Papers Relating to the Foreign Relations of the United States, 1918, Russia, Volume I

File No. 861.00/2958

The Ambassador in Great Britain ( Page) to the Secretary of State

No. 9969

London, September 27, 1918.
[Received October 15.

Sir: With reference to the instructions set forth in the Department’s telegram No. 1403 of September 16, 5 p.m.,¹ I have the honor to transmit, herewith enclosed, four copies of the Enemy Press Supplement to the Daily Review of the Foreign Press, of September 19, 1918, issued by the General Staff, War Office.²

I venture to add that on pages 594–600, inclusive, of this publication there is given the wording of the Russo-German supplementary treaties, as translated from the texts which were printed in the Norddeutsche Allgemeine Zeitung of September 7, 1918.

I have [etc.]

For the Ambassador:

Irwin Laughlin

[Enclosure—Translation]

Text of the Russo-German Supplementary Treaties³

SUPPLEMENTARY TREATY TO THE TREATY OF PEACE BETWEEN RUSSIA AND THE CENTRAL POWERS

Guided by the wish to solve certain political questions which have arisen in connection with the peace treaty of March 3/7, 1918, between Germany, Austria-Hungary, Bulgaria, and Turkey, for the one part, and Russia for the other part, in the spirit of friendly understanding and mutual conciliation, and, in so doing, to promote the restoration of good and confidential relations between the two Empires, for which a way was paved by the conclusion of peace, the German Imperial Government and the government of the Russian Socialist Federated Soviet Republic have agreed to conclude a supplementary treaty to the peace treaty with this object, and have appointed as their plenipotentiaries:

• For the Imperial German Government:
• The State Secretary for Foreign Affairs, and Imperial Privy Councillor, Rear Admiral Paul v. Hintze, and the Director in the Foreign Office, Imperial Privy Councillor Dr. Johannes Kriege.
• For the government of the Russian Socialist Federated Soviet Republic:
• Its diplomatic representative accredited to the German Imperial Government, M. Adolf Joffe.

After handing their credentials to one another, and these being found in correct and proper form, the plenipotentiaries agreed to the following provisions:

PART I.—Demarcations and Frontier Commissions

Article 1

In so far as this has not yet been done, German-Russian commissions will immediately be formed to fix the demarcation lines for all fronts where German and Russian troops face one another. Exact details as to this shall be agreed on by the commanders of the troops on each side. These demarcation lines shall be so drawn that there are neutral zones between the respective fronts, which zones must not be trodden by any members of the respective armies, with the exception of parlementaires. In so far as there is not regular traffic between the respective fronts, such traffic will be established by the demarcation commissions.

Article 2

The German-Russian Commission for fixing the frontier line, provided for in Article 3, paragraph 1, of the peace treaty, shall also fix the east frontiers of Esthonia and Livonia, agreed on in Article 6, paragraph 2, of that treaty, more exactly.

After the fixing of the eastern frontier of Esthonia and Livonia, provided for in paragraph 1, Germany will evacuate the territory occupied by her east of this frontier without delay.

Article 3

Germany will evacuate the territory occupied by her east of the Beresina, even before the conclusion of general peace, in proportion as Russia makes the cash payments she has to carry out from to-day, according to Article 2 of the German-Russian financial agreement of this date; further provisions as to this, particularly the fixing of the individual sectors to be evacuated, are left to the commission referred to in Article 2, paragraph 1, of this supplementary treaty.

The contracting parties reserve the right to make further agreements with regard to the effecting of the evacuation of the occupied territory west of the Beresina before the conclusion of general peace in accordance with the fulfilment by Russia of the remaining financial obligations undertaken by her.

PART II.—Separatist Movements in the Russian Empire

Article 4

In so far as is not otherwise prescribed in the peace treaty or in this supplementary treaty, Germany will in no wise interfere in the relations between the Russian Empire and parts of its territory, and will thus in particular neither cause nor support the formation of independent states in those territories.

PART III.—North Russian Territory

Article 5

Russia will at once employ all the means at her disposal to expel the Entente forces from north Russian territory in observance of her neutrality.

Germany guarantees that during these operations there shall be no Finnish attack of any kind on Russian territory, particularly on St. Petersburg.

Article 6

When the Entente forces shall have evacuated north Russian territory, the local Russian coast shipping within the three-mile limit from the north coast, and the fishing boats within a stretch of thirty miles along this coast, shall be excluded from the barred zone warnings. The German naval command shall have an opportunity, in a way to be further agreed upon, of convincing itself that this concession shall not be taken advantage of to forward contraband goods.

PART IV.—Esthonia, Livonia, Courland, and Lithuania

Article 7

Russia, taking account of the position at present existing in Esthonia and Livonia, renounces sovereignty over these regions, as well as all interference in their internal affairs. Their future fate shall be decided in agreement with their inhabitants.

No obligations of any kind towards Russia shall accrue to Esthonia and Livonia through their former union with Russia.

Article 8

To facilitate Russian trade through Esthonia, Livonia, Courland and Lithuania the following is agreed:

Section 1

In Esthonia, Livonia, Courland and Lithuania the through transport of goods to and from Russia on routes liable to the payment of duty shall be absolutely free, and the goods to be transported shall not be subject to any transit duties or general transport dues.

