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<b> Part X, Section V - XI, Section V<br>
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SECTION VI.<br>
MIXED ARBITRAL TRIBUNAL.<br><br>
ARTICLE 239.</b><br>
(a) Within three months from the coming into force of the present Treaty, a Mixed Arbitral
Tribunal shall be established between each of the Allied and Associated Powers on the one hand
and Hungary on the other hand Each such Tribunal shall consist of three members. Each of the
Governments concerned shall appoint one of these members. The President shall be chosen by
agreement between the two Governments concerned.<br><br>
In case of failure to reach agreement, the President of the Tribunal and two other persons, either
of whom may in case of need take his place, shall be chosen by the Council of the League of
Nations, or, until this is set up, by M. Gustav Ador if he is willing. These persons shall be
nationals of Powers that have remained neutral during the war.<br><br>
If in case there is a vacancy a Government does not proceed within a period of one month to
appoint as provided above a
member of the Tribunal, such member shall be chosen by the other Government from the two
persons mentioned above other than the President.<br><br>
The decision of the majority of the members of the Tribunal shall be the decision of the Tribunal.
(b) The Mixed Arbitral Tribunals established pursuant to paragraph (a) shall decide all questions
within their competence under Sections III, IV, V and VII.<br><br>
In addition, all questions, whatsoever their nature, relating to contracts concluded before the
coming into force of the present Treaty between nationals of the Allied and Associated Powers
and Hungarian nationals shall be decided by the Mixed Arbitral Tribunal, always excepting
questions which, under the laws of the Allied, Associated or Neutral Powers, are within the
jurisdiction of the national courts of those Powers. SucEI questions shall be decided by the
national courts in question, to the exclusion of the Mixed Arbitral Tribunal. The party who is a
national of an Allied or Associated Power may nevertheless bring the case before the Mixed
Arbitral Tribunal if this is not prohibited by the laws of his country.<br><br>
(c) If the number of cases justifies it, additional members shall be appointed and each Mixed
Arbitral Tribunal shall sit in divisions. Each of these divisions will be constituted as above.<br><br>
(d) Each Mixed Arbitral Tribunal will settle its own procedure except in so far as it is provided in
the following Annex, and is empowered to award the sums to be paid by the loser in respect of
the costs and expenses of the proceedings.<br><br>
(e) Each Government will pay the remuneration of the member of the Mixed Arbitral Tribunal
appointed by it and of any agent whom it may appoint to represent it before the Tribunal. The
remuneration of the President will be determined by special agreement between the Governments
concerned; and this remuneration and the joint expenses of each Tribunal will be paid by the two
Governments in equal moieties.<br><br>
(f) The High Contracting Parties agree that their courts and authorities shall render to the Mixed
Arbitral Tribunals direct all the assistance in their power, particularly as regards transmitting
notices and collecting evidence.<br><br>
(g) The High Contracting Parties agree to regard the decisions of the Mixed Arbitral Tribunal as
final and conclusive, and to render them binding upon their nationals.<br><br>
<hr>
<b>ANNEX.</b><br>
1. Should one of the members of the Tribunal either die, retire or be unable for any reason whatever
to discharge his functions, the same procedure will be followed for filling the vacancy as was
followed for appointing him.<br><br>
2.
The Tribunal may adopt such rules of procedure as shall be in accordance with justice and equity
and decide the order and time at which each party must conclude its arguments, and may arrange
all formalities required for dealing with the evidence.<br><br>
3.
The agent and counsel of the parties on each side are authorised to present orally and in writing to
the Tribunal arguments in support or in defence of each case.<br><br>
4.
The Tribunal shall keep record of the questions and cases submitted and the proceedings thereon,
with the dates of such proceedings.<br><br>
5.
Each of the Powers concerned may appoint a secretary. These secretaries shall act together as
joint secretaries of the Tribunal and shall be subject to its direction. The Tribunal may appoint and
employ any other necessary officer or officers to assist in the performance of its duties.<br><br>
6.
The Tribunal shall decide all questions and matters submitted upon such evidence and information
as may be furnished by the parties concerned.<br><br>
7.
The High Contracting Parties agree to give the Tribunal all facilities and information required by it
for carrying out its investigations.<br><br>
8.
The language in which the proceedings shall be conducted shall, unless otherwise agreed, be
English, French, Italian or Japanese as may be determined by the Allied or Associated Power
concerned.<br><br>
9.
The place and time for the meetings of each Tribunal shall be determined by the President of the
Tribunal.<br><br>
<b>ARTICLE 240.</b><br>
Whenever a competent court has given or gives a decision in a case covered by Sections III, IV,
V or VII, and such decision is inconsistent with the provisions of such Sections, the party who is
prejudiced by the decision shall be entitled to obtain redress which shall be fixed by the Mixed
Arbitral Tribunal. At the request of the national of an Allied or Associated Power, the redress
may, whenever possible, be effected by the Mixed Arbitral Tribunal directing the replacement of
the parties in the position occupied by them before the judgment was given by the court of the
former Kingdom of Hungary.<br><br>

<b>SECTION VII.<br>
INDUSTRIAL PROPERTY.<br><br>
ARTICLE 241.<br>
</b>Subject to the stipulations of the present Treaty, rights of industrial, literary and artistic property,
as such property is defined by the International Conventions of Paris and of Berne, mentioned in
Articles 220 and 222, shall be re-established or restored, as from the coming into force of the
present Treaty, in the territories of the High Contracting Parties, in favour of the persons entitled
to the benefit of them at the moment when the state of war commenced, or their legal
representatives. Equally, rights which, except for the war, would have been acquired during the
war in consequence ol an application made for the protection of industrial property, or the
publication of a literary or artistic work, shall be recognised and established in favour of those
persons who would have b en entitled thereto, from the coming into force of the present Treaty.
Nevertheless, all acts done by virtue of the special measures taken during the war under
legislative, executive or administrative authority of any Allied or Associated Power in regard to
the rights of nationals of the former Kingdom of Hungary in industrial, literary or artistic property
shall remain in force and shall continue to maintain their full effect.<br><br>
No claim shall be made or action brought by Hungary or Hungarian nationals or by or on behalf of
nationals of the former Kingdom of Hungary in respect of the use during the war by the
Government of any Allied or Associated Power, or by any persons acting on behalf or with the
assent of such Government of any rights in industrial, literary or artistic property, nor in respect of
the sale, offering for sale, or use of any products, articles or apparatus whatsoever to which such
rights applied.<br><br>
Unless the legislation of any one of the Allied or Associated Powers in force at the moment of the
signature of the present Treaty otherwise directs, sums due or paid in respect of the property of
persons referred to in Article 232 (b) in virtue of any act or operation resulting from the execution
of the special measures mentioned in the second paragraph of this Article shall be dealt with in the
same way as other sums due to such persons are directed to be dealt with by the present Treaty;
and sums produced by any special measures taken by the Government of the former Kingdom of
Hungary in respect of rights in industrial, literary or artistic property belonging to the nationals of
the Allied or Associated Powers shall be considered and treated in the same way as other debts
due from Hungarian nationals.<br><br>
Each of the Allied and Associated Powers reserves to itself the right to impose such limitations,
conditions or restrictions on rights of industrial, literary or artistic property (with the exception of
trade-marks) acquired before or during the war, or which may be subsequently acquired in
accordance with its legislation, by Hungarian nationals, whether by granting licences, or by the
working, or by preserving control over their exploitation, or in any other way, as may be
considered necessary for national defence, or in the public interest, or for assuring the fair
treatment by Hungary of the rights of industrial, literary and artistic property held in Hungarian
territory by its nationals, or for securing the due fulfilment of all the obligations undertaken by
Hungary in the present Treaty. As regards rights of industrial, literary and artistic property
acquired after the coming into<br><br>
force of the present Treaty, the right so reserved by the Allied and Associated Powers shall only
be exercised in cases where these limitations, conditions or restrictions may be considered
necessary for national defence or in the public interest.
