onds bearing interest at 5 per cent, under terms to be fixed
by the Commission.

[Sidenote: Interest on Germany's debt.]

[Sidenote: Certificates to represent bonds or goods.]

Interest on Germany's debt will be 5 per cent unless otherwise
determined by the Commission in the future, and payments that are not
made in gold may "be accepted by the Commission in the form of
properties, commodities, businesses, rights, concessions, &c."
Certificates of beneficial interest, representing either bonds or goods
delivered by Germany, may be issued by the Commission to the interested
powers, no power being entitled, however, to have its certificates
divided into more than five pieces. As bonds are distributed and pass
from the control of the Commission, an amount of Germany's debt
equivalent to their par value is to be considered as liquidated.

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 b