versailles treaty 231-247

PART VIII.

REPARATION.

SECTION l.

GENERAL PROVISIONS.

ARTICLE 231.

The Allied and Associated Governments affirm and Germany accepts the
responsibility of Germany and her allies for causing all the loss and damage to
which the Allied and Associated Governments and their nationals have been
subjected as a consequence of the war imposed upon them by the aggression of
Germany and her allies.

ARTICLE 232.

The Allied and Associated Governments recognise that the resources of Germany are
not adequate, after taking into account permanent diminutions of such resources
which will result from other provisions of the present Treaty, to make complete
reparation for all such loss and damage.

The Allied and Associated Governments, however, require, and Germany undertakes,
that she will make compensation for all damage done to the civilian population of
the Allied and Associated Powers and to their property during the period of the
belligerency of each as an Allied or Associated Power against Germany by such
aggression by land, by sea and from the air, and in general all damage as defined
in Annex l hereto.

In accordance with Germany's pledges, already given, as to complete restoration
for Belgium, Germany undertakes, in addition to the compensation for damage
elsewhere in this Part provided for, as a consequence of the violation of the
Treaty of 1839, to make reimbursement of all sums which Belgium has borrowed from
the Allied and Associated Governments up to November 11, 1918, together with
interest at the rate of five per cent (5%) per annum on such sums. This amount
shall be determined by the Reparation Commission, and the German Government
undertakes thereupon forthwith to make a special issue of bearer bonds to an
equivalent amount payable in marks gold, on May 1, 1926, or, at the option of the
German Government, on the 1st of May in any year up to 1926. Subject to the
foregoing, the form of such bonds shall be determined by the Reparation
Commission. Such bonds shall be handed over to the Reparation Commission, which
has authority to take and acknowledge receipt thereof on behalf of Belgium.

ARTICLE 233.

The amount of the above damage for which compensation is to be made by Germany
shall be determined by an Inter-Allied Commission, to be called the Reparation
Commission and constituted in the form and with the powers set forth hereunder
and in Annexes II to VII inclusive hereto.

This Commission shall consider the claims and give to the German Government a
just opportunity to be heard.

The findings of the Commission as to the amount of damage defined as above shall
be concluded and notified to the German Government on or before May 1, 1921, as
representing the extent of that Government's obligations. ,

The Commission shall concurrently draw up a schedule of payments prescribing the
time and manner for securing and discharging the entire obligation within a
period of thirty years from May 1, 1921. If, however, within the period
mentioned, Germany fails to discharge her obligations, any balance remaining
unpaid may, within the discretion of the Commission, be postponed for settlement
in subsequent years, or may be handled otherwise in such manner as the Allied and
Associated Governments, acting in accordance with the procedure laid down in this
Part of the present Treaty, shall determine.

ARTICLE 234.

The Reparation Commission shall after May 1 , 1921, from time to time, consider
the resources and capacity of Germany, and, after giving her representatives a
just opportunity to be heard, shall have discretion to extend the date, and to
modify the form of payments, such as are to be provided for in accordance with
Article 233; but not to cancel any part, except with the specific authority of
the several Governments represented upon the Commission.

ARTICLE 235.

In order to enable the Allied and Associated Powers to proceed at once to the
restoration of their industrial and economic life, pending the full determination
of their claims, Germany shall pay in such installments and in such manner
(whether in gold, commodities, ships, securities or otherwise) as the Reparation
Commission may fix, during 1919, 1920 and the first four months Of 1921 , the
equivalent of 20,000,000,000 gold marks. Out of this sum the expenses of the
armies of occupation subsequent to the Armistice of November 11, 1918, shall
first be met, and such supplies of food and raw materials as may be judged by the
Governments of the Principal Allied and Associated Powers to be essential to
enable Germany to meet her obligations for reparation may also, with the approval
of the said Governments, be paid for out of the above sum. The balance shall be
reckoned towards liquidation of the amounts due for reparation. Germany shall
further deposit bonds as prescribed in paragraph 12 (c) Of Annex II hereto.

ARTICLE 236.

Germany further agrees to the direct application of her economic resources to
reparation as specified in Annexes, III, IV, V, and VI, relating respectively to
merchant shipping, to physical restoration, to coal and derivatives of coal, and
to dyestuffs and other chemical products; provided always that the value of the
property transferred and any services rendered by her under these Annexes,
assessed in the manner therein prescribed shall be credited to her towards
liquidation of her obligations under the above Articles.

ARTICLE 237.

The successive installments, including the above sum, paid over by Germany in
satisfaction of the above claims will be divided by the Allied and Associated
Governments in proportions which have been determined upon by them in advance on
a basis of general equity and of the rights of each.

For the purposes of this division the value of property transferred and services
rendered under Article 243, and under Annexes III, IV, V, VI, and VII, shall be
reckoned in the same manner as cash payments effected in that year.

ARTICLE 238.

