H.—25

2

Paragraphs System of Accounting between Central Clearing Office and German Clearing Office : Monthly Accounts— Default by Germany .. .. .. .. .. .. .. . . .. 51-52 System of Accounting between Central Clearing Office and New Zealand Cloaring Office .. .. .. 53-54 Part 111, —Miscellaneous. „ , Paragraphs Council of Allied Controllers .. .. .". .. .. .. .. .. .. 55-56 German Church Property, Christchurch .. .. .. . . .. . . .. .. 57-58 German Property in Samoa .. .. .. .. . . .. .. . . .. 59 Restitution of Property in Germany belonging to British Nationals .. . . . . .. .. 60 Comparative Statistics of Allied Clearing Offices . . .. .. . . .. .. .. 61 Conclusion .. .. .. . . .. .. .. .. .. .. .. 62 Appendix I. —Principal Despatches received prom His Majesty's Secretary of State for the Colonies IN REGABD TO ENEMY PIUIPHRTY. Retention and Liquidation of Bearer Shares. Inquiry from Reparation Commission as to the Final Balance in favour of Germany arising under Articles 296 and 297 of the Treaty of Versailles. Appendix II. —Accounts. (1.) Claims in respect of "Enemy Debts," under Article 296 of the Treaty of Versailles, due to Allied Creditors by German Debtors as at 31st March, 1923. (2.) Claims in respect of " Enemy Dobts," under Article 296 of the 'Treaty of Versailles, owing to German Creditors by Allied Debtors as at 31st March, 1923. (3.) Claims by Allied Nationals, under Articlo 297 of tho Treaty of Versailles, for Compensation in respect of Damage or Injury inflicted upon their Property Rights and Interests in Gorman Territory by the Application of Exceptional War Measures or Measures of Transfer. (4.) British Empire Account with the German Clearing Office to 31st March, 1923.

BE PORT. To the Hon. the Attorney-General, Wellington. Sir, — I have the honour to submit a report on the work performed daring the year ended 31st March, 1923, in connection with the duties carried out by the Public Trustee in his capacity as Custodian of Enemy Property and as Controller of the New Zealand Clearing Office, together with a summary of the more important relative information received during the period under review. 2. Every effort has been made to ensure the early completion of this work, but it has been found desirable in a number of cases where property or the proceeds thereof are held in pursuance of the War Regulations to postpone taking final action in order to act in harmony with the practice of the Imperial Government in connection with similar cases in the United Kingdom. Furthermore, in regard to tho claims portion of this work it is evident from the experience of the last twelve months that considerable delays are bound to occur. In some cases a period of two years or more has elapsed in obtaining definite replies from the German Clearing Office regarding British claims or acknowledgments of letters from this Office contesting German claims against British nationals in New Zealand. Many of the matters which have not yet been disposed of, being under action either with the German Clearing Office or with this Office, are of great complexity, and the task of determining what is the present legal position is rendered more difficult by tho inability of the parties to supply satisfactory evidence in support of their claims. This state of affairs can only be expected after the lapse of years which has taken place since business relations were dislocated owing to the outbreak of the Great European War. A number of claims will probably need to be submitted to the AngloGerman Mixed Arbitral Tribunal for decision. While this Office is prepared to supply to claimants or to the alleged debtors any information which has been received concerning the legal points involved in these claims, the persons concerned are usually urged as a matter of policy to consult their own legal advisers be-fore informing this Office what steps they desire to be taken on their behalf. Many of the points raised are novel, and frequently an authoritative ruling can only be obtained by submitting the matter to the Mixed Arbitral Tribunal. Several letters have been received from New Zealand firms expressing appreciation of the help afforded by this Office in the prosecution of their claims, or in the preparation of contests to claims received from the German Clearing Office. From the foregoing remarks it will be realized how difficult it is to form a satisfactory idea when final settlement is likely to take place. 3. In accordance with the plan adopted in preparing previous reports, the subject-matter of this report has been arranged under three main headings, as under :— I. Realization and disposal of Enemy Property in New Zealand. 11. Settlement of Claims by or against British Nationals resident in New Zealand. 111. Miscellaneous. Part I contains a summary of the action taken in connection with the registration and realization of enemy property in New Zealand in pursuance of the various War Regulations, and the final disposal of the proceeds of such property in accordance with the terms of the various Treaties of Peace. Part II contains a brief statement of the additional information received since the date of the last report regarding the procedure adopted in connection with the settlement of debts and claims between British nationals resident in New Zealand and German nationals resident in Germany, together with a statement regarding the debts due by or to the nationals of the other ex-enemy Powers.