tained shall be deducted from the amount payable by the State in question to Austria in respect of property of the former or existing Austrian Government which the State acquires with the territory. Each State shall be solely responsible in respect of that portion of the secured debt for which it assumes responsibility under the terms of this Article, and holders of the debt for which responsibility is assumed by States other than Austria shall have no recourse against the Government of any other State.

Any property which was specifically pledged to secure any debt referred to in this Article shall remain specifically pledged to secure the new debt. But in case the property so pledged is situated as the result of the present Treaty in more than one State, that portion of the property which is situated in a particular State shall constitute the security only for that part of the debt which is apportioned to that State, and not for any other part of the debt.

For the purposes of the present Article there shall be regarded as secured debt payments due by the former Austrian Government in connection with the purchase of railways or similar property; the distribution of the liability for such payments will be determined by the Reparation Commission in the same manner as in the case of secured debt.

Debts for which the responsibility is transferred under the terms of this Article shall be expressed in terms of the currency of the State assuming the responsibility, if the original debt was expressed in terms of Austro-Hungarian paper currency. For the purposes of this conversion the currency of the assuming State shall be valued in terms of Austro-Hungarian paper kronen at the rate at which those kronen were exchanged into the currency of the assuming State by that State when it first substituted its own currency for Austro-Hungarian kronen. The basis of this conversion of the currency unit in which the bonds are expressed shall be subject to the approval of the Reparation Commission, which shall, if it thinks fit, require the State effecting the conversion to modify the terms thereof. Such modification shall only be required if, in the opinion of the Commission, the foreign exchange value of the currency unit or units substituted for the currency unit in which the old bonds are expressed is substantially less at the date of the conversion than the foreign exchange value of the original currency unit,

If the original Austrian debt was expressed in terms of a foreign currency or foreign currencies, the new debt shall be expressed in terms of the same currency or currencies.

If the original Austrian debt was expressed in terms of Austro-Hungarian gold coin, the new debt shall be expressed in terms of equivalent amounts of pounds sterling and gold dollars of the United States of America, the equivalents being calculated on the basis of the weight and the fineness of gold of the three coins as enacted by law on January 1, 1914.

Any foreign exchange options, whether at fixed rates or otherwise, embodied explicitly or implicitly in the old bonds shall be embodied in the new bonds also.

2. Each of the States to which territory of the former Austro-Hungarian Monarchy is transferred, and each of the States arising from the dismemberment of that Monarchy, including Austria, shall assume responsibility for a portion of the unsecured bonded debt of the former Austrian Government which was in existence on July 28, 1914, calculated on the basis of the ratio between the average for the three financial years 1911, 1912, 1913, of such revenues of the distributed territory and the average for the same years of such revenues of the whole of the former Austrian territories as in the judgment of the Reparation Commission are best calculated to represent the financial capacity of the respective territories. In making the above calculation, the revenues of Bosnia and Herzegovia shall not be included.

The responsibilities in respect of bonded debt to be assumed under the terms of this Article shall be discharged in the manner laid down in the Annex hereto.

The Austrian Government shall be solely responsible for all the liabilities of the former Austrian Government incurred prior to July 28, 1914, other than those evidenced by the bonds, bills, securities and currency notes which are specifically provided for under the terms of the present Treaty.

Neither the provisions of this Article nor the provisions of the Annex hereto shall apply to securities of the former Austrian Government deposited with the Austro-Hungarian Bank as security for the currency notes issued by that bank.

ANNEX.

The amount of the former unsecured Austrian Government Bonded Debt, the responsibility for which is to be distributed under the provisions of Article 203, shall be the amount that debt as it stood on July 28, 1914, after deducting that portion which represents of the liability of the former Hungarian Government for that debt as provided by the additional Convention relating to the contribution of the countries of the Sacred Hungarian Crown to the charges of the general debt of the Austro-Hungarian State approved by the AustroHungarian Law of December 30, 1907, B. L. I. No. 278.

Each State assuming responsibility for the old unsecured Austrian Government debt shall, within three months of the coming into force of the present Treaty, if it has not already done so, stamp with the stamp of its own Government all the Bonds of that debt existing in its own territory. The distinguishing numbers of the Bonds so stamped shall be recorded and shall be furnished, together with the other records of the stamping, to the Reparation Commission.

