A sum of 2 milliards gold marks

2. a) A sum équivalent to 25 per cent of the value of ber exports

in each period of 12 montbs starting from first May 1921

as determined by the Commission or b) alternativeiy an équivalent amount as fixed in accordance

wkh any other index proposed by Germany and accepted by

tbe Commission.

S. A further sum équivalent to 1 per cent of the value of ber exports as above defined or alternativeiy an équivalent amount fixed as provided in b above, provided always that, when Germany shall hâve discharged ail her obligations under the schedule other than her liability in respect of outstanding bonds the amount to be paid in each year under this paragraph shall be reduced to the amount required in that year to meet the interest and sinking fund on the bonds then outstanding. Subject to the provisions of Article 5 tbe pay tuent to be made in respect of paragraph 1) above sball be made quarterly before the end of each quarter, i. e. before the 15th January, 15th April, 15th July and 15th October each year and the payments in respect of paragraph 2) and 3) above shall be made quarterly 15th November, 15th February, 15th May, 15th August and

672 Puissances alliées, Allemagne.

calculated on the basis of the exports in the last quarter but one preceding tbat quarter the tirst payment to made 1 5th Noveniber 1021.

Germauy will pay within 25 days from this notification one milliard goldmarks in gold or approved foreign bills or in drafts at three montbs on the German treasury endorsed by approved German banks and payable in London, Paris, New York or any other place, designated by the Réparation Commission. Thèse payments will be treated as the two first quarterly instaiments of the payments provided for in compliance with Article 4.

The Commission will within 25 days from this notification in accordance with paragraph I2d annex II of the Treaty as amended establish the spécial Subcommission to be called the Committee of Guarantees. The Coramittee of Guarantees will consist of représentatives of the allied powers now represented on the Réparation Commission ïncluding a représentative of the United States of America in the event of that Government desiring to make the appointaient, the Committee shall coopt not more than three représentatives of nationals of other powers whenever it shall appear to the commission that a sufficient portion of the bonds to be issued under this agreement is held by nationals of such powers to justify their représentation on the Committee of Guarantees.

The Committee of Guarantees is charged with the duty of securing the application of Articles 241 and 248 of the Treaty of Versailles. It shall supervise the application to the service of the bonds provided for in the Article 2, of the funds assigned as security for the payments to be made by Germany under paragraph 4. The funds to be so assigned shall be:

a) the proceeds of ail German maritime and hand customs and duties and in particular the proceeds of «11 important and export duties,

b) the proceeds of the levy of 25 per cent on the value of ail exports upon which a levy of not less than 25 per cent is applied under the législation referred to in Article 9,

c) the proceeds of such direct or indirect taxes or any other funds as may be proposed by the German Government and accepted by Committee of Guarantees in addition to or in substitution for the funds specified in a) or b) above.

The assigned funds shall be paid to accounts to be opened in the name of the Committee and supervised by it in gold or in foreign currency approved by the Committee. The équivalent of the 25 per cent levy referred to in paragraph b) shall be paid in German currency by the German Government to the exporter. The German Government shall

Désarmement, — Réparations. 673

notify to the Committee of Guarantees any proposed action which may tend to diminisli the proceeds of any of tbe assigned funds and shall, if the Committee demand it, substitute some other approved funds. The Committee of Guarantees shall be charged further with the duty of conducting on behalf of tbe Commission tbe examination provided for in paragraph 12 b of annex II part VIII of the ïreaty of Versailles and of verifying on behalf of the said Commission and if necessary of correcting the amount declared by the German Government as the value of German exports for the purpose of the calculation of the sum payable in each year under Article 4, 2) and the amounts of the funds assigned under this Article to the service of the bonds. The Committee shall be entitled to take such raeasures as it may deem necessary for the proper discharge of its duties. The Committee of Guarantees is not authorised to interfère in German administration.

Germany shall on demand subject to the prior approval of the Commission provide such material and labour as any of the al lied powers may require towards the restoration of the devastated areas of that power to proceed with the restoration or development of its industrial or économie life. The value of such material and labour shall be determined by a valuer appointed by Germany and a valuer appointed by the power concerned and in default of agreement by a référée nominated by the commission. This provision as to valuation does not apply to deliveries under annexes III, IV, V and VI to part VIII of the Txeaty.

Germany shall take every necessary measure of législative and administrative action to facilitate the opération of the • German réparation (recovery) act 1921 in force in the United Kingdom and of any similar législation enacted by any allied power so long as such législation remains in force. Payments effected by the opération of such législation shall be credited to Germany on account of the payment to be made by her under Article 4, 2). The équivalent in German currency shall be paid by the German Government to the exporter.

Payment for ail services rendered, ail deliveries in kind and ail receipts under Article 9 shall be made to the Réparation Commission by the allied power receiving the same in cash or current coupons within one month of the receipt thereof and shall be credited to Germany on account of the payments to be made by her under Article 4.

The sum payable under Article 4, 3) and the surplus receipts by the Commission under Article 4, 1) and 2) in each year not required for the payment of interest and sinking fund on bonds outstanding in that year

67 A Puissances alliées, Allemagne.

shall be accumulated and applied so far as thev will extend at such timeg as tbe Commission may think fit by tbe Commission in paying simple interest not exceeding 2,5 per cent per annum from May lst 1921 to May lst 1926 and tbereafter at a rate not exceeding 5 per cent on the balance of the debt not covered by the bonds the issued. No interest tbereon shall be payable otherwise.

The présent schedule does not modify the provisions securing the exécution of the Treaty of Versailles which are applicable to the stipulations of the présent schedule.

May 5th 1921.

Traduction allemande.

Erklârung der Alliierten Regierungen vom 5. Mai 1921. Die Alliierten Mâchte nehmen von der Tatsache Kenntnis, dass trotz der wiederholten Zugestândnisse, die die Alliierten seit der Unterzeichnung des Vertrages von Versailles gemacht haben, und trotz der Mahnungen und Sanktionen, die in Spaa und Paris vereinbart wurden, sowie der in London angekùndigten und seitdem angewandten Sanktionen die Deutsche Regierung noch immer im Riïckstande mit der Erfullung der Verpflichtungen ist, die ihr nach dem Vertrag von Versailles obliege» hinsichtlich