5a. Final text of the A Bond provided for by the Schedule of Payments1

REPARATION COMMISSION

1921—SERIES A.

German Treasury Bond for 12,000,000,000 gold marks, issued under paragraph 1 of the law of June 26, 1921 (R.G.B. p. 761).

Germany owes to the bearer of this bond the sum of 12,000,000,000 (twelve thousand million) gold marks of the weight and fineness of gold as enacted by the law on January 1st, 1914.

This bond is issued under and by virtue of Annex II of Part VIII of the Treaty of Versailles dated 28th June 1919, as amended by the Powers represented on the Reparation Commission on 5th May 1921, and, also, the terms of the Schedule of Payments notified to Germany by the Reparation Commission on 5th May 1921.

This bond represents the twelve thousand millions of gold marks bonds of Series A provided for in Article 2 of the Schedule of Payments. It is entitled to the benefit of and subject to the provisions of the said Treaty and of the Schedule of Payments as that Schedule stands or as it may be amended by the Reparation Commission within the limits of the powers conferred upon it by the Treaty of Versailles.

This bond shall as from May 1st, 1921, bear interest payable in gold marks at the rate of 5% per annum on the capital amount owing by Germany. The interest shall be paid in half yearly instalments on May 1st and November 1st of each year, and for the first time on November 1st, 1921.

This bond shall, as from May 1st, 1921, be redeemed in gold marks at its nominal value by annual payments at the rate of 1% on the full nominal value, plus 5% on any amount already amortised. The amortisation instalments shall be paid on May 1st of each year and for the first time on May 1st 1922.

The payments in respect of interest and amortisation shall be effected on presentation of this bond at the Financial Office of the Reparation Commission at Paris, or at any other place the Reparation Commission may appoint, and in such currencies as it may designate. The amount of such payments shall be endorsed on the back of the bond.

2Subject to the provisions of Article 251 of the Treaty of Versailles, the holder of this bond shall be entitled to a first charge on the sums paid each year by the German Government under Article IV of the Schedule of Payments (subject to any modifications thereof that may from time to time be made by the Reparation Commission under Article 234 of the Treaty of Versailles) which said sums are secured on the whole of the assets and revenues of Germany [Page 869] and the German States pursuant to Article 248 of the Treaty of Versailles as costs of reparation under that Treaty or any treaties or agreements supplementary thereto, and the interest and amortisation instalments on this Bond shall be provided out of the sums so paid but not further or otherwise and so that any sums so paid for the service of this bond shall be applied:

1.

First, in payment of any Arrears of Interest;

2.

Next, in payment of current interest;

3.

Next, in payment of any arrears of amortisation instalments, and

4.

Lastly, in payment of any current amortisation instalment.

Further, as security for the sums to be paid under Article IV of the Schedule of Payments, the German Government assigns:1

(a)

The proceeds of all German maritime and land customs duties, and in particular, the proceeds of all import and export duties.

(b)

The proceeds of a levy of 25% on the value of all exports from Germany not subject to a levy of equal or greater amount imposed otherwise.

(c)

The proceeds of such direct or indirect taxes or any other funds as may be proposed by the German Government and accepted by the Committee of Guarantees constituted under the terms of Article 6 of the Schedule of Payments in addition to or in substitution for the funds specified in (a) and (b) above.

The German Government shall, in accordance with the Schedule of Payments, place the proceeds of the above funds in the hands of the Committee of Guarantees or of any agent designated by it.

The bond shall be free of all German taxes and charges of every description, present or future.

In exchange for this bond, Germany will, on demand by the bearer or by the Reparation Commission, issue free of cost other bonds, with coupons attached, of an aggregate nominal value equal to the nominal value of this bond, less any sum that may have already been amortised. The Reparation Commission shall have power, by written notice to Germany, to prescribe, in Agreement, if necessary, with the Reichsschuldenverwaltung, the form, conditions and denominations of such bonds, and in particular, the provisions in regard to the places at which, and the currency in which payment of interest and amortisation of such bonds shall be effected and all arrangements relative to their amortisation. The exchange of the bonds shall be effected at the Financial Office of the Reparation Commission at Paris or at any other place that the Reparation Commission may designate.

Germany further agrees in case of mutilation or destruction of this bond, to issue a new bond of like tenor.

Germany guarantees that this bond has been duly authorised and that all formalities and conditions precedent to the issue and validity of this bond have been complied with.

The German text of this bond is authoritative.

(l.s.)

Berlin, June 29, 1921. reichsschuldenverwaltung, Halle, Vieregge, Muller, Dickhuth, Springer, V. Drenkmann, Mucke, Moll, Bruckner.

[Page 870]

Note

Series B and C General Bonds were issued under date of October 28, 1921 in the amounts of 38 and 82 billion gold marks respectively. The terms of those bonds were of similar tenor to the Series A Bond, except for the provisions as to amount, issue, and interest which followed the stipulations in article 2, B and C, of the Schedule of Payments respectively.