Legal > Powers and duties attributed to the League of Nations by international treaties

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and for appointment of trustees by the Council. Both general
bonds contain a clause, mentioned above at page 12, under which
all questions arising under the general bond are to be settled by
the Council or an arbitrator or arbitrators appointed by it.
Danzig: Loan of the Municipality of Danzig.
Loan of the Free City of Danzig.
The two Danzig loans were arranged by the Financial Com¬
mittee acting under instructions from the Council.
The issue of the municipal loan “under the auspices of the League”
was finally sanctioned by a Council resolution of 14 March, 1925,
which at the same time approved the provisions concerning the
League contained in an agreement signed with the issuing bank.
The clauses in which these provisions will be found are reproduced
in the Financial Committee’s report (L. of N. Official Journal, 1925,
pp. 613-621). The council was given two functions. The first was
to appoint a trustee who was to hold mortgages under Danzig law
upon the municipal assets which were assigned as security and from
whose revenues the sums necessary for the service were to be paid,
and who was to manage the service. Secondly, while the execution
of the approved expenditure was to be controlled by the trustee,
the Council alone could authorize changes in the plan.
The Council resolution finally authorising the Free City loan,
which was adopted on 10 March, 1927 (L. of N. Official Journal,
1927, p. 386), confined itself to approving the general conditions
of issue proposed by the Financial Committee. From the com¬
mittee’s report it appears that the loan contract was to provide
“for a system of control designed to ensure that the proceeds of the
loan are used in accordance with the above mentioned programme of
expenditure, and similar to that which has been instituted in con¬
nection with the Danzig municipal loan, viz.: control by one or moie
trustees appointed by the League of Nations. . . The loan con¬
tract could further provide for a system of control to be exercised
by the trustee over the securities assigned to the loan service . The
realization of the committee’s proposals was secured by having the
contract approved by the committee’s chairman.
11. The protection of minorities.
The League’s functions in connection with the protection of
minorities in German and Polish Upper Silesia, under the special
regime applied to those areas at the moment of the partition,