Paris Peace Conf. 180.03401/24½

CF–24/1

Notes of a Meeting Held at President Wilson’s House in the Place des Etats-Unis, Paris, on Thursday, May 22, 1919, at 4:15 p.m.

  • Present
    • United States of America
      • President Wilson
    • British Empire
      • Rt. Hon. D. Lloyd George
    • France
      • M. Clemenceau
    • Italy
      • M. Orlando
    • Experts of Reparation
      • Mr. Baruch
      • Mr. McCormick
      • Mr. Lamont
      • Mr. Norman Davis
      • Mr. Dulles
      • Mr. Robinson
      • Lord Sumner
      • Lord Cunliffe
      • Mr. Sutton
      • M. Klotz
      • M. Loucheur
      • M. Jouasset
      • M. Crespi
      • M. d’Amelio
Secretaries: Sir Maurice Hankey, K. C. B.
Count Aldrovandi
Interpreter: M. Mantoux

1. Reparation in the Treaty of Peace With Austria The Council had before them the draft of Reparation clauses for inclusion in the Treaty of Peace with Austria (Appendix).1

2. The Share of the New States President Wilson Called attention to the proposal, in the draft Reparation clauses for insertion into the Treaty with Austria, that the new states arising out of the former Austro-Hungarian Empire should bear a share in the Reparation debt. He considered that this would place an overwhelming burden on these States. He said that he was advised that if these countries took over the pre-war debt attaching to their territory and a Reparation liability also this would constitute a “per capita [”] liability exceeding that of France and Great Britain.

Mr. Lloyd George said he could not accept such an estimate and pointed out that the amount of the Reparation liability affecting those countries had not been fixed: this was left to the proposed Reparation Commission.

President Wilson said he was assuming that it was intended that these States should pay their share of the Reparation liability in full. This, in his opinion, would be an unduly heavy burden, and he was informed that, if it were imposed, some of these States would [Page 831] refuse to sign the Treaty. He pointed out that there was a danger that these States, being placed in a position of co-debtors with Germany, might turn in that direction for their economic development. He added that it was not so much the amount of the liability but the principle of its imposition that would have so damaging an effect on the immediate credit of these countries.

Mr. Lamont said that no doubt the proposal that these States should pay was just in principle: but the demands of the Reparation Commission seemed scarcely consonant with the aims of the Committee which had been set up with a view to assisting these States to establish their credit. Further he doubted whether they would be able to pay any sum of importance.

Mr. Lloyd George pointed out that the greater number of the nationals of these States had fought against the Allies right up to the end of the war: they would never have achieved their freedom but for the war. If they had remained neutral the war might have been shortened by two years. Why should they get their freedom without paying for it? It would surely be unjust that they should do so, when in Great Britain there would be a “per capita” liability of £800 per house as a result of the war. These states ought to bear the same burden as those who helped them to get their freedom. The Allies had advanced large sums to Serbia: was it intended that the Jugo-Slav State should bear none of this? He pointed out that some of these countries, e.g. Bohemia and Transylvania, had very large resources.

President Wilson pointed out that under the Financial Clauses of the Treaty these States are intended to share in the debts of the former Austro-Hungarian Empire, both the debts incurred during the war and previous to it. He agreed that Mr. Lloyd George was quite right in principle but he did not see how these countries could take a part in the credit system of Europe if they were pressed too hard and especially if they were not to know the extent of their indebtedness for two years.

M. Orlando said that it seemed to be suggested that the decision of the Council of Four that the former Austro-Hungarian Empire should be responsible for its indebtedness should now be reversed. He pointed out that Italy was undertaking the liability for her annexed territories. Mr. Lloyd George had referred to the shipping of Trieste as enemy shipping; but it could scarcely be properly so described if these new States were to get off their liability. Very possibly they could not pay much but the establishment of the principle was important. He could not go to his country and say that four-fifths of the Austro-Hungarian Empire was getting off its liabilities.

[Page 832]

President Wilson said that it was not suggested that these States should pay nothing. But he thought they ought to know at once what they have to pay.

M. Klotz said that in the proposed Reparation Clauses there were special advantageous provisions for these States, e. g. they are not required to issue bonds of guarantee: they are to pay nothing for two years: their liability having been fixed in 1921 may not subsequently be increased—i. e. there is no joint liability: they are allowed to use any payments they may be entitled to from enemy States as a set-off against their indebtedness.

Mr. Lloyd George agreed with President Wilson that it was not desirable that these States should have an indefinite liability hanging over them for so long. He thought the amount could be fixed in a shorter time than two years: six months should be enough. The problem was not a gigantic one as in the case of Germany. He thought further that the Austrian debt to the Allies should be provided for before her own internal debts. He doubted whether it was a good thing to have the same Reparation Commission to deal with Austria and Germany. He thought this might involve delay.

3. The Question of a Separate Reparation commission President Wilson said that he understood that this question had been thoroughly discussed before settlement. He thought that the main directing Commission should be the same in both cases though they would, of course, have experts to assist them on special places and questions.

Mr. Lloyd George said that the decision to have the same Commission in both cases had been taken in view of the interval of two years adopted in each case for the fixation of liability: but the adoption of a time limit of six months in the case of Austria would involve the appointment of a separate Commission. Further, it would not be necessary to work on quite such rigid principles in the case of Austria.

Mr. Lamont pointed out that if there were two Commissions and they were empowered to deal in the bonds to be issued they might compete against each other.

M. Orlando thought that a number of Sub-Committees etc. would be necessary but thought that there should be one Supreme Commission.

