§ Major ENTWISTLEasked the Prime Minister whether an agreement has been reached between the British and French Governments as to the procedure to be followed in the matter of the German reparation; and, if so, what are the principal heads of the agreement?
§ The PRIME MINISTERYes, Sir. The text of the agreement reached is as follows:
"1. There will be a meeting at Brussels of Allied technical experts sitting with German experts The experts will make their reports to their Governments, and the procès-verbal of their meetings will be communicated to the Reparation Commission.
"2. A Conference of Allied Ministers will meet at Geneva, after the holding of the plebiscite in Upper Silesia, but at the latest during the first fortnight of February, to discuss the question of reparations in its entirety (total amount of the German debt, examination of Germany's capacity to pay, etc.). The representatives of the German Government will take part in this Conference in a consultative capacity as at Spa.
"The members of this Conference will report to their respective Governments, and each Government will then inform its representative on the Reparation Commission of the conclusions at which it has arrived on the report of its representatives at the Geneva Conference.
"3. The Reparation Commission will proceed, in accordance with the provisions of the Treaty of Versailles, to declare the total amount and means of payment of the sums due by Germany, and will report to the Powers upon Germany's capacity to pay.
"4. The Supreme Council will then meet to consider what further steps require to be taken, including guarantees and penalties."