Home › Treaty of Peace with Germany › Treaty of Peace with Germany: Reparation

Treaty of Peace with Germany: Reparation

Work of Reparation Commission.

In periodically estimating Germany's capacity to pay, the Reparation Commission shall examine the German system of taxation, first to the end that the sums for reparation which Germany is required to pay shall become a charge upon all her revenues prior to that for the service or discharge of any domestic loan; and secondly, so as to satisfy itself that in general the German scheme of taxation is fully as heavy proportionately as that of any of the powers represented on the commission.

Refusals in case of default The measures which the allied and associated powers shall have the right to take, in case of voluntary default by Germany, and which Germany agrees not to regard as acts of war, may include economic and financial prohibitions and reprisals and in general such other measures as the respective Governments may determine to be necessary in the circumstances.

The commission shall consist of one representative each of the United States, Great Britain, France, Italy, and Belgium, a representative of Serbia or Japan taking the place of the Belgian representative when the interests of either country are particularly affected, with all other allied powers entitled, when their claims are under consideration, to the right Germany's capacity to pay. of representation without voting power. It shall permit Germany to give evidence regarding her capacity to pay, and shall assure her a just opportunity to be heard. It shall make its permanent headquarters at Paris, establish its own procedure and personnel; have general control of the whole reparation problem; and become the exclusive agency of the Allies for receiving, holding, selling, and distributing reparation payments. Majority vote shall prevail, except that unanimity is required on questions involving the sovereignty of any of the Allies, the cancellation of all or part of Germany's obligations, the time and manner of selling, distributing, and negotiating bonds issued by Germany, any postponement between 1921 and 1926 of annual payments beyond 1930 and any postponement after 1926 for a period of more than three years of the application of a different method of measuring damage than in a similar former case, and the interpretation of provisions. Withdrawal from representation is permitted on twelve months' notice. Guarantees to cover claims.