In the event of the application of the provisions of the preceding paragraph by any Allied or
Associated Power, there shall be paid reasonab'e indemnities or royalties, which shall be dealt with
in the same way as other sums due to Hungarian nationals are directed to be dealt with by the
present Treaty.<br><br>
Each of the Allied or Associated Powers reserves the right to treat as void and of no effect any
transfer in whole or in part of or other dealing with rights of or in respect of industrial, literary or
artistic property effected after July 28, I914, or in the future, which would have the result of
deleating the objects of the provisions of this Article.<br><br>
The provisions of this Article shall not apply to rights in industrial, literary or artistic property
which have been dealt with in the liquidation of businesses or companies under war legislation by
the Allied or Associated Powers, or which may be so dealt with by virtue of Article 232,
paragraph (b).<br><br>
<b>ARTICLE 242.</b><br>
A minimum of one year after the coming into force of the present Treaty shall be accorded to the
nationals of the High Contracting Parties, without extension fees or other penalty, in order to
enable such persons to accomplish any act, fulfil any formality, pay any fees, and generally satisfy
any obligation prescribed by the laws or regulations of the respective States relating to the
obtaining, preserving or opposing rights to, or in respect of, industrial property either acquired
before July 28, 1914, or which, except for the war, might have been acquired since that date as a
result of an application made before the war or during its continuance, but nothing in this Article
shall give any right to re-open interference proceedings in the United States of America where a
final hearing has taken place.<br><br>
All rights in, or in respect of, such property which may have lapsed by reason of any failure to
accomplish any act, fulfil any formality, or make any payment, shall revive, but subject in the case
of patents and designs to the imposition of such conditions as each Allied or Associated Power
may deem reasonably necessary for the protection of persons who have manufactured or
made use of the subject-matter of such property while the rights had lapsed. Further, where rights
to patents or designs belonging to Hungarian nationals are revived under this Article, they shall be
subject in respect of the grant of licences to the same provisions as would have been applicable to
them during the war, as well as to all the provisions of the present Treaty.<br><br>
The period from July 28, 1914, until the coming into force of the present Treaty shall be excluded
in considering the time within which a patent should be worked or a trade-mark or design used,
and it is further agreed that no patent, registered trademark or design in force on July 28, 1914,
shall be subject to revocation or cancellation by reason only of the failure to work such patent or
use such trade-mark or design for two years after the coming into force of the present Treaty.<br><br>
<b>ARTICLE 243.</b><br>
The rights of priority provided by Article 4 of the International Convention for the Protection of
Industrial Property of Paris of March 20, 1883, revised at Washington in 19II, or by any other
Convention or Statute, for the filing or registration of applications for patents or models of utility,
and for the registration of trade-marks, designs and models which had not expired on July 28,
I914, and those which have arisen during the war, or would have arisen but for the war, shall be
extended by each of the High Contracting Parties in favour of all nationals of the other High
Contracting Parties for a period of six months after the coming into force of the present Treaty.
Nevertheless, such extension shall in no way affect the right of any of the High Contracting
Parties or of any person who before the coming into force of the present Treaty was bona Jide in
possession of any rights of industrial property conflicting with rights applied for by another who
claims rights of priority in respect of them, to exercise such rights by itself or himself personally,
or by such agents or licensees as derived their rights from it or him before the coming into force
of the present Treaty; and such persons shall not be amenable to any action or other process of
law in respect of infringement.<br><br>
<b>ARTICLE 244</b><br>
No action shall be brought and no claim made by nationals of the former Kingdom of Hungary, or
by persons residing or carry
hlg on business within the territory of that Kingdom on the one part, and on the other part by
persons residing or carrying on business in the territory of the AlLied or Associated Powerss or
persons who are nationals of such Powers respectively, or by any one deriving title during the war
from such persons, by reason of any action which has taken place within the territory of the other
party between the date of the existence of a state of war and that of the coming into force of the
present Treaty, which might constitute an infringement of the rights of industrial property or
rights of literary and artistic property, either existing at any time during the war or revived under
the provisions of Articles 242 and 243.<br><br>
Equally, no action for infringement of industrial, literary or artistic property rights by such persons
shall at any time be permissible in respect of the sale or offering for sale for a period of one year
after the signature of the present Treaty in the territories of the Allied or Associated Powers on
the one hand or Hungary on the other, of products or articles manufactured, or of literary or
artistic works published, during the period between the existence of a state of war and the
signature of the present Treaty, or against those who have acquired and continue to use them. It is
understood, nevertheless, that this provision shall not apply when the possessor of the rights was
domiciled or had an industrial or commercial establishment in the districts occupied by the
Austro-Hungarian armies during the war.<br><br>
This Article shall not apply as between the United States of America on the one hand and
Hungary on the other.<br><br>
<b>ARTICLE 245.</b><br>
Licences in respect of industrial, literary or artistic property concluded before the war between
nationals of the Allied or Associated Powers or persons residing in their territory or carrying on
business therein, on the one part, and nationals of the former Kingdom of Hungary, on the other
part, shall be considered as cancelled as from the date of the existence of a state of war
between the former Austro-Hungarian Monarchy and the Allied or Associated Power. But, in any
case, the former beneficiary of a contract of this kind shall have the right, within a period of six
months after the coming into force of the present Treaty, to demand from the proprietor of the
rights the grant of a new licence, the conditions of which, in default of agreement
between the parties, shall be fixed by the duly qualified tribunal in the country under whose
legislation the rights had been acquired, except in the case of licences held in respect of rights
acquired under the law of the former Kingdom of Hungary. In such cases the conditions shall be
fixed by the Mixed Arbitral Tribunal referred to in Section VI of this Part. The tribunal may, if
necessary, fix also the amount which it may deem just should be paid by reason of the use of the
rights during the war.<br><br>
No licence in respect of industrial, literary or artistic property, granted under the special war
legislation of any Allied or Associated Power, shall be affected by the continued existence of any
licence entered into before the war, but shall remain valid and of full effect, and a licence so
granted to the former beneficiary of a licence entered into before the war shall be considered as
substituted for such licence.<br><br>
Where sums have been paid during the war in respect of the rights of persons referred to in
