Paris Peace Conf. 180.03401/116
IC–176A
Notes of a Meeting Which Took Place at President Wilson’s House in the
Place des Etats-Unis, Paris, on Wednesday, April 23, 1919, at 4
p.m.
Paris, April 23, 1919, 4 p.m.
- Present
- United States of America
- President Wilson
- Mr. Norman Davis
- Mr. Baruch
- Mr. Lamont
- Mr. McCormick
- Mr. Dulles
- Mr. Whitney
- The British Empire
- Mr. Lloyd George
- Lord Sumner
- Lord Cunliffe
- Mr. Keynes
- Mr. Dudley Ward
- France
- M. Clemenceau
- M. Klotz
- M. Loucheur
- M. Jouasset
- M. Cheysson
- M. Lyon.
- Sir Maurice Hankey, K. C. B., Secretary
- Prof. P. J. Mantoux, Interpreter.
Reparation
The Council had before it a printed Memorandum on the various documents
prepared by the Committees in connection with Reparation.1
1. Number of Members on Commission.
Mr. Lloyd George doubted the expediency of
only having one representative for each nation on the Commission. He
thought the number should be two as it might be desirable to Members on
have two types of men, for example, a financial and judicial expert.
Mr. Davis pointed out that substitute members
were provided for.
Mr. Lamont said the point had been carefully
considered and provided for by means of coadjutor delegates. It had been
considered that if there were two delegates for each of the five nations
the Commission would become unwieldy and it would hamper progress. In
any case delegates would require experts and sub-commissions would have
to be appointed.
[Page 156]
President Wilson pointed out that it was the
difference between the Quai d’Orsay Council of Ten and the recent
conversations of the Council of Four. Mr. Lloyd
George agreed this was a very substantial difference.
M. Clemenceau suggested that the coadjutor
delegates practically provided what Mr. Lloyd George asked for.
Mr. Lloyd George said he would not press the
matter.
2. The Right of Withdrawal Attention was next
drawn to a clause prepared by the American Delegation providing for the
right of withdrawal upon six months notice by any nation on the
Commission. (This will be found annexed to Clause 23 on page 11 of the
Appendix, having been inserted here by a drafting error instead of in
Clause 5 of Annex 2.)
President Wilson explained that, in his
opinion, no nation ought to withdraw from a Commission but his legal
advisers had informed him that no Treaty can be withdrawn from, or even
renounced, unless there was a provision to that effect. He thought that
public opinion in the United States would demand that there should be
such a clause, although he hoped it would never be necessary to use
it.
Mr. Lloyd George asked for the substitution of
12 months notice instead of 6.
President Wilson agreed to accept this
substitution.
(It was agreed that the clause providing for the right of withdrawal
should be adopted with the substitution of 12 months notice instead of
6.)
3. Secrecy.—Appendix: Annex 2, Article 8
Mr. Davis said that the American Delegation
considered that the secrecy provision should be withdrawn. The feeling
was that to set up a secret clause in a public Treaty would make a bad
public impression. If the delegates on the Commission were honest, they
would not give out information; if they were dishonest, they would do so
whether the clause were there or not.
Mr. Lloyd George pointed out that the object of
the clause was not to exclude Governments from making announcements but
to prevent the officials on the Commission from doing so. He pointed out
that it was vital in matters of finance that information which might
affect the money markets should not be allowed to leak out.
President Wilson said that their objections
were not to the actual secrecy but they wished to protect the Peace
Conference against the attacks of those who declared that everything
should be public. He agreed with Mr. Davis that if discreet people were
put on the Commission they would not give information away.
Mr. Lamont suggested that every Government
would give its own instructions to its own Delegates.
[Page 157]
It was agreed that Article 8 should be deleted.
4. Arrangements for Determining the Amount and
Conditions of Bonds, etc.—Appendix: Annex 2, Article (10), Clause
(b)
Mr. Davis said that the French and Italian
Representatives were in agreement with the American Proposal.
Lord Sumner said that the Italians had agreed
with the British Delegates; the United States and French Delegates were
opposed to the British and Italian Delegates.
Mr. Lloyd George explained that the British
experts apprehended that if one Power was in a position to veto an issue
of Bonds, it might be able to use this power to extort special terms.
They might refuse to agree to an issue of Bonds, unless some special
conditions were agreed to.
M. Loucheur said that he agreed with the United
States proposal.
Mr. Lloyd George said that as he was alone in
this matter, he would not press the objection.
The American proposal for Clause (b) was
adopted.
5. Determination of the Rate of Interest
M. Loucheur said that a point affecting the
rate of interest had been overlooked from Article 20 [16]. He then read of the following extract from an Article
prepared on the subject:—
“La Commission déterminera périodiquement, à la majorité, le taux
de l’intérêt (au maximum 5 p. 100)
dont sera débitée l’Allemagne sur sa dette, telle que l’aura
fixée la Commission, et aussi les dates à partir desquelles
l’intérêt sera débité sur les montants respectifs de a dite
dette.”2
This, M. Loucheur said, was an American proposal. He said that originally
a different text had been proposed based on the principle that a rate of
5% should be fixed leaving the Commission the right to fix a lower rate.
Mr. Norman Davis had objected to this. M. Loucheur’s recollection was
that Mr. Lloyd George had supported Mr. Norman Davis on the ground that
he considered it better from a political point of view to determine the
rate of interest on the lines now proposed. The original proposal would
appear to make concessions to the Germans and would create a bad
impression from a political point of view.
Mr. Lloyd George said that if the Germans were
given a lower rate than 5% when the Allied and Associated Governments
had to pay 5% themselves, public opinion would ask why the Germans
should be allowed to pay less. On the other hand, if the general rate of
interest should fall, he thought that Germany should have the
[Page 158]
benefit thereof and that the
Commission should have the right to fix a lower rate of interest. So
long as we pay 5%, the Germans should pay 5%. The Commission should not
have the power to give the Germans any preferential rate of interest. He
thought that it was more a question of form than of substance. Did not
the American delegates agree that if we paid 5% the Germans should do
the same?
President Wilson said that they all did. The
only question was as to who should have power to lower the rate.
Mr. Lloyd George proposed to leave this to the
Commission. He would rather regulate the payment of interest altogether
than the rate.
M. Clemenceau and M.
Loucheur said that they agreed.
(On Mr. Lloyd George’s proposal, the drafting of a revised paragraph was
left to the Expert Committee.)
6. Interest on Pensions
M. Loucheur read the following clause which
was a continuance of the clause quoted in the preceding section and
which it was proposed should be added to Article 10:—
“L’intérêt sera débité: (1) sur le montant des dommages matériels
(pour la fraction correspondant à la valeur d’avant guerre), à
partir du 11 novembre 1918; (2) pour les pensions, à partir du
jour où elles sont payées par chaque pays intéressé.”3
Mr. Lloyd George considered a proposal as
regards interest on material damage to be a mistake. If repairs were
made in kind, it would mean interest was being paid on things rebuilt
and it would be very difficult to assess the value. He did not, however,
press the point. He did object strongly, however, to the arrangement for
pensions under Clause (2). He explained that he only wanted equal
treatment for damage of all kinds. He could not acknowledge that damage
to houses was more important than damage to human life. The latter was
irreparable. No fair interest on this could be paid unless the value of
the pensions was capitalised. The same thing should be done whether it
referred to a house or to a man. Supposing by May 1st, 1921, the
Commission had established that the Bill for Housing was five thousand
million pounds and for pensions three thousand million pounds. Both
ought to be in the same category. He then called attention to Annex I,
Article I, Clause (e) and suggested that a clause
based on the following words should be substituted for M. Loucheur’s
proposal:—
“The amount due to the Allied and Associated Governments to be
calculated for all of them as being capitalised cost of such
payments
[Page 159]
on the basis
of the scales in force in France at the date of the signature of
this Treaty”.
This, he pointed out, would provide that Germany should not be
responsible to go on paying for 60 years. The sum would be capitalised
as arranged by the Commission.
M. Loucheur said that French delegates would
agree.
(Mr. Lloyd George’s proposal was accepted.)
7. The Date From Which Pensions Are To Be
Calculated
M. Loucheur pointed out that the original date
for the calculation of pensions, namely, November, 1918, did not take
into account the fact that pensions had been paid by the various
Governments long before that date. He suggested that some provision
should be made for this.
Mr. Lloyd George pointed out that this would be
covered if the words “at the date of the signature of this Treaty” were
added in the above clause after the words “capitalised cost”.
(The addition of these words was approved.)
8. Participation of Germany in the Proceedings of the
Commission—Appendix: Annex 2, Article 13
Mr. Lloyd George said he did not like the
proposal that the Germans should not have power to challenge any
proposal of the Commission. He agreed that they should not be able to
prolong the discussion for years. Nevertheless, they ought to be able to
make representations on any subject.
(At this moment Mr. Lloyd George withdrew to keep another
appointment.)
Lord Sumner said that Mr. Lloyd George’s
proposal was to leave out the following words: “in the discussion of the
general rules as to the measure of damages only”.
President Wilson pointed out that this clause
contravened the original bases laid down in Clause 3 of the Reparation
Provisions. He proposed to cut the whole clause out.
(After some discussion, it was agreed that the Clause should read as
follows:—
“The Commission shall examine into the claims and give to the
German Government a just opportunity to be heard but not to take
part in any decision of the Commission whatever”.)
9. President Wilson drew attention to the
article the American Delegation proposed to substitute.
