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Baltic States investigation. [First interim report] (Volume pt. 1) online

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questions of an economic nature ;

(2) The settlement of questions relating to the division of the records of the
organisations of the former central power, of the archives of the administrative
and judicial bodies of the civil records, and of the registers and documents
relating to current business of such administrative or judicial bodies ;

(3) The settlement of questions relating to the payment for property in Russia
belonging to Esthonian subjects, and for property in Esthonia belonging to Rus-
sian subjects, and of other questions regarding the protection of the interests of
citizens of one Party to the Treaty in the country of the other Party ;

(4) The settlement of questions concerning property of rural or other associa-
tions which has been divided by the new frontiers.

Article 15

Diplomatic and consular relations between Esthonia and Russia shall be
established within a period to be fixed by a subsequent agreement.

Article 16

Economic relations between Esthonia and Russia shall be settled in accordance
with the provisions of the Annex to this Article.

Annex 1 to Article 16

(1) The contracting Parties agree that the conclusion of Peace shall also put
an end to the state of war between them in the financial and economic field.

52!)T.j — .54— pt. 1 .34



518 BALTIC STATES INVESTIGATION

(2) The contracting Parties agree to enter, as soon as possible after tlie ratifi-
cation of the present Peace Treaty, into negotiations for the conclusion of a
commercial Treaty, to be based upon the following principles :

(a) The "most-favoured nation" treatment shall be granted, in the terri-
tory of each Party, to the citizens, to commercial, industrial, or financial
enterprises and companies, to ships and their cargoes, to the products of
agricultural and rural industry of the other contracting Party, and, further,
to the export and import of the goods of one of the contracting Parties from
or into the territory of the other Party.

(&) Goods passing through the territory of one of tlie contracting Parties
shall not be subject to any import duty and shall not pay any transit tax.
(c) The freight charges on goods in transit shall not be higher than those
on other classes of gods consigned to the country.

ls!ote. Until the conclusion of the commercial Treaty, the commercial
relations between Esthonia and Russia shall be governed by these
principles.

(3) In the free docks at the port of Tallinn (Reval) and other Esthonian
ports, sites shall be reserved to Russia for the transshipment and warehousing of
goods consigned to or from Russia, and the dimensions of these sites shall be in
proportion to the size of the port and the volume of Russian commercial traffic;
further, the taxes imi)osed in respect of these sites shall not exceed the transit
duties imposed on Esthonian nationals.

(4) The contracting Parties shall advance no claim to the enjoyment of privi-
leges granted by either of them to a third State by virtue of a Customs or other
union.

(5) The personal property left after decease in the territory of one of the
contracting Parties by subjects of the other Party shall be handed over in its
entirety to the consular representative or other delegate of the State to which
the deceased belonged, in order that its return to Esthonia may be carried out in
conformity with the laws to which the deceased was subject.

ANNEX 2 TO ARTICLE 16

(1) The artificial drawing-off of the waters of Lakes Peipus and Pskov) to an
extent involving the lowering by more than a foot of the mean level of the waters
of these lakes, and the measures proposed for raising that level, shall only l)e
carried out in accordance with a special Convention between Esthonia and
Russia.

(2) A special Convention shall be concluded between the two contracting
Parties with reference to the fisheries of Lakes Peipus and Pskov, which are only
to be carried on by methods which will not exhaust the supply of fish in these
lakes ; and also with reference to mercantile trafiic on the lakes.

ANNEX 3 TO ARTICLE 16

(1) Esthonia agrees to grant to Russia the privilege of using the electrical
power produced by the falls of the Narova ; the conpensation to be paid to
Esthonia for this privilege shall be determined, together with the other condi-
tions, by a special Convention.

(2) Russia agrees to grant to Esthonia the privilege of a concession for rhe
construction and working of a normal-gauge railway line (single or double),
to iim as directly as possible between Moscow and some point on the Russo-
Esthonian frontier, with the right of purchase at the expiry of the concession ;
the duration of the concession, the period of purchase and all other conditions
regarding the concession to be decided by a special Commission.

