ARTICLE 7 No sum shall be credited to Germany for the light cruisers, floating docks or the material handed over, or to be handed over, under the protocol of January 10, 1920, as compensation for the warships which were sunk. As regards sunk German ships which have been, or may be, salved, a Power to which they have been, or may be, allotted, will be chargeable with the cost of the salvage incurred by the Power which has borne them. ARTICLE 8 No sum shall be credited to Germany in respect of the proceeds of the sale of warships and naval war material surrendered under the Naval Clauses of the Treaty of Versailles, including the value of the arisings from naval war material which may have been, or may be, sold by the Reparation Commission at the request of the Supreme Council. These sums shall be divided between the Allied Powers in the same proportions as were approved by the Supreme Council for the material surrendered under the protocol of January 10, 1920. ARTICLE 9 Italy shall, in priority to all other Allied Powers, be entitled to retain and set off against the amounts due to her by Austria, Bulgaria and Hungary in respect of the armies of occupation and reparation a sum equal to the amount for which she may be adjudged by the Reparation Commission to be liable to account to the Reparation Commission in respect of the value of property transferred and services rendered up to May 1, 1921, under Article 189 and Annexes III, IV, and V to Part VIII (Reparation) of the Treaty of St. Germain, and of the corresponding provisions of the Treaty of the Trianon and also of the sum provided for in the agreement relating to Italy with respect to the reparation contribution signed at St. Germain on September 10, 1919, as modified at Paris on December 8, 1919. Italy will in consequence only be obliged to issue the bonds referred to in Article 4 of the said agreement if and so far as her debt is not covered by the set off provided for above. ARTICLE 10 The provisions of the present agreement do not apply to Poland. The right of Poland to reparation for damage suffered by her, as an integral part of the former Empire of Russia, is reserved in accordance with Article 116 of the Treaty of Versailles and Article 87 of the Treaty of St. Germain. The sums to be credited to Germany and Austria under Articles 92 and 243 of the Treaty of Versailles, and Article 189 of the Treaty of St. Germain, shall be entered provisionally in suspense accounts carrying interest at 5 per cent. per annum. ARTICLE 11 The stipulations of the present agreement shall not affect the operation of the provisions of Article 232, paragraph 3, of the Treaty of Versailles. The amount of the sums borrowed by Belgium up till November 11, 1919, including interest at 5 per cent. per annum up till the date of payment, shall rank immediately after the payment of 2 milliards of gold francs referred to in Article 5 and be distributed as equally as possible over the sums paid each year by Germany before May 1, 1926. Sums paid in advance by Germany shall not be applied for the purpose of discounting this part of her yearly payments. ARTICLE 12 Nothing in this agreement shall prejudice the right of the Allied Powers to repayment of the relief credits afforded by them to the ex-enemy Powers. ARTICLE 13 The question of the reduction of the cost of the armies of occupation to a uniform basis for all the Allied and Associated Powers is reserved in order that it may be discussed with the United States of America. The German Government undertake to place at the disposal of the Allies, from the 1st August, 1920, for the ensuing six months, 2,000,000 tons of coal per month, this figure having been approved by the Reparation Commission. 2. The Allied Governments will credit the reparation accounts with the value of this coal, as far as it is delivered by rail or inland navigation, and it will be valued at the German internal price in accordance with paragraph 6 (A), Annex V, Part VIII of the Treaty of Versailles. In addition, in consideration of the admission of the right of the Allies to have coal of specified kind and quality delivered to them, a premium of 5 gold marks, payable in cash by the party taking delivery shall be applied to acquisition of foodstuffs for the German miners. 1 British Parliamentary Publications, Miscellaneous, 1921, No. 15. (Cmd. 1325), p. 175. 3. During the period of the coal deliveries provided for above, the stipulations of paragraphs 2, 3 and 4 of the draft control protocol of the 11th July, 1920, shall be put in force at once in the modified form of the annex hereto (see below). 4. An agreement shall be made forthwith between the Allies for distribution of the Upper Silesian coal output by a commission, on which Germany will be represented. This agreement shall be submitted for the approval of the Reparation Commission. 5. A commission, on which the Germans shall be represented, shall meet forthwith at Essen. Its purpose shall be to seek means by which the conditions of life among the miners with regard to food and clothing can be improved, with a view to the better working of the mines. 6. The Allied Governments declare their readiness to make advances to Germany equal in amount to the difference between the price paid under paragraph 2 above and the export price of German coal, f. o. b. in German ports, or the English export price f. o. b. in English ports, whichever may be the lowest, as laid down in paragraph VI (B) of Annex V, Part VIII of the Treaty of Versailles. These advances shall be made in accordance with Articles 235 and 251 of the Treaty of Versailles. They shall enjoy an absolute priority over all other Allied claims on Germany. The advances shall be made at the end of each month, in accordance with the number of tons delivered and the average f. o. b. price of coal during the period. Advances on account shall be made by the Allies at the end of the first month without waiting for exact figures. 