ECONOMIC CLAUSES

New Zealand Times, Volume XLIV, Issue 10276, 10 May 1919, Page 7

ECONOMIC CLAUSES

SEijridH-X

CtJ^TOMS

The Treaty contains detailed provisions for securing that Germany shall not discriminate, -directly or indirectly, afCiLinst the tradd of the Allies and associated- countries These provisions will-remain’in force for five years, unextended by the Council of the League of Nations. Temporary provision is made for the free entrance into Germany, np to a limited amount, of the products of Alsace-Lorraine, Luxemburg, and the German territory ceded to Poland. • The German import tariff, applicable, at the outset to Allied goods, will (-hot exceed the lowest rates, of 1914, : After, six months Germany will be-Tree to raise her tariff, so long as it is - impartially applied to all the Allies, except as regards a few specified articles, mainly agricultural products, with regard to which the restrictions will extend for a further period of two aid a-half years. Power is reserved, in the case of necessity, to impose a special Customs regime in occupied parts,'* SHIPPING.. Vessels of the Allies are to enjoy both national, and the “most-favoured-nation” treatment in Germany for at least five years, and this provision will continue thereafter on the condition of reciprocity, unless revised by the Council of the League of Nations. As regards fishing, the coasting trade, and towage, the “most-favoured-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 placea of registry of ships, belonging to States without a seaboard. UNFAIR COMFETTTXOM.

Germany undertakes to protect the trade of the Allies against unfair competition, and, in particular, to suppress the uso;of false markings and indications 1 of origin, and, on condition ot reciprocity, to respect the laws and judicial decisions of the Allied and associated States in respect of the national, appellation of wines and spirits. TREATMENT of nationals. Germany is not to impose on the nationals of Allied States, or their property, any restrictions which were not-in force -before the war, or any taxes, unless those restrictions and taxes are applied to her own nationals. Sub is also prevented from imposing 'restrictions in regard to exercise ot occupations, which are not applicable to all foreigners. Those provisions are to be in force for a period of five •years, and, if a majority of the Countsu or the League of Nations so decides. For an additional period not exceeding five years. German nationality shall not.continue to attach to any person' Vho has become a national of an Allied W associated State.

MULTI-LATERAL CONVENTION. Some forty multi-lateral Conventions ire renewed between Germany and tlio Allied parties thereto, but special

conditions are attached to Germany's readmission to several. For example, as to tho Postal and Telegraphic Conventions, Germany must not refuse her consent to special arrangements concluded by the new States. She must agree, as respects the RadioTelegraphic Convention, to fulfil the provisional rules to be communicated to her, and to adhere to the new Convention, when it is formulated. Under tho North Sea Fisheries and North Sea Liquor Traffic Conventions, the rights of inspection and police over Allied fishing boats are for at least five years to be exercised only by vessels of Allied Powers.

Germany loses tho special rights granted to her under Articles 111. ot the Samoa Treaty 0f.1899, and other treaties and, in particular, is to renounce her right to the Boxer indemnities, subsequent to China's entry into the war. BILATERAL TREATIES. Each Allied State may, if it desires, renew any ot its treaties with Germany m so far as is consistent with tho Peace treaty, by giving notice, within sis months. Treaties entered into by Germany since August Ist, 1914, with other enemy States, and before, or since then, mth Koumania, Russia, pr Governments lepresenting parts of the former Russian territory, are abrogated, and tho concessions granted under pressure to German nationals are annulled. The Allies are to enjoy the privileges conferred under the treaties entered into by Germany with other eneniv States before August Ist, 1914, and under the ti eaties entered into by Germany with •' i neutral State during the war. PRE-WAR DEBTS. Clearing offices are to b,e established wi.-hiu three months, in Germany, by each Allied or associated State whicn adopts tho plan, and the settlement of pre-war debts and other specified pecuniary obligations will take place through these offices;;direct settlement being prohibited. -,5 The-; 'adjustment of the proceeds of ’ the liquidation of enemy property ■'will 'also be' made 'through these offices, each participating State to take responsibility for the obligations of the kinds referred to, on the part of its nationals, towards tho nationals of opposing States except in cases where, at the outbreak of war the debtor was insolvent. Claims are to be discussed between the clearing offices of the two countries concerned ; and*, failing agreement; 'to arbitration, or to the mixed arbitral tribunal referred to below. Sums due to nationals of each country are to be paid by the Clearing Office in that country, and sums owing by su,oh nationals are to be debited to it. Debts are to be paid in the currency, of the Allied country concerned, and the rate, of exchange to be adopted, failing a specific 5/rorisioif in the. contract, is to bo tho

