3. VERSAILLES TREATY. ARTICLES INCORPORATED IN THE TREATIES WITH GERMANY AND AUSTRIA RELATING TO ENEMY PROPERTY. The Treaty of Peace with Germany incorporates section 1 of Part IV, and Parts V, VI,VIII, IX, X, XI, XII, XIV and XV of the Versailles Treaty. That with Austria incorporates the above, with the exception of section 1 of Part IV, and Part XV. Few of these articles are applicable to alien property. Those having to do with alien property are part IX," Financial Clauses," and part X, "Economic Clauses." Part IX. Financial Clauses. Article 252. Right of Allied Powers to dispose of enemy property. 253. Charges or mortgages in favor of Allied Powers or their nationals. Part X. Economic Clauses. Section III. (Article 296). Debts. IV. (Articles 297, 298). Property, rights and interests. V. (Articles 299-303). Contracts, prescriptions, judgments. Part IX consists of Articles 248 to 263. Of these we note the following: ARTICLE 252. [Right of Allied Powers to dispose of enemy property.] The right of each of the Allied and Associated Powers to dispose of enemy assets and property within its jurisdiction at the date of the coming into force of the present Treaty is not affected by the foregoing provisions. ARTICLE 253. [Charges or mortgages in favor of Allied Powers or their nationals.] Nothing in the foregoing provisions shall prejudice in any manner charges or mortgages lawfully effected in favour of the Allied or Associated Powers or their nationals respectively, before the date at which a state of war existed between Germany and the Allied or Associated Power concerned, by the German Empire or its constituent States, or by German nationals, on assets in their ownership at that date. Part X consists of Articles 264 to 312. Of these, Section I refers to Commercial Relations. Chapter (1) thereof refers to Customs Regulations, Duties and Restrictions, (2) to Shipping, (3) to Unfair Competition, (4) to the Treatment of Nationals of Allied and Associated Powers and, (5) General Articles. Of this last Chapter, section II is devoted to Treaties; section III to Debts; section IV to Property, Rights and Interests; section V to Contracts, Prescriptions, Judgments. Sections III, IV and V, with their annexes, are as follows: PART X. ECONOMIC CLAUSES. SECTION III. DEBTS. ARTICLE 296. There shall be settled through the intervention of clearing offices to be established by each of the High Contracting Parties within three months of the notification referred to in paragraph (e) hereafter the following classes of pecuniary obligations: (1) Debts payable before the war and due by a national of one of the Contracting Powers, residing within its territory, to a national of an Opposing Power, residing within its territory; (2) Debts which became payable during the war to nationals of one Contracting Power residing within its territory and arose out of transactions or contracts with the nationals of an Opposing Power, resident within its territory, of which the total or partial execution was suspended on account of the declaration of war; (3) Interest which has accrued due before and during the war to a national of one of the Contracting Powers in respect of securities issued by an Opposing Power, provided that the payment of interest on such securities to the nationals of that Power or to neutrals has not been suspended during the war; (4) Capital sums which have become payable before and during the war to nationals of one of the Contracting Powers in respect of securities issued by one of the Opposing Powers, provided that the payment of such capital sums to nationals of that Power or to neutrals has not been suspended during the war. The proceeds of liquidation of enemy property, rights and interests mentioned in Section IV and in the Annex thereto will be accounted for through the Clearing Offices, in the currency and at the rate of exchange hereinafter provided in paragraph (d), and disposed of by them under the conditions provided by the said Section and Annex. The settlements provided for in this Article shall be effected according to the following principles and in accordance with the Annex to this Section: (a) Each of the High Contracting Parties shall prohibit, as from the coming into force of the present Treaty, both the payment and the acceptance of payment of such debts, and also all communications between the interested parties with regard to the settlement of the said debts otherwise than through the Clearing Offices; (b) Each of the High Contracting Parties shall be respectively responsible for the payment of such debts due by its nationals, except in the cases where before the war the debtor was in a state of bankruptcy or failure, or had given formal indica tion of insolvency or where the debt was due by a company whose business has been liquidated under emergency legislation during the war. Nevertheless, debts due by the inhabitants of territory invaded or occupied by the enemy before the Armistice will not be guaranteed by the States of which those territories form part; (c) The sums due to the nationals of one of the High Contracting Parties by the nationals of an Opposing State will be debited to the Clearing Office of the country of the debtor, and paid to the creditor by the Clearing Office of the country of the creditor; (d) Debts shall be paid or credited in the currency of such one of the Allied and Associated Powers, their colonies or protectorates, or the British Dominions or India, as may be concerned. If the debts are payable in some other currency they shall be paid or credited in the currency of the country concerned, whether an Allied or Associated Power, Colony, Protectorate, British Dominion or India, 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 or Associated country concerned during the month immediately preceding the outbreak of war between the said country concerned and Germany. If a contract provides for a fixed rate of exchange governing the conversion of the currency in which |