and prior to November 3rd, 1918, the same to be free of any claim" of the French Government for reparation. And that the Reparation Commission will take such steps as will secure that the United States retain as its own the complete title to and the use of all ships, in so far as the interest of the French Government in these particular ships is concerned. As the tonnage of the ships and boats so to be retained by the United States will exceed the total amount of tonnage which would be allocated to them, were the total enemy tonnage captured. seized, detained or still in existence shared in proportion to the losses of ships and boats during the war, a reasonable value on such excess of ships and boats over the amount which would result from such a division will be determined. The amount of the value so fixed will be paid over by the United States to the Reparation Commission for the credit of Germany towards the sums due from her for reparation in respect to war losses of merchant ships, subject, however, to the power of the Congress of the United States to make disposal of such funds under the resolution approved May 13 [12], 1917.1 8 May, 1919 Note CLEMENCEAU Italy became a party to the Wilson - Lloyd George agreement with regard to the ultimate disposal of Austro-Hungarian merchant ships by agreements concluded with the United Kingdom on Sep tember 25 and October 13, 15, 1919 and June 1, 1921 (6 League of Nations Treaty Series, p. 323). Japan became a party to the Wilson - Lloyd George agreement with regard to the ultimate dis posal of both German and Austro-Hungarian merchant ships by an agreement with the United Kingdom on November 10, 12, 1919 (ibid., p. 333). 140 Stat. 75. 3. Agreement regarding Priority in Reparation Payments to Belgium, Approved by the Council of Principal Allied and Associated Powers June 24, 1919' WHEREAS, Article 237 of the Conditions of Peace with Germany provides, among other things, that the payments to be made by Germany, by way of reparation, will be divided by the Allied and Associated Governments in proportions which have been determined upon by them in advance and on a basis of general equity and of the rights of each; and WHEREAS, it is deemed equitable that after the priority accorded by Article 235, in respect of the expenses of the Armies of Occupation and payments for the supply of Germany, a certain priority should be granted to Belgium in respect of the payments made by Germany by way of reparation; Now, THEREFORE, the undersigned, in the name of their respective Governments, agree that out of the first cash received from Germany, in respect of reparation, Belgium shall receive, on account of the reparation payments to which she is entitled the equivalent of 2,500,000,000 gold francs. For the purposes of the foregoing there shall be reckoned as cash: (1) Currency received by the Reparation Commission; (2) The proceeds of the sale by the said Commission of negotiable instruments or securities received from Germany; (3) The value of deliveries and reparation in kind made by Germany pursuant to the provisions of the Conditions of Peace and debited to the Allied and Associated Governments. This last item shall not be taken into account before May 1, 1921. It is understood that the restitutions contemplated by Article 238 of the Treaty will not be taken into consideration. Irrespective of this priority of 2,500,000,000 francs, Belgium will participate in the proportion which will be accorded to her in the division of the first payments and the subsequent divisions contemplated by Article 237 above referred to. Beginning with May 1, 1921, the above mentioned sum of 2,500,000,000 francs will be amortized at the rate of one-thirtieth per year out of Belgium's share in each of the subsequent payments made by Germany. If, however, Germany should complete payment of its debt in less than thirty years, such amortization will be accel'File 180.03401/89. erated so that it will conclude coincidentally with the final settlement of Germany. The Annex attached hereto will serve as an illustration of the method of applying the foregoing provisions. G. CLEMENCEAU D. LLOYD GEORGE ANNEX Let us assume that Germany pays up to May 1, 1921, in addition to sums which will be applied to its supply of food and raw materials and to the expenses of the Armies of Occupation, the total sum of 13 milliards of francs applicable to reparations. Let us suppose, that this sum has been paid as follows: In cash or securities converted into cash, 11⁄2 milliards. Let us further assume that Belgium's share is fixed at 7%, for example. On the foregoing hypothesis Belgium will be entitled: (1) To receive the cash, that is, 12 milliards; (2) On May 1, 1921, each of the interested Powers, having been debited with the total amount of deliveries in kind received by it, payment will be made to Belgium out of the common fund of 1 milliard of the 112 milliards mentioned above. Out of the balance of 101⁄2 milliards, Belgium will be entitled to 7%, that is to say, 735 millions. If Belgium has received in kind 1,200,000,000, she should pay into the common funds the difference between this sum and the share of the 735 millions to which she is entitled, that is to say, 465 millions. After 1921, for instance in 1922, if Germany has paid in that year' 10 milliards and Belgium has received in kind 300 millions, its account will stand as follows: Received in kind, 300 millions, . 300,000,000 Amortization payment on the priority of 22 milliards, 83,330.000 Amount due to Belgium 700 millions, from which are to be deducted the above 383,330,000; balance due from the common fund to Belgium, 316,670,000. G.C. W.W. D.LI.G. S.S. 3a. Notification to the Government of Belgium, Approved June 24, 1919 M. Clemenceau, President Wilson, and Mr. Lloyd George to the Belgian Minister for Foreign Affairs (M. Hymans) PARIS, June 16, 1919. SIR: The Reparation Clauses of the draft Treaty of Peace with Germany obligate Germany to make reimbursement of all sums which Belgium has borrowed from the Allied and Associated Governments up to November 11, 1918, on account of the violation by Germany of the Treaty of 1839. As evidence of such an obligation Germany is to make a special issue of bonds to be delivered to the Reparation Commission. Each of the undersigned will recommend to the appropriate governmental agency of his Government that, upon the delivery to the Reparation Commission of such bonds, his Government accept an amount thereof corresponding to the sums which Belgium has borrowed from his Government since the war and up to November 11, 1918, together with interest at 5% unless already included in such sums, in satisfaction of Belgium's obligation on account of such loans, which obligation of Belgium's shall thereupon be cancelled. We are [etc.] G. CLEMENCEAU 4. Agreement between Great Britain, Belgium, France, Italy, Japan and Portugal for the Settlement of certain Questions as to the Application of the Treaties of Peace and Complementary Agreements with Germany, Austria, Hungary, and Bulgaria, Signed at Spa, July 16, 19201 The Governments of Belgium, France, Great Britain, Italy,| Japan and Portugal respectively represented by the undersigned, 1 United Kingdom, Reparation, Agreement between the Allies for the Settlement of Certain Questions . . . 1922, Cmd. 1615; 114 British and Foreign State Papers, p. 550. 695852 O-47. -55 ... recognising that it is in the general interest to effect an immediate settlement between themselves of certain problems arising from the application of the Treaties of Peace and the complementary Agreements, have agreed upon the following: PART I. ART. I.-In pursuance of Article 237 of the Treaty of Versailles, sums received from Germany under the head of reparation shall be divided in the following proportions: 6.5 per cent shall be reserved for Greece, Roumania, the SerbCroat-Slovene State,1 and for the other Powers entitled to reparation which are not signatories of this Agreement. II. The aggregate amount received under the head of reparation from Austria, Bulgaria and Hungary, together with the sums received from Italy, the Czechoslovak State, Roumania and the Serb-Croat-Slovene State under the Agreements made on the 10th September and the 8th December, 1919, shall be divided as follows: (a.) One-half shall be divided between the Allied Governments mentioned in Article I in the proportion fixed by the said Article. (b.) Of the other half, Italy shall receive 40 per cent., and 60 per cent. is reserved for Greece, Roumania, the Serb-Croat-Slovene State, and for other Powers entitled to reparation which are not signatories of this Agreement. PART II. III. The Allied Governments recognise that it is in the general interest to determine the total amount due by Germany under Articles 231 and 232 of the Treaty of Versailles, and to make provision for the method of payment on the basis of an agreement embodying: (1) The fixing of annuities to be paid by Germany. 1 The percentage of the Serb-Croat-Slovene State was determined as 5 perce by an agreement with France and Great Britain concluded at Paris on June 20, 1921 and confirmed by the Spa signatories. That government did not, however, adhere to the Spa agreement until February 25, 1925 (file 462.00 R 29/3822 |