ECONOMIC TREATY, PROVIDED FOR IN ARTICLE XXIX OF THE TREATY OF PEACE BETWEEN ROUMANIA AND THE CENTRAL POWERS. SIGNED AT BUCHAREST, 7 MAY, 1918.


Source:  Source:  United States, Department of State, Texts of the Roumanian "Peace" (Washington, DC: United States Government Printing Office, 1918), pp. 55-85.


[German text as published in the Norddeutsche Aligemeine Zeitung, 15 May, 1918.]

[Translation.]

On the basis of Article 29, Section 1, of the Treaty of Peace between Germany, Austria-Hungary, Bulgaria, and Turkey on the one hand, and Rumania on the other hand, the Plenipotentiaries of the German Empire, viz.:

and

and also the Plenipotentiaries of the Kingdom of Roumania, viz.:

and

have agreed to conclude a special arrangement as to the future regulation of the economic relations, and the railway, postal and telegraph communications between Germany and Roumania, as also with regard to the establishment of a dockyard at Giurgiu.

The Plenipotentiaries, after the exchange of their powers, found in good and due form, arrived at the following agreements:

A.--DECISIONS ON REGULATION OF ECONOMIC RELATIONS BETWEEN GERMANY AND ROUMANIA.

1. The contracting parties agree that on the conclusion of peace, the state of war terminates like-wise in the spheres of commerce and finance. They pledge themselves not to participate in any measures, either directly or indirectly, which aim at the continuation of hostilities in these spheres, and to prevent such measures within their own dominions with all the means at their disposal.

In the transition period which is necessary for recovery from the consequences of the war and the re-establishment of norma1 conditions, the contracting parties engage, as far as possible, to interpose no hindrances to the procuring of necessary goods by the adoption of high import duties, and are prepared to enter into negotiations at once with the object of temporarily retaining and extending the customs exemptions established during the war.

2. So far as goods of German or Roumanian origin lying in neutral States are concerned, which carry the condition that they must not be exported either directly or indirectly to the territories of the other contracting party, such limitations as to their disposition with regard to the contracting parties are to be abrogated. The two contracting parties engage, therefore, to inform without delay the Governments of the neutral States of the removal of such limitations.

3. Preferences accorded by one of the contracting parties during the war to other countries by the granting of concessions or other Government measures are to be cancelled, or extended to the other party by the granting of equal rights.

4. Roumania will make no claim to the preferential treatment which Germany accords to Austria-Hungary or any other country associated with it in a customs union, which borders directly on Germany, or indirectly through another country associated with it, or with Austria-Hungary in a customs union. Colonies, foreign possessions and protectorates occupy the same position as the mother country in this regard.

Germany will make no claim to the preferential treatment which Roumania accords to any other country associated with it in a customs union. which borders on Roumania directly or indirectly through another country associated with it in a customs union, or to the colonies, foreign possessions, or protectorates of one of the countries associated with it in a customs union.

5. The contracting parties will permit the recruiting of agricultural laborers and of workmen within their dominions. No obstacle will be interposed to their migration from the dominions of the one party to those of the other party. Workmen engaged in the public service and skilled mechanics are excepted.

6.  Until Section IV of the Petroleum Agreement, signed today, or other decisions replacing Section IV come into force, regarding the export from Roumania to Germany of crude oil and petroleum derivatives, and other goods referred to in the Petroleum Agreement, the Roumanian Government will neither impose export duties, forbid the export of these goods, nor subjecttheir export to other restrictions of any kind whatsoever.

7.  Subjects of the German Empire, as well as joint stock companies, and other commercial, industrial, or financial (including insurance) companies, which have legal status in Germany, shall be entitled to acquire moveable property of every kind, as well as real estate in the towns, for the purpose of conducting undertakings in connection with commerce, industry or communications, to lease real estate in rural communities for a term of 30 years, with power to control the same during the term of the lease. The Roumanian Government will not make any objection to the renewal of the lease for two additional similar terms, provided that, five years before the expiry of any such term, an agreement as to the renewal has been arrived at between lessor and lessee.

