No United States Government loans were available until repatriation started in the summer of 1942. My family was brought home on such a loan in 1943, and while we have been asked by the State Department to repay the loan, we have not been in a position to do so and do not expect to be able to do so until I am reestablished in my practice in Shanghai, at which time we shall be only too happy to repay the loan.

My greatest losses came after Pearl Harbor, December 8, 1941, when the Japanese took over the city of Shanghai.

Several

First of all my large nursery and garden were completely destroyed. thousand trees ranging from 5 to 20 years of age were either cut down and sold at greatly inflated prices or moved to centers where the Japanese were making civic improvements.

I saw this property just the day before Pearl Harbor and again 3 months later together with Mr. Robert Lang of Shanghai, when all but two roots of palm trees had been removed. Needless to say, I did not receive any money for any of these trees.

As a physician I was allowed to carry on my private practice until I became ill in November 1942. During this period the office was run at a loss due to the fact that many of my patients were without funds.

During this period all bank deposits were devalued, and a weekly limit of $500 (C. R. B.) was placed on withdrawals.

My office was sealed in January 1943, while I was still in the hospital. Much important equipment and furniture was removed by the Japanese. I estimate it will require about $15,000 (United States) to put my office in running order again.

My greatest loss has been that of income. While members of large firms and missionary societies have had their salaries saved for them while they have been in the hands of the Japanese, many, like myself, have not been so fortunate.

In normal times I carried $52,000 (United States) life insurance plus $20,000 accident insurance. Lack of income has made it necessary to sacrifice $45,000 (United States) in life insurance and $20,000 double indemnity.

All of our household furniture was labeled by the Japanese as being from that time forward the property of the Emperor of Japan. A Korean working for the Japanese lived in our house after our departure and we have been informed that many pieces of valuable equipment and furniture have been taken away.

A Ford Deluxe 1941 car was confiscated, for which a receipt was given. This receipt is now in the hands of my Chinese secretary in Shanghai.

Prior to our war with Japan I held shares in woolen mills and rubber companies in Shanghai. The status of these shares at the moment is most uncertain. Finally, just before liberation came, my eldest son, James Monroe Dunlap, died in the American camp as a result of malnutrition and repeated attacks of malaria, for which the Japanese did not provide adequate medicine.

In conclusion, Americans, like myself, who remained in China during part or all of the war with Japan were able, I believe, to contribute in no small way to the maintenance of cordial relations between the Chinese in occupied areas and Americans. The fact that some of us stayed to take our chances with the Chinese was frequently commented upon favorably by our Chinese friends.

It is our belief that the retention of this relationship has strengthened ChineseAmerican cooperation and has made and will make for better understanding between the two peoples.

Since these Americans, many of whom still remain in Shanghai and other port cities, lost heavily at the hands of the Japanese and are most anxious to reestablish themselves in China, it is hoped that early relief can be given them.

STATEMENT OF W. A. B. NICHOLS

Mr. NICHOLS. My name is W. A. B. Nichols, and I have lived for about 30 years in China, mostly in Tientsin; also in Shanghai. During that time, I established a world famous Chinese rug business, which consisted of large factories in Tientsin, large factories in Shanghai. When the Japanese occupied north China in 1937, they immediately declared martial law, and for the next 4 years we had to carry on our business under most serious difficulties due to the fact that the wool and cotton and all the things we needed were declared military necessities and were almost unobtainable through smuggling them into the city.

Then, on December 9, 1941, the Japanese moved into my plant and took it over and sold everything at auction. I have a statement from the Alien Property Commission in Shanghai showing that on various dates in 1942 the property was sold there for a total of 778,000 Chinese dollars, which, at the Treasury Department's rate of exchange, would equal about $41,000 in United States money. That is in Shanghai, where records are available.

At Tientsin apparently the Japanese did not keep any records, or the Allies failed to secure them when they took over, and consequently we have no idea what happened to the materials and plant and equipment there except that there is absolutely nothing left.

All the machinery, all the boilers and dyeing equipment, even the pipes for the artesian well, were pulled up and disposed of.

