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The
Allied and Associated Governments affirm and Germany accepts the
responsibility of Germany and her allies for causing all the loss
and damage to which the Allied and Associated Governments and their
nationals have been subjected as a consequence of the war imposed
upon them by the aggression of Germany and her allies.
The
Allied and Associated Governments recognise that the resources of
Germany are not adequate, after taking into account permanent
diminutions of such resources which will result from other
provisions of the present Treaty, to make complete reparation for
all such loss and damage.
The
Allied and Associated Governments, however, require, and Germany
undertakes, that she will make compensation for all damage done to
the civilian population of the Allied and Associated Powers and to
their property during the period of the belligerency of each as an
Allied or Associated Power against Germany by such aggression by
land, by sea and from the air, and in general all damage as defined
in Annex l hereto.
In
accordance with Germany's pledges, already given, as to complete
restoration for Belgium, Germany undertakes, in addition to the
compensation for damage elsewhere in this Part provided for, as a
consequence of the violation of the Treaty of 1839, to make
reimbursement of all sums which Belgium has borrowed from the Allied
and Associated Governments up to November 11, 1918, together with
interest at the rate of five per cent (5%) per annum on such sums.
This amount shall be determined by the Reparation Commission, and
the German Government undertakes thereupon forthwith to make a
special issue of bearer bonds to an equivalent amount payable in
marks gold, on May 1, 1926, or, at the option of the German
Government, on the 1st of May in any year up to 1926. Subject to the
foregoing, the form of such bonds shall be determined by the
Reparation Commission. Such bonds shall be handed over to the
Reparation Commission, which has authority to take and acknowledge
receipt thereof on behalf of Belgium.
The
amount of the above damage for which compensation is to be made by
Germany shall be determined by an Inter-Allied Commission, to be
called the Reparation Commission and constituted in the form and
with the powers set forth hereunder and in Annexes II to VII
inclusive hereto.
This
Commission shall consider the claims and give to the German
Government a just opportunity to be heard.
The
findings of the Commission as to the amount of damage defined as
above shall be concluded and notified to the German Government on or
before May 1, 1921, as representing the extent of that Government's
obligations. ,
The
Commission shall concurrently draw up a schedule of payments
prescribing the time and manner for securing and discharging the
entire obligation within a period of thirty years from May 1, 1921.
If, however, within the period mentioned, Germany fails to discharge
her obligations, any balance remaining unpaid may, within the
discretion of the Commission, be postponed for settlement in
subsequent years, or may be handled otherwise in such manner as the
Allied and Associated Governments, acting in accordance with the
procedure laid down in this Part of the present Treaty, shall
determine.
The
Reparation Commission shall after May 1 , 1921, from time to time,
consider the resources and capacity of Germany, and, after giving
her representatives a just opportunity to be heard, shall have
discretion to extend the date, and to modify the form of payments,
such as are to be provided for in accordance with Article 233; but
not to cancel any part, except with the specific authority of the
several Governments represented upon the Commission.
In
order to enable the Allied and Associated Powers to proceed at once
to the restoration of their industrial and economic life, pending
the full determination of their claims, Germany shall pay in such
installments and in such manner (whether in gold, commodities,
ships, securities or otherwise) as the Reparation Commission may
fix, during 1919, 1920 and the first four months of 1921 , the
equivalent of 20,000,000,000 gold marks. Out of this sum the
expenses of the armies of occupation subsequent to the Armistice of
November 11, 1918, shall first be met, and such supplies of food and
raw materials as may be judged by the Governments of the Principal
Allied and Associated Powers to be essential to enable Germany to
meet her obligations for reparation may also, with the approval of
the said Governments, be paid for out of the above sum. The balance
shall be reckoned towards liquidation of the amounts due for
reparation. Germany shall further deposit bonds as prescribed in
paragraph 12 (c) Of Annex II hereto.
Germany
further agrees to the direct application of her economic resources
to reparation as specified in Annexes, III, IV, V, and VI, relating
respectively to merchant shipping, to physical restoration, to coal
and derivatives of coal, and to dyestuffs and other chemical
products; provided always that the value of the property transferred
and any services rendered by her under these Annexes, assessed in
the manner therein prescribed shall be credited to her towards
liquidation of her obligations under the above Articles.
The
successive installments, including the above sum, paid over by
Germany in satisfaction of the above claims will be divided by the
Allied and Associated Governments in proportions which have been
determined upon by them in advance on a basis of general equity and
of the rights of each.
For
the purposes of this division the value of property transferred and
services rendered under Article 243, and under Annexes III, IV, V,
VI, and VII, shall be reckoned in the same manner as cash payments
effected in that year.
In
addition to the payments mentioned above Germany shall effect, in
accordance with the procedure laid down by the Reparation
Commission, restitution in cash of cash taken away, seized or
sequestrated, and also restitution of animals, objects of every
nature and securities taken away, seized or sequestrated, in the
cases in which it proves possible to identify them in territory
belonging to Germany or her allies.
