I am in receipt of your memorandum dated 19 November 1921, in reference to my opinion dated 6 September 1921⁽¹⁾, relative to the date which should be taken for the valuation of expropriated properties in New Guinea.

In the opinion referred to I stated as follows:

As regards the date in respect of which the valuation is to be made, I am of opinion that, for the purposes of Article 297, the valuation should be made as at the date at which the property is liquidated, that is, the date of the expropriation.

This opinion was given on the assumption that liquidation would be carried out immediately after properties had been expropriated. It appears, however, that this has not been done, and a different position is thus created.

From the wording of paragraphs (b) and (c) of Article 297 and of paragraph 4 of the Annex to that Article, it appears to be clear that where properties are retained in pursuance of the rights conferred by Article 297, the amount to be credited to Germany, in respect of which the former owners are entitled to be compensated by Germany, is the 'net proceeds of their sale, liquidation or other dealing therewith'.

It follows that if any expropriated property in New Guinea has already been sold the valuation of that property for the purposes of Article 297 is the amount of the net proceeds of the sale.

As regards such expropriated properties as are still unsold the net proceeds referred to in paragraph 4 of the Annex to Article 297 cannot be ascertained until a sale has been effected or until a valuation for the purpose of paragraph 4 of the Annex to Article 297 has been made. The value of the property should be the value at the date the valuation is made.

The words 'other dealing therewith' in paragraph 4 of the Annex to Article 297 would include a valuation of any property which it was intended the Commonwealth should retain either indefinitely or for the purpose of a sale at a later convenient date.

In view of possible delay in effecting sale of expropriated properties, and in view of the fact that plantation property increases rapidly in value at a certain stage, it is suggested for consideration that a uniform system of valuation of the expropriated properties in New Guinea should be adopted and carried out at the earliest possible date.

[Vol. 18, p. 197]

(1)Opinion No.1126.