The Controller of the Clearing Office (Enemy Debts) has forwarded me the following memorandum for advice:

Prior to the outbreak of war various persons purchased in Australia from German steamship companies return passage tickets available for certain periods. On the outbreak of war these shipping companies were obliged to discontinue their services, and the holders of these passage tickets were unable to make use of them and had to pay considerably advanced fares for passages on other companies' steamers to reach their destination.

2. In these cases claims have been lodged through the Clearing Office against the German steamship companies for payment of the extra expenses incurred, but in every case the claim has been contested on the grounds that the company is only liable for payment of the difference between the amount paid and the price of the passage used, as it was owing to the war that they were unable to fulfil the contract.
3. In this connection it is pointed out that the British authorities have advised that in their opinion no claims can be preferred either under Article 296 or Article 297 by holders of return passage tickets in respect of extra expenses incurred owing to the non-fulfilment of the contract.
4. On the other hand it may be held that Germany having under Article 231
   accepted the responsibility for the war and its consequences should make compensation
   under Article 300 (d) of the Treaty.
5. The Secretary's advice on the points raised would be appreciated.

Claims arising out of the failure of German shipping companies to carry out contracts in respect of return passenger tickets are in the nature of damages for breach of contract. Those claims cannot, I think, be regarded as ascertained debts or amounts for the purposes of Articles 296 and 297.

These cases appear to be such as should be dealt with under Article 300 (c) and (d).

[Vol. 19, p. 84]