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observed, and that all estate valuables and Common Fund mortgage securities are in order and are under proper protection, and that the accounting-work generally and the administration of estates is well up to date. ENEMY PROPERTY IN NEW ZEALAND AND CLEARING-OFFICE OPERATIONS IN REGARD TO ENEMY DEBTS. 163. When the Treaties of Peace were being framed it was realized that it was of vital importance to the nationals of the Allied and Associated Powers that provision be made for the settlement of their claims against ex-enemy nationals or Governments in regard to pre-war debts and to property lost through the war. Accordingly it was provided that— (a) Allied nationals were entitled to the immediate and complete restitution of their property and interests in ex-enemy territory. (b) The ex-enemy Governments were made responsible— (1) For the, restitution of all the property and interests belonging to Allied nationals and for the preservation of such property and interests until restitution ; (2) For payment of compensation to Allied nationals for damage or injury inflicted on their property and interests ; and (3) For payment in full, at the pre-war rate of exchange, of prewar debts recoverable through the Clearing Offices, and owing by ex-enemy nationals residing in ex-enemy territories to British nationals residing in British territory, if such ex-enemy nationals were solvent at the time of the outbreak of the war. (c) Each Allied Power was authorized to create a charge on the property and interests belonging to ex-enemy nationals within its territory to secure the sums claimed by its nationals in respect of —• (1) The property and interests of its nationals in ex-enemy territory ; (2) The debts owing to its nationals by ex-enemy nationals ; and (3) Damage or injury inflicted on the property and interests of its nationals. The treaties provided for the establishment of Clearing Offices to deal with these matters. 164. Enemy property in New Zealand was liquidated in terms of the War Regulations which were brought into force during the war, and the Treaty of Peace Order, 1920. The duties in regard to the liquidation of enemy property and the control of the New Zealand Clearing Office were entrusted to the Public Trustee. They comprise briefly— (a) The settlement, through the clearing procedure provided for by the Treaty of Versailles, of claims in regard to pre-war debts and to New-Zealand-owned property in Germany : (b) The control, liquidation, and disposal of the proceeds (by credit to the liquidation account of the ex-enemy countries concerned, or by release in appropriate cases) of property or businesses owned by alien enemies or in which there were alien enemy interests. Steady progress has been made during the year towards the completion of the various duties imposed on the Public Trustee. The only development worthy of note is the agreement recently negotiated regarding unliquidated property, which is referred to later. The work in connection with the claims lodged through the clearing procedure set up under the Treaty of Peace with Germany has been carried almost to completion. Of claims totalling over £317,000, there is only one, amounting to £137 os. 9d., now outstanding. This claim is contested, and has been referred by the claimant to the Anglo-German Mixed Arbitral Tribunal, the body set up under the Treaty to adjudicate upon disputed claims. The work in regard to the enemy property is not completed in all cases even when realization and credit to the liquidation account is effected. Claims for release on various grounds are lodged, and transactions apparently long concluded

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