Power concerned, and, in default of agreement, by a referee 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 Treaty. ARTICLE 9. Germany shall take every necessary measure of legislative and administrative action to facilitate the operation of the German Reparation Recovery Act, 1921, in force in the United Kingdom, and of any similar legislation enacted by any Allied Power, so long as such legislation remains in force. Payments effected by the operation of such legislation shall be credited to Germany on account of the payments to be made by her under Article 4 (2). The equivalent in German currency shall be paid by the German Government to the exporter. ARTICLE 10. Payments for all services rendered, all deliveries in kind and all receipts under Article 9 shall be made to the Reparation 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. ARTICLE 11. The sum payable under Article 4 (3) and any 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, shall be accumulated and applied so far as they will extend, at such times as the Commission may think fit, by the Commission in paying simple interest not exceeding 2 and a half per cent, per annum, from May 1, 1921 to May 1, 1926, and thereafter at a rate not exceeding 5 per cent on the balance of the debt not covered by the Bonds then issued. The interest on such balance of the debt shall not be cumulative. No interest thereon shall be payable otherwise than as provided in this paragraph. ARTICLE 12. The present schedule does not modify the provisions securing the execution of the Treaty of Versailles, which are applicable to the stipulations of the present schedule. 695852 0-47-56 5a. Final text of the A Bond provided for by the Schedule of Payments' REPARATION COMMISSION 1921-SERIES A. German Treasury Bond for 12,000,000,000 gold marks, issued under paragraph 1 of the law of June 26, 1921 (R.G.B. p. 761). Germany owes to the bearer of this bond the sum of 12,000,000,000 (twelve thousand million) gold marks of the weight and fineness of gold as enacted by the law on January 1st, 1914. This bond is issued under and by virtue of Annex II of Part VIII of the Treaty of Versailles dated 28th June 1919, as amended by the Powers represented on the Reparation Commission on 5th May 1921, and, also, the terms of the Schedule of Payments notified to Germany by the Reparation Commission on 5th May 1921. This bond represents the twelve thousand millions of gold marks bonds of Series A provided for in Article 2 of the Schedule of Payments. It is entitled to the benefit of and subject to the provisions of the said Treaty and of the Schedule of Payments as that Schedule stands or as it may be amended by the Reparation Commission within the limits of the powers conferred upon it by the Treaty of Versailles. This bond shall as from May 1st, 1921, bear interest payable in gold marks at the rate of 5% per annum on the capital amount owing by Germany. The interest shall be paid in half yearly instalments on May 1st and November 1st of each year, and for the first time on November 1st, 1921. This bond shall, as from May 1st, 1921, be redeemed in gold marks at its nominal value by annual payments at the rate of 1% on the full nominal value, plus 5% on any amount already amortised. The amortisation instalments shall be paid on May 1st of each year and for the first time on May 1st 1922. The payments in respect of interest and amortisation shall be effected on presentation of this bond at the Financial Office of the Reparation Commission at Paris, or at any other place the Reparation Commission may appoint, and in such currencies as it may designate. The amount of such payments shall be endorsed on the back of the bond. 2 Subject to the provisions of Article 251 of the Treaty of Versailles, the holder of this bond shall be entitled to a first charge on the sums paid each year by the German Government under Article IV of the Schedule of Payments (subject to any modifications thereof that may from time to time be made by the Reparation Commission under Article 234 of the Treaty of Versailles) which said sums are secured on the whole of the assets and revenues of Ger 1 File 462.00 R 29/828-249. This paragraph replaces the following: “Subject to the provisions of Article 248 and Article 251 of the Treaty of Versailles, this bond shall be a first charge secured on the whole of the assets and revenues of Germany and of the German States, and in particular the interest and amortisation thereof are guaranteed by the payments annually to be made by Germany under Article 4 of the Schedule of Payments." many and the German States pursuant to Article 248 of the Treaty of Versailles as costs of reparation under that Treaty or any treaties or agreements supplementary thereto, and the interest and amortisation instalments on this Bond shall be provided out of the sums so paid but not further or otherwise and so that any sums so paid for the service of this bond shall be applied: 1. First, in payment of any Arrears of Interest; 2. Next, in payment of current interest; 3. Next, in payment of any arrears of amortisation instalments, and 4. Lastly, in payment of any current amortisation instalment. Further, as security for the sums to be paid under Article IV of the Schedule of Payments, the German Government assigns:1 (a) The proceeds of all German maritime and land customs duties, and in particular, the proceeds of all import and export duties. (b) The proceeds of a levy of 25% on the value of all