Section 2

On the railways connecting Russia with Revel, Riga and Windau, the freight tariffs for the goods to be forwarded in through trade with Russia are to be kept as low as possible. They may only be raised above the rates in force on August 1, 1914, by taking the average of the amount by which a general rise in the freight tariffs of the lines in question may be necessary, to cover the cost of working and upkeep, including the payment of interest, and timely redemption of the capital invested. Neither must they be higher than the freight tariffs for goods of the same kind coming from inland or destined to remain there, which are forwarded by the same lines and in the same direction.

Section 3

Shipping on the Dvina between Russia and the open sea, as well as between all places on the Livonian-Courland Dvina, and on the Russian Dvina, is to be free for the transport of goods and passengers, subject to the police instructions commonly prevailing, without discrimination between the ships and the subjects of one or the other party. It is not to be subject to any tax based solely on the fact of the navigation. It is not to be subject to any station, slip, depot, turnover, or harbourage dues.

Exclusive shipping privileges must not be granted either to companies, corporations, or private persons of any kind.

Taxes for the use of works and institutions which are created, or may be created in future, to facilitate traffic, or to improve and maintain the navigation of the river, may only be raised uniformly in accordance with published tariffs and to the extent necessary to cover the cost of restoration and upkeep, inclusive of payment of interest and redemption of the capital invested. The cost of restoring and keeping up works and institutions which are not for the facilitation of traffic and the improvement and maintenance of the navigation of the river, but are intended to further other objects and interests, may only be raised to a proportionate extent by shipping dues.

The provisions of paragraphs 1 to 3 apply also to rafts.

Section 4

At Revel, Riga and Windau, Russia shall have suitably situated free-port zones assigned to her, in which the storing and unpacking of goods coming from or intended for Russia can take place without hindrance, and the work of dispatching goods from or to the Russian customs zone can be done by Russian officials.

Section 5

The individual questions connected with the provisions of Sections 1 to 4, particularly the restrictions to which these provisions may be subjected in war time out of consideration for war necessity or for urgent sanitary reasons, shall be regulated by a special agreement.

Article 9

The water of Lake Peipus is not to be artificially diverted on either side to such a degree as to lower the water level. No methods of fishing calculated to diminish the stock of fish will be permitted; a further agreement as to this is reserved.

The water power of the Narova is to be made available as soon as possible for the supply of electricity for the Petersburg government according to a special agreement to be made regarding this.

Article 10

With regard to Esthonia, Livonia, Courland, and Lithuania, agreements are to be concluded with Russia, as to the following points, among others:

1. With regard to the nationality of the former Russian inhabitants of these territories, as to which they must in any case be allowed the right of option and departure.

2. With regard to the return of the property in Russia belonging to subjects of these territories, particularly that belonging to publicly recognised societies, establishments, and institutions, as well as the property in these territories which belong to Russian subjects.

3. With regard to an arrangement concerning the property of the communal districts cut up by the new frontiers.

4. With regard to an arrangement regarding the archives, regarding the documents of the legal and administrative authorities, regarding the legal and administrative trusts, and also regarding the register of births, marriages, and deaths, etc.

5. With regard to the regulation of the new frontiers.

6. With regard to the effect of the territorial alterations on the state treaties.

PART V.—Russian Black Sea Territory with Exception of the Caucasus

Article 11

With reservation of the provisions of Article 12, Germany will evacuate the Russian Black Sea territory occupied by her outside the Caucasus after the ratification of the peace treaty to be concluded between Russia and the Ukraine.

Article 12

The parts of the occupied territory which do not belong to the districts referred to in the third Ukrainian universal of November 7, 1917, shall be evacuated by the German forces at latest on the conclusion of the general peace, in so far as the peace between Russia and the Ukraine shall not have come into being before then.

The evacuation of the railway line Rostov-Voronezh, as well as of the occupied territory east of it, and a suitable frontier district west of it, including the town of Rostov, will follow as soon as this is demanded on the Russian side. Until the evacuation, Germany will permit the forwarding of corn and other goods for the Russian Government, under the supervision of Russian officials, on those portions of the railway situated in the occupied territory; the same applies for the portions of the railway line Taganrog-Rostov and Taganrog-Kursk lying in occupied territory, for the duration of the occupation.

So long as the Donets Basin is occupied by German troops in accordance with Article 11 and Article 12, paragraph 1, Russia shall receive monthly from the quantities of coal extracted there a three-times greater number of tons than it lets Germany have of crude oil or crude-oil products from the Baku district, in accordance with Article 14, paragraph 2, and a four-times greater number of tons for the consignments of benzine contained therein. In so far as the coal supply in the Donets Basin is not sufficient for this, or must be used for other purposes, it will be supplemented by German coal.

PART VI.—The Caucasus

Article 13

Russia agrees to Germany’s recognising Georgia as an independent state.

Article 14

Germany will give no assistance to any third power in any military operations in the Caucasus outside Georgia, or in the districts mentioned in Article 4, paragraph 3, of the peace treaty. She will also take measures to prevent the military forces of any third power in the Caucasus overstepping the following lines: the Kura, from its mouth to Petropavlovskoe; from there onwards, the boundaries of the district Shemakha to Agrioba; thence a straight line to the point where the boundaries of the districts of Baku, Shemakha and Kuba meet; then along the northern boundary of the district of Baku to the sea.

Russia will do her utmost to further the production of crude oil and crude oil products in the Baku district, and will supply to Germany a quarter of the amount produced, or at least a number of tons, to be agreed upon later, per month. In so far as the quantities produced in the Baku district are not sufficient to supply this number of tons, or must be used for other purposes, they will be supplemented by quantities produced elsewhere. The price will be reckoned by the price of the coal Russia is to be allowed to have in accordance with Article 12, paragraph 3, and, moreover, by the amount of goods to be supplied by Russia to Germany, in accordance with Article 3, Section 2, of the German-Russian financial agreement of to-day.