Holders of Bonds within the territory of a State which is required to stamp old Austrian Bonds under the terms of this Annex shall, from the date of the coming into force of the present Treaty, be creditors in respect of these Bonds of that State only, and they shall have no recourse against the Government of any other State.

Each State which, under the terms of Article 203, is required to assume responsibility for a portion of the old unsecured Austrian Government Debt, and which has ascertained by means of stamping the old Austrian Bonds that the Bonds of any particular issue of such old Austrian Bonds held within its territory were smaller in amount than the amount of that issue for which, in accordance with the assessment of the Reparation Commission, it is held responsible, shall deliver to the Reparation Commission new Bonds equal in amount to the difference between the amount of the issue for which it is responsible and the amount of the same issue recorded as held within its own territory. Such new Bonds shall be of such denominations as the Reparation Commission may require. They shall carry the same rights as regards

interest and amortisation as the old Bonds for which they are substituted, and in all other respects the conditions of the new Bonds shall be fixed subject to the approval of the Reparation Commission.

If the original Bond was expressed in terms of Austro-Hungarian paper currency, the new Bonds by which it is replaced shall be expressed in terms of the currency of the State issuing the new Bond, and for the purpose of this currency conversion, the currency of the new State shall be valued in terms of Austro-Hungarian paper kronen at the rate at which those kronen were exchanged for the currency of the new State by that State when it first substituted its own currency for Austro-Hungarian paper kronen. The basis of this conversion of the currency unit in which the Bonds are expressed shall be subject to the approval of the Reparation Commission, which shall, if it thinks fit, require the State effecting the conversion to modify the terms thereof. Such modification shall only be required if, in the opinion of the Commission, the foreign exchange value of the currency unit or units substituted for the currency unit in which the old Bonds are expressed is substantially less at the date of the conversion than the foreign exchange value of the original currency unit.

If the original Bond was expressed in terms of a foreign currency or foreign currencies, the new Bond shall be expressed in terms of the same currency or currencies. If the original Bond was expressed in terms of AustroHungarian gold coin, the new Bond shall be expressed in terms of equivalent amounts of pounds sterling and gold dollars of the United States of America, the equivalents being calculated on the basis of the weight and fineness of gold of the three coins as enacted by law on January 1, 1914.

Any foreign exchange options, whether at fixed rates or otherwise, embodied explicitly or implicitly in the old Bonds shall be embodied in the new Bonds also.

Each State which under the terms of Article 203 is required to assume responsibility for a portion of the old unsecured Austrian Government Debt, which has ascertained by means of stamping the old Austrian Bonds that the Bonds of any particular issue of such old Austrian Bonds held within its territory were larger in amount than the amount of that issue for which it is

held responsible in accordance with the assessment of the Reparation Commission, shall receive from the Reparation Commission its due proportionate share of each of the new issues of Bonds issued in accordance with the provisions of this Annex.

Holders of unsecured Bonds of the old Austrian Government Debt held outside the boundaries of the States to which territory of the former AustroHungarian Monarchy is transferred, or of States arising from the dismemberment of that Monarchy, including Austria, shall deliver through the agency of their respective Governments to the Reparation Commission the Bonds which they hold, and in exchange therefor the Reparation Commission shall deliver to them certificates entitling them to their due proportionate share of each of the new issues of Bonds corresponding to and issued in exchange for their surrendered Bonds under the provisions of this Annex.

The share of each State or private holder entitled to a share in any new issue of Bonds issued in accordance with the provisions of this Annex shall bear such proportion to the total amount of Bonds of that new issue as the holding of the State or private owner in question of the old issue of Bonds bears to the total amount of the old issue presented to the Reparation Commission for exchange into new Bonds in accordance with the provisions of this Annex. Each such participating State or private holder will also be entitled to its or his due proportionate share of the new Bonds issued under the terms of the Treaty with Hungary in exchange for that portion of the former Austrian Government Debt for which Hungary accepted liability under the Agreement of 1907.

The Reparation Commission shall, if it think fit, arrange with the holders of the new Bonds provided for by this Annex a consolidation loan of each debtor State, the Bonds of which loan shall be substituted for the various different issues of new Bonds on such terms as may be agreed upon by the Commission and the bondholders.

The State assuming liability for any Bond of the former Austrian Government shall assume any liability attaching to the Bond in respect of unpaid coupons or sinking fund instalments accrued since the date of the coming into force of the present Treaty.