exports from Germany not subject to a levy of equal or greater amount imposed otherwise. (c) The proceeds of such direct or indirect taxes or any other funds as may be proposed by the German Government and accepted by the Committee of Guarantees constituted under the terms of Article 6 of the Schedule of Payments in addition to or in substitution for the funds specified in (a) and (b) above. The German Government shall, in accordance with the Schedule of Payments, place the proceeds of the above funds in the hands of the Committee of Guarantees or of any agent designated by it. The bond shall be free of all German taxes and charges of every description, present or future. In exchange for this bond, Germany will, on demand by the bearer or by the Reparation Commission, issue free of cost other bonds, with coupons attached, of an aggregate nominal value equal to the nominal value of this bond, less any sum that may have already been amortised. The Reparation Commission shall have power, by written notice to Germany, to prescribe, in Agreement, if necessary, with the Reichsschuldenverwaltung, the form, conditions and denominations of such bonds, and in particular, the provisions in regard to the places at which, and the currency in which payment of interest and amortisation of such bonds shall be effected and all arrangements relative to their amortisation. The exchange of the bonds shall be effected at the Financial Office of the Reparation Commission at Paris or at any other place that the Reparation Commission may designate. Germany further agrees in case of mutilation or destruction of this bond, to issue a new bond of like tenor. Germany guarantees that this bond has been duly authorised and that all formalities and conditions precedent to the issue and validity of this bond have been complied with. The German text of this bond is authoritative. (L.S.) BERLIN, June 29, 1921. REICHSSCHULDENVERWALTUNG, Halle, Vieregge, Muller, Dickhuth, Springer, These four words replace the previous wording: "these payments". Note Series B and C General Bonds were issued under date of October 28, 1921 in the amounts of 38 and 82 billion gold marks respectively. The terms of those bonds were of similar tenor to the Series A Bond, except for the provisions as to amount, issue, and interest which followed the stipulations in article 2, B and C, of the Schedule of Payments respectively. 6. Agreement between Great Britain, Belgium, France, Italy, and Japan respecting the Distribution of German Reparation Payments, Signed at Paris, March 11, 19221 I.-Memorandum by the Finance Ministers. In the Agreement, of which the text is attached, the Finance Ministers have undertaken a settlement of the questions which were outstanding and arrived at a complete understanding on the various questions raised in dealing with distribution of the German payments. In the course of their discussions the Finance Ministers have given attention to the general question of reparation. They have reached the conclusion that in accordance with the Treaty of Versailles and the declarations of the Governments, generally speaking this question belongs exclusively to the province of the Reparation Commission, but they were unanimous in recognising that it would be essential in the interests of the Governments that they should impress upon their Delegates on the Reparation Commission the necessity of arriving as soon as possible at concrete solutions. Such solutions should aim at securing the payment of reparation, both by restoring order to German finance under effective supervision and by enabling Germany to pay off part of the capital of her debt by the issue of foreign loans to be secured on the produce of her 1 United Kingdom, Reparation, Agreement between the Allies for the Settlement of Certain Questions . 1922, Cmd. 1616; 116 British and Foreign State Papers, p. 612. Customs or such other of the resources of the German Empire as the Reparation Commission might judge suitable. The Ministers further discussed the problems arising out of the war debts due by the European Allies to each other. G. THEUNIS CH. DE LASTEYRIE R. S. HORNE C. PEANO II.-Agreement The Governments of Belgium, France, Great Britain, Italy and Japan, respectively represented by the undersigned, have agreed as follows: ART. I-(1.) The payments to be made by Germany on account of the costs of the armies of occupation of Belgium, Great Britain and France, exclusive of the cost under Articles 8 to 12 of the Arrangement of the 28th June, 1919, shall as from the 1st May, 1922, be fixed at the following annual amounts: (2) The above figures are fixed on the basis of the following effective strengths: They have been calculated on the basis of a total amount of 220,000,000 gold marks. Out of this amount a sum of 10,950,000 gold marks has in the first place been allocated in respect of the British army, representing a special allowance of 2 gold marks per man per day, to cover its higher cost. The remainder, or 209,050,000 gold marks, has been divided in proportion to the num ber of effectives in question. The conversion of the sums in gold marks so arrived at into national currencies has been made at the mean rates of exchange for December 1921. (3) The sums definitely fixed above as the amounts to be paid by Germany for the year commencing on the 1st May, 1922, may before the 1st May in any subsequent year be revised for the year commencing on that date in accordance with the following principles : |