(b) Reconstruction materials, (stones, bricks, refractory bricks, tiles,

wood, window glass, steel, lime, cement, &c.,) machinery, heating

apparatus, furniture, and like articles of a commercial character which

the said Governments desire to have produced and manufactured in Germany

and delivered to them to permit of the restoration of the invaded areas.

3. The lists relating to the articles mentioned in 2 (a), above, shall

be filed within sixty days after the date of the coming into force of

the present treaty. The lists relating to the articles in 2 (b), above,

shall be filed on or before Dec. 31, 1919. The lists shall contain all

such details as are customary in commercial contracts dealing with the

subject matter, including specifications, dates of delivery, (but not

extending over more than four years,) and places of delivery, but not

price or value, which shall be fixed as hereinafter provided by the

commission.

4. Immediately upon the filing of such lists with the commission, the

commission shall consider the amount and number of the materials and

animals mentioned in the lists provided for above which are to be

required of Germany. In reaching a decision on this matter the

commission shall take into account such domestic requirements of Germany

as it deems essential for the maintenance of Germany's social and

economic life, and the prices and dates at which similar articles can be

obtained in the Allied and Associated countries as compared with those

to be fixed for German articles, and the general interest of the Allied

and Associated Governments that the industrial life of Germany be not so

disorganized as to affect adversely the ability of Germany to perform

the other acts of reparation stipulated for. Machinery, equipment,

tools, and like articles of a commercial character in actual industrial

use are not, however, to be demanded of Germany unless there is no free

stock of such articles respectively which is not in use and is

available, and then not in excess of 30 per cent. of the quantity of

such articles in use in any one establishment or undertaking.

The commission shall give representatives of the German Government an

opportunity and a time to be heard as to their capacity to furnish the

said materials, articles, and animals. The decision of the commission

shall thereupon and at the earliest possible moment be communicated to

the German Government and to the several interested Allied and

Associated Governments. The German Government undertakes to deliver the

materials, articles, and animals as specified in the said communication,

and the interested Allied and Associated Governments severally agree to

accept the same, provided they conform to the specification given, or

are not, in the judgment of the commission, unfit to be utilized in the

work of reparation.

5. The commission shall determine the value to be attributed to the

materials, articles, and animals to be delivered in accordance with the

foregoing, and the Allied or Associated Power receiving the same agrees

to be charged with such value, and the amount thereof shall be treated

as a payment by Germany to be divided in accordance with Article 237 of

this part of the present treaty.

In cases where the right to require physical restoration as above

provided is exercised the commission shall insure that the amount to be

credited against the reparation obligation of Germany shall be the fair

value of work done or materials supplied by Germany and that the claim

made by the interested power in respect of the damage so repaired by

physical restoration shall be discharged to the extent of the

proportion which the damage thus repaired bears to the whole of the

damage thus claimed for.

6. As an immediate advance on account of the animals referred to in

Paragraph 2 (a) above, Germany undertakes to deliver in equal monthly

installments in the three months following the coming into force of the

present treaty the following quantities of live stock:

First. To the French Government, 500 stallions, (3 to 7 years,) 30,000

fillies and mares, (18 months to 7 years,) type: Ardennais, Boulonnais,

or Belgian; 2,000 bulls, (18 months to 3 years); 90,000 milch cows, (2

to 6 years); 1,000 rams, 100,000 sheep, 10,000 goats.

Second. To the Belgian Government, 200 stallions, (3 to 7 years) large

Belgian type; 5,000 mares, (3 to 7 years) large Belgian type; 5,000

fillies, (18 months to 3 years); large Belgian type; 2,000 bulls, (18

months to 3 years) 50,000 milch cows, (2 to 6 years) 40,000 heifers, 200

rams, 20,000 sheep, 15,000 sows.

The animals delivered shall be of average health and condition. To the

extent that animals so delivered cannot be identified as animals taken

away or seized, the value of such animals shall be credited against the

reparation obligations of Germany in accordance with Paragraph 5 of this

annex.

7. Without waiting for the decisions of the commission, referred to in

Paragraph 4 of this annex, to be taken, Germany must continue the

delivery to France of the agricultural material referred to in Article 3

of the renewal of the armistice of 16th January, 1919.

ANNEX V.

1. Germany accords the following options for the delivery of coal and

derivatives of coal to the under-mentioned signatories of the present

treaty.

2. Germany undertakes to deliver to France 7,000,000 tons of coal per

year for ten years. In addition, Germany undertakes to deliver to France

annually for a period not exceeding ten years an amount of coal equal to

the difference between the annual production before the war of the coal

mines of the Nord and Pas de Calais, destroyed as a result of the war,

and the production of the mines of the same area during the years in

question; such delivery not to exceed 20,000,000 tons in any one year of

the first five years, and 8,000,000 tons in any one year of the

succeeding five years.

It is understood due diligence will be exercised in the restoration of

the destroyed mines in the Nord and Pas de Calais.

3. Germany undertakes to deliver to Belgium 8,000,000 tons of coal

annually for ten years.

