The Secretary to the Prime Minister's Department has forwarded me the following memorandum for advice:

With reference to your [memorandum] of 17 September⁽¹⁾, the purport of which was sent to the Secretary to the Treasury, with my [memorandum]of 19 September, I beg to inform you that a reply as follows has been received from the Secretary to the Treasury:

With reference to your letter of 19 September, and previous correspondence in connection with the repatriation of German nationals, I now have to inform you that the impression obtained in this Department was that the Germans were compulsorily deported, but, in conversation with the Accountant of this Department, Mr Lucas, the Chairman of the Expropriation Board stated that the Germans are voluntarily returning to Germany.

It is understood that when Germans possessed of property which has been expropriated leave the Territory, they are furnished with a certificate setting out particulars of the property expropriated, and the amount expended on behalf of the person for sustenance and passage money is endorsed on the certificate. This certificate will be presented by the owner to the German Government, which will pay him the value of the property less money expended on his behalf.

If the position is as stated, it is obvious that Germany should be credited in the reparation account only with the amount actually paid to the German subject, and it is suggested that the matter be again referred to the Solicitor-General for a further opinion on the legality of the action of the Expropriation Board in charging passage money and sustenance to the assets expropriated from the German subject. I shall be obliged if you will advise accordingly.

The Treaty specifies the purposes to which the net proceeds of expropriated property may be applied.

There is no authority for deducting from those proceeds the cost of repatriating German nationals. Neither does the Treaty contemplate the cost of repatriation being borne by the German nationals themselves.

In the absence of any such provision in the Treaty I am of opinion that the cost of repatriation cannot be charged against expropriation funds.

[Vol. 18, p. 124]

(1)Opinion No. 1130