Subjects of the German Empire and the above-named companies may conduct commercial and industrial enterprises and exercise professions without being subjected to further restrictions or higher taxes and imposts than the most favored class of Roumanian subjects or companies. Whereby, however, they are to be amenable to the Roumanian laws. In no case are they to he treated less favorably than subjects or companies of any third country in any of the above-mentioned respects, or with regard to the acquisition and possession of or disposal over their real estate of any kind.

German subjects who already possessed real estate in Roumania at the time of the conclusion of peace are hereby confirmed in their rights of possession, as well personally as for their heirs in conformity with the Roumanian Civil Law.

8. German forwarding companies are to enjoy the same rights in Roumania with regard to emigration, and especially with regard to the conclusion of forwarding contracts and the appointment of representatives and agents as forwarding or emigration undertakings belonging to Roumania (in so far as such may exist), or to any other country, on the understanding that emigration via German harbors will be permitted in the same way as emigration via Roumanian or other harbors, that no severer conditions shall be imposed on emigrants proceeding to German harbors than on those who leave the country by other routes, and that, in the case of emigration via German harbors, the provisions established by German law for the protection of emigrants are regarded as adequate by Roumania.

9. The commercial, customs and shipping agreement between the two countries of 21/9 October, 1893 and the accompanying final protocol shall come again into force by the supplementary agreement of 8 October/25 September, 1904,on the understanding that they will remain in force till 31/18 December, 1930, and after this period till the expiration of a year after notice given by one or the other of the contracting parties.

The following alterations and additions to the agreement and the final protocol will, however take effect:

I.

The following new article is inserted:

Article 2a.

Joint stock companies and other commercial, industrial, and financial corporations (including insurance companies), which are situated in, and are established in accordance with the laws of the dominions of one of the contracting parties, shall also be regarded as having legal status in the dominions of the other party, and shall especially be entitled to appear before the Courts as plaintiff or defendant.

With regard to permission to conduct any business or industry, these companies shall enjoy the same rights as similar companies of any third country.

II.

Article 5 is supplemented by the following third section:

In the transition period following the war, restrictions on communications, such as prohibition of export, import and transit, may be issued, so far as is not otherwise prescribed by special agreement: they are, however, to be so administered as to be as little burdensome as possible, and to be annulled as soon as conditions permit.

III.

Article 7 receives the following third section:

So far as is not otherwise prescribed in Appendix C, the duties imposed on German, goods imported into Roumania, are to be in conformity with the general Roumanian Customs Tariff of 28 January (old style), 1916.

IV.

The first section of Article 12 is to read as follows:

Internal dues, which are now or will in future be levied by the State, municipalities, districts, or corporations, in connection with the production, preparation, forwarding , sale or use of any product, may be imposed upon the like products of the other party, under no pretext, however, at a higher rate or in a more burdensome manner than upon those of the country itself.

So far as internal dues are levied on raw materials or half-manufactured articles, the establishment of an adequate compensatory duty on the import of articles which are produced from such raw material or half-manufactured articles, shall even in such cases be permissible, where the similar domestic articles are not directly liable to such dues

V

After Article 19 the following new articles are interpolated:

1.  Article 19a.

    1. No difference shall be made between the inhabitants of the dominions of the contracting parties in the matter of passenger and luggage traffic on railways with regard to the dispatching, the transportation rates, and the state dues incident to the transportation.

    It is, however, agreed that on lines of less importance (small gauge railways, local railway and side lines), which serve transients predominantly, reductions of fare may be limited to persons residing in the adjacent communities.

    2. Goods which are to be forwarded from Germany to Roumania or to a third State through Roumania are not to be treated less favorably with regard to dispatch, freight charges, or state dues incident to the transportation, than similar domestic goods shipped in the same direction, and on the same section of the Roumanian railways under similar conditions. The same will hold good for Roumanian goods which are forwarded to Germany or to a third State through Germany.

    This principle is also reciprocally applicable to the transport, from the territory of one of the contracting parties, of goods, which are conveyed by other means of transport over the frontier into the territory of the other contracting party, and there delivered to the railways.

    Should a third State treat the products of one of the contracting parties on its transportation lines less favorably than its own similar products, the said party is entitled to treat less favorably than its own the products of the third State in question which come to its lines over the lines of the other contracting party, both in the case of import and transit. It is agreed that the less favorable treatment of the products of such a third State is to be uniform on all lines of the contracting party concerned in whose territory the import and transit takes place.

