APPENDIX OF DOCUMENTS

201

tion quota in accordance with her economic capacity. In presentcircumstances she considers the rate of 4 per cent the highestpossible.

4. Germany is prepared to let the Powers concerned have thebenefit of improvements in her economic and financial situation.For this purpose the amortisation quota should be made variable.In case an improvement should take place, the quota wouldrise, whilst it would correspondingly fall if developments shouldbe in the other direction. To regulate such variations an indexscheme would have to be prepared.

5. To accelerate the redemption of the balance, Germany isready to assist with all her resources in the reconstruction of thedevastated territories. She considers reconstruction the mostpressing part of reparation, because it is the most effective wayto combat the hatred and misery caused by the war. She isprepared to undertake, herself, the rebuilding of townships,villages, and hamlets, or to assist in the reconstruction withlabour, material, and her other resources, in any way the Allies may desire. The cost of such labour and material she wouldpay herself. (Full details about this matter have been com-municated to the Reparation Commission.)

6. Apart from any reconstruction work Germany is preparedto supply for the same purpose, to States concerned, any othermaterials, and to render them any other services as far as possibleon a purely commercial basis.

7. To prove the sincerity of her intention to make reparationat once, and in an unmistakable way, Germany is prepared toplace immediately at the disposal of the Reparation Commissionthe amount of one milliard gold marks in the following manner :First, 150,000,000 gold marks in gold, silver, and foreign bills ;secondly, 850,000,000 gold marks in Treasury bills, to be redeemedwithin a period not exceeding three months by foreign bills andother foreign values.

8. Germany is further prepared, if the United States andthe Allies should so desire, to assume part of the indebtednessof the Allies to the United States as far as her economic capacitywill allow her.