Legal proceedings are at present pending before the Mixed Arbitral Tribunals provided for in the Treaty. Other proceedings may be initiated.

Whilst the three Governments concerned are prepared to conclude the present Agreement in a spirit of conciliation with a view to terminating the discussions at present proceeding with the Hungarian Government, they declare formally that it is not to be deduced from this fact that they in any way recognise the justice of the said claims.

On the contrary, they make an express reservation as to their legal point of view, and the present Agreement cannot in any way be considered as justification for any fresh action or claim.

Moreover, the present Agreement cannot be interpreted as a surrender of the rights which Czechoslovak, Jugoslav and Roumanian nationals derive directly from the Treaty of Trianon in respect of any questions the settlement of which is not envisaged in the Agreements concluded this day.

In response to the appeal of friendly Powers not involved in these discussions,

the three Governments wished to show their readiness for conciliation and their desire for peace.

On its side, the Hungarian Government declares that from the legal point of view it maintains the position which it has previously adopted on these questions; it intends to adhere to the present Agreement in the same desire for conciliation and peace. The present Agreement cannot be interpreted as a surrender of the rights which, in the view of the Hungarian Government, Hungarian nationals derive directly from the Treaty of Trianon in respect of any questions the settlement of which is not envisaged in the Agreements concluded this day.

As from the date on which the present Agreement comes into force, the responsibility of the defendant in all legal proceedings brought prior to 20th January 1930 by Hungarian nationals before the Mixed Arbitral Tribunals, against Czechoslovakia, Jugoslavia and Roumania, in regard to the agrarian reforms, shall be solely incumbent upon a fund to be called the "Agrarian Fund".

1. The same rule shall apply to any legal proceedings which Hungarian nationals may later institute before the Mixed Arbitral Tribunals in regard to the agrarian reform, against Roumama, on account of the consequences of an act of seizure or transfer prior to 20th January 1930. All such proceedings can only. be instituted against the Agrarian Fund, Roumania being relieved of all responsibility.

2. The same rule shall apply to any legal proceedings which Hungarian nationals may later institute before the Mixed Arbitral Tribunals, in regard to the agrarian reform, against Jugoslavia, in which country the agrarian reform has not yet formed the subject of a definitive law, on account of properties which, by virtue of the laws and decrees in force, are already subject to the agrarian reform and in regard to which the owner's right of free disposal has been limited prior to 20th January 1930 by the effective application to his property of the provisions of those laws and decrees.

It is understood that any proceedings which may be instituted in respect of properties referred to in the first paragraph and paragraph 2 of the present Article, as a result of the application of the new Jugoslav law finally settling the manner in which the said properties are to be dealt with, can only be instituted against the Agrarian Fund, Jugoslavia being relieved of all responsibility.

In this connection, it has been agreed that Jugoslavia shall promulgate the definitive law before 20th July 1931, and shall take the necessary action to ensure that the new legislative provisions are applied to the properties referred to above as rapidly as possible and in any case before 31st December 1933.

3. Equally, the same rule shall apply to any legal proceedings which Hungarian nationals may later institute before the Mixed Arbitral Tribunals, in regard to the agrarian reform, against Czechoslovakia, subject to the special provisions set forth in Articles 11 to 20 of Agreement No. III.

The Fund shall have legal personality, shall be financially autonomous, and shall entirely take the place of the three States in the legal proceedings referred to in Article I.

The claims introducing legal proceedings against Czechoslovakia, Jugoslavia and Roumania, referred to in Article I, shall be treated henceforth as having been made against the Agrarian Fund.

Judgments shall be given and, if in favour of the claimants, carried into effect solely against the Fund, Czechoslovakia, Jugoslavia and Roumania being exempt from all responsibility, present or future, in relation to the said legal proceedings.

The Fund shall not be called upon to make any payment until it has received notification of the whole of the judgments.

In order to accelerate this notification, the Mixed Arbitral Tribunals shall follow a programme of work which shall be determined by them in advance.

This programme shall provide for sufficiently frequent sessions to enable all the proceedings to be terminated by final judgments as soon, as possible.

The Presidents of the Mixed Arbitral Tribunals shall endeavour to elaborate and to apply the most expeditious procedure possible. The regular time limits for the written procedure provided for in the Rules of Procedure shall be reduced by half in the proceedings referred to in Article I.

The judgments shall be transmitted as and when given to the Managing Commission of the Agrarian Fund, provided for in Agreement No. III of even date regarding the organisation and the working of the said Fund.