(3) Russia agrees to grant to Esthonia the privilege of exploiting an area of
one million desiatins of forest in the governments of Petrograd, Pskov, Tver, Nov-
gorod, Olonetz, Vologda and Archangel ; the conditions of the concession to be
decided by a special Commission.

Article 17

The two contracting Parties mutually agree to take all steps in their power to
ensure the safety of commercial vessels in their territorial waters by engaging the
numbcn- of pilots necessary for the navigation of such vessels, by estahlishing
lights aiul buoys, and by making special arrangements to enclose the mine-fields
tmtil the sea is completely cleared of them.



BALTIC STATES INVESTIGATION 519

Both Parties agree to take part in the sweeping of the mine-fields in the Baltic
Sea. and a special Convention shall be concluded between them on this subject.
If such Convention be not concluded, the share of each Party in the clearing of
the sea shall be defined by an arbitration court.

Article 18

The rights granted to Esthonian citizens by the present Treaty and its Annexes
shall extend to institutions of "local self-goverment". towns and associations,
and to relief organisations, churches, ecclesiastical and educational institutions,
and all legal entities.

Article 19

The Russian and Esthonian texts of the present Treaty shall both be authentic.

Article 20

The present Treaty shall be ratified by the Parties. The exchange of ratifica-
tions shall take place at Moscow at the earliest possible date.

The Treaty shall come into force immediately upon ratification.

Wherever the date of ratification is mentioned in the present Treaty as the
date of its coming into force, this date shall be understood as meaning that on
which the two contracting Parties shall inform each other of the ratification.

In faith whereof the Envoys Plenipotentiary of both Parties have signed the
present Peace Treaty with their own hands and liave sealed it with their seals.

The original has been done and signed in duplicate in the city of Tartu this
second day of February of the year nineteen and twenty.

(Signed) J. Poska. (Signed) J. Soots, Major-General.

(Signed) Ant. Pup. (Signed) A. Joffee.

(Signed) M. Puuman. (Signed) I. Goukovski.

(Signed) Jxtl. Seljamaa.

Exhibit 4-B
[Translation ^]

No. 2152

TREATY ' OF COMMERCE BETWEEN THE REPUBLIC OF ESTONIA AND
THE UNION OF SOVIET SOCIALIST REPUBLICS— SIGNED AT
TALLINN, MAT, 17, 1929

French official text communicated by the Estonian Minister for Foreign Affairs.
The registration of this Treaty took place Septem7)er 19, 1929
The Republic of Estonia and the Union of Soviet Socialist Republics, being
desirous of executing and further defining the provisions of paragraph (2) of
Annex I to Article 16 of the Treaty of Peace, signed at Dorpat on February 2,
1920, and of consolidating the economic relations between their respective coun-
tries, have decided to conclude a Commercial Treaty and have appointed as their
Plenipotentiaries :

The Head of the Estonian Republic :

M. K. Pats, President of the Delegation of the Estonian Republic,
M. A. Piip, Member of the Delegation of the Estonian Republic.
M. K. Virma, Member of the Delegation of the Estonian Republic,
M. M. Hurt, Member of the Delegation of the Estonian Republic ;
The Executive Committee of the Union of Soviet Socialist Republics :

M. A. Petrovski. President of the Delegation of the Union of Soviet

Socialist Republics,
M. I. Smirnoff, ^Member of the Delegation of the Union of Soviet Socialist

Republics,
M. M. Kaufmann, Member of the Delegation of the Union of Soviet
Socialist Republics,



^ Translated by the Secretariat of tlie League of Nations, for information.
2 The exchange of ratifications tools place at Moscow, September 4. 1920. Came into
force September 19, 1929.



520 BALTIC STATES INVESTIGATION

M. B. Rosenbhim, Member of tlie Delegation of the Union of Soviet
Socialist Republics,
Who, having communicated their full powers, found in good and due form, have
agreed as follows :

Chapter 1. — Establishment



With a view to encouraging commercial relations between the two countries,
each of the Contracting Parties undertakes ro grant to nationals of the other Party
permission to enter its territory, subject to the general regulations concerning th&
admittance of foreigners.

