Treaty of Sevres (full text)

[Hovik]

CHAPTER VI.

ARMAMENT, MUNITIONS AND MATERIAL

ARTICLE 171 .

On the expiration of six months from the coming into force of the
present Treaty, the armament which may be in use or held in reserve
for replacement in the various formations of the Turkish armed force
shall not exceed the figures fixed per thousand men in Table III
annexed to this Section.

ARTICLE 172

The stock of munitions at the disposal of Turkey shall not exceed the
amounts fixed in Table III annexed to this Section.

ARTICLE 173.

Within six months from the coming into force of the present Treaty all
existing arms, munitions of the various categories and war material in
excess of the quantities authorised shall be handed over to the
Military Inter-Allied Commission of Control provided for in Article
200 in such places as shall be appointed by this Commission.

The Principal Allied Powers will decide what is to be done with this
material.

ARTICLE 174.

The manufacture of arms, munitions and war material, including
aircraft and parts of aircraft of every description, shall take place
only in the factories or establishments authorised by the Inter-Allied
Commission referred to in Article 200.

Within six months from the coming into force of the present Treaty all
other establishments for the manufacture, preparation, storage or
design of arms, munitions or any war material shall be abolished or
converted to purely commercial uses.

The same will apply to all arsenals other than those utilised as
depots for the authorised stocks of munitions.

The plant of establishments or arsenals in excess of that required for
the authorised manufacture shall be rendered useless or converted to
purely commercial uses, in accordance with the decisions of the
Military Inter-Allied Commission of Control referred to in Article
200.

ARTICLE 175

The importation into Turkey of arms, munitions and war materials,
including aircraft and parts of aircraft of every description, is
strictly forbidden, except with the special authority of the
Inter-Allied Commission referred to in Article 200.

The manufacture for foreign countries and the exportation of arms,
munitions and war material of any description is also forbidden.

ARTICLE 176.

The use of flame-throwers, asphyxiating, poisonous or other gases and
all similar liquids, materials or processes being forbidden, their
manufacture and importation are strictly forbidden in Turkey.

Material specially intended for the manufacture, storage or use of the
said products or processes is equally forbidden.

The manufacture and importation into Turkey of armoured cars, tanks or
any other similar machines suitable for use in war are equally
forbidden.

CHAPTER VII.

FORTIFICATIONS

ARTICLE 177.

In the zone of the Straits and islands referred to in Article 178 the
fortifications will be disarmed and demolished as provided in that
Article.

Outside this zone, and subject to the provisions of Article 89, the
existing fortified works may be preserved in their present condition,
but will be disarmed within the same period of three months.

CHAPTER VIII.

MAINTENANCE OF THE FREEDOM OF THE STRAITS

ARTICLE 178.

For the purpose of guaranteeing the freedom of the Straits, the High
Contracting Parties agree to the following provisions:

(I) Within three months from the coming into force of the present
Treaty, all works, fortifications and batteries within the zone
defined in Article 179 and comprising the coast and islands of the Sea
of Marmora and the coast of the Straits, also those in the Islands of
Lemnos, Imbros, Samothrace, Tenedos and Mitylene, shall be disarmed
and demolished.

The reconstruction of these works and the construction of similar
works are forbidden in the above zone and islands. France, Great
Britain and Italy shall have the right to prepare for demolition any
existing roads and railways in the said zone and in the islands of
Lemnos, Imbros, Samothrace, and Tenedos which allow of the rapid
transport of mobile batteries, the construction there of such roads
and railways remaining forbidden.

In the islands of Lemnos, Imbros, Samothrace and Tenedos the
construction of new roads or railways must not be undertaken except
with the authority of the three Powers mentioned above.

(2) The measures prescribed in the first paragraph of (I) shall be
executed by and at the expense of Greece and Turkey as regards their
respective territories, and under control as provided in Article 203.

(3) The territories of the zone and the islands of Lemnos, Imbros,
Samothrace, Tenedos, and Mitylene shall not be used for military
purposes, except by the three Allied Powers referred to above, acting
in concert. This provision does not exclude the employment in the said
zone and islands of forces of Greek and Turkish gendarmerie, who will
be under the Inter-Allied command of the forces of occupation, in
accordance with the provisions of Article 161, nor the maintenance of
a garrison of Greek troops in the island of Mitylene, nor the presence
of the Sultan's bodyguard referred to in Article 152.

(4) The said Powers, acting in concert, shall have the right to
maintain in the said territories and islands such military and air
forces as they may consider necessary to prevent any action being
taken or prepared which might directly or indirectly prejudice the
freedom of the Straits.

This supervision will be carried out in naval matters by a guard-ship
belonging to each of the said Allied Powers.

The forces of occupation referred to above may, in case of necessity,
exercise on land the right of requisition, subject to the same
conditions as those laid down in the Regulations annexed to the Fourth
Hague Convention, 1907, or any other Convention replacing it to which
all the said Powers are parties. Requisitions shall, however, only be
made against payment on the spot.

ARTICLE 179.

The zone referred to in Article 178 is defined as follows:

(I) In Europe:

>From Karachali on the Gulf of Xeros north-eastwards,
a line reaching and then following the southern boundary of the basin
of the Beylik Dere to the crest of the Kuru Dagh;
then following that crest line,
then a straight line passing north of Emerli, and south of Derelar,
then curving north-north-eastwards and cutting the road from Rodosto
to Malgara 3 kilometres west of Ainarjik and then passing 6 kilometres
south-east of Ortaja Keui,
then curving north-eastwards and cutting the road from Rodosto to
Hairobolu 18 kilometres northwest of Rodosto,
then to a point on the road from Muradli to Rodosto about kilometre
south of Muradli,
a straight line;
thence east-north-eastwards to.Yeni Keui,
a straight line, modified, however, so as to pass at a minimum
distance of 2 kilometres north of the railway from Chorlu to Chatalja;
thence north-north-eastwards to a point west of Istranja,
situated on the frontier of Turkey in Europe as defined in
Article 27, 1 (2),
a straight line leaving the village of Yeni Keui within the zone;
thence to the Black Sea,
the frontier of Turkey in Europe as defined in Article 27, 1 (2).

(2) In Asia:

>From a point to be determined by the Principal Allied Powers between
Cape Dahlina and Kemer Iskele on the gulf of Adramid
east-north-eastwards,
a line passing south of Kemer Iskele and Kemer together with the road
joining these places;
then to a point immediately south of the point where the Decauville
railway from Osmanlar to Urchanlar crosses the Diermen Dere,
a straight line;
thence north-eastwards to Manias Geul,
a line following the right bank of the Diermen Dere, and Kara Dere Suyu;
thence eastwards, the southern shore of Manias Geul;
then to the point where it is crossed by the railway from Panderma to
Susighirli, the course of the Kara Dere upstream;
thence eastwards to a point on the Adranos Chai about kilometres from
its mouth near Kara Oghlan,
a straight line;
thence eastwards, the course of this river downstream then the
southern shore of Abulliont Geul;
then to the point where the railway from Mudania to Brusa crosses the
Ulfer Chai, about 5 kilometres northwest of Brusa,
a straight line;
thence north-eastwards to the confluence of the rivers about 6
kilometres north of Brusa,
the course of the Ulfer Chai downstream;
thence eastwards to the southernmost point of Iznik Geul,
a straight line;
thence to a point 2 kilometres north of Iznik,
the southern and eastern shores of this lake;
thence north-eastwards to the westernmost point of Sbanaja Geul,
a line following the crest line Chirchir Chesme, Sira Dagh,
Elmali Dagh, Kalpak Dagh, Ayu Tepe, Hekim Tepe; thence northwards to a
point on the road from Ismid to Armasha, 8 kilometres southwest of
Armasha,
a line following as far as possible the eastern boundary of the basin
of the Chojali Dere;
thence to a point on the Black Sea, 2 kilometres east of the mouth of
the Akabad R, a straight line.

ARTICLE 180.

A Commission shall be constituted within fifteen days from the coming
into force of the present Treaty to trace on the spot the boundaries
of the zone referred to in Article 178, except in so far as these
boundaries coincide with the frontier line described in Article
27,1(2). This Commission shall be composed of three members nominated
by the military authorities of France, Great Britain and Italy
respectively, with, for the portion of the zone placed under Greek
sovereignty, one member nominated by the Greek Government, and, for
the portion of the zone remaining under Turkish sovereignty, one
member nominated by the Turkish Government. The decisions of the
Commission, which will be taken by a majority, shall be binding on the
parties concerned. The expenses of this Commission will be included in
the expenses of the occupation of the said zone.

SECTION II.

NAVAL CLAUSES.

ARTICLE 181.

>From the coming into force of the present Treaty all warships interned
in Turkish ports in accordance with the Armistice of October 30, 1918,
are declared to be finally surrendered to the Principal Allied Powers.

Turkey will, however, retain the right to maintain along her coasts
for police and fishery duties a number of vessels which shall not
exceed:

7 sloops,

6 torpedo boats.

These vessels will constitute the Turkish Marine, and will be chosen
by the Naval Inter-Allied Commission of Control referred to in Article
201 from amongst the following vessels:

SLOOPS

Aidan Reis.Hizir Reis.
Burock Reis.Kemal Reis.
Sakis.Issa Reis.
Prevesah.

TORPEDO-BOATS

Sisri Hissar. Moussoul.
Sultan Hissor. Ack Hissar.
Drach. Younnous.

The authority established for the control of customs will be entitled
to appeal to the three Allied Powers referred to in Article 178 in
order to obtain a more considerable force, if such an increase is
considered indispensable for the satisfactory working of the services
concerned.

Sloops may carry a light armament of two guns inferior to 77 m /m. and
two machine guns. Torpedo-boats (or patrol launches) may carry a light
armament of one gun inferior to 77 m/m. All the torpedoes and
torpedo-tubes on board will be removed.

ARTICLE 182.

Turkey is forbidden to construct or acquire any warships other than
those intended to replace the units referred to in Article
181. Torpedo-boats shall be replaced by patrol launches.

The vessels intended for replacement purposes shall not exceed: 600
tons in the case of sloops;

l00 tons in the case of patrol launches.

Except where a ship has been lost, sloops and torpedo-boats shall only
be replaced after a period of twenty years, counting from the
launching of the ship.

ARTICLE 183.

The Turkish armed transports and fleet auxiliaries enumerated below
shall be disarmed and treated as merchant ships:

Rechid Pasha (late Port Antonio).
Tir-i-Mujghion (late Pembroke Castle).
Kiresund (late Warwick Castle).
Millet (late Seagull).
Akdeniz. Bosphorus ferry-boats Nos. 60, 61, 63 and 70.

ARTICLE 184.

All warships, including submarines, now under construction in Turkey
shall be broken up, with the exception of such surface vessels as can
be completed for commercial purposes.

The work of breaking up these vessels shall be commenced on the coming
into force of the present Treaty.

ARTICLE 185.

Articles, machinery and material arising from the breaking up of
Turkish warships of all kinds, whether surface vessels or submarines,
may not be used except for purely industrial or commercial
purposes. They may not be sold or disposed of to foreign countries.

[Hovik]

ARTICLE 186.

The construction or acquisition of any submarine, even for commercial
purposes, shall be forbidden in Turkey.

ARTICLE 187.

The vessels of the Turkish Marine enumerated in Article 181 must have
on board or in reserve only the allowance of war material and
armaments fixed by the Naval Inter-Allied Commission of Control
referred to in Article 201. Within a month from the time when the
above quantities are fixed all armaments rmunitions or other naval war
material including mines and torpedoes, belonging to Turkey at the
time of the signing of the Armistice of October 30, 1918, must be
definitely surrendered to the Principal Allied Powers.

The manufacture of these articles in Turkish territory for, and their
export to, foreign countries shall be forbidden.

All other stocks, depots or reserves of arms, munitions or naval war
material of all kinds are forbidden.

ARTICLE 188.

The Naval Inter-Allied Commission of Control will fix the number of
officers and men of all grades and corps to be admitted in accordance
with the provisions of Article 189, into the Turkish Marine. This
number will include the personnel for manning the ships left to Turkey
in accordance with Article 181, and the administrative personnel of
the police and fisheries protection services and of the semaphore
stations.

Within two months from the time when the above number is fixed, the
personnel of the former Turkish Navy in excess of this number shall be
demobilised.

No naval or military corps or reserve force in connection with the
Turkish Marine may be organised in Turkey without being included in
the above strength.

ARTICLE 189.

The personnel of the Turkish Marine shall be recuited entirely by
voluntary engagements entered into for a minimum period of twenty-five
consecutive years for officers, and twelve consecutive years for petty
officers and men.

The number engaged to replace those discharged for any reason other
than the expiration of their term of service must not exceed five per
cent. per annum of the total personnel fixed by the Naval Inter-Allied
Commission of Control.

The personnel discharged from the former Turkish Navy must not receive
any kind of naval or military training.

Officers belonging to the former Turkish Navy and not demobilised must
undertake to serve till the age of forty-five, unless discharged for
sufficient reason.

