Evening star., 1932-07-09
Text of Lausanne Pact
Terms of Agreements Reached by Conferees End
Rebarations Problems and Settle Germdny's
Final Payment at $712, 100000.

B. l. S. have not been able to negotiate
shall be Cancelled.
90 After the above period of three
years the B. l. S. shall negotiate the
bonds by means of public issues on
the market as and when possible, IN
such amounts as it thinks fit, provided
that no issue shall be made at rate
below 90 per cent The German gov
ernment shall have the right at any
time to redeem at par, in whole or in
part, the bonds not yet issued by the
B. I. S. In determining the terms of
issue of the bonds, the B. l. S. shall
take into account the desirability of CIV
ing the German government the right
to redeem the bonds after reasonable
period.
a. The bonds shall carry interest
at 5 per cent and sinking fund at l per
cent as from the date on which they
are negotiated They shall be free Of
all German taxes, present and future.
(5) The proceeds of the bonds, as
and when issued, shall be placed to
special account, the ALLEGATION Of which
shall be settled by a further agreement
in due course between the governments,
other than Germany, signatory to the
present agreement
(6) If any foreign loan is issued by
the German government, or with its
guaranty, at any time after the coming
into force of the present agreement,
the German government shall offer to
apply up to the equivalent of one-thlrd
of the net cash proceeds of the loan
raised to the purchase of bonds held
by the B. l. S. The purchase price
shall be such that the net yield of the
bonds SO purchased would be the same
as the net yield of the loan so raised.
This paragraph does not refer to loans
for period of not more than II
months.
Cd If, after the expiry of five years
from the signature of the present
agreement, the B. 1. S. considers that
the credit of the German government
Is restored but the quotation OF its
loans remains none the less below the
minimum price of issue fixed under
paragraph 80 above, the minimum
price may be varied by decision OF the
board Of the B. l. s., which decision
shall require a two-thirds majority.
Further, at the request OF the German
government the rate Of interest may be
reduced below per cent If issue has
been made at par.
(8) The B. I. S. shall have power to
settle all questions as to the currency
and denomination of bond issues and
also all questions as to charges and
costs of issue, which it shall have the
right to deduct from the proceeds OF
the issue. In conclusion, in questions
relating to the issue of bonds the board
of the B. I. S. shall take the advice OF
the president of the Reichsbank, but
decisions may be made by majority
vote.
(9) The text of the bonds will be
settled by agreement between the Ger
man government and the B. l. S.
Article 2.
On its coming into force the present
agreement will terminate and be SUD-
stituted for the reparation regime pro-
vided for in the agreement with Ger
many signed at The Hague on January
20, $780, and the agreements signed IN
London on August 10, 1880, and at Ber-
lin on June 6, 1882. The obligations
resulting from the present agreement
will completely replace the former OBJ
legations of Germany comprised in the
annuities of the new plan
Article 3.
Consequently articles /, 2, 4. 5. 7, 8
and 9, and annexes /, 3, and 5A, 6,
ga. 7, 10 and 10A of the said agree
ment with Germany are definitely
abrogated.
Article 4.
The protocol signed at London on
August IL, 1881, and the protocol sup
Elementary thereof signed at Berlin
on June 6, 1882, are abrogated. Con-
seuuently the provisional receipts hand
ed to the Bank for international Set
Elements by the German Railway Co.
under the said protocol of August IL,
1891 will be returned to 1t,
Article S.
The certificate of the German gov
eminent and the certificate of the Ger
man Railway Co. referred to in article
8, annexes and 4, of The Hague agree
ment shall with the coupons attached
be returned to the German govern
ment and the German Railway Co., re-
spectively.
Article 6.
Nothing in the present agreement
alters or affects article 3 liquidation
of the past), article $50 far as con-
Germs the corporate existence Of the
Bank for International Settlements) or
article 10 (immunities of the Bank for
International Settlements) Of The
Hague agreement.
Article Z.
(A) The signatory governments de-
clare that nothing in the present agree
ment diminishes, varies, or shall be
deemed to diminish or vary, the right
of the bondholders Of the German eX-
ternal loan of 1924 or the German
government international 51a per cent
loan of 1880.
(B) The necessary adaptation Of the
machinery relating to the manner n
which the obligation of the German
government, with respect to the Ger
man external loan Of 1924, and with
respect to the German government in
ternational 5I2 per cent loan of 1880,
will be discharged, will be subject to
mutual arrangement, on the one hand,
and the Bank for International Set
Elements the fiscal agent of the trustees
of the German external loan of 1924,
and the trustee of the German govern
ment 5la per cent loan of 1880. on the
other hand.
Article 8.
The present agreement will, on its
coming into force be notified by the
government of the French Republic to
the Bank for International Settlements
with view to the application by the
bank OF its provisions. The said gov
eminent also will notify the bank for
the purpose of those states that the
new plan" is no longer in effect.
Article 8.
Any disputes, whether between the
governments Signatories to the present
agreement, or between one or more of
those governments and the Bank for
International Settlements, as to the in
depreciation or application of this agree
ment, shall be referred to the arbitra-
ton tribunal set up under article Is
OF The Hague agreement with Germany.
The relative provisions Of that article
and OF annex II Of the said agreement
viii for this purpose be applicable.
Article 10.
The present agreement, of which the
English and French texts are both au-
thentic. shall be ratified and the ratif-
cations shall be deposited at Paris. The
governments whose seat is outside
L