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are often reopened. Various matters arise for consideration which often concern points of Government policy, and even at this date the work involved is at times considerable. Speaking of this, the Controller of the Central Clearing Office, London, in his report for the year 1929 said, —■ It would be rash to hazard an estimate of the time that may be occupied in completing the outstanding work. It is inevitable that in the closing stages of an administration of any magnitude there should be a residue of troublesome and difficult problems to be dealt with, and the closing stages of the present administration, which is the largest and most far-reaching administration that has ever been undertaken in this or in any other country, are hardly likely to be an exception. Realization and Disposal op Ex-enemy Property in New Zealand. 165. The proceeds of ex-enemy property retained and liquidated under the Treaties of Peace are credited to the liquidation account of the country of which the owner is a national. Under the Treaties of Peace, the ex-enemy Governments undertake to compensate their nationals in regard to property so retained and liquidated. For the year further credits totalling £219 6s. lid. have been passed to the German Liquidation Account under Article 297 of the Treaty in respect of the proceeds of the realization of property, rights, and interests in New Zealand belonging to German nationals, and a small item has been recredited. The total amount now credited to Germany is £266,731 18s. Bd. The great bulk of the German property in New Zealand which is subject to the charge imposed by the Treaty has now been realized, and the property now remaining which has been notified to the Custodian but not liquidated is valued at approximately £20,909. It is possible that as a result of an agreement recently negotiated between the New Zealand and the German Governments all property not yet liquid or liquidated or finally disposed of at the date of the agreement will be released to the German owners. Agreements similar to this have been entered into, it is understood, between the German Government and the other parts of the Empire and the Allied and Associated Powers. These agreements do not become operative until the final arrangements in regard to the Young Plan are concluded. In addition, cash amounting to £18,425 is held subject to the determination of contingencies. 166. An application has been received for the release of an amount of approximately £12,000 credited to the German Liquidation Account. The applicant avers that he is a non-enemy subject, and had acquired by purchase, prior to the outbreak of war, the property liquidated. The claim has not been admitted, but the applicant has instructed local counsel regarding the matter, and possibly litigation will result. During the year claims which were being pressed before the Anglo-German Mixed Arbitral Tribunal, and which involved, amongst other moneys, a very substantial sum, being the proceeds of the realization of the assets in New Zealand of a company the shareholders in which were German nationals, were withdrawn, bringing the case to a conclusion satisfactory to the New Zealand Clearing Office. 167. In regard to the retention and liquidation of German property the remarks of the Chancellor of the Exchequer in the House of Commons on the 21st November last are illustrative. He said:— I may explain that the German properties sequestrated during the war were transferred to the creditor Governments as at the date of the entry into force of the Treaty —namely, 10th January, 1920. The German Government at the same time retained the proceeds of liquidation of property of Allied nationals in Germany and undertook to compensate its own nationals in respect of their properties liquidated abroad. The Treaty provided that the proceeds of liquidation realized by the creditor Governments might be applied to meet private claims of their nationals on account of debts, property losses, and compensation awards due by Germany, and that, thereafter, any surplus might be retained by the creditor Governments on account of their reparation claims. After the German Schedule of Payments was fixed in 1921, the Reparation Commission decided, and duly informed the German Government, that any surplus proceeds so retained would be credited to Germany on account of the capital reparation debt, and not on account of the current annuities. The liquidation of these properties was taken into account by the Second Experts' Committee appointed in 1924, and the German annuities fixed both in the Dawes Plan and in the Young Plan were based on the capacity of Germany to pay, on the assumption that these properties were definitely lost to Germany. 168. The amount credited to the Austrian Liquidation Account in terms of Article 249 of the Treaty of St. Germaine-en-Laye is £1,728 15s. 3d. An amount of £66 16s. 3d. has been withdrawn with the concurrence of the Austrian authorities, leaving a net credit to the Liquidation Account of £1,661 19s.

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