Subject to such exceptions as the Reparation Commission may approve, a first charge upon all the
assets and revenues of the German Empire and its constituent States shall be the cost of reparation
and all other costs arising under the present Treaty or any treaties or agreements supplementary
thereto or under arrangements concluded between Germany and the Allied and Associated Powers
during the Armistice or its extensions.
Up to May 1, 1921, the German Government shall not export or dispose of, and shall forbid the
export or disposal of, gold without the previous approval of the Allied and Associated Powers
acting through the Reparation Commission.
There shall be paid by the German Government the total cost of all armies of the Allied and
Associated Governments in occupied German territory from the date of the signature of the
Armistice of November 11, 1918, including the keep of men and beasts, lodging and billeting, pay
and allowances, salaries and wages, bedding, heating, lighting, clothing, equipment, harness and
saddlery, armament and rolling-stock, air services, treatment of sick and wounded, veterinary and
remount services, transport service of all sorts (such as by rail, sea or river, motor lorries),
communications and correspondence, and in general the cost of all administrative or technical
services the working of which is necessary for the training of troops and for keeping their numbers
up to strength and preserving their military efficiency.
The cost of such liabilities under the above heads so far as they relate to purchases or requisitions
by the Allied and Associated Governments in the occupied territories shall be paid by the German
Government to the Allied and Associated Governments in marks at the current or agreed rate of
exchange. All other of the above costs shall be paid in gold marks.
Germany confirms the surrender of all material handed over to the Allied and Associated Powers in
accordance with the Armistice of November 11, 1918, and subsequent Armistice Agreements, and
recognises the title of the Allied and Associated Powers to such material.
There shall be credited to the German Government, against the sums due from it to the Allied and
Associated Powers for reparation, the value, as assessed by the Reparation Commission, referred to
in Article 233 of Part VIII (Reparation) of the present Treaty, of the material handed over in
accordance with Article VII of the Armistice of November 11, 1918, or Article III of the Armistice
Agreement of January l6, 1919, as well as of any other material handed over in accordance with the
Armistice of November 11, 1918, and of subsequent Armistice Agreements, for which, as having
non- military value, credit should in the judgment of the Reparation Commission be allowed to the
Property belonging to the Allied and Associated Governments or their nationals restored or
surrendered under the Armistice Agreements in specie shall not be credited to the German
The priority of the charges established by Article 248 shall, subject to the qualifications made
below, be as follows:
(a) The cost of the armies of occupation as defined under Article 249 during the Armistice and its
(b) The cost of any armies of occupation as defined under Article 249 after the coming into force of
the present Treaty;
(c) The cost of reparation arising out of the present Treaty or any treaties or conventions
(d) The cost of all other obligations incumbent on Germany under the Armistice Conventions or
under this Treaty or any treaties or conventions supplementary thereto.
The payment for such supplies of food and raw material for Germany and such other payments as
may be judged by the Allied and Associated Powers to be essential to enable Germany to meet her
obligations in respect of reparation will have priority to the extent and upon the conditions which
have been or may be determined by the Governments of the said Powers.
The right of each of the Allied and Associated Powers to dispose of enemy assets and property
within its jurisdiction at the date of the coming into force of the present Treaty is not affected by the
Nothing in the foregoing provisions shall prejudice in any manner charges or mortgages lawfully
effected in favour of the Allied or Associated Powers or their nationals respectively, before the date
at which a state of war existed between Germany and the Allied or Associated Power concerned, by
the German Empire or its constituent States, or by German nationals, on assets in their ownership at
The Powers to which German territory is ceded shall, subject to the qualifications made in Article
255, undertake to pay:
(1) A portion of the debt of the German Empire as it stood on August 1, 1914, calculated on the
basis of the ratio between the average for the three financial years 1911, 1912, 1913, of such
revenues of the ceded territory, and the average for the same years of such revenues of the whole
German Empire as in the judgment of the Reparation Commission are best calculated to represent
the relative ability of the respective territories to make payment;
A portion of the debt as it stood on August 1, 1914, of the German State to which the ceded
territory belonged, to be determined in accordance with the principle stated above.
