APPENDIX OF DOCUMENTS

207

purpose of making them marketable, and shall be free of allGerman taxes and charges of every description present or future.

Subject to the provisions of Articles 248 and 251 of the Treatyof Versailles these bonds shall be secured on the whole of theassets and revenues of the German Empire and the GermanStates , and in particular on the specific assets and revenuesspecified in Article 7 of the agreement. The service of the bondsof Series (A), (B), and (C) shall be a first, second, and third chargerespectively on the said assets and revenues and shall be metby the payments to be made by Germany under this Schedule.

4. Germany shall pay in each year until the redemption ofthe bonds provided for in Article 2 by means of the sinking fundsattached thereto—

(1) A sum of two milliard gold marks (£100,000,000).

(2) (a) A sum equivalent to 25 per cent of the value of her

exports in each period of 12 months starting fromMay 1, 1921, as determined by the Commission ; or(b) Alternatively an equivalent amount as fixed inaccordance with any other index proposed by Germany and accepted by the Commission.

(3) A further sum equivalent to 1 per cent of the value of

her exports as above defined, or alternatively an equiva-lent amount fixed as provided in (b) above.

Provided always that when Germany shall have dischargedall her obligations under this Schedule, other than her liabilityin respect of outstanding bonds, the amount to be paid in eachyear under this paragraph shall be reduced to the amount re-quired in that year to meet the interest and sinking fund on thebonds then outstanding.

Subject to the provisions of Article 5, the payments to bemade in respect of Paragraph (1) above shall be made quarterlybefore the end of each quarter, i.e. before January 15, April 15,July 15, and October 15 each year, and the payments in respectof Paragraphs (2) and (3) above shall be made quarterly, November15, February 15, May 15, August 15, and calculated on the basis