ECONOMIC CLAUSES.
SECTION l.
COMMERCIAL RELATIONS.
CHAPTER I.
CUSTOMS REGULATIONS, DUTIES AND RESTRICTIONS.
ARTICLE 264.
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.
ARTICLE 265.
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.
ARTICLE 266.
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.
ARTICLE: 267.
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.
ARTICLE 268.
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.
ARTICLE 269.
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.
ARTICLE 270.
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.
CHAPTER II.
SHIPPING.
ARTICLE 271.
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.
ARTICLE 272.
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.
ARTICLE 273.
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.
CHAPTER III
UNFAIR COMPETITION.
ARTICLE 274.
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.
ARTICLE 275
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.
CHAPTER IV.
TREATMENT OF NATIONALS OF ALLIED AND ASSOCIATED POWERS.
ARTICLE 276.
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.
ARTICLE 277.
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.
ARTICLE 278.
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.
ARTICLE 279.
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.
CHAPTER V.
GENERAL ARTICLES
ARTICLE 280.
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.
ARTICLE 28l.
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.
SECTION II.
TREATIES.
ARTICLE 282.
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.
ARTICLE 283.
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.
ARTICLE 284.
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.
ARTICLE 285.
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.
ARTICLE 286.
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.
ARTICLE 287.
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.
ARTICLE 288.
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.
ARTICLE 289.
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.
ARTICLE 290.
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.
ARTICLE 291.
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.
ARTICLE 292.
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.
ARTICLE 293.
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.
ARTICLE 294.
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.
ARTICLE 295.
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.
SECTION III.
DEBTS.
ARTICLE 296.
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.
SECTION IV.
PROPERTY, RIGHTS AND INTERESTS.
ARTICLE 297.
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.
ARTICLE 298.
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.
ANNEX.
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 respect of claims by the nationals of
that Allied or Associated Power with regard to their property, rights and
interests, including companies and associations in which they are interested, in
German territory, or debts owing to them by German nationals, and with payment of
claims growing out of acts committed by the German Government or by any German
authorities since July 31, 1914, and before that Allied or Associated Power
entered into the war. The amount of such claims may be assessed by an arbitrator
appointed by Mr. Gustave Ador, if he is willing, or if no such appointment is
made by him, by an arbitrator appointed by the Mixed Arbitral Tribunal provided
for in Section VI. They may be charged in the second place with payment of the
amounts due in respect of claims by the nationals of such Allied or Associated
Power with regard to their property, rights and interests in the territory of
other enemy Powers, in so far as those claims are otherwise unsatisfied.
5.
Notwithstanding the provisions of Article 297, where immediately before the
outbreak of war a company incorporated in an Allied or Associated State had
rights in common with a company controlled by it and incorporated in Germany to
the use of trademarks in third countries, or enjoyed the use in common with such
company of unique means of reproduction of goods or articles for sale in third
countries, the former company shall alone have the right to use these trade-marks
in third countries to the exclusion of the German company, and these unique means
of reproduction shall be handed over to the former company, notwithstanding any
action taken under German war legislation with regard to the latter company or
its business, industrial property or shares. Nevertheless, the former company, if
requested, shall deliver the latter company derivative copies permitting the
continuation of reproduction of articles for use within German territory.
6.
Up to the time when restitution is carried out in accordance with Article 297,
Germany is responsible for the conservation of property, rights and interests of
the nationals of Allied or Associated Powers, including companies and
associations in which they are interested, that have been subjected by her to
exceptional war measures.
7
Within one year from the coming into force of the present Treaty the Allied or
Associated Powers will specify the property, rights and interests over which they
intend to exercise the right provided in Article 297, paragraph (f).
8.
The restitution provided in Article 297 will be carried out by order of the
German Government or of the authorities which have been substituted for it.
Detailed accounts of the action of administrators shall be furnished to the
interested persons by the German authorities upon request, which may be made at
any time after the coming into force of the present Treaty.
9.
Until completion of the liquidation provided for by Article 297, paragraph (b),
the property, rights and interests of German nationals will continue to be
subject to exceptional war measures that have been or will be taken with regard
to them.
10.
Germany will, within six months from the coming into force of the present Treaty,
deliver to each Allied or Associated Power all securities, certificates, deeds,
or other documents of title held by its nationals and relating to property,
rights or interests situated in the territory of that Allied or Associated Power,
including any shares, stock, debentures, debenture stock, or other obligations of
any company incorporated in accordance with the laws of that Power.
Germany will at any time on demand of any Allied or Associated Power furnish such
information as may be required with regard to the property, rights and interests
of German nationals within the territory of such Allied or Associated Power, or
with regard to any transactions concerning such property, rights or interests
effected since July 1, 1914.
11.
