OFFICIAL PEACE TERMS

Taihape Daily Times, 9 May 1919, Page 4

OFFICIAL PEACE TERMS

MoreJSevere than Expected. 0 Bk GERMANY'S GREAT BURDEN. 0 Must Pay for All Loss. o TO OUR READERS. By somebody's blundering "The Pence Treaty" was not despatched to the "Taihapc Daily Times" from Wellington. At 10.20 a.m. this morning unintelligible fragments of the Treaty commenced to arrive at ths office, which turned out to be pieces of two versions, one from L'ondon, the other from Wellington. W e wired :to the Press Association and received a reply stating it was thought we could copy from a Wanganui paper, which was utterly impracticable. A protest against this treatment of our readers appea Ts i n our editorial columns, TBIs office has had forced upon it two concurrent versions of the Treaty in addition to the usual daily batcTi of cables., which fact does not Tefle"ct. credit on knowledge of the dispatching staff of the Press Association, in Wellington, for of course it should have been realised the task was an impossible one.—(Editor T.D.T.)

Allied and Associated Governments affirm, and Germany accepts, responsibility of herself and Jicr agios for causing all the loss and damage to which the- Allied Associated Governments and their nationals have been subjected as a consequence of the war, and imposed upon them by the aggression of Germany and her alios. 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 make complete reparation for all such loss and damage, but they require her to make compensation for all damages caused to civilians under seven main categories: —

(a) Damage by personal injury to civilians caused by 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 occupied territories.

(c) Damages caused by maltreat ment of prisoners.

(d) Damages to Allied peoples represented by pensions separation allowances, capitalised at the signature of this treaty.

(e) Damages to property other than naval and military materials.

(f) Damage to civilians by being forced to labour.

(g) Damges in the form of levies or fines imposed by the enemy.

Germany further binds herself to repay all sums borrowed by Belgium from the Allies, as a result of Germany's violation of the treaty of 1839, up to November 11th, 191 S; and for this purpose will issue at once, and hand over to the Separation Commission 5 per cent in gold, and bonds falling due in 1926.

The total obligation of Germany to pay, as defined in the category of damages, is to be determined and notified to her after a fair hearing, not later than Ist. May, 1920, by an Inter-

national Eeparation Commission. At the same time a schedule of payments to discharge the obligation within thirty-eight years, shall be presented; these payments are subject to postponement with full authority of this Commission, and she agrees to supply it with all the necessary information and pass legislation to effectuate its findings. She further agrees to restore to the Allies cash and certain articles which can be identified.

As immediate step towards restoration Germany shall pay within two years £1,000,000,000 sterling in cither gold, goods, ships or in other specific forms, payment of this sum being included in and not additional to the first thousand million. The Bond Issue, referred to below, with 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 periodically. In estimating Germany's capacity to pay reparation, the Commission shall examine the German system of taxation; first, to the end that sums for reparation which Germany is required to pay shall become a charges upon all her revenue prior to that for the service or dis- | charge of any domdfctic 'o«m: and; secondly, so as to satisfy itself that in general the German scheme of taxttion is fully as heavy, proportionately, as that of any Powers represented on i the Commission.

The measures which. Allied and Associated Powers shall have the right to take in case of voluntary default, by, Germany,' and to> wfhich Germany agrees, no regard as to acts of war may include economic and - financial prohibitions and reprisals, and in general such other measures as respective Gov-

ernments may determine to be neces-

sary in the circumstances. The Commission shall consist of one representative of the United States, of Great Britain, France. Italy, and Belgium, a representative of Serbia or Japan taking the place of the Belgium represen- §

tative when interests of either country are particularly affected, with all the other Allied Powers so entitled.