Officers and men belonging to the Turkish mercantile marine must not
receive any kind of naval or military training.

ARTICLE 190.

On the coming into force of the present Treaty all the wireless
stations in the zone referred to in Article 178 shall be handed over
to the Principal Allied Powers. Greece and Turkey shall not construct
any wireless stations in the said zone.

SECTION III.

AIR CLAUSES.

ARTICLE 19l.

The Turkish armed forces must not include any military or naval air
forces.

No dirigible shall be kept.

ARTICLE 192.

Within two months from the coming into force of the present Treaty the
personnel of the air forces on the rolls of the Turkish land and sea
forces shall be demobilised.

ARTICLE 193.

Until the complete evacuation of Turkish territory by the Allied
troops, the aircraft of the Allied Powers shall have throughout
Turkish territory freedom of passage through the air, freedom of
transit and of landing.

ARTICLE 194.

During the six months following the coming into force of the present
Treaty the manufacture, importation and exportation of aircraft of
every kind, parts of aircraft, engines for aircraft and parts of
engines for aircraft shall be forbidden in all Turkish territory.

ARTICLE 195.

On the coming into force of the present Treaty all military and naval
aeronautical material must be delivered by Turkey, at her own expense,
to the Principal Allied Powers.

Delivery must be completed within six months and must be effected at
such places as may be appointed by the Aeronautical Inter-Allied
Commission of Control. The Governments of the Principal Allied Powers
will decide as to the disposal of this material.

In particular, this material will include all items under the
following heads which are or have been in use or were designed for
warlike purposes.

Complete aeroplanes and seaplanes, as well as those being
manufactured, repaired or assembled.

Dirigibles able to take the air, being manufactured, repaired or
assembled.

Plant for the manufacture of hydrogen.

Dirigible sheds and shelters of every kind for aircraft.

Pending their delivery, dirigibles will, at the expense of Turkey be
maintained inflated with hydrogen; the plant for the manufacture of
hydrogen, as well as the sheds for dirigibles, may, at the discretion
of the said Powers, be left to Turkey until the dirigibles are handed
over.

Engines for aircraft.

Nacelles and fuselages.

Armament (guns, machine-guns, light machine-guns, bombdropping
apparatus, torpedo-dropping apparatus, synchronising apparatus, aiming
apparatus).

Munitions (cartridges, shells, bombs loaded or unloaded, stocks of
explosives or of material for their manufacture).

Instruments for use on aircraft.

Wireless apparatus and photographic and cinematographic apparatus for
use on aircraft.

Component parts of any of the items under the preceding heads.

All aeronautical material of whatsoever description in Turkey shall be
considered primdfocie as war material, and as such may not be
exported, transferred, lent, used or destroyed, but must remain on the
spot until such time as the Aeronautical Inter-Allied Commission of
Control referred to in Article 202 has given a decision as to its
nature; this Commission will be exclusively entitled to decide all
such points.

SECTION IV.

INTER-ALLIED COMMISSIONS OF CONTROL AND ORGANISATION.

ARTICLE 196.

Subject to any special provisions in this Part, the military, naval
and air clauses contained in the present Treaty shall be executed by
Turkey and at her expense under the control of Inter-Allied
Commissions appointed for this purpose by the Principal Allied Powers.

The above-mentioned Commissions will represent the Principal Allied
Powers in dealing with the Turkish Government in all matters relating
to the execution of the military, naval or air clauses. They will
communicate to the Turkish authorities the decisions which the
Principal Allied Powers have reserved the right to take, or which the
execution of the said clauses may necessitate.

ARTICLE 197.

The Inter-Allied Commissions of Control and Organisation may establish
their organisations at Constantinople, and will be entitled, as often
as they think desirable, to proceed to any point whatever in Turkish
territory, or to send sub-commissions, or to authorise one or more of
their members to go, to any such point.

ARTICLE 198.

The Turkish Government must furnish to the Inter-Allied Commissions of
Control and Organisation all such information and documents as the
latter may deem necessary for the accomplishment of their mission, and
must supply at its own expense all labour and material which the said
Commissions may require in order to ensure the complete execution of
the military, naval or air clauses.

The Turkish Government shall attach a qualified representative to each
Commission for the purpose of receiving all communications which the
Commission may have to address to the Turkish Government, and of
supplying or procuring for the Commission all information or documents
which may be required.

ARTICLE 199.

The upkeep and cost of the Inter-Allied Commissions of Control and
Organisation and the expenses incurred by their work shall be borne by
Turkey.

ARTICLE 200.

The Military Inter-Allied Commission of Control and Organisation will
be entrusted on the one hand with the supervision of the execution of
tbe military clauses relating to the reduction of the Turkish forces
within the authorised limits, the delivery of arms and war material
prescribed in Chapter VI of Section I and the disarmament of the
fortified regions prescribed in Chapters VII and VIII of that Section,
and on the other hand with the organisation and the control of the
employment of the new Turkish armed force.

(l) As the Military Inter-Allied Commission of Control it will be its
special duty:

(a) To fix the number of customs officials, local urban and rural
police, forest guards and other like officials which Turkey will be
authorised to maintain in accordance with Article 170.

(b) To receive from the Turkish Government the notifications relating
to the location of the stocks and depots of munitions, the armament of
the fortified works, fortresses and forts, the situation of the works
or factories for the production of arms, munitions and war material
and their operations.

(c) To take delivery of the arms, munitions, war material and plant
intended for manufacture of the same, to select the points where such
delivery is to be effected, and to supervise the works of rendering
things useless and of conversion provided for by the present Treaty.

(2) As the Military Inter-Allied Commission of Organisation it will be
its special duty:

(a) To proceed, in collaboration with the Turkish Government, with the
organisation of the Turkish armed force upon the basis laid down in
Chapters I to IV, Section I of this Part, with the delimitation of the
territorial regions provided for in Article 156, and with the
distribution of the troops of gendarmerie and the special elements for
reinforcement between the different territorial regions;

(b) To control the conditions for the employment, as laid down in
Articles 156 and I57, of these troops of gendarmerie and these
elements, and to decide what effect shall be given to requests of the
Turkish Government for the provisional modification of the normal
distribution of these forces determined in conformity with the said
Articles;

(c) To determine the proportion by nationality of the Allied and
neutral officers to be engaged to serve in the Turkish gendarmerie
under the conditions laid down in Article 159, and to lay down the
conditions under which they are to participate in the different duties
provided for them in the said Article.

[Hovik]

ARTICLE 201.

It will be the special duty of the Naval Inter-Allied Commission of
Control to visit the building yards and to supervise the breaking-up
of the ships, to take delivery of the arms, munitions and naval war
material and to supervise their destruction and breaking up.

The Turkish Government must furnish to the Naval Inter-Allied
Commission of Control all such information and documents as the latter
may deem necessary to ensure the complete execution of the naval
clauses, in particular the designs of the warships, the composition of
their armaments, the details and models of the guns, munitions,
torpedoes, mines, explosives, wireless telegraphic apparatus and in
general everything relating to naval war material, as well as all
legislative or administrative documents and regulations.

ARTICLE 202.

It will be the special duty of the Aeronautical Inter-Allied
Commission of Control to make an inventory of the aeronautical
material now in the hands of the Turkish Government, to inspect
aeroplane, balloon and motor manufactories and factories producing
arms, munitions and explosives capable of being used by aircraft, to
visit all aerodromes, sheds, landing grounds, parks and depots on
Turkish territory, to arrange, if necessary, for the removal of
material and to take delivery of such material.

The Turkish Government must furnish to the Aeronautical Inter-Allied
Commission of Control all such information and legislative,
administrative or other documents as the Commission may consider
necessary to ensure the complete execution of the air clauses, and in
particular a list of the personnel belonging to all the Turkish air
services and of the existing material as well as of that in process of
manufacture or on order, and a complete list of all establishments
working for aviation, of their positions, and of all sheds and landing
grounds.

ARTICLE 203.

The Military, Naval and Aeronautical Inter-Allied Commissions of
Control will appoint representatives who will be jointly responsible
for controlling the execution of the operations provided for in
paragraphs (1) and (2) of Article 178.

ARTICLE 204.

Pending the definitive settlement of the political status of the
territories referred to in Article 89, the decisions of the Inter-
Allied Commissions of Control and Organisation will be subject to any
modifications which the said Commissions may consider necessary in
consequence of such settlement.

ARTICLE 205.

The Naval and Aeronautical Inter-Allied Commissions of Control will
cease to operate on the completion of the tasks assigned to them
respectively by Articles 201 and 202.

The same will apply to the section of the Military Inter-Allied
Commission entrusted with the functions of control prescribed in
Article 200 (1).

The section of the said Commission entrusted with the organisation of
the new Turkish armed force as provided in Article 200 (2) will
operate for five years from the coming into force of the present
Treaty. The Principal Allied Powers reserve the right to decide, at
the end of this period, whether it is desirable to maintain or
suppress this section of the said Commission.

SECTION V.

GENERAL PROVISIONS.

ARTICLE 206.

The following portions of the Armistice of October 30, 1918: Articles
7, 10, 12, 13 and 24 remain in force so far as they are not
inconsistent with the provisions of the present Treaty.

ARTICLE 207.

Turkey undertakes from the coming into force of the present Treaty not
to accredit to any foreign country any military, naval or air mission,
and not to send or allow the departure of such mission; she
undertakes, moreover, to take the necessary steps to prevent Turkish
nationals from leaving her territory in order to enlist in the army,
fleet or air service of any foreign Power, or to be attached thereto
with the purpose of helping in its training, or generally to give any
assistance to the military, naval or air instruction in a foreign
country.

The Allied Powers undertake on their part that from the coming into
force of the present Treaty they will neither enlist in their armies,
fleets or air services nor attach to them any Turkish national with
the object of helping in military training, or in general employ any
Turkish national as a military, naval or air instructor.

The present provision does not, however, affect the right of France to
recruit for the Foreign Legion in accordance with French military laws
and regulations.

PART VI.

PRISONERS OF WAR AND GRAVES.

SECTION I.

PRISONERS OF WAR.

ARTICLE 208.

The repatriation of Turkish prisoners of war and interned civilians
who have not already been repatriated shall continue as quickly as
possible after the coming into force of the present Treaty.

ARTICLE 209.

>From the time of their delivery into the hands of the Turkish
authorities, the prisoners of war and interned civilians are to be
returned without delay to their homes by the said authorities.

Those among them who, before the war, were habitually resident in
territory occupied by the troops of the Allied Powers are likewise to
be sent to their homes, subject to the consent and control of the
military authorities of the Allied armies of occupation.

ARTICLE 210.

The whole cost of repatriation from October 30, 1918, shall be borne
by the Turkish Government.

ARTICLE 211.

Prisoners of war and interned civilians awaiting disposal or
undergoing sentence for offences against discipline shall be
repatriated irrespective of the completion of their sentence or of the
proceedings pending against them.

This stipulation shall not apply to prisoners of war and interned
civilians punished for offences committed subsequent to June 15, 1920.

During the period pending their repatriation, all prisoners of war and
interned civilians shall remain subject to the existing regulations,
more especially as regards work and discipline.

ARTICLE 212.

Prisoners of war and interned civilians who are awaiting trial or
undergoing sentence for offences other than those against discipline
may be detained.

ARTICLE 213.

The Turkish Government undertakes to admit to its territory without
distinction all persons liable to repatriation.

Prisoners of war or Turkish nationals who do not desire to be
repatriated may be excluded from repatriation; but the Allied
Governments reserve to themselves the right either to repatriate them
or to take them to a neutral country or to allow them to reside in
their own territories.

The Turkish Government undertakes not to institute any exceptional
proceedings against these persons or their families nor to take any
repressive or vexatious measures of any kind whatsoever against them
on this account.

ARTICLE 214.

The Allied Governments reserve the right to make the repatriation of
Turkish prisoners of war or Turkish nationals in their hands
conditional upon the immediate notification and release by the Turkish
Government of any prisoners of war and other nationals of the Allied
Powers who are still held in Turkey against their will.

ARTICLE 2I5.

The Turkish Government undertakes:

(I) To give every facility to Commissions entrusted by the Allied
Powers with the search for the missing or the identification of Allied
nationals who have expressed their desire to remain in Turkish
territory; to furnish such Commissions with all necessary means of
transport; to allow them access to camps, prisons, hospitals and all
other places; and to place at their disposal all documents whether
public or private which would facilitate their enquiries;

(2) To impose penalties upon any Turkish officials or private persons
who have concealed the presence of any nationals of any of the Allied
Powers, or who have neglected to reveal the presence of any such after
it had come to their knowledge;

(3) To facilitate the establishing of criminal acts punishable by the
penalties referred to in Part VII (Penalties) of the present Treaty
and committed by Turks against the persons of prisoners of war or
Allied nationals during the war.

[Hovik]

ARTICLE 216.

The Turkish Govermnent undertakes to restore without delay from the
date of the coming into force of the present Treaty all articles,
equipment, arms, money, securities, documents and personal effects of
every description which have belonged to officers, soldiers or sailors
or other nationals of the Allied Powers and which have been retained
by the Turkish authorities.