As soon as the Managing Commission shall have received the whole of the judgments delivered in the legal proceedings referred to in Article I, and, in any case, before 31st December 1932, it shall proceed to make a proportional distribution between the persons entitled to the benefit of the said judgments. The total of this distribution shall not exceed the assets of the Fund.

Regulations drawn up by the Managing Commission of the Fund shall determine the rules for this distribution. These Regulations may provide for payments on account to the persons entitled.

Should fresh resources come to be at the disposal of the Fund after the first distribution, the Managing Commission of the Fund shall effect a fresh distribution between the persons entitled under the judgments.

If a sufficiently large number of judgments has been delivered, and if it is to be feared that the other judgments may be delayed for fortuitous reasons, a provisional distribution may be made, provided that the Managing Commission is in a position to estimate with sufficient accuracy the sums necessary to satisfy judgments not yet delivered.

The payments allocated by virtue of these various distributions shall be a complete satisfaction of the rights of the persons entitled.

In the legal proceedings referred to in Article I, the Mixed Arbitral Tribunals shall not be competent to pronounce upon the differences on questions of principle between the several parties, as set forth in the Preamble to the present Agreement, and, in particular, shall not be competent to interpret Article 250 of the Treaty of Trianon. The Tribunals shall deliver and frame their judgments solely upon the basis of the present Agreement, and, if they find for the claimant shall award him compensation to be charged against the Fund.

The Mixed Arbitral Tribunals shall ascertain whether the claimant is a Hungarian national qualified by virtue of the Treaty of Trianon and whether his property has been expropriated in application of the agrarian legislation. If these point; are established, they shall decide on the amount of the compensation, if any, to be allotted to him.

The amount of the compensation shah be established by a summary procedure and in accordance with methods whict shall be drawn up in advance by the three Mixed Arbitral Tribunals after agreement with the Managing Commission of the Agrarian Fund.

The Managing Commission may also conclude settlements with the claimant, by agreement.

Each of the Mixed Arbitral Tribunals functioning between Czechoslovakia, Jugoslavia and Roumania, of the one part, and Hungary, of the other part, shall, fox all questions, whether agrarian or other; be completed by the addition of two members chosen by the Permanent Court of International justice from the nationals of countries which were neutral during the late war, who possess the necessary qualifications to act as arbitrators.

Czechoslovakia, Jugoslavia and Roumania, of the one part, and Hungary, of the other part, agree to recognise, without any special agreement, a right of appeal to the Permanent Court of International justice from all judgments on questions of jurisdiction or merits which may be given henceforth by the Mixed Arbitral Tribunals in all proceedings other than those referred to in Article I of the present Agreement.

The right of appeal may be exercised by written application by either of the two Governments between which the Mixed Arbitral Tribunal is constituted, within three months from the notification to its Agent of the judgment of the said Tribunal.

In order to facilitate settlements by agreement, the Mixed Arbitral Tribunals functioning between Czechoslovakia, Jugoslavia and Roumania, of the one part, and Hungary of the other part, shall not adjudicate on any point in dispute until 20th October, 1930, and shall extend until that date all the time limits of their procedure.

This extension shall not apply to time limits established for the deposit of claims introducing proceedings.

In the legal proceedings referred to in Article I, Czechoslovakia, Jugoslavia and Roumania shall have the option of either maintaining their national judge on the Mixed Arbitral Tribunal, or of having a judge appointed by the Agrarian Fund. In the latter alternative, the State in question shall meet all the expenses entailed by this substitution.

In such legal proceedings, the Agrarian Fund, as defendant, shall be represented by its own Agent; the Agent of the Governments of Czechoslovakia, Jugoslavia and Roumania may also intervene whenever he wishes for the purpose of furnishing information.

The time limits for the filing of claims fixed by the Rules of Procedure of each Mixed Arbitral Tribunal functioning between the Creditor Powers and Hungary are declared to be final for all questions and can no longer be extended.

Further, all claims out of time filed after 20th January 1930 are declared inadmissible.

As regards agrarian questions in Roumania, the period of limitation (six months)

referred to in Article XIII, shall begin to run from the date on which the "Commission d'Arrondissement" (Comisiunea de Ocol) shall have given its decision by virtue of the Agrarian Reform. Law of 30th July 1921, for Transylvania, the Banat, Crisana and Maramures, concerning the parcels of land forming the subject of the said decision.

As regards agrarian questions in Czechoslovakia, the period of limitation (six months) referred to above shall begin to run from the notification to the owner of the decision of transfer, as provided for in Articles 2, 2a, 3 and 3a, of the Czechoslovak Law No. 329 of 8th April 1920, concerning the parcels of land forming the subject of the said decision.

