nationals all the rights which were formerly accorded to all Russian nationals, and, accordingly, authorises Latvian nationals, who, by reason of the occupation, may not have been able to assert their claims, to assert such claims now.

In the payment of the indemnity for claims of Latvian nationals, the Russian Government will take account of the depreciation in the value of Russian money since the 3rd September, 1917, the date of the actual occupation of Latvia, up to the date of the payment of the sums refunded.

(5.) The provisions of sub-paragraph 4 of the present Article shall be observed as regards securities and credit balances which are, or were, deposited in banks or strongrooms, if such securities or balances are the property of Latvian nationals, and are, or may be, actually in the possession of governmental or public institutions. These provisions are also applicable to securities and property of Latvian nationals deposited in credit institutions or in the strong-rooms of such institutions, which have been evacuated since the 1st August, 1914.

Note. The sums, securities and property referred to in this paragraph will be transmitted to the Latvian Government, which will undertake to deliver them to the rightful owners.

XIII. The Russian Government restores to the Latvian Government for delivery to the rightful owners the property belonging from a legal or material point of view to Latvian towns, corporations or individuals which was evacuated during the world war of 1914-1917, in so far as such property is, or may be, in the possession of governmental or public institutions.

Note 1.-In case of doubt, the majority of the shares which were the property of Latvian nationals before the coming into force of the Decree of the Russian Government as to the nationalisation of industry, shall be recognised as belonging to Latvian Joint Stock Companies and Associations.

Note 2. The present Article does not refer to capital, deposits or securities which are in the branches of the State Bank, or in private banks, credit institutions or savings banks situated in Latvian territory.

XIV. (1.) As far as concerns postal, telegraphic and telephonic material evacuated from Latvia into Russia during the world war of 1914-1917, Russia undertakes to restore to Latvia and to transfer to the Latvian Government an amount equal to that which really represents the economic needs of Latvia and the intellectual life of that independent State, in so far as the said material is or may be in the possession of the governmental and public institutions of Russia.

(2.) As far as concerns the material for purposes of navigation and water transport, and as far as concerns the lighthouses in service in Latvian ports, which may have

been evacuated during the war, Russia undertakes to return to Latvia and to restore to the Latvian Government an amount of material exactly corresponding to the needs of Latvia as an independent Government for the working of its ports, in so far as this material is, or may be, actually in the possession of the governmental or public institutions of Russia.

(3.) As far as concerns the rolling-stock or fixed railway material, including workshops evacuated from Latvia into Russia during the world-war of 1914-1917, Russia undertakes to restore to Latvia and to transmit to the Latvian Government an amount of material equal to that which actually corresponds to the economic needs of Latvia as an independent Government, in so far as such material is, or may be, actually in the possession of the governmental or public institutions of Russia.

In order to determine exactly the quantity of material referred to above which is to be restored, and also to determine the periods within which such material shall be delivered, a mixed Commission, composed of Russian and Latvian Representatives in equal proportions, shall be set up immediately after the ratification of the present Treaty of Peace. This Commission shall base its estimate of the material to be restored upon the economic situation before the war of 1914-1917 of the districts which, under the present Treaty, constitute the country of Latvia. After having set apart and deducted the material which ensured the maintenance of trade and national transport for the whole of (former) Russia, the Commission shall definitely decide what are the requirements of Latvia, as at present constituted, as an independent State, while taking into consideration the general decrease in economic activity.

XV. In order to facilitate the carrying out of Articles X, XI, XII, XIII and XIV of the present Treaty, the Russian Government undertakes to furnish the Latvian Government with full and complete information with regard to these Articles, and to afford it every kind of assistance in its task of determining the property, documents and archives to be restored.

Property which has to be given back to Latvia in accordance with the foregoing Articles may be restored, by agreement between Russia and Latvia, either in kind or in its equivalent money value.

On account of the sums which may be due to Latvia in this way, Russia shall pay Latvia, within two months of the ratification of the Treaty, the sum of 4,000,000 gold roubles.

XVI. Taking into consideration the damage suffered by Latvia owing to the world war of 1914-1917, Russia

(1.) Exempts Latvia from all responsibility with regard to all the debts and obligations of Russia, including the issue of paper-money Treasury Bonds resulting from Treasury obligations or receipts, and with regard to the domestic and foreign loans of the Russian Empire, guarantees given or loans contracted by various institutions and undertakings, &c. All claims of this nature, lodged by creditors of Russia, must be exclusively addressed to Russia.

