1 Insofar as this has not already been done, the Federal Republic will take all steps necessary to ensure that the nations, persons and companies referred to in paragraph 3 of this Article shall be able to secure the return of their property in its present condition, and the restoration of their rights and interests, in the Federal territory to the extent to which such property, rights or interests suffered discriminatory treatment. The property, rights and interests of the nations, persons and companies referred to in paragraph 3 shall be freed by the Federal Republic from all encumbrances and charges of any kind to which they may have become subject as a result of discriminatory treatment. No costs shall be imposed either in connection with the return or restoration or with the removal of encumbrances or charges. Equitable conditions may, however, be imposed to prevent the unjust enrichment of any nation, person or company referred to in paragraph 3.
2 On the entry into force of the present Convention, the Federal Republic shall establish, and give adequate publicity to, the procedure described in the Annex to this Chapter for the filing and consideration of claims based on the provisions of this Article and for the satisfaction of awards based on such claims. Such claims shall be filed within twelve months from the establisment of such procedure. The Federal Republic shall also make available, so far as possible, all information concerning the administration by custodians of property, rights or interests to any interested party who may request it.
3 The following shall be entitled to claim under the provisions of this Article:
(a) United Nations and their nationals,
(b) the successors of such nationals, and
(c) companies organized under German law in which United Nations nationals own participation,
provided that such nationals or, except in the case of direct successors by inheritance or testamentary disposition, their successors were United Nations nationals at the date of the discriminatory treatment.
4 The term “discriminatory treatment” as used in this Article shall mean action of all kinds applied between 1 September 1939 and 8 May 1945 to any property, rights or interests, as a result of any exceptional measures which were not applicable generally to all non-German property, rights or interests, and giving rise to prejudice, deprivation or impairment without the free consent of the interested parties and without adequate compensation. Anything done or omitted under the German Ordinance on the Treatment of Enemy Properties of 15 January 1940 or any amendment thereto, or any other regulations having a similar purpose, may be held to amount to discriminatory treatment, even though within the scope of such Ordinance, amendments or regulations, where it appears that
(a) injury to foreign property, rights or interests resulted therefrom; and
(b) the injury inflicted could have been avoided without infringing such Ordinance, amendments or regulations.
6 The provisions of this Article are not intended to cover compensation for loss or damage to property, rights or interests due to discriminatory treatment or resulting indirectly or directly from the war by any other means, but shall not affect the right of any of the United Nations to advance during negotiation for a peace settlement any claim for compensation of this nature with respect to its own or its nationals' property, rights or interests.
Insofar as they affect foreign creditors of German debtors, the Federal laws on periods of limitation (including preclusion and prescription) of 28 December 1950 and 30 March 1951 (Gesetz über den Ablauf der durch Kriegs- oder Nachkriegsvorschriften gehemmten Fristen und Gesetz zur Erganzung des Gesetzes iiber den Ablauf der durch Kriegs- oder Nachkriegsvorschriften gehemmten Fristen, Bundesgesetzblatt 1950 Seite 821 und 1951 Teil I Seite 213) together with Allied High Commission Law No. 67 on the same subject, shall be maintained in force. This legislation shall be reviewed by the Federal Republic in agreement with the other Signatory States on the basis of the provisions of the Agreement on German External Debts, concluded in London on 27 February 1953, in so far as this legislation involves claims dealt with in that Agreement.
Without prejudice to the terms of the final peace settlement with Germany, the United Nations and their nationals shall enjoy, on the same basis as German nationals residing in the Federal territory, such compensation for war damage relating to property located in the Federal territory as may be provided by the Federal Republic or any of its Lander, but not Integration Aid (Eingliederungshilfe) or Housing Aid (Wohnraumhilfe).
The Federal Republic reaffirms that under German law the state of war shall not in itself be regarded as affecting obligations to pay pecuniary debts arising out of obligations and contracts which existed, and rights which were acquired, before the commencement of the state of war.
Any United Nations national, or the successor of such a national who is also a United Nations national, shall have the right to institute, within one year from the entry into force of the present Convention, an action for the revision of any judgment delivered by a German Court between 1 September 1939 and 8 May 1945 in any proceeding in which such national was a party and was physically, morally or legally unable to make adequate presentation of his case.
1 Pending a final settlement of claims against Germany arising out of the war, the persons defined in paragraph 2 of this Article, and their property, shall be exempt from any exceptional taxes, levies or imposts, the incidence of which is in fact on property, imposed for the specific purpose of meeting charges arising out of the war or out of reparation or restitution to any of the United Nations.
