Foreign Relations of the United States, 1946, Paris Peace Conference: Documents, Volume IV

CFM Files

Draft Peace Treaty With Rumania⁹

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Preamble

The Union of Soviet Socialist Republics, the United Kingdom, the United States of America, Australia, the Byelorussian Soviet Socialist Republic, Canada, Czechoslovakia, India, New Zealand, the Ukrainian Soviet Socialist Republic, and the Union of South Africa, as the States which are at war with Roumania and actively waged war against the European enemy states with substantial military force, hereinafter called the Allied and Associated Powers, of the one part, and Roumania, of the other part;

Whereas Roumania, having become an ally of Hitlerite Germany and participating on her side in the war against the Union of Soviet Socialist Republics, the United Kingdom, the United States of America, and other United Nations, bears her share of responsibility for this war;

Whereas, however, Roumania, on August 24, 1944, entirely ceased military operations against the U.S.S.R., withdrew from the war against the United Nations, broke off relations with Germany and her satellites, and having concluded on September 12, 1944, an Armistice with the Governments of the Union of Soviet Socialist Republics, the United Kingdom and the United States of America,¹⁰ acting in the interests of all the United Nations, took an active part in the war against Germany, and

Whereas the Allied and Associated Powers and Roumania are respectively desirous of concluding a treaty of peace which will form the basis of friendly relations between them and settle questions still outstanding as a result of the events hereinbefore recited, thereby enabling the Allied and Associated Powers to support Roumania’s application to become a member of the United Nations and also to adhere to any convention concluded under the auspices of the United Nations;

Have therefore agreed to declare the cessation of the state of war and for this purpose to conclude the present Peace Treaty, and have accordingly appointed as their Plenipotentiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .^10a who, after presentation of their full powers, found in good and due form, have agreed on the following provisions:

Part I. Frontiers

Article 1

The frontiers of Roumania, shown on the map annexed to the present Treaty (Annex 1) shall be those which existed on January 1, 1941, with the exception of the Roumanian-Hungarian frontier, which is defined in Article 2 of the present Treaty.

The Soviet-Roumanian frontier is thus fixed in accordance with the Soviet-Roumanian Agreement of June 28, 1940, and the Soviet-Czechoslovak Agreement of June 29, 1945.

Article 2

The decision of the Vienna Award of August 30, 1940, is declared null and void. The frontier between Roumania and Hungary existing on January 1, 1938, is hereby restored.

Part II. Political Clauses

Section I

Article 3

Roumania shall take all measures necessary to secure to all persons under Roumanian jurisdiction, without distinction as to race, sex, language or religion, the enjoyment of human rights and of the fundamental freedoms including freedom of expression, of press and publication, of religious worship, of political opinion and of public meeting.

Article 4

Roumania, which in accordance with the Armistice Agreement has taken measures to set free, irrespective of citizenship and nationality, all persons held in confinement on account of their activities in favour of the United Nations or because of their sympathies with the United Nations, or because of their racial origin, and to repeal discriminatory legislation and restrictions imposed hereunder, undertakes to complete these measures and in future not to take any measures or enact any laws which would be incompatible with the objects and purposes mentioned in this Article.

Article 5

Roumania, which in accordance with the Armistice Agreement has taken measures for dissolving all organizations of a Fascist type on Roumanian territory, whether political, military or paramilitary, as well as other organizations conducting propaganda hostile to the Soviet Union or to any of the other United Nations, undertakes not to permit in future the existence and activities of organizations of that nature which have as their aim denial to the people of their democratic rights.

Article 6

1. Roumania shall take the necessary steps to ensure the apprehension and surrender for trial of:

a. Persons accused of having committed, ordered or abetted war crimes and crimes against peace or humanity;

b. Nationals of the Allied and Associated Powers accused of having violated their national law by treason or collaboration with the enemy during the war.

2. At the request of the United Nations Government concerned, Roumania will likewise make available as witnesses persons within its jurisdiction, whose evidence is required for the trial of the persons referred to in paragraph 1 of this Article.

3. Any disagreement concerning the application of the provisions of paragraphs 1 and 2 shall be referred by any of the Governments concerned to the Heads of the Diplomatic Missions in Bucharest of the U.S.S.R., U.K. and U.S.A. who will reach agreement with regard to the difficulty.

Section II

Article 7

Roumania undertakes to recognize the full force of the Peace Treaties concluded with Italy, Hungary, Bulgaria and Finland, and the agreements or arrangements which have been or will be reached by the Allied and Associated Powers in relation to Austria, Germany and Japan for the restoration of Peace.

Article 8

The state of war between Roumania and Hungary will terminate upon the coming into force both of the present Treaty of Peace and the Treaty of Peace between U.S.S.R., U.K., U.S.A., Australia, Byelorussian S.S.R., Canada, Czechoslovakia, India, New Zealand, Ukrainian S.S.R., Union of South Africa and Yugoslavia, of the one part and Hungary of the other part.

Article 9

Roumania undertakes to accept any arrangements which have been or may be agreed for the liquidation of the League of Nations and the Permanent Court of International Justice.

Roumania also undertakes to accept any arrangements which have been or may be agreed for the liquidation of the International Institute of Agriculture at Rome.

Article 10

1. Each Allied or Associated Power will notify Roumania, within a period of six months of the coming into force of the present Treaty, which pre-war bilateral treaties it desires to keep in force or revive. Any provisions not in conformity with the present Treaty shall however be deleted from the above-mentioned Treaties.

2. All treaties so notified will be registered with the Secretariat of the United Nations in accordance with Article 102 of the United Nations Charter.

3. All treaties not so notified are to be regarded as abrogated.

Part III. Naval, Military and Air Clauses

Article 11

The maintenance of land, sea and air armaments and fortifications will be closely restricted to meeting tasks of an internal character and local defence of frontiers. In accordance with the foregoing, Roumania is authorised to have armed forces consisting of not more than:

a. A land Army, including frontier troops, with a total strength of 120,000 personnel.

b. Anti-aircraft Artillery with a strength of 5,000 personnel.

c. A Navy with a personnel strength of 5,000 and a total tonnage of 15,000 tons.

d. An airforce, including any naval air arm, of 150 aircraft, including reserves, of which not more than 100 may be combat types of aircraft, with a total personnel strength of 8,000. Roumania shall not possess or acquire aircraft designed primarily as bombers with internal bomb-carrying facilities.

These strengths will in each case include combat, service and overhead personnel.

Article 12

The Roumanian Army, Air Force and Navy in excess of the above strength shall be disbanded within six months from the date of the coming into force of the present Treaty.

Article 13

Personnel not included in the Roumanian Army, Air Force and Navy respectively, will not receive any form of military training, military air training or naval training as defined in Annex 2.

Article 14

Roumania shall not possess, construct or experiment with any self-propelled or guided missiles or apparatus connected with their discharge, sea-mines of non-contact types actuated by influence mechanisms, torpedoes capable of being manned, submarines or other submersible craft or specialised types of assault craft.

