SECTION 10.—ECONOMIC CLAUSES

Dominion, Volume 12, Issue 193, 10 May 1919, Page 7

SECTION 10.—ECONOMIC CLAUSES

The Treaty coutains detailed provisions for securing tliat Germany shall not discriminate, directly or indirectly, against the trade of the Allies and associated countries. These provisions will remain in force for fire years, unless extended by the Council of tho Leaguo of Nations. Temporary'provision is made for the free entrance into Germany, up to a limited amount, of tho products of' Alsace-Lorraine, Luxemburg, and tho German territory ceded to. Poland. The German import tariff, applicable at. the outset to Allied goods, will not exceed the lowest rates of 1914. After six months Germany will be freo to raise her tariff, bo long as it is impartially applied to all the Allies, except as regards a few specified artioles, mainly agricultural products, with regard to which the restriction will extend for a further period of 21 years. Power is reserved, in case of necessity, to impose a special Customs regimo in occupied parts. SHIPPING . Vessels of the Allies are to enjoy both national and the "most-favoured-na- ' tion" treatment in Germany for at least live "years, and this provision will continue thereafter on the condition of reciprocity, unless revised by tlio Council of tho League of Nations. As regards fishing, the coasting trade, and towage, the "most-fnvoured-nation" treatment is to be accorded for tho same period as for Customs matters. Provision is made for the recognition by Germany of ships' certificates and the places of registry of ships belonging to States without a' seaport. " UNFAIR COMPETITION Germany undertakes to protect the trade''of the Allies against unfair competition, and, in particular, to suppress the use of false markings and indications of origin, and, on condition of reciprocity, to respect the laws and judicial <le« cisions of the Allied and Associated* States in respect of the national appellations of wines and spirits. TREATMENT OF NATIONALS Germany is.lint to impose on the nationals of Allied States, or their pro. perty. any restrictions which were not in force before the war, or any taxes, unless those, restrictions and taxes are applied to her own nationals. - She is also prevented from imposing restrictions in regard to exercise of occupations, I which are not applicable to all foreigners. These provisions are to be in force for a period of fivo years, and, if a majority of tho Council of the League ot Nations so decides, for an additional period not exceeding live years. German rationality shall not continue to attach to any person who has become a national. of an Allied or Associated State. MULTI-LATERAL CONVENTIONS Some forty multi-lateral Convention. 1 - ara-renewed between Germany and the Allied parties thereto, but special conditions are attached to Germany's readmission to several. For example, as to Postal and Telegraphic Conventions, Germany must not refuse her consent to special'arrangements concluded by the new •States. She must agree, as respects the Radio-Telegraphic Convention, to fulfil the provisional rules to be communicated to her, and to adhere to the new Convention when it is formulated. Under■ the. North Sea Fisheries aiul North Sea Liquor Traffic Conventions, the Tights of inspection and police over Allied fishing boats aro for at least fivo years to be exercised only by vessels of Allied Powers. Germany loses the special- rights granted to her under Article 111 of the Samoa Treaty of 189!), Arid other treaties, and, in particular, is to renounce her right to.the Boxer indemnities,, subsequent to China's entry into the war. 81-LATERAL TREATIES Each Allied State may, if it desires, renew any of its treaties _with Germany in so far as is consistent with the Peace Treaty by giving not.ice within six months. Treaties entered into by Germany since August 1, 1911, with other enemy States, and before, or since then, with Rumania, Russia, or Governments representing parts of the former Russian territory, are abrogated, and the concessions granted under pressure ft) German nationals are annulled. The Allies are to enjoy the privileges conferred under tho treaties entered into by Germany with other enemy States before August 1, 1911, and under the treaties entered into by Germany with a neutral State during the war. PRE-WAR DEBTS Clearing Offices are to be established within three months, in Germany, by each Allied or Associated State which adopts the plan, and the settlement ".it pre-war debts and other specified pecuniary obligations will take place through these offices, direct settlement being .prohibited. ,Tho adjustment of the proceeds . of the liquidation, of enemy property will also bo made through these office#, each participating State to take responsibility for obligations of the'kinds referred to, on tho part of its nationals, towards" tho nationals of opposing States, except in cases Where, at the outbreak of war, the debtor was insolvent. Claims aro to be discussed between the Clearing Offices of the two countries concerned and, failing agreement, aro to bo submitted to arbitration, or to the mixed arbitral tribunal referred to below. Sums duo to nationals of each country aro to be paid by the Clearing Office in that-country, and sum's, owing by such nationals are to be debited to it. Debts are to be paid in the currency of tho Allied country concerned and the Tato of exchange to bo adopted, failing a. specific provision in the contract, is to bo tho average cable transfer rate prevailing in that country during the month immediately preceding the outbreak of war between the country in nuestion and Germany. It is optional with any Allied Power to participate in the'above system.'' ' ENEMY PROPERTY, ..

