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Rh posts, taxes, and rates leviable in respect of the leased land and houses thereon under the second clause of the leases in perpetuity the following adjustment shall be made:

(a) A sufficient sum shall be appropriated out of, and not in excess of, the ground rent payable in respect of the leased land in question to cover national land and house taxes leviable on the said leased land and houses thereon were such land held by an actual owner;

(b) In case the remainder, if any, of the said ground rent equals the local and municipal taxes and rates leviable on the said leased land and houses thereon were such land held by an actual owner the said land and houses shall be exempt from all such local and municipal taxes and rates;

(c) In case the remainder of the said ground rent exceeds the local and municipal taxes and rates leviable on the said leased land and houses thereon were such land held by an actual owner the surplus shall be refunded;

(d) In case the local and municipal taxes and rates leviable on the said leased land and houses thereon were such land held by an actual owner exceed the remainder of the said ground rent the said land and houses shall be liable to taxes and rates to an extent sufficient to make the local and municipal taxes and rates on such land and houses equal to the local and municipal taxes and rates leviable on the leased land and houses thereon were such land held by an actual owner.

VII. The holders of leases in perpetuity aforesaid shall be accorded national and most favoured nation treatment in the matter of imposts, taxes, and rates of whatever kind and nature, whether national, local, or municipal, not otherwise provided for in the present Protocol.

VIII. The competent Registry Offices in Chosen shall undertake due registration of the leases in perpetuity aforesaid as well as subsidiary rights relating thereto. Such registration, consistently with the provisions of law, shall be available against third parties. Legalized copies of the existing Consular registrations relating to the said subsidiary rights shall be transferred to the competent Registry Offices. Registrations so transferred shall continue to have the same force and value as they had in the Consular Offices in which such registrations were effected.

With regard to the leases in perpetuity on which mortgages exist in the Consular Registers concerned at the time of the abolition of the system of Foreign Settlements no registration shall be made in respect of the transfer of such leases in perpetuity to a third party or their conversion to actual ownership, or the cancellation of subsidiary rights relating thereto, except upon the written application of the holders of the said leases in perpetuity or their duly authorized agents certified by their Consular Representatives. This arrangement, however, shall not affect cases where leases in perpetuity are disposed of in default of payment of rent, taxes or rates, or by virtue of legal process.