Article 232 (b) by virtue of a licence or agreement concluded before the war in respect of rights of
industrial property or for the reproduction or the representation of literary, dramatic or artistic
works, these sums shall be dealt with in the same manner as other debts or credits of such persons
as provided by the present Treaty.<br><br>
This Article shall not apply as between the United States of America on the one hand and
Hungary on the other.<br><br>
<hr>
<b>SECTION VIII.<br>
SPECIAL PROVISIONS RELATING TO TRANSFERRED TERRITORY.<br><br>
ARTICLE 246.</b><br>
Of the individuals and juridical persons previously nationals of the former Kingdom of Hungary,
including Bosnia-Herzegovinians, those who acquire ipso facto under the present Treaty the
nationality of an Allied or Associated Power are designated in the provisions which follow by the
expression "nationals of the former Kingdom of Hungary-" the remainder are designated by the
expression "Hungarian nationals."<br><br>
<b>ARTICLE 247</b><br>
The inhabitants of territories transferred by virtue of the present Treaty shall, notwithstanding this
transfer and the change
of nationality consequent thereon, continue to enjoy in Hungary all the rights in industrial, literary
and artistic property to which they were entitled under the legislation in force at the time of the
transfer.<br><br>
<b>ARTICLE 248.</b><br>
The questions concerning the nationals of the former Kingdom of Hungary, as well as Hungarian
nationals, their rights, privileges and property, which are not dealt with in the present Treaty, or in
the Treaty prepared for the purpose of regulating certain immediate relations between the States
to which territory of the former Austro-Hungarian Monarchy has been transferred, or arising from
the dismemberment of that Monarchy, shall form the subject of special conventions between the
States concerned, including Hungary; such conventions shall not in any way conflict with the
provisions of the present Treaty.<br><br>
For this purpose it is agreed that within three months from the coming into force of the present
Treaty a Conference of delegates of the States in question shall take place.<br><br>
<b>ARTICLE 249.</b><br>
The Hungarian Government shall without delay restore to nationals of the former Kingdom of
Hungary their property, rights and interests situated in Hungarian territory.
The amount of taxes and imposts on capital which have been levied or increased on the property,
rights and interests of nationals of the former Kingdom of Hungary since November 3, 1918, or
which shall be levied or increased until restitution in accordance with the provisions of the present
Treaty, or, in the case of property, rights and interests which have not been subjected to
exceptional measures of war, until three months from the coming into force of the present Treaty,
shall be returned to the owners.<br><br>
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.<br><br>
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.<br><br>
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 July 28, 1914, taking account of payments properly made for the
purpose of the trust.<br><br>
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.<br><br>
<b>ARTICLE 250.</b><br>
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.<br><br>
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, compuisory administration or sequestration,
taken since November 3, 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.<br><br>
Claims made by Hungarian nationals under this Article shall be submitted to the Mixed Arbitral
Tribunal provided for by Article 239.<br><br>
The property, rights and interests here referred to do not include property which is the subject of
Article 191, Part IX (Financial Clauses).<br><br>
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.<br><br>
<b>ARTICLE 251.</b><br>
All contracts for the sale of goods for delivery by sea concluded before January 1, 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 November 1, 1918, and were in force at that date shall be maintained.<br><br>
<b>ARTICLE 252.</b><br>
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 wart 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."<br><br>
<b>ARTICLE 253.</b><br>
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.<br><br>
<b>ARTICLE 254.</b><br>
Section III, except Article 231 (d), shall not apply to debts contracted between Hungarian
nationals and nationals of the former Kingdom of Hungary.<br><br>
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 preceding
November 1, 1918.<br><br>
<b>ARTICLE 255.</b><br>
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.<br><br>
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.<br><br>
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.<br><br>
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.<br><br>
The provisions of this Article shall apply similarly to cooperative societies, provided that the legal
position of such societies places upon their members effective responsibility for all operations and
contracts within the objects of such societies.<br><br>
<b>ARTICLE 256.</b><br>
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.<br><br>
<b>ARTICLE 257.</b><br>
States to which territory of the former Austro-Hungarian 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 for the same period as that
for which they would have remained in force under the law of the former Austro-Hungarian
Monarchy.<br><br>
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 Of fices of
new States.<br><br>
<b>ARTICLE 258.</b><br>
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 insurance.<br><br>
The conditions of the delivery will be determined by special conventions to be concluded between
the Hungarian Government and the Governments concerned.<br><br>
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.<br><br>
<b>ARTICLE 259.</b><br>
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 236 of the Treaty of Peace with Austria.<br><br>
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.<br><br>
<hr><b>
PART XI.<br>
AERIAL NAVIGATION.<br><br>
ARTICLE 260.</b><br>
The aircraft of the Allied and Associated Powers shall have the liberty of passage and landing over
and in the territory of Hungary, and shall enjoy the same privileges as Hungarian aircraft,
particularly in case of distress.<br><br>
<b>ARTICLE 261.</b><br>
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.<br><br>
<b>ARTICLE 262.</b><br>
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.<br><br>
<b> ARTICLE 263.</b><br>
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.<br><br>
<b>ARTICLE 264.</b><br>
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.<br><br>
<b>ARTICLE 265.</b><br>
As regards internal commercial air traffic, the aircraft of the Allied and Associated Powers shall
enjoy in Hungary most favoured nation treatment.<br><br>
<b>ARTICLE 266.</b><br>
Hungary undertakes to enforce the necessary measures to ensure that all Hungarian aircraft fiying
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.<br><br>
<b>ARTICLE 267.</b><br>
The obligations imposed by the preceding provisions shall remain in force until January 1, 1923,
unless before that date Hungary shall have been admitted into the League of Nations or shall have
been authorised by consent of the Allied and Associated Powers to adhere to the Convention
relative to Aerial Navigation concluded between those Powers.<br><br>
<hr>
<b>PART XII.<br>
PORTS, WATERWAYS AND RAILWAYS<br><br>
SECTION I.<br>
GENERAL PROVISIONS.<br><br>
ARTICLE 268.<br></b>
Hungary undertakes to grant freedom of transit through her territories on the routes most
convenient for international transit, either by rail, navigable waterway or canal, to persons, goods,
vessels, carriages, wagons and mails coming from or going to the territories of any of the Allied
and Associated Powers, whether contiguous or not.<br><br>
Such persons, goods, vessels, carriages, wagons and mails shall not be subjected to any transit
duty or to any undue delays or restrictions, and shall be entitled in Hungary to national treatment