ARTICLE 217.

The High Contracting Parties waive reciprocally all repayment of sums
due for the maintenance of prisoners of war in their respective
territories.

SECTION II.

GRAVES.

ARTICLE 218.

The Turkish Government shall transfer to the British, French and
Italian Governments respectively full and exclusive rights of
ownership over the land within the boundaries of Turkey as fixed by
the present Treaty in which are situated the graves of their soldiers
and sailors who fell in action or died from wounds, accident or
disease, as well as over the land required for laying out cemeteries
or erecting memorials to these soldiers and sailors, or providing
means of access to such cemeteries or memorials.

The Greek Government undertakes to fulfil the same obligation so far
as concerns the portion of the zone of the Straits and the islands
placed under its sovereignty.

ARTICLE 219.

Within six months from the coming into force of the present Treaty the
British, French and Italian Governments will respectively notify to
the Turkish Government and the Greek Government the land of which the
ownership is to be transferred to them in accordance with Article
218. The British, French and Italian Governments will each have the
right to appoint a Commission, which shall be exclusively entitled to
examine the areas where burials have or may have taken place, and to
make suggestions with regard to the re-grouping of graves and the
sites where cemeteries are eventually to be established. The Turkish
Government and the Greek Government may be represented on these
Commissions, and shall give them all assistance in carrying out their
mission.

The said land will include in particular the land in the Gallipoli
Peninsula shown on map No. 3 [see Introduction]; the limits of this
land will be notified to the Greek Government as provided in the
preceding paragraph. The Government in whose favour the transfer is
made undertakes not to employ the land, nor to allow it to be
employed, for any purpose other than that to which it is
dedicated. The shore may not be employed for any military, marine or
commercial purpose.

ARTICLE 220.

Any necessary legislative or administrative measures for the transfer
to the British, French and Italian Governments respectively of full
and exclusive rights of ownership over the land notified in accordance
with Article 219 shall be taken by the Turkish Government and the
Greek Government respectively within six months from the date of such
notification. If any compulsory acquisition of the land is necessary
it will be effected by, and at the cost of, the Turkish Government or
the Greek Government, as the case may be.

ARTICLE 221.

The British, French and Italian Governments may respectively entrust f
gendarmerie, Greek and Turkish, will be under the I deem fit the
establishment, arrangement, maintenance and care of the cemeteries,
memorials and graves situated in the land referred to in Article 218.

These Commissions or organisations shall be officially recognised by
the Turkish Government and the Greek Government respectively. They
shall have the right to undertake any exhumations or removal of bodies
which they may consider necessary in order to concentrate the graves
and establish cemeteries; the remains of soldiers or sailors may not
be exhumed, on any pretext whatever, without the authority of the
Commission or organisation of the Government concerned.

ARTICLE 222.

The land referred to in this Section shall not be subjected by Turkey
or the Turkish authorities, or by Greece or the Greek authorities, as
the case may be, to any form of taxation. Representatives of the
British, French or Italian Governments, as well as persons desirous of
visiting the cemeteries, memorials and graves, shall at all times have
free access thereto. The Turkish Government and the Greek Government
respectively undertake to maintain in perpetuity the roads leading to
the said land.

The Turkish Government and the Greek Government respectively undertake
to afford to the British, French and Italian Governments all necessary
facilities for obtaining a sufficient water supply for the
requirements of the staff engaged in the maintenance or protection of
the said cemeteries or memorials, and for the irrigation of the land.

ARTICLE 223.

The provisions of this Section do not affect the Turkish or Greek
sovereignty, as the case may be, over the land transferred. The
Turkish Government and the Greek Government respectively shall take
all the necessary measures to ensure the punishment of persons subject
to their jurisdiction who may be guilty of any violation of the rights
conferred on the Allied Governments, or of any desecration of the
cemeteries, memorials or graves.

ARTICLE 224.

Without prejudice to the other provisions of this Section, the Allied
Governments and the Turkish Government will cause to be respected and
maintained the graves of soldiers and sailors buried in their
respective territories, including any territories for which they may
hold a mandate in conformity with the Covenant of the League of
Nations.

ARTICLE 225.

The graves of prisoners of war anterned civilians who are
nationals of the different belligerent States and have died in
captivity shall be properly maintained in accordance with Article 224.

The Allied Governments on the one hand and the Turkish Government on
the other reciprocally undertake also to furnish to each other:

(1) A complete list of those who have died, together with all
information useful for identification

(2) All information as to the number and position of the graves of all
those who have been buried without identification.


PART VII.

PENALTIES.

ARTICLE 226.

The Turkish Government recognises the right of the Allied Powers to
bring before military tribunals persons accused of having committed
acts in violation of the laws and customs of war. Such persons shall,
if found guilty, be sentenced to punishments laid down by law. This
provision will apply notwithstanding any proceedings or prosecution
before a tribunal in Turkey. or in the territory of her allies.

The Turkish Government shall hand over to the Allied Powers or to such
one of them as shall so request all persons accused of having
committed an act in violation of the laws and customs of war, who are
specified either by name or by the rank, office or employment which
they held under the Turkish authorities.

ARTICLE 227.

Persons guilty of criminal acts against the nationals of one of the
Allied Powers shall be brought before the military tribunals of that
Power.

Persons guilty of criminal acts against the nationals of more than one
of the Allied Powers shall be brought before military tribunals
composed of members of the military tribunals of the Powers concerned.

In every case the accused shall be entitled to name his own counsel.

ARTICLE 228.

The Turkish Government undertakes to furnish all documents and
information of every kind, the production of which may be considered
necessary to ensure the full knowledge of the incriminating acts, the
prosecution of offenders and the just appreciation of responsibility.

ARTICLE 229.

The provisions of Articles 226 to 228 apply similarly to the
Governments of the States to which territory belonging to the former
Turkish Empire has been or may be assigned, in so far as concerns
persons accused of having committed acts contrary to the laws and
customs of war who are in the territory or at the disposal of such
States.

If the persons in question have acquired the nationality of one of the
said States, the Government of such State undertakes to take, at the
request of the Power concerned and in agreement with it, or upon the
joint request of all the Allied Powers, all the measures necessary to
ensure the prosecution and punishment of such persons.

ARTICLE 230.

The Turkish Government undertakes to hand over to the Allied Powers
the persons whose surrender may be required by the latter as being
responsible for the massacres committed during the continuance of the
state of war on territory which formed part of the Turkish Empire on
August 1, 1914.

The Allied Powers reserve to themselves the right to designate the
tribunal which shall try the persons so accused, and the Turkish
Government undertakes to recognise such tribunal.

In the event of the League of Nations having created in sufficient
time a tribunal competent to deal with the said massacres, the Allied
Powers reserve to themselves the right to bring the accused persons
mentioned above before such tribunal, and the Turkish Government
undertakes equally to recognise such tribunal.

[Hovik]

The provisions of Article 228 apply to the cases dealt with in this
Article.

PART VIII.

FINANCIAL CLAUSES.

ARTICLE 231.

Turkey recognises that by joining in the war of aggression which
Germany and Austria-Hungary waged against the Allied Powers she has
caused to the latter losses and sacrifices of all kinds for which she
ought to make complete reparation.

On the other hand, the Allied Powers recognise that the resources of
Turkey are not sufficient to enable her to make complete reparation.

In these circumstances, and inasmuch as the territorial rearrangements
resulting from the present Treaty will leave to Turkey only a portion
of the revenues of the former Turkish Empire, all claims against the
Turkish Government for reparation are waived by the Allied Powers,
subject only to the provisions of this Part and of Part IX (Economic
Clauses) of the present Treaty.

The Allied Powers, desiring to afford some measure of relief and
assistance to Turkey, agree with the Turkish Government that a
Financial Commission shall be appointed consisting of one
representative of each of the following Allied Powers who are
specially interested, France, the British Empire and Italy, with whom
there shall be associated a Turkish Commissioner in a consultative
capacity. The powers and duties of this Commission are set forth in
the following Articles.

ARTICLE 232.

The Financial Commission shall take such steps as in its judgment are
best adapted to conserve and increase the resources of Turkey.

The Budget to be presented annually by the Minister of Finance to the
Turkish Parliament shall be submitted, in the first instance, to the
Financial Commission, and shall be presented to Parliament in the form
approved by that Commission. No modification introduced by Parliament
shall be operative without the approval of the Financial Commission.

The Financial Commission shall supervise the execution of the Budget
and the financial laws and regulations of Turkey. This supervision
shall be exercised through the medium of the Turkish Inspectorate of
Finance, which shall be placed under the direct orders of the
Financial Commission, and whose members will only be appointed with
the approval of the Commission.

The Turkish Government undertakes to furnish to this Inspectorate all
facilities necessary for the fulfilment of its task, and to take such
action against unsuitable officials in the Financial Departments of
the Government as the Financial Commission may suggest.

ARTICLE 233.

The Financial Commission shall, in addition, in agreement with the
Council of the Ottoman Public Debt and the Imperial Ottoman Bank,
undertake by such means as may be recognised to be opportune and
equitable the regulation and improvement of the Turkish currency.

ARTICLE 234.

The Turkish Government undertakes not to contract any internal or
external loan without the consent of the Financial Commission.

ARTICLE 235.

The Turkish Government engages to pay, in accordance with the
provisions of the present Treaty, for all loss or damage, as defined
in Article 236, suffered by civilian nationals of the Allied Powers,
in respect of their persons or property, through the action or
negligence of the Turkish authorities during the war and up to the
coming into force of the present Treaty.

The Turkish Government will be bound to make to the European
Commission of the Danube such restitutions, reparations and
indemnities as may be fixed by the Financial Commission in respect of
damages inHicted on the said European Commission of the Danube during
the war.

ARTICLE 236.

All the resources of Turkey, except revenues conceded or hypothecated
to the service of the Ottoman Public Debt (see Annex 1), shall be
placed at the disposal of the Financial Commission, which shall employ
them, as need arises, in the following manner:

(i) The first charge (after payment of the salaries and current
expenses of the Financial Commission, and of the ordinary expenses of
such Allied forces of occupation as may be maintained after the coming
into force of the present Treaty in territories remaining Turkish)
shall be the expenses of the Allied forces of occupation since October
30, 1918, in territory remaining Turkish, and the expenses of Allied
forces of occupation in territories detached from Turkey in favour of
a Power other than the Power which has borne the expenses of
occupation.

The amount of these expenses and of the annuities by which they shall
be discharged will be determined by the Financial Commission, which
will so arrange the annuities as to enable Turkey to meet any
deficiency that may arise in the sums required to pay that part of the
interest on the Ottoman Public Debt for which Turkey remains
responsible in accordance with this Part.

(ii) The second charge shall be the indemnity which the Turkish
Government is to pay, in accordance with Article 235, on account of
the claims of the Allied Powers for loss or damage suffered in respect
of their persons or property by their nationals, (other than those who
were Turkish nationals on August 1, 1914) as defined in Article 317,
Part IX (Economic Clauses), through the action or negligence of the
Turkish authorities during the war, due regard being had to the
financial condition of Turkey and the necessity for providing for the
essential expenses of its administration. The Financial Commission
shall adjudicate on and provide for payment of all claims in respect
of personal damage. The claims in respect to property shall be
investigated, determined and paid in accordance with Article 287, Part
IX (Economic Clauses). The Financial Commission shall fix the annuity
to be applied to the settlement of claims in respect of persons as
well as in respect of property, should the funds at the disposal of
the Allied Powers in accordance with the said Article 287, be
insufficient to meet this charge, and shall determine the currency in
which the annuity shall be paid.

ARTICLE 237

Any hypothecation of Turkish revenues effected during the war in
respect of obligations (including the internal debt) contracted by the
Turkish Government during the war is hereby annulled.

ARTICLE 238.

Turkey recognises the transfer to the Allied Powers of any claims to
payment or repayment which Germany, Austria, Bulgaria or Hungary may
have against her, in accordance with Article 261 of the Treaty of
Peace concluded at Versailles on June 28, 19l9, with Germany, and the
corresponding Articles of the Treaties of Peace with Austria, Bulgaria
and Hungary. The Allied Powers agree not to require from Turkey any
pay ment in respect of claims so transferred.

ARTICLE 239.

No new concession shall be granted by the Turkish Government either to
a Turkish subject or otherwise without the consent of the Financial
Commission.

ARTICLE 240.

States in whose favour territory is detached from Turkey shall acquire
without payment all property and possessions situated therein
registered in the name of the Turkish Empire or of the Civil List.

ARTICLE 241.

States in whose favour territory has been detached from Turkey, either
as a result of the Balkan Wars in 1913, or under the present Treaty,
shall participate in the annual charge for the service of the Ottoman
Public Debt contracted before November 1, 1914.

The Governments of the States of the Balkan Peninsula and the
newly-created States in Asia in favour of whom such territory has been
or is detached from Turkey shall give adequate guarantees for the
payment of the share of the above annual charge allotted to them
respectively.