7. If, by the 15th of November, 1920, it is ascertained that the total deliveries for August, September and October, 1920, have not reached 6,000,000 tons, the Allies will proceed to the occupation of a further portion of German territory, either the region of the Ruhr or some other. ROLIN-JAEQUEMYNS, Secretary-General of the Conference. Spa, July 16, 1920. (5318) ANNEX LÉON DELACROIX. D. LLOYD GEORGE. A. MILLERAND. C. SFORZA. S. CHINDA. C. FEHRENBACH SIMONS, Under reserve of Article 7. 1. A permanent delegation of the Reparation Commission will be set up at Berlin, whose mission will be to satisfy itself by the following means that the deliveries of coal to the Allies provided for under the agreement of the 15th July, 1920, shall be carried out: The programmes for the general distribution of output, with details of origin and kind, on the one hand, and the orders given to ensure deliveries to the Allied Powers on the other hand, shall be drawn up by the responsible German authorities and submitted by them for the approval of the said delegation a reasonable time before their dispatch to the executive bodies responsible for their execution. 2. No modification in the said programme which may involve a reduction in the amount of the deliveries to the Allies shall be put into effect without prior approval of the delegation of the Reparation Commission in Berlin. 3. The Reparation Commission, to which the German Government must periodically report the execution by the competent bodies of the orders for deliveries to the Allies, will notify to the interested Powers any infraction of the principle adopted herein. AGREEMENT BETWEEN THE ALLIED POWERS FOR THE SETTLEMENT OF CERTAIN QUESTIONS RELATING TO THE EXECUTION OF THE TREATY OF For the purpose of satisfying the obligations imposed upon her by Articles 231 and 232 of the Treaty of Versailles, Germany shall, irrespective of the restitution she is to make under Article 238 and of any other obligation under the treaty, pay: 1. Fixed annuities, payable half-yearly in equal parts, as follows: (a) Two annuities of 2,000,000,000 gold marks from May 1, 1921, to May 1, 1923; (b) three annuities of 3,000,000,000 gold marks from May 1, 1923, to May 1, 1926; (c) three annuities of 4,000,000,000 gold marks from May 1, 1926, to May 1, 1929; (d) three annuities of 5,000,000,000 gold marks from May 1, 1929, to May 1, 1932; (e) thirty-one annuities of 6,000,000,000 gold marks from May 1, 1932, to May 1, 1963. 2. Forty-two annuities running from May 1, 1921, equal in amount to 12 per cent. ad valorem of German exports, payable in gold two months after the close of each half year. In order to insure complete fulfillment of paragraph 2 above, Germany will give to the Reparation Commission every facility for verifying the amount of the German exports and for the establishment of the supervision necessary for this purpose. 1 French text printed in Le Temps, February 1, 1921, p. 1. English translation taken substantially from the New York Times, January 31, 1921, p. 1. ARTICLE 2 The German Government will transmit forthwith to the Reparation Commission notes to bearer payable at the dates specified in Article 1, paragraph 1, of the present arrangement. The amount of these notes shall be equivalent to each of the half-yearly sums payable under said paragraph. Instructions shall be given to the Reparation Commission with a view to facilitating realization by the Powers which so demand the share to be attributed to them in accordance with the agreements in force between them. ARTICLE 3 Germany shall be at liberty at any time to make payments in advance on account of the fixed portion of the sum owing. Advance payments shall be applied in the reduction of the fixed annuities provided for in the first paragraph of Article 1. For this purpose, annuities shall be discounted at the rate of 8 per cent. until May 1, 1923; 6 per cent. from May 1, 1923, to May 1, 1925; 5 per cent. from May 1, 1925. ARTICLE 4 Germany shall not directly embark on any credit operation outside her own territory without the approval of the Reparation Commission. This provision applies to the Government of the German Empire, to the governments of German States, to the German provincial and municipal authorities, and to any companies or undertakings under control of said governments or authorities. ARTICLE 5 In pursuance of Article 248 of the Treaty of Versailles, all the assets and revenues of the Empire and of the German States shall be applicable to insure complete execution by Germany of the provisions of the present arrangement. The proceeds of the German maritime and land customs, including in particular the proceeds of all import and export duties and of any tax subsidiary thereto, shall constitute special security for the execution of the present agreement. No modification which might diminish the proceeds of the customs shall be made in the German customs laws or regulations without approval of the Reparation Commission. All German customs receipts shall be encashed on behalf of the German Government by a receiver general of German customs, appointed by the German Government with the approval of the Reparation Commission. In case Germany shall make default in any payment provided for in the present arrangement (1) All or part of the proceeds of the German customs in the hands of the receiver general of German customs may be attached by the Reparation |