8.--9.

ENEMY PROPERTY EMERGENCY REGULATIONS 1939. 13. The Public Trustee is the Custodian of Enemy Property under the Enemy Property Emergency Regulations 1939, and he may be appointed the controller of the business of any firm or company declared to be an enemy trader by the Minister of Industries and Commerce under the provisions of the Enemy Trading Emergency Regulations 1939. It has been necessary from time to time to amend the definition of an enemy country so that the regulations might be applied to all the countries at war with the British Empire, or in the occupation of the military forces of the enemy, or under the control or domination of Germany. The countries to which, the regulations have been applied include Germany, Italy, The Netherlands, Belgium, Norway, Denmark, Luxemburg, the whole of French territory in Europe and certain French African colonies, Albania, Rumania, and Bulgaria. Explanatory notes on enemy trading and enemy property were printed recently and' were distributed for the information of the general public. A considerable volume of imports came into New Zealand after the various countries had been declared enemy countries within the meaning of the regulations, and arrangements were made with the Customs Department that no goods should be released by that Department unless satisfactory evidence was produced that payment had already been made for the goods. If that could not be done, the importer was required to pay the Custodian of Enemy Property or to make satisfactory arrangements for payment. This work took up a considerable amount of time, but it is now practically completed. By instrument in writing executed by the Attorney-General, the Public Trustee may be appointed as the Custodian of the property of any prisoner of war, including those persons who have been interned. There is a number of these estates now under administration. There is also power under the regulations for the Custodian of Enemy Property to take over the management of the property in New Zealand of all enemy nationals residing in enemy countries. There are several estates under administration by trustees in New Zealand in which beneficiaries are residing in enemy countries, or in enemy-occupied countries, and such beneficiaries were receiving payments out of the estates before the regulations came into effect. There were also a few cases in which royalties were payable to enemy nationals. Moneys payable to such enemy nationals are now being paid to the Custodian. Except with the consent of the Attorney-General, no person may apply for probate of a will or for letters of administration of the estate of any person who at his death was an alien enemy. Many applications for the Attorney-General's consent have been received, and these have been carefully investigated before the Attorney-General's consent has been given. Several businesses have been declared to be enemy traders under the Enemy Trading Emergency Regulations 1939, and the Public Trustee has been appointed controller. A. considerable amount of work is entailed in handling these businesses. The amount of enemy property which has been collected by the Public Trustee is approximately £180,000. Moneys have been received at a steady rate. Enemy property and the income therefrom controlled by the Custodian are held by the Public Trustee in trust for all persons having any interest in such property and the_ money is invested in accordance with the directions of the Minister of Finance. Action is taken to invest these moneys from time to time in accordance with the directions of the Minister. INVESTMENTS FROM THE COMMON FUND. 14 Lending Operations.—Considerable difficulty has been experienced during the year in obtaining suitable mortgage investments. This may be attributed in part to war conditions and in part to the substantial increase throughout the Dominion of funds available for lending. It has also been found that many mortgagors, when seeking renewal of existing mortgages, have been in a position to make cash payments in reduction of their liability. During the year mortgages to the value of over £2,100,000 were renewed. 15. Collection of Interest.—ln general, mortgagors have met their obligations promptly, but it has been necessary to enter into pooling arrangements in respect of some rural securities. The amount of interest outstanding under Common Fund mortgages as at the 31st March, 1941, showed a considerable decrease on the amount owing at the end of the previous financial year.

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