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Germany
undertakes that goods the produce or manufacture of any one of the
Allied or Associated States imported into Germany territory, from
whatsoever place arriving, shall not be subjected to other or higher
duties or charges (including internal charges) than those to which
the like goods the produce or manufacture of any other such State or
of any other foreign country are subject.
Germany
will not maintain or impose any prohibition or restriction on the
importation into German territory of any goods the produce or
manufacture of the territories of any one of the Allied or
Associated States, from whatsoever place arriving, which shall not
equally extend to the importation of the like goods the produce or
manufacture of any other such State or of any other foreign country.
Germany
further undertakes that, in the matter of the regime applicable on
importation, no discrimination against the commerce of any of the
Allied and Associated States as compared with any other of the said
States or any other foreign country shall be made, even by indirect
means, such as customs regulations or procedure, methods of
verification or analysis conditions of payment of duties, tariff
classification or interpretation, or the operation of monopolies.
In
all that concerns exportation Germany undertakes that goods, natural
products or manufactured articles, exported from German territory to
the territories of any one of the Allied or Associated States shall
not be subjected to other or higher duties or charges (including
internal charges) than those paid on the like goods exported to any
other such State or to any other foreign country.
Germany
will not maintain or impose any prohibition or restriction on the
exportation of any goods sent from her territory to any one of the
Allied or Associated States which shall not equally extend to the
exportation of the like goods, natural products or manufactured
articles, sent to any other such State or to any other foreign
country.
Every
favour, immunity or privilege in regard to the importation,
exportation or transit of goods granted by Germany to any Allied or
Associated State or to any other foreign country whatever shall
simultaneously and unconditionally, without request and without
compensation, be extended to all the Allied and Associated States.
The
provisions of Articles 264 to 267 inclusive of this Chapter and of
Article 323 of Part XII (Ports, Waterways and Railways) of the
present Treaty are subject to the following exceptions:
(a)
For a period of five years from the coming into force of the present
Treaty, natural or manufactured products which both originate in and
come from the territories of Alsace and Lorraine reunited to France
shall, on importation into German customs territory, be exempt from
all customs duty.
The
French Government shall fix each year, by decree communicated to the
German Government, the nature and amount of the products which shall
enjoy this exemption.
The
amount of each product which may be thus sent annually into Germany
shall not exceed the average of the amounts sent annually in the
years 1911-1913.
Further,
during the period above mentioned the German Government shall allow
the free export from Germany, and the free re-importation into
Germany, exempt from all customs duties and other charges (including
internal charges), of yarns, tissues, and other textile materials or
textile products of any kind and in any condition, sent from Germany
into the territories of Alsace or Lorraine, to be subjected there to
any finishing process, such as bleaching, dyeing, printing,
mercerisation, gassing, twisting or dressing.
(b)
During a period of three years from the coming into force of the
present Treaty natural or manufactured products which both originate
in and come from Polish territories which before the war were part
of Germany shall, on importation into German customs territory, be
exempt from all customs duty.
The
Polish Government shall fix each year, by decree communicated to the
German Government, the nature and amount of the products which shall
enjoy this exemption.
The
amount of each product which may be thus sent annually into Germany
shall not exceed the average of the amounts sent annually in the
years 1911-1913.
(c)
The Allied and Associated Powers reserve the right to require
Germany to accord freedom from customs duty, on importation into
German customs territory, to natural products and manufactured
articles which both originate in and come from the Grand Duchy of
Luxemburg, for a period of five years from the coming into force of
the present Treaty.
The
nature and amount of the products which shall enjoy the benefits of
this regime shall be communicated each year to the German
Government.
The
amount of each product which may be thus sent annually into Germany
shall not exceed the average of the amounts sent annually in the
years 1911-1913.
During
the first six months after the coming into force of the present
Treaty, the duties imposed by Germany on imports from Allied and
Associated States shall not be higher than the most favourable
duties which were applied to imports into Germany on July 31, 1914.
During
a further period of thirty months after the expiration of the first
six months, this provision shall continue to be applied exclusively
with regard to products which, being comprised in Section A of the
First Category of the German Customs Tariff of December 25, 1902,
enjoyed at the above-mentioned date (July 31, 1914) rates
conventionalised by treaties with the Allied and Associated Powers,
with the addition of all kinds of wine and vegetable oils, of
artificial silk and of washed or scoured wool whether or not they
were the subject of special conventions before July 31, 1914.
The
Allied and Associated Powers reserve the right to apply to German
territory occupied by their troops a special customs regime as
regards imports and exports, in the event of such a measure being
necessary in their opinion in order to safeguard the economic
interests of the population of these territories.
As
regards sea fishing, maritime coasting trade, and maritime towage,
vessels of the Allied and Associated Powers shall enjoy, in German
territorial waters, the treatment accorded to vessels of the most
favoured nation.
Germany
agrees that, notwithstanding any stipulation to the contrary
contained in the Conventions relating to the North Sea fisheries and
liquor traffic, all rights of inspection and police shall, in the
case of fishing-boats of the Allied Powers, be exercised solely by
ships belonging to those Powers.
In
the case of vessels of the Allied or Associated Powers, all classes
of certificates or documents relating to the vessel, which were
recognised as valid by Germany before the war, or which may
hereafter be recognised as valid by the principal maritime States,
shall be recognised by Germany as valid and as equivalent to the
corresponding certificates issued to German vessels.
