§ 37. Mr. HANNONasked the Chancellor of the Exchequer whether, in view of the early meeting of German and Italian delegates to discuss the nature of the goods by which reparation in kind may be paid to Italy, he will explain exactly the powers given to separate countries to take such steps?
§ Sir R. HORNEUnder the Reparation Chapter of the Treaty of Versailles and the Annexes thereto Germany is bound to deliver reconstruction material, shipping, coal and dyestuffs to the Reparation Commission in accordance with the provisions of the Treaty. Under Article 8 of the Schedule of Payments and Annex 4 to Part VIII of the Treaty of Versailles Germany is bound, subject to the prior approval of the Reparation Commission, to provide such material and labour as any of the Allied Powers may require towards the restoration of the devastated area of that Power or to enable any Allied Power to proceed with the restoration or development of its industrial or economic life. Any agreements between Germany on the one hand and an Allied Power entitled to reparation on the other hand for deliveries in kind under this article are, therefore, subject to the prior approval of the Reparation Commission, moreover, as regards the year 1922 any such agreements are conditioned by the fact that the maximum value of deliveries in kind to be demanded has been fixed at 950 million gold marks for France and 500 million gold marks for other Powers entitled to reparation and that under Article 3 of the Financial Agreement of 11th March, 1922, the method by which deliveries in kind may be made (including the proceeds of the Reparation (Recovery) Act) is laid down and that the Governments agreed to prohibit the re-export of deliveries in kind during 1922.