ARTICLE 242.

For the purposes of this Part, the Ottoman Public Debt shall be deemed
to consist of the Debt heretofore governed by the Decree of Mouharrem,
together with such other loans as are enumerated in Annex I to this
Part.

Loans contracted before November 1, 1914, will be taken into account
in the distribution of the Ottoman Public Debt between Turkey, the
States of the Balkan Peninsula and the new States set up in Asia.

This distribution shall be effected in the following manner:

(I) Annuities arising from loans prior to October 17, 19l2 (Balkan
Wars), shall be distributed between Turkey and the Balkan States,
including Albania, which receive or have received any Turkish
territory.

(2) The residue of the annuities for which Turkey remains liable after
this distribution, together with those arising from loans contracted
by Turkey between October 17, 19l2, and November 1, 1914, shall be
distributed between Turkey and the States in whose favour territory is
detached from Turkey under the present Treaty.

ARTICLE 243

The general principle to be adopted in determining the amount of the
annuity to be paid by each State will be as follows:

The amount shall bear the same ratio to the total required for the
service of the Debt as the average revenue of the transferred
territory bore to the average revenue of the whole of Turkey
(including in each case the yield of the Customs surtax imposed in the
year 1907) over the three financial years 1909-10, 1910-11, and
1911-12.

ARTICLE 244

The Financial Commission shall, as soon as possible after the coming
into force of the present Treaty, determine in accordance with the
principle laid down in Article 243 the amount of the annuities
referred to in that Article, and communicate its decisions in this
respect to the High Contracting Parties.

The Financial Commission shall fulfil the functions provided for in
Article 134 of the Treaty of Peace concluded with Bulgaria on November
27, 19l9.

ARTICLE 245.

The annuities assessed in the manner above provided will be payable as
from the date of the coming into force of the Treaties by which the
respective territories were detached from Turkey, and, in the case of
territories detached under the present Treaty from March 1, 1920; they
shall continue to be payable (except as provided by Article 252) until
the final liquidation of the Debt. They shall, however, be
proportionately reduced as the loans constituting the Debt are
successively extinguished.

ARTICLE 246.

The Turkish Government transfers to the Financial Commission all its
rights under the provisions of the Decree of Mouharrem and subsequent
Decrees.

The Council of the Ottoman Public Debt shall consist of the British,
French and Italian delegates, and of the representative of the
Imperial Ottoman Bank, and shall continue to operate as heretofore. It
shall administer and levy all revenues conceded to it under the Decree
of Mouharrem and all other revenues the management of which has been
entrusted to it in accordance with any other loan contracts previous
to November 1, 1914.

The Allied Powers authorise the Council to give administrative
assistance to the Turkish Ministry of Finance, under such conditions
as may be determined by the Financial Commission with the object of
realising as far as possible the following programme:

The system of direct levy of certain revenues by the existing
Administration of the Ottoman Public Debt shall, within limits to be
prescribed by the Financial Commission, be extended as widely as
possible and applied throughout the provinces remaining Turkish. On
each new creation of revenue or of indirect taxes approved by the
Financial Commission, the Commission shal consider thepossibility of
entrusting the administration thereof to the Council of the Debt for
the account of the Turkish Government.

The administration of the Customs shall be under a Director-General
appointed by and revocable by the Financial Commission and answerable
to it. No change in the schedule of the Customs charges shall be made
except with the approval of the Financial Commission.

The Governments of France, Great Britain and Italy will decide, by a
majority and after consulting the bondholders whether the Council
should be maintained or replaced by the Financial Commission or the
expiry of the present term of the Council. The decision of the
Governments shall be taken at least six months before the date
corresponding to the expiry of this period.

ARTICLE 247.

The Commission has authority to propose, at a later date, the
substitution for the pledges at present granted to bondholders, in
accordance with their contracts or existing decrees, of other adequate
pledges, or of a charge on the general revenues of Turkey. The Allied
Governments undertake to consider any proposals the Financial
Commission might then have to make on this subject.

ARTICLE 248.

All property, movable and immovable, belonging to the Administration
of the Ottoman Public Debt, wherever situate, shall remain integrally
at the disposal of that body.

The Council of the Debt shall have power to apply the value of any
realised property for the purpose of extraordinary amortisation either
of the Unified Debt or of the Lots Turcs.

ARTICLE 249.

The Turkish Government agrees to transfer to the Financial Commission
all its rights in the Reserve Funds and the Tripoli Indemnity Fund.

ARTICLE 250.

A sum equal to the arrears of any revenues heretofore affected to the
service of the Ottoman Public Debt within the territories remaining
Turkish, which should have been but have not been paid to the Council
of the Debt, shall (except where such territories have been in the
military occupation of Allied forces and for the time of such
occupation) be paid to the Council of the Debt by the Turkish
Government as soon as in the opinion of the Financial Commission the
financial condition of Turkey shall permit.

[Hovik]

ARTICLE 251.

The Council of the Debt shall review all the transactions of the
Council which have taken place during the war. Any disbursements made
by the Council which were not in accordance with its powers and
duties, as defined by the Decree of Mouharrem or otherwise before the
war, shall be reimbursed to the Council of the Debt by the Turkish
Government so soon as in the opinion of the Financial Commission such
payment is possible. The Council shall have power to review any action
on the part of the Council during the war, and to annul any obligation
which in its opinion is prejudicial to the interests of the
bondholders, and which was not in accordance with the powers of the
Council of the Debt.

ARTICLE 252.

Any of the States which under the present Treaty are to contribute to
the annual charge for the service of the Ottoman Public Debt may, upon
giving six months' notice to the Council of the Debt, redeem such
obligation by payment of a sum representing the value of such annuity
capitalised at such rate of interest as may be agreed between the
State concerned and the Council of the Debt. The Council of the Debt
shall not have power to require such redemption.

ARTICLE 253.

The sums in gold to be transferred by Germany and Austria under the
provisions of Article 259 (1), (2), (4) and (7) of the Treaty of Peace
with Germany, and under Article 210 (1) of the Treaty of Peace with
Austria, shall be placed at the disposal of the Financial Commission.

ARTICLE 254.

The sums to be transferred by Germany in accordance with Article 259
(3) of the Treaty of Peace with Germany shall be placed forthwith at
the disposal of the Council of the Debt.

ARTICLE 255.

The Turkish Government undertakes to accept any decision that may be
taken by the Allied Powers, in agreement when necessary with other
Powers, regarding the funds of the Ottoman Sanitary Administration and
the former Superior Council of Health, and in respect of the claim of
the Superior Council of Health against the Turkish Government, as well
as regarding the funds of the Lifeboat Service of the Black Sea and
Bosphorus.

The Allied Powers hereby give authority to the Financial Commission to
represent them in this matter.

ARTICLE 256.

The Turkish Government, in agreement with the Allied Powers, hereby
releases the German Government from the obligation incurred by it
during the war to accept Turkish Government currency notes at a
specified rate of exchange in payment for goods to be exported to
Turkey from Germany after the war.

ARTICLE 257.

As soon as the claims of the Allied Powers against the Turkish
Government as laid down in this Part have been satisfied, and Ottoman
pre-war Public Debt has been liquidated, the Financial Commission
shall determine. The Turkish Government shall then consider in
consultation with the Council of the League of Nations whether any
further administrative advice and assistance should in the interests
of Turkey be provided for the Turkish Government by the Powers,
Members of the League of Nations, and, if so, in what form such advice
and assistance shall be given.

ARTICLE 258.

(1) Turkey will deliver, in a seaworthy condition and in such ports of
the Allied Powers as the Governments of the said Powers may determine
all German ships transferred to the Turkish flag since August I, I9I4;
these ships will be handed over to the Reparation Commission referred
to in Article 233 of the Treaty of Peace with Germany, any transfer to
a neutral flag during the war being regarded in this respect as void
so far as concerns the Allied Powers.

(2) The Turkish Government will hand over at the same time as the
ships referred to in paragraph (1) all papers and documents which the
Reparation Commission referred to in the said paragraph may think
necessary in order to ensure the complete transfer of the property in
the vessels, free and quit of all liens, mortgages, encumbrances,
charges or claims, whatever their nature.

The Turkish Government will effect any re-purchase or indemnisation
which may be necessary. It will be the party responsible in the event
of any proceedings for the recovery of, or in any claims against, the
vessel to be handed over whatever their nature, the Turkish Government
being bound in every case to guarantee the Reparation Commission
referred to in paragraph (1) against any ejectment or proceedings upon
any ground whatever arising under this head.

ARTICLE 259.

Without prejudice to Article 277, Part IX (Economic Clauses) of the
present Treaty, Turkey renounces, so far as she is concerned, the
benefit of any provisons of the Treaties of Brest-Litovsk and
Bucharest or of the Treaties supplementary thereto.

Turkey undertakes to transfer either to Roumania or to the Principal
Allied Powers, as the case may be, all monetary instruments, specie,
securities and negotiable instruments or goods which she has received
under the aforesaid Treaties.

ARTICLE 260.

The legislative measures required in order to give effect to the
provisions of this Part will be enacted by the Turkish Government and
by the Powers concerned within a period which must not exceed six
months from the signature of the present Treaty.


XXX


Section II, Annex II and Articles 261-433


------------------------------------------------------------------------


THE TREATY OF PEACE BETWEEN THE ALLIED AND ASSOCIATED POWERS
AND TURKEY
SIGNED AT SEVRES
AUGUST 10, 1920

ANNEX I:

THE OTTOMAN PRE-WAR PUBLIC DEBT. (NOVEMBER 5, 1914)

Go to Section I, Listing of Public Debt.
Go to Section II, Listing of Public Debt.
Go to Section III, Listing of Public Debt.

ANNEX I I .

1.
The Commission shall establish its own rules and procedure.

The Chairmanship shall be held annually by the French, British and
Italian Delegates in turn.

Each member shall have the right to nominate a deputy to act for him
in his absence.

Decisions shall be taken by the vote of the majority. Abstention from
voting will be treated as a vote against the proposal under
discussion.

The Commission shall appoint such agents and employees as it may deem
necessary for its work, with such emoluments and conditions of service
as it may think fit.

The costs and expenses of the Commission shall be paid by Turkey, in
conformity with the provisions of Article 236 (i.).

The salaries of the members of the Commission, as well as those of its
officials, shall be fixed on a reasonable scale by agreement from time
to time between the Governments represented on the Commission.

The members of the Commission shall enjoy the same rights and
immunities as are enjoyed in Turkey by duly accredited diplomatic
agents of friendly Powers.

2.
Turkey undertakes to grant to the members, officials and agents of the
Commission full powers to visit and inspect at all reasonable times
any place, public works, or undertakings in Turkey, and to furnish to
the said Commission all records, documents and information which it
may require.

3.
The Commission shall be entitled to assume, in agreement with the
Turkish Government and independently of any default of the latter in
fulfilling its obligations, the control, management and collection of
all indirect taxes.

4.
No member of the Commission shall be responsible, except to the
Government appointing him, for any action or omission in the
performance of his duties. No one of the Allied Governments assumes
any responsisility in respect of any other Government.

5.
The Commission shall publish annually detailed reports on its work,
its methods and its proposals for the financial reorganisation of
Turkey, as well as regarding its accounts for the period.

6.
The Commission shall also take over any other duties which may be
assigned to it under the present Treaty or with the assent of the
Turkish Government.


PART IX.

ECONOMIC CLAUSES.

SECTION I.

COMMERCIAL RELATIONS.

ARTICLE 261 .

The capitulatory regime resulting from treaties, conventions or usage
shall be re-established in favour of the Allied Powers which directly
or indirectly enjoyed the benefit thereof before August 1, 1914, and
shall be extended to the Allied Powers which did not enjoy the benefit
thereof on that date.

ARTICLE 262.

The Allied Powers who had post-offices in the former Turkish Empire
before August 1, 1914, will be entitled to re-establish post-offices
in Turkey.

ARTICLE 263.

The Convention of April 25, 1907, so far as it relates to the rate of
import duties in Turkey, shall be re-established in force in favour of
all the Allied Powers.

Nevertheless the Financial Commission established in accordance with
Article 231, Part VIII (Financial Clauses) of the present Treaty may
at any time authorise a modification of these import duties, or the
imposition of consumption duties, provided that any duties so modified
or imposed shall be applied equally to goods of whatever ownership or
origin.

No modification of existing duties or imposition of new duties
authorised by the Financial Commission by virtue of this Article shall
take effect until after a period of six months from its notification
to all the Allied Powers. During this period the Commission shall
consider any observations relative thereto which may be formulated by
any Allied Power.

ARTICLE 264.

Subject to any rights and exemptions resulting from concession
contracts made before August 1, 1914, the Financial Commission shall
be entitled to authorise the application by Turkey, in the conditions
of equality laid down in Article 263, to the persons or property of
the nationals of the Allied Powers of any taxes or duties which shall
similarly be imposed on Turkish subjects in the interests of the
economic stability and good government of Turkey.

