TRADE TREATY, INCLUDING THE PETROLEUM AGREEMENT, THE ECONOMIC AGREEMENT, AND THE NAVIGATION AGREEMENT ADDITIONAL TO 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. 29-54


[German text as published in the Neue Freie Presse, at Vienna, 14 May, 1918. The text of the Petroleum Agreement, published in the Norddeutsche Allgemeine Zeitung, is identical.]

[Translation.)

FIRST PART.

THE PETROLEUM AGREEMENT.

I.

THE OIL-LANDS LEASEHOLD COMPANY.

1.  For a term of thirty years the Roumanian Government grants to the Oil-lands Leasehold Company, Limited, the exclusive right to exploit all the Roumanian Crownlands, inclusive of those let on a long lease (Embaticgründe), for the prospecting, for the extraction and manufacture of mineral oils, natural gas, mineral wax, asphalt and any other bituminous products. This right extends to all Roumanian Crownlands for which, on 1 August, 1914 no petroleum concessions had yet been granted.

Crownlands for which a concession existed on 1 August, 1914 come under the provision of the preceding paragraph at the expiration of the time of the concession, unless before the time fixed for the expiration of the concession, an agreement has been concluded between the Roumanian Government and the present holder of the concession to the end of extending the concession and provided that the company referred to in the beginning of this agreement has renounced its right of exploitation for the period over which this concession extends. In case the Company avails itself of its right of exploitation, it must refund to the Government the amount of the value of the improvements made upon the respective properties which at the expiration of the present con-cession were to have become the property of the Roumanian Government. As regards the amount of the value to be compensated, the arbitral court provided for under No. 16 decides in case of disagreement.

The right of working the said lands by the Company referred to includes the right to construct and to use the improvements, buildings and dwellings necessary for the extraction, the storage, the transportation and the transformation of the aforementioned products of the soil and their byproducts.

2.  The extraction and the manufacturing of all other usable products of the soil are not affected by this treaty; nevertheless, the extraction and the manufacturing of other products of the soil may only be carried on in such manner that the enterprizes of the Company will not be hindered.

3.  The Company is entitled to use for its needs and for the duration of the agreement the public roads and railways as well as any other public means of communication (canals, telegraphs, telephones, etc.) inclusive of the improvements belonging to the State, serving for the transportation and storing of mineral oils and their by-products. In this matter, the Company shall not be treated less favorably than any other enterprize operated in Roumania as regards indemnities, taxes and assessments of whatever nature that must be met. The Company is, furthermore, entitled to build and to use, with-out having to pay any public taxes whatever, roads, railway lines and junction tracks, pipe-lines, lines for the transmission of power, installations for converting electric energy, telegraph and telephone installations, for the exploitation, manufacture, storing and transportation of materials, raw materials and byproducts. By paying an equitable fee, the Company may also use lands belonging to the State. The rate of this fee will be deter-mined, in case of disagreement, by the arbitral court provided for under No.16. In case the construction of the improvement referred to in this Paragraph makes it necessary to use landed properties not belonging to the State, the Roumanian Government, upon the request of the Company, and within the shortest possible time will proceed to the necessary expropriations in behalf and for the account of the Company, by taking into account, in so far as possible, the interests of national defence.

4.  Upon the demand of the Company, the Roumanian State is obligated to put at the disposal of the latter the lumber necessary for the purposes of its enterprize, and from those State forests the situation of which permits of supplying it on the most favorable terms to the place where it is to be used. In case such demand is not completed with within the six weeks following the date on which it was made, then, upon an understanding with the Forest Department, the Company will be en-titled to procure the lumber of which it stands in need, either by proceeding to purchase it for the account of the State, or by procuring itself the lumber in one of the said forests best situated to that end, in which case, however, care will be exercised as regards the exigencies of a well-ordered forestry system. For the lumber supplied the Company will pay the average price quoted for the last three calendar years for lumber of the same kind and of the same quality from the same forests or from forest regions similarly situated.

    THE SHARE OF THE ROUMANIAN STATE.