M. Klotz thought it would be difficult for the same Commission to deal with both debts in view of the shorter interval now proposed for the fixation of the Austrian debt. He suggested that the Main Commission might constitute a special section to deal with Austria.

President Wilson said there now seemed general agreement in principle and suggested that the present Commission on Reparation should settle the point.

[Page 833]

4. Belligerency an Essential to Reparation Claims M. Crespi called attention to the last paragraph of Article II of the proposed Reparation Clauses and the note attached thereto, as follows:—

(Art. 232 of the Treaty with Germany) “Damage done to persons or the property of persons who, at the moment when the damage took place, did not belong to the population of a State which, at the period in question, was recognised by the majority at least of the principal Allied and Associated Powers is not included herein.”

Note:

“In the Conditions of Peace transmitted to Germany, the English text limits the right of the Allied and Associated Powers to the recovery of damage suffered ‘during the period of the belligerency of each as an Allied and Associated Power against Germany.’ There is no corresponding phrase in the French text.

The phraseology of the English text appears to have been introduced by the Drafting Committee of the Peace Conference as the result of a communication to the effect that the Supreme Council had decided not to accord the right of recovery for damage suffered by new States which, at the times the damage was suffered, had not yet been recognised. The English text adopted does not appear to be entirely in accordance with the decision of the Supreme Council, since its effect, among other things, is to prevent recovery for damage suffered from acts of aggression leading up to a declaration of war against Germany, and to prevent recovery for damage suffered by Allied and Associated States during the period when they were at war with Austria-Hungary but not yet with Germany.

“Accordingly, the Commission charged with the preparation for submission to the Supreme Council of Reparation Clauses for the Treaty of Peace with Austria has in the above text eliminated the words ‘during the period of the belligerency of each as an Allied and Associated Power’ and has substituted the above sentence, which it is believed will more accurately express what is understood to be the intention of the Supreme Council.”

He pointed out that some States though not actually at war with Germany had suffered damage at German hands: similarly with Austria. He thought that in such cases a claim for damage should be established.

M. Orlando pointed out that the question was the same for Austria and Germany: there must be a uniform text.

Mr. Lloyd George said that the text suggested in the Reparation Clauses would exclude Poland. He pointed out that this text would enable Italy to claim against Germany in respect of a period during which she was not at war with Germany. He thought such a claim could not be substantiated.

M. Orlando said that Reparation was based on the principle of solidarity. As regards the Adriatic Italy accepted the view that this principle prevented any special claims. He thought it would [Page 834] be very difficult to distinguish damage caused by Austrian from that caused by German agency.

M. Crespi said that German aeroplanes had bombarded his factory before the declaration of war by Italy against Germany, and there was no doubt that German U Boats had sunk Italian ships before this date. On the principle of solidarity Germany should be regarded as responsible for all damage.

Mr. Lloyd George said that Italy, no doubt for very good reasons, did not for a considerable period, declare war on Germany, though urged to do so by the Allies. This was a considerable hindrance to the Allies in the effective application of the blockade. He further pointed out that U Boats sunk neutral as well as Allied shipping. He did not think that claims by Italy for damage against Germany before she declared war on Germany could be justified.

On the proposal of M. Klotz it was agreed that the words “during the period of the belligerency of each as an Allied and Associated Power against Austria” should be inserted in Article II and the last paragraph omitted. It was further agreed that the same form which had been omitted from the French text but retained in the English text of Article 232 of the Treaty with Germany should be inserted in the French text.

Consequent on this discussion M. Orlando initialled the Resolution given in the Appendix hereto2 which had already been initialled by his three colleagues, and Sir Maurice Hankey was instructed to for-ward it to the Secretary-General for the information of the Drafting Committee.

5. Shipping M. Klotz then called attention to Annex III of the proposed Reparation Clauses for Austria, dealing with merchant shipping. He pointed out that as Austria becomes a land-locked country it was proposed that she should surrender her entire merchant fleet. He called attention to the Italian objection to this proposal and to the recommendation made by the French and American representatives on the Reparation Commission that an arrangement should be made to leave a larger percentage of shipping in the Adriatic than would normally be the case under the pool.

M. Orlando expressed the thanks of Italy for the French and American proposals. He said, however, that he failed to see why the Adriatic should be worse off as regards shipping than Germany who is to be left with a proportion of her smaller tonnage and fishing vessels. He pointed out that the smaller craft and coasting vessels were an important part of the economic life of the coastal population and he thought it unjust and dangerous to take them away from their owners. It was true that Austria was to have no ports but the sea and the sea-faring population remain. The tonnage in question—some 60,000 tons—was a relatively small matter.

[Page 835]

Mr. Lloyd George said he thought there would be no difficulty over the fishing vessels. But shipping was an especial concern of Great Britain owing to her very heavy losses—nearly 8 million tons. The Greeks had also been very heavy losers and moreover had lost precisely the kind of ship which it was proposed should be given to Italy and the Jugo-Slavs. He reminded the Council that Great Britain had lost her ships in carrying for Italy and France etc. British tonnage had been placed at the disposal of the whole world and none of it used for private enterprise. The recent withdrawals for various reasons by various countries, e. g. the United States of America, Brazil and Portugal, of shipping from the pool was making a very bad impression in Great Britain. The country was very short of shipping, and probably, taking all things into account, it was the most important British industry. He asked the council not to force a concession on Great Britain at that meeting. He suggested there should be a conference between the parties interested, including Greece, with representatives of the British Board of Trade who would not be found indisposed to make concessions.

It was agreed that the text of the Annex should stand and that a special arrangement for the Adriatic should be considered by representatives of France, Italy, Greece and Great Britain.

