Voici en intégral le texte du traité de Versailles, suite 2
The Versailles Treaty
June 28, 1919
The Allied and Associated Powers require, and Germany undertakes, that in part satisfaction
of her obligations expressed in the present Part she will, as hereinafter provided, devote her economic resources directly
to the physical restoration of the invaded areas of the Allied and Associated Powers, to the extent that these Powers
The Allied and Associated Governments may file with the Reparation Commission lists showing:
(a) Animals, machinery, equipment, tools and like articles of a commercial character, which
have been seized, consumed or destroyed by Germany or destroyed in direct consequence of military operations, and which
such Governments, for the purpose of meeting immediate and urgent needs, desire to have replaced by animals and articles
of the same nature which are in being in German territory at the date of the coming into force of the present Treaty;
(b) Reconstruction materials (stones, bricks, refractory bricks, tiles, wood, window-glass,
steel, lime, cement, etc.), 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.
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 December 31,
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.
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, 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 disorganised as to affect adversely the ability of Germany to perform the other acts of reparation stipulated
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 m excess of thirty 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 utilised
in the work of reparation.
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 ensure 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.
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:
(1) 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);
(2) 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);
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.
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 III of
the renewal dated January 16, 1919, of the Armistice.
Germany accords the following options for the delivery of coal and derivatives of coal to the
undermentioned signatories of the present Treaty.
Germany undertakes to deliver to France seven million 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 twenty million tons in any one year of the first five years, and eight million tons in any one
year of the succeeding five years.
It is understood that due diligence will be exercised in the restoration of the destroyed mines
in the Nord and the Pas de Calais.
Germany undertakes to deliver to Belgium eight million tons of coal annually for ten years.
Germany undertakes to deliver to Italy up to the following . quantities of coal:
July 1919 to June 1920 4-1/2 million tons, 1920 1921 6 1921 1922
7-1/2 1922 1923 8 1923 1924 and each of the following five years 8-1/2
At least two-thirds of the actual deliveries to be land-borne.
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.
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 that the pithead price does
not exceed the pithead price of British coal for export. In the 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. German ports, or the British export
price f. o. b. British ports, whichever may be lower.
The Allied and Associated Governments interested may demand the delivery, in place of coal,
of metallurgical coke in the proportion of 3 tons of coke to 4 tons of coal.
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, anthracene, napthalene or pitch
The price paid for coke and for the articles referred to in the preceding paragraph 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.
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 January 1, 1920, and at least 30 days, notice of
deliveries to be made between the coming into force of this Treaty and January 1, 1920. Until Germany has received
the demands referred to in this paragraph, the provisions of the Protocol of DecemberÊ25, 1918, (Execution of
Article VI of the Armistice of November 11, 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 authorised 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.
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.
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 January 1, 1920, and during each period of
six months thereafter until January 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.
For dyestuffs and chemical drugs delivered under paragraph 1 , the price shall be fixed by
the Commission having regard to prewar 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.
[See Map The Former German Cables]
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.
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.
Germany renounces on her own behalf and on behalf of her nationals in favour 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 lat. :2° 30' N.; long.:7° 40' W. of Greenwich: to about lat. :2° 20'
N.; long.:5° 30, W. of Greenwich; and from about lat. :3° 48' N.; long.:0° 00', 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.
Within six months after the 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 1870-1871 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 1870-1871 and all the political papers taken by the German authorities on October 1o, 1870, at the chateau of
Cercay, near Brunoy (Seine-et-Oise) belonging at the time to Mr. Rouher, formerly Minister of State.
Within six months from 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.
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 two great artistic works:
(1) 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;
(2) 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.
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
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 November 11,
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 or river, 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.
Germany confirms the surrender of all material handed over to the Allied and Associated Powers
in accordance with the Armistice of November 11, 1918, and subsequent Armistice Agreements, and recognises 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 VII of the
Armistice of November 11, 1918, or Article III of the Armistice Agreement of January l6, 1919, as well as of any other
material handed over in accordance with the Armistice of November 11, 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
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.
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
(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.
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
Nothing in the foregoing provisions shall prejudice in any manner charges or mortgages lawfully
effected in favour of the Allied or Associated Powers or their nationals respectively, before the date at which a state
of war existed between Germany and the Allied or Associated Power concerned, by the German Empire or its constituent
States, or by German nationals, on assets in their ownership at that date.
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 August 1, 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
A portion of the debt as it stood on August 1, 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.
(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 colonisation
of Poland shall be excluded from the apportionment to be made under Article 254.
(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.
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
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 territories 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 purposes 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.
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 organisations 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.
(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 recognises 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 gold deposit constituted
in the Reichsbank or elsewhere, representing the residue of the advance in gold agreed to on May 5, 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
(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 of November 11, 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 Roumania 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 whatsoever 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 those Powers.
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
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 Mandatory 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
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 favour of the Allied and Associated Powers all such rights and interests which have not been so
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 or Turkey, and, in particular, any claims
which may arise, now or hereafter, from the fulfilment of undertakings made by Germany during the war to those Governments.
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 January 1, 1914.
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 Bleichroder 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 reimbursement shall be effected at the rate of exchange of the day of the deposit.
CUSTOMS REGULATIONS, DUTIES AND RESTRICTIONS.
Germany undertakes that goods the produce or manufacture of any one of the Allied or Associated
States imported into Germany territory, from whatsoever place arriving, shall not be subjected to other or higher duties
or charges (including internal charges) than those to which the like goods the produce or manufacture of any other
such State or of any other foreign country are subject.
Germany will not maintain or impose any prohibition or restriction on the importation into
German territory of any goods the produce or manufacture of the territories of any one of the Allied or Associated
States, from whatsoever place arriving, which shall not equally extend to the importation of the like goods the produce
or manufacture of any other such State or of any other foreign country.
Germany further undertakes that, in the matter of the regime applicable on importation, no
discrimination against the commerce of any of the Allied and Associated States as compared with any other of the said
States or any other foreign country shall be made, even by indirect means, such as customs regulations or procedure,
methods of verification or analysis conditions of payment of duties, tariff classification or interpretation, or the
operation of monopolies.
