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TREATY 481 In every case the accused will be en- titled to name his own counsel. SECTION VIII. REPARATION AND RESTITUTION "The allied and associated governments affirm, and Germany accepts, the respon- sibility of herself and her allies for caus- ing all the loss and damage to w^hich the allied and associated governments and their nationals have been subjected as a consequence of the war imposed upon them by the aggression of Germany and her allies." The total obligation of Germany to pay as defined in the category of damages is to be determined and notified to her after a fair hearing, and not later than May 1, 1921, by an interallied Reparation Com- mission. At the same time a schedule of pay- ments to discharge the obligations within thirty years shall be presented. These payments are subject to postponement in certain contingencies. Germany irrev- ocably recognizes the full authority of this commission, agrees to supply it with all the necessary information and to pass legislation to effectuate its findings. She further agrees to restore to the allies cash and certain articles which can be identified. As an immediate step toward restora- tion Germany shall pay within two years one thousand million pounds sterling in either gold, goods, ships, or other specific forms of payment. This sum being included in, and not additional to, the first thousand million bond issue referred to below, with the understanding that certain expenses, such as those of the armies of occupation and payments for food and raw ma- terials, may be deducted at the discretion of the allies. Germany further binds herself to re- pay all sums borrowed by Belgium from her allies as a result of Germany's vio- lation of the treaty of 1839 up to Nov. 11, 1918, and for this purpose will issue at once and hand over to the Reparation Commission 5 per cent, gold bonds fall- ing due in 1926. While the allied and associated govern- ments recognize that the resources of Germany are not adequate, after taking into account permanent diminution of such resources which will result from other treaty claims, to make complete reparation for all such loss and damage, they require her to make compensation for all damage caused to civilians under seven main categories: (a) Damages by personal injury to civilians caused by acts of war, direetly TREATY or indirectly, including bombardments from the air. (b) Damages caused to civilians, in- cluding exposure at sea, resulting from acts of cruelty ordered by the enemy, and to civilians in the occupied territories. (c) Damages caused by maltreatment of prisoners. (d) Damages to the allied peoples rep- resented by pensions and separation al- lowances, capitalized at the signature of this treaty. (e) Damages to property other than naval or military materials. (f) Damages to civilians by being forced to labor. (g) Damages in the form of levies or fines imposed by the enemy. In periodically estimating Germany's capacity to pay, the Reparation Commis- sion shall examine the German system of taxation, first to the end that the sums for reparation which Germany is required to pay shall become a charge upon all her revenues prior to that for the service or discharge of any domestic loan; and, secondly, so as to satisfy itself that in general the German scheme of taxation is fully as heavy proportionately as that of any of the powers represented on the commission. The measures which the allied and as- sociated powers shall have the right to take, in case of voluntary default by Ger- many, and which Germany agrees not to regard as acts of war, may include eco- nomic and financial prohibitions and re- prisals and in general such other meas- ures as the respective governments may determine to be necessary in the circum- stances. The commission shall consist of one representative each of the United States, Great Britain, France, Italy, and Bel- gium, a representative of Serbia or Japan taking the place of the Belgian repre- sentative when the interests of either country are particularly affected, with all other allied powers entitled, when their claims are under consideration, to the right of representation without voting power. It shall permit Germany to give evidence regarding her capacity to pay, and shall assure her a jast opportunity to be heard. It shall make its permanent headquarters at Paris, establish its own procedure and personnel; have general control of the whole reparation problem; and become the exclusive agency of the allies for receiving, holding, selling, and distributing reparation payments. Ma- jority vote shall prevail, except that unanimity is required on questions in- volving the sovereignty of any of the allies, the cancellation of all or part of Germany's obligations, the time and man-