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ARTICLE 229.

The provisions of Articles 226 to 228 apply similarly to the Governments of the States to which territory belonging to the former Turkish Empire has been or may be assigned, in so far as concerns persons accused of having committed acts contrary to the laws and customs of war who are in the territory or at the disposal of such States.

If the persons in question have acquired the nationality of one of the said States, the Government of such State undertakes to take, at the request of the Power concerned and in agreement with it, or upon the joint request of all the Allied Powers, all the measures necessary to ensure the prosecution and punishment of such persons.

ARTICLE 230.

The Turkish Government undertakes to hand over to the Allied Powers the persons whose surrender may be required by the latter as being responsible for the massacres committed during the continuance of the state of war on territory which formed part of the Turkish Empire on August 1, 1914.

The Allied Powers reserve to themselves the right to designate the tribunal which shall try the persons so accused, and the Turkish Government undertakes to recognise such tribunal.

In the event of the League of Nations having created in sufficient time a tribunal competent to deal with the said massacres, the Allied Powers reserve to themselves the right to bring the accused persons mentioned above before such tribunal, and the Turkish Government undertakes equally to recognise such tribunal.

The provisions of Article 228 apply to the cases dealt with in this Article.

PART VIII.-FINANCIAL CLAUSES.

ARTICLE 231.

Turkey recognizes that by joining in the war of aggression which Germany and Austria-Hungary waged against the Allied Powers she has caused to the latter losses and sacrifices of all kinds for which she ought to make complete reparation.

On the other hand, the Allied Powers recognise that the resources of Turkey are not sufficient to enable her to make complete reparation.

In these circumstances, and inasmuch as the territorial rearrangements resulting from the present Treaty will leave to Turkey only a portion of the revenues of the former Turkish Empire, all claims against the Turkish Government for reparation are waived by the Allied Powers, subject only to the provisions of this Part and of Part IX (Economic Clauses) of the present Treaty.

The Allied Powers, desiring to afford some measure of relief and assistance to Turkey, agree with the Turkish Government that a Financial Commission shall be appointed consisting of one representative of each of the following Allied Powers who are specially interested, France, the British Empire and Italy, with whom there

shall be associated a Turkish Commissioner in a consultative capacity. The powers and duties of this Commission are set forth in the following Articles.

ARTICLE 232.

The Financial Commission shall take such steps as in its judgment. are best adapted to conserve and increase the resources of Turkey.

The Budget to be presented annually by the Minister of Finance to the Turkish Parliament shall be submitted, in the first instance, to the Financial Commission, and shall be presented to Parliament in the form approved by that Commission. No modification introduced by Parliament shall be operative without the approval of the Financial Commission.

The Financial Commission shall supervise the execution of the Budget and the financial laws and regulations of Turkey. This supervision shall be exercised through the medium of the Turkish Inspectorate of Finance, which shall be placed under the direct orders of the Financial Commission, and whose members will only be appointed with the approval of the Commission.

The Turkish Government undertakes to furnish to this Inspectorate all facilities necessary for the fulfilment of its task, and to take such action against unsuitable officials in the Financial Departments of the Government as the Financial Commission may suggest.

ARTICLE 233.

The Financial Commission shall, in addition, in agreement with the Council of the Ottoman Public Debt and the Imperial Ottoman Bank, undertake by such means as may be recognised to be opportune and equitable the regulation and improvement of the Turkish currency.

ARTICLE 234.

The Turkish Government undertakes not to contract any internal. or external loan without the consent of the Financial Commission.

ARTICLE 235.

The Turkish Government engages to pay, in accordance with the provisions of the present Treaty, for all loss or damage, as defined in Article 236, suffered by civilian nationals of the Allied Powers, in respect of their persons or property, through the action or negligence of the Turkish authorities during the war and up to the coming into force of the present Treaty.

The Turkish Government will be bound to make to the European Commission of the Danube such restitutions, reparations and indemnities as may be fixed by the Financial Commission in respect of damages inflicted on the said European Commission of the Danube during the war.

ARTICLE 236.

All the resources of Turkey, except revenues conceded or hypothecated to the service of the Ottoman Public Debt (see Annex 1),

shall be placed at the disposal of the Financial Commission, which shall employ them, as need arises, in the following manner:

(i) The first charge (after payment of the salaries and current expenses of the Financial Commission, and of the ordinary expenses of such Allied forces of occupation as may be maintained after the coming into force of the present Treaty in territories remaining Turkish) shall be the expenses of the Allied forces of occupation since October 30, 1918, in territory remaining Turkish, and the expenses of Allied forces of occupation in territories detached from Turkey in favour of a Power other than the Power which has borne the expenses of occupation.

The amount of these expenses and of the annuities by which they shall be discharged will be determined by the Financial Commission, which will so arrange the annuities as to enable Turkey to meet any deficiency that may arise in the sums required to pay that part of the interest on the Ottoman Public Debt for which Turkey remains responsible in accordance with this Part.

