In the interpretation of this Agreement, the English and French texts shall be both authentic.

PARIS, September 21, 1925.

MAUCLÈRE

ROBERT PERIER

RALPH W. S. HILL

BASIL KEMBALL COOK

CORSI

SHIZUO YAMAJI

L. M. DE SOUZA DANTAS

LÉON V. MELAS

J. MROZOWSKI

J. BARRETO

AL. ZEUCEANU

DR. PLOJ

STEFAN OSUSKY

11b. Arrangement between the Government of the United States of America and the German Government, Effected by an Exchange of Notes, Berlin, December 8, 1926; Approved by the Reparation Commission, January 14, 1927

The German Government has the honour to affirm that the con- [ versations which have now been concluded between the German Government and the Government of the United States of America for the purpose of realizing the 214 percent share of the United States in payments under the Experts' Plan have resulted in mutual understanding on the following points:

(1) The German Government promises that it will do everything in its power in order that the Government of the United States will receive each year its 214 percent share of the annuities under the Experts' Plan. For this purpose the German Government will, for the financing of the deliveries in kind and services to be made or rendered to the United States, prevail upon German firms to deposit each month out of the dollar credits arising from the said deliveries and services a sum in dollars the amount of which, as more explicitly stated in paragraph 3, shall be fixed at the beginning of each month. The deposit will be made through the agency of the Reichsbank to the credit of the Agent General for Reparation Payments with the Federal Bank in New York.

(2) The Government of the United States will make a continuing arrangement so that the Agent General for Reparation Payments

will pay to the German firms the Reichsmark equivalent-immediately upon receipt of the cable report from the Federal Reserve Bank that the transfer has been made-in Berlin at the average Berlin rate for cable transfers on the day on which the dollars were transferred. The Government of the United States will furthermore take steps to the end that the Agent General for Reparation Payments will inform the Reich Finance Ministry not later than the first of each month of the sum to be paid by the German firms during that month.

(3) It is hereby agreed that the present procedure is not applicable to that part of the share of the Government of the United States in the annuities under the Experts' Plan set aside to meet the claim for arrears of army costs or that part which is otherwise covered in any manner through cash transfers.

The total amount accruing to the United States according to this arrangement during the period from September first, 1926, to the coming into force of the present arrangement, will be distributed over the remainder of the year in equal instalments. In general the amounts are to be divided in approximately equal monthly parts.

(4) The present arrangement may be terminated by either of the two parties not earlier than June first, 1927, effective September 1, 1927, or in subsequent years annually on and for the same dates in the respective year.

(5) When the Government of the United States has informed the German Government that the Agent General has received the necessary authority to proceed in the sense of this understanding, both Governments will make the necessary arrangements for its execution.

Note

This arrangement exists in two forms, as an exchange of notes between the German Ministry for Foreign Affairs (Köpke) and the Ambassador of the United States at Berlin (Schurman) on December 8, 1926 (file 462.00 R 296/1688, enclosures Nos. 4 and 5) and as an arrangement between the two governments submitted to the Reparation Commission as annex 3041 C (amended text) and approved by the commission retroactively on January 14, 1927 (file 462.00 R 296/1701 and 462.00 R 296/1711). The exchange of notes was in German and English without translations; the arrangement was in English.

The Transfer Committee on December 1, 1926 (file 462.00 R 296/1682) confirmed an arrangement by which the Agent General

Note-Continued

for Reparation Payments paid to I. G. Farbenindustrie, A.G., Deutsches Kalisyndikat, Hamburg-Amerika Linie and Norddeutscher Lloyd a total sum of 10,000,000 gold marks out of the accumulated share of the United States in consideration of their surrendering the equivalent in dollars to the United States.

11c. Agreement by the Allied and Associated Powers Regu lating Amounts to be Allocated for Certain Purposes from the Dawes Annuities'

Done at Paris, January 13, 1927; subsequently signed for the United States February 1, 1927; for Brazil by February 25, 1927; for Poland March 24, 1927; in effect for respective parties from date of signature

The Governments of Belgium, the United States of America. France, Great Britain, Italy, Japan, Brazil, Greece, Poland. Portugal, Roumania, the Serb-Croat-Slovene State and Czechoslovakia, respectively represented by the under-signed have agreed as follows.

