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Postwar Nationalizations and Alien Property in Bulgaria

Published online by Cambridge University Press:  28 March 2017

Ivan Sipkov
Ivan Sipkov*
Affiliation:
Law Library, European Law Division, Library of Congress
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Extract

1. In the course of the last decade, students of legal and economic questions have been attempting to throw some light on the problem of nationalizations in the Soviet satellite countries in general, and in Bulgaria in particular.

Type
Research Article
Information
American Journal of International Law , Volume 52 , Issue 3 , July 1958 , pp. 469 - 494
Copyright
Copyright © American Society of International Law 1958

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References

1 Ivan Altunov, ‘ ‘ Mezhdunarodno-chastno-pravni problemi na natsionalizatsiite i planiraneto” [Private International Law Problems of Nationalizations and Economic Planning], in Pravni problemi na dŭrzhavniia narodostopanski plan, chast II, kniga 1 (Sofia, 1953) 299-325; Doman, N.R., “Compensation for Nationalized Property in Post-War Europe,” 3 Int. Law Q. 323-342 (1950)Google Scholar; idem, “ Post-War Nationalization of Foreign Property in Europe,” 48 Col. Law Bev. 1125-1161 (1948); Martin Domke, , “On the Extraterritorial Effect of Foreign Expropriation Decrees,” 4 Western Pol. Q. 12-16 (1951)Google Scholar; Drost, Heinrich, “Die Rechtslage des deutschen Auslandsvermögens,” 2 Archiv des Völkerrechts 298-304 (1949/50)Google Scholar; Alfred Drucker, “The Nationalization of United Nations Property in Europe,” 36 Grotius Society Transactions 75 ff. (1951); Lazar Focsaneanu, , “Les conséquences internationales des nationalisations,” 18 Politique Etrangére 35-50 (1953)Google Scholar; Friedman, S., Expropriation in International Law (London, Stevens&Sons, 1953)Google Scholar; Gutteridge, J., “Expropriation and Nationalization in Hungary, Bulgaria and Romania,” 1 Int. and Comp. Law Q. 14-28 (1952)Google Scholar ; Hecke, G.A.van, “Confiscation, Expropriation and the Conflict of Laws,” 4 Int. Law Q. 345-357 (1951)Google Scholar; Herman, Samuel, “War Damage and Nationalization in Eastern Europe,” 16 Law and Contemporary Problems 498-518 (1951)Google Scholar ; A.N.Iodkovskii, Natsionalizatsiia v evropeiskikh stranakh narodnoi demokratii. Sravnitelnyi obzor zakonodatel'stva [Nationalization in the People's Democracy's Countries in Europe. Comparative Study of Legislation] (Moscow, 1956) ; Katzarov, Konstantin, “Die Nationalisierung in Osteuropa,” 3 Osteuropa-Recht 8-17 (1957)Google Scholar; A.K.Kuhn, , “Nationalization of Foreign-Owned Property in Its Impact on International Law,” 45 A.J.I.L. 709-712 (1951)Google Scholar; Vladimir Kutikov, “Planiraneto i natsionalizatsiite v NR Bŭlgariia i tiaklmoto otrazhenie vŭrkhu bŭlgarskata sistema na mezhdunarodnoto cliastno pravo” [Economic Planning and Nationalizations in the PR of Bulgaria and Their Effects upon the Bulgarian System of Private International Law], in Pravni problemi na dŭrzhavniia narodostopanski plan, chast II, kniga 1 (Sofia, 1953) 327-358; Nikola Manchev and Ivan Dermendzhiev, “Promishlenoto agrarno, tŭrgovsko i stroitelno zakonodatelstvo'’ [Legislation on Industry, Agriculture, Commerce and Building Construction], in Pravni problemi na dŭrzhavniia narodostopanski plan, kniga 1 (Sofia, 1951) 22-63; Mann, F. A., “German External Assets,” 24 British Year Book of Int. Law 239-257 (1947)Google Scholar ; Andrew Martin, “Private Property, Rights, and Interests in the Paris Peace Treaties,” ibid. 273-300; D.Re, Edward, “ The Nationalization of Foreign-Owned Property,” 30 Minn. Law Rev. 323-342 (1952)Google Scholar; Ignaz Seidl- Hohenveldern, “Extraterritorial Effect of Confiscation and Expropriation,” 49 Mich. Law Rev. 851-868 (1951); idem, Internationales Konfiskations- und Enteignungsrecht (Berlin-Tübingen, 1951); Sharp, S.L, The Nationalization of Key Industries in Eastern Europe (Washington, D.C, 1946).Google Scholar

2 Bulgarian Official Law Gazette No. 60, July 26, 1955. This publication was called Dŭrzhaven Vestnik until Nov. 30, 1950; since Dec. 1, 1950, it has the title Izvestiia na Presidiuma na Narodnoto Sŭbranie, hereinafter abbreviated as IPNS. Its previous title is hereinafter referred to as DV.

