Canada. Foreign Claims Commission : The Foreign Claims Commission was established under Order in Council P.C. 2077, 8 December 1970, under Part I of the Inquiries Act (R.S.C., 1970, c.I-13) and on the recommendation of the Secretary of State for External Affairs and the Minister of Finance. This authorized the Commissioners to investigate claims by Canadian citizens or corporations against Hungary. By subsequent Orders in Council, the Commissioners were authorized to investigate claims against the following countries: Romania, Order in Council P.C. 571, 28 March 1972; Poland, Order in Council P.C. 571, 28 March 1972; revoked by Order in Council P.C. 1447, 28 May 1981; Czechoslovakia, Order in Council P.C. 3495, 6 November 1973; revoked by Order in Council P.C. 1447, 28 May 1981; Cuba, Order in Council P.C. 128, 22 January 1981; revoked by Order in Council P.C. 2513, 16 September 1981.
Under Order in Council P.C. 1447, 28 May 1981 (amended by P.C. 2471, 10 August 1983), the commission's terms of reference were extended to provide for a preliminary appraisal of claims of Canadian citizens against a foreign country before a claims agreement was reached with that country. This came about because the authority to pay for such an extension had been provided by Vote 16b of the Department of Finance, in the Appropriation Act No. 3, 1980-1981. The new mandate authorized the Commissioners to investigate claims by Canadian citizens against the following countries: Poland, Czechoslovakia and Cuba. Further, claims against China were referred to the Foreign Claim Commission by Order in Council P.C. 992, 1 April 1982. The Foreign Claims Commission was extended with new terms of reference by Order in Council P.C. 1169, 9 June 1987. It was authorized to investigate claims by Canadian citizens or corporations against East Germany and Yugoslavia.
The Commission was mandated to inquire into and report upon: (i) claims made by Canadian Citizens and the Government of Canada against Hungarian citizens and the Government of the Hungarian People's Republic, and (ii) any other claims that may be referred to the commission by the Governor in Council for which compensation may be paid out of the Foreign Claims Fund; that the Commissioners be authorized, subject to such regulations as may be made by the Governor in Council, to inquire into all particular claims described above, and be required to report on such claims to the Secretary of State for External Affairs and the Minister of Finance, stating whether in their opinion each claimant is eligible to receive payment out of the fund, the reasons for their opinion and their recommendation as to the amount that should be paid in respect of each such claim (Order in Council P.C. 2077, 8 December 1970).
The terms of reference, as extended by Order in Council P.C. 1447, 28 May 1981, were as follows: (a) to inquire into, report upon and make recommendations concerning claims made by Canadian citizens with respect to property rights and interests affected by measures of nationalization, expropriation, taking under administration or any other similar legislative or administrative measures taken by foreign governments; (b) that, where a claims agreement relating to the settlement of Canadian claims has not been signed with another government, the Commissioners be required to inquire into such claims as are referred to them by the Secretary of State for External Affairs and to inform the Secretary of State for External Affairs of their opinion, on the basis of material already available and provided to them by the Secretary of State for External Affairs, of the number of potentially valid claims against the government concerned, the estimated quantum thereof and the reasons for their opinion; (c) that, where a claims agreement relating to the settlement of Canadian claims has been reached with another government, the Commissioners be required, subject to such regulations as may be made by the Governor in Council, to inquire into such claims specified by the Governor in Council and to report to the Secretary of State for External Affairs and the Minister of Finance stating whether, in their opinion, a claimant is eligible to receive a payment out of the Foreign Claims Fund, the reasons for their opinion and their recommendation as to the amount that should be paid in respect of each such claim. The original Commissioners were Thane Alexander Campbell, Chief Commissioner, and Thomas D. MacDonald, Deputy Commissioner. In January 1975, J. Harrison Cleveland was appointed Commissioner and Thomas D. MacDonald became Deputy Chief Commissioner. These changes came about as Mr. Campbell became seriously ill in January 1974, and was unable to carry out his responsibilities after that time. In May 1981, Thomas D. MacDonald was promoted to the position of Chief Commissioner and J. Harrison Cleveland became Deputy Chief Commissioner (See Orders in Council P.C. 213, 30 January 1975 and P.C. 1447, 28 May 1981. The first Chief Commissioner of the Foreign Claims Commission, Thane A. Campbell, who had also served as Chief Claims Commissioner for the War Claims Commission, died on 28 September 1978).