as regards charges, facilities and all other matters.<br><br>
Goods in transit shall be exempt from all customs or other similar duties.<br><br>
All charges imposed on transport in transit shall be reasonable, having regard to the conditions of
the traffic. No charge, facility or restriction shall depend directly or indirectly on the ownership or
on the nationality of the ship or other means of transport on which any part of the through journey
has been, or is to be, accomplished.<br><br>
<b>ARTICLE 269.</b><br>
Hungary undertakes neither to impose nor to maintain any control over transmigration traffic
through her territories beyond measures necessary to ensure that passengers are bona fide in
transit; nor to allow any shipping company or any other private body, corporation or person
interested in the traffic to take any part whatever in, or to exercise any direct or indirect influence
over, any administrative service that may be necessary for this purpose.<br><br>
<b>ARTICLE 270.</b><br>
Hungary undertakes to make no discrimination or preference, direct or indirect, in the duties,
charges and prohibitions relating to importations into or exportations from her territories, or,
subject to the special engagements contained in the present Treaty, in the charges and conditions
of transport of goods or persons entering or leaving her territories, based on the frontier crossed;
or on the kind, ownership or flag of the means of transport (including aircraft) employed; or on
the original or immediate place of departure of the vessel, wagon or aircraft, or other means of
transport employed, or its ultimate or intermediate destination, or on the route of or places of
transhipment on the journey; or on whether the goods are imported or exported directly through a
Hungarian port or indirectly through a foreign port; or on whether the goods are imported or
exported by land or by air.<br><br>
Hungary particularly undertakes not to establish against the ports and vessels of any of the Allied
and Associated Powers any surtax or any direct or indirect bounty for export or import by
Hungarian ports or ships, or by those of another Power, for example by means of combined
tariffs. She further undertakes that persons or goods passing through a port or using a vessel of
any of the Allied and Associated Powers shall not be subjected to any formality or delay whatever
to which such persons or goods would not be subjected if they passed through a Hungarian port
or a port of any other Power, or used a Hungarian vessel or a vessel of any other Power.<br><br>
<b>ARTICLE 271.</b><br>
All necessary administrative and technical measures shall be taken to expedite, as much as
possible, the transmission of goods across the Hungarian frontiers and to ensure their forwarding
and transport from such frontiers, irrespective of whether such goods are coming from or going to
the territories of the Allied and Associated Powers or are in transit from or to those territories,
under the same material conditions in such matters as rapidity of carriage and care en routc as are
enjoyed by other goods of the same kind carried on Hungarian territory under similar conditions
of transport.<br><br>
In particular, the transport of perishable goods shall be
promptly and regularly carried out, and the customs formalities shall be effected in such a way as
to allow the goods to be carried straight through by trains which make connection.<br><br>
<b>ARTICLE 272.</b><br>
The seaports of the Allied and Associated Powers are entitled to all favours and to all reduced
tariffs granted on Hungarian railways or navigable waterways for the benefit of any port of
another Power.<br><br>
<b>ARTICLE 273.</b><br>
Hungary may not refuse to participate in the tariffs or combinations of tariffs intended to secure
for ports of any of the Allied and Associated Powers advantages similar to those granted by
Hungary to the ports of any other Power.<br><br>
<hr>
<b>SECTION II.<br>
NAVIGATION.<br><br>
CHAPTER I.<br>
FREEDOM OF NAVIGATION.<br><br>
ARTICLE 274.<br></b>
The nationals of any of the Allied and Associated Powers, as well as their vessels and propertyw
shall enjoy in all Hungarian ports and on the inland navigation routes of Hungary the same
treatment in all respects as Hungarian nationals, vessels and property.<br><br>
In particular, the vessels of any one of the Allied or Associated Powers shall be entitled to
transport goods of any description, and passengers, to or from any ports or places in Hungarian
territory to which Hungarian vessels may have access, under conditions which shall not be more
onerous than those applied in the case of national vessels; they shall be treated on a footing of
equality with national vessels as regards port and harbour facilities and charges of every
description, including facilities for stationing, loading and unloading, and duties and charges of
tonnage, harbour, pilotage, lighthouse, quarantine, and all analogous duties and charges of
whatsoever nature, levied in the name of or for the profit of the Governrnent, public functionaries, private individuals, corporations or establishments of any kind.<br><br>
In the event of Hungary granting a preferential regime to any of the Allied or Associated Powers
or to any other foreign Power, this regime shall be extended immediately and unconditionally to
all the Allied and Associated Powers.<br><br>
There shall be no impediment to the movement of persons or vessels other than those arising from
prescriptions concerning customs, police, sanitation, emigration and immigration, and those
relating to the import and export of prohibited goods. Such regulations must be reasonable and
uniform and must not impede traffic unnecessarily.<br><br>

<b>CHAPTER II.<br>
CLAUSES RELATING TO THE DANUBE.</b><br>
<b>(1) General Clauses relative to River Systems declared International.</b><br><br>
<b>ARTICLE 275.</b><br>
The following river is declared international: the Danube from Ulm; together with all navigable
parts of this river system which naturally provide more than one State with access to the sea, with
or without transhipment from one vessel to another, as well as lateral canals and channels
constructed either to duplicate or to improve naturally navigable sections of the specified river
system or to connect two naturally navigable sections of the same river.<br><br>
Any part of the above-mentioned river system which is not included in the general definition may
be declared international by an agreement between the riparian States.<br><br>
<b>ARTICLE 276.</b><br>
On the waterways declared to be international in the preceding Article, the nationals, property and
flags of all Powers shall be treated on a footing of perfect equality, no distinction being made to
the detriment of the nationals, property or flag of any Power, between them and the nationals,
property or flag of the riparian State itself or of the most favoured nation.<br><br>
<b>ARTICLE 277.</b><br>
Hungarian vessels shall not be entitled to carry passengers or goods by regular services between
the ports of any Allied or Associated Power without special authority from such Power.<br><br>
<b>ARTICLE 278.</b><br>
Where such charges are not precluded by any existing convention, charges varying on different
sections of a river may be levied on vessels using the navigable channels or their approaches,
provided that they are intended solely to cover equitably the cost of maintaining in a navigable
condition, or of improving, the river and its approaches, or to meet expenditure incurred in the
interests of navigation. The schedule of such charges shall be calculated on the basis of such
expenditure and shall be posted up in the ports. These charges shall be levied in such a manner as
to render any detailed examination of cargoes unnecessary, except in cases of suspected fraud or
contravention.<br><br>
<b>ARTICLE 279.</b><br>
The transit of vessels, passengers and goods on these waterways shall be effected in accordance
with the general conditions prescribed for transit in Section I above.<br><br>