Basis for Estimating Germany’s Capacity To
pay.—Appendis: Annex 2, Article 15 (b)
Lord Sumner said that the fact was that at
present the burden of taxation was heavier in Allied countries than in
Germany. Yet Germany might plead her poverty, and say she could not pay.
It was common ground that the actual taxation was a related matter that
must be taken into account. (President Wilson
agreed.)
[Page 160]
What the British Delegation submitted, and thought it was not too much to
ask, was that the Commission should not have the right to relieve
Germany until Germany had made an attempt to raise her taxation to the
amount borne by the most heavily taxed of the Allied Powers represented
on the Commission. They recognised that additional taxation would not
necessarily bring in money which could be used to pay outside Germany.
They recognised also that such taxation might even depreciate Germany’s
capacity to pay. That was the reason why they said that if the taxation
was too high the Commission should be permitted to accept the plea of
poverty. The British Delegation felt that it was not right that the
Commission should be able to remit, unless German taxation was
proportionately as high as that of the most heavily taxed Allied
country. He agreed it was certainly necessary to trust the Commission,
but the whole of these arrangements would be subjected to very close
criticism, and it would be difficult to convince public opinion if it
thought that Germany could be relieved of taxation on the ground of its
poverty, whilst we ourselves were more heavily taxed and had equally
heavy engagements to meet. If the Commission exercised great wisdom, he
agreed that the difficulty would be avoided.
President Wilson said that under the American
scheme the Commission would not be able to admit the plea of poverty
unless Germany had taxed herself to an extent at least equal to the
taxation of other Powers. He agreed that the Commission must be given
some standards of taxation by which to judge of Germany’s ability to
pay. It might be, however, that an additional burden would not give a
greater yield of power to pay. He felt, however, that it was making a
mistake to try to foresee situations too far in advance. If this were
done, only second-rate men would be induced to serve on the Commission.
He wished to get the biggest men possible, since the financial
arrangements of the world would depend on its operations. Hence, he
would deprecate definite and rigid instructions, and his French
colleagues agreed with him. He thought that the standard of justice was
as distinctly laid down in one draft as in the other.
M. Loucheur said he agreed with the American
draft.
Mr. Lloyd George (who had meanwhile returned)
said he would withdraw his objections.
(The American proposal with the French additions was adopted.)
10. Issue of Certificates by the Commission Regarding
Bonds Held for the Benefit of Different Government.—Appendix: Annex
2, Article 16
Mr. Lloyd George accepted the French
proposal.
11. Sanctions.—Appendix: Annex 2, Article 18
President Wilson pointed out that the United
States representatives
[Page 161]
had
accepted the principle of Sanctions, but were not prepared to approve
the form of words proposed in the draft. He then read a simpler and
shorter formula.
M. Klotz said that he would accept, with the
addition of the words (underlined below) “or financial” after
“economic”. The following substitute for the second and third
sub-paragraphs of this Article was adopted:—
“The measures which the Allied and Associated Governments shall
have the right to take, and which Germany hereby agrees not to
consider as acts of war may include economic or financial prohibition and reprisals, and in general
such other measures as the respective Government may determine
to be necessary in the premise”.
Note Just as the Meeting was breaking up, it
was agreed in addition to omit the last paragraph of Article 18.
12. Form of Payment.—Appendix: Annex 2, Article
19
Mr. Lloyd George thought that this Article was
too stiff. It would give the Commission power practically to take any
property or material to which it took a fancy.
President Wilson agreed with Mr. Lloyd George.
He had seen this clause for the first time. What he wanted was to avoid
even the appearance of a Brest-Litovsk forced Treaty.
Mr. Lloyd George suggested that his objections
would be surmounted by omitting in line 3 “demanded or”. He had no
objection to the Commission accepting payment in the forms proposed, but
they should not have power to demand it.
President Wilson agreed.
(It was agreed to omit in line 3 the words “demanded or”, and in
addition, to omit the second sub-paragraph of Article 19.)
13. Merchant Shipping—(Appendix, Annex 3) German Ships
in American Ports
President Wilson drew attention to amendments
proposed by the United States Delegation, (see Commission on Reparation
Supplementary Interim Report of the second Sub-Committee, dated April
18th, 1919, Appendix 2).
President Wilson said that the claim for the German ships seized in
United States ports was almost the only reparation claim put forward by
the United States of America. Other powers, with their full
acquiescence, were to be reimbursed for pensions. In the course of the
war, the United States of America had taken over the German ships in
their ports and had secured their title to them by law. The ships had
been so damaged that millions of dollars had had to be spent on their
repairs and new methods that had to be devised. Throughout, these ships
had been used for the indispensable transport of the
[Page 162]
American armies to France. It would not be
tolerable to public opinion in the United States if their title to these
ships was not recognised. This had nothing to do with the payment of
owners which the United States contemplated, but only to their title. It
would be intolerable if anyone questioned the title which had been
legally established under full process of their rights as a
belligerent.
Mr. Lloyd George said that if he went into the
whole case, he would show there were serious grounds which made it
impossible for the British Government to accept. If he accepted it would
not be merely a matter affecting the United States of America. This was
an easy matter which he would not contest. It would, however, affect
neutrals and other belligerents. Neutrals would benefit by this to the
extent of 794,000 tons of shipping. Brazil to the extent of 216,000
tons. This meant a loss not [only?] of cash but of ships which were even
more important. Brazil lost 25,000 tons and had seized 216,000 tons in
her ports and would consequently profit enormously by the transaction.
France lost 950,000 tons and would only be able to keep 45,000 tons;
that is to say, France would only get less than 1/20th of her loss. The
United States lost 389,000 tons and would get 628,000 tons. The British
Empire lost 7,740,000 tons and would only get 400,000 tons. During the
war Great Britain after allowing for shipbuilding had lost a balance of
4,500,000 tons. There was a great difference between the value of ships
to Great Britain and the United States. It was like the value of ships
to a fisherman compared with ships to a swell yachtsman. Great Britain
lived on ships and it was a very serious matter to her. There was first
the case of the neutrals who would walk off with 800,000 tons. In reply
to President Wilson’s suggestion that this could be avoided he thought
it would be difficult. The German ships in American ports had been
driven to take refuge there by the action of the Navies of France and
Great Britain. They only escaped capture because they took refuge in
United States’ ports. He could not help thinking that the whole of
shipping should be put in “hotchpot”. The United States would then
certainly get all that she had lost.
President Wilson said they had lost not only
ships but thousands of lives. In other countries such lives were being
provided for by reparation arrangements, but that America was making no
such claim and it would be intolerable to public opinion if it were not
agreed that the United States should retain these ships.
Mr. Lloyd George said he would be glad to enter
into an arrangement but objected to the participation of Brazil, who had
no claim for walking off with so many ships. Brazil’s whole trade was
protected by our Fleet.
President Wilson said this argument did not
apply to the United States, who had made an invaluable contribution to
the war. The
[Page 163]
United States did
not mean to take over the ships without payment.
Mr. Lloyd George said he did not object to some
arrangement whereby the United States would retain all of the enemy
ships which they had taken over, but that he did object to the proposed
American clauses being put into the Peace Treaty which would permit
other countries whose rights were not the same as those of the United
States, to retain the enemy ships taken over by them.
Mr. Lloyd George proposed, therefore, that Annex III should stand as at
present for insertion without alteration in the Peace Treaty, but that
an agreement be made by the Allied Governments with the United States,
providing for the retention by the United States of enemy ships now in
its possession, against payment.
President Wilson stated this would be
acceptable to him provided a satisfactory agreement in accordance with
the American amendment is drawn and executed by the Allies with the
United States prior to the execution of the Treaty.
(The following alterations were made during the interval when the
Conference had broken up into groups. The Secretary was unable to follow
the precise reasons for the decision.)
14. Payment in Kind (Appendix 1, Annex 4) After
some discussion it was agreed to omit para 2(c)
and (d) and the last para of 6.
15. Legislation by Germany. (Main Clauses Para.
10) (It was agreed to omit the following words at the end of
para. 10:—”and to the decisions and orders of the above named Commission
from time to time.” The para. therefore reads as follows:—”Germany
undertakes to pass any legislation and to issue any orders and decrees
that may be necessary to give complete effect to these clauses”.)
[16.] Mr. Lloyd George asked what would be the
position of Czechoslovakia and Poland.
Powers Entitled To Revive Reparation
President Wilson considered that these would
not be entitled to claim reparation since they had been part of enemy
countries.
Mr. Lloyd George asked what would be the
position of Roumania and Serbia, which had annexed very large
territories in Transylvania and Jugo-Slavia respectively. These
countries would not only escape the debts of the Austrian Empire to
which they had formerly belonged, but would also escape the burdens
imposed on the Allies. He thought the best plan was that proposed by M.
Orlando, that there should be a sort of ledger account in relation to
these territories. On one side of the account would be the liability
that the annexed territories would have had for a share of the Austrian
debt and indemnity and on the other side of the account would be their
share in the claim of Roumania and Serbia respectively for indemnity.
[Page 164]
This would be set off one
against the other and their [they?] would be
credited with the balance.
Mr. Norman Davis asked what would happen if the
balance was a debit instead of a credit.
Mr. Lloyd George said in that case there would
be no claim.
17. (The above arrangement was agreed to.)