Article 15

Roumania shall not retain, produce, otherwise acquire, or maintain facilities for the manufacture of war material in excess of that required for the maintenance of the armed forces permitted under Article 11 of the present Treaty.

Article 16

1. Excess war material of Allied origin shall be placed at the disposal of the Allied or Associated Power concerned according to the instructions given by that Power. Excess Roumanian war material will be placed at the disposal of the Government of the U.S.S.R., U.K. and U.S.A. Roumania will renounce all rights to this material.

2. War material of German origin or design in excess of that required for the armed forces permitted under the present Treaty will be placed at the disposal of the Governments of the U.S.S.R, U.K. and U.S.A. Roumania will not acquire or manufacture any war material of German origin or design, or employ or train any technicians, including military and civil aviation personnel, who are or have been nationals of Germany.

3. Excess war material mentioned in paragraphs 1 and 2, will be handed over or destroyed within one year from the coming into force of the Present Treaty.

4. A definition and list of war material for the purposes of the present Treaty are set out in Annex 3.

Article 17

Roumania undertakes to co-operate fully with the United Nations in order to ensure that Germany may not be able to take any action outside German territory in the direction of rearmament.

Article 18

Roumania undertakes not to acquire or manufacture civil aircraft which are of German or Japanese design or which embody major assemblies of German or Japanese manufacture or design.

Article 19

Each of the military, naval and air clauses of the present Treaty will remain in force until modified in whole or in part by agreement between the Allied and Associated Powers and Roumania, or after Roumania becomes a member of the United Nations, by agreement between the Security Council and Roumania.

Article 20

1. Roumanian prisoners of war will be repatriated as soon as possible in accordance with arrangements to be agreed upon with Roumania by the individual powers detaining them.

2. All costs, including maintenance costs, incurred in moving Roumanian prisoners of war from their respective assembly points, as chosen by the Government of the Allied or Associated Power concerned to the point of entry into Roumanian territory shall be borne by the Roumanian Government.

War Graves

Note.—The U.S. Delegation wishes to reserve its position with respect to an Article covering War Graves until the Peace Conference. The U.S.S.R. Delegation considers such an Article unnecessary.

Part IV. Withdrawal of Allied Troops From Roumania

Article 21

Upon the coming into force of the present Treaty, all Allied Forces will, within a period of 90 days, be withdrawn from Roumania, subject to the right of the Soviet Union to keep on Roumanian territory such armed forces as it may need for the maintenance of the lines of communication of the Red Army with the Soviet zone of occupation in Austria. All unused Roumanian currency and all Roumanian goods in possession of the Allied forces in Roumania, acquired pursuant to Article 10 of the Armistice, will be returned to the Roumanian Government within the same period of 90 days. Roumania, however, undertakes to make available such maintenance and facilities as may specifically be required for the maintenance of the lines of communication with the Soviet zone of occupation in Austria, for which due compensation will be made to the Roumanian Government.

Part V. Reparation and Restitution

Article 22

Losses caused to the Soviet Union by military operations and by the occupation by Roumania of Soviet territory will be made good by Roumania to the Soviet Union, but taking into consideration that Roumania has not only withdrawn from the war against the United Nations, but has declared and, in fact, waged war against Germany it is agreed that compensation for the above losses will be made by Roumania not in full but only in part, namely to the amount of 300 million United States dollars payable over 8 years from September 12, 1944, in commodities (oil-products, grain, timber, seagoing and river craft, sundry machinery, etc.).

The basis for calculating the settlement provided for in this Article will be the United States dollar at its gold parity on the day of the signing of the Armistice Agreement, i. e. 35 dollars for one ounce of gold.

Article 23

1. Roumania accepts the principles of the United Nations Declaration of January 5, 1943,¹¹ and will return property removed from United Nations territories.

2. The obligation to make restitution applies to all identifiable property at present in Roumania which was removed by force or duress by any of the Axis Powers from the territory of any of the United Nations, irrespective of any subsequent transactions by which the present holder of any such property has secured possession.

3. The Roumanian Government and the Government entitled to restitution may conclude agreements which will replace the provisions of the present Article.

4. The Roumanian Government undertakes to return the property referred to in the present Article in good order and, in this connexion, to bear all costs in Roumania relating to labour, materials and transport.

5. The Roumanian Government will co-operate with the United Nations in and will provide at its own expense all necessary facilities for, the search for and restitution of property liable to restitution under the present Article.

6. The Roumanian Government shall take the necessary measures to effect the return of property covered by this Article held in any third country by persons subject to Roumanian jurisdiction.

7. ^* Claims for the restitution of property shall be presented to the Roumanian Government by the Government of the country from whose territory the property was removed, it being understood that rolling stock shall be regarded as having been removed from the territory to which it originally belonged. The period during which such claims may be presented shall be six months from the date of coming into force of the present Treaty.

8. The burden of identifying the property and of proving ownership shall rest on the claimant government, and the burden of proving that the property was not removed by force or duress shall rest on the Roumanian Government.

Part VI. Economic Clauses

Article 24

1. Insofar as Roumania has not already done so, Roumania shall restore all the legal rights and interests in Roumania of the United Nations and their nationals as they existed on June 22, 1941, and shall return all property in Roumania including ships^** of the United Nations and their nationals as it now exists.

2. The Roumanian Government undertakes that all property, rights and interests passing under this Article shall be restored free of all encumbrances and charges of any kind to which they may have become subject as a result of the war and without the imposition of any charges by the Roumanian Government in connection with its return. The Roumanian Government will nullify all measures, including seizures, sequestration or control, taken by it against United Nations’ property between June 22, 1941 and the coming into force of the present Treaty. In cases where the property has not been returned within 6 months of the coming into force of the Treaty, application shall be made to the Roumanian authorities not later than 12 months from the coming into force of the Treaty, except in cases in which the claimant is able to show that he could not file his application within this period.

3. The Roumanian Government undertakes to invalidate transfers involving property, rights and interests of any description belonging to United Nations nationals, where such transfers resulted from force or duress exerted by Axis Governments or their agencies during the war.

4. U.S. proposal:

a. Where, as a result of the war, the property cannot be returned or the United Nations national has suffered a loss because of injury to the property, the Roumanian Government shall compensate the owner by the payment of a sum in lei sufficient at the date of payment to enable the recipient to purchase similar property or to make good the loss or damage suffered.

b. Sums in lei paid by the Roumanian Government under this Article shall be freely usable in Roumania but shall be subject to the foreign exchange control regulations which may be in force in Roumania from time to time. The Roumanian Government agrees to accord to United Nations nationals fair and equitable treatment with respect to the allocation of materials, and of foreign exchange required for the importation of materials, for the repair or rehabilitation of their properties in Roumania, and in no event to discriminate in these respects against nationals of the United Nations as compared with Roumanian nationals.