The Financial Commission shall also be entitled to authorise the
application, in the same interests and in the same conditions to the
nationals of the Allied Powers of any prohibitions on import or
export.

No such tax, duty or prohibition shall take effect until after a
period of six months from its notification to all the Allied
Powers. During this period the Commission shall consider any
observations relative thereto that may be formulated by any Allied
Power.

ARTICLE 265.

In the case of vessels of the Allied Powers all classes of
certificates or documents relating to the vessel which were recognised
as valid by Turkey before the war, or which may hereafter be
recognised as valid by the principal maritime States, shall be
recognised by Turkey as valid and as equivalent to the corresponding
certificates issued to Turkish vessels.

A similar recognition shall be accorded to the certificates and
documents issued to their vessels by the Governments of new States,
whether they have a sea-coast or not, provided that such certificates
and documents shall be issued in conformity with the general practice
observed in the principal maritime States.

The High Contracting Parties agree to recognise the flag flown by the
vessels of an Allied Power or a new State having no sea-coast which
are registered at some one specified place situated in its territory;
such place shall serve as the port of registry of such vessels.

ARTICLE 266.

Turkey undertakes to adopt all the necessary legislative and
administrative measures to protect goods the produce or manufacture of
any one of the Allied Powers or new States from all forms of unfair
competition in commercial transactions.

Turkey undertakes to prohibit and repress by seizure and by other
appropriate remedies the importation, exportation, manufacture,
distribution, sale or offering for sale in her territory of all goods
bearing upon themselves or their usual get-up or wrappings any marks,
names, devices or descriptions whatsoever which are calculated to
convey directly or indirectly a false indication of the origin, type,
nature or special characteristics of such goods.

ARTICLE 267.

Turkey undertakes, on condition that reciprocity is accorded in these
matters, to respect any law, or any administrative or judicial
decision given in conformity with such law, in force in any Allied
State or new State and duly communicated to her by the proper
authorities, defining or regulating the right to any regional
appellation in respect of wine or spirits produced in the State to
which the region belongs, or the conditions under which the use of any
such appellation may be permitted; and the importation, exportation,
manufacture, distribution, sale or offering for sale of products or
articles bearing regional appellations inconsistent with such law or
order shall be prohibited by Turkey and repressed by the measures
prescribed in Article 266.

ARTICLE 268.

If the Turkish Government engages in international trade, it shall not
in respect thereof have or be deemed to have any rights, privileges or
immunities of sovereignty.

SECTION II.

TREATIES.

ARTICLE 269.

>From the coming into force of the present Treaty and subject to the
provisions thereof the multilateral treaties, conventions and
agreements of an economic or technical character enumerated below and
in the subsequent Articles shall alone be applied as between Turkey
and those of the Allied Powers party thereto:

(1) Conventions of March 14, 1884, of December 1, 1886, and of March
23, 1887, and Final Protocol of July 7, 1887, regarding the protection
of submarine cables.

(2) Convention of July 5, 1890, regarding the publication of customs
tariffs and the organisation of an International Union for the
publication of customs tariffs.

(3) Arrangement of December 9, 1907, regarding the creation of an
International Office of Public Hygiene at Paris.

(4) Convention of June 7, 1995, regarding the creation of an
International Agricultural Institute at Rome.

(5) Convention of June 27, 1855, relating to the Turkish Loan.

(6) Convention of July I6, 1863, for the redemption of the toll dues
on the Scheldt.

(7) Convention of October 29, I888, regarding the establishment of a
definite arrangement guaranteeing the free use of the Suez Canal.

ARTICLE 270.

>From the coming into force of the present Treaty, the High Contracting
Parties shall apply the conventions and agreements hereinafter
mentioned, in so far as concerns them, on condition that the special
stipulations contained in this Article are fulfilled by Turkey.

Postal Conventions:

Conventions and Agreements of the Universal Postal Union concluded at
Vienna on July 4, 1891.

Conventions and Agreements of the Postal Union signed at Washington on
June 15, 1897.

Conventions and Agreements of the Postal Union signed at Rome on May
26, 1906.

Telegraphic Conventions:

International Telegraphic Conventions signed at St. Petersburg on July
10/22, 1875.

Regulations and Tariffs drawn up by the International Telegraphic
Conference, Lisbon, June 11, 1908.

Turkey undertakes not to refuse her consent to the conclusion by new
States of the special arrangements referred to in the Conventions and
Agreements relating to the Universal Postal Union and to the
International Telegraphic Union, to which the said new States have
adhered or may adhere.

[Hovik]

ARTICLE 271.

>From the coming into force of the present Treaty the High Contracting
Parties shall apply, in so far as concerns them, the International
Radio-Telegraphic Convention of July 5, 1912, on condition that Turkey
fulfils the provisional regulations which will be indicated to her by
the Allied Powers.

If within five years after the coming into force of the present Treaty
a new convention regulating international radio-telegraphic
communications should have been concluded to take the place of the
Convention of July 5, 1912, this new convention shall bind Turkey,
even if Turkey should refuse either to take part in drawing up the
convention or to subscribe thereto.

This new convention will likewise replace the provisional regulations
in force.

ARTICLE 272.

Turkey undertakes:

(1) Within a period of twelve months from the coming into force of the
present Treaty to adhere in the prescribed form to the International
Convention of Paris of March 20, 1883, for the protection of
industrial property, revised at Washington on June 2, I911, and the
International Convention of Berne of September 9, 1886, for the
protection of literary and artistic works, revised at Berlin on
November 13, 1908, and the Additional Protocol of Berne of March 20,
1914, relating to the protection of literary and artistic works:

(2) Within the same period, to recognise and protect by effective
legislation, in accordance with the principles of the said
Conventions, the industrial, literary and artistic property of
nationals of the Allied States or of any new State.

In addition, and independently of the obligations mentioned above,
Turkey undertakes to continue to assure such recognition and such
protection to all the industrial, literary and artistic property of
the nationals of each of the Allied States and of any new State to an
extent at least as great as upon August 1, 1914, and upon the same
conditions.

ARTICLE 273.

Turkey undertakes to adhere to the conventions and arrangements
hereinafter mentioned, or to ratify them:

(1) Convention of October 11, 1909, regarding the international
circulation of motor cars.

(2) Agreement of May 15, 1886, regarding the sealing of railway trucks
subject to customs inspection, and Protocol of May

(3) Convention of December 31, 1913, regarding the unification of
commercial statistics.

(4) Convention of September 23, 1910, respecting the unification of
certain regulations regarding collisions and salvage at sea.

(5) Convention of December 21, 1904, regarding the exemption of
hospital ships from dues and charges in ports.

(6) Conventions of May 18, 1904, and of May 4, 1910, regarding the
suppression of the White Slave Traffic.

(7) Convention of May 4, 1910, regarding the suppression of obscene
publications.

(8) Sanitary Conventions of January 30, 1892, April 15, 1893, April 3,
1894, March 19, 1897, and December 3, 1903.

(9) Convention of November 29, 1906, regarding the unification of
pharmacopseial formulae for potent drugs.

(10) Conventions of November 3, 1881, and April 15, 1889, regarding
precautionary measures against phylloxera.

(11) Convention of March 19, 1902, regarding the protection of birds
useful to agriculture.

ARTICLE 274.

Each of the Allied Powers, being guided by the general principles or
special provisions of the present Treaty, shall notify to Turkey the
bilateral treaties or conventions which such Allied Power wishes to
revive with Turkey.

The notification referred to in this Article shall be made either
directly or through the intermediary of another Power. Receipt thereof
shall be acknowledged in writing by Turkey. The date of the revival
shall be that of the notification.

The Allied Powers undertake among themselves not to revive with Turkey
any conventions or treaties which are not in accordance with the terms
of the present Treaty.

The notification shall mention any provisions of the said conventions
and treaties which, not being in accordance with the terms of the
present Treaty, shall not be considered as revived.

In case of any difference of opinion, the League of Nations will be
called on to decide.

A period of six months from the coming into force of the present
Treaty is allowed to the Allied Powers within which to make the
notification.

Only those bilateral treaties and conventions which have been the
subject of such a notification shall be revived between the Allied
Powers and Turkey; all the others are and shall remain abrogated.

The above regulations apply to all bilateral treaties or conventions
existing between all the Allied Powers and Turkey, even if the said
Allied Powers have not been in a state of war with Turkey.

The provisions of this Article do not prejudice the stipulations of
Article 261.

ARTICLE 275.

Turkey recognises that all the treaties, conventions or agreements
which she has concluded with Germany, Austria, Bulgaria or Hungary
since August 1, 1914, until the coming into force of the present
Treaty are and remain abrogated by the present Treaty.

ARTICLE 276.

Turkey undertakes to secure to the Allied Powers, and to the officials
and nationals of the said Powers, the enjoyment of all the rights and
advantages of any kind which she may have granted to Germany, Austria,
Bulgaria or Hungary, or to the officials and nationals of these States
by treaties, conventions or arrangements concluded before August 1,
1914, so long as those treaties, conventions or arrangements remain in
force.

The Allied Powers reserve the right to accept or not the enjoyment of
these rights and advantages.

ARTICLE 277.

Turkey recognises that all treaties, conventions or arrangements which
she concluded with Russia, or with any State or Government of which
the territory previously formed a part of Russia, before August 1,
1914, or after that date until the coming into force of the present
Treaty, or with Roumania after August 15, 1916, until the coming into
force of the present Treaty, are and remain abrogated.

ARTICLE 278.

Should an Allied Power, Russia, or a State or Government of which the
territory formerly constituted a part of Russia, have been forced
since August 1, 1914, by reason of military occupation or by any other
means or for any other cause, to grant or to allow to be granted by
the act of any public authority, concessions, privileges and favours
of any kind to Turkey or to a Turkish national, such concessions,
privileges and favours are ipso facto annulled by the present Treaty.

No claims or indemnities which may result from this annulment shall be
charged against the Allied Powers or the Powers, States, governments
or public authorities which are released from their engagements by
this Article.

ARTICLE 279.

>From the coming into force of the present Treaty, Turkey undertakes to
give the Allied Powers and their nationals the benefit ipso facto of
the rights and advantages of any kind which she has granted by
treaties, conventions or arrangements to non-belligerent States or
their nationals since August 1, 1914, until the coming into force of
the present Treaty, so long as those treaties, conventions or
arrangements remain in force.

ARTICLE 280.

Those of the High Contracting Parties who have not yet signed, or who
have signed but not yet ratified, the Opium Convention signed at the
Hague on January 23, I9I2, agree to bring the said Convention into
force, and for this purpose to enact the necessary legislation without
delay and in any case within a period of twelve months from the coming
into force of the present Treaty.

Furthermore, they agree that ratification of the present Treaty should
in the case of Powers which have not yet ratified the Opium Convention
be deemed in all respects equivalent to the ratification of that
Convention and to the signature of the Special Protocol which was
opened at The Hague in accordance with the resolutions adopted by the
Third Opium Conference in 1914 for bringing the said Convention into
force.

For this purpose the Government of the French Republic will
communicate to the Government of the Netherlands a certified copy of
the Protocol of the deposit of ratifications of the present Treaty,
and will invite the Government of the Netherlands to accept and
deposit the said certified copy as if it were a deposit of
ratifications of the Opium Convention and a signature of the
Additional Protocol of 1914.

SECTION III .

INDUSTRIAL PROPERTY.

ARTICLE 2 81.

Subject to the stipulations of the present Treaty, rights of
industrial, literary and artistic property, as such property is
defined by the International Conventions of Paris and of Berne
mentioned in Article 272, shall be re-established or restored, as from
the coming into force of the present Treaty, in the territories of the
High Contracting Parties, in favour of the persons entitled to the
benefit of them at the moment when the state of war commenced, or
their legal representatives. Equally, rights which, except for the
war, would have been acquired during the war in consequence of an
application made for the protection of industrial property, or the
publication of a literary or artistic work, shall be recognised and
established in favour of those persons who would have been entitled
thereto, from the coming into force of the present Treaty.

Nevertheless, all acts done by virtue of the special measures taken
during the war under legislative, executive or administrative
authority of any Allied Power in regard to the rights of Turkish
nationals in industrial, literary or artistic property shall remain in
force and shall continue to maintain their full effect.

No claim shall be made or action brought by Turkey or Turkish
nationals in respect of the use during the war by the Government of
any Allied Power, or by any person acting on behalf or with the assent
of such Government, of any rights in industrial, literary or artistic
property, nor in respect of the sale, offering for sale or use of any
products, articles or apparatus whatsoever to which such rights
applied.

Unless the legislation of any one of the Allied Powers in force at the
moment of the signature of the present Treaty otherwise directs, sums
due or paid in virtue of any act or operation resulting from the
execution of the special measures mentioned in the second paragraph of
this Article shall be dealt with in the same way as other sums due to
Turkish nationals are directed to be dealt with by the present Treaty;
and sums produced by any special measures taken by the Turkish
Government in respect of rights in industrial, literary or artistic
property belonging to the nationals of the Allied Powers shall be
considered and treated in the same way as other debts due from Turkish
nationals.