M. Klotz asked what would be the position of
the subjects of Allied and Associated countries established in a country
like Poland whose property had been destroyed. They would not claim
compensation from poland; ought it not to be provided that they should
claim against Germany?
Claims by the Subjects of Allied and Associated Powers Resident in Poland
and czecho-slovakia
Mr. Lloyd George pointed out that they were
provided for by Annex I, Article I (a).
It was also pointed out that they were provided for by Article 3, where
the words used were “wherever situated”.
18. Consultation With the Smaller Powers After a
somewhat prolonged discussion, the following arrangements were agreed to
for consultation with the Powers with special interest on the subject of
the reparation clauses. The Expert Committee, which had been advising
the Supreme Council, should divide itself into groups and each group
should see a group of nations of the Powers with special interests. M.
Loucheur undertook to organise this arrangement. Those States which had
observations to make should subsequently have the right of consulting
the Supreme Council.
19. The Return of Animals Taken From Iinvaded
Territories
M. Loucheur proposed the following addition to
Article 7 of the reparation clauses:—
“Si une moitié au moins des animaux pris par l’ennemi dans les
territoires envahis ne peut être identifiée et restituée, le
reste, jusqu’à concurrence de la moitié du nombre enlevé, sera
livré par l’Allemagne à titre de restitution.”4
(After considerable discussion, it was agreed that M. Loucheur’s proposed
addition to Article 7 should not be inserted in the Treaty of Peace; his
proposal should, however, form the subject of a separate agreement
between the Allies, a draft text of the agreement to be prepared and
submitted by M. Loucheur.)
20. categories of Damage
M. Klotz proposed the addition of the
following new category of damage:—
“h) Dépenses engagées par l’Etat, ou pour
son compte et avec son autorisation, pour ravitailler,
transporter ou secourir la population
[Page 165]
civile des territoires occupés et la
population civile réfugiée ou évacuée.”5
Mr. Lloyd George said that if new categories
were put in, the British Government would have a number of new
categories which it would wish to introduce.
(It was agreed that the addition proposed by M. Klotz related to a
question of the interpretation to be given to the categories already
accepted and should be referred without delay for consideration to the
Commission on Reparations.)
21. Valuation
M. Klotz made a proposal for putting a
valuation clause in the Treaty in regard to property for which
reparation was to be given. This was necessary owing to the change of
value between 1914 and the present time.
(It was agreed that the Expert Committee should meet to prepare a
text.)6
The Conclusions, as revised by the Expert Drafting Committee, will be
forwarded later.
Villa Majestic, Paris, 23 April 1919.
Woodrow Wilson Papers
[Appendix I to IC–176A]
Reparation
[Note.—Drafting and other
minor changes are printed in italics.]6a
1. The Allied and Associated Governments affirm and Germany accepts the responsibility of herself 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 the enemy States.
2. The Allied and Associated Governments recognise that the financial
resources of Germany are not adequate after
taking into account permanent diminutions of such resources which
will result from other treaty clauses to make complete reparation
for all such loss and damage. The Allied and Associated Governments,
however, require, and the German Government undertakes that she will
make compensation for all damage done to the civilian population of
the Allied or Associated Powers and to their property by such* aggression by land, by sea and from the air,
as defined in the annexed Schedule 1.
[Page 166]
3. The amount of such damage (as set forth under the specific
categories attached hereto) for which compensation is to be made by
Germany shall be determined by an
Inter-Allied Commission, to be constituted in the form and with the powers set forth
hereunder and in the Annexes hereto. This Commission shall
examine into 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 Germany on or before the 1st May, 1921, as
representing the extent of their 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 the 1st May, 1921. In the event,
however, that within the period mentioned, Germany shall have failed
to discharge her obligation, then 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 through the
Commission, shall determine.
4. The Inter-Allied Commission shall thereafter, 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 Clause 3: but not to cancel any
part, except with the specific authority of the several Governments
represented upon the Commission.
5. 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 claim, Germany shall pay in
such instalments and in such manner (whether in gold, commodities,
ships, securities or otherwise) as the Inter-Allied Commission may
fix, before the 1st May, 1921, the equivalent
of 20,000,000,000 gold marks and pending payment
of this sum she shall deposit bonds as security in the manner
prescribed in Clause XV (c) (1) of Annex 2 attached
hereto. Out of this sum the expenses
of the army of occupation subsequent to the armistice shall first be
met, provided that such supplies of food and raw materials as may be
judged by the Allied and Associated Governments to be essential to
enable Germany to meet her obligations for reparation may also, with the approval of the Allied and
Associated Governments, be paid for out of the above sum, and the balance shall be reckoned towards
liquidation of the above claims for reparation. She shall
further deposit bonds as prescribed in Clause XV (c) of Annex 2 attached
Thereto.
[Page 167]
Ships shall be handed over by Germany to the Commission at the time
and in the manner stated in Annex III and in all respects in
compliance therewith.
6. The successive instalments including the above sum paid over by
the enemy States 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.
7. In addition to the payments mentioned above
Germany shall effect restitution in cash of cash taken away, seized or
sequestrated, and also restitution in kind 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 enemy territory.
8. The German Government undertakes to make forthwith the restitution
contemplated by Article 7 and to make the payments contemplated by
Articles 3, 4 and 5.
9. The German Government recognises the Commission provided for by
Article 3 as the same may be constituted by the Allied and
Associated Governments in accordance with Schedule
II attached hereto, and agrees irrevocably to the
possession and exercise by such Commission of the power and
authority given it by Articles 3, 4 and 5. 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 the German Government, its States,
Municipalities and other governmental subdivisions and of its nationals and corporations, and accords 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. The German Government further
agrees to provide for the compensation and expenses of the
Commission and of such staff as it may employ.
10. Germany undertakes to pass any legislation and to issue any
orders and decrees that may be necessary to give complete effect to
these clauses and to the decisions and orders of the above-named
Commission from time to time.
11†. These shall be reckoned as
a credit to the German Government in respect of the payments due
from it under the above clauses, the following items arising out
of other Articles of this Treaty and its Annexes:—
- (i.)
- Any final balance in favour of Germany
under Article of Part IV of the Economic
Terms.
- (ii.)
- Any sums due to Germany in respect of
property or material delivered under the Armistice Terms
or its extensions.‡
- (iii.)
- Any sums due to Germany in respect of
transfers under Article XIII of the Financial
Terms.
- (iv.)
- Any sums due to Germany in respect of
transfers under Articles 19, 37 and 51 of the Ports, Waterways
and Railways Terms.
Annex 1
Compensation may be claimed under
Clause 2 above under the following categories of
damage.
I
- (a.)
- 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).
- (b.)
- Damage caused 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 by
the enemy), committed or ordered by the enemy wherever arising
and to the surviving dependents of such victims.
- (c.)
- Damage caused to civilian victims of all acts of the enemy in
occupied, invaded, or enemy territory injurious to health or
capacity to work, or to honour, and to the surviving dependents
of such victims.
- (d.)
- Damage caused by any kind of maltreatment of prisoners of
war.
- (e.)
- As damage caused to the peoples of the Allied and Associated
States, all pensions and
compensations in the nature of pensions to naval and military
victims of war, 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 all of them as being the capitalised cost of
such payments on the basis of the scales in force in France
at the date of the signature of this Treaty.
- (f.)
- The actual cost of assistance by the
Governments of the Allied and
Associated States to prisoners of war and to their
families and dependents.
- (g.)
- Allowances by the Governments of the Allied
and Associated States 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 all of
them on the basis of the average scale for such payments in
force in France during that year.
II
Damage caused to civilians by being forced by the enemy to labour
without just remuneration.
III
Damage in respect of all property wherever situated belonging to any
of the Allied or Associated States or to any of their peoples, with
the exception of military works or materials, which has been carried
off, seized, injured or destroyed by the acts of the enemy on land,
on sea or from the air, or damage directly in consequence of
hostilities or of any operation of the war.
IV
Damage in the form of levies, fines and other similar exactions
imposed by the enemy upon civilian population.
Annex 2
[Page 179]
[Page 182]
I |
|
The Commission referred to in Articles 3 and following of
the above clauses shall be called
“The Reparation Commission” and is hereinafter referred to
as “the Commission.” |
|
II |
|
The Commission shall consist of five Delegates nominated
by the United States of America, Great Britain, France,
Italy and Belgium. Each of these Powers will appoint one
Delegate and also one coadjutor Delegate, who will take his
place in case of illness or of necessary absence, but at
other times will only have the right of
[Page 170]
being present at all
proceedings without takmg any part therein. |
|
III |
|
Such of the other Allied 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. |
|
IV |
|
In case of the death, resignation or recall of any
Delegate, coadjutor Delegate or assessor Delegate, a
successor to him shall be nominated as soon as
possible. |
|
V |
|
The Commission will have its principal permanent Bureau in
Paris and will hold its first meeting in Paris as soon as
practicable after the signature of the Preliminaries of the
Treaty of Peace, 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. |
|
VI |
|
At its first meeting the Commission shall elect two of the
said five Delegates, one as Chairman and the other as
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, it shall
[Page 171]
be forthwith filled by the Commission
for the residue of the said period. |
|
VII |
|
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 compensation;
to constitute Sub-Committees, and to take all executive
steps necessary for the purpose of discharging its duties;
and to delegate authority and discretion to officers, agents
and Sub-Committees. |
|
VIII |
|
All Delegates and all officials and persons appointed by
the Commission shall be bound to observe secrecy concerning
the business and proceedings of the Commission and
concerning their duties (communications to the Governments,
in conformity with their instructions, being always
excepted). |
|
IX |
|
All proceedings of the Commission shall be private,
unless, on particular occasions, the Commission shall
otherwise determine for special reasons. |
|
X |
|
As to voting, the Commission will observe the following
rules:—
When a decision of the Commission is taken, all the
Delegates, or in the absence of any of them their
coadjutor Delegates, ought to be present. Their
votes will be recorded. Abstinence from voting
[Page 172]
is to be
treated as a vote against the proposal under
discussion. Assessors have no vote.
|
|
On the following questions unanimity is necessary:—
- (a.)
