m.

2. Germany, in consideration of the permanent diminution of her
resources, resulting from the Peace Treaty, is only obliged (but is
obliged without restitutions or reserves) to reimburse the direct
damages and the pensions as precised in Schedule I of Clause viii of
the treaty.

3. Germany must pay before May 1, 1921, not less than twenty milliards
of gold marks or make equivalent payment in kind.

4. On May 1 the Reparations Commission will fix the total amount of
the German debt.

5. This debt must be liquidated by annual payments whose totals are to
be fixed by the Commission.

6. The payments will continue for a period of thirty years, or longer
if by that time the debt is not extinguished.

7. Germany will issue one hundred milliards of gold marks of bearer
bonds, and afterwards all such issues as the Reparations Commission
shall demand, until the amount of the debt be reached in order to
permit the stabilization of credit.

8. The payments will be made in money and in kind. The payments in
kind will be made in coal, live stock, chemical products, ships,
machines, furniture, etc. The payments _in specie_ consist of metal
money, of Germany's credits, public and private, abroad, and of a
first charge on all the effects and resources of the Empire and the
German States.

9. The Reparations Commission, charged with seeing to the execution of
this clause, shall have powers of control and decision. It will be
a commission for Germany's debt with wider powers. Called upon to
decide, according to equity, justice and good faith, without being
bound by any codex or special legislation, it has obtained from
Germany an irrevocable recognition of its authority. Its duty is to
supervise until the extinction of the debt Germany's situation, her
financial operations, her effects, her capacity for production, her
provisioning, her production. This commission must decide what Germany
can pay each year, and must see that her payments, added to the
budget, fall upon her taxpayers at least to the extent of the allied
country most heavily taxed. Its decisions shall be carried out
immediately and receive immediate application, without any other
formality. The commission can effect all the changes deemed necessary
in the German laws and regulations, as well as all the sanctions,
whether of a financial, economic or military nature arising from
established violations of the clauses put under its control. And
Germany is oblig