4. Germany undertakes to deliver to Italy up to the following quantities

of coal:

July, 1919, to June, 1920, 4,500,000 tons.

July, 1920, to June, 1921, 6,000,000 tons.

July, 1921, to June, 1922, 7,500,000 tons.

July, 1922, to June, 1923, 8,000,000 tons.

July, 1923, to June, 1924, 8,500,000 tons.

and each of the following five years, 8,500,000 tons.

At least two-thirds of the actual deliveries to be land borne.

5. Germany further undertakes to deliver annually to Luxemburg, if

directed by the Reparation Commission, a quantity of coal equal to the

pre-war annual consumption of German coal in Luxemburg.

6. The prices to be paid for coal delivered under these options shall be

as follows:

(a) For overland delivery, including delivery by barge, the German

pithead price to German nationals, plus the freight to French, Belgian,

Italian, or Luxemburg frontiers, provided the pithead price does not

exceed the pithead price of British coal for export. In case of Belgian

bunker coal, the price shall not exceed the Dutch bunker price. Railroad

and barge tariffs shall not be higher than the lowest similar rates paid

in Germany.

(b) For sea delivery, the German export price f. o. b. the German ports,

or the British export price f. o. b. British ports, whichever may be

lower.

7. The Allied and Associated Governments interested may demand the

delivery in place of coal of metallurgical coke in the proportion of

three tons of coke to four tons of coal.

8. Germany undertakes to deliver to France and to transport to the

French frontier by rail or by water the following products during each

of the three years following the coming into force of this treaty:

Benzol--35,000 tons.

Coal tar--50,000 tons.

Sulphate of ammonia--30,000 tons.

All or part of the coal tar may, at the option of the French Government,

be replaced by corresponding quantities of products of distillation,

such as light oils, heavy oils, anthracine, naphthaline, or pitch.

9. The price paid for coke and for the articles referred to in the

preceding paragraphs shall be the same as the price paid by German

nationals under the same conditions of shipment to the French frontier

or to the German ports, and shall be subject to any advantages which may

be accorded similar products furnished to German nationals.

10. The foregoing options shall be exercised through the intervention of

the Reparation Commission, which, subject to the specific provisions

hereof, shall have power to determine all questions relative to

procedure and the qualities and quantities of products, the quantity of

coke which may be substituted for coal, and the times and modes of

delivery and payment. In giving notice to the German Government of the

foregoing options the commission shall give at least 120 days' notice of

deliveries to be made after 1st January, 1920, and at least thirty days'

notice of deliveries to be made between the coming into force of this

treaty and the 1st January, 1920. Until Germany has received the demands

referred to in this paragraph the provisions of the protocol of the 25th

December, 1918, (execution of Article 6 of the armistice of the 11th

November, 1918,) remain in force.

The notice to be given to the German Government of the exercise of the

right of substitution accorded by Paragraphs 7 and 8 shall be such as

the Reparation Commission may consider sufficient.

If the commission shall determine that the full exercise of the

foregoing options would interfere unduly with the industrial

requirements of Germany, the commission is authorized to postpone or to

cancel deliveries, and in so doing to settle all questions of priority,

but the coal to replace coal from destroyed mines shall receive priority

over other deliveries.

ANNEX VI.

1. Germany accords to the Reparation Commission an option to require as

part of reparation the delivery by Germany of such quantities and kinds

of dyestuffs and chemical drugs as the commission may designate, not

exceeding 50 per cent. of the total stock of each and every kind of

dyestuff and chemical drug in Germany or under German control at the

date of the coming into force of the present treaty.

This option shall be exercised within sixty days of the receipt by the

commission of such particulars as to stocks as may be considered

necessary by the commission.

2. Germany further accords to the Reparation Commission an option to

require delivery during the period from the date of the coming into

force of the present treaty until Jan. 1, 1920, and during each period

of six months thereafter until Jan. 1, 1925, of any specified kind of

dyestuff and chemical drug up to an amount not exceeding 25 per cent. of

the German production of such dyestuffs and chemical drugs during the

previous six months' period. If in any case the production during such

previous six months was, in the opinion of the commission, less than

normal, the amount required may be 25 per cent. of the normal

production.

Such option shall be exercised within four weeks after the receipt of

such particulars as to production and in such form as may be considered

necessary by the commission; these particulars shall be furnished by the

German Government immediately after the expiration of each six months'

period.

3. For dyestuffs and chemical drugs delivered under Paragraph 1 the

price shall be fixed by the commission, having regard to pre-war net

export prices and to subsequent increases of cost.

For dyestuffs and chemical drugs delivered under Paragraph 2 the price

shall be fixed by the commission, having regard to pre-war net export

prices and subsequent variations of cost or the lowest net selling price

of similar dyestuffs and chemical drugs to any other purchaser.

4. All details, including mode and times of exercising the options and

making delivery, and all other questions arising under this arrangement

shall be determined by the Reparation Commission; the German Government

will furnish to the commission all necessary information and other

assistance which it may require.