PART VII.—Treatment of the Russian Warships and Russian Stores Seized by German Military Forces after the Conclusion of Peace

Article 15

Germany recognises Russia’s ownership of the Russian warships seized by German forces after the ratification of the peace treaty, subject to Russia’s coming to terms with Finland and the Ukraine as to the national property of the former Russian Empire. The warships seized will remain under German care until the conclusion of the general peace.

Article 16

Germany admits Russia’s claim to be compensated for the Russian stores which have been seized outside the Ukraine and Finland, after the conclusion of peace, by German forces. This compensation will be reckoned when discussing Germany and Russia’s financial obligations arising from the supplementary treaty to the peace treaty.

PART VIII.—Final Provisions

Article 17

This supplementary treaty shall be ratified, and the ratification documents shall be exchanged not later than September 6, 1918, in Berlin.

The treaty comes into force on the day the ratifying documents are exchanged.

In witness whereof the plenipotentiaries have signed and sealed this supplementary treaty.

Executed in duplicate in Berlin, August 27, 1918.

(L.S.) Von Hintze

(L.S.) Kriege

(L.S.) A. Joffe

GERMAN-RUSSIAN FINANCIAL AGREEMENT TO SUPPLEMENT THE GERMAN-RUSSIAN SUPPLEMENTARY TREATY BETWEEN GERMANY, AUSTRIA-HUNGARY, BULGARIA AND TURKEY FOR THE ONE PART, AND RUSSIA FOR THE OTHER PART

On the basis of Article 35, paragraph 2, of the German-Russian supplementary treaty to the peace treaty between Germany, Austria-Hungary, Bulgaria, and Turkey for the one part, and Russia for the other part,

The plenipotentiaries of the German Empire, namely:

The State Secretary for Foreign Affairs, Imperial Privy Councillor, Rear Admiral Paul v. Hintze, and the Director in the Foreign Office, Imperial Privy Councillor Dr. Johannes Kriege,

As well as the plenipotentiary of the Russian Socialist Federal Soviet Republic, namely:

The diplomatic representative of the Soviet Republic, accredited to the German Imperial Government, M. Adolf Joffe,

Have agreed to regulate Germany and Russia’s financial obligations arising from the German-Russian supplementary treaty, the reciprocal return of the bank deposits and bank balances due, as well as the adjustment of certain differences in the mutual economic system, and for this purpose to conclude a supplementary agreement to the German-Russian supplementary treaty, taking into consideration the Russian decisions with regard to annulling the Russian state loans and state guarantees, and as to the nationalisation of certain financial property in Russia.

After handing their credentials to one another and finding these correct and in due form, the plenipotentiaries agreed to the following provisions:

PART I.—Germany and Russia’s Financial Obligations Arising from the German–Russian Supplementary Treaty to the Peace Treaty

Article 1

The following provisions of the German-Russian supplementary treaty to the peace treaty between Germany, Austria-Hungary, Bulgaria and Turkey for the one part, and Russia for the other part, shall be null and void: Article 2; Article 8, in so far as it relates to the Russian national debt, including state guarantees; Article 9, Section 1, paragraph 2, in so far as it does not deal with remission of obligations incurred; Article 9, Section 3, clause 2; Article 12, paragraph 2, sentence 2, clause 1; Articles 13 to 15; Article 16, paragraph 1; Article 16, paragraph 2, in so far as it relates to Russian expropriations before July 1, 1918; and Article 17, Section 3, and Section 4, paragraph 2.

Article 2

Russia shall pay Germany a sum of Mk. 6,000,000,000 as compensation for the loss to Germans caused by Russian measures, having regard to the corresponding Russian counter-claims, and taking into account the value of the stores seized in Russia by German military forces after the conclusion of peace.

Article 3

Section 1

The payment of the Mk. 6,000,000,000 mentioned in Article 2 shall be effected in the following manner:

A sum of Mk. 1,500,000,000 shall be paid by the transfer of

• 245,564 km. of fine gold, and
• R. 545,440,000 in bank notes, consisting of
• R. 363,628,000 in notes of R. 50, R. 100, or R. 500,
• and R. 181,812,000 in notes of R. 250 or R. 1,000.

The transfer shall be effected by five instalments; namely:

(1) An amount payable September 10, 1918, of

• 42, 860 km. of fine gold, and
• R. 90,900,000 in bank notes, consisting of
• R. 60,600,000 in notes of R. 50, R. 100, or R. 500,
• and R. 30,300,000 in notes of R. 250 or R. 1,000.

(2) Four amounts payable September 30, October 31, November 30, and December 31, 1918, each of

• 50, 676 km. of fine gold, and
• R. 113,635,000 in bank notes, consisting of
• R. 75,757,000 in notes of R. 50, R. 100, or R. 500,
• and R. 37,878,000 in notes of R. 250 or R. 1,000.

The instalments shall be handed over to the representatives of the German Government at Orsha or Pskov. The representatives will, on receipt, furnish a provisional discharge, which, after the examination and checking of the gold and the notes, shall be replaced by a final discharge.

