THE TREATY OF PEACE BETWEEN THE ALLIED AND ASSOCIATED POWERS
SIGNED AT SÈVRES
AUGUST 10, 1920
Turkey recognises that by joining in the war of aggression
which Germany and Austria-Hungary waged against the Allied
Powers she has caused to the latter losses and sacrifices of all
kinds for which she ought to make complete reparation.
On the other hand, the Allied Powers recognise that the
resources of Turkey are not sufficient to enable her to make
In these circumstances, and inasmuch as the territorial rearrangements resulting from the present Treaty will leave to
Turkey only a portion of the revenues of the former Turkish
Empire, all claims against the Turkish Government for reparation are waived by the Allied Powers, subject only to the provisions of this Part and of Part IX (Economic Clauses) of the
The Allied Powers, desiring to afford some measure of relief
and assistance to Turkey, agree with the Turkish Government
that a Financial Commission shall be appointed consisting of
one representative of each of the following Allied Powers who are
specially interested, France, the British Empire and Italy, with
whom there shall be associated a Turkish Commissioner in a
consultative capacity. The powers and duties of this Commission
are set forth in the following Articles.
The Financial Commission shall take such steps as in its judgment are best adapted to conserve and increase the resources of
The Budget to be presented annually by the Minister of Finance to the Turkish Parliament shall be submitted, in the first
instance, to the Financial Commission, and shall be presented to
Parliament in the form approved by that Commission. No
modification introduced by Parliament shall be operative without
the approval of the Financial Commission.
The Financial Commission shall supervise the execution of the
Budget and the financial laws and regulations of Turkey. This
supervision shall be exercised through the medium of the Turkish
Inspectorate of Finance, which shall be placed under the direct
orders of the Financial Commission, and whose members will
only be appointed with the approval of the Commission.
The Turkish Government undertakes to furnish to this Inspectorate all facilities necessary for the fulfilment of its task, and to
take such action against unsuitable officials in the Financial
Departments of the Government as the Financial Commission
The Financial Commission shall, in addition, in agreement
with the Council of the Ottoman Public Debt and the Imperial
Ottoman Bank, undertake by such means as may be recognised
to be opportune and equitable the regulation and improvement
of the Turkish currency.
The Turkish Government undertakes not to contract any
internal or external loan without the consent of the Financial
The Turkish Government engages to pay, in accordance with
the provisions of the present Treaty, for all loss or damage, as
defined in Article 236, suffered by civilian nationals of the Allied
Powers, in respect of their persons or property, through the
action or negligence of the Turkish authorities during the war
and up to the coming into force of the present Treaty.
The Turkish Government will be bound to make to the European Commission of the Danube such restitutions, reparations
and indemnities as may be fixed by the Financial Commission
in respect of damages inHicted on the said European Commission
of the Danube during the war.
All the resources of Turkey, except revenues conceded or
hypothecated to the service of the Ottoman Public Debt (see
Annex 1), shall be placed at the disposal of the Financial Commission, which shall employ them, as need arises, in the following
(i) The first charge (after payment of the salaries and current
expenses of the Financial Commission, and of the ordinary
expenses of such Allied forces of occupation as may be maintained
after the coming into force of the present Treaty in territories
remaining Turkish) shall be the expenses of the Allied forces of
occupation since October 30, 1918, in territory remaining Turkish,
and the expenses of Allied forces of occupation in territories
detached from Turkey in favour of a Power other than the
Power which has borne the expenses of occupation.
The amount of these expenses and of the annuities by which
they shall be discharged will be determined by the Financial
Commission, which will so arrange the annuities as to enable
Turkey to meet any deficiency that may arise in the sums
required to pay that part of the interest on the Ottoman Public
Debt for which Turkey remains responsible in accordance with
(ii) The second charge shall be the indemnity which the
Turkish Government is to pay, in accordance with Article 235,
on account of the claims of the Allied Powers for loss or damage
suffered in respect of their persons or property by their nationals,
(other than those who were Turkish nationals on August 1, 1914)
as defined in Article 317, Part IX (Economic Clauses), through
the action or negligence of the Turkish authorities during the
war, due regard being had to the financial condition of Turkey
and the necessity for providing for the essential expenses of its
administration. The Financial Commission shall adjudicate
on and provide for payment of all claims in respect of personal
damage. The claims in respect to property shall be investigated,
determined and paid in accordance with Article 287, Part IX
(Economic Clauses). The Financial Commission shall fix the
annuity to be applied to the settlement of claims in respect of
persons as well as in respect of property, should the funds at
the disposal of the Allied Powers in accordance with the said
Article 287, be insufficient to meet this charge, and shall determine the currency in which the annuity shall be paid.
