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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.
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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.
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3 The following shall be entitled to claim under the provisions of this Article:
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(a) United Nations and their nationals,
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(b) the successors of such nationals, and
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(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.
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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
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(a) injury to foreign property, rights or interests resulted therefrom; and
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(b) the injury inflicted could have been avoided without infringing such Ordinance, amendments
or regulations.
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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.
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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.
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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:
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(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;
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(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;
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(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;
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(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.
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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.
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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.
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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.
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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:
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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.
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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:
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(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.
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(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.
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2 For the purposes of this Chapter, the term “United Nations nationals” shall, except
as otherwise herein provided, mean:
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(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;
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(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.
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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:
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(a) decisions under Article 1 of this Chapter of the Federal Higher Authority referred
to in the Annex thereto;
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(b) decisions of an administrative court of first instance in regard to discriminatory
treatment under Article 3;
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(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;
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(d) decisions of the finance courts of first instance under Article 6;
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(e) decisions of the regular courts of first instance in contentious or non-contentious
matters under Article 7;
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(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.
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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.
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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.