3 Herman, loc. cit. 505; Doman, 48 Col. Law Rev. 1127.

4 DV No. 219.

5 DV No. 213.

6 DV No. 78.

7 Sharp, op. cit. 28-29. This law is applicable to acquisition of property dating back to Jan.1, 1935, and defines as “speculation” any activity which has disproportionately increased the material fortune of persons and firms through profits, commissions, bonuses, incomes “ at the time of difficulty for the State . “ “Illegal property” is that acquired in connection with anti-national activity or through transgression of official duties.

8 DV No. 77. As used in this paper, the term “Allied and Associated Powers” means in relation to Bulgaria: the U.S.A., United Kingdom and the U.S.S.R. The war between Bulgaria and the U.S.A. broke out on Dec. 12, 1941; the Soviet Union declared war on Bulgaria on Sept. 5, 1944.

9 According to Deutsches Vermögen im Ausland, Internationale Vereinbarungen und ausländische Gesetzgebung (herausgegeben vom Bundesminiaterium der Justiz, Köln), Vol. 3, p.149, diplomatic relations between Bulgaria and Germany were severed on Sept. 7, 1944, and the war between these two countries was declared on Sept. 8, 1944. The war on Germany was declared by the Bulgarian Government headed by K.Muraviev which was overthrown one day later by the Fatherland Front.

10 The Peace Treaty with Bulgaria became effective as of Sept. 15, 1947.

11 DV No. 77.

12 Section 15.

13 This law was clarified by a special Regulation concerning its application, Aug. 31, 1942, DV No. 193.

14 DV No. 94, May 2, 1942.

15 DV No. 109, May 22, 1942.

16 39 A.J.I.L. Supp. 93-96 (1945).

17 DV No. 204, Supp., Sept. 19, 1944.

18 DV No. 204, Supp., Sept. 19, 1944. This Resolution was explained in some detail by the Circular Letter of the Ministry of Commerce, Industry and Labor, No. 1142 of Sept. 21, 1944, DV No. 206. On Aug. 6, 1945 (DV No. 183, Aug. 9, 1945), the Ministry of Commerce and Industry issued a Circular Letter No. 4252 ordering all government, government autonomous and municipal offices as well as all private banks, associations and persons to declare all real and personal property belonging to enemy citizens (German and Hungarian) and all debts to physical and juridical persons residing or having their seats in enemy countries (Germany or Hungary).

19 DV No. 1, Jan. 2, 1945. All these measures were supplemented by the 5th Resolution of the Cabinet of June 27, 1946 (DV No. 150, July 5, 1946). The latter provided that all physical and juridical persons of German and Hungarian citizenship were to declare their property possessed as of Sept. 5, 1944, within 15 days. This act warned that “this is the last prolongation of the terms” for declaration of the property. Also commercial firms which were in liquidation were ordered to register all securities belonging to German and Hungarian citizens (DV No. 235, Oct. 14, 1946).

20 DV No. 217, Oct. 4, 1944.

21 DV No. 196, Aug. 28, 1946.

22 DV No. 231.

23 DV No. 186.

24 39 A.J.I.L. Supp. 245 at 251 (1945).

25 Mann, loc. cit. 239.

26 DV No. 120, Supp.

27 DV No. 164, July 22, 1946.

28 Beginning Sept. 16, 1946, the Commissioner to Carry Out the Armistice Agreement issued a great number of orders declaring certain shares (former German property) which were not transferred in time to the Soviet Union as null and void and ordered the companies to issue new shares. These orders were published in DV No. 211, Sept. 16, 1946; No. 235, Oct. 14, 1946; No. 269, Nov. 22, 1946; No. 286, Dec. 12, 1946; No. 13, Jan. 18, 1947; No. 41, Feb. 20, 1947; No. 184, Aug. 11, 1947; No. 198, Aug. 27, 1947.

29 DV No. 205.

30 DV No. 201, Aug. 30, 1947.

31 42 A.J.I.L. Supp. 188 (1948). According to Das Deutsche Auslandsvermögen, Uebersicht über den Stand Oktober 1949 und Anregungen für die weitere Behandlung (herausgegeben vom Deutsches Büro für Friedensfragen in Stuttgart, den 20. November, 1949, mimeographed), p. 2 of Appendix A, the German assets in Bulgaria were 14,000,000 dollars (estimated on the 1938/9 purchasing power of the dollar).

