Treaty (22 August 1946)

August 22, 1946

AGREEMENT BETWEEN THE PHILIPPINES AND THE UNITED STATES OF AMERICA REGARDING TRANSFER OF ENEMY PROPERTY IN DAVAO PROVINCE AND ELSEWHERE

Note: The Agreement entered into force August 22, 1946. Reference: This Agreement is also published In I DFA TS No. 1, p. 95. THIS INDENTURE, made by and between James E. Markham, Washington, D.C., as Alien Property Custodian of the United States of America (hereinafter described as "the Custodian"), and Manuel Roxas, Manila, P. I., as President of the Philippines.

WITNESSETH:

WHEREAS, under and by virtue of the authority conferred on and delegated to him by the Trading with the Enemy Act, as amended, and Executive Order No. 9095, as amended, the Custodian did, in the national interest, vest:

a. By Vesting Order No. P-2, dated January 7, 1946, effective January 8, 1946, and published in the Federal Register on January 10, 1946 (11 Fed.

Reg. 496), 9,975 shares of P100 par value capital stock of Furukawa Planta tion Company, a corporation organized and doing business under the laws of the Philippines, and any and all additional shares of stock of Furukawa Plantation Company or the right to subscribe to and receive such additional shares which accrued or may accrue to the shares herein described, or the holders thereof, by virtue of any action taken to increase the capital stock of Furukawa Plantation Company; and b. By Vesting Order No. P-3, dated January 7, 1946, effective January 8, 1946, and published in the Federal Register on January 10, 1946 (11 Fed.

Reg. 497), 2,430 shares of the P100 par value capital stock of the Ohta Development Company, Inc., a corporation organized and doing business un der the laws of the Philippines, and any and all additional shares of stock of Ohta Development Company, Inc., or the right to subscribe to and receive such additional shares which accrued or may accrue to the shares described herein, or the holders thereof, by virtue of any action taken to increase the capital stock of Ohta Development Company, Inc.; and c. By Vesting Order No. P-22, dated April 1, 1946, effective April 19. 1946, and published in the Federal Register on April 23, 1946 (11 Fed.

Reg. 4481), all of the capital stock of Gui Hing Plantation Company, a cor poration organized under the laws of the Philippines; having found that such property was property within the United States owned by nationals of designated enemy countries, all of which is more fully set forth in said Vesting Orders; andWHEREAS, by Public Law of the United States No. 485, 79th Congress, 2d Session, approved July 3, 1946, the Custodian is authorized and directed, for a nominal cash consideration and upon receipt of an agreement for indemnification for claims, cost, and expenses of administration, to transfer to the Philippine Government all vested agricultural lands in the Philippines, vested or hereinafter vested improved property in Manila which in his judgment is urgently needed for the operation of an administrative agency of the Philippine Government, and all shares vested by him in corporations owning, leasing, operating or controlling agricultural lands in the Philippines; and

WHEREAS, by the said Public Law of the United States No. 485, 79th Congress, 2d Session, Act No. 8 of the First Congress of the Republic of the Philippines, 1st Session, approved August 9, 1946, and by the Constitution and laws of the Philippines, the President of the Philippines is authorized and empowered, in consideration of the transfer, and the agreement for transfer, of the herein described property by the Custodian, to agree to indemnify the United States for certain claims and charges against the property hereby transferred;

NOW, THEREFORE:

1. In consideration of the sum of One Dollar ($1.00), paid to the Custodian by the President of the Philippines, the receipt of which is hereby acknowledged, and in consideration of the agreement to indemnify the United States for certain claims, costs, and expenses of administration made by the President of the Philippines, the Custodian, under and by virtue of all authority and powers conferred on and delegated to him, does hereby, and without any warranties or guaranties, expressed or implied, transfer, sell and assign to the Philippine Government the said shares of stock herein-above described with particularity; and does hereby agree to transfer to the Philippine Government all agricultural lands in the Philippines, vested or hereafter vested improved property in Manila which in the judgment of the Custodian is urgently needed for the operation of an administrative agency of the Philippine Government, and all shares in corporations owning, leasing, operating or controlling agricultural lands in the Philippines which have heretofore been or which shall hereafter be vested by the Custodian, such transfer to be made as soon as reasonably possible after such vesting.