c. In cases where a corporation or association of any nationality other than that of one of the United Nations has suffered a loss of its property in Roumania as a result of the war, compensation in lei shall be paid by the Roumanian Government to United Nations nationals who have directly, or indirectly through intermediate corporations or associations of any nationality other than that of one of the United Nations, an ownership interest in the corporation or association which has suffered the loss. This compensation shall be that fractional part of the amount which would be required to enable the corporation or association to make good the loss or damage suffered, which the interest of the United Nations nationals constitutes of the totality of ownership interests in the corporation. Such compensation, however, shall not be required in case the Roumanian Government shall provide to the corporation or the association itself such full compensation or restoration as would be due under this Article if it were a corporation or association of one of the United Nations. In cases where the corporation or association receives from the Roumanian Government partial compensation for the damage or loss sustained, the United Nations nationals shall be paid by the Roumanian Government compensation in lei in an amount equal to their respective proportionate shares of the loss or damage for which the corporation or association does not itself receive compensation from the Roumanian Government. For purposes of this paragraph the extent of interest of a United Nations national shall be determined as of June 22, 1941, or the outbreak of war between the United Nation concerned and Roumania, as may be the more favorable to the United Nations national.

d. As used in this Article, the phrase “as a result of the war” included the consequences of any action taken by the Roumanian Government, any action taken by any of the belligerents, any action taken under the Armistice of September 12, 1944, and any action or failure to act caused by the existence of a state of war.

U.S.S.R. proposal:

Roumania recognizes the necessity for compensation for the property of the United Nations and their nationals in Roumania lost or damaged during the war. In view of the fact, however, that Roumania has not only withdrawn from the war against the United Nations, but declared war on, and effectively waged war against Germany, and in consideration of the losses sustained by Roumania in the course of military operations against Germany on Roumanian territory, it is agreed that such compensation will be made in part to the extent of one-third of the losses and will be paid in Roumanian lei.

The U.K. and French Delegations approved the U.S. proposal subject to reservation as to the drafting.

5. All reasonable expenses incurred in Roumania in establishing claims, including the assessment of loss or damage, shall be borne by the Roumanian Government.

6. United Nations nationals and their property shall be exempted from any exceptional taxes, levies or imposts, imposed on their capital assets in Roumania by the Roumanian Government, or any Roumanian authority between the date of the Armistice and the coming into force of the present Treaty for the specific purpose of meeting charges arising out of the war or of meeting the costs of occupying forces or of reparations payable to any of the United Nations. Any sums which have been so paid shall be refunded.

7. The owner of the property concerned and the Roumanian Government may agree upon arrangements in lieu of the provisions of this Article.

8. As used in this Article:

a. “United Nations nationals” means individuals who are nationals of any of the United Nations or corporations or associations organised under the laws of any of the United Nations at the date of the coming into force of the present Treaty, provided that they also had this status at the date of the Armistice with Roumania.

The term “United Nations nationals” also includes all individuals, corporations or associations which under the laws in force in Roumania during the war, have been treated as enemy.

b. “Owner” means the United Nations national, as defined in subparagraph a above, who is entitled to the property in question, and includes a successor of the owner, provided that the successor is also a United Nations national as defined in subparagraph a. If the successor has purchased the property in its damaged state, the transferor shall retain his rights to compensation under this Article, without prejudice to obligations between the transferor and the purchaser under domestic law.

c. “Property” means all movable and immovable property, whether tangible, or intangible including industrial, literary and artistic property, as well as all rights, estates or interests in property of any kind.

Article 25

Roumania recognises that the Soviet Union is entitled to all German assets in Roumania transferred to the Soviet Union by the Control Council for Germany and undertakes to take all necessary measures for facilitating such transfers.

Article 26

1. Each of the Allied and Associated Powers shall have the right to seize, retain, liquidate or take any other action with respect to all property, rights and interests within its territory which on the date of coming into force of the present Treaty belong to Roumania or to Roumanian nationals, and to apply such property or the proceeds thereof to such purposes as it may desire, within the limits of its claims and those of its nationals against Roumania or its nationals, including debts other than claims fully satisfied under other Articles of the present Treaty. All Roumanian property, or the proceeds thereof, in excess of the amount of such claims, shall be returned.

2. The liquidation and disposition of Roumanian property shall be carried out in accordance with the law of the Allied or Associated Power concerned. The Roumanian owner shall have no rights with respect to such property except those which may be given him by that law.

3. The Roumanian Government undertakes to compensate Roumanian nationals whose property is taken under this Article and not returned to them.

4. No obligation is created by this Article on any Allied or Associated Power to return industrial, literary or artistic property to the Roumanian Government or Roumanian nationals, or to include such property in determining the amounts which may be retained under paragraph 1 of this Article. The Government of each of the Allied and Associated Powers shall have the right to impose such limitations, conditions and restrictions on rights or interests with respect to industrial, literary and artistic property acquired prior to the coming into force of the present Treaty in the Territory of that Allied or Associated Power by the Government or nationals of Roumania, as may be deemed by the Government of the Allied or Associated Power to be necessary in the national interest.

5. The property covered by paragraph 1 of this Article shall be deemed to include Roumanian property which has been subject to control by reason of a state of war existing between Roumania and the Allied or Associated Power having jurisdiction over the property, but shall not include:

a. Property of the Roumanian Government used for consular or diplomatic purposes.

b. Property belonging to religious bodies or private charitable institutions and used for religious or charitable purposes.

c. Property of natural persons who are Roumanian nationals permitted to reside within the territory of the country in which the property is located or to reside elsewhere in United Nations’ territory, other than Roumanian property which at any time during the war was subjected to measures not generally applicable to the property of Roumanian nationals resident in the same territory.

d. Property rights arising since the resumption of trade and financial relations between Roumania and the Allied and Associated Powers, or arising out of transactions between Roumania and the Governments of any Allied or Associated Power since September 12, 1944.

Article 27

U.S.S.R. proposal:

1. Limitations imposed in respect of Roumanian property on the territory of Germany and on the territory of other countries which took part in the war on the side of Germany shall be withdrawn after the coming into force of the present treaty. The rights of Roumanian owners with respect to the disposal of the property in question shall be restored.

2. Roumania shall have the right to restitution of identifiable property which was compulsorily or forcibly removed from Roumania after August 24, 1944, and is at present in Germany.

The restitution of Roumanian property situated in the territory of Germany will be effected in accordance with the instructions of the military authorities of the Powers in occupation of Germany.

U.K., U.S. and French proposal:

Roumania hereby renounces on its own behalf and on behalf of Roumanian nationals all claims, including debts, against Germany and German nationals outstanding on May 8, 1945, except those arising out of contracts and other obligations entered into, and rights acquired, before September 1, 1939. This renunciation shall be deemed to include not only all inter-governmental claims in respect of arrangements entered into in the course of the war, but also all claims for loss or damage arising during the war. This renunciation shall be without prejudice to any dispositions in favour of Roumania or Roumanian nationals made by the Powers in occupation of Germany.

Article 28

1. The Contracting Parties agree that the existence of the state of war shall not, in itself, be regarded as affecting the obligations to pay pecuniary debts arising out of obligations and contracts which existed, and rights acquired, before the existence of a state of war, which became payable prior to the coming into force of the present Treaty, and which are due by the Government or nationals of Roumania to the Government or nationals of one of the Allied and Associated Powers or are due by the Government or nationals of one of the Allied and Associated Powers to the government or nationals of Roumania.