A
similar recognition shall be accorded to the certificates and
documents issued to their vessels by the Governments of new States,
whether they have a sea-coast or not, provided that such
certificates and documents shall be issued m conformity with the
general practice observed in the principal maritime States.
The
High Contracting Parties agree to recognise the flag flown by the
vessels of an Allied or Associated Power having no seacoast which
are registered at some one specified place situated in its
territory; such place shall serve as the port of registry of such
vessels.
Germany
undertakes to adopt all the necessary legislative and administrative
measures to protect goods the produce or manufacture of any one of
the Allied and Associated Powers from all forms of unfair
competition in commercial transactions.
Germany
undertakes to prohibit and repress by seizure and by other
appropriate remedies the importation, exportation, manufacture,
distribution, sale or offering for sale in its territory of all
goods bearing upon themselves or their usual get-up or wrappings any
marks, names, devices, or description whatsoever which are
calculated to convey directly or indirectly a false indication of
the origin, type, nature, or special characteristics of such goods.
Germany
undertakes on condition that reciprocity is accorded in these
matters to respect any law, or any administrative or judicial
decision given in conformity with such law, in force in any Allied
or Associated State and duly communicated to her by the proper
authorities, defining or regulating the right to any regional
appellation in respect of wine or spirits produced in the State to
which the region belongs, or the conditions under which the use of
any such appellation may be permitted; and the importation,
exportation, manufacture, distribution, sale or offering for sale of
products or articles bearing regional appellations inconsistent with
such law or order shall be prohibited by the German Government and
repressed by the measures prescribed in the preceding Article.
Germany
undertakes:
(a)
Not to subject the nationals of the Allied and Associated Powers to
any prohibition in regard to the exercise of occupations,
professions, trade and industry, which shall not be equally
applicable to all aliens without exception;
(b)
Not to subject the nationals of the Allied and Associated Powers in
regard to the rights referred to in paragraph (a) to any regulation
or restriction which might contravene directly or indirectly the
stipulations of the said paragraph, or which shall be other or more
disadvantageous than those which are applicable to nationals of the
most favoured nation;
(c)
Not to subject the nationals of the Allied and Associated Powers,
their property, rights or interests, including companies and
associations In which they are interested, to any charge, tax or
impost, direct or indirect, other or higher than those which are or
may be imposed on her own nationals or their property, rights or
interests;
(d)
Not to subject the nationals of any one of the Allied and Associated
Powers to any restriction which was not applicable on July l, 1914,
to the nationals of such Powers unless such restriction is likewise
imposed on her own nationals.
The
nationals of the Allied and Associated Powers shall enjoy in German
territory a constant protection for their persons and for their
property, rights and interests, and shall have free access to the
courts of law.
Germany
undertakes to recognise any new nationality which has been or may be
acquired by her nationals under the laws of the Allied and
Associated Powers and in accordance with the decisions of the
competent authorities of these Powers pursuant to naturalisation
laws or under treaty stipulations, and to regard such persons as
having, in consequence of the acquisition of such new nationality,
in all respects severed their allegiance to their country of origin.
The
Allied and Associated Powers may appoint consuls-general, consuls,
vice-consuls, and consular agents in German towns and ports. Germany
undertakes to approve the designation of the consuls-general,
consuls, vice-consuls, and consular agents, whose names shall be
notified to her, and to admit them to the exercise of their
functions in conformity with the usual rules and customs.
The
obligations imposed on Germany by Chapter I and by Articles 27l and
272 of Chapter II above shall cease to have effect five years from
the date of the coming into force of the present Treaty, unless
otherwise provided in the text, or unless the Council of the League
of Nations shall, at least twelve months before the expiration of
that period, decide that these obligations shall be maintained for a
further period with or without amendment.
Article
276 of Chapter IV shall remain in operation, with or without
amendment, after the period of five years for such further period,
if any, not exceeding five years, as may be determined by a majority
of the Council of the League of Nations.
If
the German Government engages in international trade, it shall not
in respect thereof have or be deemed to have any rights, privileges
or immunities of sovereignty.
From
the coming into force of the present Treaty and subject to the
provisions thereof the multilateral treaties, conventions and
agreements of an economic or technical character enumerated below
and in the subsequent Articles shall alone be applied as between
Germany and those of the Allied and Associated Powers party thereto:
(l)
Conventions of March l4, 1884, December 1, 1886, and March 23, 1887,
and Final Protocol of July 7, 1887, regarding the protection of
submarine cables.
(2)
Convention of October 11, 1909, regarding the international
circulation of motor-cars.
(3)
Agreement of May 15, 1886, regarding the sealing of railway trucks
subject to customs inspection, and Protocol of May 18, 1907.
(4)
Agreement of May 15, 1886, regarding the technical standardisation
of railways.
(5)
Convention of July 5, 1890, regarding the publication of customs
tariffs and the organisation of an International Union for the
publication of customs tariffs.
(6)
Convention of December 31, 1913, regarding the unification of
commercial statistics.
(7)
Convention of April 25, 1907, regarding the raising of the Turkish
customs tariff.
(8)
Convention of March 14, 1857, for the redemption of toll dues on the
Sound and Belts.
(9)
Convention of June 22, 1861, for the redemption of the Stade Toll on
the Elbe.
(10)
Convention of July 16, 1863, for the redemption of the toll dues on
the Scheldt.
(11)
Convention of October 29, 1888, regarding the establishment of a
definite arrangement guaranteeing the free use of the Suez Canal.
