(d.) Arrangements for reducing, so far as circumstances permit, the actual transfer of funds necessitated by financial settlements between Administrations.

27. As regards sums which a railway has paid to its users, the matters to be dealt with in arrangements between railway Administrations are, more particularly, the following:

(a.) Regulations regarding the right of recourse of an Administration which has paid compensation against other Administrations taking part in the carriage.

(b.) Provisions determining the responsibilities of the different Administrations or the responsibilities which they agree to share.

(c.) Provisions dealing with the recourse of Administrations against each other in the case of one of them deciding to refund a sum levied in excess of the amount due to the railway (overcharge).

(d.) Rules as to the recognition by the Administrations of a judgment which has been given against one of them obliging it to make a payment.

28. Where, as the result of the state of the exchanges, difficulties arise constituting a serious hindrance to international traffic, measures shall be taken to reduce such inconveniences to a minimum.

Any railway Administration which is subject to the risk of appreciable loss on currency exchange in the settlement of accounts may protect itself by adding to its through-transport charges such a premium as may be reasonably sufficient to cover such risk. The arrangements between the railway Administrations may provide for fixed rates of exchange subject to periodical revision.

Measures shall be taken to prevent as far as possible any improper speculations being made by intermediaries in the course of the transactions necessitated by the state of the exchanges.

PART VI.-GENERAL REGULATIONS.

29. Measures of a general or particular character which a Contracting State is obliged to take in case of an emergency affecting the safety of the State or the vital interests of the country may, in exceptional cases, and for as short a period as possible, involve a deviation from the provisions of the above Articles, it being understood that the principles of the present Statute must be observed to the utmost possible extent.

30. No Contracting State shall be bound by this Statute to ensure the transit of passengers whose admission into its territories is forbidden, or of goods of a kind of which the importation is prohibited, either on grounds of public health or security, or as a precaution against diseases of animals or

plants. As regards traffic other than traffic in transit, no Contracting State shall be bound by this Statute to ensure the transport of passengers whose admission to its territory is prohibited, or of goods of which the import or export is prohibited by its national laws.

Each Contracting State shall be entitled to take the necessary precautionary measures in respect of the transport of dangerous goods or goods of a similar character, it being understood that such measures must not result in any discrimination contrary to the principles of the present Statute, and also to enforce general police measures, including police measures, in connection with emigration traffic.

Nothing in this Statute shall affect the measures which one of the Contracting States is or may feel called upon to take in pursuance of general international Conventions to which it is a party, or which may be concluded hereafter, particularly Conventions concluded under the auspices of the League of Nations, relating to the transit, export or import of particular kinds of articles, such as opium or other dangerous drugs, arms, or the produce of fisheries, or in pursuance of general Conventions intended to prevent any infringement of industrial, literary or artistic property, or relating to false marks, false indications of origin or other methods of unfair competition.

31. The provisions of this Statute do not of themselves impose on any Contracting States any new obligation to facilitate the transport of nationals of a non-Contracting State, or their baggage, or of goods, carriages, or wagons coming from or destined to a non-Contracting State.

32. This Statute does not prescribe the rights and duties of belligerents and neutrals in time of war. The Statute shall, however, continue in force in time of war so far as such rights and duties permit.

33. This Statute does not entail in any way the withdrawal of facilities which are greater than those provided for in the Statute and which have been granted to international traffic by rail under conditions consistent with its principles. This Statute also entails no prohibition of such grant of greater facilities in the future.

34. In conformity with Article 23 (e) of the Covenant of the League of Nations, any Contracting State which can establish a good case against the application of any provision of this Statute, in part or all of its territory, on the ground of the grave economic situation arising out of the acts of devastation perpetrated on its soil during the war 1914-18, shall be deemed to be relieved temporarily of the obligations arising from the application of such provision, it being understood that the principles of this Statute must be observed to the utmost possible extent.

35. Should a dispute arise between two or more Contracting States as to the interpretation or the application of the present Statute, and should it prove impossible to settle such dispute either directly between the parties or by any other method of amicable settlement, the parties to the dispute may, before resorting to any procedure of arbitration or to a judicial settlement, submit the dispute for an advisory opinion to the body established by the League of Nations as the advisory and technical organisation of members of the League for matters of communications and transit. In urgent cases, a preliminary opinion may be given recommending temporary measures, including measures to restore the facilities for international traffic which existed before the act or occurrence which gave rise to the dispute.

Should it prove impossible to settle the dispute by any of the methods of procedure enumerated in the preceding paragraph, the Contracting States shall submit their dispute to arbitration unless they have decided, or shall decide, under an agreement between them, to bring it before the Permanent Court of International Justice.

36. If the case is submitted to the Permanent Court of International Justice, it shall be heard and determined under the conditions laid down in Article 27 of the Statute of the Court.

