SHIPPING

[Sidenote:  Right to Allies to have merchant shipping replaced.]

The German Government recognizes the right of the Allies to the replacement, ton for ton and class for class, of all merchant ships and fishing boats lost or damaged owing to the war, and agrees to cede to the Allies all German merchant ships of 1,600 tons gross and upward; one-half of her ships between 1,600 and 1,000 tons gross, and one-quarter of her steam trawlers and other fishing boats.  These ships are to be delivered within two months to the Separation Committee, together with documents of title evidencing the transfer of the ships free from encumbrance.

“As an additional part of reparation,” the German Government further agrees to build merchant ships for the account of the Allies to the amount of not exceeding 200,000 tons gross annually during the next five years.

All ships used for inland navigation taken by Germany from the Allies are to be restored within two months, the amount of loss not covered by such restitution to be made up by the cession of the German river fleet up to 20 per cent thereof.

DYESTUFFS AND CHEMICAL DRUGS

[Sidenote:  Material to be delivered to Reparations Commission.]

In order to effect payment by deliveries in kind, Germany is required, for a limited number of years, varying in the case of each, to deliver coal, coal-tar products, dyestuffs and chemical drugs, in specific amounts to the Reparations Commission.  The Commission may so modify the conditions of delivery as not to interfere unduly with Germany’s industrial requirements.  The deliveries of coal are based largely upon the principle of making good diminutions in the production of the allied countries resulting from the war.

Germany accords option to the commission on dyestuffs and chemical drugs, including quinine, up to 50 per cent of the total stock in Germany at the time the treaty comes into force, and similar option during each six months to the end of 1924 up to 25 per cent of the previous six months’ output.

DEVASTATED AREAS

[Sidenote:  Machinery and animals to be replaced.]

Germany undertakes to devote her economic resources directly to the physical restoration of the invaded areas.  The Reparations Commission is authorized to require Germany to replace the destroyed articles by the delivery of animals, machinery, &c., existing in Germany, and to manufacture materials required for reconstruction purposes; all with due consideration for Germany’s essential domestic requirements.

[Sidenote:  French damages in coal and fuel to be made good.]