(12)
Conventions of September 23, 1910, respecting the unification of
certain regulations regarding collisions and salvage at sea.
(13)
Convention of December 21, 1904, regarding the exemption of hospital
ships from dues and charges in ports
(14)
Convention of February 4, 1898, regarding the tonnage measurement of
vessels for inland navigation.
(15)
Convention of September 26, 1906, for the suppression of nightwork
for women.
(16)
Convention of September 26, 1906, for the suppression of the use of
white phosphorus in the manufacture of matches.
(17)
Conventions of May 18, 1904, and May 4, 1910, regarding the
suppression of the White Slave Traffic.
(18)
Convention of May 4, 1910, regarding the suppression of obscene
publications.
(19)
Sanitary Conventions of January 30, 1892, April l5, l893, April 3,
l894, March l9, 1897, and December 3, 1903.
(20)
Convention of May 20, 1875, regarding the unification and
improvement of the metric system.
(21)
Convention of November 29, 1906, regarding the unification of
pharmacopoeial formulae for potent drugs.
(22)
Convention of November 16 and 19, 1885, regarding the establishment
of a concert pitch.
(23)
Convention of June 7, 1905, regarding the creation of an
International Agricultural Institute at Rome.
(24)
Conventions of November 3, 188l, and April l5, l889, regarding
precautionary measures against phylloxera.
(25)
Convention of March 19, l902, regarding the protection of birds
useful to agriculture.
(26)
Convention of June l2, 1902, as to the protection of minors.
From
the coming into force of the present Treaty the High Contracting
Parties shall apply the conventions and agreements hereinafter
mentioned, in so far as concerns them, on condition that the special
stipulations contained in this Article are fulfilled by Germany.
Postal
Conventions:
Conventions
and agreements of the Universal Postal Union concluded at Vienna,
July 4, 1891.
Conventions
and agreements of the Postal Union signed at Washington, June 15,
1897.
Conventions
and agreements of the Postal Union signed at Rome, May 26, 1906.
Telegraphic
Conventions:
International
Telegraphic Conventions signed at St. Petersburg July 10, 22, 1875.
Regulations
and Tariffs drawn up by the International Telegraphic Conference,
Lisbon, June 11, 1908.
Germany
undertakes not to refuse her assent to the conclusion by the new
States of the special arrangements referred to in the conventions
and agreements relating to the Universal Postal Union and to the
International Telegraphic Union, to which the said new States have
adhered or may adhere.
From
the coming into force of the present Treaty the High Contracting
Parties shall apply, in so far as concerns them, the International
Radio-Telegraphic Convention of July S, 1912, on condition that
Germany fulfills the provisional regulations which will be indicated
to her by the Allied and Associated Powers.
If
within five years after the coming into force of the present Treaty
a new convention regulating international radio-telegraphic
communications should have been concluded to take the place of the
Convention of July 5, 1912, this new convention shall bind Germany,
even if Germany should refuse either to take part in drawing up the
convention, or to subscribe thereto.
This
new convention will likewise replace the provisional regulations in
force.
From
the coming into force of the present Treaty, the High Contracting
Parties shall apply in so far as concerns them and under the
conditions stipulated in Article 272, the conventions hereinafter
mentioned:
(1)
The Conventions of May 6, 1882, and February 1, 1889, regulating the
fisheries in the North Sea outside territorial waters.
(2)
The Conventions and Protocols of November 16, 1887, February 14,
1893, and April 11, 1894, regarding the North Sea liquor traffic.
The
International Convention of Paris of March 20, 1883, for the
protection of industrial property, revised at Washington on June 2,
1911; and the International Convention of Berne of September 9,
1886, for the protection of literary and artistic works, revised at
Berlin on November 13, 1908, and completed by the additional
Protocol signed at Berne on March 20, 1914, will again come into
effect as from the coming into force of the present Treaty, in so
far as they are not affected or modified by the exceptions and
restrictions resulting therefrom.
From
the coming into force of the present Treaty the High Contracting
Parties shall apply, in so far as concerns them, the Convention of
the Hague of July 17, 1905, relating to civil procedure. This
renewal, however, will not apply to France, Portugal and Roumania.
The
special rights and privileges granted to Germany by Article 3 of the
Convention of December 2, 1899, relating to Samoa shall be
considered to have terminated on August 4, 1914.
Each
of the Allied or Associated Powers, being guided by the general
principles or special provisions of the present Treaty, shall notify
to Germany the bilateral treaties or conventions which such Allied
or Associated Power wishes to revive with Germany.
The
notification referred to in the present Article shall be made either
directly or through the intermediary of another Power. Receipt
thereof shall be acknowledged in writing by Germany. The date of the
revival shall be that of the notification.
The
Allied and Associated Powers undertake among themselves not to
revive with Germany any conventions or treaties which are not in
accordance with the terms of the present Treaty.
The
notification shall mention any provisions of the said conventions
and treaties which, not being in accordance with the terms of the
present Treaty, shall not be considered as revived.
In
case of any difference of opinion, the League of Nations will be
called on to decide.
A
period of six months from the coming into force of the present
Treaty is allowed to the Allied and Associated Powers within which
to make the notification.
Only
those bilateral treaties and conventions which have been the subject
of such a notification shall be revived between the Allied and
Associated Powers and Germany; all the others are and shall remain
abrogated.
The
above regulations apply to all bilateral treaties or conventions
existing between all the Allied and Associated Powers signatories to
the present Treaty and Germany, even if the said Allied and
Associated Powers have not been in a state of war with Germany.
