The Washington times., 1919-05-07

cumstances."
The Commission shall consist OF
one representative each OF the United
States, Great Britain, France, Italy,
and Belgium, and in certain cases %
Japan and Serbia, with all other al
lied powers entitled, when their
claims are under consideration, to the
right OF representation without yot-
ing power. 1t shall permit Germany
to give evidence regarding her ca
pacity to pay and shall assume her
just opportunity to be heard. 1t
shall make it's headquarters at Paris;
establish its own procedure and per
sonnet; have general control of the
whole reparation problem; and be-
come the exclusive agency of the
allies for receiving, holding, selling.
and distributing reparation payments
Majority vote shall prevail except
that unanimity is required on ques-
tion involving the sovereignty Of any
of the allies. the cancellation of all or
part OF Germany's obligations, the
time and manner of selling, distrib-
uting, and negotiating bonds issued
by Germany. and postponement be-
tween 1921 and 1925 of annual pay
ments beyond 1880 and any postpone
ment after 1926 for a period of more
than three years, the application of
a different method of measuring dam
age than in a similar former case,
and the Interpretation of provisions.
Withdrawal from representation is
permitted OF twelve months notioe.
May Compel Bonds.
The commission may require Ger
many to give from time to time. by
way OF guaranty, 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 is
sues are presently to be required OF
Germany in acknowledgment of it's
debt as follows: 10000 .0OO,O 900 marks
gold, payable not later than May ].
1921. without interest; 100000. 900
gold bearing 2h per cent interest be-
tween 1921 and 1926. and thereafter
5 per cent, with a 1 per cent sinking
fund payment beginning in 1926; and
an undertaking to deliver 10000 900, ?
600 marks gold bonds bearing inter
est at per cent, under terms to be
fixed by the commission.
Interest on Germany's debt will be
3 per cent unless otherwise deter
mined by the commission in the fu-
ture, and payments that are not made
in gold may be accepted by the COM
mission in the form OF properties,
commodities. businesses. rights, con
cessions, etc" Certificates OF bene-
fetal interest. representing either
bonds or good dtlivtrtd by Germany
may be issued by the commission to
the interested power. no power being
entitled, however, to have its GER
tifcates divided inc more han fivt
pieces. AS bonds are distributed and
pass from the control OF the commits
sion, and amount of Germany's debts
equivaltnt to their par value Is to be
considered as liquidated.
Shipping. Tit Gtrman government
recognizes that right Of the allies 10
the replacement, ton for ton and class
for class, OF all merchant ships and
fishing boats lost or damaged owing
to the war. and agrees to cede to the
alltts all German merchant ships OF
LOGO tons gross and upward; one
half Of her ships between 1000 and
1000 tons gross. and ont-quarter OF
her steam trawlers and other fish
in gboats. These ships are to be
delivered within two months to the
Reparation Committee, together with
documents Of title evidencing he
transftr of tht ships frte from en-
cumbrance.
las an additional part of repara-
ton" the German government further
agrees to build merchant ships for
the account OF the allies to the
amount of not xeceeding 200 900 tons
gross annually during the next five
years.
All ships used for inland naviga.
ton taken by Germany from the al
lies are to be restored within two
months, the amount of loss not GOV.
cred by such restitution to be made
up by the cession OF the German rive!
feet up to 20 per cent thereof.
In order to effect payment by de-
liveries in kind, Germany is required
for number of years, varying in the
case of each. to deliver coal, coaI-tar
products, dyestuffs, and chemical
drugs, in specific amounts. to the
Reparation Committee. The commits
sion may modify the conditions OF
delivery, as not to interfere unduIy
with Germany's industrial require.
ments. The deliveries of coal are
based largely upon the principle OF
making good diminutions in the pro-
duotion OF the allied countries result.
ing from the war.
Capacity to Pay.
Devastated Areas. GERMANY under.
takes to devote her economic re
sources directly to the physical res.
toration of the invaded areas. The
Reparation Commission is authorized
to require Germany to replace the de.
strOyed articles by the delivery OF
animals. machinery, etc. existing in
Germany, and to manufacture ma
| terials required for reconstruction
purposes; all with due considerat iou
for Germany's essential domestic re-
quirements.
Germany is to restore within six
months the Koran OF the CaIiph
Gilman, formerly at Medina. to the
hing of the Hedjaz, and the skull OF
the Sultan Okwawa. formerly in Ger
man East Africa. to His Britannia
Majesty's Government.
The German government is also Il
restore to the French government Ger,
tain papers taken by the German au
| thorities in 1870, belonging then Il
NJ. RouhOr. and to restore the French
flags taken during the war of 1870
1871
Section q. FinanCe-PoYers I,
which German territory is ceded will
assume certain portion of the Ger
man pre-war debt. the amount to b,
| fixed by the reparation commission oil
revenue and of the coded territory AM
Germany's total revenues for the thre,
years preceding the war. In view
Z L