In all that concerns exportation Germany undertakes that goods, natural products or manufactured
articles, exported from German territory to the territories of any one of the Allied or Associated States shall not
be subjected to other or higher duties or charges (including internal charges) than those paid on the like goods exported
to any other such State or to any other foreign country.
Germany will not maintain or impose any prohibition or restriction on the exportation of any
goods sent from her territory to any one of the Allied or Associated States which shall not equally extend to the exportation
of the like goods, natural products or manufactured articles, sent to any other such State or to any other foreign
Every favour, immunity or privilege in regard to the importation, exportation or transit of
goods granted by Germany to any Allied or Associated State or to any other foreign country whatever shall simultaneously
and unconditionally, without request and without compensation, be extended to all the Allied and Associated States.
The provisions of Articles 264 to 267 inclusive of this Chapter and of Article 323 of Part
XII (Ports, Waterways and Railways) of the present Treaty are subject to the following exceptions:
(a) For a period of five years from the coming into force of the present Treaty, natural or
manufactured products which both originate in and come from the territories of Alsace and Lorraine reunited to France
shall, on importation into German customs territory, be exempt from all customs duty.
The French Government shall fix each year, by decree communicated to the German Government,
the nature and amount of the products which shall enjoy this exemption.
The amount of each product which may be thus sent annually into Germany shall not exceed the
average of the amounts sent annually in the years 1911-1913.
Further, during the period above mentioned the German Government shall allow the free export
from Germany, and the free re-importation into Germany, exempt from all customs duties and other charges (including
internal charges), of yarns, tissues, and other textile materials or textile products of any kind and in any condition,
sent from Germany into the territories of Alsace or Lorraine, to be subjected there to any finishing process, such
as bleaching, dyeing, printing, mercerisation, gassing, twisting or dressing.
(b) During a period of three years from the coming into force of the present Treaty natural
or manufactured products which both originate in and come from Polish territories which before the war were part of
Germany shall, on importation into German customs territory, be exempt from all customs duty.
The Polish Government shall fix each year, by decree communicated to the German Government,
the nature and amount of the products which shall enjoy this exemption.
The amount of each product which may be thus sent annually into Germany shall not exceed the
average of the amounts sent annually in the years 1911-1913.
(c) The Allied and Associated Powers reserve the right to require Germany to accord freedom
from customs duty, on importation into German customs territory, to natural products and manufactured articles which
both originate in and come from the Grand Duchy of Luxemburg, for a period of five years from the coming into force
of the present Treaty.
The nature and amount of the products which shall enjoy the benefits of this regime shall be
communicated each year to the German Government.
The amount of each product which may be thus sent annually into Germany shall not exceed the
average of the amounts sent annually in the years 1911-1913.
During the first six months after the coming into force of the present Treaty, the duties imposed
by Germany on imports from Allied and Associated States shall not be higher than the most favourable duties which were
applied to imports into Germany on July 31, 1914.
During a further period of thirty months after the expiration of the first six months, this
provision shall continue to be applied exclusively with regard to products which, being comprised in Section A of the
First Category of the German Customs Tariff of December 25, 1902, enjoyed at the above-mentioned date (July 31, 1914)
rates conventionalised by treaties with the Allied and Associated Powers, with the addition of all kinds of wine and
vegetable oils, of artificial silk and of washed or scoured wool whether or not they were the subject of special conventions
before July 31, 1914.
The Allied and Associated Powers reserve the right to apply to German territory occupied by
their troops a special customs regime as regards imports and exports, in the event of such a measure being necessary
in their opinion in order to safeguard the economic interests of the population of these territories.
As regards sea fishing, maritime coasting trade, and maritime towage, vessels of the Allied
and Associated Powers shall enjoy, in German territorial waters, the treatment accorded to vessels of the most favoured
Germany agrees that, notwithstanding any stipulation to the contrary contained in the Conventions
relating to the North Sea fisheries and liquor traffic, all rights of inspection and police shall, in the case of fishing-boats
of the Allied Powers, be exercised solely by ships belonging to those Powers.
In the case of vessels of the Allied or Associated Powers, all classes of certificates or documents
relating to the vessel, which were recognised as valid by Germany before the war, or which may hereafter be recognised
as valid by the principal maritime States, shall be recognised by Germany as valid and as equivalent to the corresponding
certificates issued to German vessels.
A similar recognition shall be accorded to the certificates and documents issued to their vessels
by the Governments of new States, whether they have a sea-coast or not, provided that such certificates and documents
shall be issued m conformity with the general practice observed in the principal maritime States.
The High Contracting Parties agree to recognise the flag flown by the vessels of an Allied
or Associated Power having no seacoast which are registered at some one specified place situated in its territory;
such place shall serve as the port of registry of such vessels.
Germany undertakes to adopt all the necessary legislative and administrative measures to protect
goods the produce or manufacture of any one of the Allied and Associated Powers from all forms of unfair competition
in commercial transactions.
Germany undertakes to prohibit and repress by seizure and by other appropriate remedies the
importation, exportation, manufacture, distribution, sale or offering for sale in its territory of all goods bearing
upon themselves or their usual get-up or wrappings any marks, names, devices, or description whatsoever which are calculated
to convey directly or indirectly a false indication of the origin, type, nature, or special characteristics of such
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.
TREATMENT OF NATIONALS OF ALLIED AND ASSOCIATED POWERS.
(a) Not to subject the nationals of the Allied and Associated Powers to any prohibition in
regard to the exercise of occupations, professions, trade and industry, which shall not be equally applicable to all
aliens without exception;
(b) Not to subject the nationals of the Allied and Associated Powers in regard to the rights
referred to in paragraph (a) to any regulation or restriction which might contravene directly or indirectly the stipulations
of the said paragraph, or which shall be other or more disadvantageous than those which are applicable to nationals
of the most favoured nation;
(c) Not to subject the nationals of the Allied and Associated Powers, their property, rights
or interests, including companies and associations In which they are interested, to any charge, tax or impost, direct
or indirect, other or higher than those which are or may be imposed on her own nationals or their property, rights
(d) Not to subject the nationals of any one of the Allied and Associated Powers to any restriction
which was not applicable on July l, 1914, to the nationals of such Powers unless such restriction is likewise imposed
on her own nationals.