Germany
recognises that all the treaties, conventions or agreements which
she has concluded with Austria, Hungary, Bulgaria or Turkey since
August 1, 1914, until the coming into force of the present Treaty
are and remain abrogated by the present Treaty.
Germany
undertakes to secure to the Allied and Associated Powers, and to the
officials and nationals of the said Powers, the enjoyment of all the
rights and advantages of any kind which she may have granted to
Austria, Hungary, Bulgaria or Turkey, or to the officials and
nationals of these States by treaties, conventions or arrangements
concluded before August 1, 1914, so long as those treaties,
conventions or arrangements remain in force.
The
Allied and Associated Powers reserve the right to accept or not the
enjoyment of these rights and advantages.
Germany
recognises that all treaties, conventions or arrangements which she
concluded with Russia, or with any State or Government of which the
territory previously formed a part of Russia, or with Roumania,
before August 1, 1914, or after that date until coming into force of
the present Treaty, are and remain abrogated.
Should
an Allied or Associated Power, Russia, or a State or Government of
which the territory formerly constituted a part of Russia, have been
forced since August 1, 1914, by reason of military occupation or by
any other means or for any other cause, to grant or to allow to be
granted by the act of any public authority, concessions, privileges
and favours of any kind to Germany or to a German national, such
concessions, privileges and favours are ipso facto annulled by the
present Treaty.
No
claims or indemnities which may result from this annulment hall be
charged against the Allied or Associated Powers or the Powers,
States, Governments or public authorities which are released from
their engagements by the present Article.
From
the coming into force of the present Treaty Germany undertakes to
give the Allied and Associated Powers and their nationals the
benefit ipso facto of the rights and advantages of any kind which
she has granted by treaties, conventions, or arrangements to
nonbelligerent States or their nationals since August 1, 1914, until
the coming into force of the present Treaty, so long as those
treaties, conventions or arrangements remain in force.
Those
of the High Contracting Parties who have not yet signed, or who have
signed but not yet ratified, the Opium Convention signed at The
Hague on January 23, 1912, agree to bring the said Convention into
force, and for this purpose to enact the necessary legislation
without delay and in any case within a period of twelve months from
the coming into force of the present Treaty.
Furthermore,
they agree that ratification of the present Treaty should in the
case of Powers which have not yet ratified the Opium Convention be
deemed in all respects equivalent to the ratification of that
Convention and to the signature of the Special Protocol which was
opened at The Hague in accordance with the resolutions adopted by
the Third Opium Conference in 1914 for bringing the said Convention
into force.
For
this purpose the Government of the French Republic will communicate
to the Government of the Netherlands a certified copy of the
protocol of the deposit of ratifications of the present Treaty, and
will invite the Government of the Netherlands to accept and deposit
the said certified copy as if it were a deposit of ratifications of
the Opium Convention and a signature of the Additional Protocol of
1914.
There
shall be settled through the intervention of clearing offices to be
established by each of the High Contracting Parties within three
months of the notification referred to in paragraph (e) hereafter
the following classes of pecuniary obligations:
(1)
Debts payable before the war and due by a national of one of the
Contracting Powers, residing within its territory, to a national of
an Opposing Power, residing within its territory;
(2)
Debts which became payable during the war to nationals of one
Contracting Power residing within its territory and arose out of
transactions or contracts with the nationals of an Opposing Power,
resident within its territory, of which the total or partial
execution was suspended on account of the declaration of war;
(3)
Interest which has accrued due before and during the war to a
national of one of the Contracting Powers in respect of securities
issued by an Opposing Power, provided that the payment of interest
on such securities to the nationals of that Power or to neutrals has
not been suspended during the war;
(4)
Capital sums which have become payable before and during the war to
nationals of one of the Contracting Powers in respect of securities
issued by one of the Opposing Powers, provided that the payment of
such capital sums to nationals of that Power or to neutrals has not
been suspended during the war.
The
proceeds of liquidation of enemy property, rights and interests
mentioned in Section IV and in the Annex thereto will be accounted
for through the Clearing Offices, in the currency and at the rate of
exchange hereinafter provided in paragraph (d), and disposed of by
them under the conditions provided by the said Section and Annex.
The
settlements provided for in this Article shall be effected according
to the following principles and in accordance with the Annex to this
Section:
(a)
Each of the High Contracting Parties shall prohibit, as from the
coming into force of the present Treaty, both the payment and the
acceptance of payment of such debts, and also all communications
between the interested parties with regard to the settlement of the
said debts otherwise than through the Clearing Offices;
(b)
Each of the High Contracting Parties shall be respectively
responsible for the payment of such debts due by its nationals,
except in the cases where before the war the debtor was in a state
of bankruptcy or failure, or had given formal indication of
insolvency or where the debt was due by a company whose business has
been liquidated under emergency legislation during the war.
Nevertheless, debts due by the inhabitants of territory invaded or
occupied by the enemy before the Armistice will not be guaranteed by
the States of which those territories form part;
(c)
The sums due to the nationals of one of the High Contracting Parties
by the nationals of an Opposing State will be debited to the
Clearing Office of the country of the debtor, and paid to the
creditor by the Clearing Office of the country of the creditor;
(d)
Debts shall be paid or credited in the currency of such one of the
Allied and Associated Powers, their colonies or protectorates, or
the British Dominions or India, as may be concerned. If the debts
are payable in some other currency they shall be paid or credited in
the currency of the country concerned, whether an Allied or
Associated Power, Colony, Protectorate, British Dominion or India,
at the pre-war rate of exchange.