When the two banks of an international river are within the same State goods in transit may be
placed under seal or in the custody of customs agents. When the river forms a frontier goods and
passengers in transit shall be exempt from all customs formalities; the loading and unloading of
goods, and the embarkation and disembarkation of passengers, shall only take place in the ports
specified by the riparian State.<br><br>
<b>ARTICLE 280.</b><br>
No dues of any kind other than those provided for in this Part shall be levied along the course or
at the mouth of these waterways.<br><br>
This provision shall not prevent the fixing by the riparian States of customs, local octroi or
consumption duties, or the creation of reasonable and uniform charges levied in the ports, in
accordance with public tariffs, for the use of cranes, elevators, quays, warehouses and other
similar constructions.<br><br>
<b>ARTICLE 281.</b><br>
In default of any special organisation for carrying out the works connected with the upkeep and
improvement of the international portion of a navigable system, each riparian State shall be bound
to take the necessary measures to remove any obstacle or danger to navigation and to ensure the
maintenance of good conditions of navigation.<br><br>
If a State neglects to comply with this obligation any riparian State, or any State represented on
the International Commission, may appeal to the tribunal instituted for this purpose by the League
of Nations.<br><br>
<b>ARTICLE 282.</b><br>
The same procedure shall be followed in the case of a riparian State undertaking any works of a
nature to impede navigation in the international section. The tribunal mentioned in the preceding
Article shall be entitled to enforce the suspension or suppression of such works, making due
allowance in its decisions for all rights in connection with irrigation, water-power, fisheries and
other national interests, which, with the consent of all the riparian States or of all the States
represented on the International Commission, shall be given priority over the requirements of
navigation.<br><br>
Appeal to the tribunal of the League of Nations does not require the suspension of the works.<br><br>
<b>ARTICLE 283.</b><br>
The regime set out in Articles 276 and 278 to 282 above shall be superseded by one to be laid
down in a General Convention drawn up by the Allied and Associated Powers, and approved by
the League of Nations, relating to the waterways recognised in such Convention as having an
international character. This Convention shall apply in particular to the whole or part of the
abovementioned river system of the Danube, and such other parts of that river system as may be
covered by a general definition<br><br>
Hungary undertakes, in accordance with the provisions of Article 314, to adhere to the said
General Convention.<br><br>
<b>ARTICLE 284</b><br>
Hungary shall cede to the Allied and Associated Powers concerned, within a maximum period of three months from the date on which notification shall be
given her, a proportion of the tugs and vessels remaining registered in the ports of the river
system referred to in Article 275 after the deduction of those surrendered by way of restitution or
reparation. Hungary shall in the same way cede material of all kinds necessary to the Allied and
Associated Powers concerned for the utilisation of that river system.<br><br>
The number of the tugs and vessels and the amount of the material so ceded, and their
distribution, shall be determined by an arbitrator or arbitrators nominated by the United States of
America, due regard being had to the legitimate needs of the parties concerned, and particularly to
the shipping traffic during the five years preceding the war.<br><br>
All craft so ceded shall be provided with their fittings and gear, shall be in a good state of repair
and in condition to carry goods, and shall be selected from among those most recently built.
Wherever the cessions made under the present Article involve a change of ownership, the
arbitrator or arbitrators shall determine the rights of the former owners as they stood on October
15, 1918, and the amount of the compensation to be paid to them, and shall also direct the manner
in which such payment is to be effected in each case. If the arbitrator or arbitrators find that the
whole or part of this sum will revert directly or indirectly to States from whom reparation is due,
they shall decide the sum to be placed under this head to the credit of the said States.<br><br>
As regards the Danube the arbitrator or arbitrators referred to in this Article will also decide all
questions as to the permanent allocation and the conditions thereof of the vessels whose
ownership or nationality is in dispute between States.<br><br>
Pending final allocation the control of these vessels shall be vested in a Commission consisting of
representatives of the United States of America, the British Empire, France and Italy, who will be
empowered to make provisional arrangements for the working of these vessels in the general
interest by any local organisation, or failing such arrangements by themselves, without prejudice
to the final allocation.<br><br>
As far as possible these provisional arrangements will be OD a commercial basis, the net receipts
by the Commission for the hire of these vessels being disposed of as directed by the Reparation
Commission.<br><br>
<b>(2) Special Clauses relating to The Danube.</b><br><br>
<b>ARTICLE 285.</b><br>
The European Commission of the Danube reassumes the powers it possessed before the war.
Nevertheless, as a provisional measure, only representatives of Great Britain, France, Italy and
Roumania shall constitute this Commission.<br><br>
<b>ARTICLE 286.</b><br>
From the point where the competence of the European Commission ceases, the Danube system
referred to in Article 275 shall be placed under the administration of an International Commission
composed as follows:<br><br>
2 representatives of German riparian States;<br><br>
1 representative of each other riparian State;<br><br>
1 representative of each non-riparian State represented in the future on the European Commission
of the Danube.<br><br>
If certain of these representatives cannot be appointed at the time of the coming into force of the
present Treaty, the decisions of the Commission shall nevertheless be valid.<br><br>
<b>ARTICLE 287.</b><br>
The International Commission provided for in the preceding Article shall meet as soon as possible
after the coming into force of the present Treaty, and shall undertake provisionally the
administration of the river in conformity with the provisions of Articles 276 and 278 to 282, until
such time as a definitive statute regarding the Danube is concluded by the Powers nominated by
the Allied and Associated Powers.<br><br>
The decisions of this International Commission shall be taken by a majority vote. The salaries of
the Commissioners shall be fixed and paid by their respective countries.<br><br>
As a provisional measure, any deficit in the administrative expenses of this International
Commission shall be borne equally by the States represented on the Commission.
In particular this Commission shall regulate the licencing of pilots, charges for pilotage and the
administration of the pilot service.<br><br>
<b>ARTICLE 288.</b><br>
Hungary agrees to accept the regime which shall be laid down for the Danube by a Conference of
the Powers nominated by the Allied and Associated Powers, which shall meet within one year
after the coming into force of the present Treaty, and at which Hungarian representatives may be
present.<br><br>
Until such time as a definite statute regarding the Danube is concluded, the International
Commission provided for in Article 286 shall have provisionally under its control the equipment,
buildings and installations used for carrying out and maintaining works on the section of the
Danube between Turnu-Severin and Moldava. The final allocation of the equipment, buildings and
installations shall be determined by the Conference provided for in the preceding paragraph.
