Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1919-05-08
ton allowances, capitalized at the
signature Of this treaty.

IlOA dllOWdACCo, CdplIdlIZeQ at the
signature Of this treaty.
"(e) Damages to property other
IAN naval or military material.
"f) Damages 10 civilians by being
forced to labor.
"(g) Damages in the form Of levies
or fines imposed by the enemy.
Germany further binds herself to
repay all sums borrowed by Belgium
from her allies as a result Of Ger
many's violations of the treaty Ct
1889 up to November II, 1918, for this
purpose will issue at one and hand
over to the reparation committee
five per cent gold bonds falling due
in 1925. The total obligations of
Germany to pay as defined in the
category of damages is to be deter
mined and notified to her after a
fair hearing not later than May /,
1921, by an inter-allied PREPARATION
commission.
AT the same time a schedule Of
payments to discharge the obliga-
lions within thirty years shall be
presented. These payments are sub
ject to postponement in certain con-
tingenc.es. Germany irrevocably
recognizes the full authority of this
commission, agrees to supply it with
all the necessary information and to
pass legislation to effectuate it's
findings. She further agrees to re-
store to the Allies cash and certain
articles which can be identified. AS
an immediate step towards restora-
ton Germany shall pay within two
years one thousand million pounds
sterling in either gold, goods, ships
or other specific forms of payment
This sum being included in and not
additional to first thousand million
bond issue referred to below, with
the understanding that certain ex-
penses, such as those of the armies
Of occupation and payments for food
and raw materials. may he deduct
ed at the discretion Of the Allies.
"In periodically estimating Ger
manys capacity to pay the repara-
ton commission shall examine TIE
German system of taxation to the
end that the sums for reparation
which Germany is required to pay
shall become a 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 proper
tionally as that of any Of the powers
represented on the commission.
1.-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 finan-
cial prohibitions and reprisals and in
general such other measures as the
respective governments may deter
mine to be necessary under the cir
cumstances."
The commission shall consist of one
representative each of the United
States, Great Britain France, Italy
and Belgium. representative of
Serbia or Japan taking the place of
the Belgian representative when the
interest of either country are partic-
ularly affected with all other allied
powers entitled, when their claims
are under consideration. to the right
of representation without voting pow
err 1t shall permit Germany to give
evidence regarding her capacity to
pay and shall assure a just oppor-
tunity to be heard.
ut shall make it's headquarters at
Paris; establish its own procedure
and personnel, have general control
Of the whole reparation problem, and
become the exclusive agency of the
allies for receiving. heading, selling
o'-1 distribution Of reparations pay
lrents. Majority votes 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, dis
tributing and negotiating bonds is
sued by Germany, any postponement
between 1921 and 1926 Of annual pay
ments beyond 1890 and any post
ponement after 1926 for period of
more than three years on the appli-
cation of different method of meas
uring damages than in a similar for
mer case and the Interpretation of
provisions.
"Withdra wal from representation on
the commission is permitted upon II
months notice. The commission may
require Germany to give from time to
time. by way Of guarantee, issues Of
bonds or other obligations to cover
such claims as are not otherwise sat
isfactorily adjusted. Ir this connection
and on account Of the total amount Of
the claims, bond issues are presentely
to be required of Germany in acknowl-
edgment of it's debt as follows:
One thousand million pounds sterling.
payable not later than May I, 1921. with
cut interest; two thousand million
pounds sterling bearing 2 per cent. in
terest between 1921 and 1926. and there
after per cent with a l per cent. sink
ing fund payment beginning in 1926, and
an undertaking to deliver bonds to an
additional amount of two thousand mill
lion pounds sterling bearing interest at
2 per cent.
"Under terms to be fixed by the COM
mission interest on Germany's debt will
be per cent. unless otherwise deter
mined by the commission in the future
and payments that are not made in
gold may be accepted by the commits
zion in the form of properties. commod-
tiles, businesses. rights, concessions.
etc. Certificates Of beneficial interest,
representing either bonds Of goods de-
livered by Germany. may be issues by