For
the purpose of this provision the pre-war rate of exchange shall be
defined as the average cable transfer rate prevailing in the Allied
or Associated country concerned during the month immediately
preceding the outbreak of war between the said country concerned and
Germany.
If
a contract provides for a fixed rate of exchange governing the
conversion of the currency in which the debt is stated into the
currency of the Allied or Associated country concerned, then the
above provisions concerning the rate of exchange shall not apply.
In
the case of new States the currency in which and the rate of
exchange at which debts shall be paid or credited shall be
determined by the Reparation Commission provided for in Part VIII
(Reparation);
(e)
The provisions of this Article and of the Annex hereto shall not
apply as between Germany on the one hand and any one of the Allied
and Associated Powers, their colonies or protectorates, or any one
of the British Dominions or India on the other hand, unless within a
period of one month from the deposit of the ratification of the
present Treaty by the Power in question, or of the ratification on
behalf of such Dominion or of India, notice to that effect is given
to Germany by the Government of such Allied or Associated Power or
of such Dominion or of India as the case may be;
(f)
The Allied and Associated Powers who have adopted this Article and
the Annex hereto may agree between themselves to apply them to their
respective nationals established in their territory so far as
regards matters between their nationals and German nationals. In
this case the payments made by application of this provision will be
subject to arrangements between the Allied and Associated Clearing
Offices concerned.
Annex.
1.
Each of the High
Contracting Parties will, within three months from the notification
provided for in Article 296, paragraph (e) establish a Clearing
Office for the collection and payment of enemy debts.
Local
Clearing Offices may be established for any particular portion of
the territories of the High Contracting Parties. Such local Clearing
Offices may perform all the functions of a central Clearing Office
in their respective districts, except that all transactions with the
Clearing Office in the Opposing State must be effected through the
central Clearing Office.
2.
In this Annex the pecuniary obligations referred to in the first
paragraph of Article 296 are described "as enemy debts",
the persons from whom the same are due as "enemy debtors",
the persons to whom they are due as "enemy creditors", the
Clearing Office in the country of the creditor is called the
"Creditor Clearing Office", and the Clearing Office in the
country of the debtor is called the "Debtor Clearing
Office."
3.
The High Contracting Parties will subject contraventions of
paragraph (a) of Article 296 to the same penalties as are at present
provided by their legislation for trading with the enemy. They will
similarly prohibit within their territory all legal process relating
to payment of enemy debts, except in accordance with the provisions
of this Annex.
4.
The Government guarantee specified in paragraph (b) of Article 296
shall take effect whenever, for any reason, a debt shall not be
recoverable, except in a case where at the date of the outbreak of
war the debt was barred by the laws of prescription in force in the
country of the debtor, or where the debtor was at that time in a
state of bankruptcy or failure or had given formal indication of
insolvency, or where the debt was due by a company whose business
has been liquidated under emergency legislation during the war. In
such case the procedure specified by this Annex shall apply to
payment of the dividends.
The
terms "bankruptcy" and "failure" refer to the
application of legislation providing for such juridical conditions.
The expression "formal indication of insolvency" bears the
same meaning as it has in English law.
5.
Creditors shall give notice to the Creditor Clearing Office within
six months of its establishment of debts due to them, and shall
furnish the Clearing Office with any documents and information
required of them.
The
High Contracting Parties will take all suitable measures to trace
and punish collusion between enemy creditors and debtors. The
Clearing Offices will communicate to one another any evidence and
information which might help the discovery and punishment of such
collusion.
The
High Contracting Parties will facilitate as much as possible postal
and telegraphic communication at the expense of the parties
concerned and through the intervention of the Clearing Offices
between debtors and creditors desirous of coming to an agreement as
to the amount of their debt.
The
Creditor Clearing Office will notify the Debtor Office of all debts
declared to it. The Debtor Clearing Office will, in due course,
inform the Creditor Clearing Office which debts are admitted and
which debts are contested. In the latter case, the Debtor Clearing
Office will give the grounds for the non-admission of debt.
6.
When a debt has been admitted, in whole or in part, the Debtor
Clearing Office will at once credit the Creditor Clearing Office
with the amount admitted, and at the same time notify it of such
credit.
7.
The debt shall be deemed to be admitted in full and shall be
credited forthwith to the Creditor Clearing Office unless within
three months from the receipt of the notification or such longer
time as may be agreed to by the Creditor Clearing Office notice has
been given by the Debtor Clearing Office that it is not admitted.
8.
When the whole or part of a debt is not admitted the two Clearing
Offices will examine into the matter jointly and will endeavour to
bring the parties to an agreement.
9.
The Creditor Clearing Office will pay to the individual creditor the
sums credited to it out of the funds placed at its disposal by the
Government of its country and in accordance with the conditions
fixed by the said Government, retaining any sums considered
necessary to cover risks, expenses or commissions.
10.
Any person having claimed
payment of an enemy debt which is not admitted in whole or in part
shall pay to the clearing office, by way of fine, interest at 5 per
cent. on the part not admitted. Any person having unduly refused to
admit the whole or part of a debt claimed from him shall pay, by way
of fine, interest at 5 per cent. on the amount with regard to which
his refusal shall be disallowed.