5.  Within the three months reckoned from the close of each calendar year, the Roumanian State will receive a due indemnification to the amount of 8 per cent of the Roumanian market value of the crude petroleum extracted in the course of the last year. In the case of dispute regarding the rate of the market value, the question will be decided by the arbitral court provided for under No. 16. In computing the quantity subject to the indemnification, that quantity in weight of crude oil and crude oil by-products is to be deducted which is used in the extraction of the quantities taxable for furnishing heat, light and power for the individua1 enterprize of the Company. Measurement in the tank of the respective mine is conclusive as regards the determination of quantity; in cases of dispute with regard to the amount of production and consumption the commercial books of the enterprize will be decisive. Apart from the indemnification, the Roumanian State receives a share iii the profit; this share is computed on the basis of the amount which is distributed as dividend over and above the stipulated 8 per cent. The share, in the case of a rate of more than 8 up to 15 per cent amounts to 25 per cent of the entire surplus exceeding the rate of 8 per cent; if more than 15 and up to 20 per cent, then a further 5 per cent of the surplus exceeding the rate of 15 per cent; if more than 25 and up to 30 per cent, then a further 5 per cent of the surplus exceeding the rate of 20 per cent; if more than 30 and up to 40 per cent, a further 5 per cent of the surplus exceeding the rate of 30 per cent; if more than 40 per cent then 10 per cent of the. entire surplus exceeding the rate of 40 per cent. If in case of the liquidation of the Company the active capital to be distributed by the Company should exceed the amount of the capital paid in, the Roumanian State shall receive of this surplus amount the same share as if the surplus had been distributed as dividend.

6.  The Company engages itself to make in each 5 years of the first 15 years 100 borings and to keep them operating uninterruptedly. These borings are to be made until oil is struck or even to the depth of 500 meters. But the borings may be stopped sooner in so far as it appears impossible to strike mineral oil, at a depth of 500 meters in paying quantities. If according to the provisions of No. 1 of this article more than 100 borings are carried out in a period of 5 years, the exceeding number of borings will be credited to the obligatory borings of the following 5 year periods. At the expiration of the first 15 years it will be determined how much crude oil has been obtained on the average by each of the borings in each quinquennial period. The Company guarantees to the Roumanian Government for the time after the expiration of the first 15 years, payment for each year of a sum corresponding to the indemnification due for the annual production of 20 borings computed on the basis stated.

7.  The company will not be subject, on whatever grounds, to higher taxes or assessments or to more rigorous regulations than those applicable to any other petroliferous enterprize operating in Roumania. The privilege foreseen in the Roumanian law of 14 January (old style), 1912, concerning the protection of Roumanian national industries, or in other legal provisions are applicable to the Company and to it exploitation, even in case the Company does not fulfill the special conditions on which the granting of such privileges is dependent. The Company is exempt from customs duties on the importation of materials, machinery and any other installations necessary for its operation. Under the same conditions and t the same extent as any other enterprizes, the Company is to participate in the Roumania supply as concerns the material specified under No. 1 as well as in the articles manufactured therefrom.

8.  At the expiration of the treaty, the borings made in the national territories together with all the improvements permanently connected therewith will pass, free of cost, into the possession of the Roumanian State. The Company is entitled to remove all of its other remaining installations, and. as the case may be, to export them exempt from customs dues if, before the expiration of the treaty, it has not come to an understanding, regards the sale thereof, with the Roumanian Government.

9.  The Company is released from the prescriptions of the various regulations as regards the proof of capacity of boring-masters, chief boring-masters, directors of exploitation, etc., with regard to whom the German, Austrian or Hungarian qualification for their profession is also to be recognized in Roumania.

10.  The Company, as regards the nationality of its directors, the members of its agencies, its employees and workmen, is subject to no restrictions whatsoever. Nevertheless, on the basis of its own needs and offers made to that effect, it will, as far as possible, employ the Roumanian element.

