PEACE TREATY.

Taranaki Daily News, 9 May 1919, Page 6

PEACE TREATY.

(Continued from page 5.) restore to the Allies cash and certain articles which can be identified as an ;nur-c.rf.:a!.e siep towards restoration. Germany shall pay within two years iW.'A'O.O'Xi.OOO marks in either gold, good?, iiliips, or oilier specific forms of payment, with the understanding that certain expenses, such as those of the armies of occupation and payments for food and raw materials may be deducted at the discretion of the Allies.

In pcri'vliially estimating Germany's | capacity to pay the Reparation Commission shall examine the German system of | taxation, first to the end that the sums i'or reparation which Germany is re- j quired to pay shall become a nharge uuon ii'-I her revenues prior to that for pcrv w or discharge of any domestic loan, and secondly so as to satisfy itself that in ;;f):i"n! the German scheme of taxation is fully a* heavy proportionally as ■ that '•■? any Powers represented on the Commission. The measures which allied and associated Powers shall have a 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 prohibition and reprisals, and in general such other measures as the respective Governments may determine to be necessary in the circumstances. The commission shall consist of one representative each of the United States, Great Britain, France, Italy, and Belgium, with all other Allied Powers entitled, when their claims are under consideration, to the right of representation without voting power. It shall permit Germany to give evidence regarding her capacity to pay, and assure her a just opportunity to be heard- It tthall make its headquarters at Paris, establish its own procedure and personnel,, and have general control of the whole reparation problem, and become the exclusive agency of the Allies for receiving, holding, selling, and distribution of reparation payments. The majority vote shall prevail, except that unanimity is required on questions involving the sovereignty of all or part of Germany's obligations, the time and manner of selling, distributing, and negotiating bonds issued by Germany, any postponement between 1921 and 1928 of the annual payments beyond 1930, and any postponement after 1928 for a period of more than three years, the application of a different method of measuring the damage than in a similar former case, and the interpretation of provisions. Withdrawal from representation on the commission is permitted upon twelve months' notice. The commission may require Germany to give from time to time, by way of guaranty, issues of or other obligations to cover such claims as are not otherwise satisfied. In this connection, and on account of the total amount of claims, the bond issues are presently to be required of Germany in acknowledgment of its debt as follows:

20,000,000,000 marks in gold, payable not later than May 1, 1921, without interest. 40,000,000,000 marks in gold, bearing 2i per cent, interest, between 1921 and 1926, and thereafter 5 per cent, with one per cent, sinking fund, payment beginning in 1926, and an undertaking to deliver 140,000,000,000,000 marks in gold, bearing interest at five percent., under terms to be fixed by the commission. ' -'"*' 'W Interest on Germany's debt will be 5 per cent, unless otherwise determined by the commission in future, and the payments that are not made in gold may be accepted by the commission in the form of properties, commodities, businesses, rights, concessions, etc. Certificates and beneficial interest representing either bonds or goods delivered by Germany may be issued by the commission to the 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 is to be considered as liquidated.

SHIPPING. ( The German Government recognises the right of the Allies to the replacement, ton per ton and class per class, of all merchant ships and fishing boats lost or damaged owing to the war, and agrees to cede to the Allies all the German merchant ships of 1600 tons gross and upwards, one-half her ships between 1600 and 1000 tons gross, and one-quarter her steam trawlers and other fishing boats. These ships to be delivered within two months to the Reparation Commission, together with documents of the title evidencing the transfer of the ships free from encumbrance. As an additional part of the reparation the German Government further agrees to build merchant ships on account of the Allies to an amount not exceeding 200,000 tons gross annually 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 of the German river fleet up to twenty 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 the destroyed articles by delivery of animals, machinery, etc., existing in Germany, and to manufacture materials for reconstruction purposes, all with due consideration for Germany's essential domestic requirements.

SPECIAL PROVISIONS. Germany is to restore within six months the Koran of the Caliph Otsmau, formerly at Medina, to the King of Hedjsiz. and the skull of the Sultan Mkwawa, formerly in German East Africa, to his Rrittanic Majesty's Government. The German Government is also to restore to I lie French Government certain ppjaer.s taken by tiie German authorities in 1>?0, belonging then to M. Rouher, and to restore the French ilass taken during the war of 18:0-71. (Incomplete.)