- Any question involving the sovereignty of any of
the Allied and Associated Powers, including the
cancellation of the whole or any part of the debt or
obligations of Germany.
- (b.)
- The Commission will from time to time issue for
negotiation or sale to third parties, bonds of the
hereinafter-mentioned issues delivered by Germany.
In doing so, it will have regard both to the
financial requirements of the Allied Powers and to
the necessity of avoiding depreciation of the bonds
still unissued by negotiating excessive amounts. Up
to four thousand millions of marks per annum, it may
decide upon such issues by a majority, but for the
amounts in excess of that sum unanimity shall be
required.
- (c.)
- Any postponement, total or partial, of the payment
of instalments falling due between the 1st May,
1921, and the end of 1926 inclusive for a period
extending beyond 1930.
- (d.)
- Any postponement, total or partial, of any
instalment falling due after 1926 for a period
exceeding three years.
|
(b.) American
Proposal. In all questions of determining the
amount and conditions of bonds or other obligations to be
executed by Germany, and of fixing the time and manner for
selling, negotiating or distributing such bonds, a unanimous
vote of the Commission shall be required. |
The Commission is not to apply in any particular case a
method of measuring damages different from that which has
been previously applied in a similar case except by a
unanimous vote. |
|
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
[Page 173]
which requires a
unanimous vote for its decision or not, the Allied and
Associated Powers agree to refer such difference 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. |
|
All other questions shall be decided by the vote of a
majority. |
|
XI |
|
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. |
|
XII |
|
The Commission shall be required 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, if she so desires. |
|
XIII§ |
|
The Commission shall be at liberty, but shall not be
bound, to allow Germany to take such part, if any, as the
Commission may think right, in the discussion of the general
rules as to the measure
[Page 174]
of damages only, but not in any
decision of the Commission whatever |
|
XIV |
|
The Commission shall not be bound by any particular code
or rules of law or by any particular rules 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. |
|
XV |
|
The Commission shall in general have wide latitude as to
its control and handling of the whole reparation problem,
and shall have the powers referred to in Clauses III and IV
of the Treaty. Subject to the provisions of the Treaty and
of its annexes, the Commission is constituted by the several
Allied and Associated Governments as the exclusive agency of
the said Governments respectively for receiving, selling,
holding, and distributing the payment of reparation to be
made by Germany pursuant to Articles of the 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
[Page 175]
may
determine, to cover by way of guarantee by an
equivalent issue of bonds or obligations or
otherwise, in order to constitute an acknowledgment
of the said part of the debt.
- (b.)
- In exercising the powers given by Clause IV to the
Commission, Germany shall be considered as able to
pay the amount of the proved claims and the amount
of any annual instalment fixed by the Commission in
full as they fall due—
- 1.
- As long as her internal taxation for the
service of the debt due to the Allies in respect
of their proved claims is not at least equal per
head of the population of Germany to the amount
borne per head of the population by the most
heavily taxed of the Allied Powers represented on
the Commission as taxation for the service of its
public debt, unless the Commission is unanimously
of opinion that the German taxation has reached an
amount which cannot be increased without
diminishing Germany’s capacity to pay.
- 2.
-
As long as any sums are paid, either by
way of principal and interest or otherwise, for
the service of any part of the German war debt
1914–19, or any subsequent debt, or of any debt
contracted by her previously to that date, which
is held by her nationals.
The sums payable for reparation which Germany
is required to pay shall become a charge upon all
her revenues prior to the service or discharge of
any domestic loan, and the Commission shall make
an order to that effect.
[Page 176]
The Commission shall study the German system of
taxation from time to time, with a view of
ascertaining its relation to the systems of the
Powers represented on the Commission, for which
purpose Germany will furnish it with all
information for which it asks.
- (c.)
- In order to facilitate and continue the immediate
restoration of the Allies’ economic life, the
Commission, as provided in
clause 5 above, will
take from Germany by way of security for and
acknowledgment of her debt a first instalment of
gold bearer bonds free of all
taxes or imposts of every description leviable by
the Government of Germany or its States, or by any
authority subject to them, on account, in
three portions, as follows, the Mark being taken as
equivalent to 0358425 grammes of fine gold:—
- 1.
- To be issued forthwith, 20,000,000.000 M. in
gold bearer bonds, payable not
later than the 1st May, 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 5 of the Treaty 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 the 1st May, 1921, shall then be
exchanged for new bonds of the same type as those
provided for in 2 below.
- 2.
- To be issued forthwith, further
40,000,000,000 M. gold
[Page 177]
bearer bonds, bearing interest at 2½ per cent, between
1921 and 1926, and thereafter at 5 per cent., with
an additional 1 per cent, on the
whole amount of the issue beginning in 1926
for amortisation.
- 3.
- To be issued when, but not until, the
Commission is satisfied that Germany can meet her
interest obligations to the Allied and Associated
Governments (a covering bond for the amount having
been delivered by Germany at once), a further
instalment of 40,000,000,000 M. gold bearer bonds,
bearing interest at 5 per cent,
with an additional 1 per cent, on the whole amount of the issue for
amortisation.
|
(b.) American
Proposal.
In estimating Germany’s periodical 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 this Commission.
French addition to American
clause.
The decision of the Commission relative to the total or
partial cancellation of the capital or interest of any
verified debt of Germany must be accompanied by a
statement of the grounds for its action.
(Note.—Not at present definitely
agreed.)
|
The due interest dates, the manner of
applying the amortisation fund, and all similar
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. |
|
In the event that bonds, obligations, or other evidence of
indebtedness issued by Germany by way of security for or
acknowledgement of her reparation debt, are disposed of
outright, not by way of pledge, to persons other than the
several Governments in whose favour Germany’s original
reparation indebtedness was
[Page 178]
created, then such reparation
indebtedness shall be deemed to be extinguished in an amount
corresponding with the nominal value of such evidences of
indebtedness as have been distributed; and the obligation of
Germany in respect to such amount shall thereupon be
confined to its obligations expressed in the evidences of
indebtedness. |
Partial extinguishment of Obligation. |
XVI |
(French Proposal.) |
The Commission will issue to each Allied
and Associated Government interested, in such forms
and in such denominations as it may fix, certificates
stating that it holds for the benefit of such Government bonds of the
above-mentioned issues, and presenting
payments to which such Government is
entitled. When bonds are issued for sale or
negotiation, a corresponding amount of certificates will be
retired. |
The Commission will issue to each of the interested
Powers, in such form as it will fix:—
- 1.
- 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, after May 1921, certificates
stating that it holds for the account of the said
Power all other goods delivered by Germany on
account of her reparation debt.
|
XVIIǁ |
|
The Commission will formulate and carry out a scheme for
drawing and cancelling the said bonds in proportion to the
amounts received on account of
amortisation from time to time. The Commission
shall also have power to apply the said amounts in purchasing the said bonds in the open
market below par from time to time. |
|
When bonds are issued for sale or negotiation, and when
goods are delivered by the Commission, an equivalent number
of certificates must be withdrawn. |
|
The Commission will establish and put into execution a
scheme of drawing and amortisation of the said bonds in
proportion to the sums received on account of payments made
from time to time and destined for the sinking fund. The
Commission will also have the right to employ from time to
time the said payments destined for the sinking fund in
purchase of the said bonds on the open market below
par. |
|
XVIII |
|
In case of voluntary default by Germany in the performance
of any obligation, of whatever kind, to comply with and
satisfy its decisions, the Commission will forthwith give
notice of such default to each of interested Powers and may
make such recommendations as to the action to be taken in
consequence of such default as it may think
necessary. |
|
These measures, which the Allied and Associated Powers
shall have the right to take, and which Germany agrees not
to regard as acts of war, may be in particular the
following:—
- 1.
- Prohibition against German vessels entering ports
situated in the territory of the Allied and
Associated States or of their possessions and
dependencies and from utilising any coaling stations
belonging to the said States.
- 2.
- Seizure whether in the ports of the Allied and
Associated States, whether on the high sea, of all
German vessels, under reserve of
[Page 180]
the rights of neutrals,
which should be safeguarded.
- 3.
- Prohibition from entry into the territories of the
Allied and Associated States or of their possessions
and dependencies to all German subjects and all
goods of German origin.
- 4.
- Prohibition of the negotiation on the territories
of the said States of German securities of any
kind.
- 5.
- Suspension of all postal, telegraphic, and
telephonic communication with Germany.
- 6.
