BILATERAL TREATIES
[Sidenote: Renewal of treaties.]
Each allied and a.s.sociated State may renew any treaty with Germany in so far as consistent with the peace treaty by giving notice within six months. Treaties entered into by Germany since August 1, 1914, with other enemy States, and before or since that date with Rumania, Russia, and governments representing parts of Russia are abrogated, and concessions granted under pressure by Russia to German subjects are annulled. The allied and a.s.sociated States are to enjoy most favored nation treatment under treaties entered into by Germany and other enemy States before August 1, 1914, and under treaties entered into by Germany and neutral States during the war.
PRE-WAR DEBTS
[Sidenote: Clearing houses for pre-war debts.]
A system of clearing houses is to be created within three months, one in Germany and one in each allied and a.s.sociated State which adopts the plan for the payment of pre-war debts, including those arising from contracts suspended by the war. For the adjustment of the proceeds of the liquidation of enemy property and the settlement of other obligations each partic.i.p.ating State a.s.sumes responsibility for the payment of all debts owing by its nationals to nationals of the enemy States, except in case of pre-war insolvency of the debtor. The proceeds of the sale of private enemy property in each partic.i.p.ating State may be used to pay the debts owed to the nationals of that State, direct payment from debtor to creditor and all communications relating thereto being prohibited. Disputes may be settled by arbitration by the courts of the debtor country, or by the mixed arbitral tribunal. Any ally or a.s.sociated power may, however, decline to partic.i.p.ate in this system by giving six months" notice.
ENEMY PROPERTY
[Sidenote: Damages for private property seized or injured.]
Germany shall restore or pay for all private enemy property seized or damaged by her, the amount of damages to be fixed by the mixed arbitral tribunal. The allied and a.s.sociated States may liquidate German private property within their territories as compensation for property of their nationals not restored or paid for by Germany. For debts owed to their nationals by German nationals and for other claims against Germany, Germany is to compensate its nationals for such losses and to deliver within six months all doc.u.ments relating to property held by its nationals in allied and a.s.sociated States. All war legislation as to enemy property rights and interests is confirmed and all claims by Germany against the allied or a.s.sociated Governments for acts under exceptional war measures abandoned.
[Sidenote: Pre-war contracts.]
Pre-war contracts between allied and a.s.sociated nationals excepting the United States, j.a.pan, and Brazil and German nationals are cancelled except for debts for accounts already performed.
AGREEMENTS
[Sidenote: Disputes as to transfers of property already made.]
For the transfer of property where the property had already pa.s.sed, leases of land and houses, contracts of mortgages, pledge or lien, mining concessions, contracts with governments and insurance contracts, mixed arbitral tribunals shall be established of three members, one chosen by Germany, one by the a.s.sociated States and the third by agreement, or, failing which, by the President of Switzerland. They shall have jurisdiction over all disputes as to contracts concluded before the present peace treaty.
[Sidenote: Insurance contracts.]
Fire insurance contracts are not considered dissolved by the war, even if premiums have not been paid, but lapse at the date of the first annual premium falling due three months after the peace. Life insurance contracts may be restored by payments of acc.u.mulated premiums with interest, sums falling due on such contracts during the war to be recoverable with interest. Marine insurance contracts are dissolved by the outbreak of war except where the risk insured against had already been incurred. Where the risk had not attached, premiums paid are recoverable, otherwise premiums due and sums due on losses are recoverable. Reinsurance treaties are abrogated unless invasion has made it impossible for the reinsured to find another reinsurer. Any allied or a.s.sociated power, however, may cancel all the contracts running between its nationals and a German life insurance company, the latter being obligated to hand over the proportion of its a.s.sets attributable to such policies.
INDUSTRIAL PROPERTY
[Sidenote: Conditions on use of German patents and copyrights.]
Rights as to industrial, literary, and artistic property are re-established. The special war measures of the allied and a.s.sociated powers are ratified and the right reserved to impose conditions on the use of German patents and copyrights when in the public interest. Except as between the United States and Germany, pre-war licenses and rights to sue for infringements committed during the war are cancelled.