2. In consideration of the transfer and agreement to transfer made by the Custodian as hereinabove set forth, the President of the Philippines does hereby agree to indemnify and hold harmless the United States against any claim to or with respect to the property hereby transferred or to be transferred, which may be allowed by or enforced against the United States or any officer or agency thereof pursuant to the said Trading with the Enemy Act, as amended, or pursuant to the said Public Law of the United States No. 485, 79th Congress, 2d Session, and does hereby agree to reimburse the United States for all such costs and expenses of administration incurred by the United States or any officer or agency thereof, as may by law be charged against the property hereby transferred, or its proceeds.

3. It is hereby understood and agreed, by and between the parties hereto, that this indenture is made without recourse of any kind by anyone against the Custodian, individually or as Alien Property Custodian, or against any representative or employee of the Custodian, or against any successor or against any representative or employee of any successor of the Custodian.IN WITNESS WHEREOF, the parties have hereunto affixed their names and caused their official seals to be attached on the twenty-second day of August, 1946.

[SEAL] (Sgd.) MANUEL ROXAS

President of the Philippines [SEAL] (Sgd.) JAMES E. MARKHAM Alien Property Custodian of the United States of America NOTE FROM THE U. S. EMBASSY, MANILA, RE, ALIEN PROPERTY CUSTODIAN, ETC.

EMBASSY OF THE UNITED STATES OF AMERICA

July 29, 1946

EXCELLENCY:

I have the honor to inform you that the President of the United States approved on July 3, 1946, Public Law 485 —79th Congress, and issued on the same day Executive Order No. 9747 entitled "Continuing the Functions of the Alien Property Custodian and the Department of the Treasury of the Philippines." Public Law 485 —79th Congress reads as follows: "AN ACT TO PROVIDE FOR THE RETENTION BY THE UNITED STATES GOVERNMENT OR ITS AGENCIES OR INSTRUMENTALITIES OF REAL AND PERSONAL PROPERTY WITHIN THE PHILIPPINES NOW OWNED OR LATER ACQUIRED AND FOR THE ADMINISTRATION OF THE TRADING WITH THE ENEMY ACT OF OCTOBER 6, 1917, AS AMENDED, IN THE PHILIPPINES, SUBSEQUENT TO INDEPENDENCE.

"Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, "SHORT TITLE

"SECTION 1. This Act may be cited as the 'Philippine Property Act of 1946.'

"SEC. 2. There shall remain vested in the Government of the United States or its agencies or instrumentalities all the right, title, and interest of the said Government or its agencies or instrumentalities to all real anj personal property within the Philippine Islands as may now be vested in, or later be acquired by the Government of the United States or any of its agencies or instrumentalities.

