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ARTICLE 16
Page 500
Within six months [one year] from the coming into force of the present Treaty Japan will, upon demand, return the property, tangible and intangible, and all rights or interests of any kind, in Japan of each Allied Power and its nationals (including juridical persons) within Japan between 7th December, 1941, and 2nd September, 1945, unless the owner has freely disposed thereof without duress or fraud. In the case of loss or damage to property of nationals (including juridical persons) of Allied Powers in Japan compensation will be made in accordance with Japanese domestic legislation in yen subject to Japanese foreign exchange regulations.
(NOTE. This Article is dependent on the nature of the legislation to be passed by Japan. In the meantime the United Kingdom maintains Articles 24 and 26 of the United Kingdom draft, and also reserves on the drafting of the present Article. The United States is preparing a draft on patents and trade- marks, and the United Kingdom on literary and artistic property and insurance deposits and reserves, for inclusion in the present Chapter.)
(NOTE. A stipulation regarding immunity from taxes, levies or other charges along the lines of paragraphs 4(c) and 6 of Article 26 of the United Kingdom draft may have to be included if satisfactory provision on this point is not included in the Japanese domestic legislation.)
ARTICLE 17
(a) Upon the request of any of the Allied Powers, the Japanese Government shall review and revise in conformity with international law any decision or order of the Japanese Prize Courts in cases involving ownership rights of nationals (includ- ing juridical persons) of that Allied Power and shall supply copies of all documents comprising the records of these cases, including the decisions taken and orders issued. In any case in which such review or revision shows that restoration is due, the provisions of Article 16 shall apply to the property concerned.
(b) The Japanese Government shall take the necessary measures to enable nationals (including juridical persons) of any of the Allied Powers at any time within one year from the coming into force of the present Treaty to submit to the appropri- ate Japanese authorities for review any judgment given by a Japanese court between 7th December, 1941, and the coming into force of the present Treaty in any pro- ceedings in which any such national was unable to make adequate presentation of his case either as plaintiff or defendant. The Japanese Government shall provide that, where the national has suffered injury by reason of any such judgment, he shall be restored in the position in which he was before the judgment was given or shall be afforded such relief as may be just and equitable in the circumstances. (NOTE. A reference to paragraph (a) should be included in paragraph 1 of Article 35 of the United Kingdom draft to provide for settlement of any dispute as to the rule of international law to be applied.)
ARTICLE 18
(a) Japan recognises that the intervention of the former state of war does not affect the obligation of the Japanese Government or of Japanese nationals (includ- ing juridical persons) to pay debts and perform other contractual obligations, including those in respect of bonds, or to consider on their merits claims for loss or damage to property, or for personal injury or death, which arose before the existence of a state of war and which may be due to or may be presented by the Government or nationals (including juridical persons) of an Allied Power.
(b) Japan affirms its liability for the pre-war external debt of the Japanese State and for debts of corporate bodies subsequently declared to be liabilities of the Japanese State and expresses its intention to enter on negotiations at an early date with its creditors with respect to the resumption of payments on those debts; agrees to facilitate negotiations in respect of private pre-war claims and obligations; and agrees to facilitate the transfer of sums as to which liability has been recognised or may be established.
(NOTE. Problem of Japanese liability for debts in respect of properties in renounced or ceded territories remains to be considered.) Page 500 of 587
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