11.   The rights available to and the duties resting upon the Oil-Lands Leasing Company, Limited, may within the 12 months following the general peace, be transferred to another Corporation to be designated in common by the German and the Imperial and Royal Joint Austro-Hungarian Governments.

    THE RIGHT OF VOTE.

The first stock of this Company will, in a major part, consist of common-stock shares with the right of one vote, and to a lesser degree of preferred-stock shares with fiftyfold right of vote. The share in the earnings of the preferred-stock shares will simply consist in a preferred dividend of 6 per cent which increases correspondingly in the following years if in one year the entire net earnings should not attain the necessary amount for the distribution of this preferred dividend. The remainder of the net earnings intended for distribution will be equally apportioned to the common-stock shares. The total amount of preferred shares to be issued is determined by the German Government; it may not exceed 10 per cent of the entire capital. The right to dispose of the preferred shares belongs exclusively to Germany, Austria and Hungary on the basis of an agreement to be reached between the Governments of these States. The common-stock shares will, to the amount of one-quarter of the entire amount be placed at the disposal of the Roumanian Government with the right to distribute them, at its pleasure, even to private interests.

12.  The Company may as a whole or in part, transfer to third parties the rights granted to it and the obligations resting upon it in accordance with this treaty. In the case of the complete transfer of its rights and obligations all the privileges granted to the Company accrue to its legal successor. The transfer to any other but a German, Austrian, Hungarian or Roumanian Corporation requires the approval of the Roumanian Government.

13.  The grant of rights accruing to the Company by reason or the preceding provisions of Section I takes place without prejudice to the rights accorded under IV to the Commercial Monopoly Company.

14.  The Company will, in the same way as any other domestic company established according to Roumanian law, be admitted to industrial activity. In this matter, the special provisions of the Roumanian legislation with regard to corporations established abroad, are not applicable. The Company will acquaint the Roumanian Ministry of commerce with its Roumanian chief office as well as with the names of those persons entitled to represent it, and will renew this communication each time if there shou1d be a change made in the seat of the chief office or in the person of its representatives.

15.  The Roumanian Government will prolong for a new duration of thirty years the right of exploitation granted under No.1, if before the expiration of the twenty-fifth year the Company submits a proposition to that effect. A further prolongation of thirty years takes place in case the Company has submitted a proposition to that effect before the expiration of the fifty-fifth year. The indemnification to be paid to the Roumanian Government in virtue of Article 5 will be increased for the duration of the first prolongation to 9 per cent, for the second prolongation to 10 per cent; in all other respects the provisions of Section I are likewise applicable both to the duration of the first and second prolongation.

16.  Disputes arising from this treaty are to be decided, to the exclusion of any judicial proceedings, by an arbitral court composed of three persons, acting in accordance with their best judgment. This arbitral court will be formed in such manner that each of the contracting parties designates an arbitrator. The arbitrators thus appointed choose the umpire. If within two months they are unable to agree with regard to the person of the umpire, then, with the reservation of an agreement reached in any other way by the parties, the President of the Imperial Tribunal in Leipzig shall appoint as umpire a national of a State not involved. If one of the contracting parties neglects to appoint its arbitrator within the space of one month the arbitrator of the other party alone acts as arbitrator. The umpire designates the seat of the arbitral court.

II.

1.  The Roumanian Government recognizes the legal validity and the authenticity of the treaty between the military administration in Roumania, acting for the Roumanian State within the occupied territory, on the one hand, and the Oil-lands Leasing Company, Limited, on the other hand, concluded in Bucharest on 18 February, 1918, in reference to the transfer of Roumanian State properties with a view to their exploitation. The treaty of 18 February, 1918,1 goes out of force at a date still to be made known by the German Government, within the twelve months following the conclusion of the general peace, and the territories had in view in the said treaty will then come under the treaty formulated in I.

2.  The rights and privileges granted by Nos. 3, 7, 9, 10, 12 and 14 of the preceding Section I to the company therein mentioned will be equally granted to the Oil-lands Leasing Company, Limited.

III

THE PETROLEUM INDUSTRY DEVELOPMENT COMPANY, LIMITED.

