New-York tribune., 1919-05-08

forms of payment, this sum being
included in and not additional to the
first $5,O00,O00,000 bond issue re-
ferred to below, with the under
standing that certain expenses, such
as those of the armies Of occupation
and payments for food and raw ma
terials, may be deducted at the dis
cretion of the Allies.
In periodically estimating Ger
many's capacity to pay, the repara-
tion commission shah examine the
German system of taxation, first to
the end that the sums for reparation
which Germany is required to pay
shall become charge upon all her
revenues, prior to that for the serv-
ice or discharge of any domestic
loan, and secondly so as to satisfy
itself that, in general, the German
scheme of taxation is fully as heavy
proportionately as that of any Of
the powers represented on the COM
mission.
The measures which the allied
and associated powers shall have the
right to take, in case of voluntary
default by Germany, and which Ger
many agrees not to regard as acts
Of war, may include economic and
financial prohibitions and reprisals
and in general such other measures
as the respective governments may
determine to be necessary in the cir
cumstances.
The commission shall consist of
one representative each of the
United States, Great Britain, France,
Italy and Belgium, a preventative
of Serbia or Japan taking the place
of the Belgian representative when
the interests of either country
are particularly affected, with all
other allied powers entitled, when
their claims are under consideration,
to the right of representation with
out voting power. 1t shall permit
Germany to give evidence regarding
her capacity to pay and shall assure
her a just opportunity to be heard.
1t shall make it's headquarters at
Paris; establish it's own procedure
and personnel; have general con-
troll of the whole reparation problem
and become the exclusive agency of
the Allies for receiving, holding, SELL
ing and distributing reparation pay
ments. Majority vote shall prevail ex-
cept that unanimity is required on
questions involving the sovereignty
of any of the Allies, the cancellation
of all or part of Germany's obliga-
tions, the time and manner of sell
ing, distributing and negotiating
bonds issued by Germany, and post
ponement between 1921 and 1925
Of annual payments beyond 1880
and any postponement after 1926
for a period of more than three
years Of the application ola different
method of measuring damage than
in similar form or case, and the
Interpretation of provisions. With
drawal from presentation is per-
mitted on twelve months notice.
The commission may require Ger
many to give from time to time, by
way of guarantee, issues of bonds
or other obligations to cover such
claims as are not otherwise satisfied.
In this connection and on account
of the total amount of claims bond
issues are presently to be required
of Germany in acknowledgment Of
its debt as follows: One thousand
million pounds sterling, payable not
later than May /, 1921, without in
terest; 2,000,0O0,000 pounds ster-
ling bearing 21a per cent interest
between 1921 and 1926 and there
after per cent, with / per cent
sinking fund, payment beginning in
1926 and an undertaking to deliver
bonds to an additional amount of
2,000,000,000 pounds sterling bear
ing interest at per cent.
Under terms fixed by the COM
mission interest on Germany's debt
will be per cent unless otherwise
determined by the commission in the
future, and payments that are not
made in gold may "be accepted by
the commission in the form of prop
critics, commodities, businesses,
rights, concessions, etc. Certifi-
Gates Of beneficial interest, represent
ing either bonds or goods delivered
by Germany, may be issued by the
commission to the interested powers.
AS bonds are distributed and pass
from the control Of the commission,
an amount of Germany's debt equiv
alcnt to their par value Is to be con-
sidercd as liquidated.