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A REVISION OF THE TREATY

The excess deliveries are to be liquidated with interest at 5per cent per annum in 10 equal annual instalments as from 1stMay 1926, subject to certain conditions :—

(1) France shall in no case be debited in one year for Agree-

ment deliveries with an amount which, when added to thevalue of her Annex deliveries in that year, would make herresponsible for more than her share (52 per cent) of thetotal reparation payments made by Germany in that year.

(2) Agreement deliveries continue after 1st May 1926, with

the same provisions for deferred payment. If in anyyear between May 1926 and May 1936 the amount (notexceeding 35 or 45 per cent) of the value of that year'sAgreement deliveries to be credited to Germany , to-gether with the annual instalment to repay the debtincurred in respect of the period ending 1st May 1926,exceeds one milliard, the excess is to be carried forwardfrom year to year until a year is reached in which nosuch excess is created by the payment. But in no caseshall the amount credited, even if it is less than onemilliard gold marks, exceed the limit laid down by thepreceding condition.

(3) Any balance with which Germany has not been credited

on 1st May 1936 is to be credited to her with compoundinterest at 5 per cent in four half-yearly payments on30th June and 31st December 1936 and 30th June and31st December 1937. But, again, these half-yearlypayments shall not be made if the effect of making themwould be to exceed the limit laid down in Condition 1above.

(4) Agreement deliveries continue indefinitely after 1st May

1936, with power, however, to Germany to arrest themwhenever the execution of them would result in France owing more than 52 per cent of Germany 's annualreparation payment in respect of Annex deliveries,deferred payments already matured, and the 35 or 45per cent of current deliveries.