    3. The following stipulations to allow of the application of railway tariffs, reductions of freight rates, or other preferences, shall be inoperative as regards the transport of similar goods from the territory of the other contracting party:

    (a) The stipulation of the inland origin of the goods, the exaction of such marking of the goods as is not available for similar goods of the other contracting party is to be regarded as equivalent to this stipulation.

    (b) The stipulation of delivery. of goods at the point of dispatch (Aufgabe am Orte), unless it concerns the delivery of goods by ship, or the combating of some temporary special emergency, or unless the tariffs on lines of subordinate importance are generally inapplicable to through traffic, owing to the direction "Aufgabe am Orte."

    (c) The stipulation that the raw material or the partly prepared material of the article enjoying peferential treatment has been forwarded entirely or partly on inland sections.

2.  Artic1e 19b.

    The contracting parties will take care that through rates are fixed for passenger and freight; traffic in accordance with the actual requirements.

    For reciprocal traffic between Germany and Roumania through rates will be settled at least to the extent that existed on 1 August, 1914.

3.  Article 19c.

For the import and transit of goods from Germany no higher tariffs or severer con4itions will be put in force on the Roumanian railways than those to which similar goods of a third State will be subjected, in the same direction and on the same railway section.

For export and transit of goods destined to Germany on the Roumanian railways no higher tariffs nor severer conditions will be imposed than on similar goods forwarded in the same direction and on the same line to an inland destination or to a third State.

Preferences in regard to tariffs or state dues on transportation accorded by the Roumanian rail ways to traffic from or to seaports are to be granted to the railway traffic with Germany from and to the Roumanian frontier, and of the Danube transshipment traffic with Germany from and to the transfer points on the Danube.

In this connection the proportion of the preference will be established according to the percentage of the preference to the local freight rates and normal dues on transportation.

Should preferences to traffic by sea be subject to the condition of the delivery of quantities over 20 t., the condition is not to be regarded as associated with the conveyance of preferences to traffic over the frontier, or to transfer points on the Danube.

It is agreed that the Danube ports from Braila, inclusive, to the Black Sea are to be considered as seaports.

2. No higher tariffs or severer conditions will be imposed by the German railways on the import and transit of goods from Roumania, or the export to Roumania of certain goods over the German-Austrian frontiers and the German transfer points on the Danube, than those which are imposed on the import of similar goods from Austria or Hungary or the Balkan countries. or the export of similar German goods over the frontiers and points above mentioned to Austria, or Hungary, or the Balkan countries on the same line and in the same direction.

No higher tariffs or severer conditions will be imposed on the import of goods from Roumania via German seaports on the German railways than those which are imposed on similar goods from a third State on the same line and in the same direction.

3. Goods which arrive by rail at seaports or Danube harbors and are shipped thence on German boats, as well as goods which arrive in German boats at seaports or Danube harbors, and are thence forwarded by rail, will not be less favorably treated on the Roumanian railways when being carried in the same direction and on the same line, in regard to either the dispatching or the transportation rates and other charges or state tolls, than goods which arrive in the same seaports or harbors or are forwarded thence by Roumanian ships or ships of other nationality.

The stipulation that the application of railway tariffs, reductions in freight rates, or other preferences on the Roumanian railways is made dependent on the carrying of the goods by ships of a certain line, or on certain river or sea routes, is inoperative for goods which arrive in or are forwarded from seaports and Danube harbors on German ships.

Goods which arrive by rail in German Danube harbors, and are forwarded thence on ships be-longing to the Roumanian Government, or to companies receiving subventions from the Roumanian Government, as well as goods which arrive in German Danube harbors by such ships and are forwarded thence by rail, will not be treated less favorably on German railways, in regard to dispatching, freight-rates and other charges or state tolls, than goods which arrive in or are for-warded from the same Danube harbors on German ships or ships of another nationality. The stipulation in accordance with which the application of railway tariffs, reductions in freight rates or other preferences on German railways, is made dependent on the forwarding of the goods by ships of a specified Danube shipping company, or by a specified Danube traffic connection, is inoperative for those goods which arrive in or are forwarded fr6m German Danube harbors by ships belonging to the Roumanian Government or subventioned by it. In so far, however, as lower tariffs, reductions in freight rates and other preferences are granted on German railways to or from German Danube harbors, on the stipulation that the goods are shipped on the Danube to or from Austria-Hungary, as well as to or from the lower Danubian countries or from these. this stipulation remains operative also for those goods which arrive in or are forwarded from German Danube harbors in ships belonging to the Roumanian Government or subventioned by it.