In addition to the payments mentioned above Germany shall effect, in accordance
with the procedure laid down by the Reparation Commission, restitution in cash of
cash taken away, seized or sequestrated, and also restitution of animals, objects
of every nature and securities taken away, seized or sequestrated, in the cases
in which it proves possible to identify them in territory belonging to Germany or
her allies.

Until this procedure is laid down, restitution will continue in accordance with
the provisions of the Armistice of November 11, 1918, and its renewals and the
Protocols thereto.

ARTICLE 239.

The German Government undertakes to make forthwith the restitution contemplated
by Article 238 and to make the payments and deliveries contemplated by Articles
233, 234, 235 and 236.

ARTICLE 240.

The German Government recognises the Commission provided for by Article 233 as
the same may be constituted by the Allied and Associated Governments in
accordance with Annex II, and agrees irrevocably to the possession and exercise
by such Commission of the power and authority given to it under the present
Treaty.

The German Government will supply to the Commission all the information which the
Commission may require relative to the financial situation and operations and to
the property, productive capacity, and stocks and current production of raw
materials and manufactured articles of Germany and her nationals, and further any
information relative to military operations which in the judgment of the
Commission may be necessary for the assessment of Germany's liability for
reparation as defined in Annex I.

The German Government will accord to the members of the Commission and its
authorised agents the same rights and immunities as are enjoyed in Germany by
duly accredited diplomatic agents of friendly Powers.

Germany further agrees to provide for the salaries and expenses of the Commission
and of such staff as it may employ.

ARTICLE 241.

Germany undertakes to pass, issue and maintain in force any legislation, orders
and decrees that may be necessary to give complete effect to these provisions.

ARTICLE 242.

The provisions of this Part of the present Treaty do not apply to the property,
rights and interests referred to in Sections III and IV of Part X (Economic
Clauses) of the present Treaty, nor to the product of their liquidation, except
so far as concerns any final balance in favour of Germany under Article 243 (a).

ARTICLE 243.

The following shall be reckoned as credits to Germany in respect of her
reparation obligations:

(a) Any final balance in favour of Germany under Section V (Alsace-Lorraine) of
Part III (Political Clauses for Europe) and Sections III and IV of Part X
(Economic Clauses) of the present Treaty;

(b) Amounts due to Germany in respect of transfers under Section IV (Saar Basin)
of Part III (Political Clauses for Europe), Part IX Financial Clauses), and Part
XII (Ports, Waterways and Railways);

(c) Amounts which in the judgment of the Reparation Commission should be credited
to Germany on account of any other transfers under the present Treaty of
property, rights, concessions or other interests.

In no case, however, shall credit be given for property restored in accordance
with Article 238 of the present Part.

ARTICLE 244.

The transfer of the German submarine cables which do not form the subject of
particular provisions of the present Treaty is regulated by Annex VII hereto.

ANNEX I.

Compensation may be claimed from Germany under Article 232 above in respect of
the total damage under the following categories:

(l) Damage to injured persons and to surviving dependents by personal injury to
or death of civilians caused by acts of war, including bombardments or other
attacks on land, on sea, or from the air, and all the direct consequences
thereof, and of all operations of war by the two groups of belligerents wherever
arising.

(2) Damage caused by Germany or her allies to civilian victims of acts of
cruelty, violence or maltreatment (including injuries to life or health as a
consequence of imprisonment, deportation, internment or evacuation, of exposure
at sea or of being forced to labour), wherever arising, and to the surviving
dependents of such victims.

(3) Damage caused by Germany or her allies in their own territory or in occupied
or invaded territory to civilian victims of all acts injurious to health or
capacity to work, or to honour, as well as to the surviving dependents of such
victims.

(4) Damage caused by any kind of maltreatment of prisoners of war.

(5) As damage caused to the peoples of the Allied and Associated Powers, all
pensions and compensation in the nature of pensions to naval and military victims
of war (including members of the air force), whether mutilated, wounded, sick or
invalided, and to the dependents of such victims, the amount due to the Allied
and Associated Governments being calculated for each of them as being the
capitalised cost of such pensions and compensation at the date of the coming into
force of the present Treaty on the basis of the scales in force in France at such
date.

(6) The cost of assistance by the Government of the Allied and Associated Powers
to prisoners of war and to their families and dependents.

(7) Allowances by the Governments of the Allied and Associated Powers to the
families and dependents of mobilised persons or persons serving with the forces,
the amount due to them for each calendar year in which hostilities occurred being
calculated for each Government on the basis of the average scale for such
payments in force in France during that year.

(8) Damage caused to civilians by being forced by Germany or her allies to labour
without just remuneration.

(9) Damage in respect of all property wherever situated belonging to any of the
Allied or Associated States or their nationals, with the exception of naval and
military works or materials, which has been carried off, seized, injured or
destroyed by the acts of Germany or her allies on land, on sea or from the air,
or damage directly in consequence of hostilities or of any operations of war.

(10) Damage in the form of levies, fines and other similar exactions imposed by
Germany or her allies upon the civilian population.

ANNEX II.

The Commission referred to in Article 233 shall be called "The Reparation
Commission" and is hereinafter referred to as "the Commission".