Until
this procedure is laid down, restitution will continue in accordance
with the provisions of the Armistice of November 11, 1918, and its
renewals and the Protocols thereto.
The
German Government undertakes to make forthwith the restitution
contemplated by Article 238 and to make the payments and deliveries
contemplated by Articles 233, 234, 235 and 236.
The
German Government recognises the Commission provided for by Article
233 as the same may be constituted by the Allied and Associated
Governments in accordance with Annex II, and agrees irrevocably to
the possession and exercise by such Commission of the power and
authority given to it under the present Treaty.
The
German Government will supply to the Commission all the information
which the Commission may require relative to the financial situation
and operations and to the property, productive capacity, and stocks
and current production of raw materials and manufactured articles of
Germany and her nationals, and further any information relative to
military operations which in the judgment of the Commission may be
necessary for the assessment of Germany's liability for reparation
as defined in Annex I.
The
German Government will accord to the members of the Commission and
its authorised agents the same rights and immunities as are enjoyed
in Germany by duly accredited diplomatic agents of friendly Powers.
Germany
further agrees to provide for the salaries and expenses of the
Commission and of such staff as it may employ.
Germany
undertakes to pass, issue and maintain in force any legislation,
orders and decrees that may be necessary to give complete effect to
these provisions.
The
provisions of this Part of the present Treaty do not apply to the
property, rights and interests referred to in Sections III and IV of
Part X (Economic Clauses) of the present Treaty, nor to the product
of their liquidation, except so far as concerns any final balance in
favour of Germany under Article 243 (a).
The
following shall be reckoned as credits to Germany in respect of her
reparation obligations:
(a)
Any final balance in favour of Germany under Section V
(Alsace-Lorraine) of Part III (Political Clauses for Europe) and
Sections III and IV of Part X (Economic Clauses) of the present
Treaty;
(b)
Amounts due to Germany in respect of transfers under Section IV (Saar
Basin) of Part III (Political Clauses for Europe), Part IX Financial
Clauses), and Part XII (Ports, Waterways and Railways);
(c)
Amounts which in the judgment of the Reparation Commission should be
credited to Germany on account of any other transfers under the
present Treaty of property, rights, concessions or other interests.
In
no case, however, shall credit be given for property restored in
accordance with Article 238 of the present Part.
The
transfer of the German submarine cables which do not form the
subject of particular provisions of the present Treaty is regulated
by Annex VII hereto.
Compensation
may be claimed from Germany under Article 232 above in respect of
the total damage under the following categories:
(l)
Damage to injured persons and to surviving dependents by personal
injury to or death of civilians caused by acts of war, including
bombardments or other attacks on land, on sea, or from the air, and
all the direct consequences thereof, and of all operations of war by
the two groups of belligerents wherever arising.
(2)
Damage caused by Germany or her allies to civilian victims of acts
of cruelty, violence or maltreatment (including injuries to life or
health as a consequence of imprisonment, deportation, internment or
evacuation, of exposure at sea or of being forced to labour),
wherever arising, and to the surviving dependents of such victims.
(3)
Damage caused by Germany or her allies in their own territory or in
occupied or invaded territory to civilian victims of all acts
injurious to health or capacity to work, or to honour, as well as to
the surviving dependents of such victims.
(4)
Damage caused by any kind of maltreatment of prisoners of war.
(5)
As damage caused to the peoples of the Allied and Associated Powers,
all pensions and compensation in the nature of pensions to naval and
military victims of war (including members of the air force),
whether mutilated, wounded, sick or invalided, and to the dependents
of such victims, the amount due to the Allied and Associated
Governments being calculated for each of them as being the
capitalised cost of such pensions and compensation at the date of
the coming into force of the present Treaty on the basis of the
scales in force in France at such date.
(6)
The cost of assistance by the Government of the Allied and
Associated Powers to prisoners of war and to their families and
dependents.
(7)
Allowances by the Governments of the Allied and Associated Powers to
the families and dependents of mobilised persons or persons serving
with the forces, the amount due to them for each calendar year in
which hostilities occurred being calculated for each Government on
the basis of the average scale for such payments in force in France
during that year.
(8)
Damage caused to civilians by being forced by Germany or her allies
to labour without just remuneration.
(9)
Damage in respect of all property wherever situated belonging to any
of the Allied or Associated States or their nationals, with the
exception of naval and military works or materials, which has been
carried off, seized, injured or destroyed by the acts of Germany or
her allies on land, on sea or from the air, or damage directly in
consequence of hostilities or of any operations of war.
(10)
Damage in the form of levies, fines and other similar exactions
imposed by Germany or her allies upon the civilian population.
1.
The Commission referred to in Article 233 shall be called "The
Reparation Commission" and is hereinafter referred to as
"the Commission".
2.
Delegates to this Commission shall be nominated by the United States
of America, Great Britain, France, Italy, Japan, Belgium and the
Serb-Croat-Slovene State. Each of these Powers will appoint one
Delegate and also one Assistant Delegate, who will take his place in
case of illness or necessary absence, but at other times will only
have the right to be present at proceedings without taking any part
therein.