4. Article 19d.

1. The International Agreement on railway freight traffic of 14 October, 1890, in the form which it had on 1 August, 1914, forms the basis of railway communication between the contracting parties.

2. The Roumanian railways will anew seek membership in the Union of German Railway Administrations.

An agreement supplementary to the agreement on reciprocal use of cars in the sphere of the Union of German Railway Administrations will be made between the railway administrations of the contracting States with regard to the conditions of the use of German railway cars.

5. Article 19e.

1. The contracting parties will insure railway traffic between both territories against interruption and delays.

2. No preference with regard to forwarding its own goods as against the goods of the other contracting party will, as a matter of principle take place.

3. In distributing cars, the requirements of inland traffic and of export to the territory of the other contracting party will receive equal consideration.

4. The contracting parties will strive to meet the requirements of through traffic by convenient and guaranteed train connections, as well as by the construction of reciprocally adjusted timetables for passenger and freight traffic. Roumania will, on request, arrange as far as possible for train connections of the same class, agreements as to which will be made between the two administrations in individual cases.

6. Article 19f.

The Roumanian Government will, within a year, subscribe to the revised international Berne Convention for the protection of works of literature and art.

In case the opportunity to do so should not occur, the Roumanian Government is prepared to enter into negotiations with the German Government for the conclusion of an agreement relating to the mutual protection of copyright in works of literature art and photography.

The agreement respecting the reciprocal protection of trademarks of 27 January 1882, remains in force.

VI.

Section 2 of the final protocol to Article 1 is to read as follows

Until otherwise agreed the above-mentioned section leaves undisturbed the legal provisions at present in force in Roumania, in virtue of which the rights to acquire real estate in rural communities and the right to retail liquor are reserved to natives of rural communities.

VII.

The definition of the final protocol to Article 7 is enlarged by the following new numbers:

3. The German Government is at liberty to withdraw, entirely or in part, the concessions contained in the tariff of Appendix B, after three months' notice to the Roumanian Government of this intention.

Should the German Government make use of this right it will withdraw all claim to the fixation of the rates of duty on the following, numbers of the general Roumanian Customs Tariff of 28 January (old style), 1906:

Numbers 16 to 58,106,107 and 109,159 to 163, 177, 178, 200, 207, 221 to 256, 261, 464 to 479, 576, 583, 697 to 701, 722 to 724, 733, 760 to 762, 825, 827, with exception of Eau de Cologne (ex. No. 827a), 828.

4. The contracting parties are agreed that duties may be paid in gold or in paper at gold rate.

VIII.

The following new provisions are included in the final protocol:

a. To Article 8.

Roumania will exact no other or higher duties than existed on 1 August, 1914, on the export of timber, either as logs or milled by the axe or saw, or of hides. Should Roumania levy export duties on goods which form the subject of the Economic Agreement these duties must only be levied until the expiry of the Commercial Treaty, in accordance with the above mentioned agreement, i.e., at the expense of the vendor.

Further, Roumania will not impose more than 5 per cent. ad valorem on eggs and walnuts.

b. To Article 12.

Roumania will only levy compensatory duties in the sense of Section 2 of Article 12, when not only the raw material or half-manufactured articles, but also the completed articles are produced in Roumania and liable to the same internal dues.

The following agreements have been arrived at with regard to the levying of internal duties in Roumania, under the presumptions contained in Article 12, Section 1:

1. Roumania will not raise the excise on natural and artificial mineral waters above 0.07 Lei per kg. As to other goods which were subjected to excise on 1 August, 1914, the height of the dutie is not restricted.

2. Roumania will levy no internal duties on goods which were not liable thereto on 1 August, 1914, higher than 10 per cent of the autonomous or agreed import duties of Roumania. The goods of sections 33-41 and 44 of the Roumanian Customs Tariff of 28 January (old style), 1906, will remain free of internal duties.