Delegates to this Commission shall be nominated by the United States of America,
Great Britain, France, Italy, Japan, Belgium and the Serb-Croat-Slovene State.
Each of these Powers will appoint one Delegate and also one Assistant Delegate,
who will take his place in case of illness or necessary absence, but at other
times will only have the right to be present at proceedings without taking any
part therein.

On no occasion shall the Delegates of more than five of the above Powers have the
right to take part in the proceedings of the Commission and to record their
votes. The Delegates of the United States, Great Britain, France and Italy shall
have this right on all occasions. The Delegate of Belgium shall have this right
on all occasions other than those referred to below. The Delegate of Japan shall
have this right on occasions when questions relating to damage at sea, and
questions arising under Article 200 of Part IX (Financial Clauses) in which
Japanese interests are concerned, are under consideration. The Delegate of the
Serb-Croat-Slovene State shall have this right when questions relating to
Austria, Hungary or Bulgaria are under consideration.

Each Government represented on the Commission shall have the right to withdraw
therefrom upon twelve months, notice filed with the Commission and confirmed in
the course of the sixth month after the date of the original notice.

Such of the other Allied and Associated Powers as may be interested shall have
the right to appoint a Delegate to be present and act as Assessor only while
their respective claims and interests are under examination or discussion, but
without the right to vote.

In case of the death, resignation or recall of any Delegate, Assistant Delegate
or Assessor, a successor to him shall be nominated as soon as possible.

The Commission will have its principal permanent Bureau in Paris and will hold
its first meeting in Paris as soon as practicable after the coming into force of
the present Treaty, and thereafter will meet in such place or places and at such
time as it may deem convenient and as may be necessary for the most expeditious
discharge of its duties.

At its first meeting the Commission shall elect, from among the Delegates
referred to above, a Chairman and a Vice-Chairman, who shall hold office for one
year and shall be eligible for re-election. If a vacancy in the Chairmanship or
Vice-Chairmanship should occur during the annual period, the Commission shall
proceed to a new election for the remainder of the said period.

The Commission is authorised to appoint all necessary officers, agents and
employees who may be required for the execution of its functions, and to fix
their remuneration; to constitute committees, whose members need not necessarily
be members of the Commission, and to take all executive steps necessary for the
purpose of discharging its duties; and to delegate authority and discretion to
officers, agents and committees.

All proceedings of the Commission shall be private, unless, on particular
occasions, the Con mission shall otherwise determine for special reasons.

The Commission shall be required, if the German Government so desire, to hear,
within a period which it will fix from time to time, evidence and arguments on
the part of Germany on any question connected with her capacity to pay.

10.

The Commission shall consider the claims and give to the German Government a just
opportunity to be heard, but not to take any part whatever in the decisions of
the Commission The Commission shall afford a similar opportunity to the allies of
Germany, when it shall consider that their interests are in question

11.

The Commission shall not be bound by any particular code or rules of law or by
any particular rule of evidence or of procedure, but shall be guided by justice,
equity and good faith. Its decisions must follow the same principles and rules in
all cases where they are applicable. It will establish rules relating to methods
of proof of claims. It may act on any trustworthy modes of computation.

12.

The Commission shall have all the powers conferred upon it, and shall exercise
all the functions assigned to it, by the present Treaty.

The Commission shall in general have wide latitude as to its control and handling
of the whole reparation problem as dealt with in this Part of the present Treaty
and shall have authority to interpret its provisions. Subject to the provisions
of the present Treaty, the Commission is constituted by the several Allied and
Associated Governments referred to in paragraphs 2 and 3 above as the exclusive
agency of the said Governments respectively for receiving, selling, holding, and
distributing the reparation payments to be made by Germany under this Part of the
present Treaty. The Commission must comply with the following conditions and
provisions:

(a) Whatever part of the full amount of the proved claims is not paid in gold, or
in ships, securities and commodities or otherwise, Germany shall be required,
under such conditions as the Commission may determine, to cover by way of
guarantee by an equivalent issue of bonds, obligations or otherwise, in order to
constitute an acknowledgment of the said part of the debt.

(b) In periodically estimating Germany's capacity to pay, 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 become a charge upon all her
revenues prior to that for the 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 proportionately as that of any of the Powers represented on the
Commission.

(c) In order to facilitate and continue the immediate restoration of the economic
life of the Allied and Associated countries, the Commission will as provided in
Article 235 take from Germany by way of security for and acknowledgment of her
debt a first installment of gold bearer bonds free of all taxes and charges of
every description established or to be established by the Government of the
German Empire or of the German States, or by any authority subject to them; these
bonds will be delivered on account and in three portions, the marks gold being
payable in conformity with Article 262 of Part IX (Financial Clauses) of the
present Treaty as follows:

(1) To be issued forthwith, 20,000,000,000 Marks gold bearer bonds, payable not
later than May l, 1921, without interest. There shall be specially applied
towards the amortisation of these bonds the payments which Germany is pledged to
make in conformity with Article 235, after deduction of the sums used for the
reimbursement of expenses of the armies of occupation and for payment of
foodstuffs and raw materials. Such bonds as have not been redeemed by May l,
1921, shall then be exchanged for new bonds of the same type as those provided
for below (paragraph l2, C, (2).