32 17 Dept. of State Bulletin 298 (Aug. 10, 1947).

33 DV No. 114.

34 42 A.J.I.L. Supp. 186 (1948).

35 DV No. 302, Dec. 27, 1947, Sec. 4.

36 Ibid., See. 3.

37 The explanation of the term “United Nations nationals” is given in Art. 32 and Art. 23, par. 8 (a) of the Peace Treaty with Bulgaria.

38 42 A.J.I.L. Supp. 70 (1948).

39 Grzybowski, Kazimierz, “Foreign Investment and Political Control in Eastern Europe,” 13 Journal of Central European Affairs 13 (1953).Google Scholar

40 According to a publication in DV No. 209 of Sept. 11, 1949 (p. 4), the Italian- Bulgarian Commercial Bank (an establishment of the Italian bank “Commerciale“), “ceased to exist independently” and the inscription was made in the commercial register at the Sofia District Court (upon decision No. 948 of the court of April 13, 1948) that, on the basis of Sec. 2 of the Law on Banking of 1947, “ the assets and liabilities [of this bank] are transferred entirely and by law to the Bulgarian National Bank in Sofia.” As explained below (subsec. F), all Bulgarian and foreign banks were nationalized and became government property with the exception of the property belonging to the Soviet Union.

41 DV No. 115; correction: DV No. 121, May 29, 1945; amended: DV No. 142, June 22, 1945; repealed: DV No. 50, March 2, 1948.

42 DV No. 213; amended several times; repealed: IPNS No. 13, Feb. 13, 1953.

43 DV No. 100.

44 DV No. 93.

45 Terpeshev, Dobri, The Two-Year Economic Plan (Sofia, Ministry of Information and Arts, Press Department, 1947), p. 5.Google Scholar

46 DV No. 284.

47 Sec. 39 of the Constitution.

48 DV No. 12. The Regulation Concerning the Government Planning Commission was later superseded by the Regulation of the same title of May 1, 1953, IPNS No. 35.

49 DV No. 50.

50 DV No. 12.

51 DV No. 97.

52 DV No. 100.

53 DV No. 213.

54 DV No. 93.

55 DV No. 107.

56 DV No. 50.

57 DV No. 12.

58 Kutikov, loc. cit. 343.

59 tainov, Petk, Bukovodstvo po Adminiatrativno pravo [Manual of Administrative Law] (Sofia, Nauka i Izkustvo, 1950), p. 184.Google Scholar

60 DV No. 246.

61 Sec. 10, par. 6.

62 Sec. 13, par. 1.

63 Ibid., par. 2.

64 Law on Government Insurance Agency, DV No. 143, June 27, 1946.

65 Law to Nationalize All Private Industrial and Mining Enterprises, DV No. 302, Dec. 27, 1947.

66 Law on Banking, ibid.

67 Law on Closing the Commodity Exchanges, DV No. 305, Dee. 31, 1947.

68 Law on Government Monopoly of Tobacco, DV No. 96, April 28, 1947; Law on Government Monopoly of Spirits, DV No. 178, Aug. 4, 1947; Law on Government Monopoly of Oil Products, DV No. 55, March 9, 1948, and others.

69 Law to Purchase All Inventories of Commercial Establishments, DV No. 294, Dec. 15, 1948.

70 DV No. 279.

71 Otechestven Front (Sofia) daily, organ of the National Council of the Fatherland Front and the Presidium of the National Assembly.

72 DV No. 114,as amended several times.

73 DV No. 275.

74 DV No. 288.

75 IPNS No. 78. This Edict was amended on April 10, 1953 (IPNS No. 29).

76 IPNS No. 66.

77 This regulation was issued on grounds of Edict of April 10, 1953 (IPN8 No. 29), which amended the Edict of Sept. 28, 1951 (IPNS No. 78).

78 IPNS No. 4.

79 Kutikov, loc cit. 338.

80 DV No. 96.

81 DV No. 178.

82 DV No. 55.

83 Laws on Temporary Regulation of the Question as to the Purchase of Tobacco, Crop—1944 (DV No. 54, March 8, 1945); Crop—1945 (DV No. 59, March 14, 1946) ; Crop—1946 (DV No. 58, March 13, 1947).

84 DV No. 96; amended: DV No. 93, April 22, 1948; DV No. 234, Oct. 6, 1948; IPNS No. 41, May 22, 1951; IPNS No. 39, May 10, 1952.