(ii) The second charge shall be the indemnity which the Turkish Government is to pay, in accordance with Article 235, on account of the claims of the Allied Powers for loss or damage suffered in respect of their persons or property by their nationals, (other than those who were Turkish nationals on August 1, 1914) as defined in Article 317, Part IX (Economic Clauses), through the action or negligence of the Turkish authorities during the war, due regard being had to the financial condition of Turkey and the necessity for providing for the essential expenses of its administration. The Financial Commission shall adjudicate on and provide for payment of all claims in respect of personal damage. The claims in respect to property shall be investigated, determined and paid in accordance with Article 287, Part IX (Economic Clauses). The Financial Commission shall fix the annuity to be applied to the settlement of claims in respect of persons as well as in respect of property, should the funds at the disposal of the Allied Powers in accordance with the said Article 287, be insufficient to meet this charge, and shall determine the currency in which the annuity shall be paid.

ARTICLE 237.

Any hypothecation of Turkish revenues effected during the war in respect of obligations (including the internal debt) contracted by the Turkish Government during the war is hereby annulled.

ARTICLE 238.

Turkey recognises the transfer to the Allied Powers of any claims to payment or repayment which Germany, Austria, Bulgaria or Hungary may have against her, in accordance with Article 261 of the Treaty of Peace concluded at Versailles on June 28, 1919, with Germany, and the corresponding Articles of the Treaties of Peace with Austria, Bulgaria and Hungary. The Allied Powers agree not to require from Turkey any payment in respect of claims so transferred.

ARTICLE 239.

No new concession shall be granted by the Turkish Government either to a Turkish subject or otherwise without the consent of the Financial Commission.

ARTICLE 240.

States in whose favour territory is detached from Turkey shall acquire without payment all property and possessions situated therein registered in the name of the Turkish Empire or of the Civil List.

ARTICLE 241.

States in whose favour territory has been detached from Turkey, either as a result of the Balkan Wars in 1913, or under the present Treaty, shall participate in the annual charge for the service of the Ottoman Public Debt contracted before November 1, 1914.

The Governments of the States of the Balkan Peninsula and the newly-created States in Asia in favour of whom such territory has been or is detached from Turkey shall give adequate guarantees for the payment of the share of the above annual charge allotted to them respectively.

ARTICLE 242.

For the purposes of this Part, the Ottoman Public Debt shall be deemed to consist of the Debt heretofore governed by the Decree of Mouharrem, together with such other loans as are enumerated in Annex I to this Part.

Loans contracted before November 1, 1914, will be taken into account in the distribution of the Ottoman Public Debt between Turkey, the States of the Balkan Peninsula and the new States set up in Asia.

This distribution shall be effected in the following manner:

(1) Annuities arising from loans prior to October 17, 1912 (Balkan Wars), shall be distributed between Turkey and the Balkan States, including Albania, which receive or have received any Turkish territory;

(2) The residue of the annuities for which Turkey remains liable after this distribution, together with those arising from loans contracted by Turkey between October 17, 1912, and November 1, 1914, shall be distributed between Turkey and the States in whose favour territory is detached from Turkey under the present Treaty.

ARTICLE 243.

The general principle to be adopted in determining the amount of the annuity to be paid by each State will be as follows:

The amount shall bear the same ratio to the total required for the service of the Debt as the average revenue of the transferred territory bore to the average revenue of the whole of Turkey (including in each case the yield of the Customs surtax imposed in the year 1907) over the three financial years 1909-10, 1910-11, and 1911-12.

47808-S. Doc. 7, 67-1-25

ARTICLE 244.

The Financial Commission shall, as soon as possible after the coming into force of the present Treaty, determine in accordance with the principle laid down in Article 243 the amount of the annuities referred to in that Article, and communicate its decisions in this respect to the High Contracting Parties.

The Financial Commission shall fulfil the functions provided for in Article 134 of the Treaty of Peace concluded with Bulgaria on November 27, 1919.

ARTICLE 245.

The annuities assessed in the manner above provided will be payable as from the date of the coming into force of the Treaties by which the respective territories were detached from Turkey, and, in the case of territories detached under the present Treaty, from March 1, 1920; they shall continue to be payable (except as provided by Article 252) until the final liquidation of the Debt. They shall, however, be proportionately reduced as the loans constituting the Debt are successively extinguished.

ARTICLE 246.

The Turkish Government transfers to the Financial Commission all its rights under the provisions of the Decree of Mouharrem and subsequent Decrees.

The Council of the Ottoman Public Debt shall consist of the British, French and Italian delegates, and of the representative of the Imperial Ottoman Bank, and shall continue to operate as heretofore. It shall administer and levy all revenues conceded to it under the Decree of Mouharrem and all other revenues the management of which has been entrusted to it in accordance with any other loan contracts previous to November 1, 1914.

The Allied Powers authorise the Council to give administrative assistance to the Turkish Ministry of Finance, under such conditions as may be determined by the Financial Commission with the object of realising as far as possible the following programme:

The system of direct levy of certain revenues by the existing Administration of the Ottoman Public Debt shall, within limits to be prescribed by the Financial Commission, be extended as widely as possible and applied throughout the provinces remaining Turkish. On each new creation of revenue or of indirect taxes approved by the Financial Commission, the Commission shall consider the possibility of entrusting the administration thereof to the Council of the Debt for the account of the Turkish Government.

The administration of the Customs shall be under a Director-General appointed by and revocable by the Financial Commission and answerable to it. No change in the schedule of the Customs charges shall be made except with the approval of the Financial Commission. The Governments of France, Great Britain and Italy will decide, by a majority and after consulting the bondholders, whether the Council should be maintained or replaced by the Financial Com

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