2. Except as otherwise expressly provided in the present Treaty, nothing therein shall be construed as impairing debtor-creditor relationships arising out of pre-war contracts concluded either by the Government or nationals of Roumania.

Article 29

1. Roumania waives all claims of any description against the Allied and Associated Powers on behalf of the Roumanian Government or Roumanian nationals arising directly out of the war or out of actions taken because of the existence of a state of war in Europe after September 1, 1939, whether or not the Allied or Associated Power was at war with Roumania at the time, including the following:

a. Claims for losses or damages sustained as a consequence of acts of forces or authorities of the Allied or Associated Powers;

b. Claims arising from the presence, operations or actions of forces or authorities of the Allied or Associated Powers in Roumanian territory;

c. Claims with respect to the decrees and orders of Prize Courts of the Allied or Associated Powers, Roumania agreeing to accept as valid and binding all decrees and orders of such Prize Courts on or after September 1, 1939, concerning Roumanian ships or Roumanian goods or the payment of costs;

d. Claims arising out of the exercise or purported exercise of belligerent rights.

2. The provisions of this Article will bar, completely and finally, all claims of the nature referred to herein, which will henceforward be extinguished, whoever may be the parties in interest. The Roumanian Government agrees to make equitable compensation in lei to persons who furnished supplies or services on requisition to the forces of the Allied and Associated Powers in Roumanian territory and in satisfaction of non-combat damage claims against the forces of the Allied and Associated Powers arising in Roumanian territory.

3. Roumania likewise waives all claims of the nature covered by paragraph 1 of this Article on behalf of the Roumanian Government or Roumanian nationals against any of the United Nations which severed diplomatic relations with Roumania and took action in cooperation with the Allied and Associated Powers.

4. The Roumanian Government will assume full responsibility for Allied military currency issued in Roumania by the Allied military authorities, including all such currency in circulation on the date of the coming into force of this Treaty.

5. The waiver of claims by Roumania under this Article includes any claims arising out of actions taken by any of the Allied and Associated Powers with respect to Roumanian ships between September 1, 1939, and the date of the coming into force of the present Treaty, as well as any claims and debts arising out of Conventions on prisoners of war now in force.

Article 30

1. Pending the conclusion of commercial treaties or agreements between Roumania and the United Nations, the Roumanian Government shall during the 18 months following the coming into force of the present Treaty grant the following treatment to each of the United Nations which, in fact, reciprocally grants similar treatment in like matters to Roumania:

a. In all that concerns duties and charges on importation or exportation the internal taxation of imported goods and all regulations pertaining thereto, the United Nations shall be granted unconditional most-favoured-nation treatment.

b. In all other respects, Roumania shall make no arbitrary discrimination against goods originating in or destined for any territory of any of the United Nations as compared with like goods originating in or destined for any other territory of the United Nations or of any other foreign country;

c. Natural and legal persons who are nationals of any of the United Nations shall be granted national and most-favoured-nation treatment in all matters pertaining to commerce, industry, shipping and other forms of business activity within Roumania …

The U.S.S.R. Delegation proposes the following text as an integral part of the paragraph:

… excluding certain branches where, in accordance with the internal legislation of the country, private enterprise does not take place.

The U.K., U.S. and French Delegations propose the following alternative to the U.S.S.R. proposal:

This paragraph shall not be deemed to confer on the United Nations, or their nationals, rights to engage in any branch of commerce, industry, shipping or other form of business activity which under Roumanian law is a monopoly of the Roumanian State. Nevertheless, the most-favoured-nation principle shall be observed in any such cases in which foreign participation is allowed.

Proposed further addition to this paragraph by the U.S. Delegation supported by U.K.

It is further understood that this paragraph shall not apply to civil aviation, but that Roumania will grant no exclusive or discriminatory right to any country with regard to the operation of civil aircraft in international traffic and will afford all the United Nations equality of opportunity for obtaining international commercial aviation rights in Roumanian territory.

The U.S.S.R. Delegation sees no reason for inclusion of this addition in the Treaty.

2. U.S.S.R. proposal:

The foregoing undertakings by Roumania shall be understood to be subject to the exceptions customarily included in commercial treaties concluded by Roumania before the war which relate to relations with neighbouring countries applied to them; and the provisions with respect to reciprocity granted by each of the United Nations shall be understood to be subject to the exceptions customarily included in the commercial treaties concluded by that Power.

French, U.K. and U.S. proposal:

The foregoing undertakings by Roumania shall be understood to be subject to the exceptions customarily included in commercial treaties concluded by Roumania before the war, and the provisions with respect to reciprocity granted by each of the United Nations shall be understood to be subject to the exceptions customarily included in the commercial treaties concluded by that Power.

Article 31

U.K. proposal:

Any disputes which may arise in connexion with Articles 23 and 24 and Annexes 4, 5 and 6 of the present Treaty shall be referred to a Conciliation Commission composed of an equal number of representatives of the United Nations Government concerned and of the Roumanian Government. If agreement has not teen reached within three months of the dispute having been referred to the Conciliation Commission, either Government may require the addition of a third member to the Commission, and failing agreement between the two Governments on the selection of this member, the President of the International Court of Justice shall be requested to make the appointment. The decisions of the Commission, as so constituted, shall be taken by the same procedure as is provided for decisions of the International Court itself in Articles 48 and 55–57 of the Statute of the Court and shall be final and binding on all parties.

U.S.S.R. proposal:

Any disputes which may arise in giving effect to the present Articles 23 and 24 of the present Treaty shall be referred to a Conciliation Commission consisting of an equal number of Representatives of the Government of the United Nations concerned and the Government of Roumania, appointed on an equal footing. If within 3 months after the dispute has been referred to the Conciliation Commission no agreement has been reached, either Government may ask for the addition to the Commission of a third member selected by mutual agreement of the two Governments from nationals of third countries. Should the two Governments fail to agree on the selection of a third member of the Commission, the Governments shall apply to the three Heads of the Diplomatic Missions in Bucharest of the U.S.S.R., U.K. and U.S., who will appoint the third member of the Commission.

The U.S. Delegation can accept either the U.K. proposal or the U.S.S.R. proposal provided the following sentence is added at the end of the latter.

If the three Heads of Mission are unable to agree within a period of one month upon the appointment of the third member, the Secretary-General of the United Nations shall be requested by either party to make the appointment.

The French Delegation has the same proposition as the U.S. Delegation provided Annexes 4, 5 and 6 are covered by the Article.

Article 32

Articles 23, 24 and 30 and Annex 6 of this Treaty shall apply to the Allied and Associated Powers and France and to those of the United Nations which have broken off diplomatic relations with Roumania.

Article 33

The provisions of Annexes 4, 5 and 6 shall, as in the case of the other Annexes, have force and effect as integral parts of the present Treaty.

Part VII. Clauses Relating to the Danube

Article 34

U.K. and U.S. proposal:

1. Navigation on the Danube River, its navigable tributaries and connecting canals shall be free and open on terms of entire equality to the nationals, vessels of commerce and goods of all states.