Hungary renounces all interest in and all control over the said equipment, buildings and
installations.<br><br>
<b>ARTICLE 289.</b><br>
The mandate given by Article 57 of the Treaty of Berlin of July 13, 1878, to Austria-Hungary,
and transferred by her to Hungary, to carry out works at the Iron Gates, is abrogated. The
Commission entrusted with the administration of this part of the river shall lay down provisions
for the settlement of accounts subject to the financial provisions of the present Treaty. Charges
which may be necessary shall in no case be levied by Hungary.<br><br>
<b>ARTICLE 290.</b><br>
Should the Czecho-Slovak State, the Serb-Croat-Slovene State or Roumania, with the
authorisation of or under mandate from the International Commission, undertake maintenance,
improvement, weir, or other works on a part of the river system -which forms a frontier, these
States shall enjoy on the opposite bank, and also on the part of the bed which is outside their
territory, all necessary facilities for the survey, execution and maintenance of such works.<br><br>
<b>ARTICLE 291.</b><br>
Hlmgary shall be obliged to make to the European Commission of the Danube all restitutions,
reparations and indemnities for damages inflicted on the Commission during the war. <br><br>   
<hr>
<b>CHAPTER III.<br>
HYDRAULIC SYSTEM.<br><br>
ARTICLE 292.</b><br>
In default of any provisions to the contrary, when as the result of the fixing of a new frontier the
hydraulic system (canalisation, inundations, irrigation, drainage, or similar matters) in a State is
dependent on works executed within the territory of another State, or when use is made on the
territory of a State, in virtue of pre-war usage, of water or hydraulic power, the source of which is
on the territory of another State, an agreement shall be made between the States concerned to
safeguard the interests and rights acquired by each of them.<br><br>
Unless otherwise provided, when use is made for municipal or domestic purposes in one State of
electricity or water, the source of which as the result of the fixing of a new frontier is on the
territory of another State, an agreement shall be made between the States concerned to safeguard
the interests and rights acquired by each of them. Pending an agreement, central electric stations
and waterworks shall be required to continue the supply up to an amount corresponding to the
undertakings and contracts in force on November 3, 1918.<br><br>
Failing an agreement in the case of either of the above paragraphs, and subject to the provisions of
Article 293, the matter shall be regulated by an arbitrator appointed by the Council of the League
of Nations.<br><br>
<b>ARTICLE 293.</b><br>
In view of the application of Article 292 to the territories of the former Kingdom of Hungary
forming the Basin of the Danube, excluding the Basin of the Olt, as well as for the exercise of the
powers provided for below, there shall be set up, in the common interest of the States possessing
sovereignty over the territories in question, a permanent technical Hydraulic System Commission,
composed of one representative of each of the States territorially concerned and a Chairman
appointed by the Council of the League of Nations.<br><br>
This Commission shall bring about the conclusion, and supervise and, in urgent cases, ensure the
carrying out, of the agreements provided for in Article 292; it shall maintain and improve,
particularly as regards deforestation and afforestation, the uniform character of the hydraulic
system, as well as of the services connected therewith, such as the hydrometric service and the
service of information as to the rising of the waters. It shall also study questions relating to
navigation, excepting those falling within the competence of the Commission for regulating the
navigation of the Upper Danube, which it shall refer to the said Commission, and it shall give
special consideration to fishery interests. The Commission shall in addition undertake all works or
schemes and shall establish all services with which it may be charged by the unanimous consent of
the interested States.<br><br>
The Hydraulic System Commission shall meet within three months from the coming into force of
the present Treaty; it shall draw up a regulation as to its functions and procedure, which will be
subject to approval by the States concerned.<br><br>
Any disputes which may arise out of the matters dealt with in this Article shall be settled as
provided by the League of Nations.<br><br>

<b>SECTION III.<br>
RAILWAYS.<br>
CIIAPTER I.<br>
FREEDOM OF TRANSIT TO THE ADRIATIC FOR HUNGARY.<br><br>
ARTICLE 294.</b><br>
Free access to the Adriatic Sea is accorded to Hungary, who with this object will enjoy freedom
of transit over the territories and in the ports severed from the former Austro-Hungarian
Monarchy.<br><br>
Freedom of transit is the freedom defined in Article 268 until such time as a General Convention
on the subject shall have been concluded between the Allied and Associated Powers, whereupon
the dispositions of the new Convention shall be substituted therefor.<br><br>
Special conventions between the States or Administrations concerned will lay down the
conditions of the exercise of the right accorded above, and will settle in particular the method of
using the ports and the free zones existing in them, and the railways ordinarily giving access
thereto, the establishment of international (joint) ervices and tariffs, including through tickets and
way bills, and the maintenance of the Convention of Berne of October 14, I890, and its
supplementary provisions until its replacement by a new Convention.<br><br>
Freedom of transit will extend to postal, telegraphic and telephonic services.<br><br>
<hr>
<b>CHAPTER II.<br>
CLAUSES RELATING TO INTERNATIONAL TRANSPORT.<br><br>
ARTICLE 295.</b><br>
Goods coming from the territories of the Allied and Associated Powers and going to Hungary, or
in transit through Hungary from or to the territories of the Allied and Associated Powers, shall
enjoy on the Hungarian railways as regards charges to be collected (rebates and drawbacks being
taken into account), facilities, and all other matters, the most favourable treatment applied to
goods of the same kind carried on any Hungarian lines, either in internal traffic, or for exports
import or in transit, under similar conditions of transport, for example as regards length of route.
The same rule shall be applied, on the request of one or more of the Allied and Associated
Powers, to goods specially designated by such Power or Powers coming from Hungary and going
to their territories.<br><br>
International tariffs established in accordance with the rates referred to in the preceding paragraph
and involving through way bills shall be established when one of the Allied and Associated Powers
shall require it from Hungary.<br><br>
However, without prejudice to the provisions of Articles 272 and 273, Hungary undertakes to
maintain on her own lines the regime of tariffs existing before the war as regards traffic to
Adriatic and Black Sea ports, from the point of view of competition with North German ports.<br><br>
<b>ARTICLE 296.</b><br>
From the coming into force of the present Treaty the High Contracting Parties shall renew, in so
far as concerns them and under the reserves indicated in the second paragraph of the present
Article, the Conventions and Arrangements signed at Berne on October 14, 1890, September 20,
I893, July 16, I895, June 16, 1898, and September 19, I906, regarding the transportation of
goods by rail.<br><br>
If within five years from the date of the coming into force of the present Treaty a new Convention
for the transportation of passengers, luggage and goods by rail shall have been concluded to
replace the Berne Convention of October 14, 1890, and the subsequent additions referred to
above, this new Convention and the supplementary provisions for international transport by rail
which may be based on it shall bind Hungary, even if she shall have refused to take part in the
preparation of the Convention or to subscribe to it. Until a new Convention shall have been
concluded, Hungary shall conform to the provisions of the Berne Convention and the subsequent
additions referred to above and to the current supplementary provisions.<br><br>
<b>ARTICLE 297.</b><br>
Hungary shall be bound to co-operate in the establishment of through ticket services (for
passengers and their luggage) which shall be required by any of the Allied and Associated Powers
to ensure their communication by rail with each other and with all other countries by transit across
the territories of Hungary; in particular Hungary shall, for this purpose, accept trains and carriages
coming from the territories of the Allied and Associated Powers and shall forward them with a
speed at least equal to that of her best long-distance trains orl the same lines. The rates applicable
to such through services shall not in any case be higher than the rates collected on Hungarian
internal services for the same distance, under the same conditions of speed and comfort.