The nationals of the Allied and Associated Powers shall enjoy in German territory a constant
protection for their persons and for their property, rights and interests, and shall have free access to the courts
Germany undertakes to recognise any new nationality which has been or may be acquired by her
nationals under the laws of the Allied and Associated Powers and in accordance with the decisions of the competent
authorities of these Powers pursuant to naturalisation laws or under treaty stipulations, and to regard such persons
as having, in consequence of the acquisition of such new nationality, in all respects severed their allegiance to their
country of origin.
The Allied and Associated Powers may appoint consuls-general, consuls, vice-consuls, and consular
agents in German towns and ports. Germany undertakes to approve the designation of the consuls-general, consuls, vice-consuls,
and consular agents, whose names shall be notified to her, and to admit them to the exercise of their functions in
conformity with the usual rules and customs.
The obligations imposed on Germany by Chapter I and by Articles 27l and 272 of Chapter II above
shall cease to have effect five years from the date of the coming into force of the present Treaty, unless otherwise
provided in the text, or unless the Council of the League of Nations shall, at least twelve months before the expiration
of that period, decide that these obligations shall be maintained for a further period with or without amendment.
Article 276 of Chapter IV shall remain in operation, with or without amendment, after the period
of five years for such further period, if any, not exceeding five years, as may be determined by a majority of the
Council of the League of Nations.
If the German Government engages in international trade, it shall not in respect thereof have
or be deemed to have any rights, privileges or immunities of sovereignty.
From the coming into force of the present Treaty and subject to the provisions thereof the
multilateral treaties, conventions and agreements of an economic or technical character enumerated below and in the
subsequent Articles shall alone be applied as between Germany and those of the Allied and Associated Powers party thereto:
(l) Conventions of March l4, 1884, December 1, 1886, and March 23, 1887, and Final Protocol
of July 7, 1887, regarding the protection of submarine cables.
(2) Convention of October 11, 1909, regarding the international circulation of motor-cars.
(3) Agreement of May 15, 1886, regarding the sealing of railway trucks subject to customs inspection,
and Protocol of May 18, 1907.
(4) Agreement of May 15, 1886, regarding the technical standardisation of railways.
(5) Convention of July 5, 1890, regarding the publication of customs tariffs and the organisation
of an International Union for the publication of customs tariffs.
(6) Convention of December 31, 1913, regarding the unification of commercial statistics.
(7) Convention of April 25, 1907, regarding the raising of the Turkish customs tariff.
(8) Convention of March 14, 1857, for the redemption of toll dues on the Sound and Belts.
(9) Convention of June 22, 1861, for the redemption of the Stade Toll on the Elbe.
(10) Convention of July 16, 1863, for the redemption of the toll dues on the Scheldt.
(11) Convention of October 29, 1888, regarding the establishment of a definite arrangement
guaranteeing the free use of the Suez Canal.
(12) Conventions of September 23, 1910, respecting the unification of certain regulations regarding
collisions and salvage at sea.
(13) Convention of December 21, 1904, regarding the exemption of hospital ships from dues and
charges in ports
(14) Convention of February 4, 1898, regarding the tonnage measurement of vessels for inland
(15) Convention of September 26, 1906, for the suppression of nightwork for women.
(16) Convention of September 26, 1906, for the suppression of the use of white phosphorus in
the manufacture of matches.
(17) Conventions of May 18, 1904, and May 4, 1910, regarding the suppression of the White Slave
(18) Convention of May 4, 1910, regarding the suppression of obscene publications.
(19) Sanitary Conventions of January 30, 1892, April l5, l893, April 3, l894, March l9, 1897,
and December 3, 1903.
(20) Convention of May 20, 1875, regarding the unification and improvement of the metric system.
(21) Convention of November 29, 1906, regarding the unification of pharmacopoeial formulae
for potent drugs.
(22) Convention of November 16 and 19, 1885, regarding the establishment of a concert pitch.
(23) Convention of June 7, 1905, regarding the creation of an International Agricultural Institute
(24) Conventions of November 3, 188l, and April l5, l889, regarding precautionary measures
(25) Convention of March 19, l902, regarding the protection of birds useful to agriculture.
(26) Convention of June l2, 1902, as to the protection of minors.
From the coming into force of the present Treaty the High Contracting Parties shall apply the
conventions and agreements hereinafter mentioned, in so far as concerns them, on condition that the special stipulations
contained in this Article are fulfilled by Germany.
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.
International Telegraphic Conventions signed at St. Petersburg July 10, 22, 1875.
Regulations and Tariffs drawn up by the International Telegraphic Conference, Lisbon, June
Germany undertakes not to refuse her assent to the conclusion by the new States of the special
arrangements referred to in the conventions and agreements relating to the Universal Postal Union and to the International
Telegraphic Union, to which the said new States have adhered or may adhere.
From the coming into force of the present Treaty the High Contracting Parties shall apply,
in so far as concerns them, the International Radio-Telegraphic Convention of July S, 1912, on condition that Germany
fulfills the provisional regulations which will be indicated to her by the Allied and Associated Powers.
If within five years after the coming into force of the present Treaty a new convention regulating
international radio-telegraphic communications should have been concluded to take the place of the Convention of July
5, 1912, this new convention shall bind Germany, even if Germany should refuse either to take part in drawing up the
convention, or to subscribe thereto.
This new convention will likewise replace the provisional regulations in force.
From the coming into force of the present Treaty, the High Contracting Parties shall apply
in so far as concerns them and under the conditions stipulated in Article 272, the conventions hereinafter mentioned:
(1) The Conventions of May 6, 1882, and February 1, 1889, regulating the fisheries in the North
Sea outside territorial waters.
(2) The Conventions and Protocols of November 16, 1887, February 14, 1893, and April 11, 1894,
regarding the North Sea liquor traffic.