My home in Tientsin was occupied by the Japanese after Pearl Harbor, and Japanese military people lived there, Japanese consulate officials lived there, and from reports that I have had since then, everything in the house, the furniture, all furniture, all the rugs, everything, have been absolutely cleaned out, so that there is nothing left.

Now, I intend to return to China next June and desire to rehabilitate that business if possible. Consequently, any assistance that would be afforded by this bill would be greatly appreciated.

Then there is another category of claims in the way of shipments that were made from Tientsin to Japan before the freezing order of July 1941, and those claims have not been settled. A great many of them have been settled by the insurance companies, but some of them, for goods that were in Japan more than 15 days before the freezing order went into effect, have not been paid by anybody.

I have a letter here from the Alien Property Custodian which seems to have some bearing on what the gentleman stated before, in which they say that those claims cannot be dealt with until some clarifying legislation is passed by Congress. So it would seem that this bill might be in the right direction. This letter is signed by Mr. Ralph Berger, general counsel of the Alien Property Custodian's Office.

Senator MCFARLAND. Do you want to put that in the record?

Mr. NICHOLS. Well, yes. I would like to have this original or a copy of it. This refers specifically to goods that are in Japan and seized by the Japanese and held there, but due to a technical ruling by the insurance companies they have taken the position that the freezing order constituted the date upon which the Japanese actually seized the goods; and according to the war risk clauses and policies, everything held there 15 days before the freezing order is not covered. Now, there are many claims in that position, and apparently we cannot do anything about it because, according to this letter, the Alien Property Custodian is tied up with certain decisions that were made and it requires clarifying legislation. So that is about all I have to say. (The letter and statement are as follows:)

OFFICE OF THE ALIEN PROPERTY CUSTODIAN,
Washington, 25, November 7, 1945.

Claim No. 51.

PANDE, CAMERON & CO.,

New York 16, N. Y.

GENTLEMEN: Receipt is acknowledged of your letter of October 22, 1945, addressed to the Alien Property Custodian, Washington, D. C., in which you inquire as to the status of your claim designated by the above claim number. I cannot, at this time, advise you when your claim will be considered. Consultation with the Attorney General of the United States has indicated that at best the Cusodian can safely pay a very restricted class of creditors' claims. To pay such restricted class in the presence of other creditors creates serious problems and potential inequities. The Custodian has, therefore, decided not to embark upon any general program of payments to creditors for the present, but, together with the Attorney General, called the matter to the attention of the Congress by recommending for favorable consideration the provisions embodied in H. R. 5031, Seventy-eighth Congress, second session. While no final action was taken thereon prior to the adjournment of Congress, it is anticipated that legislation dealing with the subject may be considered during the present session. On April 3, 1945, the Circuit Court of Appeals for the Second Circuit, in the case of Cabell v. Markham (148 F. (2d) 737), reversing a decision by the United

States District Court for the Southern District of New York, held that debts due from the former owners of property vested by the Custodian are enforceable against the property, or its proceeds, notwithstanding the provisions of section 9 (e) of the Trading With the Enemy Act. A petition for certiorari has been granted by the Supreme Court in the Cabell case, however, and until that case has been finally decided, I do not expect that there will be any change in the Custodian's policy with respect to debt claims unless, of course, clarifying legislation is enacted in the meantime.

Sincerely yours,

** * *

RAOUL BERGER, General Counsel.

ALLIED NATIONALS' PROPERTIES ADJUSTMENT COMMISSION
JAPANESE LIAISON OFFICE, SHANGHAI

CERTIFICATE

DECEMBER 3, 1945.

To Whom It May Concern:

This is to certify that the articles formerly belonging to the Nichols Chinese Rugs, Inc., 1013 Whasing Road, were disposed of as follows:

STATEMENT OF C. A. EVANS, ASSOCIATE TREASURER OF THE ASSOCIATED BOARDS FOR CHRISTIAN COLLEGES IN CHINA

Mr. EVANS. Mr. Chairman, my name is C. A. Evans, associate treasurer of the Associated Boards for Christian Colleges in China. From February 1941 up to a year ago last May I was acting executive secretary of the Associated Boards. For 32 years, I was secretary of the Associated Boards. I represent the Associated Boards, which is the over-all organization of 13 mission colleges in China. These colleges originally were 25 colleges, and during the period of years they have been reduced to 13. They occupied areas in China at the beginning of the war from the north, in Peking, to the south, in Canton, all of which were in the war area.

