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payment. If the amount paid is not accepted in full settlement the Public Trustee forwards a notification to the German Clearing Office setting out the position. 16. Disposal of Enemy Property in New Zealand. (i.) German Property. —Under Article 297 (b) of the Treaty of Versailles the New Zealand Government has the right to retain and liquidate all property, rights, and interests within New Zealand belonging at the date of the coming into force of the Treaty to German nationals, or companies controlled by them. The proceeds of property realized and retained under the above provision must be credited to the German Clearing Office under Article 297 of the Treaty. Under the Treaty this amount is charged with— (a.) The debts due by German nationals residing in Germany to British nationals residing in New Zealand : (b.) Compensation due to New-Zealanders in respect of damage or injury inflicted upon their property, rights, or interests, including any company or association in which they are interested, in German territory by the application of exceptional war measures or measures of transfer. Any credit balance in favour of Germany is to be credited to Germany through tho Reparation Commission, but this balance will be retained and applied in reduction of New Zealand's share of the reparation moneys. (ii!) Property belonging to other ex-enemy Nationals. —Similar provisions are contamed in the following Treaties of Peace : — (a.) Austria —Article 249 (6), Treaty of Saint Germain-en-Laye. (b.) Hungary—Article 232 (b), Treaty of Trianon, (c.) Bulgaria —Article 117 (o), Treaty of Neuilly-sur-Seine. (d.) Turkey—Article 289, Treaty of Sevres. The New Zealand Government has not yet decided whether this power of retention and liquidation will be exercised in the case of all ex-enemy property in New Zealand. (iii.) Meaning of Term " German National." —For the purpose of Article 297 the expression " German national " is regarded as including any person of German nationality, whether residing in Germany or in an Allied or neutral country. A similar meaning is attached to. the " nationals " of other countries with which the British Empire was at war. (iv.) Property belonging to British, Allied, or Neutral Subjects. —Owing to the wide definition of " alien enemy " contained in the War Regulations, property belonging to persons of British, Allied, or neutral nationality was collected by the Public Trustee as Custodian of Enemy Property. In all cases the onus of proof is thrown on the claimants in proving that they are not of enemy nationality. On receipt of satisfactory evidence of nationality and ownership the Public Trustee arranges to release such property. (v.) Release, of Property belonging to former Austrian Nationals who have acquired the Nationality of an Allied or Associated Power under the Provisions of the Treaty of Peace with Austria. —Persons claiming to have acquired the nationality of an Allied or Associated Power under the provisions of the Treaty of Peace with Austria are required to forward the following information and proofs : — (1.) The name of the claimant; tho full description of the property claimed ; by whom it is held, and for whose account if a third party is concerned : (2.) The following documents, with duly authenticated translations and notarial certificates :— (a.) A certificate of birth : (b.) A certificate of the municipality or community in which rights of citizenship are claimed, showing that such rights are held, and* how and when obtained, to which must be attached a certified extract or copy of the entries relating to the applicant in the local register of the place at which he claims rights of citizenship, with particulars of the dates of the entries : (c.) A certificate of nationality issued by the Government concerned, duly vised for use in this country, and endorsed with the statement by the Government concerned that the applicant has renounced any rights to opt for Austrian or other former enemy nationality, or alternatively has exercised his option to become a citizen of an Allied or Associated State, and has renounced any right to German, Austrian, or other former enemy nationality which he might have : (d.) la the case of a married woman or widow, the marriage-certificate and certificates of the husband's rights of citizenship and nationality, with extracts from register, are required, (vi.) Ex-alien Enemies in New Zealand. —The New Zealand Government has decided that this power of retention and liquidation will not be exercised in regard to the property, rights, or interests belonging to persons of ex-enemy nationality who have been permitted to remain in New Zealand. (vii.) Exemptions in Special Cases. —(at.) British-born wives or widows of German nationals : The British Government has decided to release the income accrued since the 10th January, 1920, for the payment to British-born wives or widows of German nationals if the person concerned resides within the United Kingdom and the circumstances justify it. In cases of property belonging to the wives or widows of German nationals residing within the British dominions held by the New Zealand Custodian of Enemy Property applications for a similar concession are considered by the Government, and the Custodian of Enemy Property acts in accordance with the directions received. (6.) German nationals whose income is less than £400 per annum : In accordance with an agreement between the British and German Governments dated the 31st December, 1920, the British Government will be prepared to consider applications for the release of household furniture and effects, personal belongings, family souvenirs, and implements of trade belonging to German nationals, with

3—H. 25.

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