"SEC. 3. The Trading with the Enemy Act of October 6, 1917 (40 Stat. 411), as amended, shall continue in force in the Philippines after July 4, 1946, and all powers and authority conferred upon the President of the United States or the Alien Property Custodian by the terms of the said Trading with the Enemy Act, as amended, with respect to the Philippines, shall continue thereafter to be exercised by the President of the United States, or such officer or agency as he may designate: Provided, Thatall property vested in or transferred to the President of the United States, the Alien Property Custodian, or any such officer or agency as the President of the United States may designate under the Trading with the Enemy Act, as amended, which was located in the Philippines at the time of such vesting, or the proceeds thereof, and which shall remain after the satisfaction of any claim payable under the Trading with the Enemy Act, as amended, and after the payment of such costs and expenses of administration as may by law be charged against such property or proceeds, shall be transferred by the President of the United States to the Republic of the Philippines: Provided further, That such property, or proceeds thereof, may be transferred by the President of the United States to the Republic of the Philippines upon indemnification acceptable to the President of the United States by the Republic of the Philippines for such claims, costs, and expenses of administration as may by law be charged against such property or proceeds thereof before final adjudication of such claims, costs and expenses of administration: Provided further, That the Court of First Instance of the ... (See Bill.) "Approved, July 3, 1946." Executive Order No. 9747 reads as follows: "EXECUTIVE ORDER CONTINUING THE FUNCTIONS OF THE ALIEN PROPERTY CUSTODIAN AND THE DEPARTMENT OF THE TREASURY OF THE PHILIPPINES. "By virtue of the authority vested in me by the Constitution and statutes, including Title III of the First War Powers Act, 1941 (50 U.S.C App., Sup., 616 et seq.), as amended, the Trading with the Enemy Act of October 6, 1917 (50 U.S.C, App., et seq.), as amended, and Public Law No. 485, 79th Congress, approved July 3, 1946, and as President of the United States, it is hereby ordered as follows: "The terms and provisions of Executive Order No. 9095 of March 11, 1942, as amended, and Executive Order No. 8389 of April 10, 1940, as amended, shall continue in force in the Philippines after July 4, 1946, and all powers and authority delegated by the said Executive Orders to the Alien Property Custodian and to the Secretary of the Treasury, respectively, shall after July 4, 1946, continue to be exercised in the Philippines by the said officers, respectively, as therein provided. "HARRY S. TRUMAN "THE WHITE HOUSE, July 3, 1946." May I request your Excellency's assurances that the terms of the Public Law and the Executive Order quoted above are acceptable to your Government and that the Government of the Republic of the Philippines will sustain within its jurisdiction the operation of the Public Law and the Executive Order quoted above and the lawful acts of officers and employees of the United States in the enforcement of same. Accept, Excellency, the assurances of my most distinguished consideration.

PAUL V. MCNUTT LETTER OF TRANSMITTAL BY UNDERSECRETARY AFRICA TO THE CHIEF OF THE EXECUTIVE OFFICE RE "PHILIPPINE PROPERTY ACTOF 1946."

MANILA, August 14, 1946 SIR: I have the honor to forward herewith for the information of the President and files of that Office two (2) copies each of the following: "A BILL (H. R. 6801) —To provide for the retention by the United States Government or its agencies or instrumentalities of real and personal property within the Philippines now owned or later acquired and for the administration of the Trading with the Enemy Act of October 6, 1917, as amended, in the Philippines, subsequent to independence. "Report (No. 2296) to accompany H.

R. 6801." Very respectfully, For the Secretary:

(Sgd.) BERNABE AFRICA The Honorable The CHIEF OF THE EXECUTIVE OFFICE Malacañan Palace, Manila 79TH CONGRESS Union Calendar No. 689 2d Session H. R. 6801 (Report No. 2296) IN THE HOUSE OF REPRESENTATIVES June 17, 1946 Mr. Bell introduced the following bill, which was referred to the Committee on Insular Affairs, June 18, 1946. Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed. (Omit the part struck through and insert the part printed in italic). A BILL TO PROVIDE FOR THE RETENTION BY THE UNITED STATES GOVERNMENT OR ITS AGENCIES OR INSTRUMENTALITIES OF REAL AND PERSONAL PROPERTY WITHIN THE PHILIPPINES NOW OWNEDOR LATER ACQUIRED AND FOR THE ADMINISTRATION OF THE TRADING WITH THE ENEMY ACT OF OCTOBER 6, 1917, AS AMENDED, IN THE PHILIPPINES, SUBSEQUENT TO INDEPENDENCE.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SHORT TITLE

SECTION 1. This Act may be cited as the "Philippine Property Act of 1946."

SEC. 2. There shall remain vested in the Government of the United States or its agencies or instrumentalities all the right, title, and interest of the said Government or its agencies or instrumentalities to all real and personal property within the Philippine Islands as may now be vested in, or later be acquired by the Government of the United States or any of its agencies or instrumentalities.