2 Where any such tax, levy or impost is levied only partly for the purposes described in paragraph 1 of this Article, the exemption to be granted shall in principle be proportionate to the part of such taxes, levies or imposts imposed for these purposes. In the particular cases of the levies prescribed by the legislation of the Bizonal Economic Council and by the corresponding legislation of the Lander of Rhineland-Palatinate, Baden and Württemberg-Hohenzollern, concerning Immediate Aid (Soforthilfe) and by the Law on Equalisation of Burdens of 14 August 1952 (Bundesgesetzblatt I Seite 446), the persons and property described in the following provisions of this Article shall be exempted, to the extent provided, from payments falling due in the six-year period from 1 April 1949 to 31 March 1955 as Immediate Aid levies, and as the property levy under the Equalisation of Burdens:
(a) natural persons who were nationals of any of the United Nations on the currency reform date (21 June 1948), and companies, associations of persons and trusts (Körperschaften, Personenvereinigungen und Vermögensmassen), which are independently liable for taxation under German law, organized under the laws of one of the United Nations, shall, if subject to unlimited tax liability, be exempted in respect of all property owned by them both on 21 June 1948 and on 8 May 1945 or, if subject to limited tax liability, in respect of all property owned by them in the Federal Republic or Berlin (West). Citizens of any territorial entity or nation referred to in sub-paragraph (c) of Article 1 of Allied High Commission Law No. 54 shall enjoy the same exemption if they had the nationality of any of the United Nations at any time between 1 September 1939 and 21 June 1948;
(b) companies organized under German law, which are independently liable for taxation, in which the natural persons or companies, associations of persons or trusts described in subparagraph (a) of this paragraph owned on 21 June 1948 and on 8 May 1945, directly or through the medium of other companies, a shareholding interest of at least 85 per cent, shall be exempted in proportion to such shareholding interest;
(c) natural persons who do not qualify for exemption under sub-paragraph (a) of this paragraph and who claim or have claimed restitution or compensation pursuant to the legislation referred to in sub-paragraph (a) of paragraph 1 of Article 1 of Chapter Three of the present Convention shall be exempted on the first DM 150,000 in value or amount of property of any kind which has been or will be transferred to them under orders, decisions or recorded agreements pursuant to such legislation which would be taxable under the provisions concerning Immediate Aid levies or the property levy under the Equalisation of Burdens;
(d) the exemptions prescribed in sub-paragraphs (a) to (c) inclusive of this paragraph shall not become inoperative on the ground that the property concerned has devolved upon other persons on or after 21 June 1948.
5 Where payments made under the provisions of the Immediate Aid by natural persons, companies, associations of persons and trusts entitled to exemption under paragraph 2 of this Article exceed amounts of the property levy falling due for the same period taking into account the provisions of paragraph 2, the overpayment shall, not later than three months after the effective date of the notice of assessment issued by the German tax office concerning the property levy, be either refunded or set off against liabilities due for payment or which become due within three months thereafter.
6 In cases in which natural persons, companies, associations of persons or trusts enjoy exemption from the property levy by virtue of this Article, the annual amount to be paid in respect of the property levy for the period after the expiration of the exemption period shall not, either because of this exemption or because of the nonpayment of the property levy or the Immediate Aid levy, be higher than the annual amount which would be payable by non-exempted natural persons, companies, associations of persons or trusts who have paid the Immediate Aid levy in full. If in computing the property levy the Immediate Aid levy is to be set off in the manner proposed in the draft law submitted to the Bundestag (Bundestag Document No. 3300), that is, by deduction of the Immediate Aid levy from the total liability for the property levy, then in cases where the Immediate Aid levy has not been imposed, three times the basic annual payment under the property levy is to be deducted from the total liability; the basic annual payment shall for this purpose be the amount resulting from the application of the annual contribution rates to the total liability.
7 In computing the liability for the purposes of any other levy under the Equalization of Burdens Law, natural persons, companies, associations of persons and trusts enjoying the exemptions under this Article shall be treated as though they had paid the full amount of the property levy.
8 In cases under sub-paragraph (b) of paragraph 2 of this Article both the company, and any shareholder who believes the company should be exempted with respect to his participation, shall be entitled to all legal remedies available.
In order to protect the interests of Foreign nationals, the following legislation shall be maintained in force:
1 Allied High Commission Law No. 8 on Industrial, Literary and Artistic Property Rights of Foreign Nations and Nationals, as amended by Allied High Commission Laws Nos. 30, 39, 41 and 66, together with the First and Second Implementing Ordinances under Allied High Commission Law No. 8 of 8 May 1950 and 9 November 1950 (Bundesgesetzblatt Seite 357 und Seite 785), shall be maintained in force.
