APPENDIX OF DOCUMENTS

215

From the above it is to be noted that, while there is a limitationfor the first five years of the amount of Agreement deliverieswhich can be demanded, there is—

(1) No point at which the right of France to demand these

special deliveries automatically terminates.

(2) No final limitation upon the value of the deliveries which

can be demanded by France during the lifetime of theAgreement.

(3) No definitely prescribed period within which France 's debt

to Germany and to the other partners in reparation shallbe liquidated.

It remains necessary to draw attention to one subsidiarypoint of a financial character under the Schedule of Payments.Part of Germany 's annual reparation liability consists of thepayment of 26 per cent of the value of German exports in eachperiod of twelve months, and part of the security for the pay-ment consists of the proceeds of a levy of 25 per cent on thevalue of all German exports. The French Government hasundertaken to support a request, to be submitted by the German Government to the Reparation Commission, for the inclusionin the exports which form the basis of these calculations of thatpart only of the value of the deliveries made under the Agreementwhich is credited to Germany and debited to France during anyparticular year.

If it can be assumed that any part of the special deliveries tobe made under the Agreement would, in the absence of the Agree-ment, have been diverted to Germany 's ordinary external trade,then the concession desired will have the effect of diminishingthe annual payments made by Germany for the benefit of theAllies as a whole.

2. Decision of the Reparation Commission on October 20, 1921, afterconsidering the Franco-German Agreement of October 6, 1921.

The French Government, having submitted to the EeparationCommission in accordance with Paragraph 3 of the Memorandum