As regards agrarian questions in Jugoslavia, the question of limitation will be settled by the general provisions of Article XIII so long as the definitive Agrarian Law has not been promulgated. After the promulgation of the definitive Law, the Governments of Hungary and Jugoslavia will reach an agreement to determine from what act laid down in the said law the period of limitation (six months) shall begin to run. Failing agreement, the general provisions of Article XIII will be applied.

In the event of any difference as to the interpretation or application of the present Agreement and failing agreement between the Parties interested on the choice of a single arbitrator, any State. interested shall be entitled to adresse itself, by written application, to the Permanent Court of International justice, and shall not be barred by any decision of the Mixed Arbitral Tribunal under Article I of the present Agreement.

Done at Paris in a single copy this 28th day of April, 1930.

LOUCHEUR
for. Mr. BENEŠ: IBL
ROBERT PERIER
W. A. C. GOODCHILD
W. A. C. GOODCHILD
W. A. C. GOODCHILD
W. A. C. GOODCHILD
W. A. C. GOODCHILD
PHILIPPE ROY
D. CAVADIAS
KORANYI
IGINO BROCCHI
N. TITULESCU
J. MROZOWSKI
TOMAZ FERNANDES
M. SPALAIKOVITCH.

CREATION AND WORKING OF THE AGRARIAN FUND.

By an Agreement of even date with the Hungarian Government provision has been made for the constitution of a fund entitled "The Agrarian Fund instituted by The Hague Agreements of 20th January 1930", and, for short, "Agrarian Fund", or "Fund A". The object of the present Agreement is to define the conditions for the constitution and working of this Fund.

The capital of the Fund amounts to 219,500,000 gold crowns (a gold crown is equivalent to.304878 of a gramme of fine gold).

The figure of 219,500,000 gold crowns has been arrived at on the basis of the figures indicated in the Hungarian Delegation's memorandum submitted to The Hague Conference (Second Commission: Non-German Reparations) which is appended (Annex A). At that time Hungary presented total claims amounting to 310,000,000 gold crowns which were reduced to 240,000,000 gold crowns.

The basis figures adopted in the said memorandum for the average value of the cadastral jugar in each country must therefore be reduced in the proportion of 310 to 240.

Subsequently, as a result of fresh enquiries and changes in the areas specified in Articles 11 to 19 of the present Agreement which refer to the agrarian reform in Czechoslovakia, where the said reform is in process of execution, the capital of the Fund has been reduced to 219,500,000 gold crowns as a result of the reductions in the areas, under consideration, the same reduced basic figures for the value of the jugar being retained.

Over and above the payments hereinafter prescribed, to be made by Czechoslovakia, Jugoslavia and Roumania on account of local indemnities, the following annuities shall be at the disposal of the Fund:

1. As from 1st July 1930 until 1943 inclusive, the annuities paid by Hungary in respect of reparation, constituting the share of Belgium, the British Empire, France, Italy, Japan and Portugal in accordance with the Arrangement of 20th January 1930 between the Creditor. Powers.

2. During each of the 23 years from 1944 to 1966 inclusive 6,100,000 (six million one hundred thousand) gold crowns per annum transferred by the Creditor States from the sum of 13,500,000 gold crowns which Hungary has undertaken to pay during 23 years as from 1944, in respect of special claims.

3. As from 1st April 1930 and until 1st April 1966, certain annuities payalble in equal instalments on 1st October and 1st April of each year, the first instalment falling due on 1st October 1930 and the last on 1st April 1966. These annuities shall be paid by Belgium, the British Empire, France and Italy, and shall be equal to the sums actually received by the said Powers in respect of Bulgarian reparation, in accordance with the Arrangement of 20th January 1930 between the Creditor Powers.

4. Annuities paid by the British Empire, France and Italy which shall not exceed the maximum amounts specified below:

(a) 1931 and 1932 (or until 1st January 1933) 800,000 gold crowns per annum, of which 400,000 are to be paid by France and 400,000 by Italy.

(b) from 1933 to 1st January 1944 (3,600,000 g. crowns + 325,640 212,000) or 4,137,640 gold crowns, of which

827,528 are to be paid by the British Empire

1,680,000 are to be paid by France

1,630,112 are to be paid by Italy.

(c) from 1944 to 1st January 1967 (2,280,000 gold crowns 544,690 + 354,606) or 3,179,296 gold crowns, of which

579,269 are to be paid by the British Empire

1,340,000 are to be paid by France

1,260,027 are to be paid by Italy.

