Full text: The reparation problem, 1918-1924

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agreement, redemption money may be paid to the Reparation Commission, who 
will call up bonds for redemption in Spa agreement percentages. 
6. Eighty per cent of the bonds of the first series to be distributed forth- 
with to the powers entitled to reparation in the Spa agreement percentages, 
the remaining 20 per cent to be retained by the Reparation Commission as a 
reserve for adjustment of accounts between powers and for the payment of 
miscellaneous treaty charges as provided below. 
7. Belgium to discharge her existing debit in respect to her priority ad- 
justed in accordance with paragraph 4 by surrender to the Reparation Com- 
mission reserve of bonds of the first series to a face value equal to the amount 
of the debit plus 26% per cent.® Belgium to waive her claims to priority of 
payment over other powers in so far as they have not already been met. 
8. The United States (subject to the consent of that power), Great Britain, 
and France to receive out of bonds of the first series retained as a reserve by 
the Reparation Commission amounts to a face value equal to their respective 
credits arising out of the last paragraph of article 232 of the treaty (Belgium 
war debt). 
9. All other outstanding debits and credits as between powers entitled to 
reparation and the Reparation Commission to be cleared as on January 1, 
1023, by transfer of bonds of the first series at redemption price. Debits to be 
adjusted by transfer from the debtor power to the Reparation Commission 
reserve and credits by transfer from the reserve to the creditor power. 
10. As from January 1, 1923, costs of armies of occupation and clearing office 
and other miscellaneous charges up to such amount per annum as the Repara- 
tion Commission may approve, except in so far as they can be met from cash 
accruing to the Reparation Commission reserve in respect of interest on bonds 
in that reserve, to be discharged by transfer of bonds at redemption price from 
the Reparation Commission reserve to the powers entitled to the payments. 
Any bonds remaining in the reserve when its liabilities have been liquidated to 
be distributed to the various powers entitled to reparation in the Spa agree- 
ment percentages. 
11. Germany to agree (1) to stabilize the mark in accordance with the ree- 
ommendations contained in the majority report of the foreign experts consulted 
by the German Government in November last, and to restore budget equilib- 
rium with limits of time to be prescribed (say, six months for the stabilization 
and two years for the budget reform) ; (2) to accept such financial supervision 
as may be deemed by the Allied Powers to be necessary to see to the punctual 
carrying out of these reforms (see schedule “B”); (38) to submit, in the event 
of her failing to satisfy the supervising authority that condition (1) is being 
observed, or failing to discharge her obligations as now revised, to any measure 
which the Allied Powers, upon a report of such failure from the supervising 
authority, may unanimously decide to be necessary. Such measures may 
include the forcible seizure of German revenues and assets and the taking over 
of German fiscal machinery and the military occupation of German territories 
outside the treaty occupation area. 
12. All loans raised by Germany in the national market of any power which 
is a holder of any of the bonds to be applied to the redemption of bonds held 
by that power, unless and except to such extent as the government of that 
power may otherwise agree. 
In order to facilitate the provision of funds for the restoration of the 
devastated regions of France, Great Britain to agree that 50 per cent of any 
German loans raised on the British market before January 1, 1927, which 
would otherwise be applied to the redemption of bonds held by Great Britain, 
shall be applied to the redemption of bonds held by France. 
EUROPEAN INTERALLIED DRRTQ 7 
13. The deposits of gold which are held by Great Britain as security for 
loans made to France and Italy for the purpose of carrying on the war, to be 
applied forthwith toward the repayment of these loans. 
The French share of the German bonds applicable to the repayment of Bel- 
gian war debt to be transferred to Great Britain and accepted by her as satis- 
faction of an equal amount of the French debt to Great Britain. 
$The present value of the bonds on the 5 per cent table being 79 per cent. 
7 These proposals for dealing with inter-Allied debts are put forward upon the under- 
standing that the above reparation plan is aecepted and all Lroposats for the taking of 
pledges (* gages”) and application of sanctions (otherwise than as provided for in the 
above plan) are abandoned.
	        
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