  1. To Article 19a.

1. Freight reductions conceded by the Roumanian railways before 1 July, 1916, on the basis of the Law for the Encouragement of Industry of 13 February, 1912, to certain Roumanian industrial undertakings for forwarding their productions, and still in force on 1 July, 1916, shall not be claimed during their validity for the transport of goods from Germany to or through Roumania to a third State, within five years after ratification of the treaty of peace.

2. The stipulation of the delivery of goods to the point of dispatch by wagon, by trains (on private connecting tracks), by small gauge railways or specified railway lines is to be regarded as equivalent to the stipulation "Aufgabe am Orte."

3. The military tariffs current on railways can only be taken advantage of by the home military administration.

d. To Article 19b.

1. For the settlement of the question whether there exists any necessity for the arrangement of through tariff rates for passenger and freight traffic, the judgment of the railway administration applying shall be conclusive.

2. The freight rates resulting from interrupted dispatch, are at the request of one of the railway administrations of the contracting parties, to be included in the through tariffs.

3. The State railway administrations of the contracting parties, will have to agree as soon as possible, On such principles as to the arrangement of through freight rates as will exclude any exceptional position of one or the other of the administrations.

B.--AGREEMENT AS TO REGULATION OF CERTAIN RAILWAY QUESTIONS, IN TRAFFIC BETWEEN GERMANY AND ROUMANIA.

I.

The sums due up to the outbreak of war in connection with passenger luggage and goods traffic of the railways to each other inclusive of the compensation for the reciprocal use of wagons on the basis of the agreement on the reciprocal use of wagons in the sphere of the Union of German Railways are to be acknowledged and paid with interest as far as provided for in the said agreement at the latest within six months of the ratification of the treaty of peace.

II.

The objection of limitation having occurred during the war will not be taken advantage of with regard to claims for freight refunds and damages if these claims are notified to the German or Roumanian railways within a year after the ratification of the treaty of peace.

III.

In accordance with Article 36 of the German-Roumanian political treaty supplementary to the treaty of peace, railway equipment, the property of one of the contracting parties or its subjects; which on the outbreak of war was on the territory of the other party, shall be returned uninjured, or if this is not possible, compensated for in money. This compensation must be at the present rates for manufacture in Germany. Damaged wagons can be demanded back against payment of cost of repairs on the above basis. The compensation which must be paid for the time from the withdrawal of the rolling-stock to the return of or compensation for it will be determined on the basis of the agreement relative to the reciprocal use of wagons in the sphere of the Union of German Railway Administrations.

IV.

Roumania will further in every way traffic from and to Germany especially with regard to railway and customs arrangements, and will respect the wishes of the German Government in regard to the management and the timetables on the lines concerned in export, import and transit from and to Germany. The dispatch of export goods for the territory of the other contracting party to inland junctions, seaports or frontier stations shall be facilitated on both sides by regular connections, as far as possible, with the formation of closed trains.

The German Government is prepared to assist in the reconstruction of the Roumanian railways, especially by the contribution of railway material to facilitate export to Germany, as far as other demands on the material permit.

The German Government will appoint an expert as their representative in the sphere of railway communications. He will have exclusive jurisdiction as to the use of material belonging to the German railways lent for export to Germany. The conditions for its use will be determined by the railway administrations of both sides.

Information must be freely offered to the representative with regard to the forwarding of goods from Germany to Roumania and thence onward, as well as from or through Roumania to Germany, further as to all tariff questions involved. He is also entitled to inform himself as to the employment and forwarding of the rolling-stock above referred to by making personal investigations on the Roumanian railways or employing subordinates for the purpose.

V.

In case Roumania concludes a Railway Convention on the basis of the economic treaty with Austria-Hungary supplementary to the treaty of peace between Germany, Austria-Hungary, Bulgaria, and Turkey on the one hand, and Roumania on the other hand, she will concede to Germany all rights accorded in the Convention to any one of the parties thereto, even should Germany not be a party to the Convention.

VI.

