SHANTUNG

[Sidenote:  To cede Kiao-Chau rights to Japan.]

Germany cedes to Japan all rights, titles, and privileges, notably as to Kiao-Chau, and the railroads, mines, and cables acquired by her treaty with China of March 6, 1897, by and other agreements as to Shantung.  All German rights to the railroad from Tsing-tao to Tsinan-fu, including all facilities and mining rights and rights of exploitation, pass equally to Japan, and the cables from Tsing-tao to Shanghai and Che-foo, the cables free of all charges.  All German State property, movable and immovable, in Kiao-Chau is acquired by Japan free of all charges.

SECTION VI

MILITARY, NAVAL AND AIR

In order to render possible the initiation of a general limitation of the armaments of all nations, Germany undertakes directly to observe the military, naval, and air clauses which follow.

MILITARY FORCES

[Sidenote:  German Army to be demobilized.]

The demobilization of the German Army must take place within two months of the peace.  Its strength may not exceed 100,000, including 4,000 officers, with not over seven divisions of infantry and three of cavalry, and to be devoted exclusively to maintenance of internal order and control of frontiers.  Divisions may not be grouped under more than two army corps headquarters staffs.  The great German General Staff is abolished.  The army administrative service, consisting of civilian personnel not included in the number of effectives, is reduced to one-tenth the total in the 1913 budget.  Employees of the German States, such as customs officers, first guards, and coast guards, may not exceed the number in 1913.  Gendarmes and local police may be increased only in accordance with the growth of population.  None of these may be assembled for military training.

ARMAMENTS

[Sidenote:  Munition works to be closed.]

All establishments for the manufacturing, preparation, storage, or design of arms and munitions of war, except those specifically excepted, must be closed within three months of the peace, and their personnel dismissed.  The exact amount of armament and munitions allowed Germany is laid down in detail tables, all in excess to be surrendered or rendered useless.  The manufacture or importation of asphyxiating, poisonous, or other gases and all analogous liquids is forbidden as well as the importation of arms, munitions, and war materials.  Germany may not manufacture such materials for foreign governments.

CONSCRIPTION

[Sidenote:  Conscription to be abolished in Germany.]

Conscription is abolished in Germany.  The enlisted personnel must be maintained by voluntary enlistments for terms of twelve consecutive years, the number of discharges before the expiration of that term not in any year to exceed 5 per cent of the total effectives.  Officers remaining in the service must agree to serve to the age of 45 years, and newly appointed officers must agree to serve actively for twenty-five years.