(2) To be issued forthwith, further 40,000,000,000 Marks gold bearer bonds,
bearing interest at 2-1/2 per cent. per annum between 1921 and l926, and
thereafter at 5 per cent. per annum with an additional l per cent. for
amortisation beginning in 1926 on the whole amount of the issue.

(3) To be delivered forthwith a covering undertaking in writing to issue when,
but not until, the Commission is satisfied that Germany can meet such interest
and sinking fund obligations, a further installment of 40,000,000,000 Marks gold
5 per cent. bearer bonds, the time and mode of payment of principal and interest
to be determined by the Commission.

The dates for payment of interest, the manner of applying the amortisation fund,
and all other questions relating to the issue, management and regulation of the
bond issue shall be determined by the Commission from time to time.

Further issues by way of acknowledgment and security may be required as the
Commission subsequently determines from time to time.

(d) In the event of bonds, obligations or other evidence of indebtedness issued
by Germany by way of security for or acknowledgment of her reparation debt being
disposed of outright, not by way of pledge, to persons other than the several
Governments in whose favour Germany's original reparation indebtedness was
created, an amount of such reparation indebtedness shall be deemed to be
extinguished corresponding to the nominal value of the bonds, etc., so disposed
of outright, and the obligation of Germany in respect of such bonds shall be
confined to her liabilities to the holders of the bonds, as expressed upon their
face.

(e) The damage for repairing, reconstructing and rebuilding property in the
invaded and devastated districts, including reinstallation of furniture,
machinery and other equipment, will be calculated according to the cost at the
dates when the work is done.

(f) Decisions of the Commission relating to the total or partial cancellation of
the capital or interest of any verified debt of Germany must be accompanied by a
statement of its reasons.

13.

As to voting, the Commission will observe the following rules:

When a decision of the Commission is taken, the votes of all the Delegates
entitled to vote, or in the absence of any of them, of their Assistant Delegates,
shall be recorded. Abstention from voting is to be treated as a vote against the
proposal under discussion. Assessors have no vote.

On the following questions unanimity is necessary:

(a) Questions involving the sovereignty of any of the Allied and Associated
Powers, or the cancellation of the whole or any part of the debt or obligations
of Germany;

(b) Questions of determining the amount and conditions of bonds or other
obligations to be issued by the German Government and of fixing the time and
manner for selling, negotiating or distributing such bonds;

(c) Any postponement, total or partial, beyond the end of 1930, of the payment of
installments falling due between May 1, 1921, and the end of 1926 inclusive;

(d) Any postponement, total or partial, of any installment falling due after 1926
for a period exceeding three years;

(e) Questions of applying in any particular case a method of measuring damages
different from that which has been previously applied in a similar case;

(f) Questions of the interpretation of the provisions of this Part of the present
Treaty.

All other questions shall be decided by the vote of a majority.

In case of any difference of opinion among the Delegates, which cannot be solved
by reference to their Governments, upon the question whether a given case is one
which requires a unanimous vote for its decision or not, such difference shall be
referred to the immediate arbitration of some impartial person to be agreed upon
by their Governments, whose award the Allied and Associated Governments agree to
accept.

14.

Decisions of the Commission, in accordance with the powers conferred upon it,
shall forthwith become binding and may be put into immediate execution without
further Proceedings.

15.

The Commission will issue to each of the interested Powers, in such form as the
Commission shall fix:

(l) A certificate stating that it holds for the account of the said Power bonds
of the issues mentioned above, the said certificate, on the demand of the Power
concerned, being divisible in a number of parts not exceeding five;

(2) From time to time certificates stating the goods delivered by Germany on
account of her reparation debt which it holds for the account of the said Power.

The said certificates shall be registered, and upon notice to the Commission, may
be transferred by endorsement.

When bonds are issued for sale or negotiation, and when goods are delivered by
the Commission, certificates to an equivalent value must be withdrawn.

16.

Interest shall be debited to Germany as from May 1, 1921, in respect of her debt
as determined by the Commission, after allowing for sums already covered by cash
payments or their equivalent, or by bonds issued to the Commission, or under
Article 243. The rate of interest shall be 5 per cent. unless the Commission
shall determine at some future time that circumstances justify a variation of the
rate.

The Commission, in fixing on May 1, 1921, the total amount of the debt of
Germany, may take account of interest due on sums arising out of the reparation
of material damage as from November 11, 1918, up to May 1, 1921.

17.

In case of default by Germany in the performance of any obligation under this
Part of the present Treaty, the Commission will forthwith give notice of such
default to each of the interested Powers and may make such recommendations as to
the action to be taken in consequence of such default as it may think necessary.

18.