1. For the import and transit of German goods as well as for the export and transit of goods destined for Germany no higher freight rates or other dues will be charged up to 31 December, 1930, than those of the local goods tariff in force on the Roumanian railways on 1 July, 1916; in so far as cheaper freight rates or lower dues for local traffic on the Roumanian railways exist at the time, these, too, can be claimed. The freight rates or fractional rates to be applied according to the intention of this clause on the basis of the local freight tariff of the Roumanian railways of 1 July, 1916, are not to be surcharged with any public forwarding dues.

In transit through Roumania from or to Germany no higher freight rates or fractions of freight rates will be charged than those deducible from the following maximum unit rates:

 

Maximum unit rates per ton-kilometer

Dispatching dues per ton

Ordinary express goods

Bani 20

Lei 2.00

Slower express goods

12

2.00

For freight

   

(a) On consigning in any quantity

11

1.50

(b) On paying freight for at least 5,000 kg. For bill of lading and car

9

1.50

(c) On paying freight for at least 10,000 kg. For bill of lading and car

6

1.00

 

The above shipping rates will be leviable only on traffic in transit through Roumania at seaports or inland junctions.

The freight rates or fractions which result from the above maximum unit rates are not to be surcharged with any public forwarding dues.

With reference to the Petroleum Agreement (Appendix … to the treaty of peace) Roumania is prepared after the term indicated not to raise the freight rates (including any public forwarding dues) to Germany by a higher percentage than the freight rates for coal in force for local traffic on 1 July 1916, may be at any time raised.

VII.

Further agreements necessary for the purpose of regulating reciprocal railway communication are laid down in Articles 19a to e of the commercial treaty between Germany and Roumania.

C.--AGREEMENT AS TO POSTAL AND TELEGRAPHIC COMMUNICATION.

The German and Roumanian Governments have agreed as follows as to the postal and telegraphic systems:

Article 1

Roumania will:

(a) conclude on the basis of Article 21 of the International Postal Agreement with Germany a special agreement for Roumanian-German postal communications and conceded therein to Germany such reductions of dues and other alleviations as will place Germany in a no less favorable position with regard to incoming and outgoing postal traffic than any third country not immediately bordering on Roumania; up to two years, however, after the ratification of the treaty of peace Germany will not claim the special privileges which Roumania at present grants to Greece and Montenegro;

(b) agree to the introduction of the Postal Order system between Germany and Roumania by at latest one year after this branch of the service has been introduced into Roumania itself.

Article 2.

The Roumanian Government will:

(a) erect by Jan. 1, 1920, the portion falling within its territory of the third direct telegraph line from Berlin to Bucharest, planned before the war, with 3 mm. Bronze wire, and after completion of the connections operate it. For this purpose the lines erected by the German

Military Administration (as soon as these can be dispensed with, and at the latest by the time of the evacuation of the occupied territory) will be taken over by the Roumanian Government against compensation and continued to be operated. (Article XVII, Section 3, and Article XXIII of the Treaty of Peace.) The German and Roumanian Telegraphic Administrations will thereafter undertake further direct telegraphic connections between Berlin and Bucharest in concert with the intermediate administrations concerned, as soon as the requirements of telegraphic communication between Germany and Roumania demand it;

(b) instal telephonic communication between Germany and Roumania. This will either be achieved on direct lines, or by the use of telephone connections with the intermediate countries. The rates as well as the details of installation and management of the arrangements necessary for the new service will be regulated by special agreement between the two te1egraphic administrations.

Most favored privileges will be accorded by Roumania to any telephonic communications which may be installed by Germany with other Countries, protectorates, etc.;

(c) permit communication between any present or future main wireless stations on Roumanian territory with similar German stations and ocean-going ships, and also with such foreign stations as are connected with the organisations of a German administration company. The conditions for such communication shall not be less favorable than those established at any time for any other main wireless station.

The wireless plants in Roumania will also establish wireless communication with aircraft. Both sides reserve the right to regulate as far as is necessary by a special agreement the communication of Roumanian terrestrial stations with aircraft and airships as well as with each other.

Article 3.

The Roumanian Government will:

(a) construct, of the materials best adapted according to the present status of technical construction for the purpose that portion of the land telegraph line and the necessary emergency lines falling within its territory for the continuation of the cable from Constantinople to Constanza via Bucharest to Berlin and permanently keep the same in running order. This obligation remains in force till the end of 1950. The German Government reserves the right to demand its continuation for a further period of 20 years by giving notice one year before the expiry of the above term.