when their claims are under consideration, to a right of representation without voting power. It shall pei--

n:it German}' to give evidence regarding her capacity to pay and shall assure her a just opportunity to be heard; it shall make its headquarters at Paris, make its own procedure and personnel, havje general control jof

the whole repatriation problem, and become the exclusive agency of the Allies for receiving, holding, selling, and distributing reparation payments. The 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, manner, selling, distributing, and negotiating bonds issued by Germany; any postponement between 1921 and 1926 of annual payments beyond 1930, and any postponement after 1926 for a period of more than three ■ years' trial of a different method of measuring damage than in former case, and the interpretation provisions. Withdrawal from representa-_ tion on the Commission is permitted upon twelve months' notice. The Conir mission may require Germany to give from time to time, by 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 of eloims, bond issues are presently required of Germany, in acknowledgment of its debts, as follows: £1,000,000,000 payable not later than Ist May, 1921, without interest; £2,000.000,000, bearing 2-1 per cent interest, between 1921

and 1926, and thereafter 5 per cent, with one per cent sinking fund, the payment beginning in 192 G, and an undertaking to deliver bonds to the additional amount of two thousand million, bearing interest at 5 per cent, under terms to be fixed by the Commission. Interest on Germany's debt to 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, rightts', concessions, etc.

Ccrtificate of beneficial interest, representing either bonds or goods delivered by Germany, may be issued by the Commission to interested As bonds are distributed and pass from control of the Commission, an. amount of Germany's debt, equivalent to their par value, is to be considered as liquidated. SHIPPING. The German Government recognises the right of the Allies to replacement of ton for ton, and class for class of all merchant ships, and fishing boats lost or damaged owing to war, and agrees to cede to the Allies all German merchant ships of 1600 Ot.ons gross and upwards, one half of her ship? between 1600 and 1000 tons gross, and one quarter of her steam trawlers and other fishing boats; tlieso ships are to be delivered within two months to the Reparation Commission, togethc" witli documents and title, Evidencing the transfer within two months, amount of loss not covered by such restitution to be made up by cession of the Gcr* Khan river fleet, up to 20 per cent thereof. [] DEVASTATED AREAS. !Gorrminy undertakes to devote £cj economic resources directly to the pny.

sical restoration of invaded areas. The Beparation Commission is authorised to require Germany to replace destroyed articles by delivery of anin©ls, machinery, etc., existing in Germany, and toi manufacture materials required for reconstruction purposes, f^ 1 "** 1 'due consideration for Germany's essential domestic requirement. 1

COAL, ETC." Germany is to deliver annually, for ten years, to France, coal equivalent to ihe difference between the annual prewar output of Nord and Pas de Calaise mines, and the annual production, during about ten years. Germany further gives options over ten years for jdelivery of seven million tons of coal jL per year to Prance. In addition to the ' above, of eight million tons to Belgium, and of an amount rising from 4§ million tons in 1919 to 1920 to 8* million tons in 1923 to 1924 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 made for delivery to France, over three years, of benzoni coal tar and sulphate of ammonia. The Commission has powers to postpone or annul the above deliveries, should they interfere unduly with the industrial requirements of Germany.

BYESTUFFS ANB CHEMICAL BRUGS.