On
no occasion shall the Delegates of more than five of the above
Powers have the right to take part in the proceedings of the
Commission and to record their votes. The Delegates of the United
States, Great Britain, France and Italy shall have this right on all
occasions. The Delegate of Belgium shall have this right on all
occasions other than those referred to below. The Delegate of Japan
shall have this right on occasions when questions relating to damage
at sea, and questions arising under Article 200 of Part IX
(Financial Clauses) in which Japanese interests are concerned, are
under consideration. The Delegate of the Serb-Croat-Slovene State
shall have this right when questions relating to Austria, Hungary or
Bulgaria are under consideration.
Each
Government represented on the Commission shall have the right to
withdraw therefrom upon twelve months, notice filed with the
Commission and confirmed in the course of the sixth month after the
date of the original notice.
3.
Such of the other Allied and Associated Powers as may be interested
shall have the right to appoint a Delegate to be present and act as
Assessor only while their respective claims and interests are under
examination or discussion, but without the right to vote.
4.
In case of the death, resignation or recall of any Delegate,
Assistant Delegate or Assessor, a successor to him shall be
nominated as soon as possible.
5.
The Commission will have its principal permanent Bureau in Paris and
will hold its first meeting in Paris as soon as practicable after
the coming into force of the present Treaty, and thereafter will
meet in such place or places and at such time as it may deem
convenient and as may be necessary for the most expeditious
discharge of its duties.
6.
At its first meeting the Commission shall elect, from among the
Delegates referred to above, a Chairman and a Vice-Chairman, who
shall hold office for one year and shall be eligible for
re-election. If a vacancy in the Chairmanship or Vice-Chairmanship
should occur during the annual period, the Commission shall proceed
to a new election for the remainder of the said period.
7.
The Commission is authorised to appoint all necessary officers,
agents and employees who may be required for the execution of its
functions, and to fix their remuneration; to constitute committees,
whose members need not necessarily be members of the Commission, and
to take all executive steps necessary for the purpose of discharging
its duties; and to delegate authority and discretion to officers,
agents and committees.
8.
All proceedings of the Commission shall be private, unless, on
particular occasions, the Con mission shall otherwise determine for
special reasons.
9.
The Commission shall be required, if the German Government so
desire, to hear, within a period which it will fix from time to
time, evidence and arguments on the part of Germany on any question
connected with her capacity to pay.
10.
The Commission shall consider the claims and give to the German
Government a just opportunity to be heard, but not to take any part
whatever in the decisions of the Commission The Commission shall
afford a similar opportunity to the allies of Germany, when it shall
consider that their interests are in question
11.
The Commission shall not be bound by any particular code or rules of
law or by any particular rule of evidence or of procedure, but shall
be guided by justice, equity and good faith. Its decisions must
follow the same principles and rules in all cases where they are
applicable. It will establish rules relating to methods of proof of
claims. It may act on any trustworthy modes of computation.
12.
The Commission shall have all the powers conferred upon it, and
shall exercise all the functions assigned to it, by the present
Treaty.
The
Commission shall in general have wide latitude as to its control and
handling of the whole reparation problem as dealt with in this Part
of the present Treaty and shall have authority to interpret its
provisions. Subject to the provisions of the present Treaty, the
Commission is constituted by the several Allied and Associated
Governments referred to in paragraphs 2 and 3 above as the exclusive
agency of the said Governments respectively for receiving, selling,
holding, and distributing the reparation payments to be made by
Germany under this Part of the present Treaty. The Commission must
comply with the following conditions and provisions:
(a)
Whatever part of the full amount of the proved claims is not paid in
gold, or in ships, securities and commodities or otherwise, Germany
shall be required, under such conditions as the Commission may
determine, to cover by way of guarantee by an equivalent issue of
bonds, obligations or otherwise, in order to constitute an
acknowledgment of the said part of the debt.
(b)
In periodically estimating Germany's capacity to pay, the Commission
shall examine the German system of taxation, first, 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 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 Powers represented on
the Commission.
(c)
In order to facilitate and continue the immediate restoration of the
economic life of the Allied and Associated countries, the Commission
will as provided in Article 235 take from Germany by way of security
for and acknowledgment of her debt a first installment of gold
bearer bonds free of all taxes and charges of every description
established or to be established by the Government of the German
Empire or of the German States, or by any authority subject to them;
these bonds will be delivered on account and in three portions, the
marks gold being payable in conformity with Article 262 of Part IX
(Financial Clauses) of the present Treaty as follows:
(1)
To be issued forthwith, 20,000,000,000 Marks gold bearer bonds,
payable not later than May l, 1921, without interest. There shall be
specially applied towards the amortisation of these bonds the
payments which Germany is pledged to make in conformity with Article
235, after deduction of the sums used for the reimbursement of
expenses of the armies of occupation and for payment of foodstuffs
and raw materials. Such bonds as have not been redeemed by May l,
1921, shall then be exchanged for new bonds of the same type as
those provided for below (paragraph l2, C, (2).
