Expro Plantations

Part of Compensation Payments in N. Guinea to Go to Custodian

Y'HE following is a condensation of

an official statement made in Canberra on May 21: Expropriated properties in New Guinea were acquired by the Com monwealth Government after the 1914-1918 war as part of the reparations provided under the Peace Treaties. They were subsequently sold by public tender during 1926-1928, the majority of pur chasers being returned soldiers. The terms of sale provided for the payment of the purchase price within a maximum period of 20 years from the date of sale.

As a result of the collapse of copra prices during the world-wide depression, which occurred shortly after the sale of the properties, purchasers experienced difficulty in meeting their commitments pnd the Custodian made, from time to lime, concessions to purchasers by way of:— (a) waivure of interest charges; (b) deferment of principal payments; (c) adjustment of terms to allow of re payments being assessed on a slid ing scale related to the market prices of produce; and (d) a considerable extension in the period for repayment of the pur chase price.

As a result of these concessions the payments received by the Commonwealth Government to date do not amount to more than about one-third of the pur chase price, although the original term allowed for repayment has almost ex pired.

Many of these expropriated properties suffered serious damage during the recent war, and the War Damage Commission is now engaged in assessing the compensa tion to which owners are entitled.

In order to assist planters in covering their properties under this scheme, the Custodian relinquished, for the purpose of these Regulations, his position as legal owner under the contract of sale, and accepted the standing of a mortgagee for the unpaid balance of purchase money owing under the contract. The Custodian, as mortgagee, is legally entitled to the compensation assessed in respect of the following classes of assets:— (1) Growing trees (including replace ments and additions since the date of sale). (2) Fixed property (including replace ments and additions since the date of sale).

The Custodian will not claim any in terest in amounts of compensation assessed under the following headings: (1) Private chattels; (2) Crops; (3) Plant; (4) Livestock; (5) Stocks.

Any special amounts of compensation assessed in respect of assets not included under the above general headings will be determined according to the facts and the circumstances.

Where the Custodian claims such share, and the owner resumes occupation of that priority, the Custodian’s share of the compensation will be assessed on the basis of the respective interest, having regard to the balance of purchase money and interest unpaid. Where the owner does not resume occupation, the distribu tion of the assessed compensation will be determined on the facts of each case.

Any amounts of compensation thus due to the Custodian would normally be ap plied in reduction of the balance of pur chase money still outstanding under the contract of sale.

However, the Custodian is fully cons

cious of the importance of re-establish ing purchasers on their properties as soon as possible and, where the applica tion of these moneys in reduction of principal would involve hardships in any individual case, he will give sympathetic consideration to any proposals made by a purchaser, having for their object the use of such funds in the rehabilitation of the property concerned. Any such ar rangement would, of course, need to be consistent with the duty which the Cus todian has of ensuring that the Com monwealth Government’s security under the contract of sale is not thereby im paired.