Germany accords an option to the Commission on dyestuffs and chemical drugs, including quinine, up to 50 per cent of the total stock in Germany at the time the Treaty comes into force, and similar- options during each six months to the end of 1924, up to 25 per cent of the previous month's output. pABLESf . i Germany renounces all title to specified cables, the value of «Tuch as were privately-owned Being credited to her against reparation indebtedness 1 . SPECIAL PROVISIONS. As reparation for the destruction of the library of Louvain, Germany is to hand over the manuscript of early printed books, prints, etc., to an equivalent of those destroyed; in addition to the above, Germany is to hand over to Belgium, wings, now at Berlin, belonging to the altar-piece of the Adoration of the Lamb, by Hubert and Jan Vandyek, the centre of which is now in the church of Saint Bave, at Ghent, and the wings now in Berlin and Munich, of the altar-piece of The Last Supper, by Birkbouts, the centre of •which belongs to the Church of St. Peter, at Louvain. Germany has to trestore within six months the Koran of Caliph, Othman, formerly at Medina, to the King of the Hedjaz, and the skull of the Sultan Mkwawa, formerly in German East Africa, to his Britannic Majesty's Government. The German Government is also to restore to the French Government certain papers taken to Trouher, and restore French flags taken during the war of 137071. ' GUARANTEES. Western Europe, as a guarantee for the ereciition of the Treaty in German territory to the west of the Rhine, the Bridgeheads will b e occupied by Allied and Associated troops for 15 years. If conditions are faithfully carried out by Germany, certain districts, including the bridgeheads at Cologne, will be evacuated at the expiration of 5 years; in certain other districts, including the bridgeheads at Coblenz, will be evacuated after ten years, and the remainder, including the bridgehead at Mainz, will be evacuated after 15 years. In case the Allied Reparation Committee finds that Germany has failed to observe the whole, or part, of her obligations, either during occupation or after the 15 years have expired, the whole or part of the areas specified will be reoccupied immediately. If, before expiration of 15 years Germany complies with all undertakings resulting from the present treaty, occupying forces will be withdrawn immediately from Eastern Europe. Similarly, all German troops at present in territories oast of the new frontier shall return as soon as the Allies' think th e moment suitable. They are to abstain from all requisitions, etc., and are in no way to interfere with such measures for national defence as may be adopted by provisional governments concerned. OCCUPATION OF TERRITORY. All questions regarding occupation not provided for by the treaty will be regulated by a subsequent convention or conventions, which will have similar force and effect. MISCELLANEOUS.

Germany agrees to recognise tie full validity of treaties of peace and additional conventions to be concluded by Allied and Associated Powers, with Powers allied with Germany, to agree to decisions to be taken as to territories of Austria-Hungary, Bulgaria, and Turkey, ,and trecognises new jiStates in frontiers to be fired by them. They agree that th e Chairman of the ComTriissions shall, under certain circumstances, have a casting vote. The work of religious missions maintained by German societies in territory .transferred to, or belonging to Allier or Associated Power, is to be continued under trustees appointed by those Powers. In a clause, Germany undertakes not to put forward pecuniary claim against any Allied Powers

signing the present treaty based on events previous to coming into force of the Treaty. Germany accepts all decrees, etc., as to German ships and goods made by any Allied Court, and the Allies reserve the right to examine all decisions of German prize courts.

The present treaty, of which the French and English texts are both authentic, shall bo ratified and the deposit of ratification made in Paris as soon as possible. Various diplomatic provisions as to ratification follow. The Treaty is to enter into force in all respects for each Power on the date of its ratification.

SECTION HONE—FINANCE. | The Powers to which German territory is ceded will assume certain porl tions of the German pre-war debt, the I amount to be fixed by the Reparation Commission, on a basis of ratio between revenues of ceded territory and Germany's , total revenues (for three years preceding war. In view, however of special circumstances under which Alsace and Lorraine were separated from France in 1871, when Gtermany refused to accept any part of the French public debt, France will not assume any part of Germany's prewar debt, nor will Poland share in certain German debts incurred for the oppression of Poland. Value of German Government property in ceded territory will, in general, be credited to Germany on account of reparation, but no credit, will be given for any .German Government property in Alsace and Lorraine. Mandatory Powers will not assume any German debts, or give any credits for German Government property. Germany renounces all right to representation on or control of Si:at*> Banks, Commissions, or other similar international, financial, and economic organisations. Germany is required to pay the total cost of armies of occupation from, the Mate )of tfihe armistice, as long as they aro maintained in German territory, and this cost 'is to be a first charge on her resources The cost of reparation is the next charge, after making such provision for payments for imports as the Allies may deem necessary. Germany is to deliver to the Allied Powers all sums deposited in Germany by Turkey and Austria-Hungary in connection with the financial support extended by her to them during the war and to transfer to the Allies all claims against Austria-Hungary, Bulgaria or break in connection with agreements made during the war. Germany confirms the renunciation of the treaties of Bucharest and Brest Litovsk. On request of this Reparation Commission, Germany will expropriate any right or interest of her nationals in public utilities in ceded territory, or. those administered by mandatory, in Turkey, China, Russia, AustriaHungary and, Bulgaria, and transfer them to the Reparation Commission which will credit her with their value. Germany guarantees to repay the ; Brazil funds arising from the sale of Sao Paulo coffee which she refused to allow Brazil to withdraw from Gerluany. I « CUSTOMS. The Treaty contains detailed provisions for securing that Germany shall not discriminate directly or indirectly aaginst trade of Allied and Associate Countries; these provisions will remain in force for five years unless extended by the Council of the League of Nations. Temporary provision as made for free entrance into Germany up to ! a limited amount of products. Of ! Alsace, Lorraine, Luxemburg, and : German territory ceded to Poland, the , German import tariff is applicable at the outset to Allied goods but. will no* exceed the lowest rates of 1914. After six months Germany will be free to raise her tariff so long as it is impartially applied to all the Allies, except as regards a few specified articles, mainly agricultural products, with regard to which restriction will extend for a further period of 2£ years. Power is reserved in ease of necessity to impose a special customs regime. in occupied parts, on shipping. Vessels of the Allies are to enjoy both national and most favoured nation treatment in Germany for at least 5 years, and this provision will continue there after on condition of reciprocity, unless revised by the Council of the League of Nations. As regards the using of coasting trade and towage, most favoured national treatment is to be accorded for the same period as for customs matters.