2. Sanitary, police and other laws and regulations applicable to the Danube River system shall be administered by Roumania in a nondiscriminatory manner and shall not unreasonably impede commercial navigation.

3. No obstacles or impediments to navigation shall be placed in the main channels of the Danube River system or along the shores thereof. Roumania undertakes to remove any existing obstacle or impediment in the main channels lying within its jurisdiction or to permit such removals by any international authority which may be established for the Danube River system.

4. No tolls, dues or other charges shall be levied by Roumania except for the purpose of defraying the cost of development and maintenance of the waterway in a commercially navigable condition; and no tolls, dues or other charges shall be levied with respect to navigation of any naturally navigable portion of the waterway. All tolls, dues and other charges shall be levied in such a manner as not to discriminate against nationals, vessels of commerce or goods of any state. The schedule of these charges shall be open for public inspection and shall be publicly displayed in appropriate places.

5. In the establishment, administration and operation of any interim or permanent international regime for the Danube River system, Roumania shall enjoy a status equal to that of the other member states.

6. Any dispute between the parties [to] the present Treaty with respect to the application or interpretation of this Article relating to the regime and conditions of navigation on the Danube River system, which cannot be resolved by negotiation, shall be submitted to a chamber of three or more judges formed by the International Court of Justice under Article 26 of its Statute.

U.K. Delegation propose to add:

A conference of all interested states, including Roumania will be convened within a period of six months of the coming into force of the present treaty to establish the new permanent international regime for the Danube.

U.S.S.R. proposal:

The question of the Danube cannot be solved by the Peace Treaties with Roumania, Bulgaria and Hungary since it has to be settled with the participation of the Danubian States which include Allied States such as Czechoslovakia and Yugoslavia. The Delegation of the U.S.S.R., therefore, proposes not [to] have the provisions relating to the Danube included in the Peace Treaties with Roumania, Bulgaria and Hungary.

Part VIII. Final Clauses

Article 35

For a period not to exceed 18 months from the coming into force of the present Treaty, the Heads of the Diplomatic Missions in Bucharest of the U.S.S.R., the U.K. and U.S. acting in concert, will represent the Allied and Associated Powers in dealing with the Roumanian Government in all matters concerning the execution and interpretation of the present Treaty.

The three Heads of Mission will give the Roumanian Government such guidance, technical advice and clarification as may be necessary to ensure rapid and efficient compliance with the spirit and terms of the present Treaty.

The Roumanian Government undertake to afford the said three Heads of Mission all necessary information and any assistance they may require in the fulfilment of the tasks devolving on them under the present Treaty.

Article 36

U.K. and U.S. proposal:

Except where any other procedure is specifically provided under any Article of the present Treaty, disputes concerning the interpretation or execution of the Treaty shall be referred to the three Heads of Mission acting as provided under Article 35 and, if not resolved by them within a period of two months, shall, at the request of any party to any dispute, be referred to the International Court of Justice. Any dispute still pending at, or arising after, the date when the Heads of Mission terminate their functions under Article 35, and which is not settled by direct diplomatic negotiations, shall equally, at the request of any party to the dispute, be referred to the International Court of Justice.

U.S.S.R. proposal:

Save where any other procedure is specifically provided under any Article of the present Treaty, disputes concerning the interpretation or execution of the Treaty shall be settled by direct diplomatic negations and, in case the disputes are not settled in this way, they shall be referred to the three Heads of Mission acting as provided under Article 35, except that in this case the Heads of Mission will not be restricted by the time-limit provided in that Article.

Article 37

Any other member of the United Nations not a signatory to the present Treaty which is at war with Roumania, may accede to the Treaty and upon accession will be deemed to be an Associated Power for the purposes of the Treaty.

Instruments of accession will be deposited with the Government of the U.S.S.R. and shall take effect upon deposit.

Article 38

The present Treaty, of which the Russian and English texts are authentic, shall be ratified by the Allied and Associated Powers. It shall also be ratified by Roumania. It will come into force immediately [upon] deposit of ratifications by the U.S.S.R., U.K. and U.S.A. The instruments of ratification will, in the shortest time possible, be deposited with the Government of the U.S.S.R.

With respect to each Allied and Associated Power whose instrument of ratification is thereafter deposited, the Treaty shall come into force upon the date of deposit. The present Treaty will be deposited in the archives of the Government of the U.S.S.R., which shall furnish certified copies to each of the signatory States.

Done in the city of . . . . . . . . . . . . in the Russian, English and Roumanian languages.

Annex 1

(See Article 1)

Map of the Roumanian Frontiers¹²

Annex 2

(See Article 13)

Definition of Naval, Military and Air Training

Military training is defined as: the study of and practice in the use of war material specially designed or adapted for army purposes, and training devices relative thereto; the study and carrying out of all drill or movements which teach or practice evolutions performed by fighting forces in battle; and the organised study of tactics, strategy and staff work.

Military air training is defined as: the study of and practice in the use of war material specially designed or adapted for air force purposes, and training devices relative thereto; the study and practice of all specialised evolutions, including formation flying, performed by aircraft in the accomplishment of an air force mission, and the organised study of air tactics, strategy and staff work.

Naval training is defined as: the study, administration or practice in the use of warships or naval establishments as well as the study or employment of all apparatus and training devices relative thereto, which are used in the prosecution of naval warfare except for those which are also normally used for civilian purposes; also the teaching, practice or organised study of naval tactics, strategy and staff work including the execution of all operations and manoeuvres not required in the peaceful employment of ships.

Annex 3

(See Article 15)

Definition and List of War Material

Definition of War Material:

The term: “war material” as used in this Treaty shall include all arms, ammunition and implements specially designed or adapted for use in war as listed below.

The Allied and Associated Powers reserve the right to amend by modification or addition, the list, periodically, in the light of subsequent scientific development.

Category I.

1) Military rifles, carbines, revolvers and pistols; barrels for these weapons and other spare parts not readily adaptable for civilian use.

2) Machine guns, military automatic or autoloading rifles, and machine pistols; barrels for these weapons and other spare parts not readily adaptable for civilian use; machine gun mounts.

3) Guns, howitzers, mortars, cannon special to aircraft; breechless or recoilless guns and flame-throwers, barrels and other spare parts not readily adaptable for civilian use; carriages and mountings for the foregoing.

4) Rocket projectors; launching and control mechanisms for self-propelling and guided missiles; mountings for same.

5) Self-propelling and guided missiles, projectiles, rockets, fixed ammunition and cartridges, filled or unfilled, for the arms listed in 1–4 inclusive above and fuses, tubes or contrivances to explode or operate them. Fuses required for civilian use are not included.

6) Grenades, bombs, torpedoes, mines, depth charges and incendiary material or charges, filled or unfilled; all means for exploding or operating them. Fuses required for civilian use are not included.

7) Bayonets.

Category II.

1) Armoured fighting vehicles; armoured trains, not technically convertible to civilian use.

2) Mechanical and self propelled carriages for any of the weapons listed in Category I; special type military chassis or bodies other than those enumerated in 1 above.