Such portions shall be determined by the Reparation Commission.
The method of discharging the obligation, both in respect of capital and of interest, so assumed
shall be fixed by the Reparation Commission. Such method may take the form, inter alia, of the
assumption by the Power to which the territory is ceded of Germany's liability for the German debt
held by her nationals. But in the event of the method adopted involving any payments to the
German Government, such payments shall be transferred to the Reparation Commission on account
of the sums due for reparation so long as any balance in respect of such sums remains unpaid.
(1) As an exception to the above provision and inasmuch as in 1871 Germany refused to undertake
any portion of the burden of the French debt, France shall be, in respect of Alsace-Lorraine, exempt
from any payment under Article 254.
(2) In the case of Poland that portion of the debt which, in the opinion of the Reparation
Commission, is attributable to the measures taken by the German and Prussian Governments for the
German colonisation of Poland shall be excluded from the apportionment to be made under Article
(3) In the case of all ceded territories other than Alsace- Lorraine, that portion of the debt of the
German Empire or German States which, in the opinion of the Reparation Commission, represents
expenditure by the Governments of the German Empire or States upon the Government properties
referred to in Article 256 shall be excluded from the apportionment to be made under Article 254.
Powers to which German territory is ceded shall acquire all property and possessions situated
therein belonging to the German Empire or to the German States, and the value of such acquisitions
shall be fixed by the Reparation Commission, and paid by the State acquiring the territory to the
Reparation Commission for the credit of the German Government on account of the sums due for
For the purposes of this Article the property and possessions of the German Empire and States shall
be deemed to include all the property of the Crown, the Empire or the States, and the private
property of the former German Emperor and other Royal personages.
In view of the terms on which Alsace-Lorraine was ceded to Germany in 1871, France shall be
exempt in respect thereof from making any payment or credit under this Article for any property or
possessions of the German Empire or States situated therein.
Belgium also shall be exempt from making any payment or any credit under this Article for any
property or possessions of the German Empire or States situated in German territory ceded to
Belgium under the present Treaty.
In the case of the former German territories, including colonies, protectorates or dependencies,
administered by a Mandatory under Article 22 of Part I (League of Nations) of the present Treaty,
neither the territory nor the Mandatory Power shall be charged with any portion of the debt of the
German Empire or States.
All property and possessions belonging to the German Empire or to the German States situated in
such territories shall be transferred with the territories to the Mandatory Power in its capacity as
such and no payment shall be made nor any credit given to those Governments in consideration of
For the purposes of this Article the property and possessions of the German Empire and of the
German States shall be deemed to include all the property of the Crown, the Empire or the States
and the private property of the former German Emperor and other Royal personages.
Germany renounces all rights accorded to her or her nationals by treaties, conventions or
agreements, of whatsoever kind, to representation upon or participation in the control or
administration of commissions, state banks, agencies or other financial or economic organisations
of an international character, exercising powers of control or administration, and operating in any of
the Allied or Associated States, or in Austria, Hungary, Bulgaria or Turkey, or in the dependencies
of these States, or in the former Russian Empire.
(1) Germany agrees to deliver within one month from the date of the coming into force of the
present Treaty, to such authority as the Principal Allied and Associated Powers may designate, the
sum in gold which was to be deposited in the Reichsbank in the name of the Council of the
Administration of the Ottoman Public Debt as security for the first issue of Turkish Government
(2) Germany recognises her obligation to make annually for the period of twelve years the payments
in gold for which provision is made in the German Treasury Bonds deposited by her from time to
time in the name of the Council of the Administration of the Ottoman Public Debt as security for the
second and subsequent issues of Turkish Government currency notes.
