sing from
contracts suspended by the war. For the adjustment of the proceeds of
the liquidation of enemy property and the settlement of other
obligations each participating State assumes responsibility for the
payment of all debts owing by its nationals to nationals of the enemy
States, except in case of pre-war insolvency of the debtor. The proceeds
of the sale of private enemy property in each participating State may be
used to pay the debts owed to the nationals of that State, direct
payment from debtor to creditor and all communications relating thereto
being prohibited. Disputes may be settled by arbitration by the courts
of the debtor country, or by the mixed arbitral tribunal. Any ally or
associated power may, however, decline to participate in this system by
giving six months' notice.

ENEMY PROPERTY

[Sidenote: Damages for private property seized or injured.]

Germany shall restore or pay for all private enemy property seized or
damaged by her, the amount of damages to be fixed by the mixed arbitral
tribunal. The allied and associated States may liquidate German private
property within their territories as compensation for property of their
nationals not restored or paid for by Germany. For debts owed to their
nationals by German nationals and for other claims against Germany,
Germany is to compensate its nationals for such losses and to deliver
within six months all documents relating to property held by its
nationals in allied and associated States. All war legislation as to
enemy property rights and interests is confirmed and all claims by
Germany against the allied or associated Governments for acts under
exceptional war measures abandoned.

[Sidenote: Pre-war contracts.]

Pre-war contracts between allied and associated nationals excepting the
United States, Japan, and Brazil and German nationals are cancelled
except for debts for accounts already performed.

AGREEMENTS

[Sidenote: Disputes as to transfers of property already made.]

For the transfer of property where the property had already passed,
leases of land and houses, contracts of mortgages, pledge or lien,
mining concessions, contracts with governments and insurance contracts,
mixed arbitral tribunals shall be established of three members, one
chosen by Germany, one by the associated States and the third by
agreement, or, failing which, by the President of Switzerland. They
shall have jurisdiction over all disputes as to contracts co