Section 103 · SECOND SCHEDULE PROTOCOL REGARDING ARBITRATION CLAUSE

The undersigned, being duly authorized, declare that on behalf of the countries we represent we accept the following provisions:
1. Each of the Contracting States recognizes the validity of an agreement between two parties subject to the jurisdiction of the different Contracting States regarding differences, whether existing or future, by which the parties to a contract have agreed to submit to arbitration all or any differences which may arise in connection with such contract on any commercial matters or on any other matters which are capable of being settled by arbitration, whether or not such arbitration takes place in a country to whose jurisdiction none of the Parties is subject:
Each Contracting State reserves the right to limit its obligations set forth above to contracts which are deemed to be of a commercial character under its own national law. Any Contracting State which exercises this right shall notify the Secretary-General of the League of Nations so that the other Contracting States may be informed thereof.
2. The arbitral procedure, including the constitution of the arbitral tribunal, shall be governed in the manner desired by the parties and in accordance with the law of the country within whose territory the arbitration takes place.
The Contracting States agree to facilitate the taking of all procedural steps which may be required to be taken within their territories in accordance with the provisions of their law governing the applicable arbitral procedure for resolving existing differences.
3. Each Contracting State undertakes to have any arbitral award rendered within its territory under the preceding articles executed by its own authorities and in accordance with the provisions of its national laws.
4. The tribunals of the Contracting Parties shall, when a dispute comes to their notice concerning a contract which has been entered into between persons to whom Article 1 applies and which includes, whether by virtue of that Article, an arbitration agreement specifying existing or future differences which is valid and enforceable, on the application of any of them, refer the parties to the decision of arbitration.
Such a reference shall not prejudice the competence of the judicial tribunals in the event that the agreement or the arbitration is no longer tenable or has become unenforceable.
5. This Protocol, which is open to signature by all States, shall be ratified. Such ratification shall be deposited as soon as possible with the Secretary-General of the League of Nations and the Secretary-General shall give notice of such deposit to all signatory States. 6. This Protocol shall come into force as soon as two ratifications have been deposited. Thereafter it shall take effect in the case of each Contracting State one month after the Secretary-General has given notice of the deposit of its ratification.
7. The present Protocol may be renounced by a Contracting State after one year's notice has been given by the Secretary-General. The Secretary-General of the League shall send copies of the notification to all signatory States and inform them of the date on which it was received. The renunciation shall take effect one year after the date on which it was notified to the Secretary-General and shall operate only in respect of the State making the notification.
8. Contracting States may declare that their acceptance of this Protocol does not include any or all of the following territories, namely, their colonies, foreign possessions or territories, protectorates or territories over which they exercise authority.
The aforesaid States may thereafter separately accede on behalf of any territory so excluded. Such acceding shall be notified as soon as possible to the Secretary-General of the League of Nations. The Secretary-General shall notify all signatory States of such acceding. Such acceding shall take effect one month after the date of such notification by the Secretary-General to the signatory States.
The Contracting States may also separately renounce this Protocol on behalf of any of the territories specified above. Article 7 shall apply to such a renunciation.