(b) Grant to the East European Telegraph Co. in Bucharest the right to manage the service on the telegraphic connection Constantinople-Constanza-Bucharest-Berlin for the existing line and future additional lines toll the end of 1950 or the prolonged term indicated under (a). For this purpose the Roumanian Telegraphic Administration will place at the disposal of the company at a suitable rental quarters either in or near the Telegraph Office in Bucharest. The function of this office is limited to the transmission of through telegrams on the line Berlin-Constantinople, and is not concerned with the reception or delivery of telegrams for Bucharest. The fees for this communication, so far as it passes over Roumanian lines, accrue to the Roumanian Government. The company bears the costs of installation and maintenance of their offices. Details will be arranged and agreed between the company and the Roumanian Telegraphic Administration.

Article 4

If in the interests of regular telegraphic communication between Constanza and Constantinople, which are no longer adequately subserved by the present single cable, further cables are laid on the same route, the Roumanian Government is prepared to construct and maintain in running condition the necessary land connections with emergency lines in Roumanian territory after preliminary conference with the German Telegraphic Administration. This obligation is valid up to the close of 1950, or to the expiry of the prolonged term provided in Article 3. The provisions of Article 3b are also valid in this case.

The Roumanian Government conveys to the German Government the sole rights, to land cables on the Roumanian coast (inclusive of the new territory to be added to the country) up to the end of 1950, and to operate these in connection with the, Roumanian telegraphic and telephonic system. The provisions of Article 3a are also valid in this case.

The foregoing provision does not preclude the right of the Roumanian Government to connect two points of the Roumanian coast by cable, and to operate this cable in connection with the State telegraphic system.

D.--AGREEMENT AS TO CONSTRUCTION OF DOCKYARD AT GIURGIU.

Between the Roumanian Government and the German Government the following contract is concluded:

§ 1.

The Roumanian Government leases to a company (hereinafter called the Dockyard Co. (Werft)), to be nominated by the German Government, a portion of State property situated at the winter harbor of Giurgiu of the following dimensions, the lease to date from the day of ratification of the Treaty of Peace:

The area in question is bounded on the west by a line parallel to the west front of the Administration building at a distance of 15 metres therefrom

.

The northern boundary is a line at right angles to the above, at a distance of 110 metres from the north front of the Administration building.

The eastern boundary is a line at right angles to the foregoing at a distance of 330 metres from the eastern front of the Administration building. The eastern boundary has, measured from its upper angle, a length of 240 metres and runs to the water. The Dockyard Co, may erect buildings on the property and construct an equivalent quay on the north shore of the horbor in front of the dockyard.

In addition the Roumanian Government allows the Dockyard Co. the option of a portion of land which abuts easterly on the principal property and is bounded on the east by a line parallel to the eastern boundary at a distance of 200 metres and above and below by prolongations of the west to east boundaries.

§ 2.

The lease is for a period of 40 years: at the expiry of this time the Dockyard Co. may apply for a renewal which application must be handed in to the Roumanian Government two years

before the expiry of the lease. At the close of the lease all immovable structures erected on the leased property (inclusive of all underground and railway plants) are to be transferred to the Roumanian Government without compensation. The Roumanian Government shall have an option on all other plants of the Dockyard Co. including all cranes, machines, power and light conductors, equipment of the workshops and storehouses, dock boats, etc. Should no agreement be reached as to the price to be paid therefor, the Dockyard Co. is entitled to dispose of this part of its property at its pleasure.

§ 3.

The option for the piece of property which lies to the east of the main area must be exercised at latest by 5 years after ratification of the Treaty of Peace, but may, however, be exercised partly or entirely at any time during this period. The duration of the lease for the property under option terminates with the expiry of the lease of the main area.

§ 4.

The Dockyard Co. may use the whole of the water front belonging to it, but has, however, only the right, until the completion of the construction of a canal contemplated by the Roumanian Government from the winter harbor to the Georgs Canal, to lay three ships beside each other before each part of the front, thereafter four ships. The Dockyard Co. may at any time extend the winter harbor towards the east at its own cost, after approval of the plans by the Serviciul Hydraulic, in order to secure a water front for the land under option. No rent shall be charged for the water front, but only for the ground used, measured at. + 3 m. Giurgiu-Pegel.