2 However, the provisions of Allied High Commission Law No. 8, as amended, governing the settlement of disputes arising out of the application of that Law, shall be deemed to be amended as follows:
(a) an appeal may be taken to the Arbitral Commission on Property, Rights and Interests in Germany referred to in Article 12 of this Chapter from any decision of last instance of the Patent Office or of its Grand Senate or from any decision in the first instance of the regular courts, in accordance with the provisions of Article 12 of this Chapter and the Charter of the Arbitral Commission.
(b) the powers of the Occupation Authorities under the last sentence of Article 2 and paragraph 3 of Article 7 of Law No. 8 shall lapse.
2 For the purposes of this Chapter, the term “United Nations nationals” shall, except as otherwise herein provided, mean:
(a) natural persons who are nationals of any of the United Nations. Natural persons who have the nationality of one of the United Nations and also German nationality shall be deemed to be exclusively nationals of the United Nations if, at any time between 1 September 1939 and 8 May 1945, their property in Germany was subject to any of the provisions of the German Ordinance on the Treatment of Enemy Properties of 15 January 1940 or any amendment thereto, or any other regulations having a similar purpose, unless it was exempted therefrom by specific permission of the Reich Minister of Justice;
(b) juristic persons or associations of persons established under the laws of one of the United Nations.
If the Federal Republic concludes with any other Power, on matters within the scope of Articles 1 to 9 inclusive of this Chapter, arrangements more favourable to such other Power than the corresponding provisions of those Articles, the benefits of such new arrangements shall automatically be extended to all Powers benefiting from the corresponding provisions of those Articles.
In the expectation that such a policy will be applied by such Nations toward the Federal Republic, the Federal Republic declares its intention to pursue a general policy of non-discrimination toward the United Nations and their nationals and toward the property, rights and interests of such Nations and nationals, and in general to accord national and most-favoured nation treatment in matters affecting such Nations and nationals and their property, rights and interests in the field of establishment and navigation. The Federal Republic further declares its readiness to enter into treaties with the United Nations based on these principles.
1 The following decisions may be appealed to the Arbitral Commission on Property, Rights and Interests in Germany, referred to in Article 7 of Chapter Five of the present Convention, in accordance with the provisions of its Charter, upon application to the Commission by the party concerned within thirty days after the service thereof:
(a) decisions under Article 1 of this Chapter of the Federal Higher Authority referred to in the Annex thereto;
(b) decisions of an administrative court of first instance in regard to discriminatory treatment under Article 3;
(c) decisions of German courts of first instance (regular courts, administrative courts, finance courts or other courts) relating to the application of Articles 2, 4 and 5;
(d) decisions of the finance courts of first instance under Article 6;
(e) decisions of the regular courts of first instance in contentious or non-contentious matters under Article 7;
(f) decisions of the last instance of the German Patent Office or its Grand Senate under Allied High Commission Law No. 8 or decisions of the regular courts of first instance under that Law pursuant to Article 8.
Appeals under the last sentence of Article 2 and paragraph 3 of Article 7 of Allied High Commission Law No. 8, pending on the entry into force of the present Convention before the Patent Appeal Board established by Regulation No. 1 under Law No. 8 (amended), are hereby transferred to the Arbitral Commission and shall be dealt with by it in the same manner as appeals under this Article.
Appeal to the Arbitral Commission pursuant to sub-paragraphs (b) to (f) inclusive of this paragraph shall not bar the continuance of proceedings before the German courts and authorities on other issues in dispute. If, however, the Commission deems it necessary in order to protect the interests of a party to the proceeding it may order the stay of further proceedings before the German courts or authorities pending the Commission's decision on the question referred to it.
2 If the party affected by a decision referred to in sub-paragraphs (b) to (f) inclusive of paragraph 1 of this Article appeals from the decision to a German court instead of appealing to the Arbitral Commission, such party may not appeal thereafter to the Arbitral Commission against the decision of the German court of higher instance on points on which he could have appealed to the Arbitral Commission. If, in a decision referred to in sub-paragraphs (b) to (f) inclusive of paragraph 1, the requirements for an appeal to the Arbitral Commission did not exist, but if a German court of higher instance renders a decision which in the opinion of the party concerned violates the Articles of this Chapter referred to in paragraph 1, such party may appeal from the decision of the higher German court to the Arbitral Commission.
4 In any case referred to in paragraphs 1, 2 or 3 of this Article, the Commission may render a final decision or may remand the case to the court or authority concerned, with such instructions as the Commission deems necessary or appropriate.