Any hypothecation of Turkish revenues effected during the
war in respect of obligations (including the internal debt) contracted by the Turkish Government during the war is hereby
Turkey recognises the transfer to the Allied Powers of any
claims to payment or repayment which Germany, Austria,
Bulgaria or Hungary may have against her, in accordance with
Article 261 of the Treaty of Peace concluded at Versailles on
June 28, 1919, with Germany, and the corresponding Articles of
the Treaties of Peace with Austria, Bulgaria and Hungary.
The Allied Powers agree not to require from Turkey any pay ment in respect of claims so transferred.
No new concession shall be granted by the Turkish Government either to a Turkish subject or otherwise without the consent of the Financial Commission.
States in whose favour territory is detached from Turkey shall
acquire without payment all property and possessions situated
therein registered in the name of the Turkish Empire or of the
States in whose favour territory has been detached from
Turkey, either as a result of the Balkan Wars in 1913, or under
the present Treaty, shall participate in the annual charge for the
service of the Ottoman Public Debt contracted before November 1, 1914.
The Governments of the States of the Balkan Peninsula and
the newly-created States in Asia in favour of whom such territory
has been or is detached from Turkey shall give adequate guarantees for the payment of the share of the above annual charge
allotted to them respectively.
For the purposes of this Part, the Ottoman Public Debt shall
be deemed to consist of the Debt heretofore governed by the
Decree of Mouharrem, together with such other loans as are
enumerated in Annex I to this Part.
Loans contracted before November 1, 1914, will be taken into
account in the distribution of the Ottoman Public Debt between
Turkey, the States of the Balkan Peninsula and the new States
set up in Asia.
This distribution shall be effected in the following manner:
(I) Annuities arising from loans prior to October 17, 1912
(Balkan Wars), shall be distributed between Turkey and the
Balkan States, including Albania, which receive or have received
any Turkish territory.
(2) The residue of the annuities for which Turkey remains
liable after this distribution, together with those arising from
loans contracted by Turkey between October 17, 1912, and
November 1, 1914, shall be distributed between Turkey and the
States in whose favour territory is detached from Turkey under
the present Treaty.
The general principle to be adopted in determining the amount
of the annuity to be paid by each State will be as follows:
The amount shall bear the same ratio to the total required
for the service of the Debt as the average revenue of the transferred territory bore to the average revenue of the whole of
Turkey (including in each case the yield of the Customs surtax
imposed in the year 1907) over the three financial years 1909-10, 1910-11, and 1911-12.
The Financial Commission shall, as soon as possible after the
coming into force of the present Treaty, determine in accordance
with the principle laid down in Article 243 the amount of the
annuities referred to in that Article, and communicate its decisions in this respect to the High Contracting Parties.
The Financial Commission shall fulfil the functions provided
for in Article 134 of the Treaty of Peace concluded with Bulgaria
on November 27, 1919.
The annuities assessed in the manner above provided will be
payable as from the date of the coming into force of the Treaties
by which the respective territories were detached from Turkey,
and, in the case of territories detached under the present Treaty
from March 1, 1920; they shall continue to be payable (except
as provided by Article 252) until the final liquidation of the
Debt. They shall, however, be proportionately reduced as the
loans constituting the Debt are successively extinguished.
The Turkish Government transfers to the Financial Commission all its rights under the provisions of the Decree of Mouharrem
and subsequent Decrees.
The Council of the Ottoman Public Debt shall consist of the
British, French and Italian delegates, and of the representative
of the Imperial Ottoman Bank, and shall continue to operate as
heretofore. It shall administer and levy all revenues conceded
to it under the Decree of Mouharrem and all other revenues the
management of which has been entrusted to it in accordance
with any other loan contracts previous to November 1, 1914.