Section 2

A sum of Mk. 1,000,000,000 shall be cancelled by delivery of Russian commodities in accordance with the special agreement to be made in regard thereto. The commodities are to be delivered to the value of Mk. 50,000,000 each time by November 15 and December 31, 1918, to the value of Mk. 150,000,000 each time by March 31, June 30, September 30, and December 31, 1919, and to the value of Mk. 300,000,000 by March 31, 1920. In so far as the deliveries cannot be effected within these periods, the amount lacking on each occasion shall be made up forthwith either in German imperial bank notes at their face value or in fine gold and rouble notes in the proportion of three to two at the rate of exchange then obtaining.

Section 3

An amount of Mk. 2,500,000.000 shall up to December 31, 1918, be met by handing over securities of a loan at 6 per cent from January 1, 1919, with a sinking fund of one-half per cent, which will be taken up in Germany by the Prussian Government to the nominal value of the sum mentioned, and the terms of which shall form an essential part of this agreement.

As security for the loan referred to in paragraph 1 specific national revenues shall be pledged, in particular the rental dues for certain economic concessions to be granted to Germans. The securities are to be settled in detail by a special agreement in such a form that the estimated income from them exceeds the yearly sum required for interest and sinking fund by at least 20 per cent.

Section 4

With regard to the balance of Mk. 1,000,000,000, in so far as its payment is not, in agreement with Germany, taken over by the Ukraine and Finland in their financial agreement with Russia, a special agreement shall be concluded.

Article 4

Property of Germans situated in Russia which before July 1, 1918, was expropriated to the use of the state or of a commune, or otherwise withdrawn from the owner’s power of disposal, shall be handed back to him on request, subject to the return of the compensation received by him out of the sum mentioned in Article 2, and with due regard to possible improvements or damage if the property is not still in the possession of the state, or of the commune, or if an expropriation or other withdrawal of similar property has not been effected or is annulled in regard to inhabitants of the country or subjects of a third power. The request for a return must be made within a year from the period when it can be claimed.

Article 5

The provisions of Article 8 of the supplementary treaty to the treaty of peace, remain unaffected in so far as they do not relate to the Russian public debt service; as also those of Article 16, paragraph 2, in so far as relates to Russian expropriations after July 1, 1918; likewise of Article 19, paragraph 1, clause 2; Article 22, clause 1; and Articles 28 to 32. In regard to the payment and assurance of the financial obligations arising out of these provisions, in so far as the settlement has not been already effected in clause 3 of this convention, a further agreement shall be concluded.

Article 6

The contracting parties will mutually furnish all possible information for the establishment of the civil damages suffered by their nationals within the sphere of the other party, and will respond to requests for the production of proofs relating to such damages.

PART II.—Surrender or Bank Deposits and Credits

Article 7

Each contracting party shall take care that the assets within its territory, lodged with banking and financial institutions (bank deposits) by subjects of the other party, including the moneys and certificates deposited on their behalf with a central deposit office, a public trustee or other state-empowered collecting office, shall be made over on demand to the authorised persons and that they can dispatch them to the territory of their native country free of state taxes and duties.

Each party shall treat the bank deposits within its territory as deposits of subjects of the other party in the sense of paragraph 1, if they are deposited in the name of such a subject. In other cases it must be particularly proved that the deposits are those of subjects of the other party. Possible differences of opinion in regard hereto shall be decided by a commission consisting of a representative of both Governments and a neutral chairman.

Commissions of the kind specified in paragraph 2 shall be set up in Berlin, Moscow and St. Petersburg immediately after this agreement comes into force. The chairman shall, subject to the consent of the Royal Swedish Government, be appointed by the Swedish consuls in these places.

Article 8

Each contracting party shall take care that the money claims (bank credits) payable by banking and financial institutions within its territory to subjects of the other party shall immediately after the coming into force of this agreement be paid out on demand to the authorised persons without reference to the period of grace provided by Article 7, Section 3, paragraph 1, clause 1.

Those entitled may also dispatch the sums obtained to their own country free of state taxes and duties.

The provisions of Article 7, paragraphs 2 and 3, apply in corresponding manner to the credits referred to in paragraph 1.

Article 9

In order to accelerate to the utmost the delivery provided by Articles 7 and 8, of bank deposits and credits on both sides, each contracting party shall forthwith appoint a State Commissioner, with whom their respective subjects may lodge their claims up to January 31, 1919. The two Commissioners shall give notice of these claims for the first time by September 25, 1918, at latest, for the second time by November 15, 1918, at latest, and for the third time by February 15, 1919, at latest, and shall take care that the bank deposits and credits to be made over shall be given up on October 25, 1918; December 31, 1918; and March 31, 1919; and in so far as the claims under Article 7, paragraph 2, and Article 8, paragraph 2, have to be examined by a mixed commission, they shall be given up immediately after the decision of the commission on the side of Germany in Berlin and on the side of Russia in Moscow.

Each contracting party shall take care that the delivery in so far as rights of banks or third parties to the bank deposits or credits are not in conflict shall be effected against an authenticated release of the person in whose name the deposit or credit stood, or who is recognised as authorised, by a decision of the commission referred to in Article 7, paragraph 2. Should another person claim the deposit or credit on the ground of a hereditary title or a legal succession to the whole assets of a juridical person, the release can be furnished by this other person if he is a subject of the same contracting party as the original claimant, and his title is supported by a declaration from the State Commissioner of such party. In all other cases definite evidence of the title must be given to the banking or financial institution with which the deposit or credit rests.

The rightful claimants, who desire to make good their claims without the intervention of the State Commissioner, may apply direct to the banking and financial institutions, in the case of German subjects, only after October 25, 1918, and in the case of Russian subjects, only after December 31, 1918.