The tariffs applicable under the same conditions of speed and comfort to the transportation of
emigrants going to or coming from ports of the Allied and Associated Powers and using the
Hungarian railways shall not be at a higher kilometric rate than the most favourable tariffs
(drawbacks and rebates being taken into account) enjoyed on the said railways by emigrants going
to or coming from any other ports.<br><br>
<b>ARTICLE 298.</b><br>
Hungary shall not apply specially to such through services, or to the transportation of emigrants
going to or coming from ports of the Allied and Associated Powers, any technical, fiscal or
administrative measures, such as measures of customs examination,
general police, sanitary police, and control, the result of which would be to impede or delay such
services.<br><br>
<b>ARTICLE 299.</b><br>
In case of transport partly by rail and partly by internal navigation, with or without through way
bill, the preceding Articles shall apply to the part of the journey performed by rail.<br><br>
<hr>
<b>CHAPTER III.<br>
ROLLING STOCK.<br><br>
ARTICLE 300.</b><br>
Hungary undertakes that Hungarian wagons shall be fitted with apparatus allowing:<br><br>
(I) Of their inclusion in goods trains on the linesof such of the Allied and Associated Powers as
are parties to the Berne Convention of May 15, 1886, as modified on May 18, 1907, without
hampering the action of the continuous brake which may be adopted in such countries within ten
years of the coming into force of the present Treaty, and<br><br>
(2) Of the inclusion of wagons of such countries in all goods trains on Hungarian lines.
The rolling stock of the Allied and Associated Powers shall enjoy on the Hungarian lines the same
treatment as Hungarian rolling stock as regards movement, upkeep and repairs.<br><br>
<hr>
<b>CHAPTER IV.<br>
TRANSFERS OF RAILWAY LINES.<br><br>
ARTICLE 30I.</b><br>
Subject to any special provisions concerning the transfer of ports, waterways and railways
situated in the territories transferred under the present Treaty, and to the financial conditions
relating to the concessionaires and the pensioning of the personnel, the transfer of railways will
take place under the following conditions:<br><br>
(I) The works and installations of all the railroads shall be handed over complete and in good
condition.<br><br>
(2) When a railway system possessing its own rolling stock is
handed over in its entirety by Hungary to one of the Allied and Associated Powers, such stock
shall be handed over complete, in accordance with the last inventory before November 3, 1918,
and in a normal state of upkeep.<br><br>
(3) As regards lines without any special rolling stock, the distribution of the stock existing on the
system to which these lines belong shall be made by Commissions of experts designated by the
Allied and Associated Powers, on which Hungary shall be represented. These Commissions shall
have regard to the amount of the material registered on these lines in the last inventory before
November 3, I918, to the length of track (sidings included), and the nature and amount of the
traftic. These Commissions shall also specify the locomotives, carriages and wagons to be handed
over in each case; they shall decide upon the conditions of their acceptance, and shall make the
provisional arrangements necessary to ensure their repair in Hungarian workshops.<br><br>
(4) Stocks of stores, fittings and plant shall be handed over under the same conditions as the
rolling stock.<br><br>
The provisions of paragraphs 3 and 4 above shall be applied to the lines of former Russian Poland
converted by the AustroHungarian authorities to the normal gauge, such lines being regarded as
detached from the Austrian and Hungarian State systems.<br><br>
<hr>
<b>CHAPTER V.<br>
PROVISIONS RELATING TO CERTAIN RAILWAY LINES.<br><br>
ARTICLE 302.</b><br>
When, as a result of the fixing of new frontiers, a railway connection between two parts of the
same country crosses another country, or a branch line from one country has its terminus in
another, the conditions of working, if not specifically provided for in the present Treaty, shall be
laid down in a convention between the railway administrations concerned. If the administrations
cannot come to an agreement as to the terms of such convention, the points of difference shall be
decided by Commissions of experts composed as provided in the preceding Article.<br><br>
In particular, the convention as to the working of the line between Csata and Losoncz shall
provide for the direct passage in each direction through Hungarian territory of Czecho-Slovak
trains with Czecho-Slovak traction and Czecho-Slovak train crews. Nevertheless, unless
otherwise agreed, this right of passage shall lapse either on the completion of a direct connection wholly in Czecho-Slovak territory
between Csata and Losoncz or at the expiration of fifteen years from the coming into force of the
present Treaty, whichever may occur first.<br><br>
Similarly, the convention as to the working of the portion in Hungarian territory of the line from
Nagyszalonta through Bekescsaba to Arad and to Kisjeno shall provide for the direct passage in
each direction through Hungarian territory of Roumanian trains with Roumanian traction and
Roumanian train crews. Unless otherwise agreed this right of passage shall lapse either on the
completion of a direct connection wholly in Roamanian territory between the
Nagyszalonta-Bekescsaba and the Kisjeno-Bekescsaba lines or at the expiration of ten years from
the coming into force of the present Treaty.<br><br>
The establishment of all the new frontier stations between Hungary and the contiguous Allied and
Associated States, as well as the working of the lines between those stations, shall be settled by
agreements similarly conduded.<br><br>
<b>ARTICLE 303.</b><br>
In order to assure to the town and district of Gola in Serb-Croat-Slovene territory the use of the
station of Gola in Hungarian territory and of the railway serving the same, and in order to ensure
the free use to Serb-Croat-Slovene traffic of direct railway connection between the
Csaktornya-Nagy-Kanisza line and the Zagrab-Gyekenyes line during the time required for the
completion of a direct railway in Serb-Croat-Slovene territory between the above lines, the
conditions of working of the station of Gola and of the railway from Kotor to Barcz shall be laid
down in a convention between the Hungarian and Serb-Croat-Slovene railway administrations
concerned. If these administrations cannot come to an agreement as to the terms of such
convention, the points of difference shall be decided by the competent Commission of experts
referred to in Article 301 of the present Treaty.<br><br>
<b>ARTICLE 304.</b><br>
With the object of ensuring regular utilization of the railroads of the former Austro-Hungarian
Monarchy owned by private companies which, as a result of the stipulations of the present Treaty,
will be situated in the territory of several States, the administrative and technical re-organisation of the said lines shall be regulated in each instance by an agreement between the owning company and the States territorially concerned.<br><br>
Any differences on which agreement is not reached, including questions relating to the
interpretation of contracts concerning the expropriation of the lines, shall be submitted to
arbitrators designated by the Council of the League of Nations.<br><br>
This arbitration may, as regards the South Austrian Railway Company, be required either by the
Board of Management or by the Committee representing the bondholders.<br><br>
<b>ARTICLE 305.</b><br>
Within a period of five years from the coming into force of the present Treaty, the Czecho-Slovak
State may require the improvement of the Bratislava (Pressburg)-Nagy-Kanisza line on Hungarian
territory.<br><br>
The expenses shall be divided in proportion to the advantages derived by the interested States.