These annuities shall be payable in two equal instalments on 1st July and 1st January of each year, the first instalment of the annuities referred to under (a) above falling due on 1st July 1931, of those under (b) on 1st July 1933, and of those under (c) on 1st July 1944, the last instalment in the case of the latter falling due on 1st January 1967.

In the event of the utilisation of the special reserve referred to in Article 20 of the present Agreement, the resources provided for in the said Article shall also be at the disposal of the Fund in addition to the payments mentioned above.

It is understood that the three Powers (British Empire, France, Italy) shall in no case be called upon to make payments in excess of those indicated above, save in respect of the provisions of Article 20 of the present Agreement in so far as concerns the intervention by France and Italy in the constitution of the special reserve and subject to the provisions of Article 12.

The Agrarian Fund shall issue bonds for a nominal capital equal to the definitive total of the Fund, which shall be fixed with due regard to the reductions provided for in the present Agreement as well as to the increase which may result from the expropriations referred to in Articles 17 and 18 of the present Agreement.

All the bonds issued by the Fund shall be of the same type and, in particular, shall have the same guarantees. They shall be expressed in the currencies of various countries on the basis of the gold crown, if the Managing Commission so decides.

The calculations for the issue of these bonds have been made in gold crowns on the basis of an interest service of 4% as from 1933 until 1966, redemption of the securities being effected as from 1944 in such a manner that the total annuity for interest and sinking fund shall be the same for each year from 1944 to 1966.

The Fund shall be organised, managed and represented by a Commission composed of four members, one of whom shall be appointed by the Hungarian Government, and three by the Finance Committee of the League of Nations, or any other organisation selected by the three Powers, France, Great Britain and Italy.

The Managing Commission shall see that the payments provided for in the present Agreement are made regularly and shall notify any delay in the payments to the Powers signatory to the present Agreement, which, in case of need, shall consult together with a view to removing any casue of delay.

The Managing Commission is authorised to accept offers of redemption or discount relating to the whole or a portion of any annuities due to it.

Should the cash at its disposal render this possible, the Managing Commission may by way of compromise make payments in cash in return for the cancellation of the bonds issued by the Fund and may also make advances on the bonds. It shall also be entitled to redeem the bonds by purchase on the open market.

The Managing Commission shall make every effort to render possible the direct or indirect mobilisation of the bonds issued by the Fund to the largest extent and under the best conditions possible. As the issue and mobilisation of the bonds can only take place after a certain lapse of time, the Managing Commission shall, if it thinks fit, appoint a Financial Committee, which shall consider when and under what conditions mobilisation operations can take place, and shall make proposals on this point to the Managing Commission. The members of the Financial Committee shall be chosen from the nationals of countries having an important financial market, including Hungary. The Managing Commission shall not be entitled to mobilise securities if the Hungarian member of the Commission demande the adjournment of the operation.

The Managing Commission shall be entitled to request the Bank for International Settlements to act as Trustee for the Fund. Should the Bank comply with this request, the States contributing to the Fund shall give a permanent order to the said Bank to transfer periodically, as they fall due, the sums to be paid by each State under the provisions of the present Agreement, from the account of the State to the Account of the Fund.

In order to ensure the more favourable conditions for placing the securities, the Managing Commission shall in due course approach the Governments of States having an important financial market, with a view to obtaining, if possible, the necessary facilities for the securities.

It shall also endeavour to obtain all the fiscal facilities which the State in whose territory the Fund has its domicile can grant.

The domicile of the Fund shall be chosen by the Managing Commission.

The costs of legal proceedings, of the working, and, in general, all the costs of the management of the Fund, are to be met by the Fund. For this purpose provision has been made in the calculations that a sum of four million eight hundred thousand crowns should be set aside from the first payments received by the Agrarian Fund to assist it in supporting these expenses.

As regards the application of the agrarian reform in Roumania to present and future Hungarian claimants, as stated in Article 1 of Agreement No. II, Roumania is under no obligation other than to pay to the Fund her local indemnity fixed so as to cover her total liabilities on a lump sum basis at the following amounts:

a) Roumania agrees to pay each year to the Agrarian Fund as from 1931 an annuity of 500,000 gold crowns until 1st January 1944 inclusive, payable in equal instalments on 1st July and 1st January of each year arid, as from 1944 until 1st January 1967 inclusive, an annuity of 836,336 (eight hundred and thirty-six thousand three hundred and thirty-six) gold crowns, payable in the same manner;

b) The Roumanian Government recovers the right of disposing freely of the local indemnities which it had set aside in favour of the Hungarian claimants;

c) Certain Hungarian claimants having already taken over Roumanian local indemnities, the annuities determined above will consequently have to be reduced.

