THE PRICE OF WAR.

Taranaki Daily News, 26 July 1919, Page 12

THE PRICE OF WAR.

GIST OP THE PJACE TERMS, WHAT GERMANY PAYS.. REPARATION' AND GUARANTEES.' Under tho Peace Treaty, Alsace-Lor-raine is restored to France, . and the Franco-German frontier is that of 18th July, 1870, with a reservation regarding the Saar basin. Luxembourg ceases to bo part of the German seoilrveifjin, and Germany renounces all convention and treaties with the Grand Duchy. Germany cedes to France full ownership of the mines in the S.iar basin, which territory will he governed by a commission appointed by the League of Nations. After 15 years a plebiscite will be held by the communes in this territory to decide between the League of Nations regime "or union with France or Germany. Poland is recreated as an empire, and ehe obtains from Germany, "osen mid the province of West Prussia on the left bank of the Vistula, while the southern and eastern frontier of East Prussia, as facing Poland, is to be fixed by plebiscites. Upper Silesia was given to Poland in the first Treaty; in the revised Treaty it is provided that a plebiscite of the inhabitants shall be taken. "The Free City of Danzig" is to be constituted under the guarantee of the Leaglie of Nations. The frontier between, Germany and Denmark will be determined in accordance with the wishes of the population. Germany is to recognise the independence of all territories whica formed part of the former Russian Empire. The independence of German-Austria Is recognised by Germany. The frontier with Austria is the same as that of 3rd August, 1914, up to tie point where that of the new State of Czecho-Slovakia begins. There is a general renunciation on tin part of Germany of ber and rights abroad. Germany yields * her colonies to .the Alli"S,_together with her rights in Africa under the various international conventions. Intsrnational recognition is given in the British protectorate in Egypt. Germany cedes to Japan all rights, notably as to Kiao-chau, and the railroad and cables "acquired bv her treat? with China of 6th March, LS92, and by other agreements as to Shantung.

ARMY AND NAVY All compulsory military service is to be abolished in Germany, the total number of effective's being fixed first at 200,000, and by 31st March, 1020, at 100,000. The armed forces of Germany -mAsfc hot include any military or naval air forces. Within two months the German naval forces in commission must not exceed rix battle-ships, six light cruisers, 12 destroyers, and 12 torpedo-boats, and the personnel (also volunteers') must not exceed 15,000, including a maximum of 1500 officers and warrant-officers Germany is forbidden to construct cr acquire any warships.

Fortifications and harbors on the islands of Heligoland and Dune are to ho destroyed, Germany must not maintain or construct any fortifications less ihnn SO kilometres to> the east of the Rhine, ani' must maintain no armed fore? withif this area.

' TRIAL OF EX-KAISER. The ex-Kaiser, who surrender is to be asked for, will be publicly arraigned for a supreme offence against international morality and the sanctity of treaties. A special tribunal, consisting of one judge from each of the five Great Powers is to be set un. Persons recused of acts of violation of. the laws and customs of war will be tried by military tribunals. Germany accepts responsibility for the loss occasioned to the Allies by reason of the war imposed on them by the aggression of the enemy State?. German) must restore ail property token from invaded territory. . 'Vie Aliios require Germany to r-av compensation for all damages to civilians through Oerman aggression by land or sea.

REPARATION. An inter-Allied commission will fix the amount of damages, and report the same to Germany before Ist May, 1921, announcing at the same tims the total claims which Germany must meet and the scheme of payment, spread over u period of thirty years thereafter. Germany must pay before Ist May, 1921, £1,000,000,000 sterling worth of gold, goods,, or ships, the first charge thereon to be the cost of tho armies of occupation and supplies foiwarded to Germany to enable her to meet Iwr obligations. Details of the damages for which Germany must pay compensation include all kinds of moral and physical damage in occupied territory affecting the -health, strength, an(J, 'honoftof the victims and their dependants, and pensions to'inilitary victims, including sick, w-uhded, and mutilated.

Germany must issue immediately and surrender to the inter-Allied Commission on account, £1,000,000,000 sterling Treasury bearer bonds as a guarantee of the instalment payable before Ist May, 1921. There x must also be a further issue of bonds'for £2,000,000.000 before 102(1, and for £2,000.000,000 more at a date to be fixed. The ruling rate of interest is 5 per cent. An Allied Commission will fix the remainder of the Indemnity to be paid by Germany and the form that it shall take. The Allies maintain tho right to obtain payment of reparation, etc., in priority settlement of all other German debts, but will approve of exceptions.

SHIPPING AND TRADE. Germany will build 1,000,000 ions oi shipping for the 'Allies, spread over five years. Germany is to hand over all ships over ICOO tons, one-half of her ships between 100 tons and 1(100 tons, and one-fourth of her trawlers and fishing boats. Germany will he allowed to use her merchant shipping for two years. The vessels of the Allies are to enjoy the treatment extended to German vessels and most-favored nation treatment for at least five years. Gensany undertakes not to discriminate directly or indirectly ugainst liht) trade of Allied or Associated countries,, such provision to be enforced for five years unless extended by the League oi Nations. German nationality shall not continue to attach to persons who have been nationalised in an Allied or Associated State. An international conference is to be held annually to propose labor reforms for adoption by tho States. It will meet in Washington this year. Powers to which German territory is «eded [/range, Poland- aad the -States

holding mandates over the former German colonies excepted) will assume a covin in portion of the German pic-war debt.

Th-3 Allies', recognising the mutual desirability of the resumption of German industry, are prepared to all'ord Germany commercial facility's, for the purpose, oil conditions which will be laid down in advance, and'" subject to the speciiil economic situation created for tlic Allies by German nggrcssio7i. ARMIES OF OCCUPATION. Germany must bear the cost of the military occupation 'of the Rhineiand, which is an essential guarantee. Germany cannot be credited with the value of tho captured war material, but tlufsc will 'he recognised as a prior charge upon German assets of the payment for food supplies and raw material. Germany will be compelled to alienate the greater part of her foreign securities, and no longer continue intimately involved in the economic life of the Allies or of Russia. Owing to Germany's illegal aits many of the Allies are in a state of economic inferiority. Therefore, certain non-re-ciprocal conditions in the matter of commercial exchanges ..have been imposed for a minimum of five years. Reciprocity, however, will be applied whenever possible,