The purpose of Vote Item 22(a) of the Department of Finance, in Schedule B of the Appropriation Act No. 9, 1966 (14-15 Eliz. II, c.55), was to authorize the federal Minister of Finance to establish a special account in the Consolidated Revenue Fund known as the "Foreign Claims Fund." In it was credited all amounts received from foreign governments with which the Government of Canada had agreements in respect of property nationalized, confiscated, expropriated, or similarly affected. These agreements, which were signed with certain foreign countries after 1 April 1966, related primarily to the settlement of claims of Canadian citizens or corporations. In order to be considered for compensation claimants had to meet certain citizenship requirements although these were not always the same for every country. In the case of Romania, Poland, Cuba and Czechoslovakia, the claim was, as a general rule, based on Canadian citizenship at the time of the loss and the date when the agreement was made. In the case of China and Hungary, the submission of claims was permitted for a limited time after agreements with these countries were made. But, there was an additional complication in the case of Romania because the "time of loss" requirement was extended for persons who qualified as "United Nations nationals" under the treaty of peace with that country.
Claimants were asked to submit details of their claims to the Department of External Affairs, together with documentation (deeds, wills, etc.) in support of their claims. They were also asked to include an evaluation of their losses based upon reasonable or fair market value of the property concerned at the time of the loss. At times, the Foreign Claims Commission had to obtain more evidence from claimants. Also, it made provision for hearings especially when claimants were disqualified for an award or the amount of it was considered inadequate by them.
Claims for war damage were not considered because these claims had already been adjudicated by the War Claims Commission which was established in October 1952. Other claims not considered included property located in a territory which was ceded to or became part of another country.
In 1970, the Foreign Claims Commission was established for the purpose of determining the eligibility of claimants for compensation from the Foreign Claim Fund. It was set up specifically for the purpose of dealing with claims made by Canadian citizens against the Government of Hungary.
Later, it determined the eligibility of other claims against other countries with which Canada had signed agreements. The following is a list of these countries and the dates of the respective agreements as well as the authorities (Orders in Council) for Foreign Claims Settlement Regulations under which claims to the Foreign Claims Commission were adjudicated (These authorities were pursuant to the general authority of Vote Item 22(a), in Schedule B of the Appropriation Act No. 9, 1966): Hungary (01/06/70; P.C. 2078, 08/12/70; P.C. 175, 28/01/75); Romania (13/07/71; P.C. 570, 28/03/72; P.C. 177, 28/01/75); Poland (15/10/71; P.C. 2311, 21/09/72; P.C. 176, 28/01/75; P.C. 2936, 18/12/75); Czechoslovakia (18/04/73; P.C. 3495, 06/11/73; P.C. 174, 28/01/75; P.C. 3368, 04/11/82; P.C. 507, 14/02/84); Cuba (07/11/80; P.C. 127, 22/01/81; P.C. 2512, 16/09/81); China (20/08/81; P.C. 995, 01/04/82; P.C. 2672, 01/09/83).
If the Foreign Claims Commission determined that a claimant was entitled to compensation in respect of such claim, money was paid to the claimant out of the Foreign Claims Fund. Payment was only made, however, when recommendations of the commission to the Secretary of State for External Affairs and the Minister of Finance were approved by these Ministers. Further, the claimant had to sign a release on any right to further claims from the Foreign Claims Fund. Such recommendations included the name of the eligible claimant, the amount that should be paid in respect of such claims, and the reasons for the decision taken (see Public Accounts of Canada, fiscal year ended 31 March 1967, Vol. II, Vote 22a, Schedule B, Appropriation Act No. 9, 1966 and Orders in Council P.C. 2077, 8 December 1970 and P.C. 1447, 28 May 1981. In addition, various notices to potential claimants which contain information on the scope of the negotiations, nationality requirements, valuation of claims, evidence required in support of claims, etc. are found in records of this commission).
In a separate inquiry of 1987, Peter A. Hargadon was appointed by Order in Council P.C. 1169, 9 June 1987, for a two year term, to investigate claims of Canadian citizens or corporations against the German Democratic Republic and the Socialist Federal Republic of Yugoslavia. However, none of the records included here are related to this inquiry. RG33-141 General Inventory
