The principle being recognized that Germany alone is responsible for
the War which she willed and which she imposed on the rest of the
world, Germany is bound to give complete and full reparation within
the limits specified by Art. 232. The amount of the damages for which
reparation is due will be fixed by the Commission of Reparations,
consisting of the representatives of the winning countries.
The coal fields of the Saar are to be handed over, in entire and
absolute ownership, free of all liens and obligations, to France, in
compensation for the destruction of the coal mines in the north of
France. Before the War, in 1913, the output of the Saar basin amounted
to 17,000,000 tons. The Saar is incorporated in the French douane
system and after fifteen years will be submitted to a plebiscite.
Germany may not charge heavier duties on imports from allied countries
than on those from any other country. This treatment of the most
favoured nation to be extended to all allied and associated States
does not imply the obligation of reciprocity (Art. 264). A similar
limitation is placed on exports, on which no special duty may be
levied.
Exports from Alsace and Lorraine into Germany to be exempt from duty,
without right of reciprocity (Art. 268).
Germany delivers to the Allies all the steamers of her mercantile
fleet of over I,600 tons, half of those between 1,000 and I,600 tons,
and one-fourth of her fishing vessels. Moreover, she binds herself to
build at the request of the Allies every year, and for a period of
five years, 200,000 tons of shipping, as directed by the Allies, and
the value of the new constructions will be credited to her by the
Commission of Reparations (Part viii, 3).
Besides giving up all her colonies, Germany surrenders all her rights
and claims on her possessions beyond the seas (Art. 119), and all
the contracts and conventions in favour of German subjects for the
construction and exploiting of public works, which will be considered
as part payment of the reparations due. The private property of
Germans in the colonies, as also the right of Germans to live and
work there, come under the free jurisdiction of the victorious States
occupying the colonies, and which reserve unto themselves the right to
confiscate and liquidate all property and claims belonging to Germans
(Art. 121 and 297).
The private property of German citizens residing in Alsace-Lorraine is
subject to the same treatment as that of residents in the ex-German
colonies. The French Government may confiscate without granting any
compensation the private property of Germans and of German concerns in
Alsace-Lorraine, and the sums thus derived will be credited towards
the partial settlement of eventual French claims (Art. 53 and 74).
The property of the State and of local bodies is likewise surrendered
without any compensation whatever. The allies and associates reserve
the right to seize and liquidate all property, claims and interests
belonging, at the date of the ratification of the treaty, to
German citizens or to firms controlled by them, situated in their
territories, colonies, possessions and protectorates, including the
territories surrendered in accordance with the clauses of the treaty
(Art. 217).
Germany loses everything with the exception of her territory:
colonies, possessions, rights, commercial investments, etc.
After giving the Saar coal fields in perpetual ownership to France in
reparation of the temporary damages suffered by the French coal mines,
the treaty goes on to establish the best ways and means to deprive
Germany, in the largest measure possible, of her coal and her iron.
The Saar coal fields have been handed over to France absolutely, while
the war damages of the French mines have been repaired or can be
repaired in a few years. Upper Silesia being subject to the plebiscite
with the occupation of the allied troops, Germany must have lost
several of her most important coal fields had the plebiscite gone
against her.
Germany is forced to deliver in part reparation to France 7,000,000
tons of coal a year for ten years, besides a quantity of coal equal
to the yearly _ante-bellum_ output of the coal mines of the North of
France and of the Pas-de-Calais, which were entirely destroyed during
the War; the said quantity not to exceed 20,000,000 tons in the first
five years and 8,000,000 tons during the five succeeding years (Part
viii, 5). Moreover, Germany must give 8,000,000 tons to Belgium for a
period of ten years, and to Italy a quantity of coal which, commencing
at 4,500,000 tons for the year 1919-1920, reaches the figure of
8,500,000 tons in the five years after 1923-1924. To Luxemburg Germany
must provide coal in the same average quantity as in pre-war times.
Altogether Germany is compelled to hand over to the winners as part
reparation about 25,000,000 tons of coal a year.
For three years Polish exports to Germany, and for five years exports
from Luxemburg into Germany, will be free of all duty, without right
of reciprocity (Art. 268).
The Allies have the right to adopt, on the territories left of the
Rhine and occupied by their troops, a special customs regime both as
regards imports and exports (Art. 270).
After having surrendered, as per Par. 7 of the armistice terms,
5,000 locomotives and 150,000 trucks and carriages with all their
accessories and fittings (Art. 250), Germany must hand over the
railway systems of the territories she has lost, with all the rolling
stock in a good state of preservation, and this measure applies even
to Prussian Poland occupied by Germany during the War (Art. 371).
The German transport system is placed under control, and the
administration of the Elbe, the Rhine, the Oder, the Danube, owing to
the fact that they pass through more than one state and give access
to the sea, is entrusted to inter-allied commissions. In all these
commissions Germany is represented by a small minority. France
and Great Britain, who are not directly interested, have numerous
representatives on all the important river commissions, while on the
Rhine commission Germany has only four votes out of nineteen (Art. 382
to 337). A privilege of first degree is established on all production
and resources of the German States to ensure the payment of
reparations and other charges specified by the treaty (Art. 248).
The total cost of the allied and associated armies will be borne by
Germany, including the upkeep of men and beasts, pay and lodging,
heating, clothing, etc., and even veterinary services, motor lorries
and automobiles. All these expenses must be reimbursed in gold marks
(Art. 249).
The privilege, as per Art. 248 of the treaty, is to be applied in the
following order:
(a) Reimbursement of expenses for the armies of occupation during
the armistice and after the peace treaty.
(b) Payment of the reparations as established by the treaty or
treaties or supplementary conventions.
(c) Other expenses deriving from the armistice terms, from the peace
treaty and from other supplementary terms and conventions (Art. 251).
Restitution, on the basis of an estimate presented sixty days after
the application of the treaty by the Commission of Reparations, of the
live stock stolen or destroyed by the Germans and necessary for the
reconstruction of the invaded countries, with the right to exact from
Germany, as part reparations, the delivery of machinery, heating
apparatus, furniture, etc.
Reimbursement to Belgium of all the sums loaned to her by the allied
and associated Powers during the War.
Compensation for the losses and damages sustained by the civilian
population of the allied and associated Powers during the period in
which they were at war with Germany (Art. 232 and Part viii, I).
Payment, during the first two years, of twenty milliard marks in
gold or by the delivery of goods, shipping, etc., on account of
compensation (Art. 235).
The reparations owed by Germany concern chiefly:
1st. Damages and loss of life and property sustained by the civilian
population.
2nd. Damages sustained by civilian victims of cruelty, violence or
ill-treatment.
3rd. Damages caused on occupied or invaded territories.
4th. Damages through cruelty to and ill-treatment of prisoners of war.
5th. Pensions and compensations of all kinds paid by the allied and
associated Powers to the military victims of the War and to their
families.
6th. Subsidies paid by the allied and associated Powers to the
families and other dependents of men having served in the army, etc.,
etc. (Part viii, I). These expenses, which have been calculated
at varying figures, commencing from 350 billions, have undergone
considerable fluctuations.