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. Note to X, 297 (h) (2)

For an interpretation of this section by the Department of State with respect to proposed Haitian legislation, see Foreign Relations, 1921, п, 234.

For the states entitled to share in reparation, see note under article 233.

See article 260 for the relation of liquidations under its terms to the application of this provision. The rule was applied on March 4, 1922 to Czechoslovakia and Poland.

(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.

Note to X, 297 (j)

The Conference of Ambassadors on March 26, 1924 decided to represent to Germany that its legislation on clearing offices violated this provision.

Note to X, 297, in toto

German estimates of the transfers of values required by the economic provisions of part X were large. In pre-war currency the costs of liquidating property, rights, and interests were said to reach 8,000,000,000 marks and the Russian holdings relinquished were set at 1,500,000,000 marks. Germany made much of a reputed depreciation of 1,500,000,000 marks in values of property, rights, and interests because of the liquidations required by the treaty.

Note to X, 297, in toto-Continued

French and German Bureaus of Private Property and Interests were established for liquidation and restitution by an exchange of notes effected at Berlin, March 20-25, 1920 (1 League of Nations Treaty Series, p. 347). The notes gave effect to resolutions of a Franco-German commission dated February 6, 1920.

Claims of Liberia were filed at $3,977,877.92 and were settled on May 5, 1930 for £29,121 15s. 10/2d. by retention of all German property liquidated by Liberia; out of the proceeds of this property £9,410 10s. 3d. had been allocated to meet Liberian claims under part X, section IV, annex, paragraph 4.

An agreement between Germany and Portugal signed at Lisbon, June 29, 1936 and in force December 18 released German property, rights, and interests from the further operation of articles 297, 300 (a), 301, and 306 (Reichsgesetzblatt, 1937, 11, 8).

Note to X, 297, in toto- Continued

COMPENSATION IN RESPECT OF PROPERTY, RIGHTS AND INTERESTS,

AS AT MARCH 31, 1932 1

1 Adapted from United Kingdom, 12th Annual Report of the Controller of the Clearing Office, 14 (51-22-0-32).

31,010

66,000,000

Fcs. 2,665,410,098

Ticals 4,089,266

ARTICLE 298.

Germany undertakes, with regard to the property, rights and interests, including companies and associations in which they were interested, restored to nationals of Allied and Associated Powers in accordance with the provisions of Article 297, paragraph (a) or (f):

(a) to restore and maintain, except as expressly provided in the present Treaty, the property, rights and interests of the nationals of Allied or Associated Powers in the legal position obtaining in respect of the property, rights and interests of German nationals under the laws in force before the war;

(b) not to subject the property, rights or interests of the nationals of the Allied or Associated Powers to any measures in derogation of property rights which are not applied equally to the property, rights and interests of German nationals, and to pay adequate compensation in the event of the application of these measures. Note to X, 298

The Reparation Commission denied on February 25, 1925 a claim of the German Government to credit its payments to German nationals under articles 260 or 297 to the annuities of the Experts' (Dawes) Plan. They did not, thought the commission, constitute payments emanating from Germany considered as an economic entity nor payments representing an economic advantage during the period of the plan to an Allied or Associated Government or national. Readjustments of the national German economy between that government and its nationals were not to be credited.

ANNEX.
1.

In accordance with the provisions of Article 297, paragraph (a), 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, direc-| tion, decision, or instruction. No question shall be raised as to the regularity of a transfer of any property, rights or interests dealt with in pursuance of any such order, direction, decision or instruction. Every action taken with regard to any property, business, or company, whether as regards its investigation, sequestration, compulsory administration, use, requisition, supervision, or winding up, the sale or management of property, rights or interests, the collection or discharge of debts, the payment of costs, charges or expenses, or any other matter whatsoever, in pursuance of orders, directions, decisions, or instructions of any court or of any department of the Government of any of the High Contracting Parties, made or given, or purporting to be made or given, in pursuance of war legislation with regard to enemy property, rights or interests, is confirmed. Provided that the provisions of this paragraph shall not be held to prejudice the titles to property heretofore acquired in good faith and for value and in accordance with the laws of the country in which the property is situated by nationals of the Allied and Associated Powers.

The provisions of this paragraph do not apply to such of the above-mentioned measures as have been taken by the German authorities in invaded or occupied territory, nor to such of the above mentioned measures as have been taken by Germany or the German authorities since November 11, 1918, all of which shall be void.

Text of May 7:

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.

2.

No claim or action shall be made or brought against any Allied or Associated Power or against any person acting on behalf of or under the direction of any legal authority or Department of the Government of such a Power by Germany or by any German national wherever resident in respect of any act or omission with regard to his property, rights or interests during the war or in preparation for the war. Similarly no claim or action shall be made or brought against any person in respect of any act or omission under or in accordance with the exceptional war measures, laws or regulations of any Allied or Associated Power.