Czechoslovakian Claims Settlement Act of 1981
PL 97-127 (S.1946), enacted 12/29/1981

PUBLIC LAW 97-127—DEC. 29, 1981 
95 STAT. 1675 
Public Law 97-127 
97th Congress 
An Act 
To provide for the final settlement of certain claims against Czechoslovakia, and for 
Dec. 29, 19«1 
other purposes. 
[S. 1946] 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, 
Czechosiovakian 
' 
* 
Claims 
Settlement Act 
SHORT TITLE 
of 1981. 
SECTION 1. This Act may be cited as the "Czechosiovakian Claims 2
2 use note 
Settlement Act of 1981". 
P"^'^ i^^^. 
APPROVAL OP AGREEMENT 
SEC. 2. (a) The Congress hereby approves the Agreement between 2
2 use note 
the Government of the United States of America and the Govern- ^^^^- ^^^^ 
ment of the Czechoslovak Socialist Republic on the Settlement of 
Certain Outstanding Claims and Financial Issues, initialed at 
Prague, CzechoslovaMa on November 6,1981. 
(b) The President may, without further approval by the Congress, 
execute such technical revisions of the Agreement approved by 
subsection (a) of 
this section as in his judgment may from time to time 
be required to facilitate the implementation of that Agreement. 
Nothing in this subsection shall be construed to authorize any 
revision of that Agreement to reduce any amount to be paid by the 
Government of the Czechoslovak Socialist Republic to the United 
States Government under the Agreement, or to defer the payment of 
any such amount. 
DEFINITIONS 
SEC. 3. For the purposes of this Act— 
22 use note 
(1) "Agreement" means the Agreement on the Settlement of ^^^- ^^^^ 
Certain Outstanding Claims and Financial Issues approved by 
section 2(a) of 
this Act; 
(2) "national of the United States" has the meaning given such 
term by section 401(1) of the International Claims Settlement Act 
of 1949; 
22 use 1642. 
(3) "Commission" means the Foreign Claims Settlement Com-
mission of the United States; 
(4) "Fund" means the Czechosiovakian Claims Fund estab-
lished by section 402(b) of the International Claims Settlement 
Act of 1949; 
22USei642a. 
(5) "Secretary" means the Secretary of the Treasury; and 
(6) "property" ipeans any property, right, or interest. 
THE FUND 
SEC. 4. (a) The Secretary shall cover into the Fund the amount paid 22 use note 
by the Government of the Czechoslovak Socialist Republic in settle- P^®'^ ^^'^^ 
ment and discharge of claims of nationals of the United States 
95 STAT. 1676 
PUBLIC LAW 97-127—DEC. 29, 1981 
22 u s e 1642. 
22 u s e 1642a. 
Accounts 
establishment. 
22 u s e 1642i. 
pursuant to article 1(1) of the Agreement, and shall deduct from that 
amount $50,000 for reimbursement to the United States Government 
I
F
o
r expenses incurred by the Department of the Treasury and the 
Commission in the administration of this Act and title IV of the 
International Claims Settlement Act of 1949. The amount so 
deducted shall be covered into the Treasury to the credit of miscella-
neous receipts. The deduction required by this subsection shall be 
made in lieu of the deduction provided in section 402(e) of the 
International Claims Settlement Act of 1949; however, it is the sense 
of the Congress that the United States Government is entitled to a 
larger percentage of the total award (generally presumed to be 5 
percent) and that the ex gratia payment hereinafter provided to 
certain claimants, who were otherwise excluded from sharing in 
this claims settlement under generally-accepted principles of inter-
national law and United States practice, is justified only by the 
extraordinary circumstemces of this case and does not establish any 
precedent for future claims negotiations or payments. 
(b) The Secretary shall establish three accounts in the Fund into 
which the amount covered into the Fund pursuant to subsection (a) of 
this section, less the deduction required by that subsection, shall be 
covered as follows: 
(1) An account into which $74,550,000 shall be covered, to be 
available for payment in accordance with section 8 of this Act on 
account of awards certified pursuant to section 410 of the 
International Claims Settlement Act of 1949. 
(2) An account into which $1,500,000 shall be covered, to be 
available for payment in accordance with section 8 of this Act on 
account of awards determined pursuant to section 5 of this Act. 