The measures which the Allied and Associated Powers shall have the 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 prohibitions and reprisals and
in general such other measures as the respective Governments may determine to be
necessary in the circumstances.

19.

Payments required to be made in gold or its equivalent on account of the proved
claims of the Allied and Associated Powers may at any time be accepted by the
Commission in the form of chattels, properties, commodities, businesses, rights,
concessions within or without German territory, ships, bonds, shares or
securities of any kind, or currencies of Germany or other States, the value of
such substitutes for good being fixed at a fair and just amount by the Commission
itself.

20.

The Commission, in fixing or accepting payment in specified properties or rights,
shall have due regard for any legal or equitable interests of the Allied and
Associated Powers or of neutral Powers or of their nationals therein.

21.

No member of the Commission shall be responsible, except to the Government
appointing him, for any action or omission as such member. No one of the Allied
or Associated Governments assumes any responsibility in respect of any other
Government.

22.

Subject to the provisions of the present Treaty this Annex may be amended by the
unanimous decision of the Governments represented from time to time upon the
Commission.

When all the amounts due from Germany and her allies under the present Treaty or
the decisions of the Commission have been discharged and all sums received, or
their equivalents, shall have been distributed to the Powers interested, the
Commission shall be dissolved.

ANNEX III.

Germany recognises the right of the Allied and Associated Powers to the
replacement, ton for ton (gross tonnage) and class for class, of all merchant
ships and fishing boats lost or damaged owing to the war.

Nevertheless, and in spite of the fact that the tonnage of German shipping at
present in existence is much less than that lost by the Allied and Associated
Powers in consequence of the German aggression, the right thus recognised will be
enforced on German ships and boats under the following conditions:

The German Government, on behalf of themselves and so as to bind all other
persons interested, cede to the Allied and Associated Governments the property in
all the German merchant ships which are of 1,600 tons gross and upwards; in
one-half, reckoned in tonnage, of the ships which are between 1,000 tons and
1,600 tons gross; in one-quarter, reckoned in tonnage, of the steam trawlers; and
in one-quarter, reckoned in tonnage, of the other fishing boats.

The German Government will, within two months of the coming into force of the
present Treaty, deliver to the Reparation Commission all the ships and boats
mentioned in paragraph 1.

The ships and boats mentioned in paragraph 1 include all ships and boats which
(a) fly, or may be entitled to fly, the German merchant flag; or (b) are owned by
any German national, company or corporation or by any company or corporation
belonging to a country other than an Allied or Associated country and under the
control or direction of German nationals; or (c) are now under construction (1)
in Germany, (2) in other than Allied or Associated countries for the account of
any German national, company or corporation.

For the purpose of providing documents of title for the ships and boats to be
handed over as above mentioned, the German Government will:

(a) Deliver to the Reparation Commission in respect of each vessel a bill of sale
or other document of title evidencing the transfer to the Commission of the
entire property in the vessel free from all encumbrances, charges and liens of
all kinds, as the Commission may require;

(b) Take all measures that may be indicated by the Reparation Commission for
ensuring that the ships themselves shall be placed at its disposal.

As an additional part of reparation, Germany agrees to cause merchant ships to be
built in German yards for the account of the Allied and Associated Governments as
follows:

(a) Within three months of the coming into force of the present Treaty, the
Reparation Commission will notify to the German Government the amount of tonnage
to be laid down in German ship-yards in each of the two years next succeeding the
three months mentioned above.

(b) Within two years of the coming into force of the present Treaty, the
Reparation Commission will notify to the German Government the amount of tonnage
to be laid down in each of the three years following the two years mentioned
above.

(d) The specifications of the ships to be built, the conditions under which they
are to be built and delivered, the price per ton at which they are to be
accounted for by the Reparation Commission, and all other questions relating to
the accounting ordering, building and delivery of the ships, shall be determined
by the Commission.

Germany undertakes to restore in kind and in normal condition of upkeep to the
Allied and Associated Powers, within two months of the coming into force of the
present Treaty, in accordance with procedure to be laid down by the Reparation
Commission, any boats and other movable appliances belonging to inland navigation
which since August 1, 1914, have by any means whatever come into her possession
or into the possession of her nationals, and which can be identified

With a view to make good the loss in inland navigation tonnage from whatever
cause arising, which has been incurred during the war by the Allied and
Associated Powers, and which cannot be made good by means of the restitution
prescribed above, Germany agrees to cede to the Reparation Commission a portion
of the German river fleet up to the amount of the loss mentioned above, provided
that such cession shall not exceed 20 per cent. of the river fleet as it existed
on November 11, 1918.

The conditions of this cession shall be settled by the arbitrators referred to in
Article 339 of Part XII (Ports, Waterways and Railways) of the present Treaty,
who are charged with the settlement of difficulties relating to the apportionment
of river tonnage resulting from the new international regime applicable to
certain river systems or from the territorial changes affecting those systems.

Germany agrees to take any measures that may be indicated to her by the
Reparation Commission for obtaining the full title to the property in all ships
which have during the war been transferred, or are in process of transfer, to
neutral flags, without the consent of the Allied and Associated Governments.

