212 A REVISION OF THE TREATY

accountable not only to Germany , but to the Reparation Com-mission, for the value of these deliveries. Thus, on the one hand,the Treaty stipulates as between the Allies and Germany thatthe value of services under the Annexes shall be credited towardsthe liquidation of Germany 's general obligation, and the Scheduleof Payments assigns the value of Annex deliveries to the serviceof the bonds handed over by Germany as security for her debt.On the other hand, the Treaty provides that for the purpose ofequitable distribution as between the Allies , the value of Annexdeliveries shall be reckoned in the same manner as cash paymentseffected in the year, and the Schedule of Payments stipulatesthat the value of the deliveries received by each Power shall,within one month of the date of delivery, be paid over to theReparation Commission, either in cash or in current coupons.

Further, the Treaty imposes upon the Reparation Commissionnot only the duty of fixing prices, but also of determining thecapacity of Germany to deliver goods demanded by any of theAllies , and, by implication, of deciding between the competingdemands which are made upon that capacity by the Allies themselves.

The Wiesbaden Agreement provides for the delivery by aGerman company 1 to French " sinistres " of " all plant andmaterials compatible with the productive capacity of Germany, her supply of raw materials and her domestic requirements,"that is to say, of the articles and materials which can be demandedunder Annex IV. and Paragraph 19 of Annex II., which are, by theterms of the Agreement, in so far as France is concerned, virtuallysuspended, the obligations of Germany to deliver to France underthe other Annexes remaining unaffected.

Any question as to the capacity of Germany to satisfy the

1 The arrangement under which a German private company is to becreated to deal directly with the orders without the intervention of theFrench and German Governments is intended to obviate the delays whichexperience ha3 shown to be inseparable from the employment of the presentmachineiy. It does not appear to have any important bearing on the generalfinancial situation, since the deliveries will clearly have to be financed bythe German Government and will ultimately be paid for by means of areparation credit in account with the German Government.