5. The above expression "dyestuffs and chemical drugs" includes all

synthetic dyes and drugs and intermediate or other products used in

connection with dyeing, so far as they are manufactured for sale. The

present arrangement shall also apply to cinchona bark and salts of

quinine.

ANNEX VII.

Germany renounces on her own behalf and on behalf of her nationals in

favor of the principal Allied and Associated Powers all rights, titles

or privileges of whatever nature in the submarine cables set out below,

or in any portions thereof:

Emden-Vigo: from the Straits of Dover to off Vigo;

Emden-Brest: from off Cherbourg to Brest;

Emden-Teneriffe: from off Dunkirk to off Teneriffe;

Emden-Azores (1): from the Straits of Dover to Fayal;

Emden-Azores (2): from the Straits of Dover to Fayal;

Azores-New York (1): from Fayal to New York;

Azores-New York (2): from Fayal to the longitude of Halifax;

Teneriffe-Monrovia: from off Teneriffe to off Monrovia;

Monrovia-Lome: from about latitude 2 degrees 30 minutes north,

and longitude 7 degrees 40 minutes west of Greenwich, to about

latitude 2 degrees 20 minutes north, and longitude 5 degrees 30

minutes west of Greenwich, and from about latitude 3 degrees 48

minutes north, and longitude 0 degrees 0 minutes to Lome;

Lome-Duala: from Lome to Duala;

Monrovia-Pernambuco: from off Monrovia to off Pernambuco;

Constantinople-Constanza: from Constantinople to Constanza;

Yap-Shanghai, Yap-Guam, and Yap-Menado (Celebes): from Yap

Island to Shanghai, from Yap Island to Guam Island, and from

Yap Island to Menado.

The value of the above-mentioned cables or portions thereof in so far as

they are privately owned, calculated on the basis of the original cost

less a suitable allowance for depreciation, shall be credited to Germany

in the reparation account.

SECTION II.--_Special Provisions_

=ARTICLE 245.=--Within six months after coming into force of the present

treaty the German Government must restore to the French Government the

trophies, archives, historical souvenirs, or works of art carried away

from France by the German authorities in the course of the war of

1870--71 and during this last war, in accordance with a list which will

be communicated to it by the French Government; particularly the French

flags taken in the course of the war of 1870--71, and all the political

papers taken by the German authorities on Oct. 10, 1870, at the Château

of Cercay, near Brunoy, (Seine-et-Oise,) belonging at the time to M.

Rouher, formerly Minister of State.

=ARTICLE 246.=--Within six months of the coming into force of the

present treaty Germany will restore to his Majesty the King of the

Hedjaz the original Koran of the Caliph Othman, which was removed from

Medina by the Turkish authorities and is stated to have been presented

to the ex-Emperor William II.

Within the same period Germany will hand over to his Britannic Majesty's

Government the skull of the Sultan Mkwawa, which was removed from the

protectorate of German East Africa and taken to Germany.

The delivery of the articles above referred to will be effected in such

place and in such conditions as may be laid down by the Governments to

which they are to be restored

=ARTICLE 247.=--Germany undertakes to furnish to the University of

Louvain, within three months after a request made by it and transmitted

through the intervention of the Reparation Commission, manuscripts,

incunabula, printed books, maps, and objects of collection corresponding

in number and value to those destroyed in the burning by Germany of the

library of Louvain. All details regarding such replacement will be

determined by the Reparation Commission.

Germany undertakes to deliver to Belgium, through the Reparation

Commission, within six months of the coming into force of the present

treaty, in order to enable Belgium to reconstitute her two great

artistic works:

(a) The leaves of the triptych of the Mystic Lamb painted by the Van

Eyck Brothers, formerly in the Church of St. Bavon at Ghent, now in the

Berlin Museum.

(b) The leaves of the triptych of the Last Supper, painted by Dierick

Bouts, formerly in the Church of St. Peter at Louvain, two of which are

now in the Berlin Museum and two in the old Pinakothek at Munich.

PART IX

Financial Clauses

=ARTICLE 248.=--Subject to such exceptions as the Reparation Commission

may approve, a first charge upon all the assets and revenues of the

German Empire and its constituent States shall be the cost of reparation

and all other costs arising under the present treaty or any treaties or

agreements supplementary thereto or under arrangements concluded between

Germany and the Allied and Associated Powers during the armistice or its

extensions.

Up to May 1, 1921, the German Government shall not export or dispose of,

and shall forbid the export or disposal of, gold without the previous

approval of the Allied and Associated Powers acting through the

Reparation Commission.

=ARTICLE 249.=--There shall be paid by the German Government the total

cost of all armies of the Allied and Associated Governments in occupied

German territory from the date of the signature of the armistice of the

11th November, 1918, including the keep of men and beasts, lodging and

billeting, pay and allowances, salaries and wages, bedding, heating,

lighting, clothing, equipment, harness and saddlery, armament and

rolling stock, air services, treatment of sick and wounded, veterinary

and remount services, transport service of all sorts, (such as by rail,

sea, river, or motor lorries,) communications and correspondence, and in

general the cost of all administrative or technical services, the

working of which is necessary for the training of troops and for keeping

their numbers up to strength and preserving their military efficiency.

