made the military evacuation of the Ruhr a sine qua non of her signature to the London Agreements, and took the ground that military evacuation should take place concurrently with the economic evacuation. The French and Belgian Governments were disinclined to give up their hold on the Ruhr until the successful working of the Dawes plan had been demonstrated, and proposed two years as the maximum time within which their military forces should be withdrawn. In this connection, the French and Belgians also proposed that a few thousand of their nationals should be retained in the employ of the railways in the Ruhr for the security of their troops in the event of a German strike, and to be used as a nucleus in case reoccupation became necessary.

As will be seen in the following analysis of the Agreements, the main questions in dispute were compromised. The Reparation Commission retains jurisdiction of the question of German defaults, but an American is to be added when the commission is considering any point relating to the Dawes report, and the provisions of the Treaty of Versailles are amended so as to provide for appeals to an arbitral commission from decisions of the Commission upon German defaults either under the treaty or the Dawes plan. The complete military evacuation of the Ruhr within one year was promised by France and Belgium and they gave up their demand for the retention of employees on the German railways.

The documents embodying the arrangements of the conference at London consist of a protocol stating the general results, and four annexed agreements: (I) between the Reparation Commission and the German Government, containing their respective undertakings to put the Dawes plan into effect; (II) between the Allied Governments and the German Government, concerning Agreement No. I; (III) between the Allied Governments and Germany, enumerating the various steps to be taken on either side in order to put the plan into execution; (IV) an agreement between the Allies

amending Annex II to the reparation clauses of the Treaty of Versailles.5

By Agreement No. I, which was signed on August 9,o the German Government undertakes to enact and enforce the laws and regulations required to carry out the recommendations of the Dawes plan, especially concerning the establishment of the bank of issue, the German railways, industrial debentures, and the control of the revenues assigned as security for the reparation annuities. On its part, the Reparation Commission agrees to take proper measures to facilitate the issue of the German loan required by the Dawes plan, and to make all financial adjustments necessary to give effect to the plan.

By Agreement No. II, the Allied Governments and Germany agree to submit to arbitration all disputes which may arise between the Reparation Commission and Germany with regard to the interpretation of Agreement No. I, the Dawes plan, or the German legislation enacted in execution of that plan. The arbitral body is to consist of three members appointed for five years, one by the Reparation Commission, one by the German Government, and the third by agreement between them, or, failing such agreement, by the President of the Permanent Court of International Justice. The Agreement then deals with the functions of the Transfer Committee, and provides a system of arbitration for the settlement of disputes relating to this section of the Dawes report.

The Dawes plan provides that all reparation payments are to be deposited in the bank of issue to the credit of the Agent for Reparation Payments, who may withdraw them only under the direction of the Transfer Committee, which is composed of an American, French, English, Italian and Belgian member, with the Agent for Reparation Payments as chairman. The Transfer Committee is empowered by

The text of the protocol and agreements is printed in the London Times, Aug. 18, 1924, pp. 15-16. As soon as an official text is available, it will be printed in the Supplement to The American Journal of International Law. The other three agreements were initialled Aug. 16 and signed Aug. 30.

the plan to apply the bank balances (a) to payments for deliveries in kind; (b) to convert them into foreign currencies for remission in accordance with the instructions of the Reparation Commission; and (c) to invest them under certain conditions in bonds or other loans in Germany."

In this connection it should be noted that the Treaty of Versailles enumerates the products which may be demanded in kind and limits the period during which they are to be delivered. Under the treaty, coal and coke deliveries expire in 1930, and dyestuffs and chemicals in 1925. The Dawes committee gave special attention to the question of deliveries in kind, which, it said, are not really distinguishable from cash payments in their financial effects. The committee recommended the continuance of such deliveries of the natural products of Germany and of exports which do not entail the previous importation into Germany of a large percentage of their value. If not carried too far, the Dawes committee thought that such deliveries would create a greater export surplus by stimulating German productivity and keep the reparation transfer as large as possible.8

By London Agreement No. II, Germany recognizes the right of the Transfer Committee to employ reparation funds to make payments for deliveries in kind on customary commercial conditions of any commodities or service, regardless of the limitations fixed by the Treaty of Versailles either as to the nature of the products or the time of delivery. Provision is also made for continuing deliveries in kind of the products enumerated in the Treaty of Versailles after the fulfillment by Germany of her treaty obligations. It is stipulated, however, that the programs for both classes of deliveries shall be fixed with due regard to the possibilities of production in Germany, to the position of her supplies of raw materials and to her domestic requirements 7 Annex 6 to the Dawes Report, British parliamentary paper, Cmd. 2105, pp. 110-112.

8 Cmd. 2105, pp. 33 et seq.

in so far as is necessary for the maintenance of her social and economic life and also with due regard to the limitations set out in the experts' report. Disputes as to these programs of deliveries will be referred to an arbitral commission of three members, appointed in advance for a definite period by agreement between the Reparation Commission, acting unanimously, and the German Government, or, in default of agreement, by the President of the Permanent Court of International Justice. The chairman of this commission is to be a citizen of the United States. The same commission is given power to consider and act upon complaints of wilful discrimination or obstruction on the part of the German Government or its nationals in the matter of commercial contracts between the Allied Governments or their nationals and the German suppliers of deliveries in kind.

To determine the procedure of placing orders and the conditions for carrying out deliveries in kind, the London Agreement constitutes a special committee of six, composed of three Allied representatives to be appointed by the Reparation Commission, and three members to be appointed by the German Government, with power to select a neutral additional member in the event of a difference. This special committee also has certain advisory functions in regard to facilitating deliveries in kind, limiting their anti-economic character, and recommending measures to enforce the prohibition of the Dawes report against the reexportation of such deliveries.

Article VI of Annex 6 to the Dawes report gives the Transfer Committee the power to transfer marks to private individuals for the purpose of making purchases of a permanent character in Germany from a schedule of property to be agreed upon between the Transfer Committee and the German Government. In arriving at such agreement, the report states that the German Government shall be required to have due regard to the necessity for making maximum payments to its creditors but it shall also be entitled to have regard to maintaining control

over its own internal economy. The London Agreement provides that differences of opinion which may arise between the Transfer Committee and the German Government regarding the execution of this section shall be referred to an arbitrator to be chosen by agreement between the two parties, or, in default of agreement, to be nominated by the President of the Permanent Court of International Justice.

Article VIII of Annex 6 of the Dawes report provides that in the event of concerted financial maneuvers, either by the government or by any group, for the purpose of preventing transfers, the Transfer Committee may take such action as may be necessary to defeat such maneuvers. The London Agreement provides that if the Transfer Committee is equally divided as to whether such concerted financial maneuvers have been set on foot, the question shall be referred to an independent and impartial arbitrator, selected by the Transfer Committee in agreement, or, in default of an agreement, by the President of the Permanent Court of International Justice. Majority decisions of the Transfer Committee taken under this article, and under Article X of the same Annex, which limits the accumulation of funds at the disposal of the Agent General for Reparation Payments, may be appealed by a member of the minority. to an arbitral tribunal, consisting of three financial experts to be selected unanimously by the Transfer Committee, or, failing unanimity, by the President of the Permanent Court of International Justice. This tribunal is to include a citizen of the United States, who shall act as chairman.

London Agreement No. II provides finally that if any interested government, Allied or German, considers that a defect exists in the technical working of the Dawes plan which can be remedied without affecting substantially the principles of the plan, it may submit the question to the Reparation Commission, and that body is required to take the advice of the Agent General for Reparation Payments, the Trustees for the Railway and Industrial Mortgage