Article 1

The application in Turkey of each of the provisions of this Chapter to nationals and corporations of the other Contracting Powers is expressly subject to complete reciprocity being accorded to Turkish nationals and corporations in the territories of the said Powers.

Should one of these Powers refuse, in consequence of a provision in its law or for another reason, to accord reciprocity in respect of any such provision, its nationals and corporations will not be entitled to benefit by such provision in Turkey.

For the purposes of this Article each of the Domimons, colonies and countries under the protection or authority of the Contracting Powers will be considered as a separate contracting country.

SECTION I

Entry and Residence

Article 2

In Turkey the nationals of the other Contracting Powers will be received and treated, both as regards their persons and property, in accordance with ordinary international law. They will enjoy in Turkey the complete and constant protection of the local law and authorities for their persons, their property, rights and interests. Without prejudice to the provisions respecting immigration, they will have complete freedom to enter and establish themselves in Turkey, and may accordingly come, go and reside there, subject to compliance with the laws and regulations in force.

Article 3

In Turkey the nationals of the other Contracting Powers will have the right to acquire, to possess and to dispose of all kinds of property both movable and immovable, subject to compliance with the local laws and regulations; they will in particular be able to dispose thereof by sale, exchange, gift, testamentary disposition, or in any other way, and to take possession by inheritance in accordance with the law, or under dispositions inter-vivos or by will.

Article 4

The admission in Turkey of nationals of the other Contracting Powers to the defferent forms of commerce, professions and industry, and reciprocally the admission, in the territories of the said Powers, of Turkish nationals to the different forms of commerce, professions and industry, will form the subject of separate conventions to be concluded between Turkey and the said Powers within twelve months from the coming into force of the present Convention.

It is understood that, pending the conclusion of the said Conventions, the status quo as on the 1st January, 1923, will be maintained, and that if any such Convention has not been concluded at the end of the said period of twelve months each of the Contracting Powers concerned will recover its freedom of action, subject to the rights acquired by individuals before the 1st January, 1923, being respected.

Article 5

In Turkey, commercial, industrial and financial corporations, including transport and insurance corporations, which are regularly incorporated on the territory of any one of the other Contracting Powers, shall be recognised.

In all matters relating to their constitution, their legal capacity and their right to sue and be sued, they will be treated in accordance with their national law.

They will have the right to establish themselves in Turkish territory and to engage in all forms of commerce and industry in engage, and which are not forbidden in Turkey to Turkish corporations. They will have the right freely to conduct their affairs in Turkey, subject to compliance with the prescriptions relating to public order, and will enjoy in this respect the same rights as any similar Turkish corporation.

They will have the right to acquire, to possess and to dispose of all kinds of movable property, subject to compliance with the local laws and regulations. They will have a similar right as regards immovable property which is necessary for the operations of the corporation, provided, in this case, that the acquisition of such property does not constitute the object of the corporation's existence.

Article 6

In Turkey the nationals of the other Contracting Powers will not be subject to the laws relating to military service. They will be exempt from any such service and from any obligation or payment which replaces such service.

Their property may not be expropriated or the use of it denied to them even temporarily, except for reasons of public interest recognised by law as such, and in return for fair compensation to be paid in advance. No expropriation may take place without public notice being previously given.

Article 7

Turkey reserves the right to expel, in individual cases, nationals of the other Contracting Powers, either under the order of Court or in accordance with the laws and regulations relating to public morality, public health or pauperism, or for reasons affecting the internal or external safety of the State. The other Contracting Powers agree to receive persons thus expelled, and their families, at any time.

The expulsion shall be carried out in conditions complying with the requirements of health and humanity.

SECTION II

Fiscal Clauses

Article 8

Nationals of the Contracting Powers, other than Turkey, shall not be subjected to any charge, tax or impost of any kind or under any description whatsoever, other or higher than those which may be imposed on Turkish nationals, in respect of their stay or residence in Turkish territory, or in respect of the exercise of any form of commerce, profession, industry, enterprise or activity of whatever kind in Turkey which is open to them in accordance with the provisions of Article 4.

The nationals of the said Powers who are established abroad and who, while passing through Turkish territory undertake any business, shall not be subjected to any charge, tax or impost of any kind or under any description whatsoever other or higher than those to which Turkish nationals or foreigners established in Turkey are subjected in respect of an activity of the same kind and importance, in accordance with the fiscal provisions in force in the country.

The property, rights and interests in Turkish territory of the nationals of the said Powers shall not be subjected to any impost, tax or charge, direct or indirect, other or higher than those which may be imposed on the property, rights and interests of Turkish nationals, whether as regards the acquisition, possession or enjoyment of the said property, or as regards its transfer by grant, exchange or succession.

Article 9

Commercial, industrial or financial corporations, including transport and insurance corporations which are incorporated in accordance with the law of one of the other contracting countries, and which, in accordance with the provisions of Article 5, establish themselves in Turkey or carry on their affairs there, shall not be subjected to any impost, tax or charge, of any kind or under any description whatsoever, to which corporations of the same kind incorporated under Turkish law are not subjected.

The same provisions apply to associated companies, branches, agencies and other representatives of firms or companies of the said countries which, in accordance with the provisions of Article 5, are established or carry on their affairs in Turkey, in being understood that, when the control of these firms or companies is outside Turkey, the said associated companies, branches, agencies and representatives will only be taxed in proportion to the amount of the capital actually employed in Turkey, or in respect of the profits and revenues which they have actually earned there, these profits and revenues being used to determine the amount of capital employed if it is impossible to verify that capital.

Article 10

If the Turkish Government establishes any exemptions from fiscal charges, or any kind or under any description whatsoever, these exemptions will be granted to the nationals or companies established in Turkey of the other contracting countries in the same way as to Turkish nationals or to companies established under Turkish law.

This provision cannot be used to support a claim to the benefit of exemptions from charges granted to undertakings established by the State or to concessionaires of public utility service.

Article 11

In respect of all matters referred to in Articles 8 to 10, provincial or local charges, imposts or taxes, leviable in Turkey on the nationals of the other contracting countries shall not be other or higher than those levied on Turkish nationals.

Article 12

No forced loan or capital levy shall be imposed in Turkey, even in case of war, on nationals of other contracting countries established in Turkey or carrying on their affairs therein, or on their property, rights and interests situated in Turkish territory, or on corporations, associated companies, branches or agencies constituted under the law of one of the said countries and established in Turkey or carrying on their affairs therein.

Article 13

The Capitulations having been abolished, Turkey will not grant to the nationals of foreign, countries any treatment more favourable than that accorded to her own nationals, and will apply to her nationals and to the nationals of the other Contracting Parties the principle of equality of treatment as regards the matters referred to in this Section.