war, until three months from the coming into force of the present Treaty, shall be returned to the owners.

The property, rights and interests restored shall not be subject to any tax levied in respect of any other property or any other business owned by the same person after such property had been removed from Hungary or such business had ceased to be carried on therein.

If taxes of any kind have been paid in anticipation in respect of property, rights and interests removed from Hungary, the proportion of such taxes paid for any period subsequent to the removal of the property, rights and interests in question shall be returned to the owners.

Cash assets shall be paid in the currency and at the rate of exchange provided for the case of debts under Articles 231 (d) and 254.

Legacies, donations and funds given or established in the former Kingdom of Hungary for the benefit of nationals of that Kingdom shall be placed by Hungary, so far as the funds in question are in her territory, at the disposition of the Allied or Associated Power of which the persons in question are now, or become, under the provisions of the present Treaty, or of any Treaties concluded for the purpose of completing the present settlement, nationals, in the condition in which these funds were on the 28th July, 1914, taking account of payments properly made for the purpose of the trust.

Where under the terms of family trusts which continue to be administered by the Hungarian State the rights of the beneficiaries are subject to their retaining Hungarian nationality, the presumptive beneficiaries will retain their right to pensions, expenses of education, dowries and similar privileges, even if they acquire now or subsequently, under the present Treaty or any treaties concluded for the purpose of completing the present settlement, the nationality of one of the States to which territory of the former Kingdom of Hungary is transferred by the said Treaties.

Where in consequence of the extinction of a family in whose favour such a trust had been constituted the funds would revert to the Hungarian State or to an institution of that State, such right of succession will pass to the State to which the last beneficiary belonged.

250. Notwithstanding the provisions of Article 232 and the Annex to Section IV, the property, rights and interests of Hungarian nationals or companies controlled by them situated in the territories which formed part of the former Austro-Hungarian Monarchy shall not be subject to retention or liquidation in accordance with these provisions.

Such property, rights and interests shall be restored to their owners freed from any measure of this kind, or from

any other measure of transfer, compulsory administration, or sequestration, taken since the 3rd November, 1918, until the coming into force of the present Treaty, in the condition in which they were before the application of the measures in question.

Claims made by Hungarian nationals under this article shall be submitted to the Mixed Arbitral Tribunal provided for by Article 239.

The property, rights and interests here referred to do not include property which is the subject of Article 191, Part IX (Financial Clauses).

Nothing in this article shall affect the provisions laid down in Part VIII (Reparation), Section I, Annex III as to property of Hungarian nationals in ships and boats.

251. All contracts for the sale of goods for delivery by sea concluded before the 1st January, 1917, between nationals of the former Kingdom of Hungary of the one part and the Administrations of the former Austro-Hungarian Monarchy, Hungary, or Bosnia-Herzegovina, or Hungarian nationals. of the other part shall be annulled, except in respect of any debt or other pecuniary obligation arising out of any act done or money paid thereunder. All other contracts between such parties which were made before the 1st November, 1918, and were in force at that date shall be maintained.

252. With regard to prescriptions, limitations and forfeitures in the transferred territories, the provisions of Articles 235 and 236 shall be applied with substitution for the expression outbreak of war of the expression "date, which shall be fixed by administrative decision of each Allied or Associated Power, at which relations between the parties became impossible in fact or in law," and for the expression "duration of the war" of the expression "period between the date above indicated and that of the coming into force of the present Treaty."

253. Hungary undertakes not to impede in any way the transfer of property, rights or interests belonging to a company incorporated in accordance with the laws of the former Austro-Hungarian Monarchy, in which Allied or Associated nationals are interested, to a company incorporated in accordance with the laws of any other Power, to facilitate all measures necessary for giving effect to such transfer, and to render any assistance which may be required for effecting the restoration to Allied or Associated nationals, or to companies in which they are interested, of their property, rights or interests whether in Hungary or in transferred territory.

254. Section III, except Article 231 (d), shall not apply to debts contracted between Hungarian nationals and nationals of the former Kingdom of Hungary.

Subject to the special provisions laid down in Article 231 (d) for the case of the new States, these debts shall be paid in the legal currency at the time of payment of the State of which the national of the former Kingdom of Hungary has become a national, and the rate of exchange applicable shall be the average rate quoted on the Geneva Exchange during the two months months preceding the November, 1918.

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255. Insurance companies whose principal place of business was in territory which previously formed part of the former Austro-Hungarian Monarchy shall have the right to carry on their business in Hungarian territory for a period of ten years from the coming into force of the present Treaty, without the rights which they previously enjoyed being affected in any way by the change of nationality.

During the above period the operations of such companies shall not be subjected by Hungary to any higher tax or charge than shall be imposed on the operations of national companies. No measure in derogation of their rights of property shall be imposed upon them which is not equally applied to the property, rights or interests of Hungarian insurance companies; adequate compensation shall be paid in the event of the application of any such measures.