The cost of such liabilities under the above heads, so far as they

relate to purchases or requisitions by the Allied and Associated

Governments in the occupied territories, shall be paid by the German

Government to the Allied and Associated Governments in marks at the

current or agreed rate of exchange. All other of the above costs shall

be paid in gold marks.

=ARTICLE 250.=--Germany confirms the surrender of all material handed

over to the Allied and Associated Powers in accordance with the

armistice agreement of the 11th November, 1918, and subsequent armistice

agreements, and recognizes the title of the Allied and Associated Powers

to such material.

There shall be credited to the German Government against the sums due

from it to the Allied and Associated Powers for reparation, the value,

as assessed by the Reparation Commission referred to in Article 233 of

Part VIII. (reparation) of the present treaty, of the material handed

over in accordance with Article 7 of the armistice agreement of the 11th

November, 1918, Article 3 of the armistice agreement of the 16th

January, 1919, as well as of any other material handed over in

accordance with the armistice agreement of the 11th November, 1918, and

of subsequent armistice agreements, for which, as having non-military

value, credit should, in the judgment of the Reparation Commission, be

allowed to the German Government.

Property belonging to the Allied and Associated Governments or their

nationals restored or surrendered under the armistice agreements in

specie shall not be credited to the German Government.

=ARTICLE 251.=--The priority of the charges established by Article 248

shall, subject to the qualifications made below, be as follows:

(a) The cost of the armies of occupation as defined under Article 249

during the armistice and its extensions;

(b) The cost of any armies of occupation as defined under Article 249

after the coming into force of the present treaty;

(c) The cost of reparation arising out of the present treaty or any

treaties or conventions supplementary thereto;

(d) The cost of all other obligations incumbent on Germany under the

armistice conventions or under this treaty or any treaties or

conventions supplementary thereto.

The payment for such supplies of food and raw material for Germany and

such other payments as may be judged by the Allied and Associated Powers

to be essential to enable Germany to meet her obligations in respect of

reparation will have priority to the extent and upon the conditions

which have been or may be determined by the Governments of the said

powers.

=ARTICLE 252.=--The right of each of the Allied and Associated Powers to

dispose of enemy assets and property within its jurisdiction at the date

of the coming into force of the present treaty is not affected by the

foregoing provisions.

=ARTICLE 253.=--Nothing in the foregoing provisions shall prejudice in

any manner charges or mortgages lawfully effected in favor of the Allied

and Associated Powers or their nationals respectively, before the date

at which a state of war existed between Germany and the Allied and

Associated Powers concerned, by the German Empire or its constituent

States, or by German nationals on assets in their ownership at that

date.

=ARTICLE 254.=--The powers to which German territory is ceded shall,

subject to the qualifications made in Article 255, undertake to pay:

1. A portion of the debt of the German Empire as it stood on the 1st

August, 1914, calculated on the basis of the ratio between the average

for the three financial years 1911, 1912, 1913, of such revenues of the

ceded territory and the average for the same years of such revenues of

the whole German Empire as in the judgment of the Reparation Commission

are best calculated to represent the relative ability of the respective

territories to make payments.

2. A portion of the debt as it stood on the 1st August, 1914, of the

German State to which the ceded territory belonged, to be determined in

accordance with the principle stated above.

Such portions shall be determined by the Reparation Commission.

The method of discharging the obligation both in respect of capital and

of interest, so assumed, shall be fixed by the Reparation Commission.

Such method may take the form, inter alia, of the assumption by the

power to which the territory is ceded of Germany's liability for the

German debt held by her nationals. But in the event of the method

adopted involving any payments to the German Government, such payments

shall be transferred to the Reparation Commission on account of the sums

due for reparation so long as any balance in respect of such sums

remains unpaid.

=ARTICLE 255.=--1. As an exception to the above provision and inasmuch

as in 1871 Germany refused to undertake any portion of the burden of

the French debt, France shall be, in respect of Alsace-Lorraine, exempt

from any payment under Article 254.

2. In the case of Poland that portion of the debt which, in the opinion

of the Reparation Commission is attributable to the measures taken by

the German and Prussian Governments for the German colonization of

Poland shall be excluded from the apportionment to be made under Article

254.

[Illustration: Copyright Underwood & Underwood

Dreadnoughts Welcoming President Wilson Home

This photograph taken from the Fighting Top of the _Pennsylvania_, shows

American Warships in the North River, firing a salute in honor of the

President's return from France on the _George Washington_.]

3. In the case of all ceded territories other than Alsace-Lorraine that

portion of the debt of the German Empire or German States which in the

opinion of the Reparation Commission represents expenditure by the

Governments of the German Empire or States upon the Government

properties referred to in Article 256 shall be excluded from the

apportionment to be made under Article 254.

=ARTICLE 256.=--Powers to which German territory is ceded shall acquire

all property and possessions situated therein belonging to the German

Empire or to the German States, and the value of such acquisitions shall

be fixed by the Reparation Commission, and paid by the State acquiring

the territory to the Reparation Commission for the credit of the German

Government on account of the sums due for reparation.

