135

Hungary or in the territory of any other of the Axis Powers, or in any territory occupied by the Axis forces, during the time when such territory was under the control of the forces or authorities of the Axis Powers. 7. Hungary shall likewise extend the benefits of the foregoing provisions of this Annex to France, and to other United Nations which are not Allied or Associated Powers, whose diplomatic relations with Hungary have been broken off during the war and which undertake to extend to Hungary the benefits accorded to Hungary under the said provisions. 8. Nothing in Part A of this Annex shall be understood to conflict with Articles 26, 29 and 31 of the present Treaty. B. INSURANCE 1, No obstacles, other than any applicable to insurers generally, shall be placed in the way of the resumption by insurers who are United Nations nationals of their former portfolios of business. 2. Should an insurer, who is a. national of any of the United Nations, wish to resume his professional activities in Hungary, and should the value of the guarantee deposits or reserves required to be held as a condition of carrying on business in Hungary be found to have decreased as a result of the loss or depreciation of the securities which constituted such deposits or reserves, the Hungarian Government undertakes to accept, for a period of eighteen months, such securities as still remain as fulfilling any legal requirements in respect of deposits and reserves. ANNEX V. CONTRACTS, PRESCRIPTION AND NEGOTIABLE INSTRUMENTS A. CONTRACTS i. Any contract which required for its execution intercourse between any of the parties thereto having become enemies as defined in part D of this Annex, shall, subject to the exceptions set out in paragraphs 2 and 3 below, be deemed to have been dissolved as from the time when any of the parties thereto became enemies. Such dissolution, however, is without prejudice to the provisions of Article 31 of the present Treaty, nor shall it relieve any party to the contract from the obligation to repay amounts received as advances or as payments on account and in respect of which such party has not rendered performance in return. 2. Notwithstanding the pro visions of paragraph 1 above, there shall be excepted from dissolution and, without prejudice to' the rights contained in Article 29 of the present Treaty, there shall remain in force such parts of any contract as are severable and did not require for their execution intercourse between any of the parties thereto, having become enemies as defined in part D of this Annex. Where the provisions of any contract are not so severable, the contract shall be deemed to have been dissolved in its entirety. The foregoing shall be subject to the application of domestic laws, orders or regulations made by any of the Allied and Associated Powers having jurisdiction over the contract or over any of the parties thereto and shall be subject to the terms of the contract. 3. Nothing in part A of this Annex shall be deemed to invalidate transactions lawfully carried out in accordance with a contract Between enemies if they have been carried out with the authorization of the Government of one of the Allied and Associated Powers. 4. Notwithstanding the foregoing provisions, contracts of insurance and reinsurance shall be subject to separate agreements between the Government of the Allied or Associated Power concerned and the Government of Hungary,