The financial terms provide that the Austrian pre-war debt shall be appor tioned among the former parts of Aus tria, and that the Austrian coinage and war bonds, circulating in the separated territory, shall be taken up by the new governments and redeemed as they see fit.
Under the military terms the Austrian army is henceforth reduced to 30,000 men on a purely voluntary basis.
Paragraph 5, relating to the military situation, says that the Austrian army shall not exceed 30,000 men, including officers and depot troops. Within three months the Austrian military forces shall be reduced to this number, univer sal military service abolished and volun tary enlistment substituted as part of the plan "to render possible the initiation of a general limitation of armaments of all nations." The army shall be used exclusively for the maintenance of internal order and control of frontiers. All officers must be regulars, those of the present army to be retained being under obligation to serve until 40 years old, those newly appointed agreeing to at least twenty consecutive years of active service. Non commissioned officers and privates must enlist for not less than twelve consecu tive years, including at least six years with the colors.
Within three months the armament of the Austrian army must be reduced ac cording to detailed schedules and all surplus surrendered. The manufacture of all war material shall be confined to one single factory under the control of the States, and other such establish ments shall be closed or converted. Im portation and exportation of arms, muni tions and war materials of all kinds are forbidden.
Paragraph 8 (on reparation) reads, in substance: The allied and associated Governments affirm, and Austria ac cepts, the responsibility of Austria and her allies for causing loss and damage to which the allied and associated Gov ernments and their nationals have been subjected as a consequence of the war im posed upon them by the aggression of Austria and her allies. While recogniz ing that Austria's resources will not be adequate to make complete reparation, the allied and associated Government re quest, and Austria undertakes, that she will make compensation for damage done to civilians and their property, in accord ance with categories of damages similar to those provided in the treaty with Ger many.
The amount of damage is to be de termined by the Reparation Commission provided for in the treaty with Germany, which is to have a special section to handle the Austrian situation. The com mission will notify Austria before May 1, 1921, of the extent of her liabilities and of the schedule of payments for the discharge thereof during a period of thir ty years. It will bear in mