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Agreement between the Government of Canada and the Government of the Polish People's Republic relating to the Settlement of Financial Matters [1971] CATSer 19 (15 October 1971)

E101401 - CTS 1971 No. 39

AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE POLISH PEOPLE'S REPUBLIC RELATING TO THE SETTLEMENT OF FINANCIAL MATTERS

The Government of Canada and the Government of the Polish People's Republic, hereinafter referred to as the Government of Poland, have agreed as follows:

ARTICLE I

The Government of Poland shall pay to the Government of Canada the sum of $1,225,000 (one million two hundred and twenty-five thousand) Canadi­an dollars in full and final settlement of Canadian claims arising before the date of the coming into force of this Agreement against the Government of Poland and Polish natural and juridical persons in respect of:

(1) property, rights or other interests nationalized or otherwise taken by the application of Polish legislation or administrative decisions;

(2) debts owed by enterprises nationalized, or otherwise taken by the application of Polish legislation or administrative decisions.

ARTICLE II

For the purpose of this Agreement "Canadian claims" shall mean:

(1) claims of natural persons who were Canadian citizens on the date of the coming into force of this Agreement and who were or whose legal predecessors were Canadian citizens on the date of the coming into force of the legislation or of the other similar measures referred to in Article I or on the date on which the relevant measures were first applied to their property, rights or interests;

(2) claims of juridical persons which on the date of the coming into force of this Agreement were incorporated or constituted pursuant to the laws of Canada and who were, or whose legal predecessors were Canadian natural or juridical persons on the date of the coming into force of the legislation or of the other similar measures referred to in Article I or on the date on which the relevant measures were first applied to the property, rights or interests.

ARTICLE III

Payment of the sum set out in Article I shall be made in seven equal annual installments. The first installment is to be made by the Government of Poland within eight months from the date of coming into force of this Agreement and the remaining six equal installments at intervals of twelve months from the date of the first payment.

ARTICLE IV

(1) Payment in full of the sum set out in Article I shall discharge the Government of Poland and Polish natural and juridical persons from obliga­tions in respect of all matters for which provision for settlement is made in that Article; the Government of Canada will then consider as completely settled, all claims covered by this Agreement whether they have been brought to the attention of the Government of Poland.

(2) The Government of Canada shall not in future present to the Govern­ment of Poland on behalf of Canadian natural or juridical persons any claims for which provision for settlement is made in this Agreement, nor will it support such claims.

ARTICLE V

The distribution of the sum mentioned in Article I shall be within the exclusive competence of the Government of Canada and does not involve any responsibility of the Government of Poland.

ARTICLE VI

In order to facilitate the adjudication of particular claims, the Govern­ment of Poland shall provide without charge, at the request of the Govern­ment of Canada such information as may be available to it concerning these claims.

ARTICLE VII

(1) The Government of Canada will furnish to the Government of Poland copies of relevant decisions with respect to the validity and amounts of claims.

(2) The Government of Canada will, with respect to each claim it finds valid, furnish to the Government of Poland such original documents of title pertaining to the property nationalized or otherwise taken by Poland as were used to establish the claim, including certificates of shares or stocks of Polish juridical persons owned by the claimant, if all the property of such juridical persons has been nationalized or taken by Poland. In the event that a claim is not based on such documents, the Government of Canada will furnish to the Government of Poland suitable certificates of release signed by the claimant.

(3) All documents referred to in this Article for delivery to the Govern­ment of Poland shall be transmitted as soon as practicable after the last installment provided for in Article III has been made.

ARTICLE VIII

This agreement shall come into force on the date of signature.

IN WITNESS WHEREOF the undersigned, being duly authorized thereto by their respective Governments, have signed this Agreement.

DONE in two copies at Ottawa, this fifteenth day of October 1971, in the English, French and Polish languages, each version being equally authentic.

Mitchell Sharp

FOR THE GOVERNMENT OF CANADA

Marian Krzak

FOR THE GOVERNMENT OF THE POLISH PEOPLE'S REPUBLIC

II

The Secretary of State for External Affairs of Canada to the Vice-Minister of Finance of the Polish People's Republic

OTTAWA, October 15, 1971

Mr. Marian Krzak,
Vice-Minister of Finance
of the Polish People's Republic

Sir,

I have the honour to refer to the Agreement signed today between the Government of Canada and the Government of the People's Republic of Poland regarding the Settlement of Financial Matters.

I wish to confirm that, if the Government of Canada implements econom­ic measures which have had a major impact on the lowering of the overall level of Polish exports to Canada since the date of the payment of the previous annual installment set out under Article III of the said Agreement, the Government of the Polish People's Republic shall have the right to request a review of the modalities of payment set out in the said Agreement.

Accept, Sir, the assurances of my highest consideration.