Germany waives all claims of any description against the Allied and Associated
Governments and their nationals in respect of the detention, employment, loss or
damage of any German ships or boats, exception being made of payments due in
respect of the employment of ships in conformity with the Armistice Agreement of
January 13, 1919, and subsequent Agreements.

The handing over of the ships of the German mercantile marine must be continued
without interruption in accordance with the said Agreement.

Germany waives all claims to vessels or cargoes sunk by or in consequence of
naval action and subsequently salved, in which any of the Allied or Associated
Governments or their nationals may have any interest either as owners,
charterers, insurers or otherwise, notwithstanding any decree of condemnation
which may have been made by a Prize Court of Germany or of her allies.

ANNEX IV.

The Allied and Associated Powers require, and Germany undertakes, that in part
satisfaction of her obligations expressed in the present Part she will, as
hereinafter provided, devote her economic resources directly to the physical
restoration of the invaded areas of the Allied and Associated Powers, to the
extent that these Powers may determine.

The Allied and Associated Governments may file with the Reparation Commission
lists showing:

(a) Animals, machinery, equipment, tools and like articles of a commercial
character, which have been seized, consumed or destroyed by Germany or destroyed
in direct consequence of military operations, and which such Governments, for the
purpose of meeting immediate and urgent needs, desire to have replaced by animals
and articles of the same nature which are in being in German territory at the
date of the coming into force of the present Treaty;

(b) Reconstruction materials (stones, bricks, refractory bricks, tiles, wood,
window-glass, steel, lime, cement, etc.), machinery, heating apparatus, furniture
and like articles of a commercial character which the said Governments desire to
have produced and manufactured in Germany and delivered to them to permit of the
restoration of the invaded areas.

The lists relating to the articles mentioned in 2 (a) above shall be filed within
sixty days after the date of the coming into force of the present Treaty.

The lists relating to the articles in 2 (b) above shall be filed on or before
December 31, 1919.

The lists shall contain all such details as are customary in commercial contracts
dealing with the subject matter, including specifications, dates of delivery (but
not extending over more than four years), and places of delivery, but not price
or value, which shall be fixed as hereinafter provided by the Commission.

Immediately upon the filing of such lists with the Commission, the Commission
shall consider the amount and number of the materials and animals mentioned in
the lists provided for above which are to be required of Germany. In reaching a
decision on this matter the Commission shall take into account such domestic
requirements of Germany as it deems essential for the maintenance of Germany's
social and economic life, the prices and dates at which similar articles can be
obtained in the Allied and Associated countries as compared with those to be
fixed for German articles, and the general interest of the Allied and Associated
Governments that the industrial life of Germany be not so disorganised as to
affect adversely the ability of Germany to perform the other acts of reparation
stipulated for.

Machinery, equipment, tools and like articles of a commercial character in actual
industrial use are not, however, to be demanded of Germany unless there is no
free stock of such articles respectively which is not in use and is available,
and then not m excess of thirty per cent. of the quantity of such articles in use
in any one establishment or undertaking.

The Commission shall give representatives of the German Government an opportunity
and a time to be heard as to their capacity to furnish the said materials,
articles and animals.

The decision of the Commission shall thereupon and at the earliest possible
moment be communicated to the German Government and to the several interested
Allied and Associated Governments.

The German Government undertakes to deliver the materials, articles and animals
as specified in the said communication, and the interested Allied and Associated
Governments severally agree to accept the same, provided they conform to the
specification given, or are not, in the judgment of the Commission, unfit to be
utilised in the work of reparation.

The Commission shall determine the value to be attributed to the materials,
articles and animals to be delivered in accordance with the foregoing, and the
Allied or Associated Power receiving the same agrees to be charged with such
value, and the amount thereof shall be treated as a payment by Germany to be
divided in accordance with Article 237 of this Part of the present Treaty.

In cases where the right to require physical restoration as above provided is
exercised, the Commission shall ensure that the amount to be credited against the
reparation obligation of Germany shall be the fair value of work done or
materials supplied by Germany, and that the claim made by the interested Power in
respect of the damage so repaired by physical restoration shall be discharged to
the extent of the proportion which the damage thus repaired bears to the whole of
the damage thus claimed for.

As an immediate advance on account of the animals referred to in paragraph 2 (a)
above, Germany undertakes to deliver in equal monthly installments in the three
months following the coming into force of the present Treaty the following
quantities of live stock:

(1) To the French Government.

500 stallions (3 to 7 years);

30,000 fillies and mares (18 months to 7 years), type: Ardennais, Boulonnais or
Belgian;

2,000 bulls (18 months to 3 years);

90,000 milch cows (2 to 6 years);

1,000 rams;

100,000 sheep;

10,000 goats.

(2) To the Belgian Government.

200 stallions (3 to 7 years), large Belgian type;

5,000 mares (3 to 7 years), large Belgian type;

5,000 fillies (18 months to 3 years), large Belgian type;

2,000 bulls (18 months to 3 years);

50,000 milch cows (2 to 6 years);

40,000 heifers;

200 rams;

20,000 Sheep;

15,000 sows.

