TREATY OF VERSAILIES

Dominion, Volume 12, Issue 193, 10 May 1919, Page 7

TREATY OF VERSAILIES

FINAL SECTIONS

ECONOMIC AND FINANCIAL PROVISIONS

PRESS AND PUBLIC OPINION

By Telegraph—Press Association—Copyright ■ ' ■ (Australian-New Zealand Cable Association-Reuter.) London, May 7. The following is'the balance of the official summary of the Peace Treaty. Certain corrections and substitutions having, been made in the cabled portion of tho Treaty covering Section 8, we repeat to-day the text of this particular section as amended: ...... SECTION B—REPARATION AND RESTORATION The Allied and Associated Governments affirm, and Germany accepts, the responsibility of herself and her allies for causing all the loss ami 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." . ■■. . .y .While the Allied and Associated Governments recognise, that the resources of Germany .are not adequate, after taking into account the diminutions of such resources which will result from other Treaty claims, to mako complete reparation for all such loss and damage, they require her to make compensation for all 'lamages caused to civilians under seven main categories:— , ' (a) Damage by personal injury to civilians caused bj] acts of war,.directly or indirectly, including bombardments from the air. '(b) Damage caused to civilians, including exposure .-at sea resulting from acts of cruelty- ordered by the enemy, and to. civilians in the occupied territory. (c) Damage caused by the maltreatment of prisoners. .(d) Damage to the Allied peoples, represented by pensions and separation allowances, capitalisod at the signature of this Treaty. 1 (e) Damage to property" other than naval and military mi- .. terials. ' . . : < (f) Damage to civilians by being forced to labour. (g) Damage in the form, of levies or fines imposed by the ' . ' enemy. 1 ' , » .Germany, further binds herself 'to repay all sums borrowed fiv Belgium from the Allies as the result of Germany's violation of the Treaty of 1839, up to November 11, 1918, and for this purpose will issue at once and hand over to the Reparation Commission 5 per-cent, gold bonds falling due in 1926. The total obligation of Germany to pay, as defined in the category of damages, is .to bo determined and notified to her after a fair hearing not later than May 1, 1921, by an .Inter-Allied Reparation Commission. At tho same time a schedule of payments to. discharge the obligation within thirty- years shall be presented. Theso payments, aro subject to postponement-in certain contingencies. Germany irrevocably recognises the. full authority of this Commission, and agrees to suppty, it. with. all necessary information, and to pass legislation to v giye effect to "its findings. She further agrees to restore to the Allies cash and certain, articles which can be identified. .'■As an immediato 6tep.towards restoration Germany shall pay within two years i 11,000,000,000 in either gold, goods, ships, or other specific forms of payment, this sum boing included in and not additional .to the first thousand million bond issue reforred to. below, with the understanding that certain expenses,, such as those of,the armies of occupation and payments foq'food and raw materials, may be deducted at the,discretion of the Allies.

In periodically estimating Germany's capacity to pay, the Reparation Commission, shall examine the German system of taxatioji, first to the end that 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 eo 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.

The measures -which the 'Allied and Associated Powers shall liavo the right to takq in ease.of voluntary default by Germany, and which Germany agrees not -to. .regard-As-'acts of war, may include economical and financial prohibitions and reprisals, and in general such other measures as tho respective Governments mny determine to be necessary.in the circumstances. The Commission shall, consist of one'representative of each of, the United States, Great Britain, I'rnnce, Italy, Belgium, of Serbia or japnn biking the place of the Belgian representative ivhenthe interests of cither country.are particularly affected, with all the other:.Allied,Powers entitled,'when their claims are under consideration, to tho right of representation without voting power. It shall permit Germany to give, evidence regarding her capacity to pay, and shall assure her of a just opportunity to be ! heard. It shall mako its headquarters in Paris, and shall -establish its own procedure and personnel. It shall have general control of the wholo reparation problem, jind'shall become exclusive - agency of tho Allies for receiving, holding, selling, and distributing reparation pa^ments._ A majority vote 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 mnmier of selling, distributing, and negotiating bonds,,issued, ,-by flermaDy, any Postponement, between 1021 and. 1926 for a -period"of .not more than'three .years, tho application of a different method o? ■measuring damage than, in former case, and the interpretation of tho provisions. - . -. , •

Withdrawal from representation on the Commission is permitted upon twelvo months'notice. The Commission may require Germany to give from time to time, by way of- guarantees, issues of bonds or other obligations to cover such claims as are not-otherwise satisfied.

