REPARATION
'The Allied and Associated Governments affirm, and Germany accepts
on behalf of herself and her Allies, the responsibility 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 Germany and her
Allies.'
The Allied and Associated Governments recognise that the resources
of Germany are insufficient to make complete reparation possible,
but through the instrumentality of an Inter-Allied commission, to
be called the Reparation Commission, her responsibility for the
loss and damage caused by the war is to be assessed and gradually
liquidated as far as possible.
As a first instalment Germany must pay to the Allies, in such form
and by such instalments as the Reparation Commission may determine,
the equivalent of 20,000,000,000 gold marks by the 1st May 1921,
and as a second instalment the equivalent of 40,000,000,000 marks
between 1921 and 1926. The question of further instalments is
reserved.
The Reparation Commission shall have power to examine periodically
Germany's system of taxation with a view to estimating her capacity
to pay, and the sums for reparation shall become a charge upon all
her revenues prior to that for the service or discharge of any
domestic loan.
A special provision is made for the repayment by Germany of all sums
which Belgium has borrowed from the Allies during the War.
_Shipping._--The German Government recognises the right of the
Allies to the replacement, ton for ton and class for class, of all
merchant ships and fishing boats lost or damaged owing to the war,
and agrees to cede to the Allies all German merchant ships of 1600
tons gross and upwards, one-half of her ships between 1600 and 1000
tons gross, and one-quarter of her steam trawlers and other fishing
boats. These ships are to be delivered within two months to the
Reparation Commission together with documents of title evidencing
the transfer of the ships from encumbrance.
'As an additional part of reparation, the German Government further
agrees to build merchant ships for the account of the Allies to the
amount of not exceeding 200,000 tons gross annually during the next
five years.'
Specified submarine cables are renounced by Germany in favour of the
Allies, their value to be estimated and written off the account for
reparation.
Among special provisions is an undertaking by Germany to furnish the
University of Louvain with manuscripts, printed books, and objects
of collection 'corresponding in number and value to those destroyed
in the burning by Germany of the Library of Louvain.'