The International Convention of Paris of March 20, 1883, for the protection of industrial property,
revised at Washington on June 2, 1911; and the International Convention of Berne of September 9, 1886, for the protection
of literary and artistic works, revised at Berlin on November 13, 1908, and completed by the additional Protocol signed
at Berne on March 20, 1914, will again come into effect as from the coming into force of the present Treaty, in so
far as they are not affected or modified by the exceptions and restrictions resulting therefrom.
From the coming into force of the present Treaty the High Contracting Parties shall apply,
in so far as concerns them, the Convention of the Hague of July 17, 1905, relating to civil procedure. This renewal,
however, will not apply to France, Portugal and Roumania.
The special rights and privileges granted to Germany by Article 3 of the Convention of December
2, 1899, relating to Samoa shall be considered to have terminated on August 4, 1914.
Each of the Allied or Associated Powers, being guided by the general principles or special
provisions of the present Treaty, shall notify to Germany the bilateral treaties or conventions which such Allied or
Associated Power wishes to revive with Germany.
The notification referred to in the present Article shall be made either directly or through
the intermediary of another Power. Receipt thereof shall be acknowledged in writing by Germany. The date of the revival
shall be that of the notification.
The Allied and Associated Powers undertake among themselves not to revive with Germany any
conventions or treaties which are not in accordance with the terms of the present Treaty.
The notification shall mention any provisions of the said conventions and treaties which, not
being in accordance with the terms of the present Treaty, shall not be considered as revived.
In case of any difference of opinion, the League of Nations will be called on to decide.
A period of six months from the coming into force of the present Treaty is allowed to the Allied
and Associated Powers within which to make the notification.
Only those bilateral treaties and conventions which have been the subject of such a notification
shall be revived between the Allied and Associated Powers and Germany; all the others are and shall remain abrogated.
The above regulations apply to all bilateral treaties or conventions existing between all the
Allied and Associated Powers signatories to the present Treaty and Germany, even if the said Allied and Associated
Powers have not been in a state of war with Germany.
Germany recognises that all the treaties, conventions or agreements which she has concluded
with Austria, Hungary, Bulgaria or Turkey since August 1, 1914, until the coming into force of the present Treaty are
and remain abrogated by the present Treaty.
Germany undertakes to secure to the Allied and Associated Powers, and to the officials and
nationals of the said Powers, the enjoyment of all the rights and advantages of any kind which she may have granted
to Austria, Hungary, Bulgaria or Turkey, or to the officials and nationals of these States by treaties, conventions
or arrangements concluded before August 1, 1914, so long as those treaties, conventions or arrangements remain in force.
The Allied and Associated Powers reserve the right to accept or not the enjoyment of these
rights and advantages.
Germany recognises that all treaties, conventions or arrangements which she concluded with
Russia, or with any State or Government of which the territory previously formed a part of Russia, or with Roumania,
before August 1, 1914, or after that date until coming into force of the present Treaty, are and remain abrogated.
Should an Allied or Associated Power, Russia, or a State or Government of which the territory
formerly constituted a part of Russia, have been forced since August 1, 1914, by reason of military occupation or by
any other means or for any other cause, to grant or to allow to be granted by the act of any public authority, concessions,
privileges and favours of any kind to Germany or to a German national, such concessions, privileges and favours are
ipso facto annulled by the present Treaty.
No claims or indemnities which may result from this annulment hall be charged against the Allied
or Associated Powers or the Powers, States, Governments or public authorities which are released from their engagements
by the present Article.
From the coming into force of the present Treaty Germany undertakes to give the Allied and
Associated Powers and their nationals the benefit ipso facto of the rights and advantages of any kind which she has
granted by treaties, conventions, or arrangements to nonbelligerent States or their nationals since August 1, 1914,
until the coming into force of the present Treaty, so long as those treaties, conventions or arrangements remain in
Those of the High Contracting Parties who have not yet signed, or who have signed but not yet
ratified, the Opium Convention signed at The Hague on January 23, 1912, agree to bring the said Convention into force,
and for this purpose to enact the necessary legislation without delay and in any case within a period of twelve months
from the coming into force of the present Treaty.
Furthermore, they agree that ratification of the present Treaty should in the case of Powers
which have not yet ratified the Opium Convention be deemed in all respects equivalent to the ratification of that Convention
and to the signature of the Special Protocol which was opened at The Hague in accordance with the resolutions adopted
by the Third Opium Conference in 1914 for bringing the said Convention into force.
For this purpose the Government of the French Republic will communicate to the Government of
the Netherlands a certified copy of the protocol of the deposit of ratifications of the present Treaty, and will invite
the Government of the Netherlands to accept and deposit the said certified copy as if it were a deposit of ratifications
of the Opium Convention and a signature of the Additional Protocol of 1914.
There shall be settled through the intervention of clearing offices to be established by each
of the High Contracting Parties within three months of the notification referred to in paragraph (e) hereafter the
following classes of pecuniary obligations:
(1) Debts payable before the war and due by a national of one of the Contracting Powers, residing
within its territory, to a national of an Opposing Power, residing within its territory;
(2) Debts which became payable during the war to nationals of one Contracting Power residing
within its territory and arose out of transactions or contracts with the nationals of an Opposing Power, resident within
its territory, of which the total or partial execution was suspended on account of the declaration of war;
(3) Interest which has accrued due before and during the war to a national of one of the Contracting
Powers in respect of securities issued by an Opposing Power, provided that the payment of interest on such securities
to the nationals of that Power or to neutrals has not been suspended during the war;
(4) Capital sums which have become payable before and during the war to nationals of one of
the Contracting Powers in respect of securities issued by one of the Opposing Powers, provided that the payment of
such capital sums to nationals of that Power or to neutrals has not been suspended during the war.
The proceeds of liquidation of enemy property, rights and interests mentioned in Section IV
and in the Annex thereto will be accounted for through the Clearing Offices, in the currency and at the rate of exchange
hereinafter provided in paragraph (d), and disposed of by them under the conditions provided by the said Section and
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
(c) The sums due to the nationals of one of the High Contracting Parties by the nationals of
an Opposing State will be debited to the Clearing Office of the country of the debtor, and paid to the creditor by
the Clearing Office of the country of the creditor;
(d) Debts shall be paid or credited in the currency of such one of the Allied and Associated
Powers, their colonies or protectorates, or the British Dominions or India, as may be concerned. If the debts are payable
in some other currency they shall be paid or credited in the currency of the country concerned, whether an Allied or
Associated Power, Colony, Protectorate, British Dominion or India, at the pre-war rate of exchange.
