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ARTICLE 154.

Egyptian goods entering Germany shall enjoy the treatment accorded to British goods.

SECTION VII.-Turkey and Bulgaria.

ARTICLE 155.

Germany undertakes to recognise and accept all arrangements which the Allied and Associated Powers may make with Turkey and Bulgaria with reference to any rights, interests and privileges whatever which might be claimed by Germany or her nationals in Turkey and Bulgaria and which are not dealt with in the provisions of the present Treaty.

Note to IV, 155

See articles 258-61 of this treaty.

The arrangements with Bulgaria particularly referred to are those contained in the treaty of peace with Bulgaria signed at Neuillysur-Seine on November 27, 1919 (112 British and Foreign State Papers, p. 781). The treaty of peace with Turkey was signed at Lausanne on July 24, 1923 (28 League of Nations Treaty Series, p. 11) and was in force August 6, 1924.

SECTION VIII.-Shantung.

ARTICLE 156.

Germany renounces, in favour of Japan, all her rights, title and privileges--particularly those concerning the territory of Kiaochow, railways, mines and submarine cables-which she acquired in virtue of the Treaty concluded by her with China on March 6, 1898, and of all other arrangements relative to the Province of Shantung. All German rights in the Tsingtao-Tsinanfu Railway, including its branch lines, together with its subsidiary property of all kinds. stations, shops, fixed and rolling stock, mines, plant and material for the exploitation of the mines, are and remain acquired by Japan, together with all rights and privileges attaching thereto.

The German State submarine cables from Tsingtao to Shanghai and from Tsingtao to Chefoo, with all the rights, privileges and properties attaching thereto, are similarly acquired by Japan, free and clear of all charges and encumbrances.

Note to IV, 156

The convention between China and Germany concerning the lease of Kiaochow signed at Peking March 6, 1898 (95 British and Foreign State Papers, p. 1005) was exacted from China in consequence of the death of certain German missionaries in Chinese territory.

This article was included in the treaty in consequence of two prior conditions:

1. The Japanese declaration of war against Germany of August 23, 1914 was preceded by an ultimatum of August 15 (Naval War College, International Law Documents . . . 1917, p. 176) which contained this demand:

"Second.-To deliver on a date not later than September 15, 1914, to the Imperial Japanese authorities without condition or compensation the entire leased territory of Kiaochou with a view to eventual restoration of the same to China.”

The demand was made with the knowledge and support of Great Britain, with which Japan was then in alliance under the agreement of July 13, 1911 (104 British and Foreign State Papers, p. 173).

2. The Japanese representative on the Council of Ten at the Paris Peace Conference on January 27, 1919 presented a claim to cancel all German interests in the leased territory of Kiaochow (Foreign Relations, The Paris Peace Conference, 1919, III, 738). The Chinese representative argued for direct restitution to China instead of the indirect restitution proposed by Japan, whose treaty with China of May 25, 1915 (Foreign Relations, 1915, p. 197) avoided rather than dealt with that point. On April 15 the Japanese representative on the Council of Foreign Ministers made the definite statement "that the areas leased by Germany in China should positively be returned to China" (Foreign Relations, The Paris Peace Conference, 1919, Iv, 556). Article 156 was drafted in the light of that undertaking.

The German delegation declared that Germany was prepared to renounce all rights and privilege in Kiaochow and Shantung, provided it was indemnified for the loss of state property (ibid., vi, 844).

The Allies refused to make compensation for state property, but were prepared to apply to such private rights of German nationals as might be proved "the general principles laid down in the Conditions of Peace in respect of compensation of this character" (ibid., p. 954).

At the Washington Conference in 1921-22 care was taken to see

Note to IV, 156—Continued

that Japan's undertaking would be carried out, and negotiations were then begun for its rendition of Shantung to China.

China and Japan signed a treaty "for the settlement of outstanding questions relative to Shantung" at Washington on February 4, 1922 (10 League of Nations Treaty Series, p. 309). It entered into force on June 2, 1922. The restoration to China of the former German leased territory of Kiaochow was effected by a joint commission which completed its work within six months. The maritime customhouse at Tsingtao and the salt industry were fully transferred, and Japanese troops and gendarmes .were withdrawn promptly and unconditionally. The transfer of public properties, of the Tsingtao-Tsinantu Railway, the extensions of the railway, the mines, and the former German submarine cables were subject to conditions, principally designed to conserve or carry over Japanese interests involved.