1.  The Roumanian Government recognizes the agreement made or still to be made by way of a forced liquidation, of rights and privileges of other corporations, to the Petroleum Industry Development Company, Limited. In so far as the liquidators of the compulsorily liquidated companies were unable to hand over the conventional acts concerning the rights transferred by them to the Petroleum Industry Development Company, because those acts could not be found. the rights in question will he regarded as existing of right, unless contrary proof is produced by a third party within five years reckoned from the ratification of the peace treaty.

2.  The rights and privileges granted by Nos. 3, 7. 9, 10 12 and 14 of the preceding Section I to the company therein mentioned are likewise granted to the Petroleum Industry Development Company, Limited. Article 19 of the consolidation law of 1904 is not applicable to this company.

3.  The period of validity of all concessions acquired by the Petroleum Industry Development Company, Limited, will be extended by a period of time equal to that lying between 27 Au.-gust, 1916, and the expiration of the first year after the conclusion of the general peace. Nonfulfillment of the obligatory borings during the period mentioned does not entitle the one who has granted the concession to denounce the treaty of concession. Payments provided for in the treaties of concession or of cession on account of delay in effecting the said borings are not to be made for borings not carried out during the period mentioned.

IV

THE COMMERCIAL MONOPOLY COMPANY.

1.  The Roumanian State establishes a State commercial monopoly for mineral oils and transfers the exploitation of the monopoly right to a commercial monopoly company to be established on the part of the German Government and of the Imperial and Royal Joint Austro-Hungarian Government by a financial group to be designated to the Roumanian Government, in accordance with the following principles: the company will be established as a joint stock company in Roumania with its chief seat in Bucharest. The capital stock of the company will, in a major part, consist of common-stock shares with the right of one vote, and to a lesser degree of preferred-stock shares with fiftyfold right of vote. The share in the earnings of the preferred stock shares shall simply consist in a preferred dividend of 6 per cent which increases correspondingly in the following years if in one year the entire net earnings should not attain the necessary amount for the distribution of this preferred dividend. The remainder of the net earnings in-tended for distribution will be equally a portioned to the common-stock shares. The total amount of preferred shares to be issued is determined by the German Government: it may not exceed ten cent of the entire capital. The right to dispose of the preferred shares belongs exclusively to Germany, Austria and Hungary on the basis of an agreement to be reached between the Governments of these States. The common-stock shares will, to the amount of one-quarter of the entire amount, be placed at the disposal of the Roumanian Government with the right to distribute them, at its pleasure, even to private interests. In so far as the Roumanian legislation decrees that up to a certain per cent the administrators and other agencies of the joint stock company must be of Roumanian nationality, these provisions do not apply to the Commercial Monopoly Company. In all other respects the Commercial Monopoly Company is subject to all the legal prescriptions anent joint stock companies which are actually in force in Roumania. but, in so far as these provisions are compatible with the provisions of the present treaty. Subsequent modifications of the Roumanian legislation which affect the legal relations of joint stock companies shall be applicable to the Commercial Monopoly Company only in so far as an understanding with regard to the application of these modifications to the Commercial Monopoly Company may be reached between Germany and Austria-Hungary on the one hand, and Roumania on the other hand.

2. The object of the monopoly is the exclusive right to procure crude oil. Oil that is obtained from natural gas is put on a par with crude oil. All the crude oil extracted and all oil secured from natural gas in Roumania must be left to the Commercial Monopoly Company in the reservoirs' of the oil mines or in any other place of production and must be taken over by this company in so far as the Commercial Monopoly Company does not leave with the producer the amount necessary to the needs of his enterprize If an oil mine is neither connected with a railroad nor with a pipeline of the Commercial Monopoly Company, then the company is entitled to demand that the crude oil extracted from this mine be delivered, on the basis of an indemnification which it shall determine, to the nearest railway station or to the nearest supply station of the pipe-line.

3.  The Commercial Monopoly Company will determine each half year an equitable rate upon which it will take over the crude oil and the oil secured from natural gas.