The expression "cash assets" includes all deposits or funds established before or
after the declaration of war, as well as all assets coming from deposits,
revenues, or profits collected by administrators, sequestrators, or others from
funds placed on deposit or otherwise, but does not include sums belonging to the
Allied or Associated Powers or to their component States, Provinces, or
Municipalities.
12.
All investments wheresoever effected with the cash assets of nationals of the
High Contracting Parties, including companies and associations in which such
nationals were interested, by persons responsible for the administration of enemy
properties or having control over such administration, or by order of such
persons or of any authority whatsoever shall be annulled. These cash assets shall
be accounted for irrespective of any such investment.
13.
Within one month from the coming into force of the present Treaty, or on demand
at any time, Germany will deliver to the Allied and Associated Powers all
accounts, vouchers, records, documents and information of any kind which may be
within German territory, and which concern the property, rights and interests of
the nationals of those Powers, including companies and associations in which they
are interested, that have been subjected to an exceptional war measure, or to a
measure of transfer either in German territory or in territory occupied by
Germany or her allies.
The controllers, supervisors, managers, administrators, sequestrators,
liquidators and receivers shall be personally responsible under guarantee of the
German Government for the immediate delivery in full of these accounts and
documents, and for their accuracy.
14.
The provisions of Article 297 and this Annex relating to property, rights and
interests in an enemy country, and the proceeds of the liquidation thereof, apply
to debts, credits and accounts, Section III regulating only the method of
payment.
In the settlement of matters provided for in Article 297 between Germany and the
Allied or Associated States, their colonies or protectorates, or any one of the
British Dominions or India, in respect of any of which a declaration shall not
have been made that they adopt Section III, and between their respective
nationals, the provisions of Section III respecting the currency in which payment
is to be made and the rate of exchange and of interest shall apply unless the
Government of the Allied or Associated Power concerned shall within six months of
the coming into force of the present Treaty notify Germany that the said
provisions are not to be applied.
15.
The provisions of Article 297 and this Annex apply to industrial, literary and
artistic property which has been or will be dealt with in the liquidation of
property, rights, interests, companies or businesses under war legislation by the
Allied or Associated Powers, or in accordance with the stipulations of Article
297, paragraph (b).
SECTION V.
CONTRACTS, PRESCRIPTIONS, JUDGMENTS.
ARTICLE 299.
(a) Any contract concluded between enemies shall be regarded as having been
dissolved as from the time when any two of the parties became enemies, except in
respect of any debt or other pecuniary obligation arising out of any act done or
money paid thereunder, and subject to the exceptions and special rules with
regard to particular contracts or classes of contracts contained herein or in the
Annex hereto.
(b) Any contract of which the execution shall be required in the general
interest, within six months from the date of the coming into force of the present
Treaty, by the Allied or Associated Governments of which one of the parties is a
national, shall be excepted from dissolution under this Article.
When the execution of the contract thus kept alive would owing to the alteration
of trade conditions, cause one of the parties substantial prejudice the Mixed
Arbitral Tribunal provided for by Section VI shall be empowered to grant to the
prejudiced party equitable compensation.
(c) Having regard to the provisions of the constitution and law of the United
States of America, of Brazil, and of Japan, neither the present Article, nor
Article 300, nor the Annex hereto shall apply to contracts made between nationals
of these States and German nationals; nor shall Article 305 apply to the United
States of America or its nationals.
(d) The present Article and the annex hereto shall not apply to contracts the
parties to which became enemies by reason of one of them being an inhabitant of
territory of which the sovereignty has been transferred, if such party shall
acquire under the present Treaty the nationality of an Allied or Associated
Power, nor shall they apply to contracts between nationals of the Allied and
Associated Powers between whom trading has been prohibited by reason of one of
the parties being in Allied or Associated territory in the occupation of the
enemy.
(e) Nothing in the present Article or the annex hereto shall be deemed to
invalidate a transaction lawfully carried out in accordance with a contract
between enemies if it has been carried out with the authority of one of the
belligerent Powers.
ARTICLE 300.
(a) All periods of prescription, or limitation of right of action, whether they
began to run before or after the outbreak of war, shall be treated in the
territory of the High Contracting Parties, so far as regards relations between
enemies, as having been suspended for the duration of the war. They shall begin
to run again at earliest three months after the coming into force of the present
Treaty. This provision shall apply to the period prescribed for the presentation
of interest or dividend coupons or for the presentation for repayment of
securities drawn for repayment or repayable on any other ground.
(b) Where, on account of failure to perform any act or comply with any formality
during the war, measures of execution have been taken in German territory to the
prejudice of a national of an Allied or Associated Power, the claim of such
national shall, if the matter does not fall within the competence of the Courts
of an Allied or Associated Power, be heard by the Mixed Arbitral Tribunal
provided for by Section VI.