- Seizure on the territories of the said States of
all German goods.
|
The United States Representatives accepted the principle
of sanctions, but were not prepared to approve the form of
words proposed above. |
These rights shall not be exclusive of the exercise of any
others. The engagement of the German Government in the
financial protocol6b in
the Armistice signed at Treves on the 13th December, 1918,
shall be maintained until Germany has paid the first
20,000,000,000 M. bonds referred to in Article, unless the
Commission should previously accept some other guarantee in
lieu thereof. |
|
XIX |
|
Payments required to be made in gold or its equivalent on
account of the proved claims of the Allies may at any time
be demanded or accepted by the Commission in the form of
properties, chattels, commodities, businesses, rights, and
concessions in German territories or in territories other
than the territories of Germany, ships, bonds, shares, or securities of any kind, currencies
or bonds
[Page 181]
of
Germany or of other States, the value of such substitutes
for gold being fixed at a fair and just amount by the
Commission itself. |
|
The German Government proposes and undertakes to take any
necessary measures to acquire, in cases where it is not
already the owner, and to transfer to the Commission all
goods, rights, and interests of German nationals which the
said Commission may find acceptable. |
|
XX |
|
The Commission, in fixing or accepting payment in specific
property, shall have due regard for any legal or equitable
interests of nationals of the Allied and Associated Powers
or of neutral Powers in such property. |
|
XXI |
|
When all the amounts due from the enemy States under the
Treaty of Peace 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. |
|
XXII |
|
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. |
|
XXIII |
(American Proposal) |
Subject to the provisions of the Treaty this Annex may be
amended by the unanimous decision of the Governments
represented from time to time upon the Commission. |
Each Government represented upon the Commission shall have
the right to withdraw from representation upon the
Commission upon six months’ notice filed with the
Commission. |
Annex 3¶
Articles relating to Merchant
Shipping
I
1. The enemy Powers recognise 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 enemy
shipping at present in existence is much less than that lost by the
Allied and Associated Powers, the right thus recognised will be
enforced on enemy ships and boats under the following conditions:—
The enemy Powers 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 enemy
merchant ships which are of 1,600 tons gross and upwards; in
one-half, reckoned in tonnage, of the ships which are
between 1,600 tons and 1,000 tons gross; in one-quarter,
reckoned in tonnage, of the steam trawlers; and in
one-quarter, reckoned in tonnage, of the other fishing
boats.
2. The enemy Powers will, within two months of the signature of the
Preliminaries of Peace, deliver to a representative of the Allied
and Associated Governments, duly authorised by them for this
purpose, all the ships and boats mentioned in Article I.
3. The ships and boats mentioned in Article I include all ships and
boats which (a) fly, or may be entitled to
fly, the enemy merchant flag; (b) are owned
by any enemy subject, company or corporation or by any neutral
company or corporation which is under the control or direction of
enemy subjects; (c) which are now under
construction in enemy or in neutral countries.
4. For the purpose of providing documents of title for the ships and
boats to be handed over as above mentioned, the enemy Powers will:
- (a.)
- Deliver to the representative of the Allied and Associated
Governments in respect of each vessel a bill of sale or
other document
[Page 183]
of
title evidencing the transfer of the entire property in the
vessel, free from all encumbrances, charges and liens of all
kinds, to that officer;
- (b.)
- Take all measures that may be indicated by the said
representative of the Allied and Associated Governments for
ensuring that the ships themselves shall be placed at his
disposal.
II
As an additional part of reparation, the German Government agrees to
cause merchant ships to be built in German yards for Allied account
as follows:—
- (1.)
- Within three months of the signature of the Preliminaries
of Peace, the Allied and Associated Powers will notify the
German Government of the amount of tonnage to be laid down
in German shipyards in each of the two years next succeeding
the three months mentioned above;
- (2.)
- Within twenty-four months of the signature of the
Preliminaries of Peace, the Allied and Associated
Governments 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;
- (3.)
- The amount of tonnage to be laid down in each year will
not exceed 200,000 tons, gross tonnage.
- (4.)
- 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 in
the reparation account, and all other questions relating to
the accounting, ordering, building and delivery of the
ships, shall be determined by a Commission nominated by the
Allied and Associated Powers.
III
The enemy Powers undertake to restore in kind and in normal condition
of upkeep to the Allied and Associated Powers, within two months of
the signature of these preliminaries, any boats and other movable
appliances belonging to inland navigation which since the 2nd
August, 1914, have by any means whatever come into their possession
or into the possession of their 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 reparation in kind prescribed in the above paragraph,
the enemy Powers agree to cede to the Allied and Associated Powers a
portion of the enemy river fleet up to the amount of the reparation
in kind mentioned above, provided that such cession shall not exceed
20 per cent, of the river fleet as it existed on the 11th November,
1918.
The conditions of this cession shall be settled by the same
arbitrators as are charged with the settlement of difficulties
relating to the
[Page 184]
apportionment of river tonnage resulting from the new international
regime applicable to certain river systems or from the territorial
changes affecting those systems.
IV
- 1.
- The enemy Powers undertake to take any measures that may be
indicated to them by the Allied and Associated Governments 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.
- 2.
- The enemy Powers abandon in favour of the Allied and
Associated Governments all claims of all descriptions against
the Allied and Associated Governments and against subjects or
citizens of Allied and Associated countries in respect of the
detention, employment, loss or damage of any enemy ships or
boats.
- 3.
- The enemy Powers abandon in favour of the Allied and
Associated Powers any claim to vessels or cargoes sunk by or in
consequence of enemy naval action and subsequently salved, in
which any of the Allied or Associated Governments or their
citizens or subjects may have any interest either as owners,
charterers, insurers or otherwise, notwithstanding any decree of
condemnation which may have been made by an enemy Prize
Court.
- 4.
- The enemy Powers will within three months of the signature of
the Preliminaries of Peace take all necessary legislative and
administrative measures to enable them to carry out the
provisions of this chapter.
Annex 4
1. The Allied and Associated Governments require, and the German
Government undertakes, that Germany, in part satisfaction of its
obligations above expressed, will, as hereinafter provided, devote
her economic resources directly to the physical restoration of the
invaded areas of France, Italy and Belgium, to the extent that these
Powers shall judge it useful to avail thereof.
2. The Governments of the several Allied and Associated Powers may
file, with the Inter-Allied Commission, schedules showing:—
- (a.)
- Animals, machinery, rolling-stock, equipment, tools and
like articles of a commercial character, which have been
seized, consumed or destroyed by the enemy, or destroyed in
direct consequence of military operations, and which such
Governments desire, for the purpose of meeting immediate and
urgent needs (in the devastated areas and without re-export)
to have replaced by animals and articles of the same nature
which are in being in German territory;
- (b.)
- Reconstruction materials (stones, brick, tile, lumber,
window-glass, steel, lime, cement, &c.), 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;
- (c.)
- The number and character of workmen which the said
Governments desire to have engaged in clearing the fields of
battle and performing reconstruction work in the invaded
areas, and the proposed period of employment;
- (d.)
- Objects of notable artistic, historic or literary value,
of a character not susceptible of reproduction which have
been seized or destroyed by the enemy or destroyed in direct
consequence of military operations, and which the said
Governments may desire to have replaced by similar objects
which are in being in Germany.
Neither rolling-stock in actual industrial use, nor more than 30 per
cent, of the tools and machinery in any one factory in actual
industrial use, are to be demanded of Germany.
3. Schedule “A” shall be filed within sixty (60) days after the date
of the signature of this Treaty. Schedule “B” shall be filed on or
before the 31st December, 1919. Schedule “C” shall be filed within
one hundred and twenty (120) days after the date of the signature of
this Treaty. Schedule “D” shall be filed on or before the 31st
December, 1919. The Schedules shall contain all such details as are
customary in commercial contracts dealing with the subject matter,
including specifications, acceptable dates, but within four years,
and places of delivery, &c., but not price or value, which shall
be fixed by the Commission as hereinafter provided.
4. Immediately upon the filing of said Schedules with the Commission,
the Commission shall consider what of the labour, materials,
animals, &c, mentioned in said Schedules shall 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
paid 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. The Commission
shall give representatives of the German Government an opportunity
and a time to be heard finally as to their capacity to furnish the
said labour, materials, articles, animals, &c. 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, and the interested Allied and Associated
Governments severally agree to accept the labour, materials,
[Page 186]
articles, animals, &c,
as specified in said communication, provided they conform to the
specifications given, or are not, in the judgment of the Commission,
unfit to be utilized in the work of reparation.
5. The Commission shall determine the value to be attributed to the
labour, materials, articles, animals, &c, to be delivered in
accordance with the foregoing, and the Allied or Associated Power
receiving the same shall, and hereby 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 6 (of General
Reparation Clauses). The Commission shall have regard to ensuring an
equitable correspondence between the value attributed to such acts
of reparation and the pecuniary measure of the damage which such
acts repair.
6. In the event that Germany shall supply labour in accordance with
the foregoing, the work shall be performed under the supervision and
direction of engineers or architects selected by the Government of
the country in which the work is to be performed, and in accordance
with plans and specifications approved by such Government.
The maximum number of workmen that Germany may be required at any one
time to provide shall be 500,000 for all Powers. The said workmen
shall be subject to rules of discipline and conduct formulated by
the Inter-Allied Commission, and it shall be the duty of the country
employing such workmen under regulations made by and to the
satisfaction of the Commission to ensure to said labourers proper
working and living conditions. The Government of any country in
which said workmen shall be employed undertakes to abide by and give
effect to the rulings of the Commission applicable to said
workmen.
Annex 5
The German Government undertakes to accord to the French and Italian
Governments the following options for the delivery of coal to France
and Italy respectively. The amount of coal to be delivered each
calendar year shall be determined and notified to Germany not later
than the 1st September of the preceding year.