Each of the Allied Powers reserves to itself the right to impose such
limitations, conditions or restrictions on rights of industrial
literary or artistic property (with the exception of trade-marks)
acquired before or during the war, or which may be subsequently
acquired in accordance with its legislation, by Turkish nationals
whether by granting licences, or by the working, or by preserving
control over their exploitation, or in any other way, as may be
considered necessary for national defence, or in the public interest
or for assuring the fair treatment by Turkey of the rights of
industrial, literary and artistic property held in Turkish territory
by its nationals, or for securing the due fulfilment of all the
obligations undertaken by Turkey in the present Treaty. As regards
rights of industrial, literary and artistic property acquired after
the coming into force of the present Treaty, the right so reserved by
the Allied Powers shall only be exercised in cases where these
limitations, conditions or restrictions may be considered necessary
for national defence or in the public interest.

In the event of the application of the provisions of the preceding
paragraph by any Allied Power, there shall be paid reasonable
indemnities or royalties, which shall be dealt with in the same way as
other sums due to Turkish nationals are directed to be dealt with by
the present Treaty.

Each of the Allied Powers reserves the right to treat as void and of
no effect any transfer in whole or in part of or other dealing with
rights of or in respect of industrial, literary or artistic property
effected after August 1, 19l4, or in the future, which would have the
result of defeating the objects of the provisions of this Article.

The provisions of this Article shall not apply to rights in
industrial, literary or artistic property which have been dealt with
in the liquidation of businesses or companies under war legislation by
the Allied Powers, or which may be so dealt with by virtue of Article
289.

ARTICLE 282

A minimum of one year after the coming into force of the present
Treaty shall be accorded to the nationals of the High Contracting
Parties, without extension fees or other penalty, in order to enable
such persons to accomplish any act, fulfil any formality, pay any
fees, and generally satisfy any obligation prescribed by the laws or
regulations of the respective States relating to the obtaining,
preserving or opposing rights to, or in respect of, industrial
property either acquired before August 1, 1914, or which, except for
the war, might have been acquired since that date as a result of an
application made before the war or during its continuance.

All rights in, or in respect of, such property which may have lapsed
by reason of any failure to accomplish any act, fulfil any formality,
or make any payment shall revive, but subject in the case of patents
and designs to the imposition of such conditions as each Allied Power
may deem reasonably necessary for the protection of persons who have
manufactured or made use of the subject-matter of such property while
the rights had lapsed. Furhter, where rights to patents or designs
belonging to Turkish nationals are revived under this Article, they
shall be sub]ect in respect of the grant of licences to the same
provisions as would have been applicable to them during the war, as
well as to all the provisions of the present Treaty.

The period from August 1, 1914, until the coming into force of the
present Treaty shall be excluded in considering the time within which
a patent should be worked or a trade-mark or design used, and it is
further agreed that no patent, registered trade-mark or design in
force on August 1, 1914, shall be subject to revocation or
cancellation by reason only of the failure to work such patent or use
such trade-mark or design for two years after the coming into force of
the present Treaty.

ARTICLE 283.

No action shall be brought and no claim made by persons residing or
carrying on business within the territories of Turkey on the one part
and of the Allied Powers on the other, or persons who are nationals of
such Powers respectively, or by any one deriving title during the war
from such persons, by reason of any action which has taken place
within the territory of the other party between the date of the
existence of a state of war and that of the coming into force of the
present Treaty, which might constitute an infringement of the rights
of industrial property or rights of literary and artistic property,
either existing at any time during the war or revived under the
provisions of Article 282.

Equally, no action for infringement of industrial, literary or
artistic property rights by such persons shall at any time be
permissible in respect of the sale or offering for sale for a period
of one year after the signature of the present Treaty in the
territories of the Allied Powers on the one hand, or Turkey on the
other, of products or articles manufactured, or of literary or
artistic works published, during the period between the existence of a
state of war and the signature of the present Treaty, or against those
who have acquired and continue to use them. It is understood,
nevertheless, that this provision shall not apply when the possessor
of the rights was domiciled or had an industrial or commercial
establishment in the districts occupied by Turkey during the war.

ARTICLE 284.

Licences in respect of industrial, literary or artistic property
concluded before the war between nationals of the Allied Powers or
persons residing in their territory or carrying on business therein on
the one part, and Turkish nationals on the other part shall be
considered as cancelled as from the date of the existence of a state
of war between Turkey and the Allied Power. But in any case the former
beneficiary of a contract of this kind shall have the right, within a
period of six months after the coming into force of the present
Treaty, to demand from the proprietor of the rights the grant of a new
licence, the conditions of which in default of agreement between the
parties, shall be fixed by the duly qualified tribunal in the country
under whose legislation the rights had been acquired, except in the
case of licences held in respect of rights acquired under Turkish
law. In such cases the conditions shall be fixed by the Arbitral
Commission referred to in Article 287. The tribunal or the Commission
may, if necessary, fix also the amount which it may deem just should
be paid by reason of the use of the rights during the war.

No licence in respect of industrial, literary or artistic property
granted under the special war legislation of any Allied Power shall be
affected by the continued existence of any licence entered into before
the war, but shall remain valid and of full effect, and a licence so
granted to the former beneficiary of a licence entered into before the
war shall be considered as substituted for such licence.

Where sums have been paid during the war by virtue of a licence or
agreement concluded before the war in respect of rights of industrial
property or for the reproduction or the representation of literary,
dramatic or artistic works, these sums shall be dealt with in the same
manner as other debts or credits of Turkish nationals as provided by
the present Treaty.

ARTICLE 285.

The inhabitants of territories detached from Turkey under the present
Treaty shall, notwithstanding this transfer and the change of
nationality consequent thereon, continue to enjoy in Turkey all the
rights in industrial, literary and artistic property to which they
were entitled under Turkish legislation at the time of the transfer.

Rights of industrial, literary and artistic property which are in
force in the territories detached from Turkey under the present Treaty
at the moment of the transfer, or which will be re-established or
restored in accordance with the provisions of Article 281, shall be
recognised by the State to which the said territory is transferred,
and shall remain in force in that territory for the same period of
time given them under the Turkish law.

[Hovik]

ARTICLE 286.

A special convention shall determine all questions relative to the
records, registers and copies in connection with the protection of
industrial, literary or artistic property, and fix their eventual
transmission or communication by the Turkish offices to the offices of
the States in favour of which territory is detached from Turkey.

SECTION IV.

PROPERTY, RIGHTS AND INTERESTS.

ARTICLE 287.

The property, rights and interests situated in territory which was
under Turkish sovereignty on August 1, 1914, and belonging to
nationals of Allied Powers who were not during the war Turkish
nationals, or of companies controlled by them, shall be immediately
restored to their owners free of all taxes levied by or under the
authority of the Turkish Government or authorities, except such as
would have been leviable in accordance with the capitulations. Where
property has been confiscated during the war or sequestrated in such a
way that its owners enjoyed no benefit therefrom, it shall be restored
free of all taxes whatever.

The Turkish Government shall take such steps as may be within its
power to restore the owner to the possession of his property free from
all encumbrances or burdens with which it may have been charged
without his assent. It shall indemnify all third parties injured by
the restitution.

If the restitution provided for in this Article cannot be effected, or
if the property, rights or interests have been damaged or injured,
whether they have been seized or not, the owner shall be entitled to
compensation. Claims made in this respect by the nationals of Allied
Powers or by companies controlled by them shall be investigated and
the total of the compensation shall be determined by an Arbitral
Commission to be appointed by the Council of the League of
Nations. This compensation shall be borne by the Turkish Government
and may be charged upon the property of Turkish nationals within the
territory or under the control of the claimant's State. So far as it
is not met from this source it shall be satisfied out of the annuity
referred to in Article 236 (ii), Part VIII. (Financial Clauses) of the
present Treaty.

The above provision shall not impose any obligation on the Turkish
Government to pay compensation for damage to property, rights and
interests effected since October 30, 1918, in territory in the
effective occupation of the Allied Powers and detached from Turkey by
the present Treaty. Compensation for any actual damage to such
property, rights and interests inflicted by the occupying authorities
since the above date shall be a charge on the Allied authorities
responsible.

ARTICLE 288.

The property, rights and interests in Turkey of former Turkish
nationals who acquire ipso facto the nationality of an Allied Power or
of a new State in accordance with the provisions of the present
Treaty, or any further Treaty regulating the disposal of territories
detached from Turkey, shall be restored to them in their actual
condition.

ARTICLE 289.

Subject to any contrary stipulations which may be provided in the
present Treaty, the Allied Powers reserve the right to retain and
liquidate all property, rights and interests of Turkish nationals, or
companies controlled by them, within their territories, colonies,
possessions and protectorates, excluding any territory under Turkish
sovereignty on October 17, 19l2.

The liquidation shall be carried out in accordance with the laws of
the Allied Power concerned, and the Turkish owner shall not be able to
dispose of such property, rights, or interests, or to subject them to
any charge, without the consent of that Power.

ARTICLE 290.

Turkish nationals who acquire ipso facto the nationality of an Allied
Power or of a new State in accordance with the provisions of the
present Treaty, or any further Treaty regulating the disposal of
territories detached from Turkey, will not be considered as Turkish
nationals within the meaning of the fifth paragraph of Article 281,
Articles 282, 284, the third paragraph of Article 287, Articles 289,
29I, 292, 293, 30I, 302, and 308.

ARTICLE 291.

All property, rights and interests of Turkish nationals within the
territory of any Allied Power, excluding any territory under Turkish
sovereignty on October 17, 1912, and the net proceeds of their sale,
liquidation or other dealing therewith may be charged by that Allied
Power with payment of amounts due in respect of claims by the
nationals of that Allied Power under Article 287 or in respect of
debts owing to them by Turkish nationals.

The proceeds of the liquidation of such property, rights and interests
not used as provided in Article 289 and the first paragraph of this
Article shall be paid to the Financial Commission to be employed in
accordance with the provisions of Article 236 (ii), Part VIII
(Financial Clauses) of the present Treaty.

ARTICLE 292.

The Turkish Government undertakes to compensate its nationals in
respect of the sale or retention of their property, rights or
interests in Allied countries.

ARTICLE 293

The Governments of an Allied Power or new State exercising authority
in territory detached from Turkey in accordance with the present
Treaty or any other Treaty concluded since October 17, 1912, may
liquidate the property, rights and interests of Turkish companies or
companies controlled by Turkish nationals in such territory; the
proceeds of the liquidation shall be paid direct to the company.

This Article shall not apply to companies in which Allied nationals,
including those of the territories placed under mandate, had on August
1, 1914, a preponderant interest.

The provisions of the first paragraph of this Article relating to the
payment of the proceeds of liquidation do not apply in the case of
railway undertakings where the owner is a Turkish company in which the
majority of the capital or the control is held by German, Austrian,
Hungarian or Bulgarian nationals either directly or through their
interests in a company controlled by them, or was so held on August 1,
1914. In such case the proceeds of the liquidation shall be paid to
the Financial Commission.

ARTICLE 294.

The Turkish Government shall, on the demand of the Principal Allied
Powers, take over the undertaking, property, rights and interests of
any Turkish company holding a railway concession in Turkish territory
as it results from the present Treaty, and shall transfer in
accordance with the advice of the Financial Commission the said
undertaking, property, rights and interests, together with any
interest which it may hold in the line or in the undertaking, at a
price to be fixed by an arbitrator nominated by the Council of the
League of Nations. The amount of this price shall be paid to the
Financial Commission and shall be distributed by it, together with any
amount received in accordance with Article 293, among the persons
directly or indirectly interested in the company, the proportion
attributable to the interests of nationals of Germany, Austria,
Hungary or Bulgaria being paid to the Reparation Commission
established under the Treaties of Peace with Germany, Austria, Hungary
and Bulgaria respectively; the proportion of the price attributable to
the Turkish Government shall be retained by the Financial Commission
for the purposes referred to in Article 236, Part Vlll (Financial
Clauses) of the present Treaty.

ARTICLE 295.

Until the expiration of a period of six months from the coming into
force of the present Treaty, the Turkish Government will effectively
prohibit all dealings with the property, rights and interests within
its territory which belong, at the date of the coming into force of
the present Treaty, to Germany, Austria, Hungary, Bulgaria or their
nationals, except in so far as may be necessary for the carrying into
effect of the provisions of Article 260 of the Treaty of Peace with
Germany or any corresponding provisions in the Treaties of Peace with
Austria, Hungary or Bulgaria.

Subject to any special stipulations in the present Treaty affecting
property of the said States, the Turkish Government will proceed to
liquidate any of the property, rights or interests above referred to
which may be notified to it within the said period of six months by
the Principal Allied Powers. The said liquidation shall be effected
under the direction of the said Powers and in the manner indicated by
them. The prohibition of dealings with such property shall be
maintained until the liquidation is completed.

The proceeds of liquidation shall be paid direct to the owners, except
where the property so liquidated belongs to the German, Austrian,
Hungarian or Bulgarian States, in which event the proceeds shall be
handed over to the Reparation Commission established under the Treaty
of Peace with the State to which the property belonged.