For the purpose of this provision the pre-war rate of exchange shall be defined as the average
cable transfer rate prevailing in the Allied or Associated country concerned during the month immediately preceding
the outbreak of war between the said country concerned and Germany.
If a contract provides for a fixed rate of exchange governing the conversion of the currency
in which the debt is stated into the currency of the Allied or Associated country concerned, then the above provisions
concerning the rate of exchange shall not apply.
In the case of new States the currency in which and the rate of exchange at which debts shall
be paid or credited shall be determined by the Reparation Commission provided for in Part VIII (Reparation);
(e) The provisions of this Article and of the Annex hereto shall not apply as between Germany
on the one hand and any one of the Allied and Associated Powers, their colonies or protectorates, or any one of the
British Dominions or India on the other hand, unless within a period of one month from the deposit of the ratification
of the present Treaty by the Power in question, or of the ratification on behalf of such Dominion or of India, notice
to that effect is given to Germany by the Government of such Allied or Associated Power or of such Dominion or of India
as the case may be;
(f) The Allied and Associated Powers who have adopted this Article and the Annex hereto may
agree between themselves to apply them to their respective nationals established in their territory so far as regards
matters between their nationals and German nationals. In this case the payments made by application of this provision
will be subject to arrangements between the Allied and Associated Clearing Offices concerned.
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.
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
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.
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.
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.
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.
When the whole or part of a debt is not admitted the two Clearing Offices will examine into
the matter jointly and will endeavour to bring the parties to an agreement.
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.
Any person having claimed payment of an enemy debt which is not admitted in whole or in part
shall pay to the clearing office, by way of fine, interest at 5 per cent. on the part not admitted. Any person having
unduly refused to admit the whole or part of a debt claimed from him shall pay, by way of fine, interest at 5 per cent.
on the amount with regard to which his refusal shall be disallowed.
Such interest shall run from the date of expiration of the period provided for in paragraph
7 until the date on which the claim shall have been disallowed or the debt paid.
Each Clearing Office shall in so far as it is concerned take steps to collect the fines above
provided for, and will be responsible if such fines cannot be collected.
The fines will be credited to the other Clearing Office, which shall retain them as a contribution
towards the cost of carrying out the present provisions.
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.
To facilitate discussion between the Clearing Offices each of them shall have a representative
at the place where the other is established.
Except for special reasons all discussions in regard to claims will, so far as possible, take
place at the Debtor Clearing Office.
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.
Each Government will defray the expenses of the Clearing Office set up in its territory, including
the salaries of the staff.
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.
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
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.
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
Where one of the parties concerned appeals against the joint decision of the two Clearing Offices
he shall make a deposit against the costs, which deposit shall only be refunded when the first judgment is modified
in favour of the appellant and in proportion to the success he may attain, his opponent in case of such a refund being
required to pay an equivalent proportion of the costs and expenses. Security accepted by the Tribunal may be substituted
for a deposit.
A fee of 5 per cent. of the amount in dispute shall be charged in respect of all cases brought
before the Tribunal. This fee shall, unless the Tribunal directs otherwise, be borne by the unsuccessful party. Such
fee shall be added to the deposit referred to. It is also independent of the security.
The Tribunal may award to one of the parties a sum in respect of the expenses of the proceedings.
Any sum payable under this paragraph shall be credited to the Clearing Office of the successful
party as a separate item.
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.
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.
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
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.
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.
PROPERTY, RIGHTS AND INTERESTS.
The question of private property, rights and interests in an enemy country shall be settled
according to the principles laid down in this Section and to the provisions of the Annex hereto.
(a) The exceptional war measures and measures of transfer (defined in paragraph 3 of the Annex
hereto) taken by Germany with respect to the property, rights and interests of nationals of Allied or Associated Powers,
including companies and associations in which they are interested, when liquidation has not been completed, shall be
immediately discontinued or stayed and the property, rights and interests concerned restored to their owners, who shall
enjoy full rights therein in accordance with the provisions of Article 298.
(b) Subject to any contrary stipulations which may be provided for in the present Treaty, the
Allied and Associated Powers reserve the right to retain and liquidate all property, rights and interests belonging
at the date of the coming into force of the present Treaty to German nationals, or companies controlled by them, within
their territories, colonies, possessions and protectorates including territories ceded to them by the present Treaty.
The liquidation shall be carried out in accordance with the laws of the Allied or Associated
State concerned, and the German manowners shall not be able to dispose of such property, rights or interests nor to
subject them to any charge without the consent of that State.
German nationals who acquire ipso facto the nationality of an Allied or Associated Power in
accordance with the provisions of the present Treaty will not be considered as German nationals within the meaning
of this paragraph.
(c) The price or the amount of compensation in respect of the exercise of the right referred
to in the preceding paragraph (b) will be fixed in accordance with the methods of sale or valuation adopted by the
laws of the country in which the property has been retained or liquidated.
(d) As between the Allied and Associated Powers or their nationals on the one hand and Germany
or her nationals on the other hand, all the exceptional war measures, or measures of transfer, or acts done or to be
done in execution of such measures as defined in paragraphs 1 and 3 of the Annex hereto shall be considered as final
and binding upon all persons except as regards the reservations laid down in the present Treaty.
(e) The nationals of Allied and Associated Powers shall be entitled to compensation in respect
of damage or injury inflicted upon their property, rights or interests, including any company or association in which
they are interested, in German territory as it existed on August 1, 1914, by the application either of the exceptional
war measures or measures of transfer mentioned in paragraphs 1 and 3 of the Annex hereto. The claims made in this respect
by such nationals shall be investigated, and the total of the compensation shall be determined by the Mixed Arbitral
Tribunal provided for in Section VI or by an Arbitrator appointed by that Tribunal. This compensation shall be borne
by Germany, and may be charged upon the property of German nationals within the territory or under the control of the
claimant's State. This property may be constituted as a pledge for enemy liabilities under the conditions fixed by
paragraph 4 of the Annex hereto. The payment of this compensation may be made by the Allied or Associated State, and
the amount will be debited to Germany.