1. Germany is required to deliver to France 7,000,000 tons per year
for ten years. In addition, Germany is required to deliver to France
an amount of coal equal to the deficit between the production before
the war of the mines of the north and Pas de Calais destroyed by the
Germans, and the production of the same mines during the years in
question—but not longer than ten years—not to exceed 20,000,000 tons
in any one year of the first five years, and 8,000,000 tons in any
one year of the succeeding five years.
[Page 187]
2. For the delivery to Italy of not more than the following
quantities of coal:—
In period |
July |
1919 |
to June |
1920 |
|
4½ |
million |
tons. |
” |
” |
1920 |
” |
1921 |
|
6 |
” |
” |
” |
” |
1921 |
” |
1922 |
|
7½ |
” |
” |
” |
” |
1922 |
” |
1923 |
|
8 |
” |
” |
” |
” |
1923 |
” |
1924 |
} |
8½ |
” |
” |
and the following five years |
At least two-thirds of the actual deliveries to be land-borne.
The prices to be paid for such coal delivered under these options to
be as follows:—
- (a.)
- For overland delivery, including delivery by barge, the
German pithead price to German nationals, plus the freight
to French or Italian frontier, provided that the pithead
price does not exceed the pithead price of British coal for
export.
- (b.)
- For sea delivery, the German export price f. o. b. the
German ports, or the British export price f. o. b. British
ports, whichever may be lower. Railroad tariffs shall not be
higher than lowest similar rates.
- (c.)
- All matters regarding procedure, qualities of coal, times
and mode of delivery and payment, and all other details will
be regulated by the Inter-Allied Commission.
It is understood that due diligence will be exercised in the
restoration of the destroyed Lens and Pas de Calais properties.
[Appendix II to IC–176A]
Commission on Reparation
Supplementary Interim Report of
the Second Sub-Committee on Reparation**
Since presenting its first interim report, the Second Sub-Committee
has held three meetings in order to conclude its discussions of the
enemy merchant fleet considered as a means of reparation, and on
other matters. In these meetings the Committee has had the advantage
of the advice of experts.
merchant shipping
The Committee started from the principle that the enemy should be
required to recognise the right of the Allied and Associated Powers
to the replacement, ton for ton and class for class, of all the
[Page 188]
merchant ships and
fishing-boats which they have destroyed or damaged during the war.
The Allied merchant tonnage destroyed by the enemy is, in round
figures, 10,750,000 tons, and the total enemy merchant shipping
tonnage available about 5,500,000 tons. There is, therefore, only
enough enemy merchant tonnage to meet about half the Allied claim,
and yet it has been deemed necessary to leave the enemy the major
portion of his coasting and fishing fleets as being essential to his
economic needs.
The Committee agree that the enemy Powers should be required to cede
the whole of their merchant tonnage over 1,600 tons gross, half of
the vessels between 1,600 and 1,000 tons, and one-quarter of the
steam trawlers and of the other fishing craft. This leaves to
Germany the greater portion of her coasting and fishing vessels.
An additional means of securing reparation in kind for the merchant
ships destroyed during the war is to require Germany to undertake to
build merchant ships for the Allies over a period of five years. The
maximum amount to be built in any one year is fixed at 200,000 tons,
this being about one-third of the total output of all German
shipyards before the war.
In addition, the Committee consider it essential that the enemy
Powers should be bound to cede to the Allies a certain proportion of
the river craft now in their possession. The craft taken by force or
otherwise acquired from the Allies during the war, which can be
identified, should be restored, and in addition a further amount of
river tonnage should be ceded by way of reparation. The total amount
to be surrendered is so calculated as not to impair seriously the
economic life of the enemy Powers.
Draft clauses for giving effect to these proposals are appended (see
Clause C in the Annex), and it is recommended that these clauses
should be referred to the Inter-Allied Drafting Committee in order
that any necessary amendments of form may be made, so as to enable
the clauses to be embodied in the Peace Treaty.
On the main principle, viz., that the enemy should be required to
relinquish all title in the merchant shipping and fishing tonnage,
the Committee were unanimous. The Commission generally were of
opinion that the enemy should be required to cede the tonnage to the
Allies as a whole. The American Delegation proposed that the enemy
should be required to acknowledge the validity of the seizures made
by each individual Allied or Associated Power, and to recognise the
title of that Power to the ships which it had seized.
This question is so important and so far-reaching that the Committee
consider it desirable to set out the arguments on each side at some
length.
[Page 189]
american contention and
amendment
The amendment which is offered by the American Delegation for the
purpose of validating the title to the seized ships is offered for
the reasons following:—
- (a)
- That no question of title may be raised by any of the
enemy Powers or by any of their nationals, or by anyone
interested in any manner in such seized ships.
- (b)
- That no Allied or Associated Power should question the
validity of the title to the ships seized by any other
Associated or Allied Power.
The amendment relating to the payment of compensation for such seized
ships is for the purpose of determining the value and the
application of the payment for such ships at the value so
determined.
In making these reservations and presenting the amendments, the
United States Delegation submits the following:—
- (a)
- That it does not admit the right of any enemy Power or
Allied or Associated Power to question the title to the
enemy ships seized during the war under the authority of the
Congress of the United States approved the 12th May, 1917,
and the proclamation of the President of the United States
based thereon.7
- (b)
- That the amendments are submitted in view of the
interpretation made by the British Delegation as set out in
the procès-verbal for the twenty-sixth meeting to the effect
that paragraph 3 of Clause C (see Annex) is intended to
exclude from delivery under the general provisions of Clause
C only such enemy ships as have been “captured and
definitely condemned by prize courts, and that prize court
condemnations were made only in the cases of ships taken by
Great Britain and Portugal.
The United States Delegation further submits that as the title to the
seized enemy ships should be accepted as valid by the enemy Powers
and by the Allied and Associated Powers, the suggestion to transfer
such ships to a “pool” for redistribution on the basis of losses,
ton-for-ton and category-for-category, is tantamount to asking for a
contribution on the part of certain of the Allied and Associated
Powers.
The principle involved in such a request would compel a complete
analysis and consideration of the causes and progress of the war and
the relations of various Allied and Associated Powers to the war
and, in addition, a complete survey and determination of the
relations of the Allied and Associated Powers to each other.
british and french
contention
The British and French Delegations pointed out that the American
proposal was open to the following objections:–
[Page 190]
1. It substituted individual for collective action, Germany being
bound to recognise as valid the seizures made by each State, instead
of ceding the ships to the Allies collectively.
2. It is based frankly and implicity on physical possession, not on
justice, and establishes the doctrine that the disposal of enemy
ships after a war is decided not by international law or agreement,
but by the accident of ships having taken refuge in certain ports to
escape capture. In the present war the very large numbers of German
and Austrian ships which took refuge in North and South American
ports on the outbreak of war fled to these ports and remained there
in order to escape capture by the British and French naval
forces.
3. If this principle is admitted in the case of an Ally, it will be
difficult in practice to prevent the neutrals from adopting it and
keeping for their own use, in satisfaction of their claims against
Germany, the enemy tonnage in their ports. As this amounts to
794,000 tons, the loss to the Reparation Fund will be
considerable.
4. It would cause great injustice, for some of the States which have
suffered least from the war, such as the United States and Brazil,
will gain most under this proposal, while the States which have
suffered most from the war would be seriously injured.
The United States and Brazil would have an absolute priority in the
payment of their claims over anyone else, including Belgium, for
they would be able to pay themselves.
Under the most favourable circumstances there are not enough enemy
ships to replace half the Allied losses, there being only 5,500,000
tons of enemy shipping to meet claims in respect of Allied losses
amounting to 10,750,000, but under this arrangement the United
States would get nearly twice as much tonnage as they have lost, for
they have lost 389,000 tons and would get 628,000. Brazil would get
nearly ten times as much as she had lost, for she has lost 25,000
tons and would get 216,000. Great Britain, on the other hand, which
has lost 7,746,000 tons, would only be able to keep 480,000, and
France, who has lost 950,000 tons, would only be able to keep
45.000.
5. The proposal cannot be made a general rule, because it is
obviously impossible to grant to, say, Brazil and Spain, the special
right which is now claimed by the United States.
6. The American proposal, if agreed to, would insert in the Treaty of
Peace with Germany a clause prescribing the method by which some of
the enemy ships are to be allocated amongst the Allied and
Associated Powers. The enemy have nothing to do with this
allocation, which is a matter for the Allies to settle amongst
themselves, and the Treaty should be confined to compelling the
enemy to cede the ships to the Allies as a whole.
The Committee approved reporting the clause drafted by the British
Delegation (Annex, Clause C) subject to the reservation of the
United States Delegation, whose amendment was also to be
reported.
Reservations were also made by some of the Delegations, including
some representing new countries, who claimed that their nationals
were entitled to the property in some of the enemy ships. The
Committee felt that they were not competent to consider or decide
the
[Page 191]
claims of this kind,
and that they could only deal with the facts as they existed in
August 1914. It was understood that a Special Committee had been
appointed to investigate claims of this kind.
methods of valuing ships
With respect to the enemy merchant fleet, the Committee agreed that
the actual value should be estimated at the date of surrender to the
Allies.