(2)
To be issued forthwith, further 40,000,000,000 Marks gold bearer
bonds, bearing interest at 2-1/2 per cent. per annum between 1921
and l926, and thereafter at 5 per cent. per annum with an additional
l per cent. for amortisation beginning in 1926 on the whole amount
of the issue.
(3)
To be delivered forthwith a covering undertaking in writing to issue
when, but not until, the Commission is satisfied that Germany can
meet such interest and sinking fund obligations, a further
installment of 40,000,000,000 Marks gold 5 per cent. bearer bonds,
the time and mode of payment of principal and interest to be
determined by the Commission.
The
dates for payment of interest, the manner of applying the
amortisation fund, and all other questions relating to the issue,
management and regulation of the bond issue shall be determined by
the Commission from time to time.
Further
issues by way of acknowledgment and security may be required as the
Commission subsequently determines from time to time.
(d)
In the event of bonds, obligations or other evidence of indebtedness
issued by Germany by way of security for or acknowledgment of her
reparation debt being disposed of outright, not by way of pledge, to
persons other than the several Governments in whose favour Germany's
original reparation indebtedness was created, an amount of such
reparation indebtedness shall be deemed to be extinguished
corresponding to the nominal value of the bonds, etc., so disposed
of outright, and the obligation of Germany in respect of such bonds
shall be confined to her liabilities to the holders of the bonds, as
expressed upon their face.
(e)
The damage for repairing, reconstructing and rebuilding property in
the invaded and devastated districts, including reinstallation of
furniture, machinery and other equipment, will be calculated
according to the cost at the dates when the work is done.
(f)
Decisions of the Commission relating to the total or partial
cancellation of the capital or interest of any verified debt of
Germany must be accompanied by a statement of its reasons.
13.
As to voting, the Commission will observe the following rules:
When
a decision of the Commission is taken, the votes of all the
Delegates entitled to vote, or in the absence of any of them, of
their Assistant Delegates, shall be recorded. Abstention from voting
is to be treated as a vote against the proposal under discussion.
Assessors have no vote.
On
the following questions unanimity is necessary:
(a)
Questions involving the sovereignty of any of the Allied and
Associated Powers, or the cancellation of the whole or any part of
the debt or obligations of Germany;
(b)
Questions of determining the amount and conditions of bonds or other
obligations to be issued by the German Government and of fixing the
time and manner for selling, negotiating or distributing such bonds;
(c)
Any postponement, total or partial, beyond the end of 1930, of the
payment of installments falling due between May 1, 1921, and the end
of 1926 inclusive;
(d)
Any postponement, total or partial, of any installment falling due
after 1926 for a period exceeding three years;
(e)
Questions of applying in any particular case a method of measuring
damages different from that which has been previously applied in a
similar case;
(f)
Questions of the interpretation of the provisions of this Part of
the present Treaty.
All
other questions shall be decided by the vote of a majority.
In
case of any difference of opinion among the Delegates, which cannot
be solved by reference to their Governments, upon the question
whether a given case is one which requires a unanimous vote for its
decision or not, such difference shall be referred to the immediate
arbitration of some impartial person to be agreed upon by their
Governments, whose award the Allied and Associated Governments agree
to accept.
14.
Decisions of the Commission, in accordance with the powers conferred
upon it, shall forthwith become binding and may be put into
immediate execution without further Proceedings.
15.
The Commission will issue to each of the interested Powers, in such
form as the Commission shall fix:
(l)
A certificate stating that it holds for the account of the said
Power bonds of the issues mentioned above, the said certificate, on
the demand of the Power concerned, being divisible in a number of
parts not exceeding five;
(2)
From time to time certificates stating the goods delivered by
Germany on account of her reparation debt which it holds for the
account of the said Power.
The
said certificates shall be registered, and upon notice to the
Commission, may be transferred by endorsement.
When
bonds are issued for sale or negotiation, and when goods are
delivered by the Commission, certificates to an equivalent value
must be withdrawn.
16.
Interest shall be debited to Germany as from May 1, 1921, in respect
of her debt as determined by the Commission, after allowing for sums
already covered by cash payments or their equivalent, or by bonds
issued to the Commission, or under Article 243. The rate of interest
shall be 5 per cent. unless the Commission shall determine at some
future time that circumstances justify a variation of the rate.
The
Commission, in fixing on May 1, 1921, the total amount of the debt
of Germany, may take account of interest due on sums arising out of
the reparation of material damage as from November 11, 1918, up to
May 1, 1921.
17.
In case of default by Germany in the performance of any obligation
under this Part of the present Treaty, the Commission will forthwith
give notice of such default to each of the interested Powers and may
make such recommendations as to the action to be taken in
consequence of such default as it may think necessary.
18.
The measures which the Allied and Associated Powers shall have the
right to take, in case of voluntary default by Germany, and which
Germany 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.
19.