Nationals of one of the Contracting Parties who have obtained permission to
enter the territory of the other shall l)ave the right to stay in that territory and
to leave it on a footing of equality with nationals of the most favoured nation,
subject to observance of the laws and regulations in force in the said country.

It is understood that the above provisions shall in no way affect the right of
one of the Contracting Parties to refuse permission in certain cases to nationals
of the other to enter or to stay in the country.

AKTICLE 2

Nationals of one of the Contracting Parties may, on entering or leaving the
territory of the other, in conformity with the provisions of Article 1, import or
export their property intended solely for their personal or household use, includ-
iiig the instruments, tools, utensils, etc., necessary for the exercise of their pro-
fession or trade, provided that they comply with the relevant regulations in
force in the country of import or export. They shall not be placed, in this con-
nection, in a position less favourable than that accorded to nationals of the most
favoured nation.

It is understood that any article imported under the provisions of the preceding:
paragraph may be exported without restriction and duty-free by the person by
whom it was imported, provided that the identity of the said article is proved
beyond dispute.

ARTICLE 3

Property of every kind belonging to nationals of one of the countries and
lawfully imported into or acquired in the other country shall not be subjected
in that country by the Government or by any local authority, save in the cases-
and in accordance with the procedure laid down in the national laws, to any
measure of requisition — unless equitable compensation is given — or to confisca-
tion or re-purchase in any form whatsoever.

Nationals of each of the Contracting Parties shall not be required, on the
ground of their being foreigners, to pay, on the export of their property,
charges, taxes or duties other or higher than would be imposed in like circum-
stances on nationals of the country, or on subjects of the most favoured nation,

ARTICLE 4

As regards their persons and property, nationals of each of the Contracting
Parties in the territory of the other shall enjoy the protection of the courts
and of the authorities, in conformity with international law, to the same extent
as nationals of the country or as .subjects of the most favoured nation.

They shall, in the territory of the other Party, have free access for the purpose
both as plaintiffs and defendants to the courts and other bodies competent to-
ensure legal protection, and shall in this respect enjoy all the rights and privi-
leges accorded to nationals. They shall be entitled, like the latter, to choo.se
llieir legal and other advisers from among persons allowed to exercise the
professions in question under the laws of the country.

ARTICLE 5

National of one Contracting I'arty appearing before the courts of tiie other
Party as plaintiffs or interveners shall not be required to give security or tO'
make a deposit under any head whatsoever on the ground of their being for-
eigners or not having a domicile or residence in the country, provided that they
have a domicile in the territory of one or other of the Parties.

The same rule shall apply to payments as security for costs.



BALTIC STATES INVESTIGATION 521

ARTICLE 6

"When a plaintiff or intervener has been ordered in the territory of one of the
Contracting Parties to pay the costs of an action and is exempt from any obli-
gation concerning security, deposit or previous payment, in virtue of Article 5 or
under the law of the country in which the action was brought, tlie said judg-
ment, on a request being transmitted through the diplomatic channel, shall be
made executory by the competent authority of the other Party free of charge.

The same shall apply to legal decisions which may later fix the amount of the
costs.

ARTICLE 7

The judgments in respect of costs referred to in Article G shall be declared to
be executory, without the parties being heard, in accordance with the law of the
country in which the judgments are to be executed, but this shall not prevent an
appeal being lodged subsequently by the parties against whom judgment has
been given.

The authorities competent to decide on a reque.st asking that a judgment be
made executory, shall confine themselves to determining :

(1) Whether the judgment has been drawn up in a form which fulfils
the conditions necessary for it to be valid, under the law of the country in
which it was given

(2) Whether the judgment has become final under the same law.

(3) Whether the executive provisions of the judgment are accompanied
by a translation drafted, in the absence of an agi-eement to the contrary,
in the language of the said authorities and authenticated by the diplomatic
representative or a consul of the Party making the application, or by a
sworn translator of the Party applied to.