Provision is made for the recognition by Germany of ships' certificates and places of registry of ships, belonging to States without seaboard.

UNFAIR COMPETITION. Germany undertakes to protect the trade of the Allies against unfair competition and in particular to suppress tho use of false markings and indications of origin and on condition of reciprocity to respect Jaws and judicial decisions of Allied and Associated States in respect of national appellations of wines, spirits, and treatment of nationals. Germany is not to impose on nation-

als of Allied States or their property any restrictions which were not in force before the war, unless those restrictions and taxes are applied to her ow r n nationals. She is also prevented from imposing restrictions in regard to the exercise .of occupations which are not j applicable to all foreigners. These i provisions are to be inforce for a period of five years, and, if a majority of the Council of the League of Nations so decides, for an additional period not exceeding five years. German nationality shall not continue to be attached to a person who has become a national of Allied or Associated States.

MULTILATERAL CONVENTIONS

Some forty multilatcrial conventions are renewed between Germany and the Allied parties thereto, but, special conditions are attached to Germany's readmission to several, for example, as to postal and telegraphic conventior •■, Germany must not refuse her conbont to special arrangements concluded by the new States; she must agree as respects radio-telegraphic convention to fulfill provisional rules to be communicated to her and adhere to the new convention when formulated.

Under the North Sea Fisheries and North Sea Liquor Traffic Convention, rights of inspection and police over Allied fishing boats are for at least five years to be exercised only by vessesl of Allied Powers.

Germany loses special rights granted her under article 3 of Samoa Treaty of 1899 and other Treaties, and in particular is to renounce her right to the Boxer Indemnity, subsequent to China's entry into the war. Each Allied State may, if it desires, renew any of its Treaties with Germany in so far as consistent with the Peace Treaty, by giving notice within six months. Treaties entered into by Germany on Ist August. 1914, with other enemy States, and before or since then with Roumania, Russia, or Governments representing parts of former Russian territory are abrogated and concessions granted under pressure to German nationals are annulled. The Allies arc to enjoy privileges conferred under Treaties entered into with Germany with other enemy States before Ist August, 1914, and under Treaties entered into by Germany with neutral' States during, the war. Germany is to agree, at the requests of Swiss and Italian Governments, to denunciation of the 1909 convention, as to tin' St. Gothard route. As a temporary arrangement, Germany is to execute instructions given in the name of the Allies as to the transport of troops, materia], munitions, etc.. transport for revictualling certain regions. and the rc-establisbment of normal transport, coastal, and telegraphic services. Finally, Germany is to agree to subscribe to any general conventions regarding an international regime of transit of waterways, ports, or railways, which may be concluded by the Allies, with the approval of the League of Nations, within five years Differences are to be settled by the League of Nations in certain specified articles, e.g.. those providing for equal treatment in matters of transit and transport arc subject to revision by the League of Nations after five years, failing revision, they will only continue in force in relation to any Allied State which grants reciprocal treatment.