Payments required to be made in gold or its equivalent on account of
the proved claims of the Allied and Associated Powers may at any
time be accepted by the Commission in the form of chattels,
properties, commodities, businesses, rights, concessions within or
without German territory, ships, bonds, shares or securities of any
kind, or currencies of Germany or other States, the value of such
substitutes for good being fixed at a fair and just amount by the
Commission itself.
20.
The Commission, in fixing or accepting payment in specified
properties or rights, shall have due regard for any legal or
equitable interests of the Allied and Associated Powers or of
neutral Powers or of their nationals therein.
21.
No member of the Commission shall be responsible, except to the
Government appointing him, for any action or omission as such
member. No one of the Allied or Associated Governments assumes any
responsibility in respect of any other Government.
22.
Subject to the provisions of the present Treaty this Annex may be
amended by the unanimous decision of the Governments represented
from time to time upon the Commission.
23.
When all the amounts due from Germany and her allies under the
present Treaty or the decisions of the Commission have been
discharged and all sums received, or their equivalents, shall have
been distributed to the Powers interested, the Commission shall be
dissolved.
1.
Germany recognises the right of the Allied and Associated Powers to
the replacement, ton for ton (gross tonnage) and class for class, of
all merchant ships and fishing boats lost or damaged owing to the
war.
Nevertheless,
and in spite of the fact that the tonnage of German shipping at
present in existence is much less than that lost by the Allied and
Associated Powers in consequence of the German aggression, the right
thus recognised will be enforced on German ships and boats under the
following conditions:
The
German Government, on behalf of themselves and so as to bind all
other persons interested, cede to the Allied and Associated
Governments the property in all the German merchant ships which are
of 1,600 tons gross and upwards; in one-half, reckoned in tonnage,
of the ships which are between 1,000 tons and 1,600 tons gross; in
one-quarter, reckoned in tonnage, of the steam trawlers; and in
one-quarter, reckoned in tonnage, of the other fishing boats.
2.
The German Government will, within two months of the coming into
force of the present Treaty, deliver to the Reparation Commission
all the ships and boats mentioned in paragraph 1.
3.
The ships and boats mentioned in paragraph 1 include all ships and
boats which (a) fly, or may be entitled to fly, the German merchant
flag; or (b) are owned by any German national, company or
corporation or by any company or corporation belonging to a country
other than an Allied or Associated country and under the control or
direction of German nationals; or (c) are now under construction (1)
in Germany, (2) in other than Allied or Associated countries for the
account of any German national, company or corporation.
4.
For the purpose of providing documents of title for the ships and
boats to be handed over as above mentioned, the German Government
will:
(a)
Deliver to the Reparation Commission in respect of each vessel a
bill of sale or other document of title evidencing the transfer to
the Commission of the entire property in the vessel free from all
encumbrances, charges and liens of all kinds, as the Commission may
require;
(b)
Take all measures that may be indicated by the Reparation Commission
for ensuring that the ships themselves shall be placed at its
disposal.
5.
As an additional part of reparation, Germany agrees to cause
merchant ships to be built in German yards for the account of the
Allied and Associated Governments as follows:
(a)
Within three months of the coming into force of the present Treaty,
the Reparation Commission will notify to the German Government the
amount of tonnage to be laid down in German ship-yards in each of
the two years next succeeding the three months mentioned above.
(b)
Within two years of the coming into force of the present Treaty, the
Reparation Commission will notify to the German Government the
amount of tonnage to be laid down in each of the three years
following the two years mentioned above.
(c)
The amount of tonnage to be laid down in each year shall not exceed
200,000 tons, gross tonnage.
(d)
The specifications of the ships to be built, the conditions under
which they are to be built and delivered, the price per ton at which
they are to be accounted for by the Reparation Commission, and all
other questions relating to the accounting ordering, building and
delivery of the ships, shall be determined by the Commission.
6.
Germany undertakes to restore in kind and in normal condition of
upkeep to the Allied and Associated Powers, within two months of the
coming into force of the present Treaty, in accordance with
procedure to be laid down by the Reparation Commission, any boats
and other movable appliances belonging to inland navigation which
since August 1, 1914, have by any means whatever come into her
possession or into the possession of her nationals, and which can be
identified
With
a view to make good the loss in inland navigation tonnage from
whatever cause arising, which has been incurred during the war by
the Allied and Associated Powers, and which cannot be made good by
means of the restitution prescribed above, Germany agrees to cede to
the Reparation Commission a portion of the German river fleet up to
the amount of the loss mentioned above, provided that such cession
shall not exceed 20 per cent. of the river fleet as it existed on
November 11, 1918.
The
conditions of this cession shall be settled by the arbitrators
referred to in Article 339 of Part XII (Ports, Waterways and
Railways) of the present Treaty, who are charged with the settlement
of difficulties relating to the apportionment of river tonnage
resulting from the new international regime applicable to certain
river systems or from the territorial changes affecting those
systems.
7.
Germany agrees to take any measures that may be indicated to her by
the Reparation Commission for obtaining the full title to the
property in all ships which have during the war been transferred, or
are in process of transfer, to neutral flags, without the consent of
the Allied and Associated Governments.
8.