The Committee is of the opinion that the work connected with such
valuation should be entrusted to an Inter-Allied Commission of
Experts.
supply of labour
In considering means of payment which might be imposed on the enemy,
the Committee discussed the desirability of requiring the enemy to
supply labour for the reconstruction of the devastated regions. The
imposition of such a requirement was found likely to give rise to
numerous difficulties and complications which were accordingly
exhaustively examined by the Committee. On the one hand,
representatives of those countries which had suffered greatly at the
hands of the enemy during the war felt strongly that the restoration
of destroyed towns and ravaged land should be a burden upon the
enemy States. They were not, in view of the many attendant
difficulties, anxious to avail themselves of enemy labour but, in
view of the shortage of labour in their own countries, felt that
they had no alternative but to call for it. On the other hand, it
was pointed out that the difficulties involved in the utilisation of
such labour would be such as really to outweigh any advantage that
could be derived from it. The employment of large bodies of enemy
workmen in an Allied country might give rise to endless industrial
complications in that country in regard to conditions of work, pay,
employment, &c. There was considerable ground for thinking that,
notwithstanding the most careful safeguards, the quality of this
labour might be very unsatisfactory. Further, though under the
circumstances the employment of enemy labour in this manner might be
completely justified, yet there was a great danger that public
opinion might at no very distant date, come to regard it as
indistinguishable from forced labour and refuse to tolerate its
continuance. After prolonged discussion of the subject and
consideration of various detailed proposals for the organisation of
such labour, the Committee regrets that it was not possible to
arrive at any agreement, and consequently is unable to make any
recommendations onthe matter.
[Page 192]
imposition of taxes
Other means of payment which were discussed included calling upon the
enemy to levy certain taxes; the total sum derived therefrom to be
applied in reduction of the debt to the Allied and Associated
Powers. The Committee considered various forms of new tax that might
be imposed, including monopolies and capital taxes, and also whether
it might not be preferable to force the enemy to increase taxes
already in existence without creating new ones. But the Committee
came to the conclusion that it was wiser to leave it to the enemy
Powers to devise the means of meeting the liabilities they would
assume by the signature of the Peace Treaty.
liquid assets
A Sub-Committee of the Financial Commission submitted to the Second
Sub-Committee for Reparation two proposals for the control and
assurance of the payment of a great part of the liquid assets. The
Sub-Committee approved these proposals, which it submits in the form
of clauses to be inserted in the Preliminary Peace Treaty (see
Annex, Clause D), with the intention that they shall also be applied
with regard to the other enemy countries.
chemical and electrical
products
The Sub-Committee recommend that the Allied and Associated States
should claim an option to require delivery at fair prices to be
fixed by the Inter-Allied Commission and credited against reparation
a proportion of all and any chemical and electrical products of
Germany as follows:—
Present stocks |
Any or all—subject to the approval of the
Inter-Allied Commission. |
Stocks of 1920 and 1921 |
25 |
per cent, |
of output |
Stocks of 1922 and 1923 |
20 |
” |
” |
Stocks of 1924 and 1925 |
15 |
” |
” |
For the benefit of the Allies jointly,††
works of art
As to works of art carried off or destroyed, the Committee is
unanimously of the opinion that the Clauses A and B to be inserted
in the Preliminary Treaty of Peace are applicable to the reparation
of this class of damage.
[Page 193]
Having concluded the first consideration of the financial capacity of
the enemy States and their means of payment and reparation, the
Sub-Committee adopted the following Resolution:—
“It is understood that in adopting the principles and
resolutions which have already been adopted, the
Sub-Committee does not exclude the adoption of additional
resolutions subsequently, or regard those already adopted as
exhaustive of all cases.”
The President of the Second
Sub-Committee.
Cunliffe
April 18, 1919.
Annex
Clauses Proposed for Insertion in the
Treaty of Peace
Clause A—Article Governing Restitution
(See the First Interim Report under “Restitution.”)
The enemy States must make immediate restitution of all property,
generally, and of whatsoever kind, belonging to the Allied Powers of
which they have possessed themselves for any purpose, and which is
now to be found on their territory.
Annex No. of the Treaty provides conditions according to which
restitution shall be made.
ANNEX
In accordance with Article No. of the Treaty, the enemy States shall
return to the Allied Powers all effects, whether movables or
fixtures, public property or that of artificial or natural persons,
which enemy nationals have carried off and which are now in enemy
territory. This clause applies to each and every object thus carried
off which may now be situated in the enemy States.
Accordingly those States shall execute a solemn undertaking
immediately to collect from their nationals returns setting forth
the whereabouts of effects now in the possession of the said
nationals drawn from territories of the Allied and Associated
Powers.
Laws shall immediately be enacted which shall provide that every
person who fails to make a return will be regarded as a receiver of
stolen goods and will be liable to severe penalties to be determined
by agreement with the Allied and Associated Powers.
An interval of one month from the signing of the Preliminary Treaty
of Peace will be allowed for the making of these returns.
A comprehensive return, setting forth the sources from which objects
have been drawn, if they have been identified, the nature of the
[Page 194]
objects and their present
location, shall be made to the Representatives of the Allied and
Associated Powers within a period of two months after the signature
of the Preliminary Treaty of Peace.
The provisions hereinafter recited show broadly what measures are to
be adopted to the end that complete restitution shall be made with
the least possible delay. It is the purpose of the High Contracting
Parties, however, that all necessary measures shall be taken to
assure, in the fullest degree, complete restitution of objects
carried off (subject to reservations hereinafter stated in the
interest of the Allied and Associated Powers). The enemy Governments
formally undertake to do all in their power to facilitate search and
return.
The Plan of Procedure that follows is applicable to objects of all
sorts; furniture, securities, objects of art, &c.
Plan of Procedure
I
Machines, machine-parts, machine tools, agricultural implements, and
necessaries of every sort and industrial or agricultural equipment
of every kind, including cattle, beasts of burden, &c, which
were taken from the territory occupied by the enemy armies under any
pretence whatsoever, by military or civil authority of the enemy, or
by private citizen of enemy’s countries, shall be at the disposal of
the Allied and Associated Powers for return to the places from which
they were taken, if the interested Government so determines.
II
In order to prepare for this restitution, the enemy Government shall,
with the utmost expedition, supply the duly appointed
representatives of the Allied and Associated Powers with all
records, official or private, relating to the objects in question;
also with all contracts for sale, lease or other purposes, all
correspondence thereto pertaining, all declarations and all useful
indications as to their existence, source, change of form, present
state and place of deposit.
III
Delegates of the Allied and Associated Governments shall, in their
discretion, take steps to make in the enemy countries surveys and
examinations on the spot of the objects indicated.
IV
Reshipments shall be made according to special instructions given
under the authority of the nation to which the particular objects
belong.
[Page 195]
V
Particularly, declarations shall be made with a view to an immediate
restitution of all accumulations in yards, on the rails, in boats,
or in factories, of belting, electric motors, motor parts,
accessories, &c., that have been taken from the invaded
territories.
VI
The retaking of an object of any kind that may be found or identified
shall in no case be obligatory upon the Allied and Associated
Powers, which shall be in no wise bound to take back objects. They
shall have the right to declare without assigning cause, that they
waive claim to the restitution of particular objects and require
reparation in lieu thereof by any other method contemplated by the
Treaty.
VII
All expenses incurred in searching for, return and completely
reinstalling objects that are restored shall be borne by the enemy
Power concerned. The restoration of objects as herein required shall
in no case affect the right to recover compensation for what has not
been so restored.
VIII
It is formally stipulated that no argument drawn whether from the law
or from the interpretation of any text whatsoever shall be invoked
by the enemy Powers in order to suspend or delay the execution of
any measure of restitution prescribed by the Representatives of the
Allied or Associated States. The execution of such a measure shall
always be immediate, a right to claim damages accruing only in case
it is subsequently adjudged that the measure in question was
contrary to the provisions of the Treaty.
Clause B—Article providing for Reparation by Equivalents
(See the First Interim Report.)
In every case where it is a matter of satisfying immediate needs, the
Allied States may take away objects in the enemy countries, whether
in actual use or not, especially rolling-stock, equipment and tools,
timber, live-stock, &c; these to be the equivalent of similar
objects removed, consumed, or destroyed by the enemy or worn out as
the result of acts of war.
Objects found in enemy countries which have been previously taken
from the territory of the Allied States cannot be taken as
equivalents, except upon condition that their owners do not claim
them in accordance with the procedure laid down in Article of the
Treaty of Peace.
[Page 196]
In order that the renewals herein provided for may be effected, an
Inter-Allied Commission of members shall be constituted with the
duty of deciding the claims of each one of the Allied States in
regard to its immediate needs of the objects falling under various
categories, and to determine the quantities of those objects which
the enemy countries are to deliver, the same to be apportioned in
accordance with the recognised needs of each one of the interested
parties.
Each allied country shall name Commissions, to be presided over by
Delegates of the Inter-Allied Commission, who shall proceed to the
enemy countries in order to select and take the objects falling
under various categories, within the authorised limitations.
The Chairman of the different National Commissions operating in the
same enemy country will be expected to confer together with a view
to co-ordinating the work of the Commissions.
Clause C—Articles relating to Merchant Shipping
I
1. The enemy Powers recognise 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 enemy
shipping at present in existence is much less than that lost by the
Allied and Associated Powers, the right thus recognised will be
enforced on enemy ships and boats under the following conditions:—
The enemy Powers 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 enemy
merchant ships which are of 1,600 tons gross and upwards; in
one-half, reckoned in tonnage, of the ships which are
between 1,600 tons and 1,000 tons gross; in one-quarter,
reckoned in tonnage, of the steam trawlers; and in one
quarter, reckoned in tonnage, of the other fishing
boats.
