CAB129-45 — Page 218

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16. Japan waives all claims of Japan and its nationals against the Allied Powers for action taken during the State of War hereby ended, and waives all claims arising from the presence, operations or actions of forces or authorities of any of the Allied Powers in Japanese territory prior to the coming into force of the present treaty.

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BRITISH DRAFT

Page 421The waiver of claims by Japan under paragraph b pf this Article includes any claims arising out of actions taken by any of the Amed and Associated Powers with respect to Japanese ships between 1st September, 1939, and the coming into force of the present treaty, as well as any claims and debts arising out of the con- ventions on prisoners of war now in force.

5. The Japanese Government also renounces all claims (including debts) against Germany and German nationals on behalf of the Japanese Government and Japanese nationals with the exception of claims arising from contracts and rights acquired before 1st September, 1939, but including intergovernmental claims and claims for loss or damage sustained during the war.

Part VI.-Property, Rights and Interests

Section I.-United Nations Property in Japan ARTICLE 26

1. In so far as Japan has not already done so, Japan shall within twelve months from the coming into force of the present treaty restore or cause to be restored all legal rights and interests in Japan of the United Nations and their nationals as they existed on 1st September, 1939, and shall within twelve months from the coming into force of the present treaty return or cause to be returned all property in Japan of the United Nations and their nationals which still exists.

2. The Japanese Government undertakes that all property, rights and interests passing under this Article shall be restored free of all encumbrances and charges of any kind to which they may have become subject as a result of the war and without the imposition of any charges by the Japanese Government in connexion with their return. The Japanese Government shall nullify all measures, including seizures, sequestration or control, taken by it against the property of the United Nations and their nationals between 1st September, 1939 and the coming into force of the present treaty and shall provide means whereby United Nations nationals shall regain possession and control of such property.

3. The Japanese Government shall invalidate transfers involving property, rights and interests of any description belonging to United Nations and their nationals, where such transfers resulted from force or duress exerted by Axis Governments or their agencies during the war.

4. (a) The Japanese Government shall be responsible for the restoration to complete good order of the property liable to be returned to the United Nations and their nationals under paragraph 1 of this Article. In cases where property cannot be returned or where, as a result of the war, a United Nations national has suffered a loss by reason of injury or damage to property in Japan, he shall within twelve months receive from the Japanese Government compensation to the extent of the sum necessary, at the date of payment, to purchase similar property or to make good the loss suffered. In no event shall United Nations nationals receive less favourable treatment with respect to compensation than that accorded to Japanese nationals.

(b) United Nations nationals who hold, directly or indirectly, ownership interest in juridical persons which are not United Nations nationals but which have suffered a loss by reason of injury or damage to property in Japan, shall receive compensation in accordance with sub-paragraph (a) above. This compensation shall be calculated on the basis of the total loss or damage suffered by the juridical person and shal bear the same proportion to such loss or damage as the beneficial interests of such nationals in the juridical person bear to the total capital thereof.

(c) Compensation shall be paid free of any levies, taxes or other charges. It shall be freely usable in Japan but shall be subject to the foreign exchange control regulations which may be in force in Japan from time to time.

(d) The Japanese Government shall grant United Nations nationals an indemnity to compensate them for the loss or damage due to special measures applied to their property during the war, and which were not applicable to Japanese property. This sub-paragraph does not apply to loss of profit.

5. All reasonable expenses incurred in Japan in establishing claims, including the assessment of loss or damage, shall be borne by the Japanese Government.

6. United Nations nationals and their property shall be exempted from any exceptional taxes, levies or imposts imposed on their capital assets in Japan by the Japanese Government or any Japanese authority between 2nd September, 1945, the coming into force of the present treat for the specific purpose of meeting Page 219 of 587