Such
interest shall run from the date of expiration of the period
provided for in paragraph 7 until the date on which the claim shall
have been disallowed or the debt paid.
Each
Clearing Office shall in so far as it is concerned take steps to
collect the fines above provided for, and will be responsible if
such fines cannot be collected.
The
fines will be credited to the other Clearing Office, which shall
retain them as a contribution towards the cost of carrying out the
present provisions.
11.
The balance between the Clearing Offices shall be struck monthly and
the credit balance paid in cash by the debtor State within a week.
Nevertheless,
any credit balances which may be due by one or more of the Allied
and Associated Powers shall be retained until complete payment shall
have been effected of the sums due to the Allied or Associated
Powers or their nationals on account of the war.
12.
To facilitate discussion between the Clearing Offices each of them
shall have a representative at the place where the other is
established.
13.
Except for special reasons all discussions in regard to claims will,
so far as possible, take place at the Debtor Clearing Office.
14.
In conformity with Article 296, paragraph (b), the High Contracting
Parties are responsible for the payment of the enemy debts owing by
their nationals.
The
Debtor Clearing Office will therefore credit the Creditor Clearing
Office with all debts admitted, even in case of inability to collect
them from the individual debtor. The Governments concerned will,
nevertheless, invest their respective Clearing Offices with all
necessary powers for the recovery of debts which have been admitted.
As
an exception, the admitted debts owing by persons having suffered
injury from acts of war shall only be credited to the Creditor
Clearing Office when the compensation due to the person concerned in
respect of such injury shall have been paid.
15.
Each Government will defray the expenses of the Clearing Office set
up in its territory, including the salaries of the staff.
16.
Where the two Clearing Offices are unable to agree whether a debt
claimed is due, or in case of a difference between an enemy debtor
and an enemy creditor or between the Clearing Offices, the dispute
shall either be referred to arbitration if the parties so agree
under conditions fixed by agreement between them, or referred to the
Mixed Arbitral Tribunal provided for in Section VI hereafter.
At
the request of the Creditor Clearing Office the dispute may,
however, be submitted to the jurisdiction of the Courts of the place
of domicile of the debtor.
17.
Recovery of sums found by the Mixed Arbitral Tribunal, the Court, or
the Arbitration Tribunal to be due shall be effected through the
Clearing Offices as if these sums were debts admitted by the Debtor
Clearing Office.
18.
Each of the Governments concerned shall appoint an agent who will be
responsible for the presentation to the Mixed Arbitral Tribunal of
the cases conducted on behalf of its Clearing Office. This agent
will exercise a general control over the representatives or counsel
employed by its nationals.
Decisions
will be arrived at on documentary evidence, but it will be open to
the Tribunal to hear the parties in person, or according to their
preference by their representatives approved by the two Governments,
or by the agent referred to above, who shall be competent to
intervene along with the party or to reopen and maintain a claim
abandoned by the same.
19.
The Clearing Offices concerned will lay before the Mixed Arbitral
Tribunal all the information and documents in their possession, so
as to enable the Tribunal to decide rapidly on the cases which are
brought before it.
20.
Where one of the parties concerned appeals against the joint
decision of the two Clearing Offices he shall make a deposit against
the costs, which deposit shall only be refunded when the first
judgment is modified in favour of the appellant and in proportion to
the success he may attain, his opponent in case of such a refund
being required to pay an equivalent proportion of the costs and
expenses. Security accepted by the Tribunal may be substituted for a
deposit.
A
fee of 5 per cent. of the amount in dispute shall be charged in
respect of all cases brought before the Tribunal. This fee shall,
unless the Tribunal directs otherwise, be borne by the unsuccessful
party. Such fee shall be added to the deposit referred to. It is
also independent of the security.
The
Tribunal may award to one of the parties a sum in respect of the
expenses of the proceedings.
Any
sum payable under this paragraph shall be credited to the Clearing
Office of the successful party as a separate item.
21.
With a view to the rapid settlement of claims, due regard shall be
paid in the appointment of all persons connected with the Clearing
Offices or with the Mixed Arbitral Tribunal to their knowledge of
the language of the other country concerned.
Each
of the Clearing Offices will be at liberty to correspond with the
other and to forward documents in its own language.
22.
Subject to any special agreement to the contrary between the
Governments concerned, debts shall carry interest in accordance with
the following provisions:
Interest
shall not be payable on sums of money due by way of dividend,
interest or other periodical payments which themselves represent
interest on capital.
The
rate of interest shall be 5 per cent. per annum except in cases
where, by contract, law or custom, the creditor is entitled to
payment of interest at a different rate. In such cases the rate to
which he is entitled shall prevail.
Interest
shall run from the date of commencement of hostilities (or, if the
sum of money to be recovered fell due during the war, from the date
at which it fell due) until the sum is credited to the Clearing
Office of the creditor.
Sums
due by way of interest shall be treated as debts admitted by the
Clearing Offices and shall be credited to the Creditor Clearing
Office in the same way as such debts.
23.
Where by decision of the Clearing Offices or the Mixed Arbitral
Tribunal a claim is held not to fall within Article 296, the
creditor shall be at liberty to prosecute the claim before the
Courts or to take such other proceedings as may be open to him.
The
presentation of a claim to the Clearing Office suspends the
operation of any period of prescription.
24. The High
Contracting Parties agree to regard the decisions of the Mixed
Arbitral Tribunal as final and conclusive, and to render them
binding upon their nationals.
25.