Article 10

The provisions of Articles 7 and 8 find corresponding application to the bank deposits and credits in Russia of subjects of Courland, Livonia, Esthonia, and Lithuania, in particular to the moneys, certificates, and other valuables sequestrated in these districts during the war, as also to the bank deposits and credits in these districts of Russian subjects, including the Russian State Bank as successor in title of the nationalised Russian private banks.

PART III.—Adjustment of Certain Differences in the Economic System of Both Sides

Article 11

Property of Germans shall in future be expropriated in Russia, or otherwise withdrawn from the owner’s power of disposal, only when the expropriation or other withdrawal is carried out in favour of the state or a commune under legislation applying to all inhabitants and subjects of a third country, and to all articles of a similar kind, and the owner is immediately compensated in cash.

The amount of the compensation to be paid, in accordance with paragraph 1. shall be fixed by two experts, of whom one shall be appointed by the Russian Government, and the other by the rightful claimant. Should no agreement be reached between them, they shall call in a third expert as chairman, whom the competent Swedish consul shall be asked to appoint in default of agreement to the contrary.

Article 12

Property, which in accordance with Article 11 has been expropriated, or otherwise withdrawn from the owner’s power of disposal, shall be handed back to him on request on return of the compensation paid to him, and regard being had to possible improvements or damage, if the property is not in the possession of the state or of the commune, or if the expropriation or other withdrawal of similar property is annulled as regards inhabitants of the country or subjects of a third power: the request for retransfer must be made within a year of the time when it can be claimed.

Article 13

The provisions of Article 11, paragraph 2, and Article 12 find corresponding application, in so far as property of Germans in Russia has been expropriated or otherwise withdrawn from the owner’s power of disposal after July 1, 1918, and before the coming into force of this agreement.

The request for retransfer can be made, in the cases mentioned in paragraph 1, even when an expropriation, or other withdrawal of similar property has not been carried out in regard to inhabitants of the country or subjects of a third power. Such a request must be made within a year after the coming into force of this agreement.

Article 14

German creditors, in respect of their claims arising before July 1, 1918, may, immediately after they have fallen due, require them to be satisfied from their debtor’s balances with Russian banks, if their claim is recognised as valid by both the debtor and the bank. The debtor’s acknowledgment may be replaced by a judicial decision having the force of law; if the bank contests the validity of the claim, the commissions in Moscow and St. Petersburg referred to in Article 7, paragraph 3, shall decide in regard thereto.

Article 15

The German-Russian deceased estates convention of November 12/October 31, 1874, shall remain in force, with the proviso that in regard to all cases of inheritance since the new law of inheritance in Russia the provisions for movable property shall apply to immovable property also, and that a duty on the inheritance may be levied only by the deceased’s country, and that so long as the law of inheritance in Russia is annulled, or essentially limited, the convention cannot be annulled.

The contracting parties further reserve the right to supersede certain provisions of the deceased estates convention, which have not been observed in practice by fresh ones more in harmony with existing conditions.

PART IV.—Final Provisions

Article 16

This convention shall be ratified, and the ratifying documents exchanged in Berlin by September 6, 1918.

The convention comes into force at the date of the exchange of the ratifying documents.

In witness whereof the plenipotentiaries have signed and sealed this agreement.

Executed in duplicate in Berlin, August 27, 1918.

(L.S.) Von Hintze

(L.S.) Kriege

(L.S.) A. Joffe

GERMAN-RUSSIAN CIVIL LAW AGREEMENT TO SUPPLEMENT THE GERMAN-RUSSIAN SUPPLEMENTARY TREATY TO THE PEACE TREATY BETWEEN GERMANY, AUSTRIA-HUNGARY, BULGARIA AND TURKEY FOR THE ONE PART AND RUSSIA FOR THE OTHER PART

In virtue of Article 35, paragraph 2, of the German-Russian supplementary treaty to the peace treaty between Germany, Austria-Hungary, Bulgaria and Turkey, for the one part, and Russia for the other part,

The plenipotentiaries of the German Empire, namely:

The Secretary of State for Foreign Affairs, Imperial Privy Councillor Paul von Hintze, and the Director in the Foreign Office, Imperial Privy Councillor Dr. Johannes Kriege,

As well as the plenipotentiary of the Russian Socialist Federal Soviet Republic, namely:

The diplomatic representative of the Soviet Republic, accredited to the Imperial German Government, M. Adolf Joffe,

Have agreed to regulate the legal position arising out of bills of exchange, cheques, and exchange business (Art. 7, Sec. 3, par. 2), industrial patents (Art. 9), the terms of limitation (Art. 10), as well as the decision of civil and commercial legal disputes by courts of arbitration, in order to carry out the civil law provisions of the German-Russian supplementary treaty, and for this purpose to conclude a supplementary agreement to the German-Russian supplementary treaty.

The plenipotentiaries have agreed to the following provisions, after having handed one another their credentials, and having found these in proper and due form:

PART I.—Legal Position Arising from Bills of Exchange and Cheques

Article 1

If the presentation of a bill of exchange for payment, or the protest, or the taking of other action necessary to uphold the exchange rights, has not been possible during the war, in consequence of legal instructions, or of force majeure, the action in favour of the subjects of the contracting parties shall be considered as having been taken in good time if subsequently undertaken before the expiration of the eighth month after the ratification of the peace treaty, or, in so far as the hindrance still continued at this date, within two months after the abolition of the hindrance, in any case, at latest, within six months after the ratification of peace between Germany and the last great power to be at war with Germany. If, owing to a legal decision arising out of the war applying to the place of payment, a new period has been instituted for the presentation for payment of a bill of exchange and for the raising of protest, then a presentation and protest made within the new period of grace and before the expiration of the eighth month after the ratification of the peace treaty between Germany and Russia, in favour of subjects of the contracting parties, shall also be considered as having been made in good time, if the holder of the bill was prevented from taking action within the old period of grace.