For the purposes of this article the property and possessions of the

German Empire and States shall be deemed to include all the property of

the Crown, the Empire or the States, and the private property of the

former German Emperor and other royal personages.

In view of the terms on which Alsace-Lorraine was ceded to Germany in

1871--France shall be exempt in respect thereof from making any payment

or credit under this article for any property or possessions of the

German Empire or States situated therein. Belgium also shall be exempt

from making any payment or any credit under this article for any

property or possessions of the German Empire or States situated in

German territory ceded to Belgium under the present treaty.

=ARTICLE 257.=--In the case of the former German territories, including

colonies, protectorates, or dependencies, administered by a mandatory

under Article 22 of Part I. (League of Nations) of the present treaty,

neither the territory nor the mandatory power shall be charged with any

portion of the debt of the German Empire or States.

All property and possessions belonging to the German Empire or to the

German States situated in such territory shall be transferred with the

territories to the Mandatory Power in its capacity as such, and no

payment shall be made nor any credit given to those Governments in

consideration of this transfer.

For the purpose of this article the property and possessions of the

German Empire and of the German States shall be deemed to include all

the property of the crown, the empire or the States and the private

property of the former German Emperor and other royal personages.

=ARTICLE 258.=--Germany renounces all rights accorded to her or her

nationals by treaties, conventions or agreements, of whatsoever kind, to

representation upon or participation in the control or administration of

commissions, state banks, agencies or other financial or economic

organizations of an international character, exercising powers of

control or administration, and operating in any of the Allied or

Associated States, or in Austria, Hungary, Bulgaria or Turkey, or in the

dependencies of these States, or in the former Russian Empire.

=ARTICLE 259.=--1. Germany agrees to deliver within one month from the

date of the coming into force of the present treaty, to such authority

as the principal Allied and Associated Powers may designate, the sum in

gold which was to be deposited in the Reichsbank in the name of the

Council of the Administration of the Ottoman Public Debt as security for

the first issue of Turkish Government currency notes.

2. Germany recognizes her obligation to make annually for the period of

twelve years the payments in gold for which provision is made in the

German Treasury bonds deposited by her from time to time in the name of

the Council of the Administration of the Ottoman Public Debt as security

for the second and subsequent issues of Turkish Government currency

notes.

3. Germany undertakes to deliver, within one month from the coming into

force of the present treaty, to such authority as the principal Allied

and Associated Powers may designate, the deposit gold constituted in the

Reichsbank or elsewhere, representing the residue of the advance in gold

agreed to on the 5th of May, 1915, by the Council of the Administration

of the Ottoman Public Debt to the Imperial Ottoman Government.

4. Germany agrees to transfer to the principal Allied and Associated

Powers any title that she may have to the sum in gold and silver

transmitted by her to the Turkish Ministry of Finance in November, 1918,

in anticipation of the payment to be made in May, 1919, for the service

of the Turkish internal loan.

5. Germany undertakes to transfer to the principal Allied and Associated

Powers within a period of one month from the coming into force of the

present treaty, any sums in gold transferred as pledge or as collateral

security to the German Government or its nationals in connection with

loans made by them to the Austro-Hungarian Government.

6. Without prejudice to Article 292 of Part X. (economic clauses) of the

present treaty, Germany confirms the renunciation provided for in

Article XV. of the armistice convention of the 11th November, 1918, of

any benefit disclosed by the treaties of Bucharest and of Brest-Litovsk,

and by the treaties supplementary thereto.

Germany undertakes to transfer, either to Rumania or to the principal

Allied and Associated Powers, as the case may be, all monetary

instruments, specie, securities and negotiable instruments or goods

which she has received under the aforesaid treaties.

7. The sums of money and all securities, instruments and goods of

whatever nature, to be delivered, paid and transferred under the

provisions of this article, shall be disposed of by the principal Allied

and Associated Powers in a manner hereafter to be determined by these

powers.

=ARTICLE 260.=--Without prejudice to the renunciation of any rights by

Germany on behalf of herself or of her nationals in the other provisions

of the present treaty, the Reparation Commission may, within one year

from the coming into force of the present treaty, demand that the German

Government become possessed of any rights and interests of the German

nationals in any public utility undertaking or in any concession

operating in Russia, China, Turkey, Austria, Hungary, and Bulgaria, or

in the possessions or dependencies of these States or in any territory

formerly belonging to Germany or her allies, to be ceded by Germany or

her allies to any power, or to be administered by a mandatary under the

present treaty, and may require that the German Government transfer,

within six months of the date of demand, all such rights and interests

and any similar rights and interests the German Government may itself

possess, to the Reparation Commission.

Germany shall be responsible for indemnifying her nationals so

dispossessed and the Reparation Commission shall credit Germany on

account of sums due for reparation with such sums in respect of the

value of the transferred rights and interests as may be assessed by the

Reparation Commission, and the German Government shall, within six

months from the coming into force of the present treaty, communicate to

the Reparation Commission all such rights and interests, whether already

granted, contingent, or not yet exercised, and shall renounce on behalf

of itself and its nationals in favor of the Allied and Associated Powers

all such rights and interests which have not been so communicated.