(3) Germany undertakes to deliver, within one month from the coming into force of the present
Treaty, to such authority as the Principal Allied and Associated Powers may designate, the gold
deposit constituted in the Reichsbank or elsewhere, representing the residue of the advance in gold
agreed to on May 5, 1915, by the Council of the Administration of the Ottoman Public Debt to the
Imperial Ottoman Government.
(4) Germany agrees to transfer to the Principal Allied and Associated Powers any title that she may
have to the sum in gold and silver transmitted by her to the Turkish Ministry of Finance in
November, 1918, in anticipation of the payment to be made in May, 1919, for the service of the
Turkish Internal Loan.
(5) Germany undertakes to transfer to the Principal Allied and Associated Powers, within a period
of one month from the coming into force of the present Treaty, any sums in gold transferred as
pledge or as collateral security to the German Government or its nationals in connection with loans
made by them to the Austro- Hungarian Government.
(6) Without prejudice to Article 292 of Part X (Economic Clauses) of the present Treaty, Germany
confirms the renunciation provided for in Article XV of the Armistice of November 11, 1918, of
any benefit disclosed by the Treaties of Bucharest and of Brest-Litovsk and by the treaties
Germany undertakes to transfer, either to Roumania or to the Principal Allied and Associated
Powers as the case may be, all monetary instruments, specie, securities and negotiable instruments,
or goods, which she has received under the aforesaid Treaties.
(7) The sums of money and all securities, instruments and goods of whatsoever nature, to be
delivered, paid and transferred under the provisions of this Article, shall be disposed of by the
Principal Allied and Associated Powers in a manner hereafter to be determined by those Powers.
Without prejudice to the renunciation of any rights by Germany on behalf of herself or of her
nationals in the other provisions of the present Treaty, the Reparation Commission may within one
year from the coming into force of the present Treaty demand that the German Government become
possessed of any rights and interests of German nationals in any public utility undertaking or in any
concession operating in Russia, China, Turkey, Austria, Hungary and Bulgaria, or in the
possessions or dependencies of these States or in any territory formerly belonging to Germany or
her allies, to be ceded by Germany or her allies to any Power or to be administered by a Mandatory
under the present Treaty, and may require that the German Government transfer, within six months
of the date of demand, all such rights and interests and any similar rights and interests the German
Government may itself possess to the Reparation Commission.
Germany shall be responsible for indemnifying her nationals so dispossessed, and the Reparation
Commission shall credit Germany, on account of sums due for reparation, with such sums in
respect of the value of the transferred rights and interests as may be assessed by the Reparation
Commission, and the German Government shall, within six months from the coming into force of
the present Treaty, communicate to the Reparation Commission all such rights and interests,
whether already granted, contingent or not yet exercised, and shall renounce on behalf of itself and
its nationals in favour of the Allied and Associated Powers all such rights and interests which have
not been so communicated.
Germany undertakes to transfer to the Allied and Associated Powers any claims she may have to
payment or repayment by the Governments of Austria, Hungary, Bulgaria or Turkey, and, in
particular, any claims which may arise, now or hereafter, from the fulfilment of undertakings made
by Germany during the war to those Governments.
Any monetary obligation due by Germany arising out of the present Treaty and expressed in terms
of gold marks shall be payable at the option of the creditors in pounds sterling payable in London;
gold dollars of the United States of America payable in New York; gold francs payable in Paris; or
gold lire payable in Rome.
For the purpose of this Article the gold coins mentioned above shall be defined as being of the
weight and fineness of gold as enacted by law on January 1, 1914.
Germany gives a guarantee to the Brazilian Government that all sums representing the sale of coffee
belonging to the State of Sao Paolo in the ports of Hamburg, Bremen, Antwerp and Trieste, which
were deposited with the Bank of Bleichroder at Berlin, shall be reimbursed together with interest at
the rate or rates agreed upon. Germany having prevented the transfer of the sums in question to the
State of Sao Paolo at the proper time, guarantees also that the reimbursement shall be effected at the
rate of exchange of the day of the deposit.
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