Mitchell Sharp

III

The Vice-Minister of Finance of the Polish People's Republic to the Secretary of State for External Affairs of Canada

OTTAWA, October 15, 1971

The Honourable Mitchell Sharp,
Secretary of State for
External Affairs of Canada

Sir,

I have the honour to acknowledge receipt of your letter of today which reads as follows:

"I have the honour to refer to the Agreement signed today between the Government of Canada and the Government of the People's Republic of Poland regarding the Settlement of Financial Matters.

I wish to confirm that, if the Government of Canada implements economic measures which have had a major impact on the lowering of the overall level of Polish exports to Canada since the date of the payment of the previous annual installment set out under Article III of the said Agreement, the Government of the Polish People's Republic shall have the right to request a review of the modalities of payment set out in the said Agreement."

I have the honour to confirm that your letter and the present reply shall be regarded as placing on record the understanding of the Polish Government and the Canadian Government concerning this matter.

Please accept, Sir, the assurances of my highest consideration.

Marian Krzak

IV

The Secretary of State for External Affairs of Canada to the Vice-Minister of Finance of the Polish People's Republic

OTTAWA, October 15, 1971

Mr. Marian Krzak,
Vice-Minister of Finance,
Polish People's Republic

Sir,

I have the honour to refer to recent discussions concerning the distribu­tion of the remaining assets held by the Canadian Custodian under the title "Poland" and to confirm the intention of the Canadian Government to com­plete this distribution as soon as feasible. With this objective in mind, the following understandings were reached during these discussions:

1. Within four months of the date of the coming into force of the Agreement between the Government of Canada and the Government of the Polish People's Republic relating to the Settlement of Financial Mat­ters the Canadian Custodian will transmit through the Canadian Embassy in Warsaw to the Polish authorities the names of former owners of assets whose whereabouts are unknown but who may be assumed to be residing in Poland, and for whose assets no signification of interest has been received, with a request for assistance in tracing the whereabouts of such persons or their heirs.

2. Within four months of the date of the coming into force of the said Agreement, the Canadian Custodian will attempt to contact all applicants or potential applicants whose whereabouts are believed to be known to inform them that they have six months in which to indicate or reassert their interest in the assets concerned. If no signification of interest is received in that time by the Canadian Custodian a list of the names of former owners who may be assumed to be residing in Poland, will be transmitted by the Canadian Custodian through the Canadian Embassy in Warsaw to the Polish authorities with the request for assistance in tracing the whereabouts of such persons or their heirs,

3. At the time the Canadian Custodian transmits to the Polish authori­ties the list referred to in paragraph 2. above, he will also advise those authorities of the total recorded value of the assets under the title "Poland" released since the coming into force of the said Agreement, itemized under such headings as he may consider appropriate for exam­ple, "cash", "securities", "real property", and "miscellaneous".

4. Polish citizens seeking the release of assets held by the Canadian Custodian shall submit a completed application setting out the data specified in the form prepared by the two sides during these recent discussions. The genuineness of the applicant's signature and, in the case of heirs, the relationship to the deceased and the entitlement to a share in the estate, shall be certified by the Presidium of the appropriate Polish local authority (Rada Narodowa). Where administrators or guardians have been appointed by court order, such persons may submit applica­tions, supported by a copy of the order, on behalf of the persons con­cerned. Applications of Polish juridical persons shall be signed by mem­bers of their boards thereof authorized to act in the name of those juridical persons.

5. Applications completed in the above-mentioned manner shall be considered by the Canadian Custodian as acceptable unless he is in possession of contrary evidence.

6. The Canadian Custodian shall render decisions on acceptable applications within three months of their receipt and favourable decisions shall be immediately implemented by release to the applicants of the assets or the proceeds thereof or by restoration of ownership as may be appropriate in the particular circumstances. At the request of the appli­cant, the assets or proceeds thereof shall be transferable.

I wish to confirm that it is the policy of the Government of Canada not to confiscate or otherwise appropriate the assets or proceeds thereof of persons or states not declared to be "enemy" during periods of hostilities. In accord­ance with this policy, I will recommend that at such time as the affairs of the Canadian Custodian are wound up, legislation be introduced for the transfer of the then remaining assets under the title of "Poland" to the Government of Poland for the benefit of the former owners or their heirs.

Accept, Sir, the assurances of my highest consideration.

Mitchell Sharp

V

The Vice-Minister of Finance of the Polish People's Republic to the Secretary of State for External Affairs of Canada

OTTAWA, October 15, 1971

The Honourable Mitchell Sharp,
Secretary of State for
External Affairs of Canada

Sir,

I have the honour to acknowledge receipt of your letter of today which reads as follows:

"I have the honour to refer to recent discussions concerning the distribution of the remaining assets held by the Canadian Custodian under the title "Poland" and to confirm the intention of the Canadian Government to complete this distribution as soon as feasible. With this objective in mind, the following understandings were reached during these discussions:

1. Within four months of the date of the coming into force of the Agreement between the Government of Canada and the Government of the Polish People's Republic relating to the Settlement of Financial Matters the Canadian Custodian will transmit through the Canadian Embassy in Warsaw to the Polish authorities the names of former owners of assets whose whereabouts are unknown but who may be assumed to be residing in Poland, and for whose assets no significa­tion of interest has been received, with a request for assistance in tracing the whereabouts of such persons or their heirs.

2. Within four months of the date of the coming into force of the said Agreement, the Canadian Custodian will attempt to contact all applicants or potential applicants whose whereabouts are believed to be known to inform them that they have six months in which to indicate or reassert their interest in the assets concerned. If no signifi­cation of interest is received in that time by the Canadian Custodian a list of the names of former owners who may be assumed to be residing in Poland, will be transmitted by the Canadian Custodian through the Canadian Embassy in Warsaw to the Polish authorities with the request for assistance in tracing the whereabouts of such persons or their heirs.

3. At the time the Canadian Custodian transmits to the Polish authorities the list referred to in paragraph 2. above, he will also advise those authorities of the total recorded value of the assets under the title "Poland" released since the coming into force of the said Agreement, itemized under such headings as he may consider appro­priate for example, "cash", "securities", "real property", and "miscellaneous".

4. Polish citizens seeking the release of assets held by the Canadi­an Custodian shall submit a completed application setting out the data specified in the form prepared by the two sides during these recent discussions. The genuineness of the applicant's signature and, in the case of heirs, the relationship to the deceased and the entitlement to a share in the estate, shall be certified by the Presidium of the appropriate Polish local authority (Rada Narodowa). Where adminis­trators or guardians have been appointed by court order, such per­sons may submit applications, supported by a copy of the order, on behalf of the persons concerned. Applications of Polish juridical persons shall be signed by members of their boards thereof author­ized to act in the name of those juridical persons.

5. Applications completed in the above-mentioned manner shall be considered by the Canadian Custodian as acceptable unless he is in possession of contrary evidence.

6. The Canadian Custodian shall render decisions on acceptable applications within three months of their receipt and favourable decisions shall be immediately implemented by release to the appli­cants of the assets or the proceeds thereof or by restoration of owner­ship as may be appropriate in the particular circumstances. At the request of the applicant, the assets or proceeds thereof shall be transferable.

I wish to confirm that it is the policy of the Government of Canada not to confiscate or otherwise appropriate the assets or proceeds thereof of persons or states not declared to be "enemy" during periods of hostilities. In accordance with this policy, I will recommend that at such time as the affairs of the Canadian Custodian are wound up, legislation be introduced for the transfer of the then remaining assets under the title of "Poland" to the Government of Poland for the benefit of the former owners or their heirs."

I have the honour to confirm that your letter and the present reply shall be regarded as placing on record the understandings of the Canadian Govern­ment and the Polish Government concerning this matter.

Accept, Sir, the assurances of my highest consideration.

Marian Krzak

VI

The Secretary of State for External Affairs of Canada to the Vice-Minister of Finance of the Polish People's Republic

OTTAWA, October 15, 1971

Mr. Marian Krzak,
Vice-Minister of Finance,
People's Republic of Poland

Sir,

I have the honour to refer to discussions concerning the transfer of certain funds between Canada and Poland.

I wish to confirm the understanding reached that the Government of the Polish People's Republic will authorize the transfer in Canadian dollars at the generally accepted rate of exchange of the funds of Canadian citizens which are at present in blocked bank accounts in Poland constituting compensation for property of Canadian citizens expropriated for public purposes by Polish authorities.

The Government of Canada will accord the same treatment to Polish citizens on the basis of reciprocity.

Accept, Sir, the assurances of my highest consideration.

Mitchell Sharp

VII

The Vice-Minister of Finance of the Polish People's Republic to the Secretary of State for External Affairs of Canada

OTTAWA, October 15, 1971

The Honourable Mitchell Sharp,
Secretary of State for
External Affairs of Canada

Sir,

I have the honour to acknowledge receipt of your letter of today which reads as follows:

"I have the honour to refer to discussions concerning the transfer of certain funds between Canada and Poland.

I wish to confirm the understanding reached that the Government of the Polish People's Republic will authorize the transfer in Canadian dollars at the generally accepted rate of exchange of the funds of Canadi­an citizens which are at present in blocked bank accounts in Poland constituting compensation for property for Canadian citizens expropriat­ed for public purposes by Polish authorities.

The Government of Canada will accord the same treatment to Polish citizens on the basis of reciprocity."

I wish to confirm the understanding contained in your letter with the following reservation: that it will not apply to Canadian citizens who accord­ing to Polish law have retained their Polish citizenship.

Please accept, Sir, the assurance of my highest consideration.

Marian Krzak