The animals delivered shall be of average health and condition.

To the extent that animals so delivered cannot be identified as animals taken
away or seized, the value of such animals shall be credited against the
reparation obligations of Germany in accordance with paragraph 5 of this Annex.

Without waiting for the decisions of the Commission referred to in paragraph 4 of
this Annex to be taken, Germany must continue the delivery to France of the
agricultural material referred to in Article III of the renewal dated January 16,
1919, of the Armistice.

ANNEX V.

Germany accords the following options for the delivery of coal and derivatives of
coal to the undermentioned signatories of the present Treaty.

Germany undertakes to deliver to France seven million tons of coal per year for
ten years. In addition, Germany undertakes to deliver to France annually for a
period not exceeding ten years an amount of coal equal to the difference between
the annual production before the war of the coal mines of the Nord and Pas de
Calais, destroyed as a result of the war, and the production of the mines of the
same area during the years in question: such delivery not to exceed twenty
million tons in any one year of the first five years, and eight million tons in
any one year of the succeeding five years.

It is understood that due diligence will be exercised in the restoration of the
destroyed mines in the Nord and the Pas de Calais.

Germany undertakes to deliver to Belgium eight million tons of coal annually for
ten years.

Germany undertakes to deliver to Italy up to the following . quantities of coal:

July 1919 to June 1920 4-1/2 million tons, 1920 1921 6
1921 1922 7-1/2 1922 1923 8 1923 1924
and each of the following five years 8-1/2

At least two-thirds of the actual deliveries to be land-borne.

Germany further undertakes to deliver annually to Luxemburg, if directed by the
Reparation Commission, a quantity of coal equal to the pre-war annual consumption
of German coal in Luxemburg.

The prices to be paid for coal delivered under these options shall be as follows:

(a) For overland delivery, including delivery by barge, the German pithead price
to German nationals, plus the freight to French, Belgian, Italian or Luxemburg
frontiers, provided that the pithead price does not exceed the pithead price of
British coal for export. In the case of Belgian bunker coal, the price shall not
exceed the Dutch bunker price.

Railroad and barge tariffs shall not be higher than the lowest similar rates paid
in Germany.

(b) For sea delivery, the German export price f. o. b. German ports, or the
British export price f. o. b. British ports, whichever may be lower.

The Allied and Associated Governments interested may demand the delivery, in
place of coal, of metallurgical coke in the proportion of 3 tons of coke to 4
tons of coal.

Germany undertakes to deliver to France, and to transport to the French frontier
by rail or by water, the following products, during each of the three years
following the coming into force of this Treaty:

Benzol 35,000 tons.

Coal tar 50,000 tons

Sulphate of ammonia 30,000 tons.

All or part of the coal tar may, at the option of the French Government, be
replaced by corresponding quantities of products of distillation, such as light
oils, heavy oils, anthracene, napthalene or pitch

The price paid for coke and for the articles referred to in the preceding
paragraph shall be the same as the price paid by German nationals under the same
conditions of shipment to the French frontier or to the German ports, and shall
be subject to any advantages which may be accorded similar products furnished to
German nationals.

10.

The foregoing options shall be exercised through the intervention of the
Reparation Commission, which, subject to the specific provisions hereof, shall
have power to determine all questions relative to procedure and the qualities and
quantities of products, the quantity of coke which may be substituted for coal,
and the times and modes of delivery and payment. In giving notice to the German
Government of the foregoing options the Commission shall give at least 120 days,
notice of deliveries to be made after January 1, 1920, and at least 30 days,
notice of deliveries to be made between the coming into force of this Treaty and
January 1, 1920. Until Germany has received the demands referred to in this
paragraph, the provisions of the Protocol of December�25, 1918, (Execution of
Article VI of the Armistice of November 11, 1918) remain in force. The notice to
be given to the German Government of the exercise of the right of substitution
accorded by paragraphs 7 and 8 shall be such as the Reparation Commission may
consider sufficient. If the Commission shall determine that the full exercise of
the foregoing options would interfere unduly with the industrial requirements of
Germany, the Commission is authorised to postpone or to cancel deliveries, and in
so doing to settle all questions of priority; but the coal to replace coal from
destroyed mines shall receive priority over other deliveries.

ANNEX VI.

Germany accords to the Reparation Commission an option to require as part of
reparation the delivery by Germany of such quantities and kinds of dyestuffs and
chemical drugs as the Commission may designate, not exceeding 50 per cent. of the
total stock of each and every kind of dyestuff and chemical drug in Germany or
under German control at the date of the coming into force of the present Treaty.

This option shall be exercised within sixty days of the receipt by the Commission
of such particulars as to stocks as may be considered necessary by the
Commission.