(c) Upon the application of any interested person who is a national of an Allied
or Associated Power the Mixed Arbitral Tribunal shall order the restoration of
the rights which have been prejudiced by the measures of execution referred to in
paragraph (b), wherever, having regard to the particular circumstances of the
case, such restoration is equitable and possible.
If such restoration is inequitable or impossible the Mixed Arbitral Tribunal may
grant compensation to the prejudiced party to be paid by the German Government.
(d) Where a contract between enemies has been dissolved by reason either of
failure on the part of either party to carry out its provisions or of the
exercise of a right stipulated in the contract itself the party prejudiced may
apply to the Mixed Arbitral Tribunal for relief. The Tribunal will have the
powers provided for in paragraph (c.)
(e) The provisions of the preceding paragraphs of this Article shall apply to the
nationals of Allied and Associated Powers who have been prejudiced by reason of
measures referred to above taken by Germany in invaded or occupied territory, if
they have not been otherwise compensated.
(f) Germany shall compensate any third party who may be prejudiced by any
restitution or restoration ordered by the Mixed Arbitral Tribunal under the
provisions of the preceding paragraphs of this Article.
(g) As regards negotiable instruments, the period of three months provided under
paragraph (a) shall commence as from the date on which any exceptional
regulations applied in the territories of the interested Power with regard to
negotiable instruments shall have definitely ceased to have force.
ARTICLE 301.
As between enemies no negotiable instrument made before the war shall be deemed
to have become invalid by reason only of failure within the required time to
present the instrument for acceptance or payment or to give notice of
non-acceptance or nonpayment to drawers or indorsers or to protest the
instrument, nor by reason of failure to complete any formality during the war.
Where the period within which a negotiable instrument should have been presented
for acceptance or for payment, or within which notice of non-acceptance or
non-payment should have been given to the drawer or indorser, or within which the
instrument should have been protested, has elapsed during the war, and the party
who should have presented or protested the instrument or have given notice of
non-acceptance or non-payment has failed to do so during the war, a period of not
less than three months from the coming into force of the present Treaty shall be
allowed within which presentation, notice of non-acceptance or nonpayment or
protest may be made.
ARTICLE 302.
Judgments given by the Courts of an Allied or Associated Power in all cases
which, under the present Treaty, they are competent to decide, shall be
recognised in Germany as final, and shall be enforced without it being necessary
to have them declared executory.
If a judgment in respect to any dispute which may have arisen has been given
during the war by a German Court against a national of an Allied or Associated
State in a case in which he was not able to make his defence, the Allied and
Associated national who has suffered prejudice thereby shall be entitled to
recover compensation, to be fixed by the Mixed Arbitral Tribunal provided for in
Section VI.
At the instance of the national of the Allied or Associated Power the
compensation above-mentioned may, upon order to that effect of the Mixed Arbitral
Tribunal, be effected where it is possible by replacing the parties in the
situation which they occupied before the judgment was given by the German Court.
The above compensation may likewise be obtained before the Mixed Arbitral
Tribunal by the nationals of Allied or Associated Powers who have suffered
prejudice by judicial measures taken in invaded or occupied territories, if they
have not been otherwise compensated.
ARTICLE 303.
For the purpose of Sections III, IV, V and VII, the expression "during the war"
means for each Allied or Associated Power the period between the commencement of
the state of war between that Power and Germany and the coming into force of the
present Treaty.
ANNEX.
I. General Provisions.
1.
Within the meaning of Articles 299, 300 and 301, the parties to a contract shall
be regarded as enemies when trading between them shall have been prohibited by or
otherwise became unlawful under laws, orders or regulations to which one of those
parties was subject. They shall be deemed to have become enemies from the date
when such trading was prohibited or otherwise became unlawful.
2.
The following classes of contracts are excepted from dissolution by Article 299
and, without prejudice to the rights contained in Article 297 (b) of Section IV,
remain in force subject to the application of domestic laws, orders or
regulations made during the war by the Allied and Associated Powers and subject
to the terms of the contracts:
(a) Contracts having for their object the transfer of estates or of real or
personal property where the property therein had passed or the object had been
delivered before the parties became enemies;
(b) Leases and agreements for leases of land and houses
(c) Contracts of mortgage, pledge or lien;
(d) Concessions concerning mines, quarries or deposits;
(e) Contracts between individuals or companies and States provinces,
municipalities, or other similar juridical persons charged with administrative
functions, and concessions granted by States, provinces, municipalities, or other
similar juridical persons charged with administrative functions.
3.
If the provisions of a contract are in part dissolved under Article 299, the
remaining provisions of that contract shall, subject to the same application of
domestic laws as is provided for in paragraph 2, continue in force if they are
severable, but where they are not severable the contract shall be deemed to have
been dissolved in its entirety.
