Evening star., 1923-05-26
PAYMENT IN IL YEARS.
Details of Agreement on Army
Cost Payment Announced.

By the Associated Press.
PARIS. May 26.-The agreement on
the Rhine army of occupation con-
troversy, which has taken tnree
months to negotiate. does not include
the clause to which the United states
delegate. Eliot Wadsworth. objected,
namely, that the allies should nave
the right to abrogate the agreement
in case the United States sought 10
recover war damages direct from
Germany. The agreement as signed
may be summarized as follows:
The net cost of the army of oc-
cupation. about $250,0OO.OOO. is to be
paid in twelve equal annual install :
ments, without interest, the hrst OIL
which shall be due on or before sep
tember 81, 1928.
For the first four years the an
nuaT inStalments due the Chlteu
States shall constitute first charge
upon all payments in cash naue eaSt
of GERMANY up to 20 per cent OF such
payments.
Allies Have Priority.
During. each of the first four years
the current cost of the allied armies
Of occupation shall have priority
over the annual lnstallhehts uue the
United States.
For the last eight years the in
sediments due the United States shall
constitute first charge upon all cash
payments made by Germany on ac-
count of reparations UP to their full
amount. and shall have priority over
the current costs of the allied armies
of occupation.
1t should be understood that the
priority granted the United States
does not bear upon payments in
kind. upon the proceeds of acts of
sions of property, rights and in
terests made in execution of the
treaty of Versailles, unless such
transfers are converted through sales
into cash. However, the allies agree
to apply all such payments in kind,
etc, to their current army, costs, so
that, unless the value of these pay
ments is insufficient to meet such
costs. all actual cash payments from
Germany will be available for the
installments due the United States.
May Charge Interest.
In case there is not sufficient cash
available to 1iquidate fully the an
nual instalments of the first four
years. the deficit is to be carried over
to the last eight years. one-eighth of
such deficit being added to the in
stalment due in each of the last eight
years. During these eight years,
should any deficit in the annual in
staiments develop because of INSULT
cient available cash, then such deficit
is to be carried forward with simple
! interest at Az per cent and be liqui-
dated from the first cash available in
the following year over and above the
amount required to pay the annual
instalment for that year.
The agreement provides that if at
! any time the arrears due the United
States reach a total such that the
; United States considers there is a
| risk of it's not being paid within the
| prescribed period the American gov
| ernment has the right to abrogate the
Iagreement, provided that, within three
months after notification of such a
view, the agreement has not been
| modified in such way that complete
| liquidation appears assured.
1t is understood that should the
United States at any time. arrange to
| receive German dyestuffs through the
reparation commission the value of
these dyestuffs received in any one
year shall be deducted from the an
| nual installment due the United States
in that year.
In negotiating the agreement the
governments concerned voluntarily
avoided any question of the rights of
interpretation.