Claims made by Hungarian nationals under this Article shall be submitted to the Mixed Arbitral Tribunal provided for by Article 239.

The property, rights and interests here referred to do not include property which is the subject of Article 191, Part IX (Financial Clauses).

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.

ARTICLE 251.

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.

ARTICLE 252.

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 war" 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."

ARTICLE 253.

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.

ARTICLE 254.

Section III, except Article 231 (d), shall not apply to debts contracted between Hungarian nationals and nationals of the former Kingdom of Hungary.

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.

ARTICLE 255.

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.

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.

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.

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.

The provisions of this Article shall apply similarly to co-operative 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.

ARTICLE 256.

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.

ARTICLE 257.

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.

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 AustroHungarian Monarchy to the Offices of the States to which are transferred territory of the said Monarchy and to the Offices of new States.

ARTICLE 258.

Without prejudice to other provisions of the present Treaty, the Hungarian Government undertakes so for 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 AustroHungarian Monarchy, or by public or private organizations 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 insurances. The conditions of the delivery will be determined by special conventions to be concluded between the Hungarian Government and the Governments concerned.

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 mission 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.

ARTICLE 259.

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 263 of the Treaty of Peace with Austria.

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.

PART XI.-AERIAL NAVIGATION.

ARTICLE 260.

The aircraft of the Allied and Associated Powers shall have full 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.

ARTICLE 261.

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.

ARTICLE 262.

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.

ARTICLE 263.

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.

ARTICLE 264.

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.

ARTICLE 265.

As regards internal commercial air traffic, the aircraft of the Allied and Associated Powers shall enjoy in Hungary most-favoured nation treatment.

ARTICLE 266.

Hungary undertakes to enforce the necessary measures to ensure that all Hungarian aircraft flying 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.

ARTICLE 267.

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.

PART XII.—PORTS, WATERWAYS AND RAILWAYS.

SECTION I.-GENERAL PROVISIONS.

ARTICLE 268.

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.

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.

Goods in transit shall be exempt from all customs or other similar duties.

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.

ARTICLE 269.

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.

ARTICLE 270.

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.

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