The Allied Powers authorise the Council to give administrative assistance to the Turkish Ministry of Finance, under such
conditions as may be determined by the Financial Commission
with the object of realising as far as possible the following programme:
The system of direct levy of certain revenues by the existing
Administration of the Ottoman Public Debt shall, within limits
to be prescribed by the Financial Commission, be extended as
widely as possible and applied throughout the provinces remaining Turkish. On each new creation of revenue or of indirect
taxes approved by the Financial Commission, the Commission
shal consider thepossibility of entrusting the administration
thereof to the Council of the Debt for the account of the Turkish
The administration of the Customs shall be under a Director-General appointed by and revocable by the Financial Commission and answerable to it. No change in the schedule of the
Customs charges shall be made except with the approval of the
The Governments of France, Great Britain and Italy will
decide, by a majority and after consulting the bondholders
whether the Council should be maintained or replaced by the
Financial Commission or the expiry of the present term of the
Council. The decision of the Governments shall be taken at
least six months before the date corresponding to the expiry of
The Commission has authority to propose, at a later date, the
substitution for the pledges at present granted to bondholders, in
accordance with their contracts or existing decrees, of other
adequate pledges, or of a charge on the general revenues of
Turkey. The Allied Governments undertake to consider any
proposals the Financial Commission might then have to make
on this subject.
All property, movable and immovable, belonging to the Administration of the Ottoman Public Debt, wherever situate,
shall remain integrally at the disposal of that body.
The Council of the Debt shall have power to apply the value
of any realised property for the purpose of extraordinary amortisation either of the Unified Debt or of the Lots Turcs.
The Turkish Government agrees to transfer to the Financial
Commission all its rights in the Reserve Funds and the Tripoli
A sum equal to the arrears of any revenues heretofore affected
to the service of the Ottoman Public Debt within the territories
remaining Turkish, which should have been but have not been
paid to the Council of the Debt, shall (except where such territories have been in the military occupation of Allied forces and
for the time of such occupation) be paid to the Council of the
Debt by the Turkish Government as soon as in the opinion of
the Financial Commission the financial condition of Turkey
The Council of the Debt shall review all the transactions of
the Council which have taken place during the war. Any disbursements made by the Council which were not in accordance
with its powers and duties, as defined by the Decree of Mouharrem or otherwise before the war, shall be reimbursed to the
Council of the Debt by the Turkish Government so soon as in
the opinion of the Financial Commission such payment is possible.
The Council shall have power to review any action on the part
of the Council during the war, and to annul any obligation which
in its opinion is prejudicial to the interests of the bondholders,
and which was not in accordance with the powers of the Council
of the Debt.
Any of the States which under the present Treaty are to contribute to the annual charge for the service of the Ottoman
Public Debt may, upon giving six months' notice to the Council
of the Debt, redeem such obligation by payment of a sum representing the value of such annuity capitalised at such rate of
interest as may be agreed between the State concerned and the
Council of the Debt. The Council of the Debt shall not have
power to require such redemption.
The sums in gold to be transferred by Germany and Austria
under the provisions of Article 259 (1), (2), (4) and (7) of the
Treaty of Peace with Germany, and under Article 210 (1) of the
Treaty of Peace with Austria, shall be placed at the disposal of
the Financial Commission.
The sums to be transferred by Germany in accordance with
Article 259 (3) of the Treaty of Peace with Germany shall be
placed forthwith at the disposal of the Council of the Debt.
The Turkish Government undertakes to accept any decision
that may be taken by the Allied Powers, in agreement when
necessary with other Powers, regarding the funds of the Ottoman Sanitary Administration and the former Superior Council
of Health, and in respect of the claim of the Superior Council of
Health against the Turkish Government, as well as regarding
the funds of the Lifeboat Service of the Black Sea and Bosphorus.
The Allied Powers hereby give authority to the Financial
Commission to represent them in this matter.
