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15. Japan will return, upon demand, within six months from the first coming into force of this treaty, the property tangible and intangible, and all rights or interests of any kind in Japan of each Allied Power and its nationals, unless the owner has freely disposed thereof without duress or fraud. In the case of war loss or damage to property of nationals of Allied Powers in Japan compensation will be made in accordance with Japanese domestic legislation in yen subject to Japanese foreign exchange regulations.
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charges arishfg58ut of the war or of meeting the reparation payable to any of the United Nations. paid shall be refunded.
BRITISH DRAFT
costs offccupying forces or of
Page 221 587. Any sums which have been so
7. The owner of the property concerned and the Japanese Government may agree upon arrangements in lieu of the provisions of this Article.
8. (a) For the purposes of this Article the term “United Nations nationals means all persons natural and juridical which, under the laws in force in Japan during the war, have been treated or regarded as enemy or as under enemy control. (b) "Owner" means the United Nations national, who is entitled to the pro- perty in question, and includes a successor of the owner, provided that the successor is also a United Nations national. If the successor has purchased the property in its damaged state, the transferor shall retain his rights to compensation under this Article, without prejudice to obligations between the transferor and the purchaser under domestic law.
(c) "Property" means all movable or immovable property, whether tangible or intangible, including industrial, literary and artistic property, as well as all rights or interests of any kind in property. Without prejudice to the generality of the fore- going provisions, the property of the United Nations and their nationals includes all sea-going and river vessels, together with their gear and equipment, which were either registered in the territory of one of the United Nations or were entitled to fly the flag of one of the United Nations and which after 1st September, 1939, while in Japanese waters, or after they had been forcibly brought into Japanese waters, either were placed under the control of the Japanese authorities as enemy property or ceased to be at the free disposal in Japan of the United Nations or their nationals, as a result of measures of control taken by the Japanese authorities in relation to the existence of a state of war between members of the United Nations and Germany.
Section II.-Japanese Property in the Territory of Allied and Associated Powers
ARTICLE 27
1. Each of the Allied and Associated Powers shall have the right to seize, retain, liquidate or take any other action with respect to all property, rights and interests which on the coming into force of the present treaty are within its territory and belong to Japan or to Japanese nationals and to apply such property or the proceeds thereof to such purposes as it may desire.
2. The liquidation and disposal of property taken under this Article shall be carried out in accordance with the law of the Allied or Associated Power concerned. The Japanese owner shall have no rights with respect to such property except those which may be given him by that law.
3. The Japanese Government undertakes to compensate Japanese nationals whose property is taken under this Article.
4. The property covered by paragraph 1 of this Article shall be deemed to include property which has at any time since 1st September, 1939, been subject to control by reason of a state of war existing between Japan and the Allied or Asso- ciated Power having jurisdiction over the property as being property which belonged to or was held or managed on behalf of Japan or Japanese nationals at the time such control was established. For the purpose of removing doubts the property of Japanese nationals is deemed to include the property of juridical persons owned or controlled by them. The property covered by paragraph 1 shall not include:-
(a) Property of natural persons who are Japanese nationals and who during the war resided with the permission of the Government concerned within the territory of the country in which the property is located or elsewhere in United Nations territory, other than property which at any time during the war was subjected to measures not generally applicable to the property of Japanese nationals resident in the territory where the pro- perty was situated;
(b) Property rights arising since the resumption of trade and financial relations between the Allied and Associated Powers and Japan, or arising out of transactions between the Government of any Allied or Associated Power Page 221 napan since 2nd September, 1945; Page 221 of 587
(c) Literary and artistic property rights.
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AMERICAN DRAFT
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