(3) An account into which the remainder of amounts in the 
Fund shall be covered, to be available for payment in accordance 
with section 8 of this Act on account of awards determined 
pursuant to section 6 of this Act. 
22 u s e note 
prec. 1642. 
DETERMINATION OF CERTAIN CLAIMS 
SEC. 5. (a) The Commission shcdl receive and determine, in accord-
ance with applicable substantive law, including international law, 
the validity and amount of claims by nationals of the United States 
against the Government of the Czechoslovak Socialist Republic for 
losses resulting from the nationalization or other taking of property 
owned at the time by nationals of the United States, which national-
ization or other taking occurred between August 8,1958, and the date 
on which the Agreement enters into force. In making the determina-
tion with respect to the validity and amount of any such claim and 
the value of the property taken, the Commission is authorized to 
accept the fair or proved value of such property as of the time when 
the property taken was last operated, used, managed, or controlled by 
the national or nationals of the United States asserting the claim, 
regardless of whether such time is prior to the actual date of 
nationalization or other taking by the Government of the 
Czechoslovak Socialist Republic. 
(b) The Commission shall certify to the Secretary the amount of any 
award determined pursuant to subsection (a). 
Nationality 
requirements. 
22 u s e note 
prec. 1642. 
DETERMINATION OF 
OTHER 
CLAIMS 
SEC. 6. (aXl) The Congress finds that-
PUBLIC LAW 97-127—DEC. 29, 1981 
95 STAT. 1677 
(A) in the case of certain persons holding claims against the 
Czechoslovakian Government who became nationals of the 
United States by February 26, 1948, the date on which the 
current Communist Government of Czechoslovakia assumed 
power; and 
(B) while the Commission had the authority to deny those 
claims described in subparagraph (A) on the basis that the 
properties involved had been taken by the Benes Government 
while the claimants were not yet nationals of the United States, 
the effect of that denial is to withhold compensation to persons 
who have been United States citizens for many years and whose 
expropriated property has benefited the Communist Govern-
ment of Czechoslovakia no less than properties expropriated 
more directly and clearly by the Communist Government. 
(2XA) It is therefore the purpose of this section, in accordance with 
the intent of the Congress in enacting title IV of the International 
Claims Settlement Act of 1949 and in the interests of equity, to make 
ex gratia pajmients to the claimants described in paragraph (1) of this 
subsection. 
(B) The Congress reaffirms the principle and practice of the United 
States to seek compensation from foreign governments on behalf only 
of persons who were nationals of the United States at the time they 
sustained losses by the nationalization or other taking of their 
property by those foreign governments. In making payments under 
this section, the Congress does not establish any precedent for future 
claims payments. 
(b) The Commission shall reopen and redetermine the validity and 
amount of any claim against the Government of Czechoslovakia 
which was filed with the Commission in accordance with the provi-
sions of title IV of the International Claims Settlement Act of 1949, 
which was based on property found by the Commission to have been 
nationalized or taken by the Government of Czechoslovakia on or 
after January 1, 1945, and before February 26, 1948, and which was 
denied by the Commission because such property was not owned by a 
person who was a national of the United States on the date of such 
nationalization or taking. The provisions of section 405 of the Inter-
national Cl£tims Settlement Act of 1949 requiring that the property 
upon which a claim is based must have been owned by a national of 
the United States on the date of nationalization or other taking by 
the Government of Czechoslovakia shall be deemed to be met if such 
property was owned on such date by a person who became a national 
of the United States on or before February 26,1948. The Commission 
shall certify to the Secretary the amount of any award determined 
pursuant to this subsection. 
22 u s e 1642. 
22 u s e 1642d. 
PROCEDURES 
SEC. 7. (a) The provisions of sections 401,403, 405, 406, 407,408,409, 
414, 415, and 416 of the International Claims Settlement Act of 1949, 
to the extent that such provisions are not inconsistent with this Act, 
together with such regulations as the Commission may prescribe, 
shall apply with respect to any claim determined pursuant to section 
5(a) of this Act or redetermined pursuant to section 6(b) of this Act. 
(b) Not later than sixty days after the date of the enactment of this 
Act, the Commission shall establish and publish in the Federal 
Register a period of time within which claims described in section 5 of 
the Act must be filed with the Commission, and the date for the 
completion of the Commission's affairs in connection with the deter-
22 u s e note 
prec. 1642. 