2. The enemy Powers will, within two months of the signature of the
Preliminaries of Peace, deliver to a representative of the Allied
and Associated Governments, duly authorised by them for this
purpose, all the ships and boats mentioned in Article I.
3. The ships and boats mentioned in Article I include all ships and
boats which (a) fly, or may be entitled to
fly, the enemy merchant flag; (b) are owned
by any enemy subject, company or corporation or by any neutral
company or corporation which is under the control or direction of
enemy subjects; (c) which are now under
construction in enemy or in neutral countries.‡‡
[Page 197]
4. For the purpose of providing documents of title for the ships and
boats to be handed over as above mentioned, the enemy Powers will:
- (a.)
- Deliver to the representative of the Allied and Associated
Governments in respect of each vessel a bill of sale or
other document of title evidencing the transfer of the
entire property in the vessel, free from all encumbrances,
charges and liens of all kinds, to that officer;
- (b.)
- Take all measures that may be indicated by the said
representative of the Allied and Associated Governments for
ensuring that the ships themselves shall be placed at his
disposal.
II
As an additional part of reparation, the German Government agrees to
cause merchant ships to be built in German yards for Allied account
as follows:
- (1.)
- Within three months of the signature of the Preliminaries
of Peace, the Allied and Associated Powers will notify the
German Government of 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;
- (2.)
- Within twenty-four months of the signature of the
Preliminaries of Peace, the Allied and Associated
Governments 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;
- (3.)
- The amount of tonnage to be laid down in each year will
not exceed 200,000 tons, gross tonnage.
- (4.)
- 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 in
the reparation account, and all other questions relating to
the accounting, ordering, building and delivery of the
ships, shall be determined by a Commission nominated by the
Allied and Associated Powers.
III
The enemy Powers undertake to restore in kind and in normal condition
of upkeep to the Allied and Associated Powers, within two months of
the signature of these preliminaries, any boats and other movable
appliances belonging to inland navigation which since the 2nd
August, 1914, have by any means whatever come into their possession
or into the possession of their 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 reparation in kind prescribed in the above
[Page 198]
paragraph, the enemy
Powers agree to cede to the Allied and Associated Powers a portion
of the enemy river fleet up to the amount of the reparation in kind
mentioned above, provided that such cession shall not exceed 20 per
cent, of the river fleet as it existed on the 11th November,
1918.
The conditions of this cession shall be settled by the same
arbitrators as 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.
IV
- 1.
- The enemy Powers undertake to take any measures that may be
indicated to them by the Allied and Associated Governments 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.
- 2.
- The enemy Powers abandon in favour of the Allied and
Associated Governments all claims of all descriptions against
the Allied and Associated Governments and against subjects or
citizens of Allied and Associated countries in respect of the
detention, employment, loss or damage of any enemy ships or
boats.
- 3.
- The enemy Powers abandon in favour of the Allied and
Associated Powers any claim to vessels or cargoes sunk by or in
consequence of enemy naval action and subsequently salved, in
which any of the Allied or Associated Governments or their
citizens or subjects may have any interest either as owners,
charterers, insurers or otherwise, notwithstanding any decree of
condemnation which may have been made by an enemy Prize
Court.
- 4.
- The enemy Powers will within three months of the signature of
the Preliminaries of Peace take all necessary legislative and
administrative measures to enable them to carry out the
provisions of this chapter.
amendments to clause c proposed by
the united states delegation (but not accepted by all
delegations)
(For explanation, see text of the Second Interim Report, above p.
2.)8
The Enemy Powers recognise as valid:—
- 1.
- The seizure during the war of enemy merchant ships by the
Allied and Associated Powers respectively.
- 2.
- The legality and sufficiency of the title to such ships
acquired through such seizures irrespective of the process
of means used to effect such seizures.
- 3.
- The full divesting of the enemy Powers and of each and
every national thereof, and of each and every other party
interested in such ships, of any right, title or interest in
such seized property.
The enemy Powers on behalf of themselves and so as to bind all other
persons interested in such ships, hereby acknowledge the divesting
of all and every right, title, property and interest of such enemy
Power, and/or of their nationals or others interested in the ships
so seized and taken possession of during the War by the Allied and
Associated Governments respectively, and further confirm the vesting
of such right, title, interest and property in such ships in the
Allied and Associated Governments respectively.
The reasonable value of such ships shall be determined and such value
shall be charged against the Government holding such ships and at
the option of such Government shall be credited to the respective
enemy Power which either itself or through its nationals or others
formerly owned the same, on all such claims as are finally allowed
respectively to such Allied or Associated Power as a result of the
Treaty of Peace, and/or shall be credited and paid to any subject,
citizen or other national of any enemy Power and/or others having or
claiming to have any interest in any such ships as their respective
interests may appear.
In the latter event, the balance, if any, shall be credited to such
enemy Power which through itself or its subjects, citizens,
nationals or others formerly owned such ships.
If such final credit so established in favour of any particular enemy
Power, when taken together with other credits that may be allowed
such Power under the terms of the Treaty of Peace, exceeds the
aggregate of claims allowed in the case of any Allied or Associated
Power establishing such credit, the excess shall be used and applied
in accordance with the provisions of the Treaty of Peace in respect
to such excess credits.
Clause D—Articles providing for control and assurance of the payment of
part of their liquid assets by enemy Powers
(Approved by the Second Sub-Committee, subject to the modification
that provisions applying to Germany shall be made applicable to the
other enemy Powers also.)
article 1
The German Government shall convey to the Allied and Associated
Governments, within three months, and along with such details as may
be called for, the following information which shall be supplied as
of the date of the signature of this Convention:—
- (a.)
- The total gold reserve in the Reichsbank; in the other
banks of issue; and in public treasuries.
- (b.)
- Whether situated in Germany§§ or outside of Germany.
- 1.
- All Foreign securities and obligations of foreign
States held by Germany or its nationals.
- 2.
- All foreign bank notes or other foreign paper
currency held by Germany or its nationals.
- 3.
- All foreign bills of exchange held by Germany and
its nationals.
- (c.)
- All property and interest of whatsoever nature belonging
to Germany and its nationals and situated in foreign
territory such as:—
- 1.
- Immovable property.
- 2.
- Movable property of every kind.
- 3.
- Merchandise.
- 4.
- Cash not included in (b.) 2
above.
- 5.
- Participations and credits of every kind not
included in paragraph (b.) 1,
2 or 3 above.
- 6.
- Options and contracts for work or materials,
orders unexecuted or incompletely executed that
involve products, merchandise, tools, and materials
of every kind, and concessions of whatever
sort.
article 2
The German Government undertakes to adopt all measures necessary to
acquire, if it does not own them already, and to transfer to the
Allied and Associated Governments all property and effects above
mentioned, for which it may be called upon by the aforesaid
Governments. Notice stating the effects to be transferred shall be
given within six months from the date of the report which the German
Government is to furnish under the terms of Article 1. The transfer
is to be effected by the German Government with the least delay
possible, and at most within six months of the date of the
notice.
Property and effects shall be valued by an Inter-Allied Financial
Commission, and the total shall be credited on account of reparation
due from Germany to the Allied and Associated Powers.
The provisions of this article shall not apply to property and
effects of the German Government or its nationals that, at the date
of this Convention, have already been sequestrated by the Allied and
Associated Powers, nor to what is situated on territory ceded by
Germany.
Clause E
From the date of bringing into force the present Treaty all the
concessions, privileges and favours enjoyed on German territory by
the subjects of Austria, Bulgaria, Hungary and Turkey, as the result
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of any act of a German
Public Authority after the 1st August, 1914, are assigned and
transferred by Germany to the Allied and Associated Powers under
conditions which shall be determined by the said Powers.
The same shall apply in respect of the concessions, privileges and
favours granted since the 1st August, 1914, and enjoyed on German
territory by German subjects as the result of an act of an Austrian,
Bulgarian, Hungarian or Turkish Public Authority.
Germany undertakes to cancel any sale, cession, or other measure of
disposal of the said concessions, privileges or favours which might
interfere with the assignment and transfer of these rights.
For this purpose Germany shall, as from the coming into force of the
present Treaty, take all necessary preservative measures, such as
requisition, sequestration, seizure, &c.
The Allied and Associated Powers shall not be liable on their part
for any claim for compensation or indemnities arising out of the
present stipulation.
April 18, 1919.
Additional Note
In the case of ships, as in the case of other property in kind ceded
by the Germans to the Allies, there may be cases in which there are
claims on the part of the Governments, or citizens, or subjects of
Allied and Associated States against the ships or property. These
claims should be considered on their merits before the ships or
property are distributed or otherwise dealt with by the Allies in
the event of the Germans not having satisfied the claims themselves
and before credit is given to Germany on account of these ships or
other property.
The Committee recommend that the Allied Drafting Committee should
have their attention called to these cases and should be asked to
formulate a clause for inclusion in the Peace Treaty providing that
cases of this kind shall be considered and that provisions be
inserted to safeguard the legal and equitable interests of the
Allied and Associated Governments and their nationals.
Appendix III
Valuation Clause
Clause (D). The damage for repairing, reconstructing and rebuilding
property in the invaded and devastated districts, including
reinstallation of furniture, machinery and other equipment, will be
measured by the cost at the dates when the work is done.