SECTION XI
AERIAL NAVIGATION
[Sidenote: Allied aircraft in German territory.]
Aircraft of the allied and a.s.sociated powers shall have full liberty of pa.s.sage and landing over and in German territory, equal treatment with German planes as to use of German airdromes, and with most favored nation planes as to internal commercial traffic in Germany. Germany agrees to accept allied certificates of nationality, airworthiness, or competency or licenses and to apply the convention relative to aerial navigation concluded between the allied and a.s.sociated powers to her own aircraft over her own territory. These rules apply until 1923, unless Germany has since been admitted to the League of Nations or to the above convention.
SECTION XII.
FREEDOM OF TRANSIT.
[Sidenote: Germany may not discriminate against allied or a.s.sociated powers.]
Germany must grant freedom of transit through her territories by mail or water to persons, goods, ships, carriages, and mails from or to any of the allied or a.s.sociated powers, without customs or transit duties, undue delays, restrictions, or discriminations based on nationality, means of transport, or place of entry or departure. Goods in transit shall be a.s.sured all possible speed of journey, especially perishable goods. Germany may not divert traffic from its normal course in favor of her own transport routes or maintain "control stations" in connection with transmigration traffic. She may not establish any tax discrimination against the ports of allied or a.s.sociated powers; must grant the latter"s seaports all factors and reduced tariffs granted her own or other nationals, and afford the allied and a.s.sociated powers equal rights with those of her own nationals in her ports and waterways, save that she is free to open or close her maritime coasting trade.
FREE ZONES IN PORTS
[Sidenote: Existing free zones to be maintained.]
Free zones existing in German ports on August 1, 1914, must be maintained with due facilities as to warehouses, packing, and shipping, without discrimination, and without charges except for expenses of administration and use. Goods leaving the free zones for consumption in Germany and goods brought into the free zones from Germany shall be subject to the ordinary import and export taxes.
INTERNATIONAL RIVERS.
The Elbe from the junction of the Ultava, the Ultava from Prague, the Oder from Oppa, the Niemen from Grodno, and the Danube from Ulm are declared International, together with their connections.
[Sidenote: Appeal to a special tribunal under international commissions.]
The riparian states must ensure good conditions of navigation within their territories unless a special organization exists therefor.
Otherwise appeal may be had to a special tribunal of the League of Nations, which also may arrange for a general international waterways convention.
The Elbe and the Oder are to be placed under international commissions to meet within three months, that for the Elbe composed of four representatives of Germany, two from Czecho-Slovakia, and one each from Great Britain, France, Italy, and Belgium; and that for the Oder composed of one each from Poland, Russia, Czecho-Slovakia, Great Britain, France, Denmark, and Sweden. If any riparian state on the Niemen should so request of the League of Nations, a similar commission shall be established there. These commissions shall upon request of any riparian state meet within three months to revise existing international agreement.
THE DANUBE.
[Sidenote: Representatives in European Danube Commission.]
The European Danube Commission rea.s.sumes its pre-war powers, but for the time being with representatives of only Great Britain, France, Italy, and Rumania. The upper Danube is to be administered by a new international commission until a definitive statute be drawn up at a conference of the powers nominated by the allied and a.s.sociated governments within one year after the peace.
The enemy governments shall make full reparations for all war damages caused to the European Commission; shall cede their river facilities in surrendered territory, and give Czecho-Slovakia, Serbia, and Rumania any rights necessary on their sh.o.r.es for carrying on improvements in navigation.
THE RHINE AND THE MOSELLE
[Sidenote: The Rhine is under the Central Commission.]
The Rhine is placed under the Central Commission to meet at Stra.s.sbourg within six months after the peace, and to be composed of four representatives of France, which shall in addition select the President, four of Germany, and two each of Great Britain, Italy, Belgium, Switzerland, and the Netherlands. Germany must give France on the course of the Rhine included between the two extreme points of her frontiers all rights to take water to feed ca.n.a.ls, while herself agreeing not to make ca.n.a.ls on the right bank opposite France. She must also hand over to France all her drafts and designs for this part of the river.