AGREEMENT

regulating the amounts to be allocated out of the Annuities of the Experts' Plan for the Armies of Occupation, the Rhineland High Commission and the Military Commission of Control for the period 1st April 1926 to 10th January 1930.

Armies of Occupation.

ARTICLE 1

I. For the period 1st April 1926 to 10th January 1930 or until a modification in the zones of military occupation, the amounts to be admitted as a prior charge on the Annuities of the Experts' Plan in respect of the total costs of the Armies of Occupation inclusive of the costs of supplies and services of all kinds under the Rhineland Agreement shall be calculated on a yearly basis of 141,000,000 gold marks divided as follows:

1File 462.00 R 29/828-1224; Foreign Relations, 1927, 11, 724.

and constitute maximum amounts.

II. For the period from the 1st April to the 31st August 1926 and thereafter at six-monthly intervals the allocation to each occupying Power shall be fixed within the limits of its maximum allocation and at the choice of the Power concerned,

a) either in accordance with the proportion between the actual effective strength during the period in question and the basic strength above, or

b) as regards costs other than those of supplies and services under Articles 8-12 of the Rhineland Agreement by application of the provisions of paragraphs I and IV of Article I of the Financial Agreement of the 11th March 1922, and as regards costs of supplies and services under Articles 8-12 of the Rhineland Agreement on the basis of the final debits in respect of such supplies and services. III. For the Application of formula a) the Power concerned will furnish certified statements of average monthly strengths.

For the application of formula b) the Power concerned will furnish in accordance with the rules now in force for the application. of the Agreement of the 11th March 1922, certified statements of effective strengths and of average monthly costs.

IV. Supplies and services furnished under Articles 8-12 of the Rhineland Agreement before the 1st April 1926 will continue to be brought to account as provided for in the Agreement of the 21st September 1925.

V. Provisional allocations shall be fixed on the basis of the maximum figures in paragraph I for the period 1st April to 31st August 1926 and for the first six months of the third Annuity year. Thereafter the provisional allocations shall be fixed by unanimous decision of the Reparation Commission. The Commission will in principle determine the allocations by the application of formula a). Nevertheless in the event of an increase in the retail prices in one of the countries interested between the period 1st April-31st August 1926 and the period under consideration, the Commission will apply a coefficient of increase to the figure obtained by the

application of formula a) which shall take as exact account as possible of the effects of the increase in retail prices.

The necessary adjustments between the provisional allocations and the amounts actually due shall be made as soon as they are known.

ARTICLE 2

Interallied Rhineland High Commission.

The maximum annual charge for the Interallied Rhineland High Commission, inclusive of the costs of supplies and services of all kinds under the Rhineland Agreement, shall not exceed 3,335,000 gold marks (to be taken in foreign currency or in German currency as required) as from the 1st April, 1926, this sum being allocated between the French, British and Belgian High Commissariats as follows:

Not more than 5/12ths of the annual amounts above mentioned shall be allowed in respect of the period April to August 1926 inclusive.

This provision is only to be drawn upon as and to the extent required, and at the end of every six months the Interallied Rhineland High Commission will transmit to the Reparation Commission a certified statement of the expenditure actually incurred by each High Commissariat in the execution of its duties under the Rhineland Agreement.

Any savings at the end of each year will be paid into the Common Reparation fund for distribution in accordance with the provisions of the Financial Agreement of the 14th January 1925 to the Powers having the right under that Agreement to participate in the receipts from Germany on account of the Annuities of the Experts' Plan available for distribution as reparation.

In addition to the above amounts the Allied and Associated Governments interested will at the request of the High Commission, place at its disposal out of the Annuity an amount not exceeding the savings made by it during the first year of the Experts' Plan (in round figures 550,000 gold marks) to meet, in so far as they may be justified, any outstanding claims presented by the German Government in respect of Article 6 of the Rhineland Agreement for the period 1st September 1924-31st August 1925. The provisions of the present Article will remain in force until