Note 45 — Chapter III

The United States has the right to retain and liquidate all property, rights, and interests belonging to German nationals and lying within the territories, colonies, and possessions of the United States on January 10, 1920. The proceeds of such liquidation are at the disposal of the United States “in accordance with its laws and regulations,” that is to say, at the disposal of Congress within the limitations of the Constitution, and may be applied by them in any of the three following ways: (1) the assets in question may be returned to their original German owners; (2) they may be applied to the discharge of claims by United States nationals with regard to their property, rights, and interests in German territory, or debts owing to them by German nationals, or to the payment of claims growing out of acts of the German Government after the United States entered the war, and also to the discharge of similar American claims in respect of those of Germanyʼs Allies against whom the United States was at war; (3) they may be turned over to the Reparation Commission as a credit to Germany under this head.