Chapter XXXV: Section X: Economic Questions

For six months Germany shall impose no tariff duties higher than the lowest in force in 1914. For wines, oils, vegetable oils, artificial silk, and washed and scoured wool, the restriction obtains for two and a half years more. For five years, unless extended by the League, Germany must give favored-nation clauses treatment to Allied and Associated Powers. She shall impose no customs tariff for five years on goods originating in Alsace-Lorraine and for three years on goods originating in former German territory ceded to Poland, with the right of observation of a similar exception for Luxemburg.

SHIPPING.

Ships of the Allied and Associated Powers shall for five years and thereafter under condition of reciprocity, unless the League otherwise decides, enjoy the same rights in German ports as German vessels, and have most-favored-nation treatment in fishing, coast trade, and towage, even in territorial waters. Ships of a country having no seacoast may be registered at some place within its territory.

UNFAIR COMPETITION.

Germany undertakes to give the trade of the Allied and Associated Powers safeguards against unfair competition, suppressing the use of false wrappings and markings and on condition of reciprocity to respect the laws and judicial decisions of Allied and Associated States in respect of regional appellations of wines and spirits.

TREATMENT OF NATIONALS.

Germany shall impose no exceptional taxes or restrictions upon the nationals of Allied and Associated States for a period of five years, and unless the League acts, for an additional five years German nationality shall not continue to attach to a person who has become a national of an Allied or Associated State.

MULTILATERAL CONVENTIONS.

Some forty multilateral conventions are renewed between Germany and the Allied and Associated Powers, but special conditions are attached to Germany's readmission to several. As to postal and telegraphic conventions Germany must not refuse to make reciprocal agreements with new states.

She must agree, as respects the radiotelegraphic convention, to provisional rules to be communicated to her. In the North Sea fisheries, and North Sea liquor traffic, convention rights of police and inspection over associated fishing boats shall be exercised for at least five years only by vessels of these powers. As to the international railway union, Germany shall adhere to the new convention when formulated. China, as to the Chinese customs tariff arrangement of 1905 regarding Whangpoo and the Boxer indemnity of 1901; France, Portugal, and Rumania as to the Hague Convention of 1903, relating to civil procedure; and Great Britain and the United States as to Article III of the Samoa Treaty of 1899, are relieved of all obligations toward Germany.

BILATERAL TREATIES.

Each Allied and Associated State may renew any treaty with Germany, in so far as is 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 parts of Russia, are abrogated, and concessions granted under pressure by Russia to German subjects are annulled. The Allied and Associated States are to enjoy most-favored-nation treatment under treaties entered into by Germany before August 1, 1914, and during the war.

PREWAR DEBTS.

Clearing houses will be established, one in Germany, and one in each Allied and Associated State for the payment of prewar debts and those from contracts suspended during the war. For adjustment of proceeds of liquidation of enemy property and settlement of other obligations each state participating assumes responsibility for debts owing its nationals, to nationals of enemy states, except in case of prewar insolvency of the debtor. Proceeds of sale of enemy properties in each participating state may be used to pay the debts owed the nationals of that state. Disputes to be settled by the courts of the debtor country.

ENEMY PROPERTY.

Germany shall restore or pay for all enemy property seized or damaged by her, the amount to be fixed by a mixed tribunal. German property within Allied or Associated States may be liquidated as compensation for property of their nationals not paid for by Germany, who will compensate her nationals for such losses.

Prewar contracts between Allied and Associated States--excepting the United States, Japan, and Brazil,--and German nationals are canceled except for debts for accounts already performed.

For the transfer of property, leases of land, mortgages, etc., arbitral tribunals of three members, one from Germany, and one each chosen by Associated States, shall have jurisdiction over all disputes.

INSURANCE.

Fire insurance contracts are not dissolved by the war even if premiums have not been paid, but lapse at the date of the first premium falling due three months after the peace. Life insurance contracts may be restored by payment of accumulated premiums and interest. Marine insurance contracts are dissolved by the outbreak of war except where the risk insured against had already been incurred. Reinsurance contracts are abrogated unless invasion has made it impossible for the reinsured to find another reinsurer. Any Associated or Allied Power may cancel all contracts running between its nationals and a German life insurance company, the latter being obligated to hand over the proportion of the assets attributable to such policies.

INDUSTRIAL PROPERTY.

Rights to industrial, literary, and artistic property are reestablished. Special war measures of the powers are ratified, and the right reserved to impose conditions on the use of German patents and copyrights in the public interest. Except as between the United States and Germany prewar licenses and rights to sue for infringements committed during the war are canceled.