THE DECISION OF THE LEAGUE OF NATIONS After prolonged and open disagreement between the Allied Powers, France wishing to assign the whole industrial region to Poland, Great Britain to leave all except the south-east corner, with Pless and Rybnik, to Germany, it was decided, Italy and Japan supporting the British view, to entrust the decision to a commission of the Council of the League of Nations. This com mission was ultimately constituted by the representatives of Japan (chairman), Brazil, China, Spain and Belgium. An award, published on Oct. 20, 1921, assigned to Poland at least 75% of the aggregate material wealth of the country. In order to guar antee the continuity of the economic life of the region during a provisional period of readjustment, and to provide for the pro tection of minorities, the commission recommended that a general convention be concluded between Germany and Poland, so as to place Upper Silesia under a special regime during the transitional period, and that an advisory "Upper Silesian Mixed Commission" should be set up, together with an arbitral tribunal for settling private disputes occasioned by the temporary measures.
The provisional or transitional period was to be 15 years. Dur ing that period: (I) Railway and tramway systems, privately owned or municipal, to continue under the terms of their con cessions, and the German State railways to be put under a joint system of operation. Railway rates to be uniform ; the State in surance of employees in the Silesian railway system to be under taken by that system ; a single accounts office to be set up for the whole system; expenses of new construction to be charged to a separate account, and borne by the State in whose territory it was carried out ; the working capital for operation to be lent by the German State, and interest charged to the account of this system; profits or deficits to be divided between the two coun tries in proportion to the length of line and amount of traffic belonging to each. (2) The German mark was to be the only legal unit of currency, and Poland was to recognize the rights of the Reichsbank for a period not exceeding 15 years, but by agreement the two Governments might modify this arrangement earlier. (3) While the German monetary system was maintained in the Polish zone, the postal, telegraph and telephone charges should be in German currency. (4) The customs frontier should coin cide with the political frontier, and the German and Polish cus toms law should apply, with certain exceptions.
For six months incoming goods from other countries, on which German or Polish duties had been paid previously to the partition, should cross the frontier without duty. For 15 years, natural products originating or coming from one of the two zones of the plebiscite area, and destined for consumption in the other, should cross the frontier free of duty. For six months, raw, half-manu factured and unfinished products of industrial establishments in one zone, destined for industrial establishments in the other, should cross free of duty; and this should continue for Is years when the products, as finished, were intended for free importation into the country of origin. Natural or manufactured products originating in the Polish zone should, on importation into the Ger man customs territory, be exempt from duty for three years from the date of the frontier-delineation. As regards export, the two countries should facilitate for 15 years the export of such pro ducts as were indispensable for industry in either zone. (5) Poland was to permit, for 15 years, the exportation to Germany of the products of the coal-mines in the Polish zone, and Germany similarly to Poland in respect of the mines in the German zone. (6) For the 15 years, any inhabitant regularly domiciled or occu pied in the plebiscite area should receive a "circulation permit," free of payment, enabling him to cross the frontier without other formalities. (7) Generally, the two countries should respect pri vate rights.
A German-Polish conference met at Geneva on Nov. 23, 1921, and a detailed convention was signed on May 15, 1922. On the whole, the industrial provisions suggested by the League worked unexpectedly smoothly. The prosperity of Polish Silesia was greatly furthered by the British coal strike of 1926. On the German side there was a tendency to transfer capital from Silesia to the Ruhr. A curious difficulty arose when the three-year duty free period expired, owing to the world glut of coal. Germany was anxious to stop the free imports at the earliest date, while Poland wished for their continuance. This difference was a major obstacle to the conclusion of a German-Polish commercial treaty. An appeal by the German Government to the Permanent Court of International Justice on May 15, 1925, against Polish action in expropriating a nitrate factory at Chorzow, and certain landed estates, resulted in a decision by the Court generally in favour of Germany (May 25, 1926).