(f) Whenever a national of an Allied or Associated Power is entitled to property which has
been subjected to a measure of transfer in German territory and expresses a desire for its restitution, his claim for
compensation in accordance with paragraph (6) shall be satisfied by the restitution of the said property if it still
exists in specie.
In such case Germany shall take all necessary steps to restore the evicted owner to the possession
of his property, free from all encumbrances or burdens with which it may have been charged after the liquidation, and
to indemnify all third parties injured by the restitution.
If the restitution provided for in this paragraph cannot be effected, private agreements arranged
by the intermediation of the Powers concerned or the Clearing Offices provided for in the Annex to Section III may
be made, in order to secure that the national of the Allied or Associated Power may secure compensation for the injury
referred to in paragraph (e) by the grant of advantages or equivalents which he agrees to accept in place of the property,
rights or interests of which he was deprived.
Through restitution in accordance with this Article, the price or the amount of compensation
fixed by the application of paragraph (e) will be reduced by the actual value of the property restored, account being
taken of compensation in respect of loss of use or deterioration.
(g) The rights conferred by paragraph (f) are reserved to owners who are nationals of Allied
or Associated Powers within whose territory legislative measures prescribing the general liquidation of enemy property,
rights or interests were not applied before the signature of the Armistice.
(h) Except in cases where, by application of paragraph (f), restitutions in specie have been
made, the net proceeds of sales of enemy property, rights or interests wherever situated carried out either by virtue
of war legislation, or by application of this Article, and in general all cash assets of enemies, shall be dealt with
(1) As regards Powers adopting Section III and the Annex thereto, the said proceeds and cash
assets shall be credited to the Power of which the owner is a national, through the Clearing Office established thereunder;
any credit balance in favour of Germany resulting therefrom shall be dealt with as provided in Article 243.
(2) As regards Powers not adopting Section III and the Annex thereto, the proceeds of the property,
rights and interests, and the cash assets, of the nationals of Allied or Associated Powers held by Germany shall be
paid immediately to the person entitled thereto or to his Government; the proceeds of the property, rights and interests,
and the cash assets, of German nationals received by an Allied or Associated Power shall be subject to disposal by
such Power in accordance with its laws and regulations and may be applied in payment of the claims and debts defined
by this Article or paragraph 4 of the Annex hereto. Any property, rights and interests or proceeds thereof or cash
assets not used as above provided may be retained by the said Allied or Associated Power and if retained the cash value
thereof shall be dealt with as provided in Article 243.
In the case of liquidations effected in new States, which are signatories of the present Treaty
as Allied and Associated Powers, or in States which are not entitled to share in the reparation payments to be made
by Germany, the proceeds of liquidations effected by such States shall, subject to the rights of the Reparation Commission
under the present Treaty, particularly under Articles 235 and 260, be paid direct to the owner. If on the application
of that owner, the Mixed Arbitral Tribunal, provided for by Section VI of this Part, or an arbitrator appointed by
that Tribunal is satisfied that the conditions of the sale or measures taken by the Government of the State in question
outside its general legislation were unfairly prejudicial to the price obtained, they shall have discretion to award
to the owner equitable compensation to be paid by that State.
(i) Germany undertakes to compensate her nationals in respect of the sale or retention of their
property, rights or interests in Allied or Associated States.
(j) The amount of all taxes and imposts upon capital levied or to be levied by Germany on the
property, rights and interests of the nationals of the Allied or Associated Powers from November 11, 1918, until three
months from the coming into force of the present Treaty, or, in the case of property, rights or interests which have
been subjected to exceptional measures of war, until restitution in accordance with the present Treaty, shall be restored
to the owners.
Germany undertakes, with regard to the property, rights and interests, including companies
and associations in which they were interested, restored to nationals of Allied and Associated Powers in accordance
with the provisions of Article 297, paragraph (a) or (f):
(a) to restore and maintain, except as expressly provided in the present Treaty, the property,
rights and interests of the nationals of Allied or Associated Powers in the legal position obtaining in respect of
the property, rights and interests of German nationals under the laws in force before the war;
(b) not to subject the property, rights or interests of the nationals of the Allied or Associated
Powers to any measures in derogation of property rights which are not applied equally to the property, rights and interests
of German nationals, and to pay adequate compensation in the event of the application of these measures.
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
The provisions of this paragraph do not apply to such of the above-mentioned measures as have
been taken by the German authorities in invaded or occupied territory, nor to such of the above mentioned measures
as have been taken by Germany or the German authorities since November 11, 1918, all of which shall be void.
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.
In Article 297 and this Annex the expression "exceptional war measures" includes
measures of all kinds, legislative administrative, judicial or others, that have been taken or will be taken hereafter
with regard to enemy property, and which have had or will have the effect of removing from the proprietors the power
of disposition over their property, though without affecting the ownership, such as measures of supervision, of compulsory
administration, and of sequestration; or measures which have had or will have as an object the seizure of, the use
of, or the interference with enemy assets, for whatsoever motive, under whatsoever form or in whatsoever place. Acts
in the-execution of these measures include all detentions, instructions, orders or decrees of Government departments
or courts applying these measures to enemy property, as well as acts performed by any person connected with the administration
or the supervision of enemy property, such as the payment of debts, the collecting of credits, the payment of any costs,
charges or expenses, or the collecting of fees.
Measures of transfer are those which have affected or will affect the ownership of enemy property
by transferring it in whole or in part to a person other than the enemy owner, and without his consent, such as measures
directing the sale, liquidation, or devolution of ownership in enemy property, or the cancelling of titles or securities.
