatives, except that if any such payment is not over $1,000 and there is no qualified executor or administrator, payment may be made to the person or persons found by the Comptroller General of the United States to be entitled thereto, without the necessity of compliance with the requirement of law with respect to the administration of estates.

"SEC. 213. Awards shall not be made under this title to or for the benefit of any person who has been convicted of a violation of any provision of chapter 115 of title 18 of the United States Code, or of any other crime involving disloyalty to the United States.

"SEC. 214. To the extent they are not inconsistent with any provisions of this title the provisions of the first sentence of subsections (b) and (c) of section 2, and the first three sentences of section 11 of title I of this Act, and the provisions of clauses (2), (3), (4), and (5) of subsection (c), and subsections (d), (e), and (f) of section 7 of the International Claims Settlement Act of 1949, as amended, shall be applicable to this title."

TIME LIMITATIONS

SEC. 203. The authority of the Foreign Claims Settlement Commission to certify awards pursuant to title II of the War Claims Act of 1948, as added by this Act, shall expire on the date which is five years after the date of enactment of this Act.

SEPARABILITY

SEC. 204. If any provision of this Act, or the application thereof to any person or circumstances, shall be held invalid, the remainder of the Act, or the application of such provision to other persons or circumstances, shall not be affected.

U.S. DEPARTMENT OF JUSTICE,
OFFICE OF THE DEPUTY ATTORNEY GENERAL,
Washington, D.C., June 5, 1959.

Hon. JAMES O. EASTLAND,

Chairman, Committee on the Judiciary,

U.S. Senate, Washington, D.C.

DEAR SENATOR EASTLAND: This is in response to your request for the views of the Department of Justice on a bill (S. 105) to provide scientific scholarships

and fellowships for children of veterans and other indivduals from interests resulting from the investment of certain funds obtained under the provisions of the Trading With the Enemy Act, and to provide for the repayment from such funds of certain American war claims against Germany and Japan.

S. 105 would require the Attorney General to make available to the Secretary of the Treasury the sum of $100 million and such additional amounts as may be or may become available from German and Japanese assets vested under the Trading With the Enemy Act as a consequence of World War II. These moneys would be deposited in a newly created American war damage claims fund and would be used for the payment of certain war damage claims authorized by the bill. Until needed for the payment of allowed claims, moneys in this fund would be invested in interest-bearing Government securities, The interest income so produced would be devoted to scholarships or graduate fellowships awarded by the National Science Foundation to children of veterans of World War I, World War II, or the Korean conflict and to other individuals who are American citizens. The scholarships and graduate fellowships would be granted for scientific study at accredited nonprofit institutions of higher education in the United States.

The war damage claims authorized for payment from the American war damage claims fund would be those for loss or damage to property in Germany and Japan which occurred as a consequence of military operations or of wartime financial measures imposed by those countries, damage to or loss of ships or ship cargoes, and loss or damage on account of the death of an American spouse, parent, or child between September 1, 1939, and December 11, 1941, which resulted from the German or Japanese sinking of a ship on which the decedent was a passenger. Only persons who were American citizens at the time of the claimed loss or damage would be eligible for compensation under the bill. Claims would be adjudicated by the Foreign Claims Settlement Commission, which would certify awards to the Secretary of the Treasury for payment out of the American war damage claims fund.

The provisions of S. 105 relating to the payment of war damage claims of American citizens differ to a considerable extent from those contained in S. 2005, the administration bill sponsored by the Foreign Claims Settlement Commission. The administration bill, which contains no program of scholarships or fellowships, would include compensation for war caused property loss or damage in various European countries in addition to Germany. It would not include compensation for property loss or damage in Japan, since the Government of that country has paid such compensation under the treaty of peace of 1952. On the other hand the administration bill would go beyond S. 105 by compensation for American property loss and damage in territory occupied or attacked by Japan between July 1, 1937, and September 2, 1945. The administration bill would also include two categories of claims not authorized by S. 105: (1) claims for losses by insurers under war risk insurance or reinsurance policies or contracts and (2) claims for losses resulting from the removal from Germany by the Soviet Union, for reparation purposes, of industrial and capital equipment.

Inasmuch as S. 105 varies significantly from S. 2005, the bill drafted and recommended by the administration, the Department is opposed to the enactment of S. 105 and recommends the enactment of S. 2005 in its stead.

The Bureau of the Budget has advised that there is no objection to the submission of this report.

Sincerely,

LAWRENCE E. WALSH, Deputy Attorney General. DEPARTMENT OF STATE, Washington, June 12, 1959.

Hon. JAMES O. EASTLAND,

Chairman, Committee on the Judiciary,
U.S. Senate.

DEAR SENATOR EASTLAND: Further reference is made to your letter of May 22, 1959, requesting a report on S. 105, to provide scientific scholarships and fellowships for children of veterans and other individuals from interest resulting from the investment of certain funds obtained under the provisions of the Trading With the Enemy Act and to provide for the repayment from such funds of certain American war claims against Germany and Japan.