16 TREATY PROVISIONS RELATING TO ARBITRATION. 



Chapter III. — Arbitration Procedure. 



Article LI. 



With a view to encouraging the development of arbitration, the 

 Contracting Powers have agreed on the following rules, which are 

 applicable to arbitration procedure, unless other rules have been 

 agreed on by the parties. 



Article LII. 



The Powers which have recourse to arbitration sign a " Com- 

 promis," in which the subject of the dispute is clearly defined, the 

 time allowed for appointing Arbitrators, the form, order, and time in 

 which the communication referred to in Article LXIII must be made, 

 and the amount of the sum which each party must deposit in ad- 

 vance to defray the expenses. 



The " Compromis " likewise defines, if there is occasion, the manner 

 of appointing Arbitrators, any special powers which may eventually 

 belong to the Tribunal, where it shall meet, the language it shall 

 use, and the languages the employment of which shall be authorized 

 before it, and. generally speaking, all the conditions on which the 

 parties are agreed. 



Article LIII. 



The Permanent Court is competent to settle the " Compromis," 

 if the parties are agreed to have recourse to it for the purpose. 



It is similarty competent, even if the request is only made by one 

 of the parties, when all attempts to reach an understanding through 

 the diplomatic channel have failed, in the case of: — 



1. A dispute covered by a general Treaty of Arbitration con- 

 cluded or renewed after the present Convention has come into force, 

 and providing for a " Compromis " in all disputes and not either 

 explicitly or implicitly excluding the settlement of the " Compromis " 

 from the competence of the Court. Recourse cannot, however, be 

 had to the Court if the other party declares that in its opinion the 

 dispute does not belong to the category of disputes which can be 

 submitted to compulsory arbitration, unless the Treaty of Arbi- 

 tration confers upon the Arbitration Tribunal the power of deciding 

 this preliminary question. 



2. A dispute arising from contract debts claimed from one Power 

 by another Power as due to its nationals, and for the settlement of 

 which the offer of arbitration has been accepted. This arrangement 

 is not applicable if acceptance is subject to the condition that the 

 " Compromis " should be settled in some other way. 



Article LIV. 



In the cases contemplated in the preceding Article, the " Com- 

 promis " shall be settled by a Commission consisting of five members 

 selected in the manner arranged for in Article XLV, paragraphs 

 3 to 6. 



The fifth member is President of the Commission ex officio. 