KIEL CANAL. The Kiel Canal is to remain free and open to ships of war. and merchant shipping of all nations at peace with Germany, subject to goods and ships. all States are treated on terms of equality in the use of the canal, and charges are to be limited to those necessary for the upkeep and improvements of the canal, for which Germany is to be responsible. In cases of violation of these provisions, or to disagreements as to them, States concerned may appeal to the jurisdiction established by the League of Nations, and may demand the appointment of an international Commission. HE LABOUR CONVENTION.

Under provisions of the Labour Convention, an international conference is to be held annually to propose labour refoinis for adoption by States composing the League of Nations. There is to be a governing body to act as executive, and prepare the agenda for the Conference and the international labour office for collection and distribution of information reports. The head of this office will be responsible to the governing body. Three: The. annual conference will consist of four representatives from each State, that, is, two for the State and one each for employers and employed. Each delegate may vote independently. The Conference will have power to adopt, by a two-thirds majority, recommendations or draft conventions on labour mattors. Eeeommnedations or draft conventions so adopted must be brought by each State before the authority or authorities within whose' competence the matter lies for enactment for legislation, or other action. If a draft convention receives the approval of the competent, authority, the State in question is under obligation to ratify jt and carry if into effect. Should any

State fail to observe the above regula

tions, it will be open to the governing body to appoint a Commission of Inquiry, as a result, of whose findings the League of Nations may take economic measures against the offending State. Four: Special provision is made tb prevent any conflict with the constitution of the United States or any other Federal States. Five: To meet the case of countries where climate, imperfect industrial development, or the special circumstances render labour conditions substantially different, from those (obtaining fclsew'hcre, |th e i Conference must take the difference into account in framing any convention. A protocol attached to the convention provides for the first meeting to be at Washington in the present year, and sets up an international organisation for that purpose. The protocol also contains the agenda for the first meeting, which includes the principle of an eight-hours' day. the question of unemployment,, and the employment of women and children, especially in dangerous trades. Appended to the section containing the Labour Convention, is an affirmation by the high contracting parties of methods and principles for regulating labour conditions, which all industrial communities should endeavour to apply as far as their special circumstances permit. Amongst, these are that labour should not be regarded merely as a community or article of commerce; right of association for all lawful purposes for employer as well as employed; payment to employed of a wage implying a reasonable standard of life as understood in their time and country. The adoption of an eight-hours day or forty-eight hours' week, where not already being attained: adoption of weekly rest or at least 24 hours, including Sunday, where practicable. Abolition of child labour and limitation of labour of the young so as to permit continuance of their education (find proper physical development, The principle of cqnol p a >' tor mcn anc * women for equal work. Any legal standard for the condition of labour to have regard in each country to equitable economic treatment of all workers resident therein, and provision in each State or system for inspection and protection of employed in which women should take part,

PRE-WAR DEBTS. Clearing offices arc to be established within three months in Germany with each Allied or Associated State which adopts plan and settlement of pre-war debts and other specified pecuniary obligations will take place tlirough these offices, direct settlement being prohibited. Adjustment of proceeds of liquidation of enemy property will also be made through these offices, each participating State to take responsibility for obligations of kinds referred to on the part of its nationals towards nationals of opposing States, except in cases where at the outbreak of the war debtor was insolvent. Claims are to be discussed between cleairng offices to countries concerned, and failing agreement are to be submitted to arbitration or to a mixed arbitral tribunal referred to below. Re sums due to nationals each country is to be paid by the clearing office in tnUt Country and sums owing by such nationals aFe to be debited to it. Debts are to be paid in the currency of Allied country concerned and the rate of exchange to be adopted, failing specific provision in contract, is to be the average cable transfer rate prevailing in that country during the month immediately preceding the outbreak of war between the country in question and Germany. If is optional with any Allied Power to participate in above system

ENEMY PROPERTY. Action of liquidation, control, etc.. token in Allied country and in Gerjmany in regard to enemy property and business under exceptional war measures, is confirmed, subject to compensation ir* respect of lossi to property etc., of Allied" nationals to be determined by mixed arbitral tribunal and charged upon property of German nationals which i s under control of claimant State. Any compensation e&e to her own nationals i s to be paid by Germany. All action of liquidation control, etc., in Germany is to be stayed, and Allied property, if Tlo r COm _ plotely liquidated, i s to be restored. Nationals of countries which did not make any general liquidation of German property may require restoration if possible of their actual property by the German Government in whosoever hands they may now be Stipulations are included for protection of returned property and businesses in Germany in future.

