forms of payment, with the understanding that certain expenses
such as those of the armies of occupation and payments for food and raw
materials may be deducted at the discretion of the Allies.

It is now provided that a commission shall have charge of future
payments and the amounts of such payment is left to be decided by the
commission.

MUST REPLACE SHIPS SUNK BY SUBMARINES

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 reparation committee,
together with documents of title evidencing the transfer of the ships
free from incumbrance.

"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.

MUST RESTORE DEVASTATED AREAS

"Germany undertakes to devote her economic resources directly to the
physical restoration of the invaded areas. The reparation commission is
authorized to require Germany to replace the destroyed articles and to
manufacture materials required for reconstruction purposes, all with due
consideration for Germany's essential domestic requirements.

"The German Government is also to restore to the French Government
certain papers taken by the German authorities in 1870 belonging then to
M. Reuther, and to restore the French flags taken during the war of 1870
and 1871. As reparation for the destruction of the library of Louvain,
Germany is to hand over manuscripts, early printed books, prints, etc.,
to be equivalent to those destroyed.

"In addition to the above Germany is to hand over to Belgium wings now
at Berlin belonging to the altar piece of the 'Adoration of the Lamb,'
by Hubert and Jan Van Eyck, the center of which is now in the church of
St. Bavo at Ghent, and the wings now at Berlin and Munich, of the altar
piece of 'Last Supper,' by Dirk Bouts, the center of which belongs to
the church of St. Peter at Louvain.

MUST PAY COST OF ARMY OF OCCUPATION

"Germany is required to pay the total cost of the armies of occupation
f