Germany waives all claims of any description against the Allied and
Associated Governments and their nationals in respect of the
detention, employment, loss or damage of any German ships or boats,
exception being made of payments due in respect of the employment of
ships in conformity with the Armistice Agreement of January 13,
1919, and subsequent Agreements.
The
handing over of the ships of the German mercantile marine must be
continued without interruption in accordance with the said
Agreement.
9.
Germany waives all claims to vessels or cargoes sunk by or in
consequence of naval action and subsequently salved, in which any of
the Allied or Associated Governments or their nationals may have any
interest either as owners, charterers, insurers or otherwise,
notwithstanding any decree of condemnation which may have been made
by a Prize Court of Germany or of her allies.
1.
The Allied and Associated Powers require, and Germany undertakes,
that in part satisfaction of her obligations expressed in the
present Part she will, as hereinafter provided, devote her economic
resources directly to the physical restoration of the invaded areas
of the Allied and Associated Powers, to the extent that these Powers
may determine.
2.
The Allied and Associated Governments may file with the Reparation
Commission lists showing:
(a)
Animals, machinery, equipment, tools and like articles of a
commercial character, which have been seized, consumed or destroyed
by Germany or destroyed in direct consequence of military
operations, and which such Governments, for the purpose of meeting
immediate and urgent needs, desire to have replaced by animals and
articles of the same nature which are in being in German territory
at the date of the coming into force of the present Treaty;
(b)
Reconstruction materials (stones, bricks, refractory bricks, tiles,
wood, window-glass, steel, lime, cement, etc.), machinery, heating
apparatus, furniture and like articles of a commercial character
which the said Governments desire to have produced and manufactured
in Germany and delivered to them to permit of the restoration of the
invaded areas.
3.
The lists relating to the articles mentioned in 2 (a) above shall be
filed within sixty days after the date of the coming into force of
the present Treaty.
The
lists relating to the articles in 2 (b) above shall be filed on or
before December 31, 1919.
The
lists shall contain all such details as are customary in commercial
contracts dealing with the subject matter, including specifications,
dates of delivery (but not extending over more than four years), and
places of delivery, but not price or value, which shall be fixed as
hereinafter provided by the Commission.
4.
Immediately upon the filing of such lists with the Commission, the
Commission shall consider the amount and number of the materials and
animals mentioned in the lists provided for above which are to be
required of Germany. In reaching a decision on this matter the
Commission shall take into account such domestic requirements of
Germany as it deems essential for the maintenance of Germany's
social and economic life, the prices and dates at which similar
articles can be obtained in the Allied and Associated countries as
compared with those to be fixed for German articles, and the general
interest of the Allied and Associated Governments that the
industrial life of Germany be not so disorganised as to affect
adversely the ability of Germany to perform the other acts of
reparation stipulated for.
Machinery,
equipment, tools and like articles of a commercial character in
actual industrial use are not, however, to be demanded of Germany
unless there is no free stock of such articles respectively which is
not in use and is available, and then not m excess of thirty per
cent. of the quantity of such articles in use in any one
establishment or undertaking.
The
Commission shall give representatives of the German Government an
opportunity and a time to be heard as to their capacity to furnish
the said materials, articles and animals.
The
decision of the Commission shall thereupon and at the earliest
possible moment be communicated to the German Government and to the
several interested Allied and Associated Governments.
The
German Government undertakes to deliver the materials, articles and
animals as specified in the said communication, and the interested
Allied and Associated Governments severally agree to accept the
same, provided they conform to the specification given, or are not,
in the judgment of the Commission, unfit to be utilised in the work
of reparation.
5.
The Commission shall determine the value to be attributed to the
materials, articles and animals to be delivered in accordance with
the foregoing, and the Allied or Associated Power receiving the same
agrees to be charged with such value, and the amount thereof shall
be treated as a payment by Germany to be divided in accordance with
Article 237 of this Part of the present Treaty.
In
cases where the right to require physical restoration as above
provided is exercised, the Commission shall ensure that the amount
to be credited against the reparation obligation of Germany shall be
the fair value of work done or materials supplied by Germany, and
that the claim made by the interested Power in respect of the damage
so repaired by physical restoration shall be discharged to the
extent of the proportion which the damage thus repaired bears to the
whole of the damage thus claimed for.
6.
As an immediate advance on account of the animals referred to in
paragraph 2 (a) above, Germany undertakes to deliver in equal
monthly installments in the three months following the coming into
force of the present Treaty the following quantities of live stock:
(1)
To the French Government.
500
stallions (3 to 7 years);
30,000
fillies and mares (18 months to 7 years), type: Ardennais,
Boulonnais or Belgian;
2,000
bulls (18 months to 3 years);
90,000
milch cows (2 to 6 years);
1,000
rams;
100,000
sheep;
10,000
goats.
(2)
To the Belgian Government.
200
stallions (3 to 7 years), large Belgian type;
5,000
mares (3 to 7 years), large Belgian type;
5,000
fillies (18 months to 3 years), large Belgian type;
2,000
bulls (18 months to 3 years);
50,000
milch cows (2 to 6 years);
40,000
heifers;
200
rams;
20,000
Sheep;
15,000
sows.
