The Prime Minister explained to the Howe of Commons on
Thursday, May 5th, the decisions of the Supreme Council of the Allies in regard to Germany. She still had large irregular forces, contrary to tho Treaty, so that France could not disarm and settle down. Germany had not brought any war criminals to trial, and had allowed three of the worst offenders to escape. As for reparation, Germany had boon given plenty of time to make a fair offer, but she had declined to treat the matter seriously. The Reparation Commission fixed the total amount due at £6,600,000,000. The Allies proposed that Germany should pay £100,000,000 a year, with a variable sum equal to 26 per cent. of the German exports. The annual payment would not exceed that which was proposed at Paris, unless Germany's exports became very large indeed. Germany was to issue three categories of bonds—"A" bonds for £600,000,000 by July 1st ; "B" bonds for £1,900,000,000 by November 1st; and "C" bonds for the balance of £4,100,000,000, which the Reparation Com- mission was to issue according to Germany's capacity to pay. The bonds would boar interest at 5 per cent., with / per cent. for sinking fund. This would be paid out of the proceeds of 25 per cent. of the exports. The remaining 1 per cent. of the exports, and any surplus, would go to pay interest on unissued bonds, but no further interest on these would be demanded.
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