(2.) With a view to assisting the Latvian peasants in the restoration of buildings destroyed in the course of the war, the latter are accorded the right to cut down wood over an area of 100,000 dessiatines, in as close proximity as possible to the Latvian frontier and also to railways and navigable rivers; the procedure for giving effect to this concession shall be decided by a mixed Russo-Latvian Commission composed of an equal number of representatives of both countries. This Commission shall be set up immediately after the ratification of the Treaty.

XVII. (1.) The contracting Parties have agreed to conclude, immediately after the ratification of the present Treaty, commercial and transit agreements, consular, postal and telegraphic conventions, and a convention relating to the deepening of the bed of the western reaches of the Dvina.

(2.) Pending the conclusion of these commercial and transit agreements, the contracting Parties are agreed that their economic relations shall be governed according to the following principles :

(a.) The two Parties guarantee to each other mostfavoured-nation treatment.

(b.) Goods in transit through the territory of the contracting Parties are exempt from all taxes and customs duties.

(c.) Freight rates applied to goods in transit must not be higher than the rates applied to goods of the same nature of national origin.

(3.) Property bequeathed by a national of one of the contracting Parties, but situated in the territory of the other, shall be transferred in its entirety to the Consul or Representative of the Government of the country to which the deceased belonged, to be disposed of according to the laws of the country of origin of the deceased.

XVIII. The contracting Parties bind themselves simultaneously to take the necessary steps to ensure the safe navigation of trading vessels in their waters by organising the necessary pilot services, and by re-establishing lighthouses and buoys in dangerous zones; and they bind themselves to do all that is necessary with a view to the location of mine-fields until they have been completely swept.

The two contracting Parties have agreed to take part in the work of sweeping for mines in the Baltic. With this object an agreement will be concluded between the two Parties. An arbitration tribunal will assign to each Party its share in this work in the event of their failing to agree upon this point.

XIX. Diplomatic and consular relations between the contracting Parties will be renewed immediately after the ratification of the present Treaty.

XX. After the ratification of the present Treaty, Latvian citizens and those who opt for Latvian nationality, on the one hand, and Russian citizens and those who opt for Russian nationality, on the other hand, military and civilians alike, shall be amnestied by the Russian and Latvian Governments respectively from all penalties for political or disciplinary offences. If judgment in respect of such offences has not yet been pronounced the case shall be dismissed.

Persons committing any of the above-mentioned offences after the ratification of the present Treaty shall not benefit by this amnesty.

Persons undergoing trial, or who have been convicted or arrested for crimes and offences against common law committed before the ratification of the present Treaty, as well as those who are undergoing sentences for the same offences, shall be immediately handed over to their Government, if the latter should so desire; all documents connected with their cases shall also be handed over at the time of extradition.

The two contracting Parties shall, at the same time, amnesty their own nationals from penalties for offences committed to the advantage of the other party before the signature of the present Treaty.

Note 1.-The provisions of the foregoing paragraph relating to amnesty and extradition are only applicable to persons upon whom sentence has not been passed at the time of the signature of the present Treaty.

Note 2.-Russian citizens, and persons opting for Russian nationality, who took part in the conspiracy of the 16th April, 1919, and in Bermondt's attack, shall not benefit under the provisions of this paragraph.

XXI. The solution of questions relating to public or domestic legislation which may arise between the Government of one country and the citizens of the other country shall be entrusted to a Mixed Commission consisting of an equal number from both sides to be appointed immediately after the ratification of the present Treaty. The composition, rights and obligations of this Commission shall be laid down in instructions which are to be drawn up by agreement between the two contracting Parties. 4 B

XXII. The present Treat is drawn up in Russian and Lettish.

For purposes of interpretation both texts are to be regarded as official.

XXIII. The present Treaty is to be submitted for ratifiIcation and shall come into force from the moment of ratification, except as otherwise provided in the Treaty.

The exchange of letters of ratification shall take place at Moscow.

In all cases, in the present Treaty, in which reference is made to the time of ratification of the Treaty, this is to be understood to mean the time of the exchange of letters of ratification.

In witness whereof the representatives of the two contracting Parties have signed the present Treaty and have affixed their seals thereto.

The original text is in duplicate.

Done at Moscow, completed and signed at Riga on the 11th August, 1920.

[Signatures of Plenipotentiaries. ]

ACCESSIONS to the Covenant of the League of Nations.Signed at Versailles, June 28, 1919.*