The
animals delivered shall be of average health and condition.
To
the extent that animals so delivered cannot be identified as animals
taken away or seized, the value of such animals shall be credited
against the reparation obligations of Germany in accordance with
paragraph 5 of this Annex.
7.
Without waiting for the decisions of the Commission referred to in
paragraph 4 of this Annex to be taken, Germany must continue the
delivery to France of the agricultural material referred to in
Article III of the renewal dated January 16, 1919, of the Armistice.
1.
Germany accords the following options for the delivery of coal and
derivatives of coal to the undermentioned signatories of the present
Treaty.
2.
Germany undertakes to deliver to France seven million tons of coal
per year for ten years. In addition, Germany undertakes to deliver
to France annually for a period not exceeding ten years an amount of
coal equal to the difference between the annual production before
the war of the coal mines of the Nord and Pas de Calais, destroyed
as a result of the war, and the production of the mines of the same
area during the years in question: such delivery not to exceed
twenty million tons in any one year of the first five years, and
eight million tons in any one year of the succeeding five years.
It
is understood that due diligence will be exercised in the
restoration of the destroyed mines in the Nord and the Pas de
Calais.
3.
Germany undertakes to deliver to Belgium eight million tons of coal
annually for ten years.
4.
Germany undertakes to deliver to Italy up to the following .
quantities of coal:
July
1919 to June 1920 4-1/2 million tons, 1920 1921 6
1921 1922 7-1/2 1922
1923 8 1923 1924 and
each of the following five years 8-1/2
At
least two-thirds of the actual deliveries to be land-borne.
5.
Germany further undertakes to deliver annually to Luxemburg, if
directed by the Reparation Commission, a quantity of coal equal to
the pre-war annual consumption of German coal in Luxemburg.
6.
The prices to be paid for
coal delivered under these options shall be as follows:
(a)
For overland delivery, including delivery by barge, the German
pithead price to German nationals, plus the freight to French,
Belgian, Italian or Luxemburg frontiers, provided that the pithead
price does not exceed the pithead price of British coal for export.
In the case of Belgian bunker coal, the price shall not exceed the
Dutch bunker price.
Railroad
and barge tariffs shall not be higher than the lowest similar rates
paid in Germany.
(b)
For sea delivery, the German export price f. o. b. German ports, or
the British export price f. o. b. British ports, whichever may be
lower.
7.
The Allied and Associated Governments interested may demand the
delivery, in place of coal, of metallurgical coke in the proportion
of 3 tons of coke to 4 tons of coal.
8.
Germany undertakes to
deliver to France, and to transport to the French frontier by rail
or by water, the following products, during each of the three years
following the coming into force of this Treaty:
Benzol
35,000 tons.
Coal
tar 50,000 tons
Sulphate
of ammonia 30,000 tons.
All
or part of the coal tar may, at the option of the French Government,
be replaced by corresponding quantities of products of distillation,
such as light oils, heavy oils, anthracene, napthalene or pitch
9.
The price paid for coke and for the articles referred to in the
preceding paragraph shall be the same as the price paid by German
nationals under the same conditions of shipment to the French
frontier or to the German ports, and shall be subject to any
advantages which may be accorded similar products furnished to
German nationals.
10.
The foregoing options shall be exercised through the intervention of
the Reparation Commission, which, subject to the specific provisions
hereof, shall have power to determine all questions relative to
procedure and the qualities and quantities of products, the quantity
of coke which may be substituted for coal, and the times and modes
of delivery and payment. In giving notice to the German Government
of the foregoing options the Commission shall give at least 120
days, notice of deliveries to be made after January 1, 1920, and at
least 30 days, notice of deliveries to be made between the coming
into force of this Treaty and January 1, 1920. Until Germany has
received the demands referred to in this paragraph, the provisions
of the Protocol of DecemberК25, 1918, (Execution of Article VI
of the Armistice of November 11, 1918) remain in force. The notice
to be given to the German Government of the exercise of the right of
substitution accorded by paragraphs 7 and 8 shall be such as the
Reparation Commission may consider sufficient. If the Commission
shall determine that the full exercise of the foregoing options
would interfere unduly with the industrial requirements of Germany,
the Commission is authorised to postpone or to cancel deliveries,
and in so doing to settle all questions of priority; but the coal to
replace coal from destroyed mines shall receive priority over other
deliveries.
1.
Germany accords to the Reparation Commission an option to require as
part of reparation the delivery by Germany of such quantities and
kinds of dyestuffs and chemical drugs as the Commission may
designate, not exceeding 50 per cent. of the total stock of each and
every kind of dyestuff and chemical drug in Germany or under German
control at the date of the coming into force of the present Treaty.
This
option shall be exercised within sixty days of the receipt by the
Commission of such particulars as to stocks as may be considered
necessary by the Commission.
2.
