Peace Treaty of Versailles (Articles 264 - 312: Economic Clauses) (28 June 1919)
PART X.
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.
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