4.  The Roumanian Government is obligated, upon the request of the Commercial Monopoly Company, to put at the latter’s disposal for its needs, the establishments, installations and means of operation belonging to third parties, and necessary for the transportation, the storing, the transformation and the utilization of crude oil and its by-products, provided the company has not come to an understanding by way of a contract with the owner as regards the work to be carried out by him. As regards indemnification, it has in that case to pay to the owner an amount equal to the actual real Value of the utilized establishments, installations and means of operation, by taking into account the amounts which the Commercial Monopoly Company is to determine with a view to the amortization and payment of interest of this Value, inclusive of a profit of 8 per cent. In the case of differences of with regard to the value to be determined, such value will finally be established by experts appointed in common and each time for a period of five years by the German, Austro-Hungarian and Roumanian Governments. The construction of new refineries and the construction of other buildings to widen the scope of the enterprize are subject to the approval of the Commercial Monopoly Company.

5.  The Commercial Monopoly Company has the right, for the purpose of transmitting means of operation (water, gas, etc.) and the transportation and storing of its raw materials and by-products, to lay pipe-lines, inclusive of tanks, pumping-apparatus, etc.,as well as electric conduits for lighting purposes or transmitting power. To that end it is entitled to the gratuitous use of public roads and bridges as well as of the State railway and other State lands. The use of any other parcel of land belonging to third parties may, in case a friendly agreement is not reached with the owner, take place by way of expropriation and in such case, the proof that the enterprize is one of public utility will be regarded as duly acquired. National pipe-lines, inclusive of tanks, pumping-apparatus, etc., will, upon the demand of the Commercial Monopoly Company be transferred to it either through purchase or through leasing. Purchase-price and leasing-price will be based upon the utilization fees in force on 1 August, 1914. New pipe-lines and oil reservoirs may not be laid or constructed without the approval of the Commercial Monopoly Company, with the exception of those pipe-lines and reservoirs necessary to the producers of crude oil for the storing thereof within their own mining area.

6.  In agreement with the Roumanian Government, the Commercial Monopoly Company determines annually the amount of mineral oil products to be reserved to meet the domestic Roumanian consumption, inclusive of the needs for industrial purposes, and it furnishes these products at prices which must not exceed the average sale prices of the Commercial Monopoly Company, to the "Societatea Anonima pentru Distributia Produselor Petrolului." The Roumanian Government determines the other conditions relating to the distribution and the sale of these quantities in the interior as well as the taxes levied thereon.

THE EXPORTATION OF CRUDE OIL AND CRUDE OIL PRODUCTS.

7. The Commercial Monopoly Company has the exclusive right to export mineral oil and mineral oil products from Roumania. This exportation may neither be restricted nor prohibited. Nor may it--without prejudice to the provisions foreseen in this treaty--either be interfered with by the imposition of taxes, tolls or duties, under no matter what denomination, nor made difficult by administrative rules of whatever nature. In particular, the ordinance prescribing the use of special frontier stations for the exportation is inadmissible, in so far as the Commercial Monopoly Company has not declared its approval thereof.

8.  For each quantity of 1,000 kilograms of Crude oil or mineral oil products (excepting asphalt) the Commercial Monopoly Company pays to the Roumanian State a tax of 4 Lei for mineral oil products and 3.60 Lei for crude oil. The accounting takes place semi-annually; and the tax due is payable within a quarter of a year after the establishment of the accounts.

9.  In so far as nothing to the contrary is stipulated in the preceding, the Commercial Monopoly Company is exempt from the payment of taxes and public assessments of any kind no matter under what denomination or for whose account it may be.

10.  The importation of crude oil and mineral oil products into Roumania is forbidden. Exceptions to this prohibition maybe granted with the authorization of the Commercial Monopoly Company through the means of a license payable to the Roumanian State and the amount of which will be determined annually and in advance by the Commercial Monopoly Company.

11. The date on which the Commercial Monopoly Company goes into force will be fixed by the German Government through the means of a declaration to the Roumanian Government at least three months in advance of that date.