Article 2

In the case of bills of exchange, which, in accordance with Article 7, Section 3, paragraph 1, of the supplementary treaty, need not be paid before the expiration of six months after the ratification of the peace treaty, the presentation for payment, as well as the protest in default of payment, shall be considered as having been made in good time, if they are made during the seventh or eighth month after the ratification, or, in so far as taking action was prevented within this period of grace, by force majeure, within two months after the abolition of the hindrance, in any case, at least within six months after the ratification of the peace treaty between Germany and the last great power to be at war with Germany.

Article 3

In particular, interruption of direct postal communication with the place where the action must be taken, shall be regarded as a hindrance through force majeure, in the sense of Articles 1 and 2.

Article 4

If in the cases of Articles 1 and 2 the bill of exchange is not presented on the expiration of six months after the ratification of the peace treaty, the debtor may free himself from the obligation of the bill of exchange by depositing the amount, together with the accrued interest, with the quarters recognised as officially competent by the laws of the land in which the place of payment is situated, at the risk and cost of the holder of the bill.

Article 5

The provisions of Articles 1–4 apply to the legal position arising from cheques.

PART II.—Legal Position Arising from Exchange Transactions

Article 6

Obligations arising out of short-dated transactions in exchange, particularly in any sort of money, bills, cheques, and payments which were pending between subjects of the respective states when war broke out, must be fulfilled in accordance with the terms of such agreements, within the time fixed between Germany and Russia for the payment of money demands.

If, in the short-dated transactions, it is a question of a bill of exchange drawn on a state with which Germany is still at war, then the obligation must be fulfilled within six months after the ratification of the peace treaty with this state.

PART III.—Industrial Patents

Article 7

For payment of the charges for patents which have fallen due through their restoration, conformably with Article 9, Section 1, paragraph 1, of the supplementary treaty, the subjects of each contracting party shall have a period of six months’ grace in the territory of the other party, after the present agreement comes into force, the legally prescribed periods of grace and additions being abolished.

A period of grace will be allowed in the same way for the payment of the further charges which have fallen due before this agreement comes into force.

Article 8

The period of grace provided in Article 9, Section 2, paragraph 1, of the supplementary treaty, for recovering an action lost through delay caused by the war, will be prolonged till the expiration of a year after the ratification of the peace treaty between Germany and the last of the great powers to be at war with Germany.

Article 9

When a patent which could not be announced by the law of war is announced in the territory of one of the contracting parties within a year after the ratification of peace between Germany and the last great power to be at war with Germany, by those who had announced it in due form, during the war, in the territory of such other party, claim being made to the priority of the earlier announcement, the announcement shall take precedence of all the announcements handed in in the meantime, and shall not be rendered ineffective by any facts which have intervened in the meantime.

Article 10

The provisions of Article 9 shall not affect the instructions contained in the present or future laws of each party, according to which protection for objects of the kind notified is denied, or is limited in the public interest, or may be withdrawn, or has no effect as against third parties, who may have made use of the object, in good faith, in the time between the reception of the earlier and that of the later announcement.

Article 11

The Russian Government declares its readiness shortly to enter into negotiations with the German Government respecing mutual protection of industrial ownership.

PART IV.—Period of Limitation

Article 12

In amplification of the provisions of Article 10 of the suplementary treaty, it is agreed, with regard to extension of the prescribed limits within which application may be made, that when the claimant is prevented by force majeure from taking proceedings before the expiration of the extended period of grace, the period shall be prolonged in favour of subjects of the contracting parties, subject to further reaching instructions of the law of the country, until the expiration of two months after the abolition of the hindrance—in any case, not for longer than six months after the ratification of the peace treaty between Germany and the last of the great powers to be at war with Germany.

The contracting parties agree that the prolongation of the period of grace provided in paragraph 1 and Article 10 of the supplementary treaty shall be in force also for the period during which proceedings may be taken arising from bills of exchange and cheques.

PART V.—Courts of Arbitration for Civil and Commercial Disputes

Article 13

According to the following provisions, civil and commercial disputes may be withdrawn from the competence of the national courts and be submitted to the Courts of Arbitration for decision.

Article 14

The Courts of Arbitration shall be competent to decide legal, disputes between subjects of the respective states, in so far as it is a question of

(1) Claims in respect of money matters, arising out of agreements concluded before August 1, 1914;

(2) Claims arising out of bills of exchange or cheques drawn before August 1, 1914;

(3) Claims arising out of copyright or patents established before August 1. 1914.

Article 15

In the sense of Article 14 Germans or Russians shall mean juridical persons or companies situated in Germany or Russia. Those juridical persons or companies shall be excepted which are under compulsory administration, or in liquidation on account of enemy share in their capital, enemy management, or supervision.

The competence of the Court of Arbitration will neither be established nor excluded by a succession to the claims or debt arising subsequently to March 29, 1918.

Article 16

The Court of Arbitration can only be appealed to when one of the claims indicated in Article 14 has been tried by means of an action or counter-action, and one party moves that the transaction should come before the Court of Arbitration.