Libraries, Museums, Art Collection etc. Lord Sumner said that he had been approached by representatives of Jugo-Slavia who wished to secure a share for Jugo-Slavia of the libraries and learned materials of all kinds now in Vienna. He did not think that this matter fell within Reparation but he had drawn up the following clause providing, not for the division of this material, but securing that Austria should maintain it in good condition, allow reasonable access to it, etc.

“With regard to all objects of an artistic, archaeological, scientific or historic character, forming part of collections, which formerly belonged to the Government or to the Crown of the Austro-Hungarian Empire and are not otherwise provided for in this present Treaty, Austria undertakes:

(a)
to negotiate, when required, with the States concerned, for an amicable arrangement, whereby any portion thereof or any objects belonging thereto which ought to form part of the intellectual patrimony of the ceded districts, may be repatriated to their districts of origin on terms of reciprocity, and
(b)
for twenty years, unless such an arrangement is sooner arrived at, not to alienate or disperse any of the said collections, or to dispose of any of the above objects, but at all times to ensure their safety and good condition and to make them available at all reasonable times to students, who are nationals of any of the Allied and Associated Powers.”

This clause was adopted.

[Page 836]

Reparation in the Treaty With Bulgaria On the suggestion of Mr. Lloyd George the drafting of Reparation Clauses for Bulgaria was referred to the Reparation Commission.

Decisions To Be Discussed With Small States President Wilson said that, having regard to the fact that the rights of small States deserve special consideration, he thought that the representatives of the States previously forming part of the Austro-Hungarian Empire should have an opportunity of giving their views before the text of these Clauses of the Treaty with Austria was definitely adopted.

This was agreed.

The meeting terminated at 6.45 p.m.

[Appendix I to CF–24/1]

Treaty With Austria—Draft Reparation Clauses

Woodrow Wilson Papers

Section I.—General Provisions

Article I

The Allied and Associated Governments affirm and Austria accepts the responsibility of Austria 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 Austria and her Allies.

Article II

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

The Allied and Associated Governments further require and Austria undertakes that she will make compensation for all damage done to the civilian population of the Allied and Associated Powers and to their property by the said aggression by land, by sea and from the air, and in general all damage as defined in Annex I hereto.

Damage done to persons or the property of persons who, at the moment when the damage took place, did not belong to the population of a State which, at the period in question, was recognised by [Page 837] the majority at least of the principal Allied and Associated Powers is not included herein.*

Article III

The amount of such damage for which compensation is to be made by Austria shall be determined by an Inter-Allied Commission to be called “The Reparation Commission” and constituted in the form and with the powers set forth hereunder in Annexes II–V inclusive hereto. The said Commission is the same as that provided for by Article 233 of the Treaty with Germany.

The Commission of Reparation shall consider the claims and give to the Austrian Government a just opportunity to be heard. The Reparation Commission shall determine the total amount of damage under Annex I hereto, and after taking into consideration the past and present situation of the former Austro-Hungarian Empire and such other facts as the Commission may think relevant, the Commission will allocate against the territory of the former Austro-Hungarian Empire, including portions thereof which may form part either of new States or of Allied and Associated States, so much of the total amount of damage as the Commission may determine. After having made this determination, the Commission shall divide the total amount allocated to the territory of the former Austro-Hungarian Empire among the different States to which such territory will belong in pursuance of the present Treaty. In making such allocation the Commission shall take into consideration the resources of the respective portions of the territory referred to above and, in particular, such resources as are affected by damage suffered, as well as by the diminutions resulting from other clauses of the [Page 838] present Treaty. The Commission may also take into consideration such other facts as it may deem relevant. The interested Powers shall be notified not later than the 1st May, 1921, of the compensation which may be required under the categories of damage set out in Annex I conformably to the procedure indicated above. The Commission shall notify Austria of the amount arrived at as the total of the claims and the allocation thereof fixed as above provided, at the same date as notification is made to the other States, but the portion of liability assigned to Austria will not be finally fixed but shall remain provisional until the Commission shall unanimously be of the opinion that Germany has the resources and the intent to pay the total amount of claims presented against Germany and her allies and approved by the Commission after deducting from such total amount the portion allocated to territory of the former Austro-Hungarian Empire.

The Commission shall concurrently fix a schedule of payments prescribing the time and manner for the discharge by Austria of her entire obligations, as they shall have been provisionally determined in accordance with the preceding paragraph, within a period of thirty years from the 1st of May, 1921. If, however, within the period mentioned, Austria fails to discharge her obligations, any balance remaining unpaid may, within the discretion of the Commission, be postponed for settlement in subsequent years or may be handled otherwise in such manner as the Allied and Associated Governments, acting in accordance with the procedure laid down in this part of the present Treaty, shall determine.

Article IV

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

Article V

In order to enable the Allied and Associated Governments to proceed at once to the restoration of their industrial and economic life pending the full determination of their claims, Austria shall pay in the course of the years 1919, 1920 and the first four months of 1921, in such instalments and in such manner (whether in gold, [Page 839] commodities, ships, securities or otherwise) as the Reparation Commission may lay down, a reasonable sum which shall be determined by the Commission.

Out of this sum the expenses of the armies of occupation subsequent to the Armistice of the 3rd November, 1918, shall first be met, and such supplies of food and raw materials as may be judged by the Governments of the principal Allied and Associated Powers essential to enable Austria to meet her obligations for reparation may also, with the approval of the said Governments, be paid for out of the above sum. The balance shall be reckoned towards the liquidation of the amount due for reparation.

Austria shall further deposit bonds as prescribed in paragraph 12 (c.) of Annex II hereto.