These provisions shall only apply so long as Hungarian insurance companies previously carrying on business in the transferred territories, even if their principal place of business was outside such territories, are reciprocally accorded a similar right to carry on their business therein.

After the period of ten years above referred to, the provisions of Article 211 of the present Treaty shall apply in regard to the Allied and Associated companies in question.

The provisions of this article shall apply similarly to co-operative societies, provided that the legal position of such societies places places upon their members effective responsibility for all operations and contracts within the objects of such societies.

256. Special agreements will determine the division of the property of associations or public corporations carrying on their functions in territory which is divided in consequence of the present Treaty.

257. States to which territory of the former AustroHungarian Monarchy is transferred, and States arising from the dismemberment of that Monarchy, shall recognise and give effect to rights of industrial, literary and artistic property in force in the territory at the time when it passes to the State in question, or re-established or restored in accordance with the provisions of Article 241 of the present Treaty. These rights shall remain in force in that territory [CXIII]

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for the same period as that for which they would have remained in force under the law of the former AustroHungarian Monarchy.

A special convention shall determine all questions relative to the records, registers and copies in connection with the protection of industrial, literary or artistic property, and fix their eventual transmission or communication by the Offices of the former Austro-Hungarian Monarchy to the Offices of the States to which are transferred territory of the said monarchy and to the Offices of new States.

258. Without prejudice to other provisions of the present Treaty, the Hungarian Government undertakes so far as it is concerned to hand over to any Power to which territory of the former Austro-Hungarian Monarchy is transferred, or which arises from the dismemberment of that monarchy, such portion of the reserves accumulated by the Governments or the administrations of the former Austro-Hungarian Monarchy, or by public or private organisations under their control, as is attributable to the carrying on of Social or State Insurance in such territory.

The Powers to which these funds are handed over must apply them to the performance of the obligations arising from such insurances.

The conditions of the delivery will be determined by special conventions to be concluded between the Hungarian Government and the Governments concerned.

In case these special Conventions are not concluded in accordance with the above paragraph within three months after the coming into force of the present Treaty, the conditions of transfer shall in each case be referred to a Commission of five members, one of whom shall be appointed by the Hungarian Government, one by the other interested Government and three by the Governing Body of the International Labour Office from the nationals of other States. This Commission shall by majority vote within three months after appointment adopt recommendations for submission to the Council of the League of Nations, and the decisions of the Council shall forthwith be accepted as final by Hungary and the other Government concerned.

259. The provisions of the present section referring to the relations between Hungary or Hungarian nationals and the nationals of the former Kingdom of Hungary apply to relations of the same nature between Hungary or Hungarian nationals and the nationals of the former Austrian Empire referred to in Article 263 of the Treaty of Peace with Austria.

Reciprocally, the provisions of Section VIII of Part X of the said Treaty referring to the relations between Austria or Austrian nationals and the nationals of the former

Austrian Empire apply to relations of the same nature between Austria or Austrian nationals and the nationals of the former Kingdom of Hungary referred to in Article 246 of the present Treaty.

PART XI.-AERIAL NAVIGATION.

260. The aircraft of the Allied and Associated Powers, shall have full liberty of passage and landing over and in the territory of Hungary, and shall enjoy the same privileges as Hungarian aircraft, particularly in the case of distress.

261. The aircraft of the Allied and Associated Powers shall, while in transit to any foreign country whatever, enjoy the right of flying over the territory of Hungary without landing, subject always to any regulations which may be made by Hungary, and which shall be applicable equally to the aircraft of Hungary and to those of the Allied and Associated countries.

262. All aerodromes in Hungary open to national public traffic shall be open for the aircraft of the Allied and Associated Powers, and in any such aerodrome such aircraft shall be treated on a footing of equality with Hungarian aircraft as regards charges of every description, including charges for landing and accommodation.

263. Subject to the present provisions, the rights of passage, transit and landing provided for in Articles 260, 261 and 262 are subject to the observance of such regulations as Hungary may consider it necessary to enact, but such regulations shall be applied without distinction to Hungarian aircraft and to those of the Allied and Associated countries.

264. Certificates of nationality, airworthiness, or competency and licences, issued or recognised as valid by any of the Allied or Associated Powers, shall be recognised in Hungary as valid and as equivalent to the certificates and licences issued by Hungary.

265. As regards internal commercial air traffic, the aircraft of the Allied and Associated Powers shall enjoy in Hungary most-favoured-nation treatment.

266. Hungary undertakes to enforce the necessary measures to ensure that all Hungarian aircraft flying over her territory shall comply with the rules as to lights and signals, rules of the air and rules for air traffic on and in the neighbourhood of aerodromes, which have been laid down in the Convention relative to Aerial Navigation* concluded between the Allied and Associated Powers.

267. The obligations imposed by the preceding provisions International Convention signed at Paris, October 13, 1919, see Vol. CXII, page 931.