The plaintiff can only move that the transaction should come before the Court of Arbitration by handing in a declaration to the Court of Arbitration. If he lodges the complaint with the regular court he loses the right to appeal to the Court of Arbitration.

The defendant must make the proposal in answering the charge, at latest two months after the complaint has been lodged. If, in an action before the regular court, a counter-charge is lodged, the plaintiff must make the proposal to bring the counter-charge before the Court of Arbitration when answering the counter-charge, at the latest, however, two months after the counter-charge is lodged.

The regular court has to submit proposals to bring the matter before the Court of Arbitration to such court, and await its decision. The Court of Arbitration may permit a proposal notwithstanding the lapse of the two months’ grace provided for in paragraph 3, if it was not possible, in consequence of force majeure, to observe the period of grace.

The decision of the Court of Arbitration that its competence exists or does not exist is binding for the courts of Germany and Russia.

Article 17

The Courts of Arbitration appointed to arbitrate will be erected in Berlin and Moscow.

The Court of Arbitration in Berlin is competent, when the defendant has his domicile in Germany, or if his domicile is outside Germany and Russia, and he is a German subject.

The Court of Arbitration in Moscow is competent, when the defendant has his domicile in Russia, or if his domicile is outside Russia and Germany, and he is a Russian subject.

If the competence of both Courts of Arbitration is established in consequence of the defendant having several residences, then the plaintiff has the choice which Court of Arbitration he will appeal to. The same applies when, of several defendants, who are legally associated in respect of the subject of dispute, the one has his domicile in Germany, the other in Russia.

Article 18

If necessary the Court of Arbitration must officially test its competence, particularly the nationality of the parties, and the correctness of the statements made by the parties, on which its competence is based.

Article 19

The Courts of Arbitration in Berlin and Moscow shall be formed as follows:

Germany and Russia each to appoint a judge and a deputy for each Court of Arbitration. The Danish Government shall be asked equally to appoint from amongst the number of its subjects, for each Court of Arbitration, a judge and a deputy. The appointment of the judges shall be for three years. Only those can be appointed who are qualified to be members of a higher court of appeal in their own country.

In addition to the judges, two commercial judges shall be appointed for each Court of Arbitration, if this is thought advisable and proposed by the organs appointed to represent the commercial class, Germany and Russia each appointing one.

The right of agreeing to add to the number of judges shall be reserved to the governments of the states concerned.

Article 20

Each contracting party shall concede diplomatic privileges and exemption to the judges and commercial judges who are not its own subjects.

Article 21

The judge appointed by the Danish Government shall act as president of each Court of Arbitration.

The president shall appoint the necessary clerks of the court, staff, and subordinate officials, at the suggestion of the government of the country where the Court of Arbitration has its domicile.

Article 22

The costs of the Courts of Arbitration shall be borne by Germany and Russia in equal shares.

Article 23

The Court of Arbitration, in making its decisions, shall consist of one Danish, one German, and one Russian judge; the Danish judge shall preside. On the motion of one party, the president shall call in a German and a Russian commercial judge in addition. On the motion of both parties the Court of Arbitration, in making its decision, shall consist of a German and a Russian commercial judge, as well as a Danish judge as president.

Article 24

The language of the court shall be, for the Court of Arbitration in Berlin, the German, for the Court of Arbitration in Moscow, the Russian language. If all the persons have not full command of the language in which the proceedings and deliberations are carried on, an interpreter shall be called in.

Article 25

The Court of Arbitration must apply those rules of international civil law which were in force in its domicile before August 1, 1914, by virtue of the law or of legal practice. According to these rules, the question has in particular to be judged, whether a claim pleaded is barred by the statute of limitations, in so far as the provisions of Article 10 of the supplementary treaty, or the amplifications to it agreed on, do not take effect.

Article 26

In applying the laws, and interpreting judicial matters, the Court of Arbitration must take the views of honourable and fair trade dealing into consideration, and judge with due attention to the whole content of the proceedings and the effect of any special agreement.

Article 27

The Court of Arbitration shall give judgment on the basis of verbal proceedings.

The trial shall be conducted by the president: it shall be public. A record shall be taken down of every hearing, and be signed by the president and the clerk of the court.

Article 28

The parties are to be summoned to the trial. No summons shall be required when the date of the trial is announced in their presence, or in the presence of their representatives.

Article 29

The period of grace between the serving of the writ and the first date fixed for the trial (Einlassungsfrist) shall be at least six weeks, the period of grace between serving the summons and a later date (Ladungsfrist) shall amount to at least one month. The Court of Arbitration can curtail both the Einlassungsfrist and the Ladungsfrist if this is moved for special reasons. If the Einlassungsfrist and Ladungsfrist are not observed, a postponement of the date may be moved.

Article 30

If the summons has been duly served, or the appointed date duly announced, he case can be tried and judgment given, even in the absence of the parties Who failed to appear.

Article 31

The Court of Arbitration may have direct business dealings with German and Russian courts of justice within their competence, in order to request them to effect deliveries, and collect evidence. It may effect deliveries on its own account: it may also hear witnesses and experts who appear before it, on path or not on oath, as well as accept ex parte affidavits and solemn affirmations in place of an oath.

The Court of Arbitration may allow witnesses and experts who appear before it the reimbursement of their expenses and compensation for loss of time; it may also allow them an advance.