In any case where a Creditor Clearing Office declines to notify a
claim to the Debtor Clearing Office, or to take any step provided
for in this Annex, intended to make effective in whole or in part a
request of which it has received due notice, the enemy creditor
shall be entitled to receive from the Clearing Office a certificate
setting out the amount of the claim, and shall then be entitled to
prosecute the claim before the courts or to take such other
proceedings as may be open to him.
The
question of private property, rights and interests in an enemy
country shall be settled according to the principles laid down in
this Section and to the provisions of the Annex hereto.
(a)
The exceptional war measures and measures of transfer (defined in
paragraph 3 of the Annex hereto) taken by Germany with respect to
the property, rights and interests of nationals of Allied or
Associated Powers, including companies and associations in which
they are interested, when liquidation has not been completed, shall
be immediately discontinued or stayed and the property, rights and
interests concerned restored to their owners, who shall enjoy full
rights therein in accordance with the provisions of Article 298.
(b)
Subject to any contrary stipulations which may be provided for in
the present Treaty, the Allied and Associated Powers reserve the
right to retain and liquidate all property, rights and interests
belonging at the date of the coming into force of the present Treaty
to German nationals, or companies controlled by them, within their
territories, colonies, possessions and protectorates including
territories ceded to them by the present Treaty.
The
liquidation shall be carried out in accordance with the laws of the
Allied or Associated State concerned, and the German manowners shall
not be able to dispose of such property, rights or interests nor to
subject them to any charge without the consent of that State.
German
nationals who acquire ipso facto the nationality of an Allied or
Associated Power in accordance with the provisions of the present
Treaty will not be considered as German nationals within the meaning
of this paragraph.
(c)
The price or the amount of compensation in respect of the exercise
of the right referred to in the preceding paragraph (b) will be
fixed in accordance with the methods of sale or valuation adopted by
the laws of the country in which the property has been retained or
liquidated.
(d)
As between the Allied and Associated Powers or their nationals on
the one hand and Germany or her nationals on the other hand, all the
exceptional war measures, or measures of transfer, or acts done or
to be done in execution of such measures as defined in paragraphs 1
and 3 of the Annex hereto shall be considered as final and binding
upon all persons except as regards the reservations laid down in the
present Treaty.
(e)
The nationals of Allied and Associated Powers shall be entitled to
compensation in respect of damage or injury inflicted upon their
property, rights or interests, including any company or association
in which they are interested, in German territory as it existed on
August 1, 1914, by the application either of the exceptional war
measures or measures of transfer mentioned in paragraphs 1 and 3 of
the Annex hereto. The claims made in this respect by such nationals
shall be investigated, and the total of the compensation shall be
determined by the Mixed Arbitral Tribunal provided for in Section VI
or by an Arbitrator appointed by that Tribunal. This compensation
shall be borne by Germany, and may be charged upon the property of
German nationals within the territory or under the control of the
claimant's State. This property may be constituted as a pledge for
enemy liabilities under the conditions fixed by paragraph 4 of the
Annex hereto. The payment of this compensation may be made by the
Allied or Associated State, and the amount will be debited to
Germany.
(f)
Whenever a national of an Allied or Associated Power is entitled to
property which has been subjected to a measure of transfer in German
territory and expresses a desire for its restitution, his claim for
compensation in accordance with paragraph (6) shall be satisfied by
the restitution of the said property if it still exists in specie.
In
such case Germany shall take all necessary steps to restore the
evicted owner to the possession of his property, free from all
encumbrances or burdens with which it may have been charged after
the liquidation, and to indemnify all third parties injured by the
restitution.
If
the restitution provided for in this paragraph cannot be effected,
private agreements arranged by the intermediation of the Powers
concerned or the Clearing Offices provided for in the Annex to
Section III may be made, in order to secure that the national of the
Allied or Associated Power may secure compensation for the injury
referred to in paragraph (e) by the grant of advantages or
equivalents which he agrees to accept in place of the property,
rights or interests of which he was deprived.
Through
restitution in accordance with this Article, the price or the amount
of compensation fixed by the application of paragraph (e) will be
reduced by the actual value of the property restored, account being
taken of compensation in respect of loss of use or deterioration.
(g)
The rights conferred by paragraph (f) are reserved to owners who are
nationals of Allied or Associated Powers within whose territory
legislative measures prescribing the general liquidation of enemy
property, rights or interests were not applied before the signature
of the Armistice.
(h)
Except in cases where, by application of paragraph (f), restitutions
in specie have been made, the net proceeds of sales of enemy
property, rights or interests wherever situated carried out either
by virtue of war legislation, or by application of this Article, and
in general all cash assets of enemies, shall be dealt with as
follows:
(1)
As regards Powers adopting Section III and the Annex thereto, the
said proceeds and cash assets shall be credited to the Power of
which the owner is a national, through the Clearing Office
established thereunder; any credit balance in favour of Germany
resulting therefrom shall be dealt with as provided in Article 243.
(2)
As regards Powers not adopting Section III and the Annex thereto,
the proceeds of the property, rights and interests, and the cash
assets, of the nationals of Allied or Associated Powers held by
Germany shall be paid immediately to the person entitled thereto or
to his Government; the proceeds of the property, rights and
interests, and the cash assets, of German nationals received by an
Allied or Associated Power shall be subject to disposal by such
Power in accordance with its laws and regulations and may be applied
in payment of the claims and debts defined by this Article or
paragraph 4 of the Annex hereto. Any property, rights and interests
or proceeds thereof or cash assets not used as above provided may be
retained by the said Allied or Associated Power and if retained the
cash value thereof shall be dealt with as provided in Article 243.
