Clearing houses will be established, one in Germany, and one in each Allied and Associated State for the payment of prewar debts and those from contracts suspended during the war. For adjustment of proceeds of liquidation of enemy property and settlement of other obligations each state participating assumes responsibility for debts owing its nationals, to nationals of enemy states, except in case of prewar insolvency of the debtor. Proceeds of sale of enemy properties in each participating state may be used to pay the debts owed the nationals of that state. Disputes to be settled by the courts of the debtor country. ENEMY PROPERTY. Germany shall restore or pay for all enemy property seized or damaged by her, the amount to be fixed by a mixed tribunal. German property within Allied or Associated States may be liquidated as compensation for property of their nationals not paid for by Germany, who will compensate her nationals for such losses. Prewar contracts between Allied and Associated States--excepting the United States, Japan, and Brazil,--and German nationals are canceled except for debts for accounts already performed. For the transfer of property, leases of land, mortgages, etc., arbitral tribunals of three members, one from Germany, and one each chosen by Associated States, shall have jurisdiction over all disputes. INSURANCE. Fire insurance contracts are not dissolved by the war even if premiums have not been paid, but lapse at the date of the first premium falling due three months after the peace. Life insurance contracts may be restored by payment of accumulated premiums and interest. Marine insurance contracts are dissolved by the outbreak of war except where the risk insured against had already been incurred. Reinsurance contracts are abrogated unless invasion has made it impossible for the reinsured to find another reinsurer. Any Associated or Allied Power may cancel all contracts running between its nationals and a German life insurance company, the latter being obligated to hand over the proportion of the assets attributable to such policies. INDUSTRIAL PROPERTY. Rights to industrial, literary, and artistic property are reestablished. Special war measures of the powers are ratified, and the right reserved to impose conditions on the use of German patents and copyrights in the public interest. Except as between the United States and Germany prewar licenses and rights to sue for infringements committed during the war are canceled. SECTION XI. AERIAL NAVIGATION. Aircraft of Allied and Associated Powers shall have full liberty of passage, etc., and equal treatment with German planes in German territory and with most-favored-nation planes as to commercial traffic. Germany agrees to accept Allied certificates of airworthiness, competency, etc., and to apply the convention relative to aerial navigation concluded between the powers to her own aircraft over her own territory. SECTION XII. TRANSIT, PORTS, WATERWAYS.