22 u s e 1642, 
1642b, 1642d, 
1642e-1642h, 
1642m-1642o. 
Publication in 
Federal 
Register. 
95 STAT. 1678 
PUBLIC LAW 97-127—DEC. 29, 1981 
mination of those such claims and claims described in section 6 of this 
Act. Such filing period shall be not more than one year after the date 
of such publication in the Federal Register, and such completion date 
shall be not more than two years after the final date for the filing of 
claims under section 5, No person holding a claim to which section 6 
of this Act applies shall be required to refile that claim before the 
Commission makes the redetermination required by that section. 
PAYMENT OF AWARDS 
22 use note 
SEC. 8. (a) As soon as practicable after the date of the enactment of 
prec. 1642. 
^j^jg ^^.j-^ ^j^g Secretary shall make payments from amounts in the 
account established pursuant to section 4(b)(1) of this Act on the 
unpaid balance of each award certified by the Commission pursuant 
22 use 16421. 
to Section 410 of the International Claims Settlement Act of 1949. 
(b) As soon as practicable after the Commission has completed the 
certification of awards pursuant to section 5(b) of this Act, the 
Secretary shall make payments on account of each such award from 
the amounts in the account established pursuant to section 4(b)(2) of 
this Act. 
(c) As soon as practicable after the Commission has completed the 
certification of awards pursuant to section 6(b) of this Act, the 
Secretary shall make payments on account of each such award from 
the amounts in the account established pursuant to section 4(b)(3) of 
this Act. 
(d) In the event that— 
(1) the amounts in the account established pursuant to section 
4(b)(2) of this Act exceed the aggregate total of all awards 
certified by the Commission pursuant to section 5(b) of this Act, 
or 
(2) the amounts in the account established pursuant to section 
4(b)(3) of this Act exceed the aggregate total of all awards 
certified by the Commission pursuant to section 6(b) of this Act, 
the Secretary shall cover such excess amounts into the account 
established pursuant to section 4(b)(1) of this Act. The Secretary shall 
make payments pursuant to subsection (a) of this section, from such 
excess amounts, on the unpaid balance of awards certified by the 
Commission pursuant to section 410 of the International Claims 
Settlement Act of 1949. 
(e) Payments under this section shall be made on the unpaid 
balance of each award which bear to such unpaid balance the same 
proportion as the total amount in the account in the Fund from which 
the payments are made bears to the aggregate unpaid balance of all 
awards payable from that account. Payments under this section, and 
applications for such payments, shall be made in accordance with 
such regulations as the Secretary may prescribe. 
Publication in 
(f) In the event that— 
R^tfJt^r 
(^^ *h® Secretary is unable, within three years after the date of 
the establishment of the account prescribed by section 4(b)(1) of 
this Act, to locate any person entitled to receive payment under 
this section on account of an award certified by the Commission 
pursuant to section 410 of the International Claims Settlement 
Act of 1949 or to locate any lawful heirs, successors, or legal 
representatives of that person, or if no valid application for 
payment is made by or on behalf of that person within six months 
after the Secretary has located that person or that person's heirs, 
successors, or legal representatives; or 
Register. 
PUBLIC LAW 97-127—DEC. 29, 1981 
95 STAT. 1679 
(2) within six months after the Commission has completed the 
certification of awards pursuant to sections 5(b) and 6(b) of this 
Act, no vaHd application for payment is made by or on behalf of 
any person entitled to receive payment under this section on 
account of an award certified by the Commission pursuant to 
either such section, 
the Secretary shall give notice by publication in the Federal Register 
and in such other publications as the Secretary may determine that, 
unless valid application for payment is made within sixty days after 
the date of such publication, that person's award under title IV of the 
International Claims Settlement Act of 1949 or this Act, as the case 22 USC 1642. 
may be, and that person's right to receive payment on account of such 
award, shall lapse. Upon the expiration of such sixty-day period that 
person's award and right to receive payment shall lapse, and the 
amounts payable to that person shall be paid pro rata by the 
Secretary on account of all other awards under title IV of the 
International Claims Settlement Act of 1949 or this Act, as the case 
may be. 