Article VI

Austria further agrees to the direct application of her economic resources to reparation as specified in Annexes III, IV and V relating respectively to merchant shipping, to physical restoration and to raw material: provided always that the value of the property transferred and any services rendered by her under these Annexes, assessed in the manner therein prescribed, shall be credited to her towards the liquidation of her obligations under the above Articles.

Article VII

The successive instalments including the above sum paid over by Austria 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 the rights of each.

For the purposes of this division the value of the credits referred to in Article XIII and in Annexes III, IV and V shall be reckoned in the same manner as cash payments made in the same year.

Article VIII

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

[Page 840]

Article IX

The Austrian Government undertakes to make forthwith the restitution contemplated in Article VIII above and to make the payments and deliveries contemplated in Articles III, IV, V and VI above.

Article X

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

The Austrian 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 Austria and her nationals, and further any information relative to military operations which, in the judgment of the Commission, may be necessary.

The Austrian Government shall accord to the members of the Commission and its authorised agents the same rights and immunities as are enjoyed in Austria by duly accredited diplomatic agents of friendly Powers. Austria further agrees to provide for the salaries and the expenses of the Commission and of such staff as it may employ.

Article XI

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

Article XII

The provisions in this part of the present Treaty shall not affect in any respect the provisions of Sections III and IV of Part X (Economic Clauses) of the present Treaty.

Article XIII

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

(a.)
Any final balance in favour of Austria under Sections III and IV of Part X (Economic Clauses) of the present Treaty.
(b.)
Amounts due to Austria in respects of transfers provided for . . . .
(c.)
All amounts which, in the judgment of the Reparation Commission, should be credited to Austria on account of any other transfers under the present Treaty, of property, rights, concessions or other interests. In no case, however, shall credit be given for property restored in accordance with Article VIII.

Article XIV

The Powers other than Austria, referred to in the fourth paragraph of Article III in the present part of this Treaty, and to which a portion of the reparation charges shall have been allocated in conformity with the said Article, shall be debited with the amount of this portion.

This portion shall form the subject of a schedule of payments established under the conditions indicated in the last paragraph of Article III, and each of the sums charged to each of the Powers interested in carrying out this system of payments may, subject to the consent of the Reparation Commission, be compensated for up to the amount in question when it falls due, by such sums which the said Power may be entitled to receive as reparation, at the same time or subsequently, both in virtue of the present Treaty and of Treaties concluded with Powers allied to Austria. The surplus, if there be any, shall be paid to the Commission under conditions to be determined by it. If the compensation is not carried out, the payments shall be made in entirety to the Reparation Commission.

The Commission shall always have the power to postpone or to remit in part or in whole the payments referred to above. Decisions relating to a final remission of payment must be unanimous.

Article XV

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

annex i

Compensation may be claimed from Austria in accordance with Article II above in respect of the total damage under the following categories:—

1.
Damage to injured persons and to surviving dependants by personal injury to or death of civilians caused by acts of war, including bombardment or other attacks on land, on sea or from the air, and of the direct consequences thereof and of all operations of war by the two groups of belligerents wherever arising;
2.
Damage caused by Austria or her allies to civilian victims of acts of cruelty, violence or maltreatment (including injuries to life or health as a consequence of imprisonment, deportation, internment or evacuation, of exposure at sea, or of being forced to labour by Austria or by her allies) wherever arising and to the surviving dependants of such victims;
3.
Damage caused by Austria or her allies in their own territory or in occupied or invaded territory to civilian victims of all acts injurious to health or capacity to work or to honour as well as to the surviving dependants of such victims;
4.
Damage caused by any kind of maltreatment of prisoners of war;
5.
Damage caused to the peoples of the Allied and Associated Powers by pensions or compensations in the way of pensions to Naval and Military victims of war, including members of the Air Force, whether mutilated, wounded, sick or invalided, and to the dependants of such victims, the amount due to the Allied and Associated Governments being calculated for each individual as being capitalised cost of such pensions and compensations at the date of the coming into force of the present Treaty on the basis of the scales in force in France on the 1st May, 1919.
6.
The cost of assistance by the Governments of the Allied and Associated Powers to prisoners of war, to their families and dependants.
7.
Allowances by the Governments of the Allied and Associated Powers to the families and dependants of mobilised persons or persons serving with the forces, the amount due to them for each calendar year in which hostilities occurred being calculated for each Government on the basis of the average scale for such payments in force in France during that year.
8.
Damage caused to civilians by being forced by Austria or her allies to labour without just remuneration.
9.
Damage in respect of all property, wherever situated, belonging to any of the Allied or Associated States or their nationals, with the exception of naval or military works or materials, which has been carried off, seized, injured, or destroyed by the acts of Austria or her allies on land, on sea, or from the air, or damage directly in consequence of hostilities or of any operations of war.
10.
Damage in the form of levies, fines and other similar exactions imposed by Austria or her allies upon the civilian population.

annex ii

1. The Commission referred to in Article III shall be called the “Reparation Commission” and is hereafter referred to as the “Commission.” Delegates to this Commission shall be nominated by the [Page 843] United States of America, Great Britain, France, Italy, Japan, Belgium and Serbia, and each of these Powers will appoint one Delegate and also one assistant Delegate who will take his place in the case of illness or necessary absence but at other times will only have the right to be present at proceedings without taking any part therein. On no occasion shall Delegates of more than five of the above Powers have the right to take part in the proceedings of the Commission and to record their votes.

2. The Delegates of the United States of America, Great Britain, France and Italy shall have this right on all occasions. The Delegate of Japan shall have this right on occasions when questions relating to damage by sea and questions arising under Article XIV of the Financial Clauses, in which Japanese interests are concerned, are under consideration. The Delegate of Serbia shall have this right when questions relating to Austria, Hungary or Bulgaria are under consideration.