§ 5.

The Roumanian Government will arrange for the regulation of shipping in the harbor in such a way that a free, sufficiently wide water-way remains between the Danube and the dockyard, but it is not obliged to keep the harbor open against closure (Einsperrung) or freezing up.

§ 6.

The Roumanian Government permits the construction of a small-gauge railway between the Ramadan Harbor and the dock-yard, which from that point branches off with a full-gauge switch, and is suitably connected with the small-gauge track, so that it is possible to set the railway wagons on small-gauge bogies and carry them further on these. This small-gauge line will run partly along the side of the chaussée and will be so managed that no hindrance to the street traffic will be occasioned. The line, by means of a reversing station, which will be provided immediately east of the street on an embankment, will run with a curve over the property of the Serviciul Hydraulic, so that it will open into the dockyard in a suitable manner. The course of the line is to be sanctioned by the Roumanian Government. The Serviciul Hydraulic will have the right to use the line for conveying its own material, and be responsible for any damage done in the course of such use.

§ 8.

The duty free importation of machinery, machinery parts, raw materials and ha If - manufactured products, necessary for the construction and management of the dockyard, is conceded to the Company for a term of 5 years.

§ 9.

Share in the capital of the Dockyard Co. is assured to the Roumanian Government to the extent of at least 30 per cent. In case the capital of the Company consists partly of shares with increased voting power, and partly of preference shares, the participations on the latter shares will be twice as high as on the former. The Roumanian capital represented in the Company will have seats and votes in the directorate proportionate to its interest.

§ 10.

The Dockyard Co. will pay in yearly rent:

1.  20 Bani per square metre of surface, measured at the level of +3 m. Giurgiu~Pegel, which rate will also be valid for the land under option when leased.

2. 8,000 Lei for the water front rights.

To compensate for the right of property in certain partly destroyed buildings, which the Dockyard Co. is to take over, and which it will repair and use as part of the premises, the Company will deliver to the Roumanian Government building materials for the construction of a repairing yard, and for this purpose will furnish within 14 months after ratification of the Treaty of Peace, free at Ramadan Quay by wagon or by ship at the dock:

200,000 bricks,
130 tons cement
30 tons structural and plate steel for iron construction,
20 tons reinforcing iron for concrete,
2,000 qm. "Eternit" plates or sheet-iron for roofing (according to the choice of the company),
400 qm. glass (no glass roofs!),
50 cbm. timber,
500 cbm. broken stone,
600 cbm. sand.

In addition a building-subvention of 50,000 Lei is granted. With regard to the delivery of the above materials, the Company makes the reservation that delays attributable to unexpected transport difficulties, or difficulties in securing material, may necessitate a corresponding postponement of the time of delivery. The Serviciul Hydraulic must at once take over and store the materials as they arrive, the responsibility of the Company ceasing with their arrival.

Finally, the material at present in use in the construction of the German Dockyard, such as locomotives, railway tracks, and lorries, will be lent to the Roumanian Government free of charge for three months, to aid in the construction of their new slip. The Roumanian Government is to be responsible for any damage.

§ 11.

The Dockyard Co. undertakes, in order to meet the requirements of the Serviciul Hydraulic, to carry out, orders to repair boats, machines, and implements of the Serviciul Hydraulic, as far as possible, preferentially according to their order of urgency

§ 12.

The Dockyard Co. will arrange as soon as possible to undertake the repair of agricultural machinery and locomobiles, and when their premises are completed to instal an engineering shop in which, in addition to repairs, the manufacture of such machines may be carried out as far as other work may permit. The Company will also instal a slipway for building ships, with the necessary machinery for the purpose.

E.-FINAL PROVISION.

The foregoing agreement, which forms an essential constituent of the Treaty of Peace, is to be ratified. The ratification document shall be exchanged as soon as possible in Vienna.

The agreement comes into force, except where otherwise provided, after the exchange of the ratification documents.

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

Done in triple original in Bucharest, 7 May, 1918.


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