ARTICLE 296.

The Governments exercising authority in territory detached from Turkey
in accordance with the present Treaty may liquidate any property,
rights and interests within such territory which belong at the date of
the coming into force of the present Treaty to Germany, Austria,
Hungary, Bulgaria or their nationals, unless they have been dealt with
under the provisions of Article 260 of the Treaty of Peace with
Germany or any corresponding provisions in the Treaties of Peace with
Austria, Hungary or Bulgaria.

The proceeds of liquidation shall be disposed of in the manner
provided in Article 295.

ARTICLE 297.

If on the application of the owner the Arbitral Commission provided
for in Article 287 is satisfied that the conditions of sale of any
property liquidated in virtue of Articles 293, 295 or 296, or measures
taken outside its general legislation by the Government exercising
authority in the territory in which the property was situated, were
unfairly prejudicial to the price obtained, the Commission shall have
discretion to award to the owner equitable compensation to be paid by
that Government.

ARTICLE 298.

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 Allied Powers made or given, or purporting to be made or
given, in pursuance of war legislation with regard to enemy property,
rights and interests in their territories 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 such property in which they may be
interested, whether or not such interests are specifically mentioned
in the order, direction, 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 comapny in
the territories of the Allied Powers, 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 Allied Powers, 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.

ARTICLE 299.

The validity of any measures taken between October 30, 1918, and the
coming into force of the present Treaty by or under the authority of
one or more of the Allied Powers in regard to the property, rights and
interests in Turkish territory of Germany, Austria, Hungary or
Bulgaria or their nationals is confirmed.

Any balance remaining under the control of the Allied Powers as the
result of such measures shall be disposed of in the manner provided in
the last paragraph of Article 295.

[Hovik]

ARTICLE 300.

No claim or action shall be made or brought against any Allied 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
Turkey or by or on behalf of any person wherever resident who on
August 1, 19l4, was a Turkish national, or who became such after that
date, in respect of any act or omission with regard to the property,
rights or interests of Turkish nationals 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 Power.

ARTICLE 301.

The Turkish Government, if required, will, within six months from the
coming into force of the present Treaty, deliver to each Allied Power
any securities, certificates, deeds or documents of title held by its
nationals and relating to property, rights or interests which are
subject to liquidation in accordance with the provisions of the
present Treaty, including any shares, stock, debentures, debenture
stock or other obligations of any company incorporated in accordance
with the laws of that Power.

The Turkish Government will, at any time on demand of any Allied Power
concerned, furnish such information as may be required with regard to
such property, rights and interests, or with regard to any
transactions concerning such property, rights or interests since July
1, 1914.

ARTICLE 302.

Debts, other than the Ottoman Public Debt provided for in Article 236
and Annex I, Part VIII (Financial Clauses) of the present Treaty,
between the Turkish Government or its nationals resident in Turkish
territory on the coming into force of the present Treaty (with the
exception of Turkish companies controlled by Allied groups or
nationals) on the one hand, and the Governments of the Allied Powers
or their nationals who were not on August 1, 19l4, Turkish nationals
or (except in the case of foreign officials in the Turkish service, in
regard to their salaries, pensions or official remuneration) resident
or carrying on business in Turkish territory, on the other hand, which
were payable before the war, or became payable during the war and
arose out of transactions or contracts of which the total or partial
execution was suspended on account of the war, shall be paid or
credited in the currency of such one of the Allied Powers, their
colonies or protectorates, or the British Dominions or India, as may
be concerned. If a debt was payable in some other currency the
conversion shall be effected at the pre-war rate of exchange.

For the purpose of this provision the pre-war rate of exchange shall
be defined as the average cable transfer rate prevailing in the Allied
country concerned during the month immediately preceding the outbreak
of war between the said country and Turkey.

If a contract provides for a fixed rate of exchange governing the
conversion of the currency in which the debt is stated into the
currency of the Allied Power concerned, then the above provisions
concerning the rate of exchange shall not apply.

The proceeds of liquidation of enemy property, rights and interests
and the cash assets of enemies, referred to in this Section, shall
also be accounted for in the currency and at the rate of exchange
provided for above.

The provisions of this Article regarding the rate of exchange shall
not affect debts due to or from persons resident in territories
detached from Turkey in accordance with the present Treaty.

ARTICLE 303.

The provisions of Articles 287 to 302 apply to industrial literary and
artistic property which has been or may be dealt with in the
liquidation of property, rights, interests, companies or businesses
under war legislation by the Allied Powers, or in accordance with the
stipulations of the present Treaty.

SECTION V.

CONTRACTS, PRESCRIPTIONS, JUDGMENTS.

ARTICLE 304.

Subject to the exceptions and special rules with regard to particular
contracts or classes of contracts contained in the Annex hereto, any
contract concluded between enemies will be maintained or dissolved
according to the law of the Allied Power of which the party who was
not a Turkish subject on August 1, 1914, is a national, and on the
conditions prescribed by that law.

ARTICLE 305.

All periods of prescription or limitation of right of action, whether
they began to run before or after the outbreak of war, shall be
treated in the territory of the High Contracting Parties, so far as
regards relations between enemies, as having been suspended from
October 29, 19l4, till the coming into force of the present
Treaty. They shall begin to run again at earliest three months after
the coming into force of the present Treaty. This provision shall
apply to the period prescribed for the presentation of interest or
dividend coupons or for the presentation for repayment of securities
drawn for repayment or repayable on any other ground.

Having regard to the provisions of the law of Japan, neither the
present Article nor Article 304 nor the Annex hereto shall apply to
contracts made between Japanese nationals and Turkish nationals.

ARTICLE 306.

As between enemies no negotiable instrument made before the war shall
be deemed to have become invalid by reason only of failure within the
required time to present the instrument for acceptance or payment, or
to give notice of non-acceptance or non-payment to drawers or
endorsers, or to protest the instrument, nor by reason of failure to
complete any formality during the war.

Where the period within which a negotiable instrument should have been
presented for acceptance or for payment, or within which notice of
non-acceptance or non-payment should have been given to the drawer or
endorser, or within which the instrument should have been protested,
has elapsed during the war, and the party who should have presented or
protested the instrument or have given notice of non-acceptance or
non-payment has failed to do so during the war, a period of not less
than three months from the coming into force of the present Treaty
shall be allowed within which presentation, notice of non-acceptance
or non-payment or protest may be made.

ARTICLE 307.

Judgments given or measures of execution ordered during the war by any
Turkish judicial or administrative authority against or prejudicially
affecting the interests of a person who was at the time a national of
an Allied Power or against or affecting the interests of a company in
which such an Allied national was interested shall be subject to
revision, on the application of that national, by the Arbitral
Commission provided for in Article 287. Where such a course is
equitable and possible the parties shall be replaced in the situation
which they occupied before the judgment was given or the measure of
execution ordered by the Turkish authority. Where that is not
possible, the national of an allied power who has suffered prejudice
by the judgment or measure of execution shall be entitled to recover
such compensation as the Arbitral Commission may consider equitable,
such compensation to be paid by the Turkish Government.

Where a contract has been dissolved by reason either of failure on the
part of either party to carry out its provisions or of the exercise of
a right stipulated in the contract itself the party prejudiced may
apply to the Arbitral Commission. This Commission may grant
compensation to the prejudiced party, or may order the restoration of
any rights in Turkey which have been prejudiced by the dissolution
wherever, having regard to the circumstances of the case, such
restoration is equitable and possible.

Turkey shall compensate any third party who may be prejudiced by any
restitution or restoration effected in accordance with the provisions
of this Article.

ARTICLE 308.

All questions relating to contracts concluded before the coming into
force of the present Treaty between persons who were or have become
nationals of the Allied Powers or of the new States whose territory is
detached from Turkey and Turkish nationals shall be decided by the
national Courts or the consular Courts of the Allied Power or new
State of which one of the parties to the contract is a national, to
the exclusion of the Turkish Courts.

ARTICLE 309.

Judgments given by the national or consular Courts of an Allied Power
or new State whose territory is detached from Turkey, or orders made
by the Arbitral Commission provided for in Article 287, in all cases
which, under the present Treaty, they are competent to decide, shall
be recognised in Turkey as final, and shall be enforced without it
being necessary to have them declared executory

ANNEX

I. General Provisions.

I.
Within the meaning of Articles 304 to 306 and of the provisions of
this Annex, the parties to a contract shall be regarded as enemies
when trading between them became hnpossible in fact, or was prohibited
by or otherwise became unlawful under laws, orders or regulations to
which one of those parties was subject. They shall be deemed to have
become enemies from the date when such trading became impossible in
fact or was prohibited or otherwise became unlawful.

2. The following classes of contracts remain in force subject to the
application of domestic laws, orders or regulations made during the
war by the Allied Powers and subject to the terms of the contracts:

(a) Contracts having for their object the transfer of estates or of
real or personal property, where the property therein had passed or
the object had been delivered before the parties became enemies;

(b) Leases and agreements for leases of land and houses;

(c) Contracts of mortgage, pledge, or lien;

(d) Contracts between individuals or companies and the State,
provinces, municipalities, or other similar juridical persons charged
with administrative functions, and concessions granted by the State,
provinces, municipalities, or other similar juridical persons charged
with administrative functions, subject however to any special
provisions relating to concessions laid down in the present Treaty.

When the execution of the contracts thus kept alive would, owing to
the alteration of economic conditions, cause one of the parties
substantial prejudice, the Arbitral Commission provided for in Article
287 shall be empowered, on the request of the prejudiced party, to
grant to him equitable compensation by way of reparation.

II. Provisions Relating to Certain Classes of Contracts.

Stock Exchange and Commercial Exchange Contracts.

3 (a) Rules made during the war by any recognised Exchange or
Commercial Association providing for the closure of contracts entered
into before the war by an enemy are confirmed by the High Contracting
Parties, as also any action taken thereunder provided:

(1) That the contract was expressed to be made subject to the rules of
the Exchange or Association in question;

(2) That the rules applied to all persons concerned;

(3) That the conditions attaching to the closure were fair and
reasonable.

(b) The closure of contracts relating to cotton futures which were
closed as on July 31, 1914, under the decision of the Liverpool Cotton
Association, is also confirmed.

Security.

4
The sale of a security held for an unpaid debt owing by an enemy shall
be deemed to have been valid irrespective of notice to the owner if
the creditor acted in good faith and with reasonable care and
prudence, and no claim by the debtor on the ground of such sale shall
be admitted.

Negotiable Instruments.
5
If a person has either before or during the war become liable upon a
negotiable instrument in accordance with an undertaking given to him
by a person who has subsequently become an enemy, the latter shall
remain liable to indemnify the former in respect of his liability,
notwithstanding the outbreak of war.

III. Contracts of Insurance.
6.
The provisions of the following paragraphs shall apply only to
insurance and reinsurance contracts between Turkish nationals and
nationals of the Allied Powers in the case of which trading with
Turkey has been prohibited. These provisions shall not apply to
contracts between Turkish nationals and companies or individuals, even
if nationals of the Allied Powers, established in territory detached
from Turkey under the present Treaty.

In cases where the provisions of the following paragraphs do not
apply, contracts of insurance and reinsurance shall be subject to the
provisions of Article 304.

Fire Insurance.
7
Contracts for the insurance of property against fire entered into by a
person interested in such property with another person who
subsequently became an enemy shall not be deemed to have been
dissolved by the outbreak of war, or by the fact of the person
becoming an enemy, or on account of the failure during the war and for
a period of three months thereafter to perform his obligations under
the contract, but they shall be dissolved at the date when the annual
premium becomes payable for the first time after the expiration of a
period of three months after the coming into force of the present
Treaty.

A settlement shall be effected of unpaid premiums which became due
during the war, or of claims for losses which occurred during the war.

8.
Where by administrative or legislative action an insurance against
fire effected before the war has been transferred during the war from
the original to another insurer, the transfer will be recognised and
the liability of the original insurer will be deemed to have ceased as
from the date of the transfer. The original insurer will, however, be
entitled to receive on demand full information as to the terms of the
transfer, and if it should appear that these terms were not equitable,
they shall be amended so far as may be necessary to render them
equitable.

Furthermore, the insured shall, subject to the concurrence of the
original insurer, be entitled to retransfer the contract to the
original insurer as from the date of the demand.

Life Insurance.
9
Contracts of life insurance entered into between an insurer and a
person who subsequently became an enemy shall not be deemed to have
been dissolved by the outbreak of war or by the fact of the person
becoming an enemy.

Any sum which during the war became due upon a contract deemed not to
have been dissolved under the preceding provision shall be recoverable
after the war with the addition of interest at 5 per cent. per annum
from the date of its becoming due up to the day of payment.

Where the contract has lapsed during the war owing to non-payment of
premiums, or has become void from breach of the conditions of the
contract the assured or his representatives or the persons entitled
shall have the right at any time within twelve months of the coming
into force of the present Treaty to claim from the insurer the
surrender value of the policy at the date of its lapse or avoidance.