The conditions laid down in paragraph 2, Nos. (1) and (2), shall be regarded
as being fulfilled if the competent authority of the Party making the application
furnishes a declaration to the effect that tlie judgment has acquired force of law.
The competence of the authority shall be attested by the institute empowered
thereto by the applicant State. The declaration and attestation shall be trans-
lated in accordance with paragraph 2, No. 3. Until an agreement to the contrary
has been concluded between the two Governments, applications shall always be
accompanied by the declaration referred to in the first sentence of the present
paragraph.

ARTICLE 8

As regards legal aid to the poor, nationals of one Contracting Party in the
territory of the other Party shall be assimilated to nationals of the latter Party.

ARTICLE 9

Each of the Contracting Parties undertakes, on terms of reciprocity, to grant
to consuls of the other Contracting Party all the rights and privileges which it
grants to consuls of the most favoured nation.

The establishment of consuls in places where there are not as yet consuls of
the other Contracting Party shall be governed by a special agreement between
the two Parties.

Consuls shall be career officials of the Consular service under the Ministry
of Foreign Affairs of the country wliich they represent and shall receive their
salary from the State by which they were appointed ; they shall not be allowed
to engage in trade or industry in the territory of the country in which they carry
out their duties.

Before the appointment of a consul the State appointing him shall obtain the
consent of the State in whose territory the consul is to carry out his duties.

ARTICLE 10

Nationals of one of the Contracting Parties shall not be subject in the territory
of the other Party to charges, contributions, taxes or burdens of any kind whatso-
ever other or higher than those imposed on nationals of the country or on subjects
of the most favoured nation.

ARTICLE 11

Nationals of one of the Contracting Parties in the territory of the other shall be
exempt from military service and from any compulsory public service and simi-



522 BALTIC STATES IN^^ESTIGATION

larly from any contribution, whether pecuniary or in liind, in lieu of iiersonal
service. They shall also be exempt from forced loans.

They shall not be subject, either in time of peace or in time of war, to military
charges or requisitions other, higher, or less favourable as regards conditions of
application than those imposed upon nationals of the most favoured nation. They
shall in all such cases receive fair compensation.

Nationals of each of the Contracting Parties shall be exempt at all times from
official duties, whether judicial, administrative or municipal.

ARTICLE 12

Joint stock companies and commercial companies of every kind, including
industrial, financial, insurance, transport and forwarding companies, whose
headquarters are situated in the territory of one Contracting Party and which
are legally constituted there in accordance with the laws of that Party shall also
be recognised in the territory of the other Party as having a legal existence, and
shall have the right to appear before the courts as plaintiffs or defendants.

Nevertheless, it is agreed that the question whether such a company constituted
in the territory of one of the Contracting Parties is to be allowed to pursue its
activities in the territory of the other shall always be governed by the relevant
laws and regulations in force in the last-named territory. In this respect, and
also as regards their operation, companies of one of the Contracting Parties shall
not be placed, in the territory of the other, in a position less favourable than that
applicable to companies of the most favoured nation.

Companies of one of the Contracting Parties shall not be liable to duties,
charges, taxes, contributions or burdens of any description other or higher than
those imposed upon similar national companies or companies of the most favore<l
nation.

Chapter II. — Commerce and Navigation

ARTICLE 13

Tlie two Contracting Parties shall use their best endeavours to promote the
development of commercial relations between their respective countries.

Products of the soil and industry of Estonia or of the Union of Soviet Socialist
Republics imported into the territory of the other country for consumption, ware-
housing, re-export or transit shall not be liable, in respect of import, export, re-
export or transit, to duties, charges, surcharges, taxes, contributions or obliga-
tions, whether general or local, other or more burdensome than those imposed on
products of the most favoured nation.

Neither of the Contracting Parties shall impose, in respect of the exportation
of any article to the territory of the other Party, duties or charges other or
higher than those which are or may hereafter be imposed in respect of the
exportation of like articles to any other country.

Each of the Contracting Parties undertakes not to establish and not to apply
to the trade of the other Party measures which are not applicable to the trade
of all other States.

ARTICLE 14

With a view to reserving the benefits of the above provisions for products
originating in their respective countries, the Contracting Parties may require
that products and goods imported into their territory shall be accompanied by
a certificate of origin showing, in the case of a natural product, that it originated
in the other country, and, in the case of a manufactured product, that the value
of the raw materials or of the foreign half -finished products has been increased
by not less than 33%% by reason of the work carried out in the territory of the
last-named Party.

