APPENDIX OF DOCUMENTS

213

requirement of France , and all questions of price, are to besettled by a Commission of three members, one French and oneGerman, and a third selected by common agreement or nominatedby the Swiss President.

The aggregate value of the deliveries to be made under theAgreement, and of the deliveries to be made under Annexes III.,V. and VI. (hereafter, for the sake of brevity, called the " Annexdeliveries ") in the period expiring on the 1st May 1926, is fixedat a maximum of 7 milliard gold marks.

In regard to the Annex deliveries the Agreement in no waymodifies the Treaty provisions under which Germany is creditedand France debited forthwith with the value, but special pro-visions, which are financially the essential part of the Agreement,are made for bringing to reparation account the value of theAgreement deliveries. These special provisions are designed tosecure that Germany shall only be credited on reparation accountat the time of delivery with a certain proportion of them, andthat deliveries not thus accounted for, which may be called" excess deliveries," shall be liquidated over a period of yearsbeginning at the earliest on 1st May 1926. The provisionsthemselves are somewhat intricate, comprising, as they do, aseries of interacting limitations, and they require some elucidation.

(1) In no case is credit to be given to Germany in any one year

for Annex and Agreement deliveries together to anamount exceeding one milliard gold marks.

(2) In no case is credit to be given to Germany in any one

year for more than 45 per cent of the value of theAgreement deliveries or for more than 35 per cent ifthe value of the Agreement deliveries exceeds onemilliard gold marks.

The effect of the above is to prescribe that 55 per cent (or, ifthe Agreement operates successfully, 65 per cent) of the valueof the Agreement deliveries as a minimum will be the object ofdeferred payment by instalments. If the Agreement deliveriesreached really high figures, the operation of the milliard limitationwould make the carry forward much more than 65 per cent.