=ARTICLE 261.=--Germany undertakes to transfer to the Allied and

Associated Powers any claims she may have to payment or repayment by the

Governments of Austria, Hungary, Bulgaria, Turkey, and, in particular

any claims which may arise, now or hereafter, from the fulfillment of

undertakings made by Germany during the war to those Governments.

=ARTICLE 262.=--Any monetary obligation due by Germany arising out of

the present treaty and expressed in terms of gold marks shall be payable

at the option of the creditors in pounds sterling payable in London;

gold dollars of the United States of America payable in New York; gold

francs payable in Paris, or gold lire payable in Rome.

For the purpose of this article, the gold coins mentioned above shall be

defined as being of the weight and fineness of gold as enacted by law on

the 1st January, 1914.

=ARTICLE 263.=--Germany gives a guarantee to the Brazilian Government

that all sums representing the sale of coffee belonging to the State of

Sao Paolo in the Ports of Hamburg, Bremen, Antwerp, and Trieste, which

were deposited with the Bank of the Bleichröder at Berlin, shall be

reimbursed, together with interest at the rate or rates agreed upon.

Germany, having prevented the transfer of the sums in question to the

State of Sao Paolo at the proper time, guarantees also that the

reimbursements shall be effected at the rate of exchange of the day of

the deposit.

PART X

Economic Clauses

SECTION I.--_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 German

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

régime 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 favor, 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 Article 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 reimportation 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, mercerization,

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 régime 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 favorable

duties which were applied to imports into Germany on the 31st July,

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 the 25th December,

1902, enjoyed at the above-mentioned date (31st July, 1914,) rates

conventionalized 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 the 31st July, 1914.

=ARTICLE 270.=--The Allied and Associated Powers reserve the right to

apply to German territory occupied by their troops a special customs

régime 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-favored 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 recognized as valid by Germany before the war, or which may

hereafter be recognized as valid by the principal maritime States, shall

be recognized 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 seacoast or not, provided that such certificates and

documents shall be issued in conformity with the general practice

observed in the principal maritime States.

The high contracting parties agree to recognize 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 descriptions 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-favored 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 1, 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 recognize 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 naturalization

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 271 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 281.=--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:

1. Conventions of March 14, 1884; Dec. 1, 1886, and March 23, 1887, and

final protocol of July 7, 1887, regarding the protection of submarine

cables.

2. Convention of Oct. 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 standardization of

railways.

5. Convention of July 5, 1890, regarding the publication of customs

tariffs and the organization of an international union for the

publication of customs tariffs.

6. Convention of Dec. 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 toll dues on the

Scheldt.

11. Convention of Oct. 29, 1888, regarding the establishment of a

definite arrangement guaranteeing the free use of the Suez Canal.

12. Convention of Sept. 23, 1910, respecting the unification of certain

regulations regarding collisions and salvage at sea.

13. Convention of Dec. 21, 1904, regarding the exemption of hospital

ships from dues and charges in ports.

14. Convention of Feb. 4, 1898, regarding the tonnage measurement of

vessels for inland navigation.

15. Convention of Sept. 26, 1906, for the suppression of nightwork for

women.

16. Convention of Sept. 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, 1892; April 15, 1893; April 3,

1894; April 19, 1897, and Dec. 3, 1903.

20. Convention of May 20, 1875, regarding the unification and

improvement of the metric system.

21. Convention of Nov. 29, 1906, regarding the unification of

pharmacopoeial formulae for potent drugs.

22. Convention of Nov. 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 Nov. 3, 1881, and April 15, 1889, regarding

precautionary measures against phylloxera.

25. Convention of March 19, 1902, regarding the protection of birds

useful to agriculture.

26. Convention of June 12, 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 5, 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 Feb. 1, 1889, regulating the

fisheries in the North Sea outside territorial waters.

2. The conventions and protocols of Nov. 16, 1887, Feb. 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; the International Convention of Berne of Sept. 9, 1886, for the

protection of literary and artistic works, revised at Berlin on Nov. 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 Rumania.

=ARTICLE 288.=--The special rights and privileges granted to Germany by

Article 3 of the convention of Dec. 2, 1899, relating to Samoa shall be

considered to have terminated on Aug. 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 recognizes that all the treaties, conventions,

or agreements which she has concluded with Austria, Hungary, Bulgaria,

or Turkey since Aug. 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 Aug. 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 recognizes 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 Rumania before Aug. 1, 1914, or after that date until the 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 Aug. 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 favors of any kind to Germany or to a German nation,

such concessions, privileges, and favors are _ipso facto_ annulled by

the present treaty.

No claims or indemnities which may result from this annulment shall 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

non-belligerent States or their nationals since Aug. 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 Jan. 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.

[Illustration: Copyright Harris & Ewing

M. Stephen Pichon

Chosen Chairman of the provisional organization of the League of Nations

in recognition of his long leadership, not only in France but

internationally, in the work of bringing about a world-wide organization

to preserve peace.]

