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.

As immediate reparation, Austria shall pay during 1919, 1920, and the
first four months of 1921, in such manner as provided by the Reparation
Commission, "a reasonable sum which shall be determined by the
commission."

[Sidenote: Bond issues to be made.]

Three bond issues shall be made--the first before May 1, 1921, without
interest; the second at 2-1/2 per cent. intere