Evening star., 1946-03-03
American investments
Abroad 10 Remain
Tangled for Years
By tho Assoeia,ed Prsss

BY me Assoeiofed Prsss
Government officials said yester.
day it will take years to untanglt
the complicated mess in which wal
left American investments in for.
eign countries, with scant chance
Of 100-cents -the-dollar settle.
ments.
A thousand -and-one headache.
have developed to plague American
economic experts attempting to fine
solution to a problem which in
wolves the Industrial future of Eu.
rope as well as such questions as
taxation, war damage claims ano
reparations.
Representatives Of at least three
departments-State, Treasury anc
Commerce - already have begun
tentative consideration OF a mea-
sure for Congressional action tc
compensate, at least in part, legiti-
mate victims Of the fortunes Of war
Limitation of Industry.
lG liidSlllGu0C VI VIC
will be measured largely by the
limitation ultimately imposed by
the Allied Control Commission on
Germany future industrial produc-
ton, and the extent to which that
limitation affects American pre-war
investments.
Under plans laid down at Pots
dam. Germany will be stripped of
It's industrial war potential, and its
manufacturing output for export
will be limited to what the country
must pay for imports essential to
its domestic economy.
Industrial machinery beyond this
basic core will be dismantled and,
in most cases, be used as repara-
tions to replace and rehabilitate
industries looted or devastated by
the Nazis throughout Europe.
Government officials said some Of
this machinery will be American
owned. They estimated that Ameri-
can investments in Germany before
the war totaled approximately ST.
800, 100000.
Opportunity to Buy.
Under present plans, the Ameri-
can owners would be given first op-
portunity to purchase their own
property, for use somewhere outside
Germany, while retaining a claim
for war damage against the Govern
ment. But this procedure has not
received, as yet, the wholehearted
approval of this Government.
One faction among the American
economic experts has been advocat-
ing governmental encouragement of
American firms operating branch
factories abroad. 1t has contended
that many of these branch factories
were operated before the war at
loss, and were maintained chiefly
to discourage development of foreign
competition.
Meanwhile, 1t was learned that a
number of big American companies,
with foreign branches located in
former occupied or enemy countries,
obtained tax reductions during the
wartime years by writing of such
plants as a loss.
This action will have to be taken
into consideration in any settlement
of their war claims. involving a
complicated : computation Of net
losses, normal depreciation Of plant
value, and the extent of destruction
directly resulting from the war.
Questions Raised.
The whole question has raised a
number of problems with little or
no precedent for solution, among
them:
1. Does damage done by Allied
bombs and artillery to Allied prop
erty constitute a valid war damage
claim which can be pressed against
vanquished enemy?
2. Are American investors in
property located in an Allied coun-
try such as France entitled to a
claim for war damages? Against
whom should the claim be brought?
3. If an American-owned plant
in Germany was used for war pro-
duction and then bombed as a war
target, should its owner be required
cfopI fho 1acco