The sun., 1919-05-08

(e) Damages to property other
than naval or militay materials.
O) Damage to civilians by being
forced to labor.
(g) Damages In the form OF levle,
or fines imposed by the enemy.
Germany further binds herself ia
repay all sums borrowed by Bel
GUM from her Allies as a result OF
Germany's violation of the treay OF
1889 UP to November II, 1918. and
for this purpose will issue at once
and hand over to the PREPARATION
Commission per cent gold bonds
falling due in 1925. The total obll-
cation of Germany to pay as defined
in the category of damages is to
be determined and notified TO her
after a fair hearing and not later
than May 1, 1921, by an Inter-alled
Repatriation Commission.
At the same time schedule OF
payments to discharge tire obllga-
ton within thirty years shall he
presented. These payments are sub
ject to postponement in certain
contingencies. Germany irrevocably
recognizes the full authority of this
commission, agrees to supply II
and to pass legislation to effectuats
its findings. She further agrees to
restore to the Allies cash and GER
tain articles which can be identified.
AS an immediate step toward res
toration Germany shall pay within
two years one thousand million
pounds sterling in either gold. goods,
ships or other specific forms of pay
hi hntp t,C
and not additional to, first thousand
million bond issue referred to below
with the understanding that GER
tain expenses, such as those of the
armies of occupation and payments
for food and raw materials, may be
deducted at the discretion OF the
Allies.
In periodically estimating Ger
many's capacity to pay, the Repara-
ton Commission shall examine the
German system Of taxation. to the
the end that the sums for repara-
ton which Germany is required to
pay shall become a charge upon all
her revenues, prior to that, for the
service 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
peoples represented on the commits
sion.
The measures which the allied and
associated Powers shall have tho
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
circumstances. ..
The commission shall consist o
one representative each of the
United States, Great Britain.
France, Italy and Belgium. rep
resentative of Serbia or Japan taxi
ing the place of the Belgian repre-
sentative when the interests OF
either country are particularly az
fected, with all other allied powers
entitled, when their claims are un-
der consideration. to the right OF
representation without voting pow
er. 1t shall permit Germany to give
evidence regarding her capacity 10
pay and shall assure a just oppor-
tunity to be heard.
1t shall make it's possessors head
quarters at Paris, establish its own
procedure and personnel, have gen.
eral control of the whole PREPARATION
problem. and become the exclusive
agency Of the Allies for receiving.
holding. selling and distributing
reparation payments. Majority vote
shall prevail except. that unanimity
is required on questions involving
the sovereignty Of any Of the Allies.
the cancellation Of all or part OF
Germany's obligations. the time and
manner of selling. distributing and
negotiating bonds issued by Ger
many. any postponement between
1921 and 1926 of annual payments
beyond 1890, and any postponement
after 1926 for a period of more
than three years of the application
of a different method of mea surfing
damage than in a similar form or
case and the Interpretation of pro-
visions.
Withdrawal from representation
on the commission is permitted upo0
twelve months notice. The COM
mission may, require Germany to
give from time to time. by way o.
guarantee, issues Of bonds or other
obligations to cover such clalna
as are not otherwise satisfied in
this connection, and on account -
the total amount of claims bond
issues are presently to be required
of Germany In acknowledgment Of
its debt as follows
One thousand million pound,
sterling. payable not later than MAY
i
sand million pounds sterling bear-
ing PA per cent. interest between
1921 and 1926, and thereafter )
per cent, with l per cent sinking
fund payment beginning in 1895
and an undertaking to deliver bonds
to an additional amount of two
thousand million pounds sterling
bearing interest at ) per cent
Under terms to be fixed by tAe
commission interest on Germany's
debt viii he per cent. unless other
wise determined by the commission
in the future, and payments that
are not made in gold may "be A.
cepted by the commission in tine
form of properties. commodities.
businesses, rights, concessions. g."
Certificates of beneficial interest,
representing either bonds or goods
delivered by Germany, may ho is
sued by the commission to the inter-
ested Powers. AS bonds are distrlh-
uted and pass from the control o.
the commission an amount Of Ger
many's best equivalent to their part
value is to be considered as liqui-
dated.
shipping.
The German Government TeoNC-
nizes the right OF the Allies to ,ne