V.

1. The privileges provided for in Section I under Nos. 7, paragraph 1, 9 and 10, as well as in Section III under No.3 and also under No. 2, the last sentence, will be extended to all corporations and enterprizes in Roumania which are engaged in the extraction, the exploitation, the transformation, the storing and the transportation of crude oil or mineral oil products.

2. In so far as corporations and enterprizes of the nature mentioned under No.1 have lost the means of proof serving to attest their rights, by reason of the fact that the public registers, judicial acts and other documents have been destroyed or mislaid during the time of the war, the determination of the respective rights takes place in an arbitral proceeding. The arbitral court consists of three arbitrators of whom the Roumanian crude oil producers designate one and the Roumanian Government appoints the second. The third arbitrator is appointed by the Government of the State whose nationals are in possession of a preponderating financial share in the enterprize in question. The decisions rendered by this arbitral court are final.

DECLARATION.

The German Government and the joint Austro-Hungarian Government on the one hand, and the Roumanian Government on the other hand agree as regards No. IV of the preceding petroleum agreement that the Roumanian Government, immediately after the ratification of the peace treaty will enter into negotiations with the Governments of Germany and Austria-Hungary for the purpose of determining in what manner the Roumanian surplus of mineral oil and of mineral oil products may be placed at the disposal of Germany, of Austria and of Hungary so that the vital interests of Roumania with regard to the domestic needs of the country and of her industries may not be jeopardized. In consequence, the provisions of No. IV will go into force only if by 1 December, 1918, another agreement should not have been reached between the Governments of Germany, of Austria-Hungary and of Roumania.

SECOND PART.

ECONOMIC AGREEMENT.

THE SUPPLYING OF GRAINS, CATTLE, MEATS AND RAW MATERIALS.

Article 1. Roumania sells to Germany, to Austria and to Hungary the surplus of the country in grains of all kinds, inclusive of oleaginous seeds, fodder, podded grains, fowls, cattle and meat, textile plants and wool of the harvests of the years 1918 and 1919. Grains that may be made into bread may also be supplied up to 6 per cent in the form of milled products. The prices for grains and fodder will be found in the annex. The prices for the other articles as well as the details regarding the supplying thereof will be fixed by a Commission of representatives of Germany, Austria, Hungary and Roumania on the basis of prices established for grains and fodder by taking into account the price quotations existing in the year 1917. Immediately after the ratification of the peace, the Commission will meet in Bucharest.

Article 2. For the seven years following upon the year 1919 Roumania obligates herself to furnish to Germany, to Austria and to Hungary the surplus of the country in grains of all kinds. inclusive of oleaginous seeds, fodder, podded grains, fowl, cattle and meat, textile plants and wool, in case Germany, Austria and Hungary make such demand. The Governments of the German Empire and Austria, including Hungary must declare, as soon as they are able to do so, and, namely with regard to grains of all sorts, milled products, fodder, textile plants and wool, at the latest by 1 April of each year and for the first time before, 1 April, 1920; as regards maize, at the latest by 15 June, and for the first time before 15 June, 1920; as regards the other articles semi-annually, namely by the beginning of July and by the beginning of January, and for the first time before 1 July, 1920, if and how much they want to take over the surplus in virtue of this obligation. The demand may bear upon either the totality of the surplus or upon a definite quantity, to be indicated, of the products mentioned. Of all grains that can be made into bread, up to 6 per cent of the exportations may be supplied in milled products. In case neither Germany nor Austria nor Hungary make use for one year of the right of preemption, the obligation of Roumania to furnish supplies lapses likewise for the following years.

Article 3. For the other agricultural products not named under Article 1, such as fruit, wine, specia1 agreements are reserved upon the condition that Roumania declares herself ready to furnish the surplus of the year 1918 to Germany, Austria and Hungary.

