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PART 11. 14. General Provisions of New Zealand Treaty of Peace Order, 1920. (i.) Treaty of Versailles. —For the purpose of giving effect in New Zealand to the provisions of the Treaty of Peace with Germany an Order in Council, cited as the Treaty of Peace Order, 1920, was signed by the Governor-General on the Ist June, 1920, and issued as Gazette Extraordinary No. 57, dated the 7th June, 1920. Section 18 of the Treaty of Peace Order, 1920, provides that every Court in New Zealand shall take judicial notice of the terms of the Treaty of Versailles. (ii.) Establishment of New Zealand Clearing Office. —In accordance with, the provisions of Article 296 of the Treaty of Versailles a local Clearing Office (known as the N; w Zealand Clearing Office) was established, through which all debts which fell due prior to the 10th January, 1920, between German nationals residing in Germany and British nationals residing in New Zealand, including the Cook Islands and the territory of Western Samoa, must be settled. (iii.) Appointment of Public Trustee as Controller of New Zealand Clearing Office. —The Public Trustee has been appointed Controller of the New Zealand Clearing Office (clause 9, Treaty of Peace Order, 1920). (iv.) Channel of Communication with the German Clearing Office. —Tint New Zealand Clearing Office acts in conjunction with the Central Clearing Office at London, through which office are forwarded all communications to or from the German Clearing Office in regard to the settlement of debts, or in regard to the liquidation of German property in New Zealand, or relating to property in Germany belonging to Now Zealand nationals. The High Commissioner for New Zealand in London represents the New Zealand Clearing Office in connection with the collection and adjustment of claims by or against the London branches of New Zealand com panieap,nd firms. (v.) Classes of Pecuniary Obligations under Article z96. —The classes of pecuniary obligations to be settled through the Clearing Office are set out in Article 296, as follows : — (1.) Debts payable before the war and due by a national of one of the contracting Powers, residing within its territory, to a national of an opposing Power, residing within its territory : (2.) Debts which became payable during the war to nationals of one contracting Power, residing within its territory, and arose out of transactions or contracts with the nationals of an opposing Power, resident within its territory, of which the total or partial execution was suspended, on account of the declaration of war: (3.) Interest which has accrued due before and during the war to a national of one of the contracting Powers in respect of securities issued by an opposing Power, provided that the payment of interest on such securities to the nationals of that Power or to neutrals has not been suspended during the war : (4.) Capital sums which have become payable before and during the war to nationals of one of the contracting Powers in respect of securities issued by one of the opposing Powers, provided that the payment of such capital sums to nationals of that Power or to neutrals has not been suspended during the war. The territorial limitation imposed by paragraphs (1) and (2) supra restricts claims to those residing within the territories of the opposing Powers. " Residence" means something more than mere accident of locality, and denotes some degree of permanent habitation. The material date of residence of debtor and creditor is the day on which the Treaty of Peace was ratified — i.e., the 10th January, 1920 —and not the date when the debt became payable. Claims against residents in those parts of the former German Empire which were detached by the terms of the Treaty are not forwarded through the Clearing Office. (vi.) Definition of "Debt." —The word "debt" is nowhere defined in the Treaty, and is capable of a variety of constructions. In general it is used in a somewhat limited sense, though the dictionary definition is ' that for which payment is liable to be exacted," and it is therein stated to be synonymous with obligation and liability (Webster). The construction which the Central Clearing Office has decided to adopt is " any liability which is capable of assessment by a creditor under a contract or obligation subsisting on the 4th August, 1914, and which became payable on or before the 10th January, 1920." Debts which fell due subsequent to the 10th January, 1920, may be settled direct, (vii.) Definition of "National." —The Controllers of the Allied Clearing Offices have agreed to accept the following definition of the term " national " for the purpose of Article 296 of the Treaty : " Tho, expression ' national' for the purpose of Article 296 shall be deemed to include any company or corporation incorporated within the territories of either of the two countries in accordance with the law of the State, and in the case of a protectorate the natives thereof. A foreign branch of any such company or corporation shall be considered as of the same nationality and residence as that of the company or corporation itself, and any debts owing to German nationals by such branch shall not be treated as subject to the charge conferred by paragraph 4 of the annex to Section IV of the Treaty in favour of the country in which the branch is established. Where, however, under the laws of either country, a debt due from such branch is collected and retained by the liquidator of a German business wound up under war legislation, nothing contained in this agreement shall interfere with such collection or retention." (viii.) Debts due by Repatriated Prisoners of War. —Debts incurred by a prisoner of war or interned civilian prior to repatriation will require to be settled through the Clearing Office, provided the debtor returned to Germany or to New Zealand, as the case may be, prior to the 10th January, 1920, and on that date was residing in Germany or New Zealand. If the New Zealand claimant is unable to supply the address of the German debtor the German Clearing Office is requested, to endeavour to ascertain the whereabouts of the debtor. Claimants should supply all the available information in their possession to assist in the tracing of these men, as, unless it can be established that the debtor