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the Forces, their members or employees, for normal traffic purposes;

(b) loss of, or damage to, any property used by the Forces free of charge under item (iii) of sub-paragraph (g) of paragraph 1 of Article 7 of the present Convention;

(c) loss or damage arising under contracts or quasi-contractual relationships.

6. A claimant shall be deemed to have waived his claim against the Forces if he does not file it within ninety days of the time when he first knew of the loss or damage, unless there was reasonable excuse for his failure to file the claim within such period, particularly if he did not know against whom the claim should be asserted. Any claim not received by the agency of the Forces within one year of the date of the incident causing the loss or damage or, in the case of loss or damage referred to in sub-paragraph (c) of paragraph 2 of this Article, within one year from the release of the property, shall not be dealt with.

7. Claims shall be filed with the appropriate German agencies in a form to be agreed between the German authorities and the Forces of the Power concerned.

8. The German agency shall

(a) immediately forward to the appropriate agency of the Forces of the Power concerned such particulars of the claim as the latter agency may require; and

(b) investigate the claim within a reasonable time and make a reasoned recommendation thereon to the agency of the Forces. 9. The agency of the Forces shall consider whether and to what extent compensation should be paid for the loss suffered. It shall notify the claimant and the German agency of its decision. If the claimant accepts in full satisfaction of his claim the amount of the compensation awarded by the agency of the Forces, payment shall be made in accordance with procedures to be agreed between the Federal authorities and the Forces of the Power concerned.

10. If the claimant does not accept the compensation offered, or does not agree with the rejection of his claim, he may, within two months after he has been notified of the decision, bring an action upon his claim in the ordinary German courts against the Federal Republic.

11. The appropriate agencies of the Forces shall make available to the German authorities, upon request, information and evidence in their possession which would assist in the defence of such an action, insofar as they may do so under the regulations of the Power concerned.

12. The appropriate agency of the Forces may, if it so desires, participate in any such action against the Federal Republic by

(a) requiring the Federal Republic to plead certain defences or to appeal, or

(b) appearing as a third party defendant (Nebenintervenient) in accordance with the provisions of the German Code of Civil Procedure.

13. The appropriate German agency shall notify the agency of the Forces of the judgment in any such action and the grounds given

therefor. Should the judgment of the court differ from the decision of the agency of the Forces, then

(a) if the authorities of the Forces participated in the action against the Federal Republic as provided in paragraph 12 of this Article, the decision of the agency shall be modified so as to accord with the judgment; but

(b) if the authorities of the Forces did not participate in the action, the agency of the Forces shall, upon request of the German authorities, reconsider its decision taking into account the judgment of the court. If upon such reconsideration the agency intends to adhere to its original decision, it shall inform the German authorities of that intention and shall give the German authorities an opportunity to state their views.

Any compensation payable upon a final decision taken in accordance with this paragraph shall be paid under the procedures referred to in paragraph 9 of this Article.

14. Compensation awarded under a decision of an agency of the Forces shall, for the periods specified in paragraphs 1 and 2 of Article 4 of the present Convention, be chargeable to the funds for the support of the Forces of the Power concerned unless otherwise agreed between the Federal Republic and the Power concerned. An agreement between the Federal Republic and the United Kingdom of Great Britain and Northern Ireland in that regard and in relation to ancillary procedure is annexed to the present Convention as Annex A. A similar agreement between the Federal Republic and the United States of America is annexed to the present Convention as Annex B.

15. Notwithstanding the other provisions of this Article, claims in respect of damage caused to accommodation or movables which have been made available for use by the authorities of the Power concerned before the entry into force of the present Convention, and released by them after the end of the period covered by paragraph 2 of Article 4 of the present Convention shall be determined by the German authorities and shall not be charged to the funds for the support of the Forces, or to the Power concerned.

16. Claims of inhabitants of the Federal territory against persons who are members of the Forces by reason of a military service relationship or employees of the Forces who are nationals of the Powers concerned, which arise from acts or omissions outside the performance of official duties for the Forces, may be asserted, determined and satisfied in accordance with paragraphs 6, 7, 8, 9 and 14 of this Article. The normal remedies of the claimant against the person who caused the loss or damage shall remain unaffected, unless the claimant accepts payment of an award made by an agency of the Forces in final settlement of the claim. The first sentence of this paragraph shall not apply to claims for which the person causing the loss or damage is covered by a contract of liability insurance or pays compensation out of his own means.

17. If in any civil action before a German court involving any claim covered by this Article it is necessary to decide whether or not an act or omission occurred in the performance of official duties, a

certificate on such question shall be obtained from the appropriate agency of the Forces. Upon request of the court or the German authorities in a particular case, the agency of the Forces will review the certificate. Any certificate given shall be conclusive on the question involved.

ARTICLE 9

1. Each Power concerned, for its part, and the Federal Republic, for its part, waives all claims against the other for loss of, or damage to, any property in the Federal territory owned by it caused after the entry into force of the present Convention by activities, acts or omissions of agencies or persons, for whose acts or omissions the other is legally responsible, in the performance of their official duties. This waiver shall not apply to loss of, or damage to, property of the German Federal Railways or Federal Post, or to loss or damage for which those organizations are responsible.

2. In application of the principle expressed in paragraph 1 of this Article, claims for loss of, or damage to, property used by the Forces free of charge pursuant to items (i) and (ii) of sub-paragraph (g) of paragraph 1 of Article 7 of the present Convention, and claims arising from increases in the value of such property, shall be deemed to cancel each other out.