3. Such of the Allied and Associated Powers as may be interested shall have the right to appoint a Delegate to be present and act as assessor only when their respective claims and interests are under examination or discussion: this Delegate shall not have the right to vote. When the Commission, in application of paragraph 7 following, appoints Committees to consider questions arising under the present Treaty, a reasonable representation of such Allied and Associated Powers as may be interested shall, if they so desire it, be provided for.

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

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

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

7. The Commission is authorised to appoint all necessary officers, agents and employés who may be required for the execution of its functions and to fix their remuneration; to constitute committees, whose members need not necessarily be members of the Commission, [Page 844] and to take all executive steps necessary for the purpose of discharging its duties; and to delegate authority and discretion to officers, agents and committees.

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

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

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

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

12. The Commission shall have all the powers conferred upon it and shall exercise all the functions assigned to it by the present Treaty. It shall, in general, have wide latitude as to its control and handling of the whole reparation problem as dealt with in this part of the present Treaty, and shall have authority to interpret its provisions. Subject to the provisions of the present Treaty, the Commission is constituted by the several Allied and Associated Governments referred to in paragraphs 2 and 3 above as the exclusive agency of the said Governments respectively for receiving, selling, holding, and distributing the reparation payments to be made by Austria and by the States referred to in Article III under this part of the present Treaty.

The Commission must comply with the following conditions and provisions:—

(a.)
Whatever part of the full amount of the proved claims is not paid in gold or in ships, securities, commodities or otherwise, Austria shall be required, under such conditions as the Commission may determine, to cover by way of guarantee, by an equivalent issue of bonds, obligations or otherwise, in order to constitute an acknowledgement of the said part of the debt.
(b.)
In periodically estimating Austria’s capacity to pay the Commission shall examine the Austrian system of taxation. First, to the end that the sums for reparation which Austria is required to pay shall become a charge upon all [Page 845] 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 Austrian scheme of taxation is fully as heavy proportionately as that of any of the Powers represented on the Commission.
(c.)
In order to facilitate and continue the immediate restoration of the economic life of the Allied and Associated countries the Commission shall, as provided in Article V, take from Austria by way of security for and acknowledgment of her debt a first instalment of gold bearer bonds free of all taxes or charges of every description established, or to be established, by the Austrian Government or by any authority subject to them. These bonds will be delivered on account and in three portions (the crowns gold being payable in conformity with Article XVII of the Financial Clauses of the present Treaty), as follows:—
(1.)
To be issued forthwith 2 milliards crowns 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 Austria is pledged to make in conformity with Article V of the present part of this Treaty, after deduction of the sums used for the reimbursement of the expenses of the armies of occupation and for payments of foodstuffs and raw materials. Such bonds as may not have been redeemed by the 1st May, 1921, shall then be exchanged for new bonds of the same type as those provided for below (paragraph 12(c), 2). If the sum fixed for the Reparation Commission in application of Article V for the payments to be made in 1919, 1920 and 1921 is less than the figure of 2 milliards mentioned above, the Commission shall cancel the amount of the bonds issued in excess of this sum.
(2.)
To be issued forthwith 4 milliard crowns gold bearer bonds bearing interest at 2½ per cent. per annum between 1921 and 1926, and thereafter at 5 per cent, per annum with an additional 1 per cent, for amortisation beginning in 1926 on the whole amount of the issue.
(3.)
To be delivered forthwith a covering undertaking in writing to issue when, but not until, the Commission is satisfied that Austria can meet such interest and sinking fund obligations, a further instalment of four milliard crowns bearer bonds bearing interest at five per cent., the time and mode of payment of principal and interest to be determined by the Commission.
The dates for the payment of interest, the manner of employing the amortisation vote and of other questions relating to the issue, management and regulation of the bond issue shall be determined by the Commission from time to time.
Further issues by way of acknowledgment and security may be required as the Commission subsequently determines from time to time.
In case the Reparation Commission should proceed to [Page 846] fix definitely and no longer provisionally the sum of the common charges to be borne by Austria as a result of the claims of the Allied and Associated Powers, the Commission shall immediately annul all bonds which may have been issued in excess of this sum.
(d.)
In the event of bonds, obligations or other evidence of indebtedness issued by Austria by way of security for or acknowledgment of her reparation debt being disposed of outright, not by way of pledge, to persons other than the several Governments in whose favour Austria’s original indebtedness was credited, an amount of such reparation indebtedness shall be deemed to be extinguished corresponding to the nominal value of the bonds, &c., so disposed of outright and the obligation of Austria in respect of such bonds shall be confined to her liabilities to the holders of the bonds, as expressed upon their face.
(e.)
The damage for repairing, reconstructing and re-building property situated in the invaded and devastated districts, including re-instalment of furniture, machinery and other equipment, shall be calculated according to the cost at the date when the work is done.
(f.)
Decisions of the Commission relating to the total or partial cancellation of the capital or interest of any of the verified debt of Austria must be accompanied by a statement of its reasons.

13. As to voting the Commission will observe the following rules:—

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

On the following questions unanimity is necessary:—

(a.)
Questions involving sovereignty of any of the Allied and Associated Powers or the cancellation of the whole or any part of the debt or obligations of Austria;
(b.)
Questions of determining the amount and conditions of bonds or other obligations to be issued by the Austrian Government and of fixing the time and manner for selling, negotiating or distributing such bonds;
(c.)
Any postponement, total or partial, beyond the end of 1930, of the payment of instalments falling due between the 1st May, 1921, and the end of 1926 inclusive.
(d.)
Any postponement, total or partial, of any instalments falling due after 1926 for a period exceeding three years.
(e.)
Questions of applying in any particular case a method of measuring damages different from that which has been previously applied in a similar case.
(f.)
Questions of the interpretation of the provisions in this part of the present Treaty.