THE FIXATION OF PRICES

Article 4. The prices for the products regarding which Germany, Austria and Hungary have the right of purchase according to Article 2 will be fixed annually by a Commission. The Commission consists of a representative each from Germany, Austria and Hungary in so far as each of these countries participates in the purchase, and an equal number of representatives of Roumania. If the chairman of the Commission is not unanimously chosen, then a request will be addressed to the President of the Swiss Federal Court for the designation of the chairman. In case of a tie vote, the vote of the chairman will decide. The prices will be fixed either on the basis of the current market prices in the countries of analogous production, that is to say, in Germany, Austria, Hungary, Bulgaria, Ukrainia and the remaining European parts of the former Russian Empire, or, as soon as possible, the commercial prices for transoceanic articles of the same nature and quality in Dutch, English or German seaports by deducting therefrom the freight and insurance between these maritime ports and the ports of the Black Sea.

Article 5. The tolls and taxes of any kind levied by the Roumanian State are included in the price and borne by the vendor.

Article 6. In order to insure the execution of the treaty Roumania will issue prohibitions of exportation as concerns the products which she has to furnish to Germany, Austria, or Hungary. In case Germany, Austria or Hungary respectively call for only a part of the surplus, the exportation to other countries will remain prohibited in so far as the quantity of the surplus called for by Germany, Austria, and Hungary has not been supplied or its delivery has not been insured.

Article 7. The determination of the surplus is made by the Roumanian Government in cooperation with the representatives of the German Empire and of Austria-Hungary, in so far as no other provisions are agreed upon after the peace treaty with regard to the occupied territory. The relation between the average exportation for the years 1908 to 1913 and the total production will serve as a basis for the determination by taking an equitable account of the changes in the Roumanian field of economics.

Article 8. The manner and method of collecting, taking possession of and payment will be regulated by an exportation office to be constructed by Roumania in agreement with an office to be established by Germany, Austria and Hungary whose representatives must at all times be kept in-formed of all operations of the exportation office. In so far as with regard to the occupied territory other provisions or agreements are reached after the peace treaty, they are authoritative. The office to be constructed by Germany, Austria and Hungary will be exempt from special taxes and dues.

Article 9. Germany and Austria-Hungary will endeavor to promote in so far as possible, the exportation of all articles, manufactured or semimanufactured products, raw materials, etc., especially those articles necessary for the promotion of agricultural production. In order to do justice to the needs of the country, they are ready, immediately after the ratification of the peace treaty, to enter into negotiations anent the exportation of such articles to Roumania.

ACCOUNTING OF THE PURCHASE VALUE.

Article 10. Germany and Roumania as well as Austria and Roumania will mutually place at each others disposal the necessary means of payment to meet the obligations resulting from this treaty by opening a credit account in the currency of the other country. The details of this settlement are reserved for a subsequent agreement.

Article 11. Roumania obligates herself to promote in every direction, the traffic in merchandise through her means of transportation and her tariffs. The German Empire and Austria-Hungary will in like manner promote and facilitate traffic in merchandise with Roumania.

Article 12. All disputes arising from this treaty are to be decided by an arbitral court composed of three members. This arbitral court will be so formed that Germany, Austria and Hungary will together appoint one arbitrator. The arbitrators thus appointed choose the umpire. If within two months after one party has made the request of the other party the arbitrators are unable to agree upon the person of the umpire, each party may then request the President of the Swiss Federation to designate the umpire. The seat of this arbitral court shall be in Bucharest.

THE PRICES OF GRAINS AND PODDED GRAINS

Lei per 100 ki1ograms.

Wheat and Rye    38
Barley 29
Oats   29
Maize 29
Millet 31
Beans 47
Peas   42
Colza (cole-grain, mustard seed)    65
Flax-seed    75
Sun-flower seed    55

The prices are to be understood to be for good, sound articles of average quality, delivered, unpacked, to the station, f.o.b., or on board tow boat or steamer, in case the merchandise is directly taken to a port.

THIRD PART

NAVIGATION AGREEMENT.

