The financial terms provide that the Austrian pre-war debt shall be apportioned among the former parts of Austria, and that the Austrian coinage and war bonds, circulating in the separated territory, shall be taken up by the new governments and redeemed as they see fit.

Under the military terms the Austrian army is henceforth reduced to 30,000 men on a purely voluntary basis.

[Sidenote:  Universal military service to be abolished.]

Paragraph 5, relating to the military situation, says that the Austrian army shall not exceed 30,000 men, including officers and depot troops.  Within three months the Austrian military forces shall be reduced to this number, universal military service abolished and voluntary enlistment substituted as part of the plan “to render possible the initiation of a general limitation of armaments of all nations.”

The army shall be used exclusively for the maintenance of internal order and control of frontiers.  All officers must be regulars, those of the present army to be retained being under obligation to serve until 40 years old, those newly appointed agreeing to at least twenty consecutive years of active service.  Non-commissioned officers and privates must enlist for not less than twelve consecutive years, including at least six years with the colors.

[Sidenote:  Manufacture of war material.]

Within three months the armament of the Austrian army must be reduced according to detailed schedules, and all surplus surrendered.  The manufacture of all war material shall be confined to one single factory under the control of the State, and other such establishments shall be closed or converted.  Importation and exportation of arms, munitions and war materials of all kinds are forbidden.

[Sidenote:  Compensation for damage to civilians.]

Paragraph 8 (on reparation) reads, in substance:  The allied and associated Governments affirm, and Austria accepts, the responsibility of Austria and her allies for causing loss and damage to which the allied and associated Governments and their nationals have been subjected as a consequence of the war imposed upon them by the aggression of Austria and her allies.  While recognizing that Austria’s resources will not be adequate to make complete reparation, the allied and associated Governments request, and Austria undertakes, that she will make compensation for damage done to civilians and their property, in accordance with categories of damages similar to those provided in the treaty with Germany.

The amount of damage is to be determined by the Reparation Commission provided for in the treaty with Germany, which is to have a special section to handle the Austrian situation.  The commission will notify Austria before May 1, 1921, of the extent of her liabilities and of the schedule of payments for the discharge thereof during a period of thirty years.  It will bear in mind the diminutions of Austria’s resources and capacity of payment resulting from the treaty.