The Allies reserve the right to retain and liquidate all German property within their territory. The nett proceeds of sales of such property both during, and after the war, are' to be credited to Germany and applied by each State 'to satisfaction of claims by its nationals with regard 'to their property in German or debts owing to them by Germans. CONTRACTS. Pre-war contracts between Allied nationals and German nationals are in general cancelled a s from the "3ate which parties became enemies, exception being made in

nicnts for transfer of real or personal property, where property therein had already passed in leases of land and houses, contracts of mortgage, pledge or lien, mining concessions, contracts with Governments and public bodies, and insurance contracts. In regard to last named clause of contracts, provision is made as inidcated below. Powers are reserved for maintenance of contracts, the execution ,of which is regarded by an Allied State as in the general interest, subject if necessary to payment of equitable compensation to be fixed by mixed ai'bitral tribunal. In regard to constitutional difficulties in the case of the United States of America, Brazil, Japan, these councils are excepted from the provisions relating to pre-war contracts^

Fire insurance contracts are" not considered dissolved by war, even if premiums have not been paid but lapse at the date of first actual premium falling due three months after peace. Life insurance contracts arc not dissolved merely by reason of the war, but where they lapsed the surrender value may be claimed, or, if lapse was due to payment premiums being prevented by enforcement of war measures, the contract may be restored on payment of premiums with interest.

Marine insurance contracts are dissolved by outbreak of war, except where risk had already attached. Where the same risk was aglun Insured against, after war had begun, then a new policy is to be considered as substituted for the old. Where the risk had not been attached at the outbreak of war, premiums paid are recoverable. Insurance Treaties are abrogated unless invasion has made it impossible for reinsured to find .another reinsurance. Any Allied or Associated Powers, however, may cancel all life insurance contracts running oetween its national and German insurance or reinsurance company, the latter being obliged to hand over proportion of its assets attributable to such policies, !l mixed arbitral tribunal is to be established between each of the Allies and Germany con sisting of one member appointed by each of the two Governments and a president 'to. be chosen; 'failing an agreement by the Council of the League of Nations, or until this is set up then, by fSe present President of the Swf§"s Federal Council. This tribunal is to ffficide all disputes relating to contracts made before the date oFThe Treaty of Peace between nationals of Allied States and German nationals, so far as they do not fall within' the jurisdiction of Allied or Associated or Neutral Courts. INDUSTRIAL PROPERTY.

Rights in industrial, literary, and artistic property, are re-established, but subject in case of German owned rights to the effect of the special war measures of the Allies. The right of imposing on German patents and copyrights, conditions in ;the public interest or to secure fulfillment of Germany's obligations is reserved. Extensions of time are given for accomplishment of formalities for working of patents and for securing rights under international conventions, except as to between the United States of America and Germany. Pre-war licenses are cancelled, subject to the right of the old licensee, to demand new license on term s to be specially settled, and except as between the same countries, the right to sue for infringement committed during the war is not recognised. ■

OPIUM. Contracting Powers who have not signed or ratified the Opium Conventiow of 1912 agree to bring it into force ' AERIAL NAVIGATION. Aircraft of Allied and Associated Powers shall have full liberty of passage over and landing in n'tory, equal treatment with German planes as to trie use of German aerodromes and with most favoured nation al planes, as to internal commercial traffic in Germany. Germany agrees to accept Allied certificates of nationality, air-worthiness or competency, and licenses, nnd apply the convention rules, relative to aerial navigation, concluded between Allied and Associated Powers to her own aircraft over her own territory. These rules apply until 1923, unless Germany has since been admitted to the League of Nations or to above Convention.