Article 1. In the practice of navigation on the Danube, the German, the Austrian and the Hungarian ships, the German, the Austrian and the Hungarian ship owners and their representatives will be treated on a footing of absolute equality with the Roumanian ships, ship owners and their representatives or those of another State, and they will enjoy all the privileges that are granted to the latter as regards the navigation and the utilization of the establishments and installations in the service of public navigation. The cargoes of German, of Austrian and Hungarian ships as well as German, Austrian and Hungarian merchandise transported on ships of foreign States, shall as regards all dues and public taxes as well as regards the dispatching and handling in Roumanian ports, mooring places and transshipment places be treated in this respect absolutely on a par with Roumanian merchandise and merchandise of the other most favored States. The provisions of §§ 1 and 2 will be applied in the same manner within the German, Austrian and Hungarian stretch of the Danube, to Roumanian ships, to Roumanian ship owners and to their representatives, as well as to Roumanian cargoes and goods.

Article 2. A. The Governments of the contracting parties will as hitherto, see to it in future that along the shore places of their territories the necessary ports of traffic and for wintering embarcation and debarcation places as well as storing places for goods will be available for public use. B. The German, the Austrian and the Hungarian Governments will, within their territories, put no hindrances in the way of the leasing of river stretches by Roumanian navigation enterprizes. C. On the other hand, upon the shore lands within its territory, the Roumanian Government, by lease extending over a period of thirty years, places at the disposal of German, Austrian and Hungarian internal navigation enterprizes with a regular passenger and commercial traffic, such stretches of territory along the shore as can be used for the installation of warehouses, together with the necessary offices,.under the reservation of the observance of existing building regulations, places for anchorage and storing, for loading and unloading and for transfer, repair-shops, coal dumps as well as the necessary tracks for these operations, according to the needs of the respective internal navigation enterprizes, and, in so far as the public traffic needs may allow. D. It is agreed that immediately after the ratification of the peace treaty, the Roumanian Government will proceed, on the spot, with the settlement of these matters by inviting commissioners of the German, of the Austrian and of the Hungarian Government to look after the interests of their navigation companies. E. For the German, for the Austrian and for the Hungarian high-seas navigation companies permanent anchorage, in so far as possible, shall be reserved for their regular lines within the Roumanian ports doing maritime service together with the necessary warehouses located in proximity of these places of anchorage. F. Germany and Roumania agree that for the period during which Roumania will sell to Germany, to Austria and to Hungary the surplus of her grains, Germany will use the grain and coal elevators which Germany has erected within the Danube ports of Calafat, Corabia, Turnu-Magurele, Giurgiu and Oltenitza, on the condition that such installations will not interfere with the general traffic in the aforementioned harbors. Accordingly, and immediately after the ratification of the peace treaty, a German-Roumanian Commission will examine these installations and determine the conditions under which they shall be used and eventually changed, taking into account the present and future needs of these harbors. After the expiration of the purchase-period for the surplus of grains to Germany, Austria and Hungary, an agreement will be reached concerning the transfer to the Roumanian State of the installations in question and taking into account payments that may already have been made by the Roumanian State for these installations in conformity with the peace treaty. G. All other installations erected during the war, within the Roumanian Danube harbors, by Germany and by Austria-Hungary with a View to the improvement of the port traffic, inclusive of, railway tracks, will be transferred to Roumania, in so far as no special provision exists in the peace treaty or its annexes, by refunding the expenses and taking into account payments that may already have been made by the Roumanian State on the basis of the peace treaty.

FOURTH PART

FINAL PROVISION.

The present special agreement which forms an essential part of the peace treaty, will be ratified. Ratifications shall, as soon as possible, be exchanged at Vienna, In so far as nothing is stipulated to the contrary, it goes into force after the exchange of the ratifications. In witness thereof the Plenipotentiaries have signed this special agreement and affixed their seals to it.

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

Burian, m.p.
R. v. Kühlmann, m. p.
v. Koerner, m. p.
Kriege, m. p.
Hell, m. p.
Bene, m.p.
Marghiloman, m.p.
C.C. Arion, m.p.
Papiniu, m.p.
M.Burghele, m.p.


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