R.—25

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German Clearing Office of the admission of a debt it is paid by this Department, but, whilst continual pressure is exercised upon the German responsible authorities, both direct and through the representative of the Department in Berlin, to expedite the admission of claims, the Clearing Offices possess no compulsory powers. The remedy provided by the Treaty for delay in admission is for the creditor to bring the matter before the Mixed Arbitral Tribunal, and if he establishes his claim to its satisfaction he obtains an award and the amount is paid by this Department. All outstanding claims, other than those recently lodged, have been contested by the German Clearing Office upon grounds which have been notified to the individual creditors. If the grounds of contest arc disputed by a creditor and are persisted in by the debtor or by the German Clearing Office, it is for the creditor to appeal to the Mixed Arbitral Tribunal." Anglo-German Mixed Arbitral Tribunal. 46. The functions of tho Mixed Arbitral Tribunal established in accordance with the provisions of Article 204 of the Treaty of Versailles were briefly explained in my previous reports. 47. The status of the Mixed Arbitral Tribunal is explained in tho following quotation from the second annual report of the Controller of the Central Clearing Office, p. 8 : — I desire to remove an impression, which appears to be somewhat general, that the Mixed Arbitral Tribunal is part of the Clearing Office organization. This is, of course, an entire misapprehension. The Mixed Arbitral Tribunal is an independent international Court which is not subject to any outside control and is presided over by a neutral jurist. It frames its own rules and determines its own procedure, and gives its decisions in accordance with the view which it takes of the evidence adduced before it. Where the Clearing Office is a party to proceedings before the Tribunal it appears as an ordinary litigant, and, except by argument, can exercise no influence whatever over its decisions. 48. A short outline of the procedure adopted by the Central Clearing Office and British creditors in submitting claims against Germany to the Tribunal for decision has been prepared in the High Commissioner's Office, and is reprinted for general information : — Procedure in submitting Claims to the Anglo-Oerman Mixed Arbitral Tribunal. All procodure is govorned by Statutory Rules and Orders, 1920, No. 2062, Rules of Procedure of the AngloGerman Mixod Arbitral Tribunal, constituted under Article 304 of tho Treaty of Versailles, a copy of which was published in New Zealand Gazette No. 13, of 10th February, 1921. Claims under Article 297 (see para.' 33 of this report). —If the claim is not agreed to tho Treuhandor notifies the British Clearing Office of his intention to reject it, and the claimant is then advised by the Clearing Office that a preliminary objection has been lodged to this claim. The claim is then officially contested by the Trouhander on Form C.A. Upon receipt of this form the Clearing Office informs the claimant, by registered letter, of the decision arrived at, and advises him that if he wishes to proceed with his claim he should procure a copy of the rules and regulations referred to above. As outlined in theso rules and regulations, it is then necessary for tho claimant to prcparo a memorial, which should be forwarded to the Mixed Arbitral Tribunal direct by tho claimant within the required time. A copy of this momorial is then forwarded by tho Mixed Arbitral Tribunal to the Treuhander, who in due course prepares a defence, or, as it is officially termed, a " response " thereto. This " response " is communicated by the Mixod Arbitral Tribunal direct to tho claimant, who has the right of reply thereto. The prosecution of tho claim by means of correspondence shall proceed through the Mixed Arbitral Tribunal until such time as that body decides that " written proceedings shall close." The Mixed Arbitral Tribunal then decides on a date upon which tho claim shall be heard, and sends direct notification to the Treuhandor, the claimant, a,nd also to the Clearing Office concerned. The claimant must make his own arrangements to be represented at tho hearing. Tho British Cloaring Office does not represent individual claimants before the Mixed Arbitral Tribunal unless a case involving a " test " point is involved. After the hearing of the case by tho Mixed Arbitral Tribunal this body notifies all the parties concerned, in writing, as to the decision arrived at, and the decision is conveyed to the Clearing Office concernod by moans of a copy of tho formal judgment of the Tribunal itself. Tho British Clearing Offico effects settlement of tho claims upon recoipt of the Mixed Arbitral Tribunal judgment. In " agreed " claims, whore tho Treuhander offers compensation and tho claimant agrees to accept same, this decision is notified to tho Clearing Office concernod on form C.M.A.T. If " settlement out of Court " takes place after tho case has gone before the Tribunal, tho same procedure as that adopted for compensation applies. Claims under Article 296. —If claimant has not obtained a satisfactory result under this article he should then submit his claim to tho Mixod Arbitral Tribunal, but must give the opposing party notification through the Clearing Offices of a timo-limit within which claim must be settled or it will be referred to the Tribunal. If no satisfactory reply is received in the specified time he must then proceed to lodge a momorial with tho Mixed Arbitral Tribunal, as is done under Article 297, outlined above, the only difference being that the claim will be against a party or an individual and not against the Treuhander. In all other particulars the same procedure as in Article 297 shall apply, except that credits shall be dealt with as provided on the ordinary forms in use under Articlo 296. Decisions of Mixed Arbitral Tribunals. 19. The decisions of the various Mixed Arbitral Tribunals established between the Allied and Associated Powers and the former enemy Powers are published monthly by the Librairie do la Societe du Recueil Sirey of Paris. Unfortunately, this office has not yet been able to obtain a complete set ot these publications, but it is hoped to secure the missing numbers at an early date. The information contained therein indicates the developments of international law regarding the treatment of private property, and is also of great value in advising persons concerning what action they should take in prosecuting their claims or in contesting claims rendered against them. 50. Attached to the second report of the Controller of the Central Clearing Office is a report of his legal adviser, who has supplied therein summaries of the more important of the decisions pronounced by the Anglo-German Mixed Arbitral Tribunal on points of principle. Summaries of several of these decisions are given hereunder : — (1.) Dissolution of a Loan Contract under Article 299 (a). (a.) The case of Kitzinger v. Dann (Recueil, I, p. 847) raised the important point as to whether, in order to bring a debt within Article 296, the maturity of which would in the ordinary case under German law have depended upon at least three months' notice, such notice was essential, having regard to the dissolution of the contract of loan under Article 299 (a) of the Treaty. The Tribunal in that ease held that the contract of loan between the creditor and debtor must be treated as dissolved as from the outbreak of war, giving rise under the exception contained in Article 299 (a) to an immediate obligation to repay the sum lent thereunder, and that the debt therefore became repayable during the war, and was recoverable through the Clearing Office. (h.) The further case of Ounn v. Gunz (Recueil, 11, p. 202) came before the Tribunal, in which the British creditor Bought to recover under Article 296 and by virtue of Articlo 299 (a) payment of a loan of 12,000 marks which he had