l/n/YPf. tfC COUNSELOR 5 4K*J* DEPARTMENT OF STATE WASHINGTON 16 28 V October 26, 1939 26tTCT My dear Lord Lothian: With further reference to your letter of October 14 I write to inform you that in pursuanoe of our arrange- ment the matter of the claims of British insurance oompanies before the Mixed Claims Commission, United States and Germany, was the subject of a conference in my office on Friday, October 20, between members of your staff and officials of this Department. The Agreement of August 10, 1932 between the United States and Germany provides for the consideration of claims by two national Commissioners in the first in- stance. As you know, the Commissioner appointed by Germany resigned in March of this year and the German Government has not appointed a successor. Under the present circum- stances there would appear to be no possibility of ob- taining a ruling by the Commission in relation to the claims His Excellency The Right Honorable The Marquess of Lothian, C.H., British Ambassador. $$\jy 1 -2- olaims of British insurers. Consequently it does not appear that any useful purpose would be served by a re- examination of the matter at this time. I may point out, moreover, that en more than one occasion subsequent to the Department's note of April 11, jthujvX y^!929 to Sir Esme Howard the Department, in pursuance of /J^. petitions of attorneys for the interested companies, re- examined the question of presenting these claims to the Commission and declined to depart from its original position. With reference to your suggestion that in the event of a final decision adverse to Germany in the claims pre- sented in behalf of American claimants arising out of the "Black Tom*1 explosions, the payment of awards to such Ameri- can claimants be deferred pending a reconsideration of the British insurance company claims, I may observe that the "Settlement of War Claims Act of 1928*, approved March 10, 1928, would seem to require the Secretary of the Treasury to pay such awards within the limitations, and in the order of priority, prescribed by the Act. Very sincerely yours, 462.11 In 78