The decisions of the commission, and in the event of their disagreement, those of the umpire, shall be final and conclusive. They shall be in writing. All awards shall be made payable in United States gold, or its equivalent in silver.

ARTICLE 2

The commissioners, or umpire, as the case may be, shall investigate and decide said claims upon such evidence or information only as shall be furnished by or on behalf of the respective Governments. They shall be bound to receive and consider all written documents or statements which may be presented to them by or on behalf of the respective Governments in support of or in answer to any claim, and to hear oral or written arguments made by the agent of each Government on every claim. In case of their failure to agree in opinion upon any individual claim, the umpire shall decide.

Every claim shall be formally presented to the commissioners within thirty days from the day of their first meeting, unless the commissioners or the umpire in any case extend the period for presenting the claim not exceeding three months longer. The commissioners shall be bound to examine and decide upon every claim within six months from the day of its first formal presentation, and in case of their disagreement, the umpire shall examine and decide within a corresponding period from the date of such disagreement.

ARTICLE 3

The commissioners and the umpire shall keep an accurate record of their proceedings. For that purpose, each commissioner shall appoint a secretary versed in the language of both countries, to assist them in the transaction of the business of the commission. Except as herein stipulated, all questions of procedure shall be left to the determination of the c.mmission, or in case of their disagreement, to the umpire.

ARTICLE 4

Reasonable compensation to the commissioners and to the umpire for their services and expenses, and the other expenses of said arbitration, are to be paid in equal moities by the contracting parties.

ARTICLE 5

In order to pay the total amount of the claims to be adjudicated as aforesaid, and other claims of citizens or subjects of other nations,

the Government of Venezuela shall set apart for this purpose, and alienate to no other purpose, beginning with the month of March, 1903, thirty per cent in monthly payments of the customs revenues of La Guaira and Puerto Cabello, and the payments thus set aside shall be divided and distributed in conformity with the decision of The Hague tribunal.

In case of the failure to carry out the above agreement, Belgian officials shall be placed in charge of the customs of the two ports, and shall administer them until the liabilities of the Venezuelan Government in respect to the above claims shall have been discharged. The reference of the question above stated to the Hague tribunal will be the subject of a separate protocol.

ARTICLE 6

All existing and unsatisfied awards in favor of citizens of the United States shall be promptly paid, according to the terms of the respective awards.

Washington, D. C., February 17, 1903.

THE JAPANESE HOUSE TAX CASE

between

FRANCE, GERMANY, GREAT BRITAIN and JAPAN

Decided May 22, 1905

Syllabus

This case had its origin in the extraterritorial jurisdiction which was maintained respecting the citizens of foreign nations resident in Japan prior to 1894. By treaties with Great Britain, Germany and France, dated respectively, July 16, 1894,1 April 4, 1896,2 and August 4, 1896,3 this practice was abandoned, Japan agreeing to set aside for perpetual lease to citizens or subjects of foreign nations certain tracts of land at various treaty ports. It was provided that no conditions other than those contained in the leases would be imposed in respect to such property. Accordingly, no taxes or charges, except those named in the leases, were paid for municipal or other purposes for a number of years subsequent to the signature of the treaties. Finally, however, the Japanese assumed the position that the leases had reference only to unimproved land, and that the houses or other improvements were not included. The interested Governments declined to accede to Japan's view and the question was referred, by a compromis dated August 28, 1902, to a tribunal selected from the panel of the Permanent Court of Arbitration at The Hague as follows: Gregers Gram of Norway, Louis Renault of France, and Itchiro Motono of Japan. The sessions began November 21, 1904, and ended May 15, 1905, and the decision was rendered May 22, 1905. By a majority opinion, signed by the French and Norwegian members, the tribunal held that:

The provisions of the treaties and other engagements mentioned in the arbitration protocols not only exempt the lands held by virtue of the perpetual leases granted by the Japanese Government or in its name, but they exempt the lands and the buildings of every nature constructed or which may be constructed on these lands from all imposts, taxes, charges, contributions, or conditions whatsoever other than those expressly stipulated in the leases in question. The Japanese member dissented from this decision and upheld the contentions of his Government.

