As a first instalment Germany must pay to the Allies, in such form and by such instalments as the Reparation Commission may determine, the equivalent of 20,000,000,000 gold marks by the 1st May 1921, and as a second instalment the equivalent of 40,000,000,000 marks between 1921 and 1926. The question of further instalments is reserved. The Reparation Commission shall have power to examine periodically Germany's system of taxation with a view to estimating her capacity to pay, and the sums for reparation shall become a charge upon all her revenues prior to that for the service or discharge of any domestic loan. A special provision is made for the repayment by Germany of all sums which Belgium has borrowed from the Allies during the War. _Shipping._--The German Government recognises the right of the Allies to the replacement, ton for ton and class for class, of all merchant ships and fishing boats lost or damaged owing to the war, and agrees to cede to the Allies all German merchant ships of 1600 tons gross and upwards, one-half of her ships between 1600 and 1000 tons gross, and one-quarter of her steam trawlers and other fishing boats. These ships are to be delivered within two months to the Reparation Commission together with documents of title evidencing the transfer of the ships from encumbrance. 'As an additional part of reparation, the German Government further agrees to build merchant ships for the account of the Allies to the amount of not exceeding 200,000 tons gross annually during the next five years.' Specified submarine cables are renounced by Germany in favour of the Allies, their value to be estimated and written off the account for reparation. Among special provisions is an undertaking by Germany to furnish the University of Louvain with manuscripts, printed books, and objects of collection 'corresponding in number and value to those destroyed in the burning by Germany of the Library of Louvain.' PART IX _Financial Clauses_ Any Power to which German territory is ceded will normally assume in respect thereof a fair portion of the German pre-war debt, the amount to be fixed in each case in accordance with certain stated principles by the Reparation Commission. But France shall have no liability for German debt in respect of Alsace-Lorraine. The value of German Government property in ceded territory will normally be credited to Germany on account of reparation; but no credit will be given for any German Government property in Alsace-Lorraine; nor will Mandatory Powers either assume any portion of Germany's pre-war debts or give any credits for German Government property. Germany is required to pay the total cost of the Armies of Occupation from the date of the Armistice for so long as they are maintained on German territory. This cost is a first charge on her resources; the next charge is for reparation. PART X _Economic Clauses_