A bill to amend the International Claims Settlement Act of 1949 to provide for the determination of the validity and amounts of claims of nationals of the United States against the German Democratic Republic.
PL 94-542 (S.3621), enacted 10/18/1976

PUBLIC LAW 94-542—OCT. 18, 1976 
90 STAT. 2509 
Public Law 94-542 
94th Congress 
An Act 
To amend the International Claims Settlement Act of 1949 to provide for the 
determination of the validity and amounts of claims of nationals of the United 
States against the German Democratic Republic. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled, That the Interna-
tional Claims Settlement Act of 1949, as amended, is amended by-
adding at the end thereof the following new title: 
"TITLE VI 
"PURPOSE o r TITLE 
"SEC. 600. It is the purpose of this title to provide for the determina-
tion of the validity and amounts of outstanding claims against the 
German Democratic Republic which arose out of the nationalization, 
expropriation, or other taking of (or special measures directed against) 
property interests of nationals of the United States. This title shall 
not be construed as authorizing or as any intention to authorize an 
appropriation by the United States for the purpose of paying such 
claims. 
"DEFINITIONS 
"SEC. 601. As used in this title— 
"(1) The term 'national of the United States' means— 
"(a) a natural person who is a citizen of the United States; 
"(b) a corporation or other legal entity which is organized 
under the laws of the United States or of any State, the District 
of Columbia, or the Commonwealth of Puerto Eico, if natural 
persons who are citizens of the United States own, directly or 
indirectly, 50 per centum or more of the outstanding capital stock 
or other beneficial interest of such corporation or entity. The term 
does not include aliens. 
"(2) The term 'Commission' means the Foreign Claims Settlement 
Commission of the United States. 
"(3) The term 'property' means any property, right, or interest, 
including any leasehold interest, and debts owed by enterprises which 
have been nationalized, expropriated, or taken by the German Demo-
cratic Republic for which no restoration or no adequate compensation 
has been made to the former owners of such property. 
"(4) The term 'German Democratic Republic' includes the govern-
ment of any political subdivision, agency, or instrumentality thereof 
or under its control. 
"(5) The term 'Claims Fund' is the special fund established in the 
Treasury of the United States composed of such sums as may be paid to 
the United States by the German Democratic Republic pursuant to the 
terms of any agreement settling such claims that may be entered into 
by the Governments of the United States and the German Democratic 
Republic. 
Oct. 18. 1976 
[S. 3621] 
International 
Claims 
Settlement Act of 
1949, 
amendments. 
22 u s e 1644. 
22 u s e 1644a. 
89-194 O—78—pt. 2 
66 
90 STAT. 2510 
PUBLIC LAW 94-542—OCT. 18, 1976 
ii 
22 use 1644b. 
Publication in 
Federal Register. 
22 use 1644c. 
RECEIPT AND DETERMINATION OF CLAIMS 
"SEC. 602. The Commission shall receive and determine in accord-
ance with applicable substantive law, including international law, the 
validity and amounts of claims by nationals of the United States 
against the German Democratic Republic for losses arising as a result 
of the nationalization, expropriation, or other taking of (or special 
measures directed against) property, including any rights or interests 
therein, owned wholly or partially, directly or indirectly, at the time 
by nationals of the United States whether such losses occurred in the 
German Democratic Republic or in East Berlin. Such claims must be 
submitted to the Commission within the period speciified by the Com-
mission by notice published in the Federal Register (which period 
shall not be more than twelve months after such publication) within 
sixty days after the enactment of this title or of legislation making 
appropriations to the Commission for payment of administrative 
expenses incurred in carrying out its functions under this title, which-
ever date is later. 
u. 
OWNERSHIP OF CLAIMS 
"SEC. 603. A claim shall not be favorably considered under section 
602 of this title unless the property right on which it is based was 
owned, wholly or partially, directly or indirectly, by a national of the 
United States on the date of loss and if favorably considered, the 
claim shall be considered only if it has been held by one or more 
nationals of the United States continuously from the date that the loss 
occurred until the date of filing with the Commission. 
CORPORATE CLAIMS 
22 use 1644d. 