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

[Page 847]

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

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

15. The Commission shall issue to each of the interested Powers in such form as the Commission shall 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 intc a number of parts not exceeding five;
(2.)
From time to time certificates stating goods delivered by Austria on account of her reparation debt which it holds for the account of the said Power.

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

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

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

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

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

18. The measures which the Allied and Associated Powers shall have the right to take, in the case of voluntary default by Austria, and which Austria agrees not to record as acts of war, may include [Page 848] economic and financial prohibitions and in general such other measures as the respective Governments may determine to be necessary in the circumstances.

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

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

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

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

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

annex iii

1

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

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

The Austrian Government on behalf of themselves, and so as to bind all other persons interested, cede to the Allied and Associated [Page 849] Governments the property in all merchant ships and fishing boats belonging to Austrian nationals.

2

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

3

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

4

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

(a.)
Deliver to the Reparation Commission in respect of each vessel a bill of sale or other document of title evidencing the transfer to the Commission of the entire property in the vessel, free from all encumbrances, charges and liens of all kinds as the Commission may require;
(b.)
Take all measures that may be indicated by the Reparation Commission for ensuring that the ships themselves shall be placed at its disposal.

5

Austria undertakes to restore in kind and in normal condition of upkeep to the Allied and Associated Powers within two months of the coming into force of the present Treaty in accordance with procedure to be laid down by the Reparation Commission any boats and [Page 850] other movable appliances belonging to inland navigation which, since the 1st August, 1914, have by any means whatever come into her possession or into the possession of her nationals and which can be identified.

With a view to make good the loss in inland navigation tonnage from whatever cause arising which has been incurred during the war by the Allied and Associated Powers, and which cannot be made good by means of the restitution prescribed above, Austria agrees to cede to the Reparation Commission a portion of the Austrian river fleet up to the amount of the loss mentioned above, provided such cession shall not exceed 20 per cent, of the river fleet as it existed on the 3rd November, 1918. The conditions of this cession shall be settled by the arbitrators referred to in Article (339) of Part (XII)—(Ports, Waterways and Railways) of the present Treaty, who are charged with the settlement of difficulties relating to the apportionment of river tonnage resulting from the new international regime applicable to certain river systems or from the territorial changes affecting those systems.

6

Austria agrees to take any measures that may be indicated to her by the Reparation Commission for obtaining a 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.

7

Austria waives all claims of any description against the Allied and Associated Governments and their nationals in respect of the detention, employment, loss or damage of any Austrian ships or boats.

8

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

annex iv

1

The Allied and Associated Powers require and Austria undertakes that in part satisfaction of her obligations expressed in this part of [Page 851] the present Treaty, she will, as hereinafter provided, devote her economic resources directly to the physical restoration of the invaded areas of the Allied and Associated Powers to the extent that these Powers may determine.

2

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

(a.)
Animals, machinery, equipment, tools and like articles of a commercial character which have been seized, consumed or destroyed by Austria, or destroyed in direct consequence of military operations, and which such Governments, for the purpose of meeting immediate and urgent needs, desire to have replaced by animals and articles of the same nature which are in being in Austrian territory at the date of the coming into force of the present Treaty.
(b.)
Reconstruction materials (stones, bricks, refractory bricks, tiles, wood, window glass, steel, lime, cement, &c., machinery, heating apparatus, furniture and like articles of a commercial character, which the said Governments desire to have produced and manufactured in Austria and delivered to them to permit of the restoration of the invaded areas.

3

The lists relating to the articles mentioned in 2 (a) above shall be filed within sixty days after the date of the coming into force of the present Treaty. The lists relating to the articles in 2 (b) shall be filed on or before the 31st December, 1919. The lists shall contain all such details as are customary in commercial contracts dealing with the subject-matter, including specifications, dates of delivery (but not extending over more than four years) and places of delivery but not prices or value, which shall be fixed as hereinafter provided by the Commission.

4

Immediately upon the filing of such lists with the Commission, the Commission shall consider the amount and number of the materials and animals mentioned in the lists provided for above which are to be required of Austria. In reaching a decision on this matter the Commission shall take into account such domestic requirements of Austria as it deems essential for the maintenance of Austrian social and economic life, the prices and dates at which similar articles can be obtained in the Allied and Associated countries as compared with those to be fixed for Austrian articles, and the general interest of the Allied and Associated Governments, that the industrial life be not so disorganised as to affect adversely the ability of the Austrians to perform the other acts of reparation stipulated for. Machinery, [Page 852] equipment, tools and like articles of a commercial character in actual industrial use are not, however, to be demanded of Austria unless there is no free stock of such articles respectively which is not in use and is available, and then not in excess of 30 per cent, of the quantity of such articles in use in any one establishment or undertaking.

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

The decision of the Commission shall thereupon and at the earliest possible moment be communicated to the Austrian Government and to the several interested Allied and Associated Governments. The Austrian Government undertakes to deliver the materials, articles and animals as specified in the said communication, and the interested Allied and Associated Governments severally agree to accept the same, providing they conform to the specification given or are not, in the judgment of the Commission, unfit to be utilised in the work of reparation.

