Termination of Commission's Life. (8) The Commission shall cease to exist whenever the undersigned Governments or of them shall so determine. Amendment. (9) This instrument is subject to amendment by the undersigned Governments or of them. of which 5 per cent. is Double this for increase of value and prices 1,867,000,000 £8,600,000,000 £430,000,000 £860,000,000 1. The estimates contained below must be taken with the reservation that, in our opinion, long before the amounts are collected, the Allied Governments may, and probably will, find that such collection is doing to them as much damage as to the enemy, and that the Allied Governments will find it to their interest voluntarily to reduce or suspend such payments. It must also be recognized that any such estimates involve large elements of conjecture. Subject as the above, 2. It is our opinion that Germany can pay the minimum, 1Omitting dead weight public debt. and may be able to pay the maximum, amounts per annum set forth in the American annexed schedule, it being understood that the Financial Commission to be appointed will have the power to fix the amount of the payments between the maximum and minimum limits and to modify the methods of payment, and if necessary will exercise its power to permit one-half thereof to be paid in paper reichsmarks at the par of exchange. 3. These payments may be continued for as many years as is necessary to produce the sum adjudged to be due in respect of reparation under the definitions contended for by the United States. 4. If it is deemed wise not to extend said payments beyond a fixed number of years (say 30 years) whether or not the present value thereof reached the amount due for reparation, then the present value of said maximum and minimum payments running over a period of 30 years will amount respectively to $25,000,000, and $35,000,000. 5. The original estimate of $30,000,000,000 which Messrs. Davis, Strauss and Lamont unanimously arrived at several weeks ago, is still, in their judgment, the most reasonable basis. But they have expressed their willingness to raise this estimate to the maximum figures submitted herewith, in order to try to meet the British and French views. AMERICAN PROPOSAL FOR MINIMUM. PAYMENTS (TO BE REDUCED TO THE FOLLOWING WITHIN DISCRETION OF COMMISSION). Cash Payments (up to May, 1921) 10 annual payments of £200,000,000, each, 1922– 1931 . STERLING £ 1,000,000,000 2,000,000,000 10 annual payments of £300,000,000 each, 1932 The present worth (as of May, 1921) of this series of payments is £5,000,000,000 or $25,000,000,000 It should be noted that the initial sum above mentioned (£1,000,000,000) will probably be reduced to £600,000,000 because of the necessary cash payments to be allowed from it, covering food for Germany, cost of army of occupation and raw materials necessary to permit Germany to resume industrial work. AMERICAN PROPOSAL FOR MAXIMUM Total payments (including interest and sinking fund). £13,000,000,000 The present worth (as of May, 1921) of this series of payments is £7,000,000,000 or $35,000,000,000 It should be noted that the initial sum above mentioned (£1,000,000,000) will probably be reduced to £600,000,000 because of the necessary cash payments to be allowed from it, covering food for Germany, cost of army of occupation and raw materials necessary to permit Germany to resume industrial work. FRENCH PROPOSAL FOR MINIMUM. STERLING Cash Payment (up to May, 1921) In 1921 1922 1923 1924 1925 1926 From 1927-1961 inclusive (34 years) Total payments (including interest and sinking fund) £1,000,000,000 200,000,000 240,000,000 280,000,000 320,000,000 360,000,000 400,000,000 13,400,000,000 £16,400,000,000 The present worth (as of May, 1921) of this series of payments is £6,200,000,000 or $31,000,000,000 From 1927 to 1961 inclusive (34 years) annual payments of £600,000,000 each Total payments (including interest and sinking The present worth (as of May, 1921) of this series of payments is £9,400,000,000 or $47,000,000,000 Thereafter, for a period of 33 years, annual payments of £600,000,000 each Total payments (including interest and sinking fund) The present worth (as of May, 1921) of this series of payments is £11,000,000,000 or $55,000,000,000 N. B. The British proposals are in the form of a memorandum from Lord Sumner, the text of which is not entirely clear as to the total term of payments, nor to the present worth of such payments. No minimum proposals were submitted. DOCUMENT 57. Memorandum of progress with the reparation settlement, April 1, with Anglo-American draft. of Reparations Clauses (typewritten copies). April 1, 1919. British, United States, French and Italian financial representatives met yesterday morning. After preliminary discussion, the conference was adjourned, to enable Mr. Klotz to submit amendments to Mr. Lloyd George's proposals. Since then, the United States representatives and the British representatives have been in almost continuous session. It has been agreed between them that Mr. Lloyd George's plan shall be in substance adopted, that is to say: 1. That Germany shall be compelled to admit her financial liability for all damage done to the civilian population of the Allied and Associated Powers and their property by the aggression of the Enemy States by land, by sea and from the air, and also, for damage resulting from their acts in violation of formal engagements and of the Law of Nations. 2. That a commission should be established to decide: (1) The value of the claims in the categories agreed by the Allies as falling within Germany's liabilities as above. (2) The total amount which Germany was capable of paying to satisfy these claims. (3) That the commission should report by the end of 1921, but should have power to modify, from time to time, the time and mode of Germany's payments subsequent to 1921. |