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Germany must deliver 12 milliards of goldmarks (£600,000,000 gold) in A Bonds, 38 milliards(£1,900,000,000 gold) in B Bonds, and the balance ofher liabilities, provisionally estimated at 82 milliards(£4,100,000,000 gold), in C Bonds. All the Bonds carry 5 per cent interest and 1 per cent cumulativesinking fund. The services of the series A, B, and Cconstitute respectively a first, second, and third chargeon the available funds. The A Bonds are issuedto the Reparation Commission as from May 1, 1921,and the B Bonds as from November 1, 1921, but theC Bonds shall not be issued (and shall not carryinterest in the meantime) except as and when theReparation Commission is of the opinion that thepayments which Germany is making under the newsettlement are adequate to provide their service.
It may be noticed that the service of the A Bondswill cost £36,000,000 (gold) per annum, a sum wellwithin Germany 's capacity, and the service of theB Bonds will cost £114,000,000 (gold) per annum,making £150,000,000 altogether, a sum in excess ofmy own expectations of what is practicable, but notin excess of the figure at which some independentexperts, whose opinion deserves respect, have esti-mated Germany 's probable capacity to pay. Itmay also be noticed that the aggregate face valueof the A and B Bonds (£2,500,000,000 gold) corre-sponds to the figure at which the German Governmenthave agreed (in their counter-proposal transmitted