In
the case of liquidations effected in new States, which are
signatories of the present Treaty as Allied and Associated Powers,
or in States which are not entitled to share in the reparation
payments to be made by Germany, the proceeds of liquidations
effected by such States shall, subject to the rights of the
Reparation Commission under the present Treaty, particularly under
Articles 235 and 260, be paid direct to the owner. If on the
application of that owner, the Mixed Arbitral Tribunal, provided for
by Section VI of this Part, or an arbitrator appointed by that
Tribunal is satisfied that the conditions of the sale or measures
taken by the Government of the State in question outside its general
legislation were unfairly prejudicial to the price obtained, they
shall have discretion to award to the owner equitable compensation
to be paid by that State.
(i)
Germany undertakes to compensate her nationals in respect of the
sale or retention of their property, rights or interests in Allied
or Associated States.
(j)
The amount of all taxes and imposts upon capital levied or to be
levied by Germany on the property, rights and interests of the
nationals of the Allied or Associated Powers from November 11, 1918,
until three months from the coming into force of the present Treaty,
or, in the case of property, rights or interests which have been
subjected to exceptional measures of war, until restitution in
accordance with the present Treaty, shall be restored to the owners.
Germany
undertakes, with regard to the property, rights and interests,
including companies and associations in which they were interested,
restored to nationals of Allied and Associated Powers in accordance
with the provisions of Article 297, paragraph (a) or (f):
(a)
to restore and maintain, except as expressly provided in the present
Treaty, the property, rights and interests of the nationals of
Allied or Associated Powers in the legal position obtaining in
respect of the property, rights and interests of German nationals
under the laws in force before the war;
(b)
not to subject the property, rights or interests of the nationals of
the Allied or Associated Powers to any measures in derogation of
property rights which are not applied equally to the property,
rights and interests of German nationals, and to pay adequate
compensation in the event of the application of these measures.
1.
In accordance with the provisions of Article 297 paragraph (d), the
validity of vesting orders and of orders for the winding up of
businesses or companies, and of any other orders, directions,
decisions or instructions of any court or any department of the
Government of any of the High Contracting Parties made or given, or
purporting to be made or given, in pursuance of war legislation with
regard to enemy property, rights and interests is confirmed. The
interests of all persons shall be regarded as having been
effectively dealt with by any order, direction, decision or
instruction dealing with property in which they may be interested,
whether or not such interests are specifically mentioned in the
order, direction, decision, or instruction. No question shall be
raised as to the regularity of a transfer of any property, rights or
interests dealt with in pursuance of any such order, direction,
decision or instruction. Every action taken with regard to any
property, business, or company, whether as regards its
investigation, sequestration, compulsory administration, use,
requisition, supervision, or winding up, the sale or management of
property, rights or interests, the collection or discharge of debts,
the payment of costs, charges or expenses, or any other matter
whatsoever, in pursuance of orders, directions, decisions, or
instructions of any court or of any department of the Government of
any of the High Contracting Parties, made or given, or purporting to
be made or given, in pursuance of war legislation with regard to
enemy property, rights or interests, is confirmed. Provided that the
provisions of this paragraph shall not be held to prejudice the
titles to property heretofore acquired in good faith and for value
and in accordance with the laws of the country in which the property
is situated by nationals of the Allied and Associated Powers.
The
provisions of this paragraph do not apply to such of the
above-mentioned measures as have been taken by the German
authorities in invaded or occupied territory, nor to such of the
above mentioned measures as have been taken by Germany or the German
authorities since November 11, 1918, all of which shall be void.
2.
No claim or action shall be made or brought against any Allied or
Associated Power or against any person acting on behalf of or under
the direction of any legal authority or Department of the Government
of such a Power by Germany or by any German national wherever
resident in respect of any act or omission with regard to his
property, rights or interests during the war or in preparation for
the war. Similarly no claim or action shall be made or brought
against any person in respect of any act or omission under or in
accordance with the exceptional war measures, laws or regulations of
any Allied or Associated Power.
3.
In Article 297 and this Annex the expression "exceptional war
measures" includes measures of all kinds, legislative
administrative, judicial or others, that have been taken or will be
taken hereafter with regard to enemy property, and which have had or
will have the effect of removing from the proprietors the power of
disposition over their property, though without affecting the
ownership, such as measures of supervision, of compulsory
administration, and of sequestration; or measures which have had or
will have as an object the seizure of, the use of, or the
interference with enemy assets, for whatsoever motive, under
whatsoever form or in whatsoever place. Acts in the-execution of
these measures include all detentions, instructions, orders or
decrees of Government departments or courts applying these measures
to enemy property, as well as acts performed by any person connected
with the administration or the supervision of enemy property, such
as the payment of debts, the collecting of credits, the payment of
any costs, charges or expenses, or the collecting of fees.
Measures
of transfer are those which have affected or will affect the
ownership of enemy property by transferring it in whole or in part
to a person other than the enemy owner, and without his consent,
such as measures directing the sale, liquidation, or devolution of
ownership in enemy property, or the cancelling of titles or
securities.
4.
All property, rights and interests of German nationals within the
territory of any Allied or Associated Power and the net proceeds of
their sale, liquidation or other dealing therewith may be charged by
that Allied or Associated Power in the first place with payment of
amounts due in |