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 thereto 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 ratifications 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 Clearing 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 endeavor 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 toward 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 favor 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 owner 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 of 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 Aug. 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 (e) 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

incumbrances 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 favor 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 or 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 its 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 the 11th of November,

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

Nov. 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 canceling 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 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, or debts owing to them by nationals of such powers

in so far as those claims or debts 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 trade-marks 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 to

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 restriction 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.

[Illustration: Copyright Harris & Ewing

Henry Cabot Lodge

Republican Senator from Massachusetts.

One of the most earnest opponents of the peace treaty as originally

drawn up.]

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 become 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 non-payment 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 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

non-payment 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 recognized in Germany as final, and shall be

enforced without it being necessary to have them declared executory.

If a judgment in respect of 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

defense, 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 recognized exchange of

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:--

(i.) That the contract was expressed to be made subject to the rules of

the exchange or association in question;

(ii.) That the rules applied to all persons concerned;

(iii.) 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 exchange or commercial associations in the districts

occupied by the enemy.

(c) The closure of contracts relating to cotton "futures," which were

closed as on the 31st July, 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 recognized 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 of 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 non-payment of

premiums, or has become void from breach of the conditions of the

contract, the assured or his representatives or the persons 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 non-payment 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 effect 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 canceled 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 non-payment 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 9 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 risk 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 re-insurers.

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 Tribunal 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 functions, 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 authorized to

present orally and in writing to the tribunal arguments in support or in

defense 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 favor 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 recognized and established in favor

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 1 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 licenses, or by the working, or by

preserving control over their exploitation, or in any other way as may

be considered necessary for national defense 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 fulfillment 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 defense or in the public interest.

In the event of the application of the provisions of the preceding

paragraph by any of the Allied or Associated Powers, 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 Aug. 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, fulfill 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 the 1st of August, 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, fulfill 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 licenses 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 the 1st August, 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 the 1st of August, 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 IV. of the

International Convention for the Protection of Industrial Property of

Paris, of the 20th March, 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 the 1st

August, 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 favor 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 or 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.

[Illustration: America's Peace Capitol in Paris

The Hotel Crillon, facing upon the Place de la Concorde, was

requisitioned to serve during the Peace Conference as the office and

living quarters of President Wilson's staff.

Copyright Underwood & Underwood]

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 canceled as from the date of the

declaration of war between Germany and the Allied or Associated Powers.

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 recognized 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 organizations 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 Labor 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 and the other Government

concerned.

PART XI

Aerial Navigation

=ARTICLE 313.=--The aircraft of the Allied and Associated Powers shall

have full liberty of passage and landing over and in the territory and

territorial waters of Germany, and shall enjoy the same privileges as

German aircraft, particularly in case of distress by land or sea.

=ARTICLE 314.=--The aircraft of the Allied and Associated Powers shall,

while in transit to any foreign country whatever, enjoy the right of

flying over the territory and territorial waters of Germany without

landing subject always to any regulations which may be made by Germany,

and which shall be applicable equally to the aircraft of Germany and

those of the Allied and Associated Countries.

=ARTICLE 315.=--All aerodromes in Germany open to national public

traffic shall be open for the aircraft of the Allied and Associated

Powers, and in any such aerodrome such aircraft shall be treated on a

footing of equality with German aircraft as regards charges of every

description, including charges for landing and accommodation.

=ARTICLE 316.=--Subject to the present provisions, the rights of

passage, transit and landing provided for in Articles 313, 314 and 315

are subject to the observation of such regulations as Germany may

consider it necessary to enact, but such regulations shall be applied

without distinction to German aircraft and to those of Allied and

Associated Countries.

=ARTICLE 317.=--Certificates of nationality, airworthiness, or

competency, and licenses, issued or recognized as valid by any of the

Allied or Associated Powers, shall be recognized in Germany as valid and

as equivalent to the certificates and licenses issued by Germany.

=ARTICLE 318.=--As regards internal commercial air traffic, the aircraft

of the Allied and Associated Powers shall enjoy in Germany most favored

nation treatment.

=ARTICLE 319.=--Germany undertakes to enforce the necessary measures to

insure that all German aircraft flying over her territory shall comply

with the rules as to lights and signals, rules of the air and rules for

air traffic on and in the neighborhood of aerodromes, which have been

laid down in the convention relative to aerial navigation concluded

between the Allied and Associated Powers.

=ARTICLE 320.=--The obligations imposed by the preceding provisions

shall remain in force until the 1st January, 1923, unless before that

date Germany shall have been admitted into the League of Nations or

shall have been authorized, by consent of the Allied and Associated

Powers, to adhere to the convention relative to aerial navigation

concluded between those powers.

PART XII

Ports, Waterways, and Railways

SECTION I.--_General Provisions_

=ARTICLE 321.=--Germany undertakes to grant freedom of transit through

her territories on the routes most convenient for international transit,

either by rail, navigable waterway, or canal, to persons, goods,

vessels, carriages, wagons, and mails coming from or going to the

territories of any of the Allied and Associated Powers (whether

contiguous or not); for this purpose the crossing of territorial waters

shall be allowed. Such persons, goods, vessels, carriages, wagons, and

mails shall not be subjected to any transit duty or to any undue delays

or restrictions, and shall be entitled in Germany to national treatment

as regards charges, facilities, and all other matters.

