§ 104. Sir R. NEWMAN
asked the Secretary to the Board of Trade on what ground, under the Treaty, the German clearing house for enemy debts is disputing claims for British-owned money in the custody of German banks transferred during the War by those banks to the German custodian of enemy property; whether he is aware that the German authorities have, until recently, admitted similar claims under Article 296 of the Treaty; whether he will decline to permit the German authorities to delay any longer payment of claims or to recognise the validity of the German objections and the German plea that the claims are governed by Article 297 and not by Article 296; and whether he will refuse, on the ground that the objections and plea are frivolous, to allow further delay by acquiescing in the demand for a test case to be submitted to the Mixed Arbitral Tribunal for adjudication?
§ Sir W. MITCHELL-THOMSON
The British Clearing Office is advised that debts which have been collected by the British or German custodians under war emergency legislation have lost their character of debts and become proceeds of liquidation, and as such are claimable under Article 297 of the Treaty. This interpretation has not at present been accepted by the German Clearing Office, which, in order to protect itself, has declined to admit such claims either as debts or as proceeds of liquidation. The Controller of the British Clearing Office has been unable to effect a settlement of the matter with the German authorities, and proposes to bring a test case before the Mixed Arbitral Tribunal to obtain a decision upon the point at issue.