5

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

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

6

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

  • Italy:
    • 4,000 milch cows of from 3 to 5 years;
    • 1,000 heifers;
    • 50 bulls from 18 months to 3 years;
    • 1,000 calves;
    • 1,000 working bullocks;
    • 2,000 sows.
  • Serbia:
    • 1,000 milch cows of from 3 to 5 years;
    • 500 heifers;
    • 25 bulls from 18 months to 3 years;
    • 1,000 calves;
    • 500 working bullocks;
    • 1,000 draught horses;
    • 1,000 sheep.
  • Roumania:
    • 1,000 milch cows of from 3 to 5 years;
    • 500 heifers;
    • 25 bulls from 18 months to 3 years;
    • 1,000 calves;
    • 500 working bullocks;
    • 1,000 draught horses;
    • 1,000 sheep.

The animals delivered shall be of average health and condition. If the animals so delivered cannot be identified as animals taken away or seized, the value of such animals shall be credited against the reparation obligations of Austria in accordance with paragraph 5 of this Annex.

7

As an immediate advance on account of the articles referred to in paragraph 2 above, Austria undertakes to deliver during the six months following the coming into force of the present Treaty in equal monthly instalments such supplies of furniture in hard and soft wood intended for sale in Austria as the Allied and Associated Powers shall ask for month by month through the Reparation Commission and which the Commission shall consider justified on the one hand by the seizures and destruction carried out in the course of the war on the territory of the said Powers and on the other hand proportionate to the supplies at the disposal of Austria. The price of the articles so supplied shall be carried to the credit of Austria under the conditions provided for in paragraph 5 of this Annex.

annex V

1

Austria shall give, as partial reparation, to the Allied and Associated Governments severally an option during the five years following the coming into force of the present Treaty for the annual delivery of the raw materials hereinafter enumerated: the amounts delivered to bear the same relation to their annual importations of these materials before the war from Austria-Hungary as the resources of Austria as now delimited by the present Treaty bear to the resources before the war to [of] the former Austro-Hungarian Empire.

[Page 854]
  • Timber and timber manufactures;
  • Iron and iron alloys;
  • Magnesite.

2

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

3

The foregoing options shall be exercised through the intervention of the Reparation Commission, which subject to the specific provisions hereof shall have power to determine all questions relative to procedure and qualities and quantities of products and the times and modes of delivery and payment. In giving notice to the Austrian Government of the foregoing options, the Commission shall give at least 120 days’ notice of deliveries to be made after the 1st January, 1920, and at least 30 days’ notice of deliveries to be made between the coming into force of the present Treaty and the 1st January, 1920.

If the Commission shall determine that the full exercise of the foregoing options would interfere unduly with the industrial requirements of Austria, the Commission is authorised to postpone or to cancel deliveries and in so doing to settle all questions of priority.

annex vi

Austria renounces on her own behalf and on behalf of her nationals in favour of Italy all rights, titles or privileges of whatever nature in any submarine cables or portions of cables connecting the territories which are assigned to the Kingdom of Italy under the present Treaty.

Austria also renounces on her own behalf and on behalf of her nationals in favour of the principal Allied and Associated Powers all rights, titles and privileges of whatever nature in the submarine cables, or portions thereof, connecting the territories ceded by Austria under the terms of the present Treaty to the various Allied and Associated Powers.

The States concerned shall provide for the upkeep of the installations and the proper working of the said cables. As regards the cable from Trieste to Corfu, the Italian Government shall enjoy in its relations with the company owning this cable the same position as that held by the Austro-Hungarian Government, reserving at the [Page 855] same time the right to conclude a new agreement with the above-mentioned company. The value of the cables or portions of cables referred to in the two first paragraphs of the present Annex, calculated on the basis of the original cost, less a suitable allowance for depreciation, shall be credited to Austria in the Reparation Account.

Section IISpecial Provisions

Article XVI

In carrying out the provisions of Article VIII Austria undertakes to surrender to each of the Allied and Associated Powers respectively all records, documents, objects of antiquity and of art, and all scientific and bibliographical material taken away from the invaded territories whether they belong to the State or to provincial, communal, charitable or ecclesiastical administrations or other public or private institutions.

Article XVII

Austria shall in the same manner restore objects of the same nature as those referred to in the preceding article which may have been taken away since the 1st June, 1914, from the ceded territories, with the exception of objects bought from private owners. The Reparation Commission will apply to these objects the provisions of Article XI of the Financial Clauses, if these are appropriate.

Article XVIII

The Austrian Government will hand over without delay to the Allied and Associated Governments concerned, archives, registers, plans, title deeds and documents of every kind concerning the civil, military, financial, judicial or other forms of administration in the ceded territories. If any one of these documents, archives, registers, title deeds or plans is missing it shall be restored by the Austrian Government upon the demand of the Allied and Associated Governments concerned.

Austria will give up to each of the Allied States respectively all the records, documents and historical material possessed by public institutions which may have a direct bearing on the history of the ceded territories and which have been removed during the last ten years. This last-mentioned period, as far as concerns Italy, shall be extended to the date of the proclamation of the Kingdom (1861).

The new States arising out of the late Austro-Hungarian Empire and the States which receive part of the territory of this Empire undertake on their part to give up to the Austrian Government the records, documents and material dating from a period not exceeding twenty years, which have a direct bearing on the history or administration of the new Austrian territory and which may be found in the territories ceded to the Allied and Associated Powers.

[Page 856]

Article XIX

Austria acknowledges that she remains bound, as regards Italy, to execute in full the obligations referred to in Article 15 of the Treaty of Zurich of the 10th of November, 1859, in Article 18 of the Treaty of Vienna of the 3rd of October, 1866 and by the Convention of Florence of the 14th of July, 1868, concluded between Italy and the Emperor of Austria-Hungary.