3. The Federal Republic undertakes to ensure that each Power concerned is relieved of liability for claims of any Land of the Federal Republic arising from acts or omissions of the Forces as defined in paragraph 2 of Article 8 of the present Convention. Each Power concerned undertakes to renounce in favour of the Federal Republic all corresponding claims which it may have against any Land of the Federal Republic. Each Power concerned further undertakes to renounce in favour of the Federal Republic claims in respect of improvements leading to an increase in value of the property referred to in paragraph 2 of Article 7 of the present Convention.

ARTICLE 10

1. Payments by the Federal Republic in satisfaction of any claims referred to in Article 3 of Chapter Nine of the Convention on the Settlement of Matters Arising out of the War and the Occupation 1 may be charged to the funds for the support of the Forces only to the extent agreed between the Federal Republic and the Powers concerned.

1

2. Any claims referred to in paragraph 1 of this Article which the agencies of the Power concerned have not determined before the entry into force of the present Convention shall be submitted to the appropriate agencies of the Federal Republic.

ARTICLE 11

1. Receipts arising from the following sources shall accrue to the Federal Republic and shall be duly accounted for:

(a) the disposal of any movable property which so far as can be

1 Infra, p. 587.

ascertained was purchased from Reichsmark or Deutsche Mark occupation costs or mandatory expenditure funds;

(b) payments by third parties of amounts in consideration of improvements which lead to an increase in value of their property as a result of expenditure from Reichsmark or Deutsche Mark occupation costs or mandatory expenditure funds;

(c) repayment claims against third parties arising out of overpayments from Reichsmark or Deutsche Mark occupation costs or mandatory expenditure funds.

2. The Deutsche Mark value of receipts arising from the following sources shall accrue to the Power concerned and shall be used in accordance with the provisions of Articles 5 and 6 of the present Convention on the basis of supplementary Deutsche Mark budget estimates to be agreed between the Power concerned and the Federal Republic:

(a) the disposal of any movable property purchased by expenditure from funds for the support of the Forces. Any amounts accruing pursuant to this subparagraph shall be the sale price of the property concerned if it is sold, less the costs of disposal, or if the property is not sold, a value to be fixed by impartial valuation in accordance with conditions to be agreed between the Federal Republic and the Power concerned;

(b) any receipts in Deutsche Mark or in kind arising out of the use by the Forces of accommodation, goods, materials and services provided under the present Convention or the Forces Convention, provided that any Deutsche Mark amounts received from persons or agencies not members of the Forces, as compensation for the use of accommodation in connection with services performed for the Forces and their members, shall accrue to the Federal Republic;

(c) payments by third parties of amounts in consideration of improvements which lead to an increase in value of their property as a result of expenditure from funds for the support of the Forces. However, such payments by Länder of the Federal Republic shall accrue to the Federal Republic;

(d) repayment claims against third parties arising out of overpayments from funds for the support of the Forces.

3. The Federal Republic shall with due diligence assert and prosecute such claims as fall [fail] to be made under sub-paragraphs (c) and (d) of paragraph 2 of this Article. The authorities of the Power concerned may require that they be consulted in due time before the assertion of any claim under sub-paragraph (c) of paragraph 1 or sub-paragraph (d) of paragraph 2.

ARTICLE 12

1. Payments for accommodation, goods, materials or services provided for the Forces and their members shall be subject to the provisions of this Article.

2. Subject to the effect of the tax and customs exemptions provided in the Forces Convention or any other applicable agreement, the

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prices paid in satisfying the requirements of the Forces shall conform in principle to price and wage levels prevailing from time to time in the Federal territory but the authorities of the Power concerned shall receive terms and conditions not less favourable than those afforded to comparable purchasers. When the requirements of the Forces are satisfied through procurement by the German authorities, or other expenditures chargeable to funds for the support of the Forces are made by the German authorities, the amount to be paid shall be determined in agreement with the authorities of the Power concerned. Except in the case of goods procured for consumption by persons normally resident in the Federal territory, the Power concerned shall not benefit from any subsidies granted by the Federal Republic to lessen the price of goods in the interest of the individual German consumer. The procedures for implementation of the preceding sentence shall be established by the subsidiary agreements provided for in Article 17 of the present Convention.

3. Compensation for accommodation, goods, materials or services obtained for the Forces by requisition under the Federal legislation referred to in paragraph 3 of Article 37 of the Forces Convention shall be determined by the appropriate German authorities, in consultation with the authorities of the Power concerned, in accordance with the provisions of that legislation and the principles expressed in the first sentence of paragraph 2 of this Article. Until the entry into force of such Federal legislation, the existing basis for assessment of compensation for accommodation, goods, materials and services requisitioned for the Forces shall remain in force.

4. The wage and salary rates for civilian personnel referred to in Article 44 of the Forces Convention shall be determined in accordance with paragraph 5 of that Article. The amounts chargeable to the funds for the support of the Forces shall include the employer's contribution to social insurance funds and the premiums for statutory accident insurance payable under German law.

5. The transport facilities and services afforded to the Forces and their members under the agreements mentioned in paragraph 3 of Article 41 of the Forces Convention shall be paid for at the rates established in those agreements. Before the expiry of the said agreements, other tariff agreements consistent with the principles of paragraph 2 of this Article and Article 41 of the Forces Convention. shall be concluded as provided in the latter Article.

6. The facilities and services of the German public posts and telecommunications agencies afforded to the Forces and their members under Article 42 of the Forces Convention, and any facilities made available by the Forces to the German authorities under paragraph 5 of that Article, shall be paid for at rates established in accordance with paragraph 1 of that Article.

ARTICLE 13

1. Except in special cases which may be the subject of agreement between the Powers concerned and the Federal Republic the expendi

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