Germany further accords to the Reparation Commission an option to require
delivery during the period from the date of the coming into force of the present
Treaty until January 1, 1920, and during each period of six months thereafter
until January 1 , 1925, of any specified kind of dyestuff and chemical drug up to
an amount not exceeding 25 per cent. of the German production of such dyestuffs
and chemical drugs during the previous six months period. If in any case the
production during such previous six months was, in the opinion of the Commission,
less than normal, the amount required may be 25 per cent. of the normal
production.

Such option shall be exercised within four weeks after the receipt of such
particulars as to production and in such form as may be considered necessary by
the Commission; these particulars shall be furnished by the German Government
immediately after the expiration of each six months period.

For dyestuffs and chemical drugs delivered under paragraph 1 , the price shall be
fixed by the Commission having regard to prewar net export prices and to
subsequent increases of cost.

For dyestuffs and chemical drugs delivered under paragraph 2, the price shall be
fixed by the Commission having regard to pre-war net export prices and subsequent
variations of cost, or the lowest net selling price of similar dyestuffs and
chemical drugs to any other purchaser.

[See Map The Former German Cables]

All details, including mode and times of exercising the options, and making
delivery, and all other questions arising under this arrangement shall be
determined by the Reparation Commission; the German Government will furnish to
the Commission all necessary information and other assistance which it may
require.

The above expression ,,dyestuffs and chemical drugs,, includes all synthetic dyes
and drugs and intermediate or other products used in connection with dyeing, so
far as they are manufactured for sale. The present arrangement shall also apply
to cinchona bark and salts of quinine.

ANNEX VII.

Germany renounces on her own behalf and on behalf of her nationals in favour of
the Principal Allied and Associated Powers all rights, titles or privileges of
whatever nature in the submarine cables set out below, or in any portions
thereof:

Emden-vigo: from the Straits of Dover to off vigo; Emden-Brest: from off
Cherbourg to Brest; Emden-Teneriffe: from off Dunkirk to off Teneriffe;
Emden-Azores (1): from the Straits of Dover to Fayal; Emden-Azores (2): from the
Straits of Dover to Fayal; Azores-New York (1): from Fayal to New York;
Azores-New York (2): from Fayal to the longitude of Halifax, Teneriffe-Monrovia:
from off Teneriffe to off Monrovia; Monrovia-Lome:

from about lat. :2° 30' N.; long.:7° 40' W. of Greenwich: to
about lat. :2° 20' N.; long.:5° 30, W. of Greenwich; and from
about lat. :3° 48' N.; long.:0° 00', to Lome;

Lome-Duala: from Lome to Duala; Monrovia-Pernambuco: from off Monrovia to off
Pernambuco; Constantinople-Constanza: from Constantinople to Constanza;
Yap-Shanghai, Yap-Guam, and Yap-Menado (Celebes): from Yap Island to Shanghai,
from Yap Island to Guam Island, and from Yap Island to Menado.

The value of the above mentioned cables or portions thereof in so far as they are
privately owned, calculated on the basis of the original cost less a suitable
allowance for depreciation, shall be credited to Germany in the reparation
account.

SECTION II.

SPECIAL PROVISIONS.

ARTICLE 245.

Within six months after the coming into force of the present Treaty the German
Government must restore to the French Government the trophies, archives,
historical souvenirs or works of art carried away from France by the German
authorities in the course of the war of 1870-1871 and during this last war, in
accordance with a list which will be communicated to it by the French Government;
particularly the French flags taken in the course of the war of 1870-1871 and all
the political papers taken by the German authorities on October 1o, 1870, at the
chateau of Cercay, near Brunoy (Seine-et-Oise) belonging at the time to Mr.
Rouher, formerly Minister of State.

ARTICLE 246.

Within six months from the coming into force of the present Treaty, Germany will
restore to His Majesty the King of the Hedjaz the original Koran of the Caliph
Othman, which was removed from Medina by the Turkish authorities and is stated to
have been presented to the ex-Emperor William II.

Within the same period Germany will hand over to His Britannic Majesty's
Government the skull of the Sultan Mkwawa which was removed from the Protectorate
of German East Africa and taken to Germany.

The delivery of the articles above referred to will be effected in such place and
in such conditions as may be laid down by the Governments to which they are to be
restored.

ARTICLE 247.

Germany undertakes to furnish to the University of Louvain, within three months
after a request made by it and transmitted through the intervention of the
Reparation Commission, manuscripts, incunabula, printed books, maps and objects
of collection corresponding in number and value to those destroyed in the burning
by Germany of the Library of Louvain. All details regarding such replacement will
be determined by the Reparation Commission.

Germany undertakes to deliver to Belgium, through the Reparation Commission,
within six months of the coming into force of the present Treaty, in order to
enable Belgium to reconstitute two great artistic works:

(1) The leaves of the triptych of the Mystic Lamb painted by the Van Eyck
brothers, formerly in the Church of St. Bavon at Ghent, now in the Berlin Museum;

(2) The leaves of the triptych of the Last Supper, painted by Dierick Bouts,
formerly in the Church of St. Peter at Louvain, two of which are now in the
Berlin Museum and two in the Old Pinakothek at Munich.

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