85 DV No. 18; this law was superseded by the Law on Government Property of Dec. 22, 1948, DV No. 300.

86 DV No. 93.

87 DV No. 55. Ordinance Concerning Application of Sections 6, 12 and 13 of this law, DV No. 65, March 20, 1948; Ordinance Concerning Application of Sections 6, 7, and 10 of this law, DV No. 252, Oct. 27, 1948; Regulation for Application of this law, DV No. 152, J u l y 5, 1949.

88 As regards the mining and industrial enterprises of oil and oil products, see Section V: Industry and Mining.

89 Kutikov, loc. cit. 342.

90 DV No. 143. This law was amended by the Edict of Aug. 17, 1950, DV No. 194; the Statute of the Government Insurance Agency was published on Dec. 30, 1952, IPNS No. 107.

91 DV No. 120, Supp.

92 This law was published on Dec. 27, 1947 (DV No. 302), but it came into effect on the day of its approval by the Grand National Assembly (Dec. 24, 1947), as announced over the radio (see Sec. 24 of this law). Regulation Concerning the Implementation of this law was published in DV No. 39, Feb. 18, 1948.

93 DV No. 80; amended: DV No. 146, June 27, 1947.

94 DV No. 71.

95 This company was dissolved on Oct. 9, 1954, according to an announcement in the Bulgarian press (Otechestven Front, Oct. 13, 1954).

96 DV No. 176.

97 DV No. 302.

98 “ On the eve of nationalization, the country had in all 627 banking establishments worth mentioning. The National Bank and 99 local establishments; the Agricultural and Cooperative Bank—175; Bulgarian Credit—33; Popular Banks—225; private banks —66. To this we must add 1,032 branches of the Postal Savings Bank and 2,952 agricultural- co-operative-credit establishments which for the time being have a limited activity. There is therefore in the whole country a total of 4,511 banking establishments,” according to a statement of Prof. Ivan Stefanov, former Minister of Finance, which appeared in “Nationalization of Industry and Banks in Bulgaria” (Sofia, Ministry of Foreign Affairs, Press Department, 1948), p. 27.

99 There were 5 larger private banks worth mentioning: Bulgarian Commercial Bank, in which French capital from the group Banque de Paris &des Pays-Bas was participating; Italian&Bulgarian Commercial Bank, establishment of the Italian bank “Commerciale“; Prague Credit Bank's branch in Bulgaria; Macedonian National Bank; Bulgarian Discount Bank. Ibid., p. 25.

100 For instance, the agreement between the Bulgarian Government and Banque de Paris&des Pays-Bas, branch de Genève, concerning its capital in the nationalized French-Bulgarian Commercial Bank in Sofia (DV No. 256, Nov. 4, 1947).

101 For instance, the former German Credit Bank is now the property of the Soviet Union under Art. 24 of the Peace Treaty.

102 DV No. 87; correction: DV No. 91, April 20, 1948.

103 After 1934, foreigners were denied the right to possess real property in the village communes. Therefore, the land reform, which greatly affected landowners in the villages, is not subject to discussion here.

104 DV No. 87.

105 Sec. 44 of the Regulation.

106 DV No. 80 as amended,

107 Sec. 69 of the Regulation,

108 Sec. 70 of the Regulation.

109 IPNS No. 56.

110 Sec. 4, par. 3, of this law.

111 Sec. 54 of this Regulation. See. 66 of the Regulation Concerning the Implementation of the Law on Nationalization of Industry of Feb. 18, 1948, DV No. 39, has the same text.

112 DV No. 256, Nov. 4, 1947.

113 Ivan Dermendzhiev, ‘’ Prinuditelno izzemvane na dvizhimi veshti za obshtestvena polza,” in Yearbook [Godishnik] of the Sofia University Law School, Vol. 43 (1947/48), No. 8, p. 107.

114 IPNS No. 40, May 11, 1952.

115 Art. 14 reads as follows: “No compensation is granted to owners of nationalized enterprises who have actively served or helped: (a) the German state, the German Army or its units during the last World War, or the fascist Italian state, its Army or army units until the day of the capitulation of Italy to the United Nations; (b) the Bulgarian fascist police, gendarmerie or Army against the fighters against fascism and their organizations in the period from March 1, 1941 to the end of 1944; (c) foreign agents and spies and persons incriminated for activity aiming at the restoration of the fascist dictatorship in the period from September 9, 1944 to the day this law comes into effect; The deprivation of compensation is decided by the Council of Ministers on report of the Minister of Industry and Handicrafts giving its reasons.“

116 IPNS No. 56, July 13, 1951.

117 Kutikov, loc. cit. 350.

118 Kutikov, loc. cit. 357.