Goods in transit shall be exempt from all customs or other similar

duties.

All charges imposed on transport in transit shall be reasonable, having

regard to the conditions of the traffic. No charge, facility, or

restriction shall depend directly or indirectly on the ownership or on

the nationality of the ship or other means of transport on which any

part of the through journey has been, or is to be, accomplished.

=ARTICLE 322.=--Germany undertakes neither to impose nor to maintain any

control over transmigration traffic through her territories beyond

measures necessary to insure that passengers are _bona fide_ in transit;

nor to allow any shipping company or any other private body,

corporation, or person interested in the traffic to take any part

whatever in, or to exercise any direct or indirect influence over, any

administrative service that may be necessary for this purpose.

=ARTICLE 323.=--Germany undertakes to make no discrimination or

preference, direct or indirect, in the duties, charges, and prohibitions

relating to importations into or exportations from her territories, or,

subject to the special engagements contained in the present treaty, in

the charges and conditions of transport of goods or persons entering or

leaving her territories, based on the frontier crossed; or on the kind,

ownership, or flag of the means of transport (including aircraft)

employed; or on the original or immediate place of departure of the

vessel, wagon, or aircraft or other means of transport employed, or its

ultimate or intermediate destination; or on the route of or places of

transshipment on the journey; or on whether any port through which the

goods are imported or exported is a German port or a port belonging to

any foreign country or on whether the goods are imported or exported by

sea, by land, or by air.

Germany particularly undertakes not to establish against the ports and

vessels of any of the Allied and Associated Powers any surtax or any

direct or indirect bounty for export or import by German ports of

vessels, or by those of another power, for example by means of combined

tariffs. She further undertakes that persons or goods passing through a

port or using a vessel of any of the Allied and Associated Powers shall

not be subjected to any formality or delay whatever to which such

persons or goods would not be subjected if they passed through a German

port or a port of any other power, or used a German vessel or a vessel

of any other power.

=ARTICLE 324.=--All necessary administrative and technical measures

shall be taken to shorten, as much as possible, the transmission of

goods across the German frontiers and to insure their forwarding and

transport from such frontiers, irrespective of whether such goods are

coming from or going to the territories of the Allied and Associated

Powers or are in transit from or to those territories, under the same

material conditions in such matters as rapidity of carriage and care en

route as are enjoyed by other goods of the same kind carried on German

territory under similar conditions of transport.

In particular, the transport of perishable goods shall be promptly and

regularly carried out, and the customs formalities shall be effected in

such a way as to allow the goods to be carried straight through by

trains which make connection.

=ARTICLE 325.=--The seaports of the Allied and Associated Powers are

entitled to all favors and to all reduced tariffs granted on German

railways or navigable waterways for the benefit of German ports or of

any port of another power.

=ARTICLE 326.=--Germany may not refuse to participate in the tariffs or

combinations of tariffs intended to secure for ports of any of the

Allied and Associated Powers advantages similar to those granted by

Germany to her own ports or the ports of any other power.

SECTION II.--_Navigation_

CHAPTER I.--FREEDOM OF NAVIGATION

=ARTICLE 327.=--The nationals of any of the Allied and Associated Powers

as well as their vessels and property shall enjoy in all German ports

and in the inland navigation routes of Germany, the same treatment in

all respects as German nationals, vessels and property.

In particular the vessels of any one of the Allied or Associated Powers

shall be entitled to transport goods of any description, and passengers,

to or from any ports or places in German territory to which German

vessels may have access, under conditions which shall not be more

onerous than those applied in the case of national vessels; they shall

be treated on a footing of equality with national vessels as regards

port and harbor facilities and charges of every description, including

facilities for stationing, loading and unloading, and duties and charges

of tonnage, harbor, pilotage, lighthouse, quarantine, and all analogous

duties and charges of whatsoever nature, levied in the name of or for

the profit of the Government, public functionaries, private individuals,

corporations or establishments of any kind.

In the event of Germany granting a preferential régime to any of the

Allied or Associated Powers or to any other foreign power, this régime

shall be extended immediately and unconditionally to all the Allied and

Associated Powers.

There shall be no impediment to the movement of persons or vessels other

than those arising from prescriptions concerning customs, police,

sanitation, emigration and immigration and those relating to the import

and export of prohibited goods. Such regulations must be reasonable and

uniform and must not impede traffic unnecessarily.

CHAPTER II.--FREE ZONES IN PORTS

=ARTICLE 328.=--The free zones existing in German ports on the 1st

August, 1914, shall be maintained. These free zones and any other free

zones which may be established in German territory by the present treaty

shall be subject to the régime provided for in the following articles.

Goods entering or leaving a free zone shall not be subjected to any

import or export duty, other than those provided for in Article 330.

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