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(2.) Every application for exemption should bo dealt with on its merits. There should be one advisory body only, and to it all such applications should be referred. It is most desirable that applications for exemption should all bo dealt with in accordance with the same principles. (3.) The amounts stated are in every case maxima; they are in any particular ease reducible to any extent. (4.) The further releases here detailed, which are not expressed in terms of our existing powers, may, except where otherwise stated, be recommended whether or not the circumstances of the applicant are necessitous. But it should be a bar to any recommendation that the applicant during the war has voluntarily participated in any act hostile to tho Allies. (5.) Recommendations for release can only extend to property rights and interests still unrealized, or, if realized, still unapplied, and not credited through. We are advised that it would be productive of great confusion if tins rule were not adopted. ((i.) Life intorests and reversionary interests should always be more readily released than any other form of property. The reason is that such property can rarely be reahzed on other than disadvantageous terms where the life is not available for medical examination. (21.) Taking now the cases referred to in the terms of reference, and confining ourselves in the first instance to German property rights and interests, we think that any advisory body entrusted with the duty should, in addition to our existing 'powers, be authorized to recommend releases in the cases and within the limits following : — I. (a.) In the case of applicants who arc of British birth or born abroad of a British father and are permanently resident in this country —unrestricted power of recommendation. {b.) In the case of British subjeots who have become, German nationals by marriage subsequent to Peace Day—l9th July, 1919 —unrestricted power of recommendation, (c.) In the case of other British subjects who have become German only by marriage but are not permanently resident in this country —unrestricted power of recommendation as to income : power of recommendation restricted to £5,000 as to capital. 11. In the case of applicants resident in Great Britain before the war and permitted at its close either to remain or return and whose permanent residence has since been there—unrestricted power of recommendation where the advisory body is satisfied that the case would be suitable for naturalization if the statutory period of disqualification had expired. 111. In tho case of an applicant who, although a German national in Germany, is in the United Kingdom a British subject,— {a.) Where resident in British territory—unrestricted power of recommendation. (6.) Where resident elsewhere and where British nationality is due to the fact that his or her father at birth was British—unrestricted power of recommendation. (c.) In any case where it is established to the satisfaction of the advisory body that his or her sympathies and interests have always been predominantly British —unrestricted power of recommendation. (d.) In any other case, power to make a recommendation as if he or she had been a German national resident here before the war—namely, if necessitous, capital up to £500, and income to a reasonable amount. IV. (a.) In the case of a person whose sole nationality is British and who has succeeded to charged property under the will of a German national made before the 10th January, 1920, or by reason of the intestacy of such a national —unrestricted power of recommendation. (b.) Where the property charged devolves under the will of a British testator or one resident in this country, or is comprised in a settlement made by a British settlor or by a settlor so resident —a power of recommendation as if the applicant had been resident here before the war. (c.) Where tho property charged represents earnings or savings from earnings made by the applicant in this country, then if the applicant satisfies the advisory body that he or she is in necessitous circumstances —power of recommendation restricted to £1,000. 28. Position in New Zealand. —The New Zealand Government has decided, as stated in previous reports, to follow the practice of the British authorities in regard to the release of property belonging to aliens in necessitous circumstances or who may be regarded as entitled to receive special consideration. The amounts which have been actually released from the provisions of tho War Regulations and the Treaty of Peace Order, 1920, and its amendments arc shown in tho table contained in para. 34, infra. It was never intended to retain and liquidate the property in New Zealand belonging to aliens who have been permitted to remain in this Dominion. Release of Property belonging to Turkish Subjects. 29. Under the Treaty of Sevres the Allied and Associated Powers reserved the right to retain and liquidate property in their territory belonging to Turkish subjects, but in the subsequent Treaty of Lausanne this provision was not included. Turkish subjects alone amongst our former enemies are entitled to the release of their property or the proceeds thereof which may have been controlled or held under emergency legislation during the war. As stated in previous reports, no Turkish property has been administered by this Office under the War Regulations. Aliens repatriated from New Zealand. 30. There has been practically no change during the year in the position regarding the proceeds of the realization of the property in New Zealand belonging to the aliens who were repatriated from New Zealand on the conclusion of hostilities. As stated in previous reports, these moneys have been remitted to the High Commissioner for New Zealand in London for disposal in accordance with the policy of the Imperial Government in connection with similar cases in the United Kingdom. 31. Repatriated Dalmatians. —Tho Dalmatians repatriated from New Zealand who have acquired the nationality of the Kingdom of tho Serbs, Croats, and Slovenes are entitled, on production of satisfactory evidence of nationality, to the release of any moneys held by the Dominion Custodian on their behalf. The Serb, Croat, and Slovene Legation at London has rendered valuable assistance in arranging payment of these amounts, very few of which now remain unpaid. Every effort has been and is being made to ensure that these moneys reach the persons entitled thereto at the earliest possible date. 32. In response to inquiries received from certain repatriated aliens this Office has been in communication since October, 1922, with the Australian Clearing Office authorities in regard to certain moneys belonging to aliens repatriated from. New Zealand who were landed in Australia to await the departure of a transport proceeding to southern Europe. These moneys were handed to the Commonwealth military authorities by the Officer Commanding the New Zealand transport. The Commonwealth Clearing Office authorities were requested to advise whether, in view of the fact that the