Completed Programs - China

Program Overview

Number of Claims 657
Number of Awards 381
Amount of Awards - Principal $196,858,296
Amount of Fund $80,500,000
Amount of Payment $1,000 plus 39.03% of Principal

 

The first China Claims Program was administered pursuant to an amendment to Title V of the International Claims Settlement Act of 1949, as amended (the Act).  That amendment authorized the Commission to determine claims of nationals of the United States against the Government of the People’s Republic of China (PRC) based on: (1) losses resulting from the nationalization, expropriation, intervention, or other taking of, or special measures directed against, property by that government; and (2) the disability or death of nationals of the United States resulting from actions taken by or under the authority of that government.  The program covered claims for losses which occurred between October 1, 1949, when the PRC government ascended to power, and November 6, 1966, the date the program was authorized.

When the program was authorized, no funds were available with which to make payment on the claims.  The statute provided only for the determination of the validity and amounts of such claims and the certification of the Commission’s findings to the Secretary of State for use in the future negotiation of a claims settlement agreement with the Government of the People’s Republic of China.  The first China Claims Program was completed on July 6, 1972.

Subsequently, on May 11, 1979, the Governments of the United States and the People’s Republic of China concluded a formal claims agreement settling claims of nationals of the United States which arose between October 1, 1949, and the date of the agreement.  Under section 4(a) of Title I of the Act, the Commission is authorized to adjudicate claims of nationals of the United States for the nationalization or other taking of property included within the terms of any claims settlement agreement thereafter concluded between the United States and a foreign government (exclusive of governments against which the United States declared the existence of a state of war during World War II).  Pursuant to this authorization, the Commission adjudicated the claims of United States nationals which arose between November 6, 1966 and May 11, 1979.  The Commission completed the second China Claims Program on July 31, 1981.

Pursuant to the provisions of the agreement, the Government of the People’s Republic of China agreed to pay $80.5 million to the United States for deposit in a China Claims Fund established by the Department of the Treasury.  Under the agreement, the schedule of payments to the Department of the Treasury provided for an initial payment of $30 million on October 1, 1979 and five annual payments of $10.1 million on October 1 of each year thereafter, beginning in 1980 and ending in 1984.  Pursuant to the statutory payment provisions in section 8 of Title I of the Act, payments were made from the China Claims Fund by the Department of the Treasury on the losses certified in both the first and second China Claims Programs. 

Statutory Authority

First Program – Pub. L. 89-780; (22 U.S.C. 1643)

Second Program – Pub. L. 81-455; (22 U.S.C. 1623)

Pertinent International Agreements

Agreement between the Government of the United States of America and the Government of the People’s Republic of China Concerning the Settlement of Claims.  Signed at Beijing, May 11, 1979.