3) Armour plate, greater than three inches in thickness, used for protective purposes in warfare.

Category III.

1) Aiming and computing devices, including predictors and plotting apparatus, for fire control; direction of fire instruments; gun sights; bomb sights; fuse setters, calibration equipment for the calibration of guns and fire control instruments.

2) Assault bridging, assault boats and storm boats.

3) Deceptive warfare, dazzle and decoy devices.

4) Personal war equipment of a specialised nature not readily adaptable to civilian use.

Category IV.

1) Warships of all kinds, including converted vessels and craft designed or intended for their attendance or support, which cannot be technically reconverted to civilian use, as well as weapons, armour, ammunition, aircraft and all other equipment, material machines and installations not used in peace time on ships other than warships.

2) Landing craft and amphibious vehicles or equipment of any kind; assault boats or devices of any type as well as catapults or other apparatus for launching or throwing aircraft, rockets, propelled weapons or any other missile, instrument or device whether manned or unmanned, guided or uncontrolled.

3) Submersible or semi-submersible ships, craft, weapons, devices or apparatus of any kind, including specially designed harbour defence booms, except as required by salvage, rescue or other civilian uses, as well as all equipment, accessories, spare parts experimental or training aids, instruments or installations as may be especially designed for the construction, testing maintenance or housing of the same.

Category V.

1) Aircraft, assembled or unassembled, both heavier and lighter than air which are designed or adapted for aerial combat by the use of machine guns, rocket projectors, or Artillery or for the carrying and dropping of bombs, or which are equipped with, or which by reason of design or construction are prepared for, any of the appliances referred to in paragraph 2 below.

2) Aerial gun mounts and frames, bomb racks, torpedo carriers and bomb release or torpedo release mechanisms; gun turrets and blisters.

3) Equipment specially designed for and used solely by airborne troops.

4) Catapults or launching apparatus for ship-borne, land or sea-based aircraft; apparatus for launching aircraft weapons.

5) Barrage balloons.

Category VI.

Asphyxiating, lethal, toxic, incapacitating substances intended for war purposes, or manufactured in excess of civilian requirements.

Category VII.

Propellants, explosives, pyrotechnics, liquefied gases destined for the propulsion, explosion, charging, filling of, or use in connection with the war material in the present categories, not capable of civilian use or manufactured in excess of civilian requirements.

Category VIII.

Factory and total equipment specially designed for the production and maintenance of the products enumerated above and not technically reconvertible to civilian use.

Annex 4

Special Provisions Relating to Certain Kinds of Property

A. Industrial, Literary and Artistic Property

1. a. A period of one year from the coming into force of the present Treaty shall be accorded to the Allied and Associated Powers or their nationals without extension fees or other penalty of any sort in order to enable such persons to accomplish all necessary acts for the obtaining or preserving in Roumania of rights in industrial, literary and artistic property which were not capable of accomplishment owing to the existence of a state of war.

b. Allied and Associated Powers or their nationals who had duly applied in any Allied or Associated Power for a patent or registration of a utility model not earlier than 12 months before the outbreak of the war with Roumania or during the war, or for the registration of an industrial design or model or trade mark not earlier than 6 months before the outbreak of the war with Roumania or during the war, shall be entitled within 12 months after the coming into force of the present Treaty to apply for corresponding rights in Roumania with a right of priority based upon the previous filing of the application in that Allied and Associated Power.

c. Each of the Allied and Associated Powers or its nationals shall be accorded a period of one year from the coming into force of the present Treaty during which they may institute proceedings against those persons who are alleged illegally to have infringed their rights in industrial, literary or artistic property between the date of the outbreak of the war and the coming into force of the present Treaty.

2. A period from the outbreak of the war until a date 18 months after the coming into force of the present Treaty shall be excluded in considering the time within which a patent should be worked or a design or trade mark used.

3. The period from the outbreak of the war until the coming into force of the present Treaty shall be excluded from the normal term of rights in industrial, literary and artistic property which were in force in Roumania at the outbreak of the war or which are recognised or established under this Annex and belonging to any of the Allied and Associated Powers, or their nationals. Consequently, the normal duration of such rights shall be deemed automatically extended in Roumania for a further term corresponding to the period so excluded.

4. The foregoing provisions concerning the rights of the Allied and Associated Powers or their nationals shall apply equally to Roumania and its nationals.

But nothing in these provisions shall operate so as to give to Roumania or any of its nationals greater rights than are accorded in like cases by any of the Allied or Associated Powers to any other of the United Nations.

The U.S.S.R. Delegation considers it unnecessary to include the passage in italics.

The U.S. Delegation would not agree to this Annex unless paragraph 4 were included in its entirety.

5. Third parties in the territories of any of the Allied and Associated Powers or Roumania who before the coming into force of the present Treaty have bona fide acquired industrial property rights conflicting with rights restored under this Article or with rights obtained with priority claimed thereunder, or have bona fide manufactured, used or sold the subject-matter of such rights, shall be permitted without any liability for infringement, to continue to exercise such rights and to continue or to resume such manufacture, use or sale which had been bona fide acquired or commenced. In Roumania, such permission shall take the form of a non-exclusive license granted on terms and conditions to be mutually agreed by the parties thereto or in default of agreement to be fixed by the Conciliation Commission established under Article 31 of the Treaty. In the territories of the Allied and Associated Powers, however, bona fide third parties shall receive such protection as is accorded under similar circumstances to bona fide third parties whose rights are in conflict with those of the nationals of other Allied and Associated Powers.

6. Nothing in this Annex shall be construed to entitle Roumania or its nationals to any patent or utility model rights in the territory of any of the Allied and Associated Powers with respect to inventions relating to any Article listed by name in the definition of war material contained in Annex 3 of the present Treaty made or upon which applications were filed by Roumania or any of its nationals in Roumania or in the territory of any other of the Axis Powers or in any territory occupied by the Axis forces, during the time when the place in question was under the control of enemy forces or authorities.

7. Roumania shall extend the benefits of this Article to any United Nation other than an Allied or Associated Power which undertakes to extend to Roumania the benefits accorded to Roumania under this Article.

The U.S.S.R. Delegation does not see the reason for inclusion of paragraph 7 in the present Treaty.

8. Nothing in this Annex shall be understood to conflict with Articles 24, 26 and 28 of the present Treaty.

B. Insurance

U.K. proposal:

1. United Nations Insurers shall be granted full facilities by the Roumanian Government to recover their former portfolios of business in Roumania and they shall not be required to conform to any legislative enactments more onerous than those which were applicable to them before the outbreak of war.

2. In so far as the guarantee deposits and reserves of United Nations insurers have been reduced by reason of the payment of insurance claims arising out of the war they shall be entitled to compensation from the Roumanian Government by way of the reinstatement of such deposits or reserves to the amount of the claims.

3. The Roumanian Government undertakes that if any United Nations’ Insurer desires to resume business in Roumania and it is found that the value of any guarantee deposit or reserves required to be held as a condition of carrying on business in Roumania have been diminished by reason of disappearance or depreciation of the securities in which they are constituted, Roumania shall either

a. Itself reconstitute the deposits or reserves except in so far as the diminution or disappearance was caused by payment of losses already compensated for under paragraph 2 above; or

b. Accept the securities at the value at the outbreak of war for the purpose of compliance with the legal requirements relating to such deposits and reserves.