The property was valued at $10,763,000. That valuation was based upon actual expenditures during probably a period of a hundred years, when prices were low in China, when labor, as you all know, was very low indeed.

In the early days of Japanese aggression in China, many of these universities were driven from their campuses. Some of them went way into the interior of China, into Sichwan Province, and some to nearby locations.

Mr. Roy G. ALLMAN. May I ask a question occasionally, Mr. Chairman? I want to get the date there. What date was the Japanese aggression?

Mr. EVANS. July 7, 1937. The colleges on the coast, in the Shanghai area, were sent back into Nanking. If I may correct that, they were held there for a short period, and then later on some went to Chungking and others went elsewhere. The Chinese, in all of these institutions that were loyal, were given charge of the property, but they were not able to cope with the situation as the Japanese came into the area. The Japanese, in case of Yen Ching University, to be specific, took all of the radiators out or broke them. I have an order in the

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office at the present time for approximately 350 tubes for the water boilers, a number of heads for the boilers. The equipment for the laboratories was all practically destroyed.

The books were removed. Some of those have been recovered.

Mr. Roy G. ALLMAN. Is all of this property owned by American interests? Mr. EVANS. The Associated Boards for Christian Colleges in China consists of the trustee boards of the various institutions. They were incorporated, all of them, in America, in the beginning; seven of them under the laws of the State of New York.

Mr. ROY G. ALLMAN. And they were created from American funds?
Mr. EVANS. From American funds entirely.

Senator MCFARLAND. But these colleges are of such a nature that the Chinese Government, I would think, would be interested in seeing them restored.

Mr. EVANS. They are anxious to do it, but they have not had up to the present time money sufficient to do that.

Senator MCFARLAND. I understand. But they ought to be insisting in any peace treaty that this kind of thing be taken care of. I presume they will.

Mr. Roy G. ALLMAN. Will the Chinese Government be insistent enough on that, and will they have the funds to replace that?

Senator MCFARLAND. It would not be the question of the Chinese Government doing it. It will be a question of forcing the Japanese to do it.

Mr. EVANS. Mr. Chairman, I do not think I am here in the capacity today prepared to put in any claim or to represent anybody who is going to put a claim in, but I would like to bring before the committee the extent of the losses, some idea of the losses.

The point is that in the case of every one of these institutions, the buildings were pretty largely destroyed, principally the residences. The concrete buildings remain, very largely; but the windows, the hardware, have been removed and the roofs are in bad shape. We have gone through all of these 13 colleges and have estimated the losses that we must face as a result of the Japanese invasion.

We cannot claim as to two: as to St. Johns, which was still on its own campus in Shanghai; and West China, which was still on its own campus in Chengtu. We cannot claim any loss there.

But our estimate is $4,348,000 for the entire group of 11 colleges. Those figures were estimated along about last January. We have had other word recently which would make us think that these figures might vary from five hundred thousand to six hundred thousand, one way or another.

We do not know what it will cost. Timber cannot be purchased in China at the present time. What is being used is the old stuff that has been taken down from other buildings, or such as the Japanese put up and have been torn down. In every instance the Japanese put up pillboxes or erected partitions in buildings. For instance, in Yen Ching University, the chapel was divided into small cubicles, presumably for prison cells. The size of the room was enough to accommodate several people, and the walls were a couple of feet thick in concrete. We can go on with our work, but that is one condition which the Japs have brought into being.

I am here, Mr. Chairman, simply to represent this group. We are getting some funds from some sources to help out in the starting of the colleges. At present, the United China Relief is giving some help, but that is very largely for the relief of personnel. We did not include in this estimate $20,000 which was lost by Yen Ching University at the very beginning of the war and which we have never been able to trace. We have not included in that estimate the amount of money required for travel for people coming back that were supported by the various universities.

Mr. Roy G. ALLMAN. All these losses are attributed directly to the Japanese? Mr. EVANS. Definitely.