SEC. 3. The Trading with the Enemy Act of October 6, 1917 (40 Stat. 411), as amended, shall continue in force in the Philippines after July 4, 1946, and all powers and authority conferred upon the President of the United States or the Alien Property Custodian by the terms of the said Trading with the Enemy Act, as amended, with respect to the Philippines, shall continue thereafter to be exercised by the President of the United States, or such officer or agency as he may designate: Provided, That all property vested in or transferred to the President of the United States, the Alien Property Custodian, or any such officer or agency as the President of the United States may designate under the Trading with the Enemy Act, as amended, which was located in the Philippines at the time of such vesting, or the proceeds thereof, and which shall remain after the satisfaction of any claim payable under the Trading with the Enemy Act, as amended, and after the payment of such costs and expenses of administration as may by law be charged against such property or proceeds, shall be transferred by the President of the United States to the Republic of the Philippines: Provided further, That such property, or proceeds thereof, may be transferred by the President of the United States to the Republic of the Philippines upon indemnification acceptable to the President of the United States by the Republic of the Philippines for such claims, costs, and expenses of administration as may by law be charged against such property or proceeds thereof before final adjudication of such claims, costs, and expenses of administration; Provided further, That the courts of first instance oi the Republic of the Philippines are hereby given jurisdiction to make and enter all such rules as to notice or otherwise, and 11 such orders and decrees, and to issue such process as may be necessary and proper in the premises to enforce any orders rules, and regulations issued by the President of the United States, the Alien Property Custodian, or such officer or agency designated by the President of the United States pursuant to the Trading with the Enemy Act, as amended, with such right of appeal therefrom as may be provided by law: And, provided further, That any suit authorized under the Trading with the Enemy Act, as amended, with respect to property vested in or transferred to the President of the United States, the Alien Property Custodian, or any officer or agency designated by the President of the United States hereunder, which at the time of such vesting or transfer was located within the Philippines, shall after July 4, 1946, be brought, in the appropriate court of the first instance of the Republic of the Philippines, against the officer or agency hereunder designated by the President of the United States, with such right of appeal therefrom as may be provided by law. In any litigationauthorized under this section, the officer or administrative head of the agency designated hereunder may appear personally, or through attorneys appointed by him, without regard to the requirements of law other than this section.

SEC. 4. In respect to property not transferable to the Republic of the Philippines under section 3 of this Act, the President of the United States is authorized, in his discretion and under such terms and conditions as he may deem appropriate, to transfer to the Republic of the Philippines any or all cf the right, title, and interest of the Government of the United States or its agencies or instrumentalities to any or all real and personal property vested in such agencies or instrumentalities.

SEC. 5. Immediately upon passage of this Act the Alien Property Custodian of the United States shall enter into an agreement with the President of the Philippines to transfer to the Philippine Government for a nominal cash consideration all shares now vested or thereafter vested by the Alien Property Custodian of corporations owning in fee, leasing, or otherwise operating or controlling agricultural lands in the Philippines, other agricultural lands in the Philippines vested or hereafter vested by the Alien Property Custodian not included in the foregoing, and improved property in Manila vested or hereafter vested by the Alien Property Custodian which in his judgment is urgently needed for the operation o£ an administrative agency of the Philippine Government: Provided, That in respect to property transferred under this section to the Philippine Government, it shall be made a part of the agreement that the Philippine Government shall fully indemnify the United States for all claims payable under the Trading with the Enemy Act, as amended, and for all such costs and expenses of administration as may by law be charged against such property or proceeds thereof.

SEC. 6. Nothing contained in this Act shall be construed as amending the provisions of the Act of March 24, 1934 (48 Stat. 456), as amended, respecting naval reservations and fueling stations, and diplomatic or consular property, and the property of the High Commissioner to the Philippine Islands, nor as amending the provisions of the joint resolution of June 29, 1944 (Public Law 380, Seventy-eighth Congress), respecting bases for the mutual protection of the Philippine Islands and the United States.

SEC. 7. For the purposes of this Act the term "Philippine Government" shall mean "Government of the Commonwealth of the Philippines" until the date of Independence, and thereafter it shall mean the "Government of the Republic of the Philippines."