"SEC. 604. (a) A claim under section 602 of this title based upon an 
ownership interest in any corporation, association, or other entity 
which is a national of the United States, shall not be considered. A 
claim under section 602 of this title based upon a debt or other obliga-
tion owing by any corporation, association, or other entity organized 
under the laws of the United States, or of any State, the District of 
Columbia, or the Commonwealth of Puerto Rico shall be considered 
only when such debt or other obligation is a charge on property which 
has been nationalized, expropriated, or taken by the German 
Democratic Republic. 
"(b) A claim under section 602 of this title based upon a direct 
ownership interest in a corporation, association, or other entity for 
loss, shall be considered subject to the provisions of this title, if such 
corporation, association or other entity on the date of the loss was not 
a national of the United States, without regard to the per centum of 
ownership vested in the claimant. 
"(c) A claim under section 602 of this title for losses based upon an 
indirect ownership interest in a corporation, association, or other 
entity, shall be considered, subject to the other provisions of this title, 
only if at least 25 per centum of the entire ownership interest thereof, 
at the time of such loss, was vested in nationals of the United States. 
"(d) The amount of any claim covered by subsections (b) or (c) of 
this section shall be calculated on the basis of the total loss suffered by 
such corporation, association, or other entity, and shall bear the same 
proportion to such loss as the ownership interest of the claimant at the 
time of loss bears to the entire ownership interest thereof. 
PUBLIC LAW 94-542—OCT. 18, 1976 
90 STAT. 2511 
"OFFSETS 
"SEC. 605. In determining the amount of any claim, the Commission 
shall deduct all amounts the claimant has received from any source on 
account of the same loss or losses, including any amount claimant 
received under section 202(a) of the War Claims Act of 1948, as 
amended, for losses which occurred as a direct consequence of special 
measures directed against such property in any area covered under this 
title. 
22 u s e 1644e. 
50 u s e app. 
2017a. 
(( 
CONSOLIDATED AWARDS 
"SEC. 606. With respect to any claim under section 602 of this title 22 USe 1644f. 
which, at the time of the award, is vested in persons other than the 
person by whom the original loss was sustained, the Commission shall 
issue a consolidated award in favor of all claimants then entitled 
thereto, which award shall indicate the respective interests of such 
claimants therein, and all such claimants shall participate, in propor-
tion to their indicated interests, in any payments that may be made 
under this title in all respects as if the award had been in favor of a 
single person. 
"CLAIMS FUND 
"SEC. 607. (a) The Secretary of the Treasury is hereby authorized to 
establish in the Treasury of the United States a fund to be designated 
the Claims Fund as defined under section 601(5) for the payment of 
unsatisfied claims of nationals of the United States against the German 
Democratic Republic as authorized in this title. 
" (b) The Secretary of the Treasury shall deduct from any amounts 
covered into the Claims Fund, an amount equal to 5 per centum thereof 
as reimbursement to the Government of the United States for expenses 
incurred by the Commission and by the Treasury Department in the 
administration of this title. The amounts so deducted shall be covered 
into the Treasury to the credit of miscellaneous receipts. 
Establishment. 
22 use 1644g. 
u 
AWARD PAYMENT PROCEDURES 
"SEC. 608. (a) The Commission shall certify to the Secretary of the 22 USe 1644,h. 
Treasury, in terms of United States currency, each award made pur-
suant to section 602 of this title. 
" (b) Upon certification of such award, the Secretary of the Treasury 
is authorized and directed, out of the sums covered into the Claims 
Fund, to make payments on account of such awards as follows, and in 
the following order of priority: 
"(1) payment in full of the principal amount of each award 
of $1,000 or less; 
"(2) payment in the amount of $1,000 on account of the prin-
cipal amount of each award of more than $1,000 in principal 
amount; 
"(3) thereafter, payments from time to time, in ratable propor-
tions, on account of the unpaid balance of the principal amounts 
of all awards according to the proportions which the unpaid 
balance of such awards bear to the total amount in the fund 
available for distribution at the time such payments are made; 
"(4) after payment has been made in full of the principal 
amounts of all awards, pro rata payments may be made on account 
of any interest that may be allowed on such awards; 
90 STAT. 2512 
PUBLIC LAW 94-542—OCT. 18, 1976 
22 use 1644i. 
