H.M. . . . etc. etc.

Having in view the universal interest attaching to all efforts to retard the growth of armaments, and to promote their ultimate reduction when circumstances shall permit thereof;

Having in view also that, though the Powers were not successful in arriving at any agreement as to the reduction of armaments at the Conference of 1899, they were nevertheless unanimous in the adoption of the following resolution: "The Conference is of opinion that the restriction of military budgets, which are at present a heavy burden on the world, is extremely desirable for the increase of the material and moral welfare of mankind";1

With the object of giving effect to the above resolution, in default of a direct undertaking among the Powers to restrict their military budgets, it appearing desirable to the Powers to endeavour to promote the same object by indirect means, and believing that by making provision, as far as possible, for the peaceable adjustment of conflicts involving vital interests or the national honour, and by restricting the growth of questions. dangerous for international peace, the need for increasing the burden of armaments may diminish, and their ultimate reduction be rendered possible;

And whereas by a separate agreement the Powers have dealt with the peaceable adjustment of international conflicts generally;

3. In case any H.C.P. shall acquire dominion or any dominant influence over territory outside Europe, by way of annexation, protectorate, lease, sphere of influence, or otherwise, such acquisition shall be subject to the condition that absolute equality of treatment, whether by way of import or export duties, concessions, privileges, and in economic matters of all kinds, shall be granted, maintained, or recognised, as the case may be, in regard to the subjects and citizens of all States without distinction.1

1 See p. 133 et seq.

4. All matters relating to this Convention shall be centralised at the offices of the Permanent Administrative Council 2 of The Hague Court, and notices of all kinds addressed to the President thereof (the Minister of Foreign Affairs of the Netherlands) shall be considered as given to all the H.C.P. within . . after acknowledgment by him of receipt thereof.

5. This Convention shall be binding for a period of ten

years.

2 Art. XXVIII.-A permanent Administrative Council composed of the Diplomatic Representatives of the Signatory Powers accredited to The Hague, and of the Netherland Minister for Foreign Affairs, who will act as president, shall be instituted in this town as soon as possible after the ratification of the present Act by at least nine Powers. This Council will be charged with the establishment and organisation of the International Bureau, which will be under its direction and control. It will notify to the Powers the constitution of the Court, and will provide for its installation. It will settle its Rules of Procedure and all other necessary Regulations. It will decide all questions of administration which may arise with regard to the operations of the Court. It will have entire control over the appointment, suspension, or dismissal of the officials and employés of the Bureau. It will fix the payments and salaries, and control the general expenditure. At meetings duly summoned, the presence of five members is sufficient to render valid the discussions of the Council. The decisions are taken by a majority of votes. The Council communicates to the Signatory Powers without delay the Regulations adopted by it. It furnishes them with an annual Report on the labours of the Court, the working of the Administration, and the expenses.

It shall be in the power of any H.C.P. to withdraw from it, after giving notice of withdrawal of not less than one year before expiry of the tenth year. In default of such notice being given, the Convention shall continue to bind the H.C.P. for further periods of five years, on the same conditions. On receiving any notice of withdrawal, the President of the Permanent Administrative Council shall immediately call a meeting thereof and inform it of the notice received. The Council shall meet again without special convocation . . . thereafter. If no notice of withdrawal on the part of any other H.C.P. shall meanwhile have been received, the Convention shall ipso facto continue binding on all the other H.C.P. for a further period, provided, however, that at the request of any H.C.P. before expiry of the ninth year, and if notice of any withdrawal shall have been received during after expiry of the ninth year, a meeting of the H.C.P. shall be called to consider any matters in connection therewith.