If arbitration is resorted to, and unless the parties decide otherwise, each party shall appoint an arbitrator, and a third member of the arbitral tribunal shall be elected by the arbitrators, or, in case the latter are unable to agree, shall be selected by the Council of the League of Nations from the list of assessors for communications and transit cases mentioned in Article 27 of the Statute of the Permanent Court of International Justice; in such latter case the third arbitrator shall be selected in accordance with the provisions of the penultimate paragraph of Article 4 and the first paragraph of Article 5 of the Covenant of the League.

The arbitral tribunal shall judge the case on the basis of the terms of reference mutually agreed upon between the parties. If the parties have failed to reach an agreement, the arbitral tribunal acting unanimously shall itself draw up terms of reference after considering the claims formulated by the parties; if unanimity cannot be obtained, the Council of the League of Nations shall decide the terms of reference under the conditions laid down in the preceding paragraph. If the procedure is not determined by the terms of reference, it shall be settled by the arbitral tribunal.

During the course of the arbitration the parties, in the absence of any contrary provision in the terms of reference, are bound to submit to the Permanent Court of International Justice any question of international law or question as to the

legal meaning of this Statute the solution of which the arbitral tribunal, at the request of one of the parties, pronounces to be a necessary preliminary to the settlement of the dispute.

37. The Contracting States shall facilitate the conclusion of special Agreements for the purpose of putting the provisions of the present Statute into force in cases where existing Agreements are not adequate for this purpose.

38. The provisions of this present Statute may be extended by special Conventions to transport undertakings operating means of transport other than railways, particularly where such undertakings are ancillary to railway transport.

Such undertakings shall thereupon be subject to all the obligations imposed and shall be entitled to all the rights conferred upon railways by the present Statute.

Nevertheless, the special Conventions referred to in paragraph 1 may allow of any exceptions to the present Statute which may be necessary owing to the difference in the methods of transport. In particular, in the case of contracts relating to international traffic carried partly by rail and partly by sea, such exceptions may provide for the application of maritime law to the sea journey.

39. Should special Conventions. as provided for in Article 38 not be applicable, reasonable facilities shall be afforded for the movement of traffic by rail and a different means of transport, such as transport by sea.

40. The Contracting States undertake to introduce into those existing Conventions which contravene the provisions of this Statute, so soon as circumstances permit and in any case on the expiry of such Conventions, the modifications required to bring them into harmony with such provisions, so far as the geographical, economic or technical circumstances of the countries or areas concerned allow.

41. Without prejudice to the application of Article 24 of the Covenant of the League of Nations, all offices or bureaux which have been, or may be, set up by international Conventions to facilitate the settlement between States of questions concerning transport by rail shall be regarded as animated by the same spirit as the organisations of the League of Nations, and-for the purposes of the execution of the present Statute -as extending, within their particular sphere, the action of these organisations; they will therefore exchange with the competent organisations of the League all relevant information concerning the fulfilment of their function of international co-operation.

42. The Contracting States shall take all necessary steps to communicate to the League of Nations all information likely to assist the organisations of the League in carrying out the tasks which fall to them with a view to the application of the present Convention.

43. It is understood that this Statute must not be interpreted as regulating in any way rights and obligations inter se of territories forming part of or placed under the protection of the same sovereign State, whether or not these territories are individually Contracting States.

44. Nothing in the preceding Articles is to be construed as affecting in any way the rights or duties of a Contracting State as member of the League of Nations.

Protocol of Signature of the Convention on the International Régime of Railways.

At the moment of signing the Convention of to-day's date relating to the international régime of railways, the undersigned, duly authorised, have agreed as follows:

1. It is understood that any differential treatment of flags based solely on the consideration of the flag should be considered as discrimination of an unfair nature in the sense of Articles 4 and 20 of the Statute on the International Régime of Railways.

2. In the event of the flag or nationality of a Contracting State being identical with the flag or nationality of a State or territory which is outside the Convention, no claim can be advanced on behalf of the latter State or territory to participate in the benefits assured by this Statute to the flag or nationals of Contracting States.

The present Protocol will have the same force, effect and duration as the Statute of to-day's date, of which it is to be considered as an integral part.

Done at Geneva, the 9th day of December, 1923.

[Here follow the same signatures as those appearing at the end of the Convention.]

INTERNATIONAL CONVENTION relative to the Development of Hydraulic Power affecting more than one State, and Protocol of Signature.-Geneva, December 9, 1923.(1) [Ratifications deposited on behalf of Great Britain, Northern Ireland and New Zealand (including Western Samoa). April 1, 1925.]

THE British Empire (with New Zealand), Austria, Belgium, Bulgaria, Chile, Denmark, the Free City of Danzig,

(1) "Treaty Series, No. 26 (1925)" (Cmd. 2421). Signed also in the French language.