For this purpose, the nominal amount of the Roumanian local indemnity thus accepted in payment shall be established and shall be converted into gold crowns on the basis of monetary parity.

For the period from 1931 to 1st January 1944 inclusive, the annuity shall be reduced by four per cent (4%) of this total, and for the period from 1st July 1944 to 1st January 1967 inclusive, by six decimal sixty-nine per cent (6.69%) of this total.

The said annual payments shall be reduced under the same conditions in respect of the Roumanian local indemnities corresponding to the lands of Hungarian claimants whose claims are rejected by the Mixed Arbitral Tribunal either for want of jurisdiction or because they are out of time or for any other reason. Nevertheless this reduction shall not be made if the Tribunal finds that the claimant is of Roumanian nationality.

When Roumania makes this reduction, she shall submit to the Managing Commission proof that she has handed over the local indemnities, and in regard to claimants whose claim has been rejected by the Mixed Arbitral Tribunal, she shall communicate the decisions of the Roumanian authorities fixing the local indemnity.

It is understood that, so far as Roumania is concerned, the agreement represents a lump sum settlement, whatever may be the extent of the lands forming the subject of the legal proceedings referred to in Article I of Agreement No. II of even date.

In full discharge of her obligations to the Agrarian Fund, Jugoslavia shall pay to the said Fund each year as from 1931 until 1st January 1944 inclusive, an annuity of 1,000,000 gold crowns payable in two equal instalments on 1st July and 1st January of each year, and, i. e. as from 1944 until 1st January 1967 inclusive an annuity of 1,672,672 (one million six hundred and seventy-two thousand six hundred and seventy-two) gold crowns, payable under the same conditions.

This figure represents a lump sum settlement of the total indemnities which may be allotted by the Jugoslav law now in preparation for the expropriated lands of present and future claimants within the terms of Article I of Agreement No. II of even date.

The capital of the Agrarian Fund shall be reduced by 387 gold crowns per cadastral jugar left to the owners since the beginning of the agrarian reform, in the case of properties forming the subject of the legal proceedings referred to in Article I of Agreement No. II of even date.

The same rule shall apply to the cadastral jugars belonging to owners who are actually claimants at the date of the signature of the present Agreements, in regard to whom the Mixed Arbitral Tribunal decides that it has no jurisdiction, or whose claim it dismisses.

This reduction in capital of the Fund shall have as counterpart:

1. Up to 30,000 cadastral jugars thus left to their owners or set free, a reduction in the annuity to be paid by Jugoslavia of 15.48 gold crowns per jugar up to 1st January 1944 inclusive and of 25.89 gold crowns from 1st July 1944 to 1st January 1967 inclusive.

2. For every jugar in excess of 30,000 cadastral jugars thus left to the owners or set free, a reduction in the annuity to be paid by Jugoslavia of 6.24 crowns up to 1st January 1944 inclusive and of 10.44 crowns from 1st July 1944 to 1st January 1967 inclusive, and the transfer of a sum of 231 gold crowns from Fund A to Fund B (Jugoslav Section).

Nevertheless, the figure of 387 gold crowns may be corrected by the Managing Commission to take account of the quality of the lands left to the owners. Jugoslavia shall then be entitled either to accept the Managing Commission's valuation, in which case the above mentioned reductions shall be calculated on the basis of these prices thus modified, or to cancel the release of the lands left to the owners.

The detailed list of the lands released shall be notified by the Jugoslav Government to the Fund.

It is understood that so far as Jugoslavia is concerned, the agreement represents a lump sum settlement, whatever may be the extent of the lands forming the subject of the legal proceedings referred to in Article I of Agreement No. II of even date.

In regard to Czechoslovakia as the agrarian reform is at present in process of execution, the figures have been reexamined.

Any settlement made by agreement in Czechoslovakia with a Hungarian national in respect, to the application of the agrarian reform to his properties shall be respected on both sides.

By such settlements there have been terminated agrarian law suits brought by a certain number of Hungarian nationals, who, prior to 20th January 1930, abandoned proceedings instituted. by them before the Mixed Arbitral Tribunal relating to a total area of about 275,000 cadastral jugars (entitled first category) according to the list exchanged between the Governments concerned.

Apart from this area, the area of lands on which expropriation is in progress and which have led to legal proceedings before 20th January 1930, amounts to