average cabfe_tracer.'rate prevailing in that country during the month immediately preceding- the 'outbreak of war between tho country, in question 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 and business', under exceptional war measures, is confined, subject to compensation in respect of loss of property, etc., of Allied nationals, to be determined by a mixed arbitral tribunal, and charged upon the property of German nationals, which is under the control of the claimant State. Any compensation due to her own nationals is to be paid by Germany. , All action of liquidation, control; etc.,, in Germany is to be stayed, and Allied property, if not completely liquidated, is to be restored. Nationals of countries which did not make any general liquidation of German property may require restoration, if possible,’ of their actual property, by the German Government, in whosoover’s hands it may now be. 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 Gorman property within their territory, and the net proceeds of tho sales of such property, both during and after the war, are to be credited to Germany and applied by each State to the satisfaction of claims by its nationals, with regard to their property 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 the date on which the parties became enemies. Exception is made in the case of agreements for the transfer of real or personal property, where the property therein- concerned had already passed, of leases of land and houses, of contracts of mortgage, pledge or lien, of raining concessions, of contracts with Governments and public bodies, and of insurance contracts. In regard tp the lastnamed clause of contracts, detailed provision is made as indicated below. Powers are reserved for the maintenance of contracts, the execution of which is to he regarded by an, Allied State as in the general interest, subject, if necessary, to tho payment of equitable compensation, to be fixed by tho mixed arbitral tribunal. Having regard to tho constitutional difficulties, in tho case of tho United States of America, Brazil, and Japan, these councils are excepted from tho provisions relating to pre-war contracts. Firo insurance contracts are not considered to be dissolved by -the war. even if premiums have not been paid, but may lapse at tho date of tho first annual premium falling due throe months after Peace. Life insurance contracts are not dissolved merely by reason of the war, but where they have lapsed the surrender value may be claimed, or, if the lapse was duo to the payment of premiums being proven fed by the enforcement of measures of war, the contract may bo, restored on the payment of premiums with interest. Marine insurance contracts are dissolved by the

outbreak of war, except where the risk had already attached. AVhere the same risk was again insured against, after war had begun, tho new policy is to bo considered as substituted for tho old. Where the risk had not attached at the outbreak of war, the premiums paid are recoverable. Insurance treaties are abrogated, unless, invasion has made it impossible for tho ro-iusurer to find another re-insurance. Any Allied or associated Power, however, may cancel all life insurance contracts running between its nationals and a German insurance or re-insurance company, the latter being obliged to hand over tire proportion of its assets attributable to such policies. A mixed arbitral tribunal is to be established between each of the Allies and Germany, consisting of one member appointed by each of tho two Governments and a' president to ho chosen (failing agreement by tho Council of tho League of Nations, or until this is set up), by the present President of the Swiss Federal Council. This tribunal is to decide all disputes relating to contracts made before the date of the Treatv uf Peace between the nationals of the Allied States an? the German nationals, so far as they do not fall within the jurisdiction of Allied or associated or neutral courts. INDUSTRIAL PROPERTY.

Rights in industrial, literary, and artistic property ate re-established, but subject, in the case of German-owned rignts, to the effect of the special war measures of tho Allies. The right of imposing on German patents and copyrights conditions in tho 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 rights, under international conventions, except as between the United States of America and Germany. Pre-war licenses aro cancelled subject to the right of the old licensee to demand a new license, on terms to he specially settled, and, except as between the same countries, the right to sue for infringement committed during the war is not recognised. OPIUM. Higlf contracting Powers who had not -ioned or ratified the Opium Convention of 1913 agreed to bring it into force.