H—2s

9. The amount credited up to 31st March, 1926, to the German Liquidation Account in respect of German property rights and interests in the Dominion retained and liquidated in accordance with Article 297 of the Treaty of Versailles was £238,457 (Is. sd. Credits totalling £1,424 15s. have been withdrawn from the Liquidation Account. 10. Table I appearing in the appendix to this report gives particulars of the cash amounts held in respect of German property not yet credited to the Liquidation Account, and of the ex-enemy property which it has not yet been found possible to convert into cash. Amounts credited to the Austrian Liquidation Account. 11. The total amount credited up to 31st March, 1926, to the Austrian Liquidation Account in accordance with Article 249 of the Treaty of St. Germain-en-Lave was £1,284 19s. lid. One amount of £66 16s. 3d. has been withdrawn with the concurrence of the Austrian authorities, leaving a net amount credited to the Liquidation Account of £1,218 3s. Bd. 12. The position regarding the amounts which were collected by the High Commissioner from London offices of companies incorporated in the Dominion, to which I referred in my report for 1925, has not yet been finally settled. The High Commissioner is dealing with the matter, and he will in due course report the result of the action he has taken. 13. In paragraph 17 of my last report I referred to the possibility that it might be found desirable to make some provision for New Zealand creditors of Austrian concerns in respect of prewar debts which they were unable to collect from their debtors. The High Commissioner, who was approached in the first instance by the representatives of the creditors, has, however, now advised that all the creditors have succeeded in obtaining settlement of their claims direct. Amounts released from the Provisions of the War Regulations, Treaty of Peace Order, 1920, and the Treaty of Peace (Austria and Hungary) Order, 1924. 14. Table II in the Appendix hereto gives particulars of all amounts which have been released from the provisions of the various war and treaty legislation relating to ex-enemy property, whether on the grounds of non-ex-enemv nationality, for compassionate reasons, or otherwise. 15. The period within which applications for the compassionate release of ex-enemy property must have been lodged with this Office was fixed to expire on the 31st October last. As a result practically all applications for a release under this heading have now been disposed of, though some applications lodged prior to that date have not yet been finally considered. 16. The release of the amounts collected on behalf of repatriated Germans or Dalmatians has, with two exceptions, now been completed. Statement of Amounts held under the War Regulations, Treaty of Peace Order, 1920, and the Treaty of Peace (Austria and Hungary) Order, 1924. 17. A table (No. Ill) summarizing the balances held in pursuance of the above regulations and orders appears in the appendix to this report. PART 11. SETTLEMENT OF CLAIMS BY OR AGAINST BRITISH NATIONALS RESIDENT IN NEW ZEALAND. Total of Claims received for Settlement through the New Zealand Clearing Office. 18. The following table shows the total amount of the claims by or against Geiman nationals or the German Government received for settlement through the New Zealand Clearing Office to the 31st March, 1925, and 31st March, 1926, respectively. The total of the additional claims received since the last report is given in the third column : —

The progress regarding the disposal oi the Clearing Office claims is indicated in the tables printed in the appendix hereto. It will be seen that only a small percentage of the claims originally lodged for settlement remain outstanding. Time-limits prescribed foe notifying Claims under Article 297 of the Treaty of Versailles. 19. In continuation of paragraphs 36-42 of my previous report, I have to state that it has been found desirable, to assist in securing finality in regard to Article 297 claims, to prescribe an additional time-limit within which to notify certain claims falling within this article of the Treaty.

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31st March, i 31st March, T i 1925. 1926. Increase. I | I j Claims under Article 296 of the Treaty of Versailles : — £ £ £ (a.) By New Zealand nationals against German nationals .. 53,034 53,034 Nil (b.) By German nationals against New Zealand nationals .. 210,177 210,975 798 Claims under Article 297 of the Treaty of Versailles : — (c.) By New Zealand nationals .. .. .. .. 52,732 52,732 Nil Totals .. .. .. •• 315,943 316,741 798