1Post, p. 89.

2 Post, p. 91.

$Post, p. 92.

*Post, p. 85.

AWARD OF THE TRIBUNAL

Award of the tribunal of arbitration constituted in virtue of the protocols signed at Tokio, August 28, 1902, between Japan, on the one hand, and Germany, France and Great Britain on the other hand.-The Hague, May 22, 1905.1

Whereas, according to the protocols signed at Tokio on August 28, 1902, a disagreement has arisen between the Government of Japan on the one hand and the Governments of Germany, France, and Great Britain on the other regarding the real meaning and scope of the following provisions of the respective treaties and other agreements existing between them, namely:

Paragraph 4, Article 18, of the treaty of commerce and navigation of April 4, 1896, between Japan and Germany: "When such incorporation takes place [that is to say, when the several foreign settlements in Japan shall have been incorporated with the respective Japanese communes], the existing leases in perpetuity under which property is now held in the said settlements shall be confirmed, and no conditions whatsoever other than those contained in such existing leases shall be imposed in respect of such property"; and paragraph 3 of the complementary communication of the same date from the German Secretary for Foreign Affairs to the Japanese Minister at Berlin: "3. That, as the proprietary rights in the settlements mentioned in Article 18 of the treaty continue to belong to the Japanese State, the owners or their legal successors shall not have to pay duties or taxes of any kind for their land except the contract ground rent"; and the clause in the reply of the Japanese Minister of the same date, to the foregoing communication: "That he entirely indorses the explanatory statements set forth therein, in Nos. 1 to 4, concerning the acquisition of real rights in landed property, the construction of warehouses, the freedom from taxation in the foreign settlements, and the preservation of duly-acquired rights after the expiration of the treaty";

Paragraph 4, Article 21, of the revised treaty of August 4, 1896, between Japan and France: "When the changes above-indicated shall have taken place [that is to say, when the several foreign set

1American Journal of International Law, vol. 2, p. 915. For the original French text, see Appendix, p. 452.

2Post, p. 85.

tlements in Japan shall have been incorporated with the respective Japanese communes and made a part of the municipal system of Japan; and when the competent Japanese authorities shall have assumed all municipal obligations and duties, and the municipal funds and property belonging to such settlements shall have been transferred to said Japanese authorities], the leases in perpetuity, in virtue of which foreigners now possess property in the settlements, shall be confirmed, and property of that character shall not be subject to any duties, taxes, charges, contributions or conditions whatsoever, other than those expressly stipulated in the leases in question";

Paragraph 4 of Article 18 of the revised treaty of July 16, 1894, between Japan and Great Britain: "When such incorporation takes place" [that is, when the various foreign quarters existing in Japan shall have been incorporated into the respective communes of Japan], "existing leases in perpetuity under which property is now held in the said settlements shall be confirmed, and no conditions whatsoever other than those contained in such existing leases shall be imposed in respect of such property."

Whereas the Powers at variance have agreed to submit their differences to the decision of a tribunal of arbitration;

And whereas in virtue of the above-mentioned protocols the Governments of Germany, France, and Great Britain have designated as arbitrator Mr. Louis Renault, Minister Plenipotentiary, member of the Institute of France, professor in the Faculty of Law at Paris, Jurisconsult of the Department of Foreign Affairs, and the Government of Japan has designated as arbitrator his Excellency Mr. Itchiro Motono, Envoy Extraordinary and Minister Plenipotentiary of His Majesty the Emperor of Japan at Paris, Doctor of Laws;

And whereas the two above-mentioned arbitrators have chosen as umpire Mr. Gregers Gram, former Minister of State of Norway, Provincial Governor;

And whereas the tribunal thus composed has as its mission to decide, in the last resort, on the following question:

Do the provisions of the treaties and other engagements hereinabove mentioned exempt only the lands held by virtue of the perpetual leases granted by the Japanese Government or in its name,