H.—25

17

49. Owing to the sums due by Germany being unpaid since September, 1922, the monthly balances due by or to the New Zealand Clearing Office will not be settled until the payments are resumed by Germany. Interest is charged or credited on the balance outstanding between the Central Clearing Office and tho Now Zealand Clearing Office at the rate of 5 per cent, per annum. Any further moneys received by the Central Clearing Office from Germany will be applied pro rata between those parts of tho British Empire which have, adopted the provisions of Article 296 of the Treaty of Versailles in proportion to their balances for September, 1922, and then for the subsequent months until the whole of the balances have been extinguished. 50. A statement has been prepared and printed in the Appendix to this report showing the monthly balances in respect of claims admitted between the German Clearing Office and the New Zealand Clearing Office for the period October, 1920, to March, 1924. The following comments will enable these figures to bo more readily understood : — The totals of the German claims, together with Treaty interest thereon admitted each month by the New Zealand Clearing Office, are given in column (2) of this statement. The sum of £37,696 19s. credited to the German Clearing Office under this heading consists of German claims amounting t0£28,088 Bs. 3d. and Treaty interest thereon amounting to £9,608 10s. 9d. (see para. 40 (b), supra). From the figures included in column (3) it will be seen that a total of £24,879 2s. has been credited by the German Clearing Office in respect of claims lodged by New Zealand nationals. This sum represents claims totalling £19,362 18s. 7d. and Treaty interest thereon amounting to £5,516 3s. 5d... (see para. 40 (a), supra). Columns (4) and (5) show tho difference between the amounts admitted by the New Zealand Clearing Office and by the German Clearing Office for each month. In accordance with the provisions of the Treaty any indebtedness between the New Zealand Clearing Office and the German Clearing Office must be paid or received by Germany in New Zealand itself. The sum to be credited to Germany in the monthly statement in respect of New Zealand admissions is therefore the value of a cable draft for the amount payable in New Zealand on the day of settlement. The adjustment required by these provisions is contained in columns (6) and (7). On the 31st March, 1924, the net result has been a saving of £667 ss. 2d. in favour of the New Zealand Clearing Office. The Central Clearing Office charge against the. New Zealand Clearing Office for their services in connection with. New Zealand claims a commission of 1 per cent, on all amounts which are admitted by the German Clearing Office in favour of New Zealand claimants. In view of the amount of work involved and the valuable information and assistance which has been freely given by the Central Clearing Office the sums paid under this heading as per column (8) are very reasonable. Since March, 1923, this commission has not been included in the monthly statements supplied by the Central Clearing Office, but has been claimed separately, and paid monthly by the High Commissioner. The commission paid in respect of the admissions since March, 1923, has, therefore, not been included in the statement in the Appendix to this report. In columns (9) and (10) are sot forth the monthly balances between the New Zealand. Clearing Office and the Central Clearing Office after the necessary adjustments have been made in respect of commission and the exchange discounts and premiums. The interest at 5 per cent, payable to or by the New Zealand Clearing Office in respect of outstanding monthly balances is shown in columns (11) and (12). The cash payments either to or by the Central Clearing Office are given in columns (13) and (14), from which it will be observed that the New Zealand Clearing Office has paid to tho Central Clearing Office a total of £22,598 10s. Bd., while the Central Clearing Office has paid to the New Zealand Clearing Office the sum of £6,924 12s. lOd. The New Zealand Clearing Office has thus paid to the Central Clearing Office, irrespective of commission amounting to £195 2s. 10d., the sum of £15,478 15s. in excess of the amount received from that Office. The net balance outstanding between the New Zealand Clearing Office and the Central Clearing Office at the end of each month is set forth in columns (15) and (16). On the 13th March, 1922, the sum of £3,397 12s. sd. was owing to the New Zealand Clearing Office, but, as stated above, settlement thereof will not be made until Germany resumes payment of her obligations under the provisions of Article 296 of the Treaty of Versailles. Agreement with the German Clearing Office regarding Claims where Debtors cannot be Traced. 51. The Secretary of State for the Colonies has forwarded to New Zealand copies of an agreement made in January, 1924, between the, British and German Clearing Offices under which where the debtor Clearing Office certifies that in spite of all efforts it has failed to trace a debtor the creditor Clearing Office may inform the creditor of the position and, after withdrawing the claim at his request, issue a certificate under para. 25 of the Annex to Section 111 of Part X of the Treaty of Versailles enabling him to take such steps as may be open to him to recover direct the amount of the debt in the event of the debtor being subsequently found. In conformity with this arrangement the Custodian of Enemy Property for the United Kingdom has agreed that he will not claim debts amounting to less than £100 or mark debts up to any value where a certificate has been issued under this agreement. 52. In reply to a question asked in the covering despatch the Secretary of State for the Colonies has been informed that the New Zealand Government desire that this agreement should bo extended to the Dominion.

3—H. 25.