GERMAN DUPLICITY

New Zealand Times, Volume XLIX, Issue 11307, 5 September 1922, Page 7

GERMAN DUPLICITY

ENEMY PROPERTY EVASIONS 1 HOW THE TREATY OF VERSAILLES WAS IGNORED. CLEARING HOUSE DIFFICULTIES. A story of the difficulties experienced 'in giving effect to clauses 296 and 297 of the Treaty of Versailles (relating to the property, rights and interests .of exenemy aliens) is told in an interim report of the committee appointed by the Board of Trade, England, to advise upon applications for the release of property of ex-enemy aliens in necessitous circumstances. A summary of the report has been furnished to the "Times” by the New Zealand Clearing Office (Public Trust Office). ~ , "It is clear (states the Teport) that the operation of these clauses of Iho treaties is causing an increasing pnblic 'uneasiness—and not without warrant. For while, it may be doubted whether both clauses have been found .in the re* suit to work according. to their true intent in the case of any of the nationals affected by them, it may bo assumed that in no quarter was it intended that a former enemy national with serious claims upon this country in respect of his property here, or one who for some other reason was specially deserving of consideration at our hand should, in the event, find himself In more imminent danger of a total loss, than another vho was possessed neither of such claims nor of such deserts, Yet this; it is feared, has been in not a few cases, the undesigned result. RESIDENCE OF ENEMY . . NATIONALS. As far as clause 296 (the, clearing office procedure with reference to debts) is concerned, all that in express terms is required to bring a delator or creditor national "within its scope is residence in former enemy territory. As far as clause 297 is concerned—the clause which places an embargo upon the property, rights and interests in Allied or associated States of a former enemy, national-all that has to be predicted in the particular case is that he" or she was such a national at the date when the peace- treaty with his or 'her Government became eflective. It matters not whether tho former enemy national - concerned has resided in this country all his conscious life, and is' still resident here; or whether he has never been out of 'his own coun-, try, and, is still resident there; or whether again -he, or his sons, or both hr; and hii sons have fought for us in the war, or whether they have fought against us. In. other words —and thin in the experience of the committee is the cause of the taost deep-seated misunderstanding—no circumstance in relation, to the' particular national which during the War would have ' secured exemption total; or partial from either Internment or repatriation is effective, now that peace has supervened, to secure for him the preservation of hfs< British property even if it was lawfully acquired' during the war itself, and* although not easily understood by those dircetly affected, and only imperfectly appreciated by some others who. perhaps should know hotter, the explanation of the _whole matter is simple enOt*h. The treaties have not iri these claiuses,' as seems to have been supposed, ignored the. hitherto well-estab-lished principle of international law that private property of an enemy subject on land is restored to him after peace. JUSTIFICATION OF RETENTION.. .“Clause 297 proceeds upon the basis- of that principle, and. gives .effect to .it by purporting to bind the' former* enemy Power concerned to make to each of its nationals whose property has ■ been retained by an Allied or Associated Power compensation for tho value of the property so retained. It Is truo that, the obligation is expressed in language less precise than was prudent, and this lack of precision' * has provided scope for evasion which is fortunate, but the intent of the -treaty is 'clear enough. . . . .The treaties have not in this respect functioned'according' to their terms: the German treaty has "so functioned only most, imperfectly : -the others not at all. ' ‘ ' - ‘ n "So far as clause 296 (the clearing of debts) is concerned, it seems that the German- Government pays to 'dts nationals something more than the treaty rate ’of exchange, but the amount paid is very much less than the rate «t - exchange actually existing at the present time. The committee only the other day was informed by a British-born son. permanently resident' here with his mother, that a sum of over iBBO,OOO credited .to his father in Germany,land 1 representing the ‘great hulk of the family- fortune, had produced for the father there hardly enough to enable him to eke out a bare subsistence in that country. I PAYMENT OF COMPENSATION. “Article 297—the embargo on property, rights, and interests—while effective to deprive the enemy nationals concerned of their .property, has not been effective to make forthcoming the compensation their ; Government has agreed to make them- * Many cases have -been reported to the committee of refusal by the German Government to recognise claims for compensation from German nationals resident out of Germany or not of German. birth, while the extent to which any claims brought to the notice of the committee have been recognised in Germany has been for a mere fraction of the total amount INJURY TO FINANCIAL REPUTATION.

“This state of things, although this country iein no way direotly responsible for it, ie highly injurious to its international financial reputation. The Nationals concerned are led in Germany to believe that their property here has in truth been confiscated, and the committee are forced to the conclusion that that belief is now general. The; committee ventures to express the'’ opinion that the matter is too. serious to be entirely disregarded, and they suggest that if in the f uture any alterations on the treaties are proposed’, it would be Well, should clause- 297 be in sHßatance retained at all, that the obligation on the part of their Government to make full compensation should be expressed in more definite terms. DEFAULT BY ENEMY POWERS. "The committee gather from the Clearing Office reports that there is serious ground to anticipate an ultimate default on the part of all the former enemy Governments concerned in making payments to the United Kingdom and their Clearing Office balances. The British Government' have not : involved; British creditors in the consequences of any such default. They have not passed tha risk on: they have assumed it,' I.t may welt be that the only, fund available for satisfaction of the deficiency so shouldered will be ‘the porperty, rights and inter, ests of enemy nationals in the- United Kingdom.' CLASSIFICATION: OF EX-ENEMY, . OWNERS. “The committee has classified: the former enemy nationals concerned in the following order of merit:—(l) Bri-tish-born ex-enemy nationals—such nationality having ’ been acquired only upon and by reason of marriage; (2) ex-enemy nationals resident here at the outbreak of war and permitted. at- its close either to remain in or return to' , tbis country; (3) ex-enemy nationals wherever now realdent whose property, rights; and interests here, to an extent not exceeding JB2OOO represent earnings o? savings from earnings made here; (4) other ex-enemy nationals in the following order: (1) Hun. garians, Austrians, Turks, Bulgarians; (2) Germans. - The committee suggests that the property, rights, end interests; of these classes retained under the treaties should be realised and applied id

the inverse order to. that given above. The first close comprises British-born married women whose property hero almost consists of'property settled upon their .marriage, and is usually held by British trustees for their benefit. Appeals from this daea have been specialty numerous, and many of them very painful. The second class comprises every degree of allied , sympathy and service on the part of those included in it. f UUie property represents property lawfully acquired by thoee people, while resident here. They will probably be the lest to be compensated by their own Government; and if their property here be taken they may become chargeable on the rates. The third! Class includes the repatriated governesses,, cooks, housekeepers, waiter*, and other humble folk, many of them of long residence here, of high character, and* now destitute in own"country. This suggestion ot the committee, if effect can be giyen to it, will reserve till the laet, for return to the owners, if such return be resolved . tupon, the property, rights, and interests of those who have deserved best of thia country, or whose* claims upon it are strongest. FURTHER RECOMMENDATIONS. "The committee ' also' suggeetot (1) That debts due by a German national to British nationals! should' be paid out of the proceeds of his property liquidated in the United Kingdom in- order that he will not be called upon to pay them again to his Government* (2} that if it is decided that life interests and reversionary interests of ex-enemy nationals must he sold, in no case should the, sale be made except to the owner himself or to someone on liis behalf; (3) that pre-war deposits in the Post Office Savings Bank should be treated as 'cash flfi-setr under Article 207, in order that the committee could recommend exemption in proper cases."-