INVESTMENT OF FUNDS 
SEC. 9. The Secretary shall invest and hold in separate accounts the 22 USC note 
amounts held respectively in the accounts established by section 4 of ^^^^- ^
^
"
^
^ 
this Act. Such investment shall be in public debt securities with 
maturities suitable for the needs of the separate accounts and bearing 
interest at rates determined by the Secretary, taking into considera-
tion the average market yield on outstanding marketable obligations 
of the United States of comparable maturities. The interest earned on 
the amounts in each account established by section 4 of this Act shall 
be used to make payments, in accordance with section 8(e) of this Act, 
on awards payable from that account. 
IMPLEMENTATION OF AGREEMENT 
SEC. 10. (a) If, within sixty days after the date of the enactment of 22 USC note 
this Act— 
prec. 1642. 
(1) the Government of the Czechoslovak Socialist Republic does 
not make the payments to the United States Government 
described in article 6(2) of the Agreement, or 
(2) the Czechoslovak Government does not receive the gold 
provided in article 6(1) of the Agreement, 
the provisions of this Act shall cease to be effective, and the provi-
sions of the Agreement may not be implemented unless the Congress 
approves the Agreement after the end of that sixty-day period. 
(b) The sixty-day period for implementation of the Agreement implementation 
required by subsection (a) shall be extended by an additional period of P^""'^';, 
thirty calendar days if, before the expiration of that sixty-day period, 
the Secretary of State certifies in writing that such extension is 
consistent with the purposes of this Act and reports that certification 
to the Speaker of the House of Representatives and to the Chairman 
of the Committee on Foreign Relations of the Senate, together with a 
detailed statement of the reasons for the extension. If at the end of 
that additional thirty-day period the events set forth in paragraphs 
(1) and (2) of subsection (a) have not occurred, the provisions of this 
Act shall cease to be effective and the provisions of the Agreement 
may not be implemented unless the Congress approves the Agree-
ment after the end of that thirty-day period or unless the Congress, 
before the expiration of that thirty-day period, authorizes by joint 
resolution a further extension of time for implementation of the 
extension. 
95 STAT. 1680 
PUBLIC LAW 97-127—DEC. 29, 1981 
Agreement. Such joint resolution shall be considered in the Senate in 
accordance with the provisions of section 601(b) of the International 
9
0 Stat. 765. 
Security Assistance and Arms Export Control Act of 1976, and in the 
House of Representatives a motion to proceed to the consideration of 
such joint resolution after it has been reported by the appropriate 
committee shall be treated as highly privileged. 
Reciprocal 
payments, 
review. 
22 u s e note 
prec. 1642. 
Report to 
Congress. 
SOCIAL SECURITY AGREEMENT 
SEC. 11. The Secretary of State shall conduct a detailed review of 
the exchange of letters between the United States and Czechoslova-
kia providing for reciprocal social security payments to residents of 
the two countries. Such review should include an examination of the 
extent to which Czechoslovakia is complying with the spirit and 
provisions of the letters, a comparison of the benefits being realized 
by residents of Czechoslovakia and of the United States under the 
letters, and an evaluation of the basis of differences in such benefits. 
The Secretary of State, in consultation with the Department of 
Health and Human Services, shall report to the Congress, not later 
than six months after the date of the enactment of this Act, the 
results of such review, together with any recommendations for 
legislation or changes in the agreement made by the letters that may 
be necessary to achieve greater comparability and equity of benefits 
for the residents of the two countries. Such report should include 
specific assessments of the feasibility, likely effects, and advisability 
of terminating United States social security payments to residents of 
Czechoslovakia in response to inequities and incomparabilities of 
benefits payments under the exchange of letters. 
Approved December 29, 1981. 
LEGISLATIVE HISTORY—S. 1946 (H.R. 5125) (S. 754): 
HOUSE REPORT No. 97-385 accompanying H.R. 5125 (Comm. on Foreign Affairs). 
SENATE REPORTS: No. 97-189 (Comm. on Finance) and No. 97-211 (Comm. on 
Foreign Relations) both accompanying S. 754. 
CONGRESSIONAL RECORD, Vol. 127 (1981): 
Dec. 11, considered and passed Senate. 
Dec. 15, H.R. 5125 considered and passed House; passage vacated and S. 1946, 
amended, passed in lieu. 
Dec. 16, Senate concurred in House amendment with an amendment; House 
concurred in Senate amendment.