The U.S.S.R. Delegation considers that this subject is also covered by Article 24 on United Nations property in Roumania and sees no reason to include any special provisions relating to Insurance.

The U.S. Delegation is not opposed in principle to treaty provisions on special problems relating to insurance but is unable to accept the draft as a whole.

C. Shipping

U.K. proposal:

1. The expression “property” includes all vessels of the United Nations, with full inventory, equipment and cargoes which were in the waters of Roumania or Roumanian territorial waters of the Danube on June 22, 1941.

Vessels falling into the following categories are regarded as belonging to a United Nation or United Nations national:

(i) If on June 22, 1941 (at the time they fell under Roumanian control), they were registered in the territory of a United Nation.

(ii) If on June 22, 1941 (at the time they fell under Roumanian control), they had the right to fly the flag of a United Nation whether or not formally registered in the territory of that Nation.

(iii) If, after June 22, 1941, they were built in Roumania by, or for, or acquired by, any national of a United Nation, and registered in its territory (if liable to registration).

2. The Roumanian Government is responsible for handing over in Roumanian territorial waters the vessels of the United Nations in complete good order as they existed on June 22, 1941, within a period of one month from the coming into force of this Treaty, and to pay fair compensation for the loss of use and loss of profits from June 22, 1941 up to the date of the handing over of the vessels. In the event of the Roumanian Government failing to hand over within the time limit laid down the Roumanian Government shall pay further compensation in the currency of the United Nation concerned for such further loss of use and profits up to the date of handing over of the vessels.

3. The Roumanian Government undertakes to restore the vessels in good navigable condition including the carrying out of repairs shown to be necessary by an expert survey.^‡ Up to the time of handing over all damages or defects found in the vessels are the sole responsibility of the Roumanian Government.

The Roumanian Government accepts that the return of such vessels is without prejudice to any rights or remedies provided in any other Articles of the present Treaty relating to the payment of compensation in respect of any acts or omission of the Roumanian Government or its nationals.

4. Where United Nations’ vessels have been lost these are to be valued at replacement cost and vessels of a similar category delivered to the same value; if the Roumanian Government should be unable to deliver from existing vessels, the required vessels are to be constructed either in Roumanian shipyards or elsewhere, the responsibility for payment resting with the Roumanian Government.

The U.S. and French Delegations consider it desirable that the Peace Conference include in the treaty a definition of the ships to which the Article on United Nations Property will apply but believe the other provisions proposed on this subject are unnecessary.

The U.S.S.R. Delegation considers that this subject is also covered by Article 24 on United Nations property in Roumania and sees no reason to include any special provisions relating to shipping.

D. Petroleum

U.K. proposal:

1. The complete restoration and replacement of damaged or destroyed property belonging to United Nations nationals engaged in the petroleum industry in Roumania shall receive priority over the restoration or replacement of other property in the petroleum industry of Roumania, and failing the complete restoration or replacement of damaged or destroyed property of United Nations nationals within a period of one year from the date of the coming into force of this Treaty, the Roumanian Government undertakes to pay to such United Nations nationals convertible currency equivalent to the assessed value of the property which the Roumanian Government failed to restore or replace.

2. The Roumanian Government accepts to compensate United Nations nationals engaged in the petroleum industry in Roumania for all reasonable expenses incurred in preparation for and in execution of provisional repairs and replacements to the damaged property of United Nations nationals, during the war and since the signing of the Armistice and until such time as complete restoration or replacement of damaged or destroyed property has been effected.

3. The Roumanian Government undertakes to repeal the Petroleum Law of July 1942 and to re-enact the Mining Law of 1937 pending the coming into force of a new petroleum law.

4. United Nations nationals engaged in the petroleum industry of Roumania reserve the right to demand the revocation of any acts, deeds, or titles deriving from the Petroleum Law of 1942 which they consider prejudicial to their interests and the Roumanian Government will implement such revocations free of cost and free of encumbrances to the United Nations nationals.

5. The Roumanian Government shall compensate Roumanian nationals who may suffer damage through the implementation of the revocations mentioned in paragraph 4.

6. All “rights acquired” by United Nations nationals under each and every mining law and petroleum law in Roumania shall be maintained at the request of the United Nations nationals concerned.

7. All expenses incurred by United Nations nationals engaged in the petroleum industry of Roumania such as bank charges and interests on loans raised to facilitate on behalf of the Roumanian Government deliveries of petroleum products to the Axis Powers during the war shall be borne by the Roumanian Government.

8. In order to facilitate the rehabilitation and maintenance of the property of United Nations nationals, engaged in the petroleum industry of Roumania, the Roumanian Government undertakes to make the necessary alterations in the labour law to allow all employees selected by such United Nations nationals to enter Roumania and to exercise their respective professions in the petroleum industry of Roumania without hindrance.

The U.S. Delegation considers that the problems sought to be dealt with in the draft Annex on Petroleum would, in general, be covered by the general provisions agreed on United Nations property, if these provisions made adequate provision for compensation.

The U.S.S.R. Delegation considers that this subject is also covered by Article 24 on United Nations property in Roumania and sees no reason to include any special provisions relating to Petroleum.

Annex 5

Contracts, Prescriptions and Negotiable Instruments^‡‡

U.K. proposal:

I. Contracts

1. Any contract concluded between enemies shall be deemed to have been dissolved as from the time when any of the parties became an enemy, except in respect of any debt accrued or money paid or other pecuniary obligation arising out of any act done thereunder, and subject to the exceptions set out in the following paragraph. The provisions of this paragraph shall be without prejudice to contracts of insurance and reinsurance, which shall be subject to a separate agreement.

(Alternatively a special annex can be included.)

2. The following classes of contracts notwithstanding the provisions of paragraph 1 are excepted from dissolution and without prejudice to the rights contained in Article 26, remain in force subject to the application of municipal laws, orders or regulations made since the outbreak of war by any member of the United Nations and subject to the proper law and terms of the contracts:

a. Contracts for the transfer of estates or of movable or immovable property where the property therein has passed or delivery been made before the parties became enemies;

b. Leases or agreements for leases of land, houses or parts thereof;

c. Contracts of mortgages or lien;

d. Concessions of mines, quarries or deposits;

e. Contracts between individuals or associations and states, municipalities or other similar juridical persons charged with administrative functions and concessions granted by states, municipalities or other similar juridical persons charged with administrative functions;

f. Any contract of which the execution shall be required in the general interest within six months from the date of the coming into force of the present treaty by a government of one of the United, Nations of which one of the parties to such a contract is a national; when the execution of the contract thus kept alive would, owing to the alteration of particular conditions, cause one of the parties substantial prejudice, the Conciliation Commission established under Article 31 shall be empowered to award fair compensation to the prejudiced parties.