Failing agreement, such division shall be made by an arbitrator appointed by the League of
Nations.<br><br>
<b>ARTICLE 306.</b><br>
In view of the importance to the Czecho-Slovak State of free communication between that State
and the Adriatic, Hungary recognises the right of the Czecho-Slovak State to run its own trains
over the sections included within her territory of the following lines:<br><br>
(1) From Bratislava (Pressburg) towards Fiume via Sopron, Szombathely and Mura-Kereszturr
and a branch from Mura-Keresztur towards Pragerhof;<br><br>
(2) From Bratislava (Pressburg) towards Fiume via Hegyeshalon, Csorna, Hegyfalu, Zalaber,
Zalaszentivan, Mura-Keresztur, and the branch lines from Hegyfalu to Szombathely and from
Mura-Keresztur to Pragerhof.<br><br>
On the application of either party, the route to be followed by the Czecho-Slovak trains may be
modified either permanently or temporarily by mutual agreement between the Czecho-Slovak
Railway Administration and those of the railways over which the running powers are exercised.<br><br>
<b>ARTICLE 307.</b><br>
The trains for which the running powers are used shall not engage in local traffic, except by
agreement between the State traversed and the Czecho-Slovak State.<br><br>
Such running powers will include, in particular, the right to establish running sheds with small
shops for minor repairs to locomotives and rolling stock, and to appoint representatives where
necessary to supervise the working of Czecho-Slovak trains.<br><br>
The technical, administrative and financial conditions under which the rights of the Czecho-Slovak
State shall be exercised shall be laid down in a Convention between the railway administration of
the Czecho-Slovak State and the railway administrations of the Hungarian systems concerned. If
the administrations cannot come to an agreement on the terms of this Convention, the points of
difference shall be decided by an arbitrator nominated by Great Britain, and his decisions shall be
binding on all parties.<br><br>
In the event of disagreement as to the interpretation of the Convention or of difficulties arising
unprovided for in the Convention, the same form of arbitration will be adopted until such time as
the League of Nations may lay down some other procedure.<br>
<hr>
<b>CHAPTER VI.<br>
TRANSITORY PROVISION.<br><br>
ARTICLE 308.<br>
</b>Hungary shall carry out the instructions given her, in regard to transport, by an authorised body
acting on behalf of the Allied and Associated Powers:<br><br>
(I) For the carriage of troops under the provisions of the present Treaty, and of material,
ammunition and supplies for army use;<br><br>
(2) As a temporary measure, for the transportation of supplies for certain regions, as well as for
the restoration, as rapidly as possible, of the normal conditions of transport, and for the
organisation of postal and telegraphic services.<br><br>
<hr>
<b>CHAPTER VII.<br>
TELEGRAPHS AND TELEPHONES.<br><br>
ARTICLE 309.<br>
</b>Notwithstanding any contrary stipulations in existing treaties, Hungary undertakes to grant freedom of transit for telegraphic correspondence and telephonic communications coming from or going to any one of the Allied and Associated Powers, whether neighbours or not, over such lines as may be most suitable for international transit and in accordance with the tariffs in force. This correspondence and these communications shall be subjected to no delay or restriction; they shall enjoy in Hungary national treatment in regard to every kind of facility and especially in regard to rapidity of transmission. No payment, facility or restriction shall depend directly or indirectly on the nationality of the transmitter or the addressee.<br><br>
<b>ARTICLE 310.</b><br>
In view of the geographical situation of the Czecho-Slovak State, Hungary agrees to the
following modifications in the International Telegraph and Telephone Conventions referred to in
Article 2I8, Part X (Economic Clauses), of the present Treaty:<br><br>
(I) On the demand of the Czecho-Slovak State, Hungary shall provide and maintain trunk
telegraph lines across Hungarian territory.<br><br>
(2) The annual rent to be paid by the Czecho-Slovak State for each of such lines will be calculated
in accordance with the provisions of the above-mentioned Conventions, but unless otherwise
agreed shall not be less than the sum which would be payable under those Conventions for the
number of messages laid down in those Conventions as conferring the right to demand a new
trunk line, taking as a basis the reduced tariff provided for in Article 23, paragraph 5, of the
International Telegraph Convention as revised at Lisbon.<br><br>
(3) So long as the Czecho-Slovak State shall pay the above minimum annual rent of a trunk line:<br><br>
(a) The line shall be reserved exclusively for transit traffic to and from the Czecho-Slovak State;<br><br>
(b) The faculty given to Hungary by Article 8 of the International Telegraph Convention of July
22, 1875, to suspend international telegraph services shall not apply to that line.<br><br>
(4) Similar provisions will apply to the provision and maintenance of trunk telephone circuits, but
the rent payable by the Czecho-Slovak State for a trunk telephone circuit shall, unless otherwise
agreed, be double the rent payable for a trunk telegraph line.<br><br>
(5) The particular lines to be provided, together with any necessary administrative, technical and
financial conditions not provided for in existing International Conventions or in this Article, shall
be fixed by a further convention between the States concerned. In default of agreement on such
convention they will be fixed by an arbitrator appointed by the Council of the League of Nations.<br><br>
(6) The stipulations of the present Article may be varied at any time by agreement between
Hungary and the Czecho-Slovak State. After the expiration of ten years from the coming into
force of the present Treaty the conditions under which the Czecho-Slovak State shall enjoy the
rights conferred by this Article may, in default of agreement by the parties, be modified at the
request of either party by an arbitrator designated by the Council of the League of Nations.<br><br>
(7) In case of any dispute between the parties aE to the interpretation either of this Article or of
the convention referred to in paragraph 5, this dispute shall be submitted for decision to the
Permanent Court of International Justice to be established by the League of Nations.<br><br>
<hr><b>
SECTION IV.<br>
DISPUTES AND REVISION OF PERMANENT CLAUSES.<br><br>
ARTICLE 3II.</b><br>
Disputes which may arise between interested Powers with regard to the interpretation and
application of this Part of the present Treaty shall be settled as provided by the League of
Nations.<br><br>
<b>ARTICLE 312.</b><br>
At any time the League of Nations may recommend the revision of such of the above Articles as
relate to a permanent administrative regime.<br><br>
<b>ARTICLE 313.</b><br>
The stipulations in Articles 268 to 274, 277, 295, 297 to 299 and 309 shall be subject to revision
by the Council of the League of Nations at any time after three years from the coming into force
of the present Treaty.<br><br>
Failing such revision, no Allied or Associated Power can claim
after the expiration of the above period of three years the benefit of any of the stipulations in the
Articles enumerated above on behalf of any portion of its territories in which reciprocity is not
accorded in respect of such stipulations. The period of three years during which reciprocity
cannot be demanded may be prolonged by the Council of the League of Nations.<br><br>
The benefit of the stipulations mentioned above cannot be claimed by States to which territory of
the former Austro-Hungarian Monarchy has been transferred, or which have arisen out of the
dismemberment of that Monarchy, except upon the footing of giving in the territory passing under
their sovereignty in virtue of the present Treaty reciprocal treatment to Hungary.<br><br>
<hr>
<b>SECTION V.<br>
SPECIAL PROVISION.<br><br>
ARTICLE 314.</b><br>
Without prejudice to the special obligations imposed on her by the present Treaty for the benefit
of the Allied and Associated Powers, Hungary undertakes to adhere to any General Conventions
regarding the international regime of transit, waterways, ports or railways which may be
concluded by the Allied and Associated Powers, with the approval of the League of Nations,
within five years of the coming into force of the present Treaty.
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