"(5) payments or applications for payments shall be made in 
accordance with such regulations as the Secretary of the Treasury 
may prescribe. 
"SETTLEMENT 
PERIOD 
"SEC. 609. The Commission shall complete its affairs in connection 
with the settlement of claims pursuant to this title not later than three 
years following the final date for the filing of claims as provided in 
section 602 of this title. 
22 use 1644J. 
22 use 1644k. 
"TRANSFER or RECORDS 
"SEC. 610. The Secretary of State is authorized and directed to 
transfer or otherwise make available to the Commission such records 
and documents relating to claims authorized by this title as may be 
required by the Commission in carrying out its functions under this 
title. 
APPROPRIATIONS 
"SEC. 611. There are hereby authorized to be appropriated such sums 
as may be necessary to enable the Commission and the Treasury 
Department of pay their respective administrative expenses incurred 
in carrying out their functions under this title. 
(( 
22 use 1644Z. 
FEES FOR SERVICES 
"SEC. 612. No remuneration on account of services rendered on be-
half of any claimant, in connection with any claim filed with the Com-
mission under this title, shall exceed 10 per centum of the total amount 
paid pursuant to any award certified under the provisions of this 
title on account of such claims. Any agreement to the contrary shall be 
unlawful and void. Whoever, in the United States or elsewhere 
demands or receives, on account of services so rendered, any remunera-
tion in excess of the maximum permitted by this section shall be guilty 
of a misdemeanor, and, upon conviction thereof, shall be fined not 
more than $5,000 or imprisoned not more than twelve months, or both. 
a 
22 use 1644m. 
22 use 1623, 
1626. 
22 use 1644 
note. 
APPLICATION o r OTHER LAWS 
"SEC. 613. To the extent they are not inconsistent with the provisions 
of this title, the following provisions of title I of the Act shall be 
applicable to this title: subsections (b), (c), (d), (e), (h),and (j) of 
section 4; subsections (c), (d), (e), and (f) of section 7. 
'SEPARABILITY 
"SEC. 614. If any provisions 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 cir-
cumstances shall not be affected. 
'PROTESTS 
22 use 1623 
note. 
50 use app. 
20171, 2017J. 
50 use app. 
2001 note. 
5 use app. II, 22 
use 1622 note. 
"SEC. 615. Notwithstanding the provision of sections 210 and 211 of 
the War Claims Act of 1948 (Act of July 3, 1948), as amended by 
Public Law 87-846, the Foreign Claims Settlement Commission estab-
lished by Reorganization Plan No. 1 of 1954 (68 Stat. 1279) is author-
ized and directed to receive and consider protests relating to awards 
made by the Commission during the ten calendar days immediately 
PUBLIC LAW 94-542—OCT. 18, 1976 
90 STAT. 2513 
Publication in 
Federal Register. 
preceding the expiration of the Commission's mandate to make such 
awards on May 17,1967. Any such protests must be filed within ninety 
days after notice of the enactment of this provision is filed with and 
published in the Federal Register, which shall take place within thirty 
da^s of enactment. Such protests may include the submission of new 
evidence not previously before the Commission, and shall be acted upon 
within thirty days after receipt by the Commission. The Commission 
may modify awards made during the subject period in accordance with 
the procedures established by the War Claims Act of 1948, and any 50 U
S
C app. 
increases in awards determined to be appropriated by the Commission 2001 note, 
shall be certified to and paid by the Secretary of the Treasury out of 
funds which are now or may hereafter become available in the War 
Claims Fund in accordance with section 213 of the Act.". 
50 USC app. 
2017/. 
Approved October 18, 1976. 
LEGISLATIVE HISTORY: 
SENATE REPORT No. 94-1188 (Comm. on Foreign Relations). 
CONGRESSIONAL RECORD, Vol. 122 (1976): 
Sept. 17, considered and passed Senate. 
Sept. 30, considered and passed House.