Article 32

The parties may in the proceedings before the Court of Arbitration be represented by an authorised agent, in particular by the commissioner of the association for protection of creditors recognised by the state. The Court of Arbitration shall be free to decide whether the costs of the representatives of the successful party are to be allowed.

Article 33

The parties and their representatives are entitled to adopt before the Court of Arbitration all legal resources they may consider necessary to defend their cause.

After the parties or their representatives have brought forward all the evidence in their favour, and discussed the result, the president shall state the conclusion reached.

Article 34

Every decision of a Court of Arbitration is arrived at by a majority of votes of the members.

Article 35

The findings are to be signed by the arbitration judges, stating the date of their drawing up, and are to be published and delivered to the parties at a public sitting of the Court of Arbitration. Reasons for the decision must be given.

Article 36

The judgment duly published and delivered to the parties, finally decides the matter at issue.

Article 37

All disputes that may arise between the parties owing to the wording of the judgment are subject to the ruling of the Court of Arbitration which has delivered the judgment.

Article 38

The judgments are enforceable in the territories of the contracting parties in the same way as local judgments.

Article 39

For the proceedings before the Court of Arbitration fees shall be charged to cover the costs. The court decides which party has to pay the fees and bear the cash expenses, and, on request, fixes their amount. The decision is enforceable in the territories of the contracting parties.

The court may reduce the court fees if the party shows that he is not in a position to pay the costs without prejudice to the necessary support of himself and his family.

Article 40

Legal disputes which at the time of the ratification of this convention are pending before a German or Russian regular court, but have not yet been decided, may, in so far as the provisions of Articles 14 and 15 apply, on the request of a party be again brought before the Court of Arbitration. The request must be preferred before the Court of Arbitration, and until disposed of puts a stop to all periods running in the proceedings.

The Court of Arbitration decides as to the request. When notified that a request has been lodged before the Court of Arbitration, the ordinary court must await its decision. The conclusion of the Court of Arbitration must be delivered to the parties. After the delivery of a conclusion accepting the request, the enforcement of decisions of the ordinary court may be begun or continued only with the consent of the Court of Arbitration.

The Court of Arbitration may, in its decision, have regard to the result of the former proceedings in so far as it sees fit. With the delivery of the decision of the Court of Arbitration the decisions reached in the matter by the ordinary court lose their force so far as they conflict with the decision of the arbitration court.

The Court of Arbitration shall consider the return of a payment voluntarily made or enforced on the ground of a judgment of a regular court enforceable for the time being. The costs incurred in the proceedings before the regular court rank as a portion of the costs of the arbitration proceedings.

Article 41

The request for the Court of Arbitration to deal with a matter may be made in accordance with Article 40, even after the judgment of the regular court has become enforceable, if the judgment has been delivered only after July 31, 1914, and the Court of Arbitration on request grants reinstatement to the former position.

The request for reinstatement must be lodged with the Court of Arbitration within six months of the coming into force of this convention. It can be based only on the claim that the party concerned, in consequence of his being a subject of an enemy power, or owing to occurrences in the war, has not had sufficient opportunity to prosecute or defend his rights. The claim must be authenticated.

Article 42

A Court of Arbitration (Arbitration Commission) agreed upon by the parties is equivalent to the regular court in the sense of Article 40. The pronouncement of an award does not conflict with a request for proceedings before the Courts of Arbitration in Berlin and Moscow, so long as it has not been declared enforceable by decision of the regular court. If such a decision has been given after July 31, 1914, as against this decision and the award, replacement in the former position in accordance with Article 41 shall be carried out.

Article 43

Each Court of Arbitration shall issue an order of procedure, and communicate it to the other Court of Arbitration.

In the order of procedure special provisions shall be made with regard to:

(1) Summonses and pleadings;

(2) Court and counsel’s fees;

(3) Reimbursement of expenses of witnesses and experts, and compensation for their loss of time as well as the advances to be made them in this connection;

(4) The manner of issuing awards;

(5) The possible formation of divisions and the allotment of cases, and particularly the order of succession in which the commercial umpires are to be called in.

Article 44

The German and Russian Governments reserve the right to arrange for supplementing and altering the foregoing principles in case this should appear desirable later on.

Article 45

The agreement as to the Court of Arbitration may be denounced by Germany or Russia on July 1 of any calendar year, but not before July 1, 1921, the notice to expire on December 31. The competence of the Court of Arbitration to dispose of the disputes pending before it shall not be affected by the notice.

PART VI.—Final Provisions

Article 46

This convention shall be ratified, and the documents of ratification exchanged in Berlin by September 6, 1918.

Articles 1 to 12 of the convention come into force with the exchange of the documents of ratification, Articles 13 to 45 two months after the exchange. The German and Russian Governments reserve the right to agree upon a later period for the coming into force of Articles 13 to 45, if regular intercourse should not be established between Germany and Russia.

In witness whereof the plenipotentiaries have signed and sealed this agreement.

Executed in duplicate in Berlin, August 27, 1918.

(L. S.)

Von Hintze

(L. S.)

Kriege

(L. S.)

A. Joffe

1. Not printed.
2. Only the treaties comprising the appendix to the Enemy Press Supplement are here printed.
3. In these supplementary treaties the translation has been left essentially in the form in which it was received, after comparison with the German text (as published in the Reichsanzeiger, Sept. 7, 1918) and translation thereof, which were printed for the Department of State in the booklet, Texts of the Russian “Peace” (Washington, Government Printing Office, 1918) prepared by the Inquiry, a body of scholars assembled by Colonel House to assist the Department in the study of problems of the coming peace settlement.