The'-action of liquidation, control, etc., taken in Allied countries, and in Germany, in regard to enemy property anil business, under exceptional war measures is confined, subject to compensation in respect of lo?s lo properly, clc., of Allied nationals, to bo determined by a mixed arbitral tribunal, and charged upon the properly of German nationals, which is under tiro control of the claimant State. Any compensation due to her own nationals is to be paid Ijt Germany. .All action of liquidation, control, etc.. in Germany is to be stayed, and Allied property, ifnot completely liquidated, is to bo restored. Nationals of countries which did riot make any general liquidation of German, property may require restoration, if possible, of their actual property, by the German Government, in whosoever's hands it may be now. Stipulations are included for the protection of returned property and businesses in Germany in future. The Allies reserve the right to retain and liquidate all German property within their territory, and the net proceeds of the sales of such property, both during and after tho war, are to be credited to Germany, anil applied by encli. State to the satisfaction of claims by ifs nationals, with regard to their properly in Germany, or to debts owing to them by -Germans. CONTRACTS ■ Pre-war contracts between Allied nationals and German nationals are, in general, cancelled, as . from tho date on which the parties become enemies. Exception, is made in tho case of agreements for the transfer of real or personal property, where tho property therein concerned had already passed, of leases of land and houses, of contracts, of mortgage, • pledge,, or lien, of mining concessions, of contracts with Governments and public bodies, and of insurance contracts. In, regard, to tho last-named class of contracts, detailed provision is made as indicated below.

Powers are reserved for tho maintenance of contracts the execution of -which is to -be regarded by an Allied States as in the general interest, subject, if necessary, to the payment of equitable compensation, to be fixed by the mixed arbitral tribunal. Having regard to tho constitutional difficulties in tho case of the United States of America, Brazil, and Japan, these councils are excepted from the provisions relating to pre-war contracts. ~ Fire insurance contracts aro not considered to be dissolved by the war, even if premiums have not been paid, but may lapse at. the date of the first annual premium falling duo three luon.ths after peace. Life insurance contracts are not dissolved merely by reason of tho war, but, where they have lapsed the surrender value may be claimed, or, if the lapse was due to the payment of premium# being prevented by the enforcement of measures of war, the contract may be restored oil the payment of premiums with interest. Marino insurance contract-? are dissolved, by the outbreak of war, except where tho risk had already attached. Where tho same risk was again insured against, after war had begun, the new'policy is to be considered as substituted for the old. Where tho risk had not. attached at the outbreak of war, the premiums paid are recoverable. Insurance treaties, are abrogated, unless invasion has made it impassible for tho reinsurer to find another reinsurance. Any Allied or Associated- Power, however, may cancel all/life insurance contracts runnuig between its nationals and a German insurance or reinsurance company, the latter being obliged to hand over the proportion of its assets attributable to snoh policies. A mixed arbitral tribunal is to be established between each of.-the Allies and Germany, consisting of one memlier appointed by each of the two Governments and a president: to be chosen (failing agreement, by the Council of the Leaguo of Nntions, or until this is set up) by the present President of (he Swiss FederalCouncil. This tribunal is to decide all disputes relating to contracts made before the- date of the Treaty of Peaco between the nationals of the Allied States and the German nationals,-so far as they do . not fall within, the jurisdiction of Allied or Associated or neutral Courts. INDUSTRIAL PROPERTY Eights in industrial, literary, and artistic property are re-established, but subject, in the case of German-owned_ rights, to the effect of the special war measures of the Allies. The right of imposing on German patents and copyrights conditions in the public interest, or to secure the fulfilment of Germany's obligations, is reserved. Extensions of time are given for the accomplishment of formalities for the working of patents, and for securing Tights, under international conventions, except as between the United States of America and Germany. Pre-war licenses are cancelled, subject: to the right of the old licensee to demand a new license, on terms to be specially settled, and, except as between the same countries, the right to sue for infringement committed during the war is not recognised. OPIUM High contracting Powers who had not signed or ratified the Opium Convention of 1012 agreed lo bring it into force. f