li.—'2s

German Property in Samoa. 63. As mentioned in my previous report, considerable difficulty is being experienced in fixing the basis of valuation in respect of German plantations in Samoa which have been retained by the New Zealand Government in exercise of the power contained in Articles 121 and 297 (6) of tho Treaty of Versailles. Under the provisions of the Treaty it is necessary for tho proceeds or the value of these properties which until recently have been worked as Crown estates to be credited to the German Liquidation Account in order that the German Government may compensate its nationals in respect of the liquidation and retention of their property as required by para, (i) of Article 297 of the Treaty. 64. In December last the New Zealand Government decided to lease these properties to private planters, instead of utilizing them for the purpose of State enterprise. Satisfactory arrangements have already been completed regarding the cacao-plantations, and it is expected that, in view of the applications received, no difficulty will be experienced in carrying out the decision of the Government in respect of the large copra-plantations. 65. It may be mentioned that the Government has generously directed that the net income derived from those estates should be made available for supplementing the revenue of the Samoan Administration. 66. Until the annual leasehold value of the bulk of these estates has been ascertained the question of determining the basis of valuation for the purpose of the credit to the German Liquidation Account is being held in abeyance. 67. It has now been definitely established that the provisions of Article 296 of the Treaty of Versailles do not apply to the former German colonies which have been mandated to an Allied or Associated Power. Several claims under Article 296 of the Treaty against British nationals resident in Western Samoa were received from the German Clearing Office and duly collected and credited to that Office. On receipt of advice that Article 296 did not apply to Western Samoa steps were taken to withdraw these credits from the German Clearing Office Account. On receipt of the recredit schedules the moneys paid to this Office in respect of these claims were refunded to the Samoan Administration for disposal in accordance with the provisions of the Ex-enemy Absentee Property (Samoa) Order, 1923. Comparative Statistics of the Allied Clearing Offices. 68. It is considered that tho comparative tables showing the oporations of the Belgian, French, Italian, Siamese, Greek, and British Clearing Offices as at the 31st March, 1923, which have been compiled by the Controller of the Central Clearing Office and published in his third report will be perused with great interest, and thoy have therefore been reprinted in the Appendix to this report. The Controller of the Central Clearing Office refers to these tables in the following terms : " I have again appended to my report comparative tables of the operations of the Belgian, French (Paris and. Strasbourg Offices), Italian, Siamese, and British Clearing Offices. For the information to enable me to compile these tables lam indebted to my Allied colleagues. They may be of interest as an indication of the progress made in clearing the indebtedness between the Allies and Germany. Theso tables cover the period to the 31st March, 1923." Conclusion. 69. The accounts published in the Appendix will, it is hoped, prove of general interest. The foregoing report, which deals with the more important problems arising in connection with the special work entrusted to the Public Trustee under the War Regulations and the Treaty of Peace Order, 1920, affords evidence of the difficulties which result from the novelty of tho duties to be performed and the complexity of many of the transactions which have to be investigated. I have, &c, J. W. Macdonald, Public Trustee, as Custodian of Enemy Property, and Controller of the Now Zealand Clearing Office. Wellington, 14th August, 1924.

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