An agreement signed at Peking on December 1, 1922 and immediately in force made detailed arrangements for the settlement of outstanding questions relative to Shantung (22 League of Nations Treaty Series, p. 179). The transfer of the former German leased territory of Kiaochow by Japan to China was effected on December 10, 1922. Japanese troops were withdrawn, Japanese leases that were retained were extended 30 years, and China paid yen 16,000,000 for Japanese public property. A similar agreement of December 5, 1922 dealt with questions relative to the Tsingtao-Tsinanfu Railway (ibid., p. 293), for which China agreed to pay yen 40,000,000.

ARTICLE 157.

The movable and immovable property owned by the German State in the territory of Kiaochow, as well as all the rights which Germany might claim in consequence of the works or improvements made or of the expenses incurred by her, directly or indirectly, in connection with this territory, are and remain acquired by Japan, free and clear of all charges and encumbrances.

Note to IV, 157

German railroads and mines in Kiaochow transferred to Japan were credited on the reparation account at 551,742 gold marks. All Japanese receipts to January 20, 1930 amounted to 10,013,105 gold marks.

ARTICLE 158.

Germany shall hand over to Japan within three months from the coming into force of the present Treaty the archives, registers, plans, title-deeds and documents of every kind, wherever they may be, relating to the administration, whether civil, military, financial, judicial or other, of the territory of Kiaochow.

Within the same period Germany shall give particulars to Japan of all treaties, arrangements or agreements relating to the rights, title or privileges referred to in the two preceding Articles.

PART V.

MILITARY, NAVAL AND AIR CLAUSES.
[The vertical rule indicates treaty text.]

Notes to Part V, Articles 159 to 213

...

The treaty restoring friendly relations between the United States and Germany, signed at Berlin, August 25, 1921 and in force on November 11, 1921 with retroactive effect to July 2, 1921, stipulates that "Germany undertakes to accord to the United States and the United States shall have and enjoy . . . all the rights and advantages" stipulated for its benefit by this part of this treaty, "notwithstanding the fact that such treaty has not been ratified by the United States". The rights and advantages of nationals of the United States specified in the joint resolution of Congress approved July 2, 1921 (p. 18) were specifically mentioned in an understanding included in the Senate's resolution of advice and consent to ratification of October 18, 1921. The Senate in that resolution made a further condition "that the United States shall not be represented or participate in any body, agency or commission, nor shall any person represent the United States as a member of any body, agency or commission in which the United States is authorized to participate by this Treaty, unless and until an Act of the Congress of the United States shall provide for such representation or participation".

Notes to Part V, Articles 159 to 213-Continued

This part is, ipsissimis verbis, an annex, technically a schedule, of that treaty restoring friendly relations as printed by the Department of State in Treaty Series 658 but not as printed in 42 Stat. 1939. It would be tedious and chiefly of professional military interest to follow in detail the ups and downs of German reduction of armament. At no time were the Allies convinced of the willing compliance of the German authorities with the requirements, as is evident from the salient instruments concluded on the subject, namely, the Paris protocol of January 10, 1920 (p. 743); the Spa protocol of July 9, 1920; the collective note of September 29, 1922; that of June 4, 1925 and the detailed statements attached thereto; the agreement of January 31, 1927; that of January 10, 1930; and the final report to the League of Nations of March 16, 1931. No subsequent control was attempted.

On April 20, 1920 the German Government asked for Allied consent until July 10 to the maintenance of an army of 200,000 men. The San Remo conference in a declaration dated April 26 asserted that the proposal "cannot even be examined so long as Germany fails in the most important obligations of the Treaty of Peace, and does not proceed with disarmament". The Allies could not permit a continuation of infractions of the treaty, which "must be executed and remain the basis of relations between Germany and the Allies". All measures, including occupation of German territory without any intention to annex, were to be taken to insure execution. The question raised by infraction and the necessary measures to insure execution "will be more easily solved by the exchange of views by the heads of Governments than by exchange of notes". On June 4 the German delegation brought up the matter again for consideration at the Spa conference. (United Kingdom, Protocols and Correspondence between the Supreme Council and the Conference of Ambassadors and the German Government and the German Peace Delegation between January 10, 1920, and July 17, 1920, Respecting the Execution of the Treaty of Versailles of June 28, 1919, Nos. 110, 113, and 150.) Other questions were discussed during the Allied conference at Boulogne-sur-Mer from which on June 22 there were noted "the slowness and lack of good will evinced by the German Government in the execution of the military, naval and air clauses of the Treaty of Peace". Germany was called upon to take certain action and to enact the legislation required by articles 170 and 211 (ibid., Nos. 165, 166, 168; file 763.72119/12056).

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