Germany further accords to the Reparation Commission an option to
require delivery during the period from the date of the coming into
force of the present Treaty until January 1, 1920, and during each
period of six months thereafter until January 1 , 1925, of any
specified kind of dyestuff and chemical drug up to an amount not
exceeding 25 per cent. of the German production of such dyestuffs
and chemical drugs during the previous six months period. If in any
case the production during such previous six months was, in the
opinion of the Commission, less than normal, the amount required may
be 25 per cent. of the normal production.
Such
option shall be exercised within four weeks after the receipt of
such particulars as to production and in such form as may be
considered necessary by the Commission; these particulars shall be
furnished by the German Government immediately after the expiration
of each six months period.
3.
For dyestuffs and chemical drugs delivered under paragraph 1 , the
price shall be fixed by the Commission having regard to prewar net
export prices and to subsequent increases of cost.
For
dyestuffs and chemical drugs delivered under paragraph 2, the price
shall be fixed by the Commission having regard to pre-war net export
prices and subsequent variations of cost, or the lowest net selling
price of similar dyestuffs and chemical drugs to any other
purchaser.
[See
Map The Former German Cables]
4.
All details, including mode and times of exercising the options, and
making delivery, and all other questions arising under this
arrangement shall be determined by the Reparation Commission; the
German Government will furnish to the Commission all necessary
information and other assistance which it may require.
5.
The above expression ,,dyestuffs and chemical drugs,, includes all
synthetic dyes and drugs and intermediate or other products used in
connection with dyeing, so far as they are manufactured for sale.
The present arrangement shall also apply to cinchona bark and salts
of quinine.
Germany
renounces on her own behalf and on behalf of her nationals in favour
of the Principal Allied and Associated Powers all rights, titles or
privileges of whatever nature in the submarine cables set out below,
or in any portions thereof:
Emden-vigo:
from the Straits of Dover to off vigo; Emden-Brest: from off
Cherbourg to Brest; Emden-Teneriffe: from off Dunkirk to off
Teneriffe; Emden-Azores (1): from the Straits of Dover to Fayal;
Emden-Azores (2): from the Straits of Dover to Fayal; Azores-New
York (1): from Fayal to New York; Azores-New York (2): from Fayal to
the longitude of Halifax, Teneriffe-Monrovia: from off Teneriffe to
off Monrovia; Monrovia-Lome:
from
about lat. :2° 30' N.; long.:7° 40' W. of Greenwich: to about lat.
:2° 20' N.; long.:5° 30, W. of Greenwich; and from about lat. :3°
48' N.; long.:0° 00', to Lome;
Lome-Duala:
from Lome to Duala; Monrovia-Pernambuco: from off Monrovia to off
Pernambuco; Constantinople-Constanza: from Constantinople to
Constanza; Yap-Shanghai, Yap-Guam, and Yap-Menado (Celebes): from
Yap Island to Shanghai, from Yap Island to Guam Island, and from Yap
Island to Menado.
The
value of the above mentioned cables or portions thereof in so far as
they are privately owned, calculated on the basis of the original
cost less a suitable allowance for depreciation, shall be credited
to Germany in the reparation account.
Within
six months after the coming into force of the present Treaty the
German Government must restore to the French Government the
trophies, archives, historical souvenirs or works of art carried
away from France by the German authorities in the course of the war
of 1870-1871 and during this last war, in accordance with a list
which will be communicated to it by the French Government;
particularly the French flags taken in the course of the war of
1870-1871 and all the political papers taken by the German
authorities on October 1o, 1870, at the chateau of Cercay, near
Brunoy (Seine-et-Oise) belonging at the time to Mr. Rouher, formerly
Minister of State.
Within
six months from the coming into force of the present Treaty, Germany
will restore to His Majesty the King of the Hedjaz the original
Koran of the Caliph Othman, which was removed from Medina by the
Turkish authorities and is stated to have been presented to the
ex-Emperor William II.
Within
the same period Germany will hand over to His Britannic Majesty's
Government the skull of the Sultan Mkwawa which was removed from the
Protectorate of German East Africa and taken to Germany.
The
delivery of the articles above referred to will be effected in such
place and in such conditions as may be laid down by the Governments
to which they are to be restored.
Germany
undertakes to furnish to the University of Louvain, within three
months after a request made by it and transmitted through the
intervention of the Reparation Commission, manuscripts, incunabula,
printed books, maps and objects of collection corresponding in
number and value to those destroyed in the burning by Germany of the
Library of Louvain. All details regarding such replacement will be
determined by the Reparation Commission.
Germany
undertakes to deliver to Belgium, through the Reparation Commission,
within six months of the coming into force of the present Treaty, in
order to enable Belgium to reconstitute two great artistic works:
(1)
The leaves of the triptych of the Mystic Lamb painted by the Van
Eyck brothers, formerly in the Church of St. Bavon at Ghent, now in
the Berlin Museum;
(2)
The leaves of the triptych of the Last Supper, painted by Dierick
Bouts, formerly in the Church of St. Peter at Louvain, two of which
are now in the Berlin Museum and two in the Old Pinakothek at
Munich.
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