■ In. this connection, and on account, of tho total amount nf the. claims, bond issues are presently to be required of Germany in. acknowledgment of its .debt as follow: One-thousand .million pounds sterling, payable not later than May 1, 1921, without,interest; two thousand million pounils, 'bearing 21 per cent. - interest, between 1921 and 1926, and thereafter .-5 per cent, interest, with t per cent, sinking .fund, payment beginning j„ 1926; and an undertaking to deliver' bonds to the additional amount of'two thousand millions, bearing interest at 5 per cent., Tinder terms to be. fixed by the Commission. The interest on Germany's,,, debt.is to bo-5 per cent., unless other v -jso determined by the Commission in future, and payments that are not made ih gold may be accepted by'the Commission in the,form of properties, commodities, .businesses, rights, concessions, etc. Certificates of beneficial interest, representing either bonds or goods delivered by Germany, may be issued by the Commission to an interested Power. As the bonds are distributed and pass from tho control of the Commission, an amount of Germany's - debt equivalent,'to their par vaiuo is to bo considered as liquidated.., . SHIPPING. The' German Government'-recognises the right of the Allies to,-, tho replacement;- ton for ton and class for class, of all merchant ships and fishing boats lost or damaged owing to the war, and agTesg to cede to the Allies all German merchant ships of 1600 tons gross and upwards, 'one-half of -her ships between 1600 and 1000 tons gross, and one-quarter of her steam trawlers and other fishing boats.' '

_ These ships: are to be delivered within-two mouths to the Reparation Commission, together with documents of title, as cvidenco o. c tho transfer- of tho ships' from"encumbrance. . .' . As an additional part ef reparation the German Government further agrees' to build'merclinnt ships for tho account;of tlio /Allies to an amount not exceeding 200,000 tons gross per annum during 'the next five years. All ships used for inland navigation taken by Germany from the Allies are to be restored within two months, the.-amount of loss not covered by such restitution to be made up by the cession qf the German river fleet up to <20 per cent, thereof. - DEVASTATED AREAS Germany undertakes -to devote her economic resources directly to the physical "restoration of the invaded areas. The Reparation Commission is authorised to require Germany to replace'.;destroyed articles by the delivery of animals, • machinery, etc., existing in Germany, and to manufacture .materials required for jeconstruction purposes—all with due consideration for Germany's essential do-, mesticrequirements. 1 COAL, ETC. . Germany is to deliver annually for ten years to France coal equivalent to the difference between the annual pre-war output of the Nord and Pas d 8 Calais mines and the annual production during about ten years. Germany is further to give options over ten years for the delivery of seven million tons' of coal per year to Franco in addition to theabove, of eight million tons to Belgium, arid of aii amount rising from ;IJ- million tons in 1919 to 1920 to B.V million tons in 1923 to 102-1, to Italy,.at prices to be fixed as prescribed in the Treaty. Coke may be taken in .place of coal in the ratio of three tons to four. Provision is also to be made' for the delivery to France over three years of benzoin, coal-tar, end sulphate of ammonia. -The Commission has po'wers to postpone or annul the above deliveries should they interfere unduly with the industrial requirements of Germany. , . • , DYESTUFFS AND CHEMICAL DRUGS Germany accords an option to the Commission on dyestuffs and chemical drugs, including quinine, up to 50 per c.ent of the total stock in Germany at the time the Treaty comes into force, and a similar option during each six months to ■the end of 1924 up to 25 per cent, of the previous six months' output. \ CABLES, Germany renounces all title to specified cables, the value of such as were privately owned being credited to her agajnst the reparation indebtedness. SPECIAL PROVISIONS As reparation for the destruction of the library of Louvain, Germany is to hand over manuscripts, early printed books, prints, etc., to the equivalent of those destroyed. In addition to the above Germany is to hand over lo Belgium the wings, now at Berlin, belonging lo the altar-piece of the "Adoration of the Lamb," by Hubert and Jan van E.vek, the centre of which is now in the Church of St. Biive, at Ghent; and the iviugs, now at Berlin and Munich, of the altarpiece'of "The Last Supper," by Birlc Bouts, the centre of which belongs to the Church -of St. Peter at Louvain. Germany has to restore within six months the Koran of Caliph Othman, formerly at Medina, to the King of tho Hojaz. and the skull of the Sultan Mkwawa, formerly In German- East Africa, to His Britannic ■ Majesty's Government. The Gorman Government is also to restore to the French Government certain papers, and to restore the French flags taken during the war cf 1870-71.