Article XX

Within a period of twelve months after the coming into force of the present Treaty a Committee of three jurists appointed by the Reparation Commission shall examine the conditions under which the objects or manuscripts in possession of Austria, included in the attached list presented by the Italian Government, were carried off by the House of Hapsburg and by the other Houses which have reigned in Italy. If it is found that the said objects or manuscripts were carried off in violation of the rights of the Italian provinces the Reparation Commission, on the report of the Committee referred to, shall order their restitution. Italy and Austria agree to accept the decisions of the Commission.

Belgium may also submit claims for restitution, to be examined by the same Committee of three jurists, relating to the objects and documents enumerated in Annex II hereto. Belgium and Austria undertake to accept the decisions taken by the Reparation Commission as the result of the report of the said Committee.

annex i

Tuscany

The Crown jewels (such part as remains after their dispersion); the private jewels of the Princess Electress of Medici; the medals which form part of the Medici heirlooms and other precious objects—all being domanial property according to contractual agreements and testamentary dispositions—removed to Vienna during the eighteenth century.

Furniture and silver plate belonging to the House of Medici and the jewel of Aspasios in payment of debts owed by the House of Austria to the Crown of Tuscany.

The ancient instruments of astronomy and physics belonging to the Academy of Cimento (being a person in law) removed by the House of Lorraine and sent as a present to the cousins of the Imperial House of Vienna.

[Page 857]

Modena

A “Virgin” by Andrea del Sarto and four drawings by Correggio belonging to the Pinacothek of Modena and removed in 1859 by the Archduke Francis V.

The three following MSS. belonging to the library of Modena:—

  • Biblia vulgata (Cod. Lat. 422/23),
  • Brevarium Romanum (Cod. Lat. 424) and
  • Officium Beatae Virginis (Cod. Lat. 262),

carried off by the Archduke Francis V in 1859.

The bronzes carried off under the same circumstances in 1859.

Certain objects (among others two pictures by Salvator Rosa and a portrait by Dosso Dossi) claimed by the Duke of Modena in 1868 as a condition of the execution of the Convention of the 20th June, 1868, and other objects given up in 1872 in the same circumstances.

Palermo

Objects made in Palermo in the twelfth century for the Norman kings and employed in the coronation of the Emperors, which were carried off from Palermo and are now in Vienna.

Naples

Ninety-eight MSS. carried off from the Library of S. Giovanni a Carbonara and other Libraries at Naples in 1718 under the orders of Austria and sent to Vienna.

Various documents carried off at different times from the State Archives of Milan, Mantua, Vienna, Modena and Florence.

annex ii

Objects and documents removed for safety from Belgium to Austria in 1794:—

(a.)
Arms, armour and other objects from the old Arsenal of Brussels.
(b.)
The treasure of the “Toison d’or” preserved in previous times in the “Chapelle de la Cour” in Brussels.
(c.)
Coinage, stamps, medals, and counters by Theodore van Berckel which were an essential feature in the archives of the “Chambre des Comptes” at Brussels.
(d.)
The documents relating to the map “carte chorographique” of the Austrian Low Countries drawn up by Lieut.-General Comte Jas de Ferraris.

[Page 858]

Appendix II

[Resolution by the Council of the Principal Allied and Associated Powers]

The Council of the Principal Allied and Associated Powers have considered the attached letter from M. Fromageot and have agreed that the following words “during the period of the belligerency of each as an Allied and Associated Power against Germany”, which had been omitted from the French text but retained in the English text of Article 232 of the Treaty of Peace with Germany, should be re-instated in the French text.

  • G. C.
  • W. W.
  • D. Ll. G.
  • V. O.

[Enclosure]

[The letter from M. Fromageot, dated May 14, 1919, annexed to this appendix, is the same as appendix IV to CF–19, printed on page 730.]

  1. Appendix I, p. 836.
  2. Appendix II, p. 858.
  3. In the Conditions of Peace transmitted to Germany, the English text limits the right of the Allied and Associated Powers to the recovery of damage suffered “during the period of the belligerency of each as an Allied and Associated Power against Germany.” There is no corresponding phrase in the French text.

    The phraseology of the English text appears to have been introduced by the Drafting Committee of the Peace Conference as the result of a communication to the effect that the Supreme Council had decided not to accord the right of recovery for damage suffered by new States which, at the times the damage was suffered, had not yet been recognised.

    The English text adopted does not appear to be entirely in accordance with the decision of the Supreme Council, since its effect, among other things, is to prevent recovery for damage suffered from acts of aggression leading up to a declaration of war against Germany, and to prevent recovery for damage suffered by Allied and Associated States during the period when they were at war with Austria-Hungary but not yet with Germany.

    Accordingly, the Commission charged with the preparation for submission to the Supreme Council of Reparation Clauses for the Treaty of Peace with Austria has in the above text eliminated the words “during the period of the belligerency of each as an Allied and Associated Power,” and has substituted the above sentence, which it is believed will more accurately express what is understood to be the intention of the Supreme Council. [Footnote in the original.]

  4. References to be completed when the terms of the Economic and other clauses are known. [Footnote in the original.]
  5. This paragraph has been accepted in this form by the American, British and French Delegations, but not by the Italian Delegation. The American and French Delegations in putting forward this text desire to express their feeling that an arrangement should be come to between the Allies with a view to maintaining in the Adriatic a tonnage calculated on more liberal principles than would be involved by the direct application of paragraph 1. [Footnote in the original.]
  6. The Italian Delegation asks that after the words “in Austria” shall be added the words “as delimited by this treaty.” The American and French Delegation[s] support this request; the British Delegation makes reservation. [Footnote in the original.]