STATEMENT OF MRS. R. T. BRYAN

My name is Gertrude Bryan. I am an American citizen and the wife of Robert T. Bryan, Jr., son of American missionaries from North Carolina. I first went to China in 1924 to teach in the Shanghai American school, a school of over 500 students, established to provide education for the children of American Government officials, missionaries and business families. I later married my husband, who was engaged in the private practice of law, and since that time I have made China my permanent home. In 1928 after the rendition of the

International Mixed Court at Shanghai and the establishment of a purely Chinese Court, my husband as a specialist in both American and Chinese law, was persuaded by the American consul general at Shanghai and the American chairman of the Shanghai Municipal Council, to leave private practice and to become head of the legal department of the Shanghai Municipal Council. He assumed this office in June 1928 and retained it until 1942, after the outbreak of the war. Then, as an enemy national, he was forced out by the Japanese. At about this same time, the Japanese confiscated much of our personal property, such as bank accounts, radio, cameras, and firearms, and later placed large placards on our house and tags on every article of household furniture from attic to cellar. These stated that all the property belonged to the Japanese Imperial Government, and prohibited its sale, removal, or transfer under threat of penalty under martial law. When my husband pointed out to the Japanese gendarme, who entered our home with armed guards and fixed bayonets, that this procedure was contrary to international law, the gendarme replied that Japan did not recognize the international law to which my husband referred but made her own international law. Japanese actions in regard to American private property certainly substantiated this statement.

In January 1943 my husband and I were ordered by the Japanese consul general to report for internment. At the time I was recovering from a broken leg and although barely able to walk on crutches, I was forced to carry my luggage from the outer gate of the internment camp to the fourth floor of a converted schoolhouse where we were billeted. Our room was 11 by 18 feet and shared with two other prisoners. We were urged to bring as much cash as possible to buy food to supplement the starvation diet provided by the Japanese. Through the kindness of loyal Chinese friends we were able to raise a substantial sum of money, which was taken from us and placed in the Yokohama Specie Bank to the personal account of the Japanese camp commandant. For a short time we were able to buy a very limited amount of food in the canteen but in a few months the canteen was closed and our money was retained in the commandant's account.

At the time of our internment, my husband requested, if possible, that his father, a man of 88, not be interned because of his advanced age and ill health. But if forced into internment he requested that his father be allowed to come to our camp where we could care for him. The Japanese authorities agreed to this but shortly after our arrival in camp, we learned that Dr. Bryan had been sent to another camp. We, then, requested a transfer but the request was not granted for 2 months. When the transfer was made to the second camp, we were housed in a flimsy, unheated building and assigned to a room 14 by 44 feet, with 12 other internees, with space only for our two beds and with no privacy. We found my husband's father in the camp infirmary, barely conscious, suffering from malnutrition and double pneumonia. My husband gave his father blood transfusions and protested to the Japanese authorities, who grudgingly permitted an increase in his food ration. He recovered sufficiently to return to America on the second trip of the Gripsholm but undoubtedly this harsh treatment in the camp accelerated his death. After having given 57 years of his life, as a cofounder of one of the outstanding Chinese universities and as a teacher of Christianity, Dr. Bryan lost his property and life's savings at the hands of the Japanese.

Because of my husband's efforts on behalf of his father, he jeopardized his chances for repatriation in September 1943 and, although he was eligible to return on the Gripsholm under the scheme laid down by the Japanese authorities, they refused to release him on the grounds that he had been engaged in antiJapanese activities. He was imprisoned until the end of hostilities and not released until August 30, 1945. When he returned to our home in Shanghai, which we had left in excellent condition, he found that it had been occupied by the Japanese gendarmerie and completely looted by them on their departure. You, perhaps, have heard of the infamous Bridge House in Shanghai where many an American was tortured. This torture house was in the eastern section of the city. Our home was used as a western area bridge house and according to our Chinese neighbors, many were held and tortured there. The neighbors actually saw two persons hanging by their thumbs from a willow tree in our front garden. When they died from this torture they were buried there. When hostilities ceased the Japanese gendarmerie removed the house furnishings in military motor trucks, and when my husband called at gendarmerie headquarters to make