All property, rights and interests of German nationals within the territory of any Allied or
Associated Power and the net proceeds of their sale, liquidation or other dealing therewith may be charged by that
Allied or Associated Power in the first place with payment of amounts due in respect of claims by the nationals of
that Allied or Associated Power with regard to their property, rights and interests, including companies and associations
in which they are interested, in German territory, or debts owing to them by German nationals, and with payment of
claims growing out of acts committed by the German Government or by any German authorities since July 31, 1914, and
before that Allied or Associated Power entered into the war. The amount of such claims may be assessed by an arbitrator
appointed by Mr. Gustave Ador, if he is willing, or if no such appointment is made by him, by an arbitrator appointed
by the Mixed Arbitral Tribunal provided for in Section VI. They may be charged in the second place with payment of
the amounts due in respect of claims by the nationals of such Allied or Associated Power with regard to their property,
rights and interests in the territory of other enemy Powers, in so far as those claims are otherwise unsatisfied.
Notwithstanding the provisions of Article 297, where immediately before the outbreak of war
a company incorporated in an Allied or Associated State had rights in common with a company controlled by it and incorporated
in Germany to the use of trademarks in third countries, or enjoyed the use in common with such company of unique means
of reproduction of goods or articles for sale in third countries, the former company shall alone have the right to
use these trade-marks in third countries to the exclusion of the German company, and these unique means of reproduction
shall be handed over to the former company, notwithstanding any action taken under German war legislation with regard
to the latter company or its business, industrial property or shares. Nevertheless, the former company, if requested,
shall deliver the latter company derivative copies permitting the continuation of reproduction of articles for use
within German territory.
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.
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,
The restitution provided in Article 297 will be carried out by order of the German Government
or of the authorities which have been substituted for it. Detailed accounts of the action of administrators shall be
furnished to the interested persons by the German authorities upon request, which may be made at any time after the
coming into force of the present Treaty.
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.
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.
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.
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.
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.
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.
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
CONTRACTS, PRESCRIPTIONS, JUDGMENTS.
(a) Any contract concluded between enemies shall be regarded as having been dissolved as from
the time when any two of the parties became enemies, except in respect of any debt or other pecuniary obligation arising
out of any act done or money paid thereunder, and subject to the exceptions and special rules with regard to particular
contracts or classes of contracts contained herein or in the Annex hereto.
(b) Any contract of which the execution shall be required in the general interest, within six
months from the date of the coming into force of the present Treaty, by the Allied or Associated Governments of which
one of the parties is a national, shall be excepted from dissolution under this Article.
When the execution of the contract thus kept alive would owing to the alteration of trade conditions,
cause one of the parties substantial prejudice the Mixed Arbitral Tribunal provided for by Section VI shall be empowered
to grant to the prejudiced party equitable compensation.
(c) Having regard to the provisions of the constitution and law of the United States of America,
of Brazil, and of Japan, neither the present Article, nor Article 300, nor the Annex hereto shall apply to contracts
made between nationals of these States and German nationals; nor shall Article 305 apply to the United States of America
or its nationals.
(d) The present Article and the annex hereto shall not apply to contracts the parties to which
became enemies by reason of one of them being an inhabitant of territory of which the sovereignty has been transferred,
if such party shall acquire under the present Treaty the nationality of an Allied or Associated Power, nor shall they
apply to contracts between nationals of the Allied and Associated Powers between whom trading has been prohibited by
reason of one of the parties being in Allied or Associated territory in the occupation of the enemy.
(e) Nothing in the present Article or the annex hereto shall be deemed to invalidate a transaction
lawfully carried out in accordance with a contract between enemies if it has been carried out with the authority of
one of the belligerent Powers.
(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.
As between enemies no negotiable instrument made before the war shall be deemed to have become
invalid by reason only of failure within the required time to present the instrument for acceptance or payment or to
give notice of non-acceptance or nonpayment to drawers or indorsers or to protest the instrument, nor by reason of
failure to complete any formality during the war.
Where the period within which a negotiable instrument should have been presented for acceptance
or for payment, or within which notice of non-acceptance or non-payment should have been given to the drawer or indorser,
or within which the instrument should have been protested, has elapsed during the war, and the party who should have
presented or protested the instrument or have given notice of non-acceptance or non-payment has failed to do so during
the war, a period of not less than three months from the coming into force of the present Treaty shall be allowed within
which presentation, notice of non-acceptance or nonpayment or protest may be made.
Judgments given by the Courts of an Allied or Associated Power in all cases which, under the
present Treaty, they are competent to decide, shall be recognised in Germany as final, and shall be enforced without
it being necessary to have them declared executory.
If a judgment in respect to any dispute which may have arisen has been given during the war
by a German Court against a national of an Allied or Associated State in a case in which he was not able to make his
defence, the Allied and Associated national who has suffered prejudice thereby shall be entitled to recover compensation,
to be fixed by the Mixed Arbitral Tribunal provided for in Section VI.
At the instance of the national of the Allied or Associated Power the compensation above-mentioned
may, upon order to that effect of the Mixed Arbitral Tribunal, be effected where it is possible by replacing the parties
in the situation which they occupied before the judgment was given by the German Court.
The above compensation may likewise be obtained before the Mixed Arbitral Tribunal by the nationals
of Allied or Associated Powers who have suffered prejudice by judicial measures taken in invaded or occupied territories,
if they have not been otherwise compensated.
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.
I. General Provisions.
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.
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
(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.
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.
(a) Rules made during the war by any recognised Exchange or Commercial Association providing
for the closure of contracts entered into before the war by an enemy are confirmed by the High Contracting Parties,
as also any action taken thereunder, provided:
(1) That the contract was expressed to be made subject to the rules of the Exchange or Association
(2) That the rules applied to all persons concerned;
(3) That the conditions attaching to the closure were fair and reasonable.
(b) The preceding paragraph shall not apply to rules made during the occupation by Exchanges
or Commercial Associations in the districts occupied by the enemy.
(c) The closure of contracts relating to cotton "futures", which were closed as on
July 31, 1914, under the decision of the Liverpool Cotton Association, is also confirmed.
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.
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.
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.
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.
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.
Where by administrative or legislative action an insurance against fire effected before the
war has been transferred during the war from the original to another insurer, the transfer will be recognised and the
liability of the original insurer will be deemed to have ceased as from the date of the transfer. The original insurer
will, however, be entitled to receive on demand full information as to the terms of the transfer, and if it should
appear that these terms were not equitable they shall be amended so far as may be necessary to render them equitable.