10.
Where contracts of life insurance have been entered into by a local
branch of an insurance company established in a country which
subsequently became an enemy country, the contract shall, in the
absence of any stipulation to the contrary in the contract itself, be
governed by the local law, but the insurer shall be entitled to demand
from the insured or his representatives the refund of sums paid or
claims made or enforced under measures taken during the war, if the
making or enforcement of such claims was not in accordance with the
terms of the contract itself or was not consistent with the laws or
treaties existing at the time when it was entered into.

11.
In any case where by the law applicable to the contract the insurer
remains bound by the contract, notwithstanding the non-payment of
premiums, until notice is given to the insured of the termination of
the contract, he shall be entitled where the giving of such notice was
prevented by the war to recover the unpaid premiums with interest at 5
per cent. per annum from the insured.

12.
Insurance contracts shall be considered as contracts of life assurance
for the purpose of paragraphs 9 to 11 when they depend on the
probabilities of human life combined with the rate of interest for the
calculation of the reciprocal engagements between the two parties.

Marine Insurance.
13.
Contracts of marine insurance, including time policies and voyage
policies, entered into between an insurer and a person who
subsequently became an enemy, shall be deemed to have been dissolved
on his becoming an enemy, except in cases where the risk undertaken in
the contract had attached before he became an enemy.

Where the risk had not attached, money paid by way of premium or
otherwise shall be recoverable from the insurer.

Where the risk had attached, effect shall be given to the contract,
notwithstanding the party becoming an enemy, and sums due under the
contract either by way of premiums or in respect of losses shall be
recoverable after the coming into force of the present Treaty.

In the event of any agreement being come to for the payment, of
interest on sums due before the war to or by the nationals of States
which have been at war and recovered after the war, such interest
shall in the case of losses recoverable under contracts of marine
insurance run from the expiration of a period of one year from the
date of the loss.

14.
No contract of marine insurance with an insured person who
subsequently became an enemy shall be deemed to cover losses due to
belligerent action by the Power of which the insurer was a national or
by the allies of such Power.

15.
Where it is shown that a person who had before the war entered into a
contract of marine insurance with an insurer who subsequently became
an enemy entered after the outbreak of war into a new contract
covering the same risk with an insurer who was not an enemy, the new
contract shall be deemed to be subtituted for theoriginal contract as
from the date when it was entered into, and the premiums payable shall
be adjusted on the basis of the original insurer having remained
liable on the contract only up till the time when the new contract was
entered into.

Other Insuronces.
16
Contracts of insurance entered before the war between an insurer and a
person who subsequently became an enemy, other than contracts dealt
with in paragraph 7 to 15, shall be treated in all respects on the
same footing as contracts of fire insurance between the same persons
would be dealt with under the said paragraphs.

Reinsurance.

[Hovik]

17.
All treatise of reinsurance with a person who became an enemy shall be
regarded as having been abrogated by the person becoming an enemy, but
without prejudice in the case of life or marine risks which had
attached before the war to the right to recover payment after the war
for sums due in respect of such risks.

Nevertheless, if, owing to invasion, it has been impossible for the
reinsured to find another reinsurer, the treaty shall remain in force
until three months after the coming into force of the present Treaty.

When a reinsurance treaty becomes void under this paragraph there
shall be an adjustment of accounts between the parties in respect both
of premiums paid and payable and of liabilities for losses in respect
of life or marine risk which had attached before the war. In the case
of risks other than those mentioned in paragraphs 9 to 15, the
adjustment of accounts shall be made as at the date of the parties
becoming enemies, without regard to claims for losses which may have
occurred since that date.

18.
The provisions of paragraph 17 will extend equally to reinsura.nces
existing at the date of the parties becoming enemies of particular
risks undertaken by the insurer in a contract of insurance against any
risk other than life or marine risks.

19.
Reinsurance of life risks effected by particular contracts and not
under any general treaty remain in force.

20.
In case of a reinsurance effected before the war of a contract of
marine insurance, the cession of a risk which had been ceded to the
reinsurer shall, if it had attached before the outbreak of war, remain
valid and effect be given to the contract, notwithstanding the
outbreak of war; sums due under the contract of reinsurance in respect
either of premiums or of losses shall be recoverable after the war.

21.
The provisions of paragraphs 14 and 15 and the last part of paragraph
13 shall apply to contracts for the reinsurance of marine risks.

SECTION VI.

COMPANIES AND CONCESSIONS.

ARTICLE 310.

In application of the provisions of Article 287, Allied nationals and
companies controlled by Allied groups or nationals holding concessions
granted before October 29, 1914, by the Turkish government or by any
Turkish local authority in territory remaining Turkish under the
present Treaty, or holding concessions which may be assigned to them
by the Financial Commission in virtue of Article 294, shall be
replaced by such Government or authorities in complete possession of
the rights resulting from the original concession contract and any
subsequent agreements prior to October 29, 1914. The Turkish
Government undertakes to adapt such contracts or agreements to the new
economic conditions, and to extend them for a period equal to the
interval between October 29, 1914, and the coming into force of the
present Treaty. In cases of dispute with the Turkish Government the
matter shall be submitted to the Arbitral Commission referred to in
Article 287.

All legislative or other provisions, all concessions and all
agreements subsequent to October 29, 1914, and prejudicial to the
rights referred to in the preceding paragraph shall be declared null
and void by the Turkish Government.

The concessionnaires referred to in thls Article may, if the Financial
Commission approves, abandon the whole or part of the compensation
accorded to them by the Arbitral Commission under the conditions laid
down in Article 287 for damage or loss suffered during the war, in
exchange for contractual compensation.

ARTICLE 311 .

In territories detached from Turkey to be placed under the authority
or tutelage of one of the Principal Allied Powers, Allied nationals
and companies controlled by Allied groups or nationals holding
concessions granted before October 29, 1914, by the Turkish Government
or by any Turkish local authority shall continue in complete enjoyment
of their duly acquired rights and the Power concerned shall maintain
the guarantees granted or shall assign equivalent ones.

Nevertheless, any such Power, if it considers that the maintenance of
any of these concessions would be contrary to the public interest,
shall be entitled, within a period of six months from the date on
which the territory is placed under its authority or tutelage, to buy
out such concession or to propose modifications therein; in that event
it shall be bound to pay to the concessionnaire equitable compensation
in accordance with the following provisions.

If the parties cannot agree on the amount of such compensation, it
will be determined by Arbitral Tribunals composed of three members,
one designated by the State of which the concessionnaire or the
holders of the majority of the capital in the case of a company is or
are nationals, one by the Government exerising authority in the
territory in question, and the third designated, failing agreement
between the parties, by the Council of the League of Nations.

The Tribunal shall take into account, from both the legal and
equitable standpoints, all relevant matters, on the basis of the
maintenance of the contract adapted as indicated in the following
paragraph.

The holder of a concession which is maintained in force shall have the
right, within a period of six months after the expiration of the
period specified in the second paragraph of this Article, to demand
the adaptation of his contract to the new economic conditions, and in
the absence of agreement direct with the Governrnent concerned the
decision shall be referred to the Arbitral Commission provided for
above.

ARTICLE 312.

In all territories detached from Turkey, either as a result of the
Balkan Wars in 1913, or under the present Treaty, other than those
referred to in Article 311, the State which definitively acquires the
territory shall ipso facto succeed to the duties and charges of Turkey
towards concessionnaires and holders of contracts, referred to in the
first paragraph of Article 311, and shall maintain the guarantees
granted or assign equivalent ones.

This succession shall take effect, in the case of each acquiring
State, as from the coming into force of the Treaty under which the
cession was effected. Such State shall take all necessary steps to
ensure that the concessions may be worked and the carrying out of the
contracts proceeded with without interruption.

Nevertheless, as from the coming into force of the present Treaty,
negotiations may be entered into between the acquiring States and the
holders of contracts or concessions, with a view to a mutual agreement
for bringing such concessions and contracts into conformity with the
legislation of such States and the new economic conditions. Should
agreement not have been reached within six months, the State or the
holders of the concessions or contracts may submit the dispute to an
Arbitral Tribunal constituted as provided in Article 311.

ARTICLE 313.

The application of Articles 311 and 312 shall not give rise to any
award of compensation in respect of the right to issue paper money.

ARTICLE 314.

The Allied Powers shall not be bound to recognise in territory
detached from Turkey the validity of the grant of any concession
granted by the Turkish Government or by Turkish local authorities
after October 29, 1914, nor the validity of the transfer of any
concession effected after that date. Any such concessions and
transfers may be declared null and void, and their cancellation shall
give rise to no compensation.

ARTICLE 315.

All concessions or rights in concessions granted by the Turkish
Government since October 30, 1918, and all such concessions or rights
granted since August 1, 1914, in favour of German, Austrian,
Hungarian, Bulgarian or Turkish nationals or companies controlled by
them, until the date of the coming into force of the present Treaty,
are hereby annulled.

ARTICLE 316.

(a) Any company incorporated in accordance with Turkish law and
operating in Turkey which is now or shall hereafter be controlled by
Allied nationals shall have the right, within five years from the
coming into force of the present Treaty, to transfer its property,
rights and interests to another company incorporated in accordance
with the law of one of the Allied Powers whose nationals control it;
and the company to which the property, rights and interests are
transferred shall continue to enjoy the same rights and privileges as
the other company enjoyed under the laws of Turkey and the terms of
the present Treaty, subject to meeting obligations previously
incurred.

The Turkish Government undertakes to modify its legislation so as to
allow companies of Allied nationality to hold concessions or contracts
in Turkey.

(b) Any company incorporated in accordance with Turkish law and
operating in territory detached from Turkey, which is now or hereafter
shall be controlled by Allied nationals, shall, in the same way and
within the same period, have the right to transfer its property,
rights and interests to another company incorporated in accordance
with the law either of the State exercising authority in the territory
in question or of one of the Allied Powers whose nationals control
it. The company to which the property, rights and interests are
transferred shall continue to enjoy the same rights and privileges as
the other company enjoyed, including those conferred on it by the
present Treaty.

(c) In Turkey companies of Allied nationality to which the property,
rights and interests of Turkish companies shall have been transferred
in virtue of paragraph (a) of this Article, and, in territories
detached from Turkey, companies of Turkish nationality controlled by
Allied groups or nationals and companies of nationality other than
that of the State exercising authority in the territory in question to
which the property, rights and interests of Turkish companies shall
have been transferred in virtue of paragraph (b) of this Article,
shall not be subjected to legislative or other provisions or to taxes,
imposts or charges more onerous than those applied in Turkey to
similar companies possessing Turkish nationality, and in territory
detached from Turkey to those possessing the nationality of the State
exercising authority therein.

(d) The companies to which the property, rights and interests of
Turkish companies are transferred in virtue of paragraphs (a) and (b)
of this Article shall not be subjected to any special tax on account
of this transfer.

SECTION VII.

GENERAL PROVISION.

ARTICLE 317.

The term "nationals of the Allied Powers," wherever used in this Part
or in Part VIII (Financial Clauses), covers:

(I) All nationals, including companies and associations, of an Allied
Power or of a State or territory under the protectorate of an Allied
Power;

(2) The protected persons of the Allied Powers whose certificate of
protection was granted before August 1, 1914;

(3) Turkish financial, industrial and commercial companies controlled
by Allied groups or nationals, or in which such groups or nationals
possessed the preponderant interest on August 1, 1914

(4) Religious or charitable institutions and scholastic establishments
in which nationals or protected persons of the Allied Powers are
interested.

The Allied Powers will communicate to the Financial Comission, within
one year from the coming into force of the present Treaty, the list of
eompanies, institutions and establishments in which they consider that
their nationals possess a preponderant interest or are interested.

PART X.

AERIAL NAVIGATION.

ARTICLE 318

The aircraft of the Allied Powers shall have full liberty of passage
and landing over and in the territory and territorial waters of
Turkey, and shall enjoy the same privileges as Turkish aircraft,
particularly in case of distress by land or sea.

ARTICLE 319.

The aircraft of the Allied Powers shall, while in transit to any
foreign country whatever, enjoy the right of flying over the territory
and territorial waters of Turkey without landing, subject always to
any regulations which may be made by Turkey with the assent of the
Principal Allied Powers, and which shall be applicable equally to the
aircraft of Turkey and to those of the Allied countries.

ARTICLE 320.

Al. aerodromes in Turkey open to national public traffic shall be open
for the aircraft of the Allied Powers, and in any such aerodrome such
aircraft shall be treated on a footing of equality with Turkish
aircraft as regards charges of every description, including charges
for landing and accommodation.

In addition to the above-mentioned aerodromes, Turkey undertakes to
establish aerodromes in such localities as may be designated by the
Allied Powers within one year from the coming into force of the
present Treaty. The provisions of this Article will apply to such
aerodromes.

The Allied Powers reserve the right, in the event of the provisions of
this Article not being carried out, to take all necessary measures to
permit of international aerial navigation over the territory and
territorial waters of Turkey.