II. Provisions relating to certain classes of Contracts.
Stock Exchange and Commercial Exchange Contracts.
4.
(a) Rules made during the war by any recognised Exchange or Commercial
Association providing for the closure of contracts entered into before the war by
an enemy are confirmed by the High Contracting Parties, as also any action taken
thereunder, provided:
(1) That the contract was expressed to be made subject to the rules of the
Exchange or Association in question;
(2) That the rules applied to all persons concerned;
(3) That the conditions attaching to the closure were fair and reasonable.
(b) The preceding paragraph shall not apply to rules made during the occupation
by Exchanges or Commercial Associations in the districts occupied by the enemy.
(c) The closure of contracts relating to cotton "futures", which were closed as
on July 31, 1914, under the decision of the Liverpool Cotton Association, is also
confirmed.
Security.
5.
The sale of a security held for an unpaid debt owing by an enemy shall be deemed
to have been valid irrespective of notice to the owner if the creditor acted in
good faith and with reasonable care and prudence, and no claim by the debtor on
the ground of such sale shall be admitted.
This stipulation shall not apply to any sale of securities effected by an enemy
during the occupation in regions invaded or occupied by the enemy.
Negotiable Instruments.
6.
As regards Powers which adopt Section III and the Annex thereto the pecuniary
obligations existing between enemies and resulting from the issue of negotiable
instruments shall be adjusted in conformity with the said Annex by the
instrumentality of the Clearing Offices, which shall assume the rights of the
holder as regards the various remedies open to him.
7.
If a person has either before or during the war become liable upon a negotiable
instrument in accordance with an undertaking given to him by a person who has
subsequently become an enemy, the latter shall remain liable to indemnify the
former in respect of his liability notwithstanding the outbreak of war.
III. Contracts of Insurance.
8.
Contracts of insurance entered into by any person with another person who
subsequently became an enemy will be dealt with in accordance with the following
paragraphs.
Fire Insurance.
9.
Contracts for the insurance of property against fire entered into by a person
interested in such property with another person who subsequently became an enemy
shall not be deemed to have been dissolved by the outbreak of war, or by the fact
of the person becoming an enemy, or on account of the failure during the war and
for a period of three months thereafter to perform his obligations under the
contract, but they shall be dissolved at the date when the annual premium becomes
payable for the first time after the expiration of a period of three months after
the coming into force of the present Treaty.
A settlement shall be effected of unpaid premiums which became due during the
war, or of claims for losses which occurred during the war.
10.
Where by administrative or legislative action an insurance against fire effected
before the war has been transferred during the war from the original to another
insurer, the transfer will be recognised and the liability of the original
insurer will be deemed to have ceased as from the date of the transfer. The
original insurer will, however, be entitled to receive on demand full information
as to the terms of the transfer, and if it should appear that these terms were
not equitable they shall be amended so far as may be necessary to render them
equitable.
Furthermore, the insured shall, subject to the concurrence of the original
insurer, be entitled to retransfer the contract to the original insurer as from
the date of the demand.
Life Insurance.
11.
Contracts of life insurance entered into between an insurer and a person who
subsequently became an enemy shall not be deemed to have been dissolved by the
outbreak of war, or by the fact of the person becoming an enemy.
Any sum which during the war became due upon a contract deemed not to have been
dissolved under the preceding provision shall be recoverable after the war with
the addition of interest at five per cent. per annum from the date of its
becoming due up to the day of payment.
Where the contract has lapsed during the war owing to nonpayment of premiums, or
has become void from breach of the conditions of the contract, the assured or his
representatives or the person entitled shall have the right at any time within
twelve months of the coming into force of the present Treaty to claim from the
insurer the surrender value of the policy at the date of its lapse or avoidance.
Where the contract has lapsed during the war owing to nonpayment of premiums the
payment of which has been prevented by the enforcement of measures of war, the
assured or his representative or the persons entitled shall have the right to
restore the contract on payment of the premiums with interest at five per cent.
per annum within three months from the coming into force of the present Treaty.
12.
Any Allied or Associated Power may within three months of the coming into force
of the present Treaty cancel all the contracts of insurance running between a
German insurance company and its nationals under conditions which shall protect
its nationals from any prejudice.
To this end the German insurance company will hand over to the Allied or
Associated Government concerned the proportion of its assets attributable to the
policies so cancelled and will be relieved from all liability in respect of such
policies. The assets to be handed over shall be determined by an actuary
appointed by the Mixed Arbitral Tribunal.
13.
Where contracts of life insurance have been entered into by a local branch of an
insurance company established in a country which subsequently became an enemy
country, the contract shall, in the absence of any stipulation to the contrary in
the contract itself, be governed by the local law, but the insurer shall be
entitled to demand from the insured or his representatives the refund of sums
paid on claims made or enforced under measures taken during the war, if the
making or enforcement of such claims was not in accordance with the terms of the
contract itself or was not consistent with the laws or treaties existing at the
time when it was entered into.