3. If a contract is dissolved in part under paragraph 1, the remaining provisions of that contract shall, subject to the same application of municipal laws as is provided for in paragraph 2, continue in force if they are severable, but where they are not severable the contract shall be deemed to have been dissolved in its entirety.

4. Nothing in the present Annex shall be deemed to invalidate the transactions lawfully carried out in accordance with a contract between enemies if it has been carried out with the authority of the Government of one of the United Nations.

5. For the purposes of Parts I, II and III of the present Annex the parties to a contract shall be regarded as enemies when trading between them shall have been prohibited by or otherwise become unlawful under laws, orders or regulations to which one of these parties or the contract was subject. They shall be deemed to have become enemies from the date when such trading was prohibited or otherwise become unlawful.

II. Periods of Prescription

1. 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, as far as regards relations between enemies, as having been suspended for the duration of the war. They shall begin to run again at the 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 divided coupons or for the presentation for repayment of securities drawn for repayment or repayable on any other ground.

2. Where, on account of failure to perform any act or comply with any formality during the war, measures of execution have been taken in Roumanian territory to the prejudice of a national of one of the United Nations, the claim of such national shall, if the matter does not fall within the competence of the Courts of one of the United Nations be heard by the Conciliation Commission established under Article 31.

3. Upon the application of any interested person who is a national of one of the United Nations, the Conciliation Commission shall order the restoration of the rights which have been prejudiced by the measures of execution referred to in paragraph 2 wherever such restoration is equitable and possible. If such restoration is inequitable or impossible, the Conciliation Commission may award compensation to the prejudiced party to be paid by the Roumanian Government.

4. Where a contract between enemies 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 Conciliation Commission for relief. The Commission will have the powers provided for in paragraph 3.

5. The provisions of the preceding paragraphs of this Article shall apply to the United Nations nationals who have been prejudiced by reason of measures referred to above taken by Roumania on invaded or occupied territory, if they have not been otherwise satisfactorily compensated.

6. Roumania shall compensate any third party who may be prejudiced by any restitution or restoration ordered by the Conciliation Commission under the provisions of the preceding paragraphs of this Part.

7. As regards negotiable instruments, the period of three months provided under paragraph 1 shall commence as from the date on which any exceptional regulations applied in the territories of the interested Power with regard to negotiable instruments shall have definitely ceased to have force.

III. Negotiable Instruments

1. 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.

2. 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 force of the present Treaty shall be allowed within which presentation, notice of non-acceptance or non-payment or protest may be made.

3. 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.

IV. Miscellaneous

1. Stock Exchange and Commercial Exchange Contracts.

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 of [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 preceding paragraph shall not apply to rules made during the occupation by Exchanges or Commercial Associations in the districts occupied by the enemy.

2. Security.

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.

This stipulation shall not apply to any sale of securities effected by an enemy during the occupation in regions invaded or occupied by the enemy.

Annex 6

Prize Courts and Judgments

A. Prize Courts

Each of the Allied and Associated Powers reserves the right to examine, according to a procedure to be established by it, all decisions and orders of the Roumanian Prize Courts involving ownership rights of its nationals, and to recommend to the Roumanian Government that revision shall be undertaken of these decisions or orders which may not be in conformity with international law.

Roumania undertakes to supply copies of all documents comprising the records of these cases, including the decisions taken and orders issued, and to accept all recommendations made, subsequent to the examination of the said cases, and to give effect to such recommendations.

B. Judgments

U.S. proposal supported by U.S.S.R.:

The Roumanian Government shall take the necessary measures to enable nationals of any of the United Nations at any time within one year after the coming into force of this Treaty to submit to the appropriate Roumanian authorities for review any judgment given by a Roumanian Court between June 22, 1941, and the coming into force of the present Treaty in any proceeding in which the United Nations national was unable to make adequate presentation of his case as plaintiff or defendant. The Roumanian Government shall provide that, where the United Nations national has suffered injury by reason of any such judgment, he shall be restored in the position in which he was before the judgment was given or shall be afforded such relief as may be just and equitable in the circumstances. The term “United Nations nationals” includes corporations or associations organised or constituted under the laws of any of the United Nations.

French proposal:

The Roumanian Government undertake to adopt appropriate measures in order that nationals of any of the United Nations may obtain during a period of one year from the coming into force of the present Treaty, revision of the judgments rendered by the Roumanian Courts and Tribunals between June 22, 1941, and the date of coming into force of the present Treaty, either in absence of such nationals, or on account of their inability as a result of circumstances to have defended their cause satisfactorily.

The Roumanian Government shall indemnify nationals of the United Nations for the prejudice caused through the initial judgment and shall award compensation, if revision of such judgment did not conclude by re-establishing them de facto in the situation where they were when the procedure was instituted.

Should dispute arise either as regards the ability of nationals of any of the United Nations to have defended their cause satisfactorily, or the adequacy of the compensation to be awarded by the Roumanian Government, the said dispute shall be submitted to the Conciliation Commission established under Article 31 of the present Treaty.

U.K. proposal:

1. Judgments given by the Courts of a member of the United Nations in all cases which, under the present Treaty, they are competent to decide, shall be recognised in Roumania as final and shall be enforced without it being necessary to have them declared executory.

2. If a judgment in respect of any dispute which may have arisen has been given during the tear by a Roumanian Court against a United Nations national in a case in which he was not able adequately to present his case whether as plaintiff or defendant, the United Nations national who has suffered prejudice thereby shall be entitled to recover compensation, to be fixed by the Conciliation Commission under the procedure laid down in Article 31 for settlement of disputes.

3. At the instance of the United Nations national and where it is possible the Conciliation Commission may in lieu of compensation by order replace the parties in the situation which they occupied before the judgment was given by the Roumanian Court.

4. Such compensation or replacement may likewise be obtained before the Conciliation Commission by United Nations nationals who have suffered prejudice by judicial measures taken in invaded or occupied territories if they have not been otherwise compensated.

9. The table of contents and the list of annexes in the source text are not printed here.
10. Department of State, Executive Agreement Series 490.
11. Marks of ellipsis throughout this document occur in the source text.
11. Foreign Relations, 1943, vol. i, p. 443.
12. The U.K. Delegation agrees to paragraph 7 on the understanding that the question of restitution of shipping is covered in Article 24. [Footnote in source text.]
13. The Agreement of the U.K. Delegation to this paragraph is subject to a definition of the ships deemed to be covered thereby. See also Annex 4 Part C. [Footnote in source text.]
12. No map accompanied the English text of the Draft Treaty.
13. Repairs to be done in Roumania or if outside Roumania the cost to be to the charge of the Roumanian Government who must provide the necessary foreign exchange. [Footnote in source text.]

14. In view of the constitutional position of the Federal Government, the U.S. Delegation would be unable to accept any obligations on the matters covered by this Annex. The United States would not object to the inclusions of provisions on these subjects in the Treaty but would wish to have a clause included making them inapplicable as between the United States and Roumania.

    The U.S.S.R. Delegation sees no reason for inclusion in the Peace Treaty of the matters covered by this Annex.

    The French Delegation supports the U.K. proposal with regard to prescriptions and negotiable instruments. [Footnote in source text.]