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The, balances at credit of the Continental C. & G. Rubber Company (Limited), Hardt anil Co., and Rhodius and Co. (Limited) will be credited to the German Clearing Office under Article 297 (b) of the Treaty of Versailles, in accordance with paragraph 27 of the New Zealand Treaty of Peace Order, 1920. (viii.) Alien Enemies engaged in Foreign Trade. —The additional War Regulations issued on the 2nd May, 1916, prohibited any alien enemy other than one who was also a British subject from engaging in foreign trade. On the 20th August, 1917, the above restriction was amended so as not to apply to any alien enemy who was a British subject by naturalization in any part of the British Empire, or who was a subject of the United States of America by naturalization therein, provided that such alien enemy should not be engaged in foreign trade unless he was permitted so to do by a license issued by the Attorney-General. This restriction did not apply to trading operations within New Zealand by aliens resident in New Zealand. Many of the persons and firms who were prevented from trading by the foregoing regulations had considerable shipments on the water at the time the prohibition was issued. Licenses were therefore issued by the Attorney-General to enable such persons and firms to deal with these shipments, and the Public Trustee was required to supervise all the foreign correspondence of such firms and persons. The object was to prevent money or credit being remitted to the foreign correspondents of such alien enemies. The amounts payable to such firms and persons were not payable to the Public Trustee as Custodian of Enemy Property. 3. Control and Disposal op Enemy Goods. (i.) Enemy Goods shipped prior to Outbreak of War. —On the outbreak of war a considerable quantity of goods of enemy origin was in course of transit to New Zealand ; and as the state of war rendered it unlawful for the New Zealand banks, to whom the documents in connection with such shipments had been sent, to continue to act as agents for enemy banks or firms in connection with the collection and remittance of the amounts due on account of such goods, it was necessary that some arrangement should be made by the Government, as otherwise it would have been impossible for these goods to have been delivered to the consignees. In order to avoid the dislocation of trade and the inconvenience which would have resulted from the non-delivery of these goods, and to prevent any money or credit reaching the enemy, the Government directed the Customs authorities to arrange with the banks for such consignments to be delivered from the control of the Customs to the consignees on the purchase-money being paid to the credit of the Public Account. The Collectors of Customs at the various ports were authorized to indemnify, on behalf of the Government, the banks and the consignees against any claim in respect of the purchase-money which had been paid into the Public Account. The above procedure applied to all goods for which the purchase-money had not been paid prior to the outbreak of war. Where non-enemy banks had purchased foreign drafts in connection with shipments forwarded by enemy firms, or had made advances against such bills, the amounts due to such banks were paid out of the moneys collected. In cases where the invoices did not come to hand owing to the interruption of postal communication the Collector of Customs assessed the fair market value of the goods, and this amount was paid to the credit of the Public Account. On the appointment of the Public Trustee as Custodian of Enemy Property the sum of £5,281 18s. Bd., representing the proceeds of 120 shipments, was transferred to the Public Trust Office. This amount was held in the Common Fund of the Office. (ii.) Imports of Alleged Enemy Origin detained by Collectors of Customs. —The Collectors of Customs at the various ports were empowered under the War Regulations dated the 7th June, 1915, to detain any goods arriving in New Zealand if there were reasonable grounds for suspecting that such goods wore of enemy origin or ownership, or that the importation thereof was contrary to the law as to trading with the enemy (paragraph 2). During the period of such detention it was not lawful for the importer or any other person to pay or remit to any person any sum of money in respect of those goods (section 3). The Comptroller of Customs was authorized, if he thought fit, to deliver the goods from the control of the Customs on receiving from the importer the deposit of a sum equal to the fair market value of the goods (paragraph 4). When the Comptroller was satisfied that such goods were not of enemy origin the sum of money so deposited was to be returned. Power was also conferred by these regulations on the Comptroller of Customs to sell such goods at any time for the purpose of refunding to the Crown out of the proceeds of such sale all expenses so incurred by the Crown. The foregoing provisions, with several amendments, were reissued in the War Regulations dated the 13th October, 1916. The amended regulations were repealed on the 6th October, 1920, by the War Regulations Continuance Act, 1920. (iii.) Cargo of s.s. "Wismar." —With reference to the goods that were on board the s.s. " Wismar," an enemy ship which sought refuge in the territorial waters of the Dutch East Indies, a license under the Trading with the Enemy Act, 1914, was granted by the Governor, and gazetted on the 6th May, 1915, to permit all holders in New Zealand of bills of lading of any part of the cargo of this boat to pay to the owners of this steamship, or their agents, all charges by way of freight or otherwise the payment of which was necessary to secure the delivery of the said cargo. (iv.) Sale of Enemy Goods in Bond. —As a general rule the enemy goods in bonded warehouses were sold by the Collectors of Customs under section 95 of the Customs Act, 1913, and the proceeds, after payment of shipping and storage charges, &c, were paid to the Public Trustee as Custodian of Enemy Property. (v.) Power of Custodian of Enemy Property to sell Enemy Goods. —The War Regulations dated the 3rd April, 1916, required every person who held or controlled any enemy property to notify the Custodian of Enemy Property of the fact. In order that the Public Trustee as Custodian of Enemy Property might dispose of any enemy goods of a perishable nature, or where it was desirable for any other