Furthermore, the insured shall, subject to the concurrence of the original insurer, be entitled
to retransfer the contract to the original insurer as from the date of the demand.
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
Any sum which during the war became due upon a contract deemed not to have been dissolved under
the preceding provision shall be recoverable after the war with the addition of interest at five per cent. per annum
from the date of its becoming due up to the day of payment.
Where the contract has lapsed during the war owing to nonpayment of premiums, or has become
void from breach of the conditions of the contract, the assured or his representatives or the person entitled shall
have the right at any time within twelve months of the coming into force of the present Treaty to claim from the insurer
the surrender value of the policy at the date of its lapse or avoidance.
Where the contract has lapsed during the war owing to nonpayment of premiums the payment of
which has been prevented by the enforcement of measures of war, the assured or his representative or the persons entitled
shall have the right to restore the contract on payment of the premiums with interest at five per cent. per annum within
three months from the coming into force of the present Treaty.
Any Allied or Associated Power may within three months of the coming into force of the present
Treaty cancel all the contracts of insurance running between a German insurance company and its nationals under conditions
which shall protect its nationals from any prejudice.
To this end the German insurance company will hand over to the Allied or Associated Government
concerned the proportion of its assets attributable to the policies so cancelled and will be relieved from all liability
in respect of such policies. The assets to be handed over shall be determined by an actuary appointed by the Mixed
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.
In any case where by the law applicable to the contract the insurer remains bound by the contract
notwithstanding the nonpayment of premiums until notice is given to the insured of the termination of the contract,
he shall be entitled where the giving of such notice was prevented by the war to recover the unpaid premiums with interest
at five per cent. per annum from the insured.
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.
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.
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.
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.
Contracts of insurance entered into before the war between an insurer and a person who subsequently
became an enemy, other than contracts dealt with in paragraphs g to 18, shall be treated in all respects on the same
footing as contracts of fire insurance between the same persons would be dealt with under the said paragraphs.
All treaties of re-insurance with a person who became an enemy shall be regarded as having
been abrogated by the person becoming an enemy, but without prejudice in the case of life or marine risks which had
attached before the war to the right to recover payment after the war for sums due in respect of such risks.
Nevertheless if, owing to invasion, it has been impossible for the re-insured to find another
re-insurer, the treaty shall remain in force until three months after the coming into force of the present Treaty.
Where a re-insurance treaty becomes void under this paragraph, there shall be an adjustment
of accounts between the parties in respect both of premiums paid and payable and of liabilities for losses in respect
of life or marine risks which had attached before the war. In the case of risks other than those mentioned in paragraphs
11 to 18 the adjustment of accounts shall be made as at the date of the parties becoming enemies without regard to
claims for losses which may have occurred since that date.
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.
Re-insurance of life risks effected by particular contracts and not under any general treaty
remain in force.
The provisions of paragraph 12 apply to treaties of re-insurance of life insurance contracts
in which enemy companies are the reinsurers.
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.
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.
MIXED ARBITRAL TRIBUNAL.
(a) Within three months from the date of the coming into force of the present Treaty, a Mixed
Arbitral Tribunal shall be established between each of the Allied and Associated Powers on the one hand and Germany
on the other hand. Each such Tribunal shall consist of three members. Each of the Governments concerned shall appoint
one of these members. The President shall be chosen by agreement between the two Governments concerned.
In case of failure to reach agreement, the President of the Tribunal and two other persons,
either of whom may in case of need take his place, shall be chosen by the Council of the League of Nations, or, until
this is set up, by M. Gustave Ador if he is willing. These persons shall be nationals of Powers that have remained
neutral during the war.
If any Government does not proceed within a period of one month in case there is a vacancy
to appoint a member of the Tribunal, such member shall be chosen by the other Government from the two persons mentioned
above other than the President.
The decision of the majority of the members of the Tribunal shall be the decision of the Tribunal.
(b) The Mixed Arbitral Tribunals established pursuant to paragraph (a), shall decide all questions
within their competence under Sections III, IV, V and VII.
In addition, all questions, whatsoever their nature, relating to contracts concluded before
the coming into force of the present Treaty between nationals of the Allied and Associated Powers and German nationals
shall be decided by the Mixed Arbitral Tribunal, always excepting questions which, under the laws of the Allied, Associated
or Neutral Powers, are within the jurisdiction of the National Courts of those Powers. Such questions shall be decided
by the National Courts in question, to the exclusion of the Mixed Arbitral Tribunal. The party who is a national of
an Allied or Associated Power may nevertheless bring the case before the Mixed Arbitral Tribunal if this is not prohibited
by the laws of his country.
(c) If the number of cases justifies it, additional members shall be appointed and each Mixed
Arbitral Tribunal shall sit in divisions. Each of these divisions will be constituted as above.
(d) Each Mixed Arbitral Tribunal will settle its own procedure except in so far as it is provided
in the following Annex, and is empowered to award the sums to be paid by the loser in respect of the costs and expenses
of the proceedings.
(e) Each Government will pay the remuneration of the member of the Mixed Arbitral Tribunal
appointed by it and of any agent whom it may appoint to represent it before the Tribunal. The remuneration of the President
will be determined by special agreement between the Governments concerned; and this remuneration and the joint expenses
of each Tribunal will be paid by the two Governments in equal moieties.
(f) The High Contracting Parties agree that their courts and authorities shall render to the
Mixed Arbitral Tribunals direct all the assistance in their power, particularly as regards transmitting notices and
(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.
Should one of the members of the Tribunal either die, retire, or be unable for any reason whatever
to discharge his function, the same procedure will be followed for filling the vacancy as was followed for appointing
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.
The agent and counsel of the parties on each side are authorised to present orally and in writing
to the Tribunal arguments in Support or in defence of each case.
The Tribunal shall keep record of the questions and cases submitted and the proceedings thereon,
with the dates of such proceedings.
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.
The Tribunal shall decide all questions and matters submitted upon such evidence and information
as may be furnished by the parties concerned.
Germany agrees to give the Tribunal all facilities and information required by it for carrying
out its investigations.
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.
The place and time for the meetings of each Tribunal shall be determined by the President of
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.
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