The Turkish Government, in agreement with the Allied Powers,
hereby releases the German Government from the obligation
incurred by it during the war to accept Turkish Government
currency notes at a specified rate of exchange in payment for
goods to be exported to Turkey from Germany after the war.
As soon as the claims of the Allied Powers against the Turkish
Government as laid down in this Part have been satisfied, and
Ottoman pre-war Public Debt has been liquidated, the Financial
Commission shall determine. The Turkish Government shall
then consider in consultation with the Council of the League of
Nations whether any further administrative advice and assistance
should in the interests of Turkey be provided for the Turkish
Government by the Powers, Members of the League of Nations,
and, if so, in what form such advice and assistance shall be given.
(1) Turkey will deliver, in a seaworthy condition and in such
ports of the Allied Powers as the Governments of the said Powers
may determine all German ships transferred to the Turkish flag
since August 1, 1914; these ships will be handed over to the
Reparation Commission referred to in Article 233 of the Treaty
of Peace with Germany, any transfer to a neutral flag during the
war being regarded in this respect as void so far as concerns the
(2) The Turkish Government will hand over at the same time
as the ships referred to in paragraph (1) all papers and documents
which the Reparation Commission referred to in the said paragraph may think necessary in order to ensure the complete
transfer of the property in the vessels, free and quit of all liens,
mortgages, encumbrances, charges or claims, whatever their
The Turkish Government will effect any re-purchase or indemnisation which may be necessary. It will be the party responsible in the event of any proceedings for the recovery of, or in
any claims against, the vessel to be handed over whatever their
nature, the Turkish Government being bound in every case to guarantee the Reparation Commission referred to in paragraph (1) against any ejectment or proceedings upon any ground whatever arising under this head.
Without prejudice to Article 277, Part IX (Economic Clauses)
of the present Treaty, Turkey renounces, so far as she is concerned, the benefit of any provisons of the Treaties of Brest-Litovsk and Bucharest or of the Treaties supplementary thereto.
Turkey undertakes to transfer either to Roumania or to the
Principal Allied Powers, as the case may be, all monetary instruments, specie, securities and negotiable instruments or goods
which she has received under the aforesaid Treaties.
The legislative measures required in order to give effect to
the provisions of this Part will be enacted by the Turkish Government and by
the Powers concerned within a period which must
not exceed six months from the signature of the present Treaty.
THE OTTOMAN PRE-WAR PUBLIC DEBT. (NOVEMBER 5, 1914)
Section I, Listing of Public Debt.
Section II, Listing of Public Debt.
Section III, Listing of Public Debt.
The Commission shall establish its own rules and procedure.
The Chairmanship shall be held annually by the French, British
and Italian Delegates in turn.
Each member shall have the right to nominate a deputy to act
for him in his absence.
Decisions shall be taken by the vote of the majority. Abstention from voting will be treated as a vote against the proposal
The Commission shall appoint such agents and employees as
it may deem necessary for its work, with such emoluments and
conditions of service as it may think fit.
The costs and expenses of the Commission shall be paid by
Turkey, in conformity with the provisions of Article 236 (i.).
The salaries of the members of the Commission, as well as
those of its officials, shall be fixed on a reasonable scale by agreement from time to time between the Governments represented
on the Commission.
The members of the Commission shall enjoy the same rights
and immunities as are enjoyed in Turkey by duly accredited
diplomatic agents of friendly Powers.
Turkey undertakes to grant to the members, officials and
agents of the Commission full powers to visit and inspect at all
reasonable times any place, public works, or undertakings in
Turkey, and to furnish to the said Commission all records, documents and information which it may require.
The Commission shall be entitled to assume, in agreement
with the Turkish Government and independently of any default
of the latter in fulfilling its obligations, the control, management
and collection of all indirect taxes.
No member of the Commission shall be responsible, except
to the Government appointing him, for any action or omission
in the performance of his duties. No one of the Allied Governments assumes any responsisility in respect of any other Government.
The Commission shall publish annually detailed reports on its
work, its methods and its proposals for the financial reorganisation of Turkey, as well as regarding its accounts for the period.
The Commission shall also take over any other duties which
may be assigned to it under the present Treaty or with the assent
of the Turkish Government.