REPARATION AND RESTITUTION

New Zealand Times, Volume XLIV, Issue 10275, 9 May 1919, Page 6

REPARATION AND RESTITUTION

SEGTiOH VIII

“Tho Allied and associated Governments affirm, and Germany accepts on behalf of herself and her allies, the responsibility for all loss and damage to which tho Allied €iiid associated Governments and their nationals have been subjected ns a consequence of the war imposed upon them by tho aggression of enemy States. “While tho grand total of damages assessed against Germany may exceed her ability to pay she undertakes to make compensation for all damages cruised to civilians under seven main categories: (a) Damage by personal injury to civilians caused by acts of war directly or indirectly; (b) damage caused to civilians by acts of cruelty ordered by the enemy and to civilians in occupied territories: (c) damages caused by maltreatment of prisoners; (d) damages to Allied peoples represented by pensions and separation allowances capitalised at the signature of this Treaty; (e) damages to property other than nava lor military materials; (0 damage to civilians by being forced to labour; (g) damages in the form of levies or fines imposed by tho enemy. Tho total obligation of Germany to pay as defined in the category of damages is to he determined and notified to her after a fair hearing, and not later than Slay Ist, 1921. by an inter-Allied Preparation Commission; at the same time a schedule of payments to discharged obligation within thirty years Shall be presented. These payments are subject to postponement in certain contingencies. Gennany irrevocably recognises the full authority of this Commission and agrees to supply it with all necessary information and to pass legislation to effectuate its findings. She further agrees to restore to the Allies cash and certain articles which can he identified. As an immediate step towards restoration Germany shall pay within two years 20,000 marks in either gold, goods, ships or other specific forms of payment with tho understanding that certain expenses, such as those of armies of occupation and payments for food and raw materials may be deducted at the discretion of the Allies. “In periodically estimating Germany’s capacity to pay reparation 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 he-, come a charge upon all her revenues prior to that for 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 proportionally as that of any of the ewers represented on the Commeasures which the Allied and associated Powers shall have the right to take in case of voluntary detault 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 may to necessary in the circumstances. Tho Commission shall consist of ono representative each of the United States, Great Britain. France, Italy, and Belgium, all other Allied Poweis being entitled, when their claims are nnder consideration, to the right of representation without voting pqivtr. It shall permit Germany to give evidence regarding her capacity to pay, and shall assure her a just opportunity to be heard. It shall make its headquarters at Fan’s, establish its own procedure and personnel, have general control of the whole reparation problem, and become the exclulive agency of the Allies for receiving, holding, selling, and distributing reparation payments. The majority vote shall prevail, except that nnanijnity is required on questions involving the sovereignty of any of the Allies;. cancellation of all or part ot Germany’s obligations; time and manner of selling, distributing, and nego Mating bonds issued, by Germany; any postponement between 1921 and l’'- v of the annual payments beyond 1930, and any postponement after 1926 for a period of more than three years; tho application of a different method of measuring damage than in a similar former case, and the interpretation of tho provisions. Withdrawal from representation on tho Commission is permitted upon twelve months’ notice being given. The Commission may require Germany to give from time to time bj way of guaranty issues of bonds or other obligations to cover such claims as are not otherwise satisfied. In this connection and on account of the total amount ot claims, bond issues are presently to he required of Germany in acknowledgment of its debt as follows; —Twenty thousand million marks in gold, payable not later than May Ist, 1921, without interest; 4u,1)0u million marks in gold, bearing 2! per cent, interest between 1921 and 1026, and thereafter 5 per cent., with 1 per cent, sinking fund payment beginning in 1926, and an undertaking to deliver 40,000 million marks in gold, bearing interest at 5 per cent, under terms to be fixed by tho Commission. The interest on Germany’s debt will be 5 per cent., unless otherwise determined by the Commission in the future, and payments that are not made in gold may bo 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 tho Commission to tho interested Power, no Power being entitled, however, to have its certificates divided into more than five pieces. As the bonds are distributed and pass from the control of the Commission, an amount of Germany’s debt equivalent to their par value fs to bo considered as liquidated. SHIPPING. Tho German Government recognises tho right of tho Allies to tho replacement ton for ton and class for class of nil merchant ships, fishing boats lost or damaged owing to tho war, and agrees to cede to the Allies all Gorman merchant ships of 1600 tons gross op-

wards. One-half of her ships between 1600 and 1000 tons gross, and one-quarter of her steam trawlers and other fishing boats, these ships to bo delivered within two months to the Reparation Commission, together wt'b documents of litlo evidencing the transfer of ships from encumbrance. “As an additional part of reparation,” tho German Government further agrees to build merchant ships for the Allies for an amount not exceeding 200,060 tons gross annually during- the next five years. All ships used for inland navigation and taken by Germany from the Allies are to be restored within two months, the amount of loss not covered by such restitution to he made up by the cession of the German river fleet up to 20 per cent, thereof! DEVASTATED AREAS.

Germany uiflfiertakes to devote hci economic resources directly to tho physical restoration of the invaded areas. The Reparation Commission is authorised to require Germany* to replace the destroyed articles by the delivery of animqls, machinery, etc., existing in Germany, and to manufacture materials required for reconstruction purposes, all with due considers, tion for Germany’s essential domestic requirements. SPECIAL PROVISIONS.

Germany is to restore within six months the Koran of tho Caliph Otsman, formerly at Medina, to the King of the Hedjaz, and the skull of tho Sultau Mkwawa, formerly in German East Africa, to His Britannic Majesty’s Government. The German Government is also to restore to tho French Government certain papers taken by tho German authorities 111 1870 belonging then to M. Rouhor, and to restore the French flags taken during the war of 1870-71.

(To be continued.)