Certificates of origin shall be issued in Estonia by the Ministry of National
Economy or such State institutes as it may authorise, or by the Chamber of
Commerce and Industry, and in the Union of Soviet Socialist llepublics by the
People's Commissariat for Foreign and Home Trade and its organs, or by the
Western Chamber of Commerce of the Union of Soviet Socialist Republics, and
by such other competent organisation in either State as may be agreed upon
between the Contracting Parties.

The form of certificates of origin shall be established by agreement between
the two Parties.

Should one of the Contracting Parties require a visa and legalisation for certifi-
cates of origin, the other Party shall be entitled to do the same. No charge
shall be made for visa or legalisation.



BALTIC STATES INVESTIGATION 523



ARTICLE 15

As regards the system applicable to vessels and their cargoes, the two Con-
tracting Parties shall accord one another most-favoured-nation-treatment.

ARTICLE 16

1. The two Contracting Parties shall grant one another freedom of transit on
all routes declared oi)en for transit under the internal regulations, subject to the
conditions laid down in the said regulations.

2. Goods of all kinds and similarly baggage conveyed in transit through the
territory of one of the Contracting Parties shall be exempt from payment of all
import, export and transit duties whetlier conveyed in through traffic or unloaded,
warehoused and reloaded in course of transit. By "warehouses" are meant
premises placed under the supervision of the Customs authorities.

3. The transport of goods, passengers and baggage between Estonia and the
'Tnion of Soviet Socialist Republics shall be effected on the basis of the Con-
vention concerning through railway traflSc concluded at Riga between Estonia,
Latvia and the Union of Soviet Socialist Republics on October 29, 1925, and of
the Agreements supplementing that Convention which have already been or may
hereafter be concluded.

4. As regards the levying by the Contracting Parties of transit charges and
railway surcharges and also the duration and methods of transport, no distinction
shall be made between nationals of the two Contracting Parties or between
juridical persons belonging to the said Parties. More particularly, the Estonian
railways shall not apply to goods consigned from the Union of Soviet Socialist
Republics to an Estonian station or to goods consigned from an Estonian station
to the Union of Soviet Socialist Republics or to goods consigned in transit through
Estonia, transit tariffs or surcharges higher than those applicable in the same
direction and for the same distance to Estonian goods of like character. The
same measures shall be applied by the railways of the Union of Soviet Socialist
Republics to goods consigned from Estonia to a station in the Union of Soviet
Socialist Republics or from a station in the Union to an Estonian station or in
transit through the Union.

The Contracting Parties shall assist one another as far as possible in the
matter of railway tariffs and more particularly as regards the establishment of
through tariffs.

6. Railway tariffs in respect of the transport of goods in transit from the
Union of Soviet Socialist Republics through Estonia, on railway lines of the
Union of Soviet Socialist Republics leading to and from Estonian ports shall
be fixed, other conditions being equal, on a basis not less favourable than that
applicable on railways of the Union of Soviet Socialist Republics leading to
ports of third Powers situated on the Baltic.

7. Transport tariffs for goods in transit from Estonia to the Union of Soviet
Socialist Republics shall be assessed on the railways of the Union of Soviet
Socialist Republics according to the transit tariff, should such a tariff be put into
force, or according to the export tariff, if, on the railways of the Union of
Soviet Socialist Republics conveying goods in transit as far as the frontier station
or corresponding port, the export tariff is applicable to goods of the Union of
Soviet Socialist Republics. The railway transit tariffs applicable to Union
goods which are being conveyed from or to the Union in transit through Estonia
shall be the lowest rates in force in Estonia.

8. It is understood that the conditions for the transport of passengers, baggage
and goods on the railways and on the waterways and roads of each of the
Contracting Parties shall be identical in every respect with the conditions
applicable to the transport of passengers, baggage and goods of the most favoured
nation.

ARTICLE 17

1. To ensure the operation of the foreign trade monopoly which, under the
laws of the Union of Soviet Socialist Republics, is held by the Union Government,



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