14.
In any case where by the law applicable to the contract the insurer remains bound
by the contract notwithstanding the nonpayment of premiums until notice is given
to the insured of the termination of the contract, he shall be entitled where the
giving of such notice was prevented by the war to recover the unpaid premiums
with interest at five per cent. per annum from the insured.
15.
Insurance contracts shall be considered as contracts of life assurance for the
purpose of paragraphs 11 to 14 when they depend on the probabilities of human
life combined with the rate of interest for the calculation of the reciprocal
engagements between the two parties.
Marine Insurance.
16.
Contracts of marine insurance including time policies and voyage policies entered
into between an insurer and a person who subsequently became an enemy, shall be
deemed to have been dissolved on his becoming an enemy, except in cases where the
risk undertaken in the contract had attached before he became an enemy.
Where the risk had not attached, money paid by way of premium or otherwise shall
be recoverable from the insurer.
Where the risk had attached effect shall be given to the contract notwithstanding
the party becoming an enemy, and sums due under the contract either by way of
premiums or in respect of losses shall be recoverable after the coming into force
of the present Treaty.
In the event of any agreement being come to for the payment of interest on sums
due before the war to or by the nationals of States which have been at war and
recovered after the war, such interest shall in the case of losses recoverable
under contracts of marine insurance run from the expiration of a period of one
year from the date of the loss.
17.
No contract of marine insurance with an insured person who subsequently became an
enemy shall be deemed to cover losses due to belligerent action by the Power of
which the insurer was a national or by the allies or associates of such Power.
18.
Where it is shown that a person who had before the war entered into a contract of
marine insurance with an insurer who subsequently became an enemy entered after
the outbreak of war into a new contract covering the same risk with an insurer
who was not an enemy, the new contract shall be deemed to be substituted for the
original contract as from the date when it was entered into, and the premiums
payable shall be adjusted on the basis of the original insurer having remained
liable on the contract only up till the time when the new contract was entered
into.
Other Insurances.
19.
Contracts of insurance entered into before the war between an insurer and a
person who subsequently became an enemy, other than contracts dealt with in
paragraphs g to 18, shall be treated in all respects on the same footing as
contracts of fire insurance between the same persons would be dealt with under
the said paragraphs.
Re-insurance.
20.
All treaties of re-insurance with a person who became an enemy shall be regarded
as having been abrogated by the person becoming an enemy, but without prejudice
in the case of life or marine risks which had attached before the war to the
right to recover payment after the war for sums due in respect of such risks.
Nevertheless if, owing to invasion, it has been impossible for the re-insured to
find another re-insurer, the treaty shall remain in force until three months
after the coming into force of the present Treaty.
Where a re-insurance treaty becomes void under this paragraph, there shall be an
adjustment of accounts between the parties in respect both of premiums paid and
payable and of liabilities for losses in respect of life or marine risks which
had attached before the war. In the case of risks other than those mentioned in
paragraphs 11 to 18 the adjustment of accounts shall be made as at the date of
the parties becoming enemies without regard to claims for losses which may have
occurred since that date.
21.
The provisions of the preceding paragraph will extend equally to re-insurances
existing at the date of the parties becoming enemies of particular risks
undertaken by the insurer in a contract of insurance against any risks other than
life or marine risks.
22.
Re-insurance of life risks effected by particular contracts and not under any
general treaty remain in force.
The provisions of paragraph 12 apply to treaties of re-insurance of life
insurance contracts in which enemy companies are the reinsurers.
23.
In case of a re-insurance effected before the war of a contract of marine
insurance, the cession of a risk which had been ceded to the re-insurer shall, if
it had attached before the outbreak of war, remain valid and effect be given to
the contract notwithstanding the outbreak of war; sums due under the contract of
re-insurance in respect either of premiums or of losses shall be recoverable
after the war.
24.
The provisions of paragraphs 17 and 18 and the last part of paragraph 16 shall
apply to contracts for the re-insurance of marine risks.
SECTION VI.
MIXED ARBITRAL TRIBUNAL.
ARTICLE 304.
(a) Within three months from the date of the coming into force of the present
Treaty, a Mixed Arbitral Tribunal shall be established between each of the Allied
and Associated Powers on the one hand and Germany on the other hand. Each such
Tribunal shall consist of three members. Each of the Governments concerned shall
appoint one of these members. The President shall be chosen by agreement between
the two Governments concerned.
In case of failure to reach agreement, the President of the Tribunal and two
other persons, either of whom may in case of need take his place, shall be chosen
by the Council of the League of Nations, or, until this is set up, by M. Gustave
Ador if he is willing. These persons shall be nationals of Powers that have
remained neutral during the war.
If any Government does not proceed within a period of one month in case there is
a vacancy to appoint a member of the Tribunal, such member shall be chosen by the
other Government from the two persons mentioned above other than the President.
The decision of the majority of the members of the Tribunal shall be the decision
of the Tribunal.
(b) The Mixed Arbitral Tribunals established pursuant to paragraph (a), shall
decide all questions within their competence under Sections III, IV, V and VII.
In addition, all questions, whatsoever their nature, relating to contracts
concluded before the coming into force of the present Treaty between nationals of
the Allied and Associated Powers and German nationals shall be decided by the
Mixed Arbitral Tribunal, always excepting questions which, under the laws of the
Allied, Associated or Neutral Powers, are within the jurisdiction of the National
Courts of those Powers. Such questions shall be decided by the National Courts in
question, to the exclusion of the Mixed Arbitral Tribunal. The party who is a
national of an Allied or Associated Power may nevertheless bring the case before
the Mixed Arbitral Tribunal if this is not prohibited by the laws of his country.
(c) If the number of cases justifies it, additional members shall be appointed
and each Mixed Arbitral Tribunal shall sit in divisions. Each of these divisions
will be constituted as above.
(d) Each Mixed Arbitral Tribunal will settle its own procedure except in so far
as it is provided in the following Annex, and is empowered to award the sums to
be paid by the loser in respect of the costs and expenses of the proceedings.
(e) Each Government will pay the remuneration of the member of the Mixed Arbitral
Tribunal appointed by it and of any agent whom it may appoint to represent it
before the Tribunal. The remuneration of the President will be determined by
special agreement between the Governments concerned; and this remuneration and
the joint expenses of each Tribunal will be paid by the two Governments in equal
moieties.
(f) The High Contracting Parties agree that their courts and authorities shall
render to the Mixed Arbitral Tribunals direct all the assistance in their power,
particularly as regards transmitting notices and collecting evidence.
(g) 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.
ANNEX.
1.
Should one of the members of the Tribunal either die, retire, or be unable for
any reason whatever to discharge his function, the same procedure will be
followed for filling the vacancy as was followed for appointing him.
2.
The Tribunal may adopt such rules of procedure as shall be in accordance with
justice and equity and decide the order and time at which each party must
conclude its arguments, and may arrange all formalities required for dealing with
the evidence.
3.
The agent and counsel of the parties on each side are authorised to present
orally and in writing to the Tribunal arguments in Support or in defence of each
case.
4.
The Tribunal shall keep record of the questions and cases submitted and the
proceedings thereon, with the dates of such proceedings.
5.
Each of the Powers concerned may appoint a secretary. These secretaries shall act
together as joint secretaries of the Tribunal and shall be subject to its
direction. The Tribunal may appoint and employ any other necessary officer or
officers to assist in the performance of its duties.
6.
The Tribunal shall decide all questions and matters submitted upon such evidence
and information as may be furnished by the parties concerned.
7.
Germany agrees to give the Tribunal all facilities and information required by it
for carrying out its investigations.
8.
The language in which the proceedings shall be conducted shall, unless otherwise
agreed, be English, French, Italian or Japanese, as may be determined by the
Allied or Associated Power concerned.
9.
The place and time for the meetings of each Tribunal shall be determined by the
President of the Tribunal.
ARTICLE 305.
Whenever a competent court has given or gives a decision in a case covered by
Sections III, IV, V or VII, and such decision is inconsistent with the provisions
of such Sections, the party who is prejudiced by the decision shall be entitled
to obtain redress which shall be fixed by the Mixed Arbitral Tribunal. At the
request of the national of an Allied or Associated Power, the redress may,
whenever possible, be effected by the Mixed Arbitral Tribunal directing the
replacement of the parties in the position occupied by them before the judgment
was given by the German court.
SECTION VII.
INDUSTRIAL PROPERTY.
ARTICLE 306.
Subject to the stipulations of the present Treaty, rights of industrial, literary
and artistic property, as such property is defined by the International
Conventions of Paris and of Berne, mentioned in Article 286, shall be
re-established or restored, as from the coming into force of the present Treaty,
in the territories of the High Contracting Parties, in favour of the persons
entitled to the benefit of them at the moment when the state of war commenced or
their legal representatives. Equally, rights which, except for the war, would
have been acquired during the war in consequence of an application made for the
protection of industrial property, or the publication of a literary or artistic
work, shall be recognised and established in favour of those persons who would
have been entitled thereto, from the coming into force of the present Treaty.
Nevertheless, all acts done by virtue of the special measures taken during the
war under legislative, executive or administrative authority of any Allied or
Associated Power in regard to the rights of German nationals in industrial,
literary or artistic property shall remain in force and shall continue to
maintain their full effect.
No claim shall be made or action brought by Germany or German nationals in
respect of the use during the war by the Government of any Allied or Associated
Power, or by any persons acting on behalf or with the assent of such Government,
of any rights in industrial, literary or artistic property, nor in respect of the
sale, offering for sale, or use of any products, articles or apparatus whatsoever
to which such rights applied.
Unless the legislation of any one of the Allied or Associated Powers in force at
the moment of the signature of the present Treaty otherwise directs, sums due or
paid in virtue of any act or operation resulting from the execution of the
special measures mentioned in paragraph l of this Article shall be dealt with in
the same way as other sums due to German nationals are directed to be dealt with
by the present Treaty; and sums produced by any special measures taken by the
German Government in respect of rights in industrial, literary or artistic
property belonging to the nationals of the Allied or Associated Powers shall be
considered and treated in the same way as other debts due from German nationals.
Each of the Allied and Associated Powers reserves to itself the right to impose
such limitations, conditions or restrictions on rights of industrial, literary or
artistic property (with the exception of trade-marks) acquired before or during
the war, or which may be subsequently acquired in accordance with its
legislation, by German nationals, whether by granting licences, or by the
working, or by preserving control over their exploitation, or in any other way,
as may be considered necessary for national defence, or in the public interest,
or for assuring the fair treatment by Germany of the rights of industrial,
literary and artistic property held in German territory by its nationals, or for
securing the due fulfilment of all the obligations undertaken by Germany in the
present Treaty. As regards rights of industrial, literary and artistic property
acquired after the coming into force of the present Treaty, the right so reserved
by the Allied and Associated Powers shall only be exercised in cases where these
limitations, conditions or restrictions may be considered necessary for national
defence or in the public interest.
In the event of the application of the provisions of the preceding paragraph by
any Allied or Associated Power, there shall be paid reasonable indemnities or
royalties, which shall be dealt with in the same way as other sums due to German
nationals are directed to be dealt with by the present Treaty.
Each of the Allied or Associated Powers reserves the right to treat as void and
of no effect any transfer in whole or in part of or other dealing with rights of
or in respect of industrial, literary or artistic property effected after August
1, 1914, or in the future, which would have the result of defeating the objects
of the provisions of this Article.
The provisions of this Article shall not apply to rights in industrial, literary
or artistic property which have been dealt with in the liquidation of businesses
or companies under war legislation by the Allied or Associated Powers, or which
may be so dealt with by virtue of Article 297, paragraph (b).
ARTICLE 307.
A minimum of one year after the coming into force of the present Treaty shall be
accorded to the nationals of the High Contracting Parties, without extension fees
or other penalty, in order to enable such persons to accomplish any act, fulfil
any formality, pay any fees, and generally satisfy any obligation prescribed by
the laws or regulations of the respective States relating to the obtaining,
preserving, or opposing rights to, or in respect of, industrial property either
acquired before August 1, 1914, or which, except for the war, might have been
acquired since that date as a result of an application made before the war or
during its continuance, but nothing in this Article shall give any right to
reopen interference proceedings in the United States of America where a final
hearing has taken place.
All rights in, or in respect of, such property which may have lapsed by reason of
any failure to accomplish any act, fulfil any formality, or make any payment,
shall revive, but subject in the case of patents and designs to the imposition of
such conditions as each Allied or Associated Power may deem reasonably necessary
for the protection of persons who have manufactured or made use of the subject
matter of such property while the rights had lapsed. Further, where rights to
patents or designs belonging to German nationals are revived under this Article,
they shall be subject in respect of the grant of licences to the same provisions
as would have been applicable to them during the war, as well as to all the
provisions of the present Treaty.
The period from August 1, 1914, until the coming into force of the present Treaty
shall be excluded in considering the time within which a patent should be worked
or a trade mark or design used, and it is further agreed that no patent,
registered trade mark or design in force on August 1, 1914, shall be subject to
revocation or cancellation by reason only of the failure to work such patent or
use such trade mark or design for two years after the coming into force of the
present Treaty.
ARTICLE 308.
The rights of priority, provided by Article 4 of the International Convention for
the Protection of Industrial Property of Paris, of March 20, 1883, revised at
Washington in 1911 or by any other Convention or Statute, for the filing or
registration of applications for patents or models of utility, and for the
registration of trade marks, designs and models which had not expired on August
1, 1914, and those which have arisen during the war, or would have arisen but for
the war, shall be extended by each of the High Contracting Parties in favour of
all nationals of the other High Contracting Parties for a period of six months
after the coming into force of the present Treaty.
Nevertheless, such extension shall in no way affect the right of any of the High
Contracting Parties or of any person who before the coming into force of the
present Treaty was bona fide in possession of any rights of industrial property
conflicting with rights applied for by another who claims rights of priority in
respect of them, to exercise such rights by itself or himself personally, or by
such agents or licensees as derived their rights from it or him before the coming
into force of the present Treaty; and such persons shall not be amenable to any
action or other process of law in respect of infringement.
ARTICLE 309.
No action shall be brought and no claim made by persons residing or carrying on
business within the territories of Germany on the one part and of the Allied or
Associated Powers on the other, or persons who are nationals of such Powers
respectively, or by any one deriving title during the war from such persons, by
reason of any action which has taken place within the territory of the other
party between the date of the declaration of war and that of the coming into
force of the present Treaty, which might constitute an infringement of the rights
of industrial property or rights of literary and artistic property, either
existing at any time during the war or revived under the provisions of Articles
307 and 308.
Equally, no action for infringement of industrial, literary or artistic property
rights by such persons shall at any time be permissible in respect of the sale or
offering for sale for a period of one year after the signature of the present
Treaty in the territories of the Allied or Associated Powers on the one hand or
Germany on the other, of products or articles manufactured, or of literary or
artistic works published, during the period between the declaration of war and
the signature of the present Treaty, or against those who have acquired and
continue to use them. It is understood, nevertheless, that this provision shall
not apply when the possessor of the rights was domiciled or had an industrial or
commercial establishment in the districts occupied by Germany during the war.
This Article shall not apply as between the United States of America on the one
hand and Germany on the other.
ARTICLE 310.
Licenses in respect of industrial, literary or artistic property concluded before
the war between nationals of the Allied or Associated Powers or persons residing
in their territory or carrying on business therein, on the one part, and German
nationals, on the other part, shall be considered as cancelled as from the date
of the declaration of war between Germany and the Allied or Associated Power.
But, in any case, the former beneficiary of a contract of this kind shall have
the right, within a period of six months after the coming into force of the
present Treaty, to demand from the proprietor of the rights the grant of a new
license, the conditions of which, in default of agreement between the parties,
shall be fixed by the duly qualified tribunal in the country under whose
legislation the rights had been acquired, except in the case of licenses held in
respect of rights acquired under German law. In such cases the conditions shall
be fixed by the Mixed Arbitral Tribunal referred to in Section VI of this Part.
The tribunal may, if necessary, fix also the amount which it may deem just should
be paid by reason of the use of the rights during the war.
No license in respect of industrial, literary or artistic property, granted under
the special war legislation of any Allied or Associated Power, shall be affected
by the continued existence of any license entered into before the war, but shall
remain valid and of full effect, and a license so granted to the former
beneficiary of a license entered into before the war shall be considered as
substituted for such license.
Where sums have been paid during the war by virtue of a license or agreement
concluded before the war in respect of rights of industrial property or for the
reproduction or the representation of literary, dramatic or artistic works, these
sums shall be dealt with in the same manner as other debts or credits of German
nationals, as provided by the present Treaty.
This Article shall not apply as between the United States of America on the one
hand and Germany on the other.
ARTICLE 311
The inhabitants of territories separated from Germany by virtue of the present
Treaty shall, notwithstanding this separation and the change of nationality
consequent thereon, continue to enjoy in Germany all the rights in industrial,
literary and artistic property to which they were entitled under German
legislation at the time of the separation.
Rights of industrial, literary, and artistic property which are in force in the
territories separated from Germany under the present Treaty at the moment of the
separation of these territories from Germany, or which will be re-established or
restored in accordance with the provisions of Article 306 of the present Treaty,
shall be recognised by the State to which the said territory is transferred and
shall remain in force in that territory for the same period of time given them
under the German law.
SECTION VIII.
SOCIAL AND STATE INSURANCE IN CEDED
TERRITORY.
ARTICLE 312.
Without prejudice to the provisions contained in other Articles of the present
Treaty, the German Government undertakes to transfer to any Power to which German
territory in Europe is ceded, and to any Power administering former German
territory as a mandatory under Article 22 of Part I (League of Nations), such
portion of the reserves accumulated by the Government of the German Empire or of
German States, or by public or private organisations under their control, as is
attributable to the carrying on of Social or State Insurance in such territory.
The Powers to which these funds are transferred must apply them to the
performance of the obligations arising from such insurances
The conditions of the transfer will be determined by special conventions to be
concluded between the German Government and the Governments concerned.
In case these special conventions are not concluded in accordance with the above
paragraph within three months after the coming into force of the present Treaty,
the conditions of transfer shall in each case be referred to a Commission of five
members one of whom shall be appointed by the German Government, one by the other
interested Government and three by the Governing Body of the International Labour
Office from the nationals of other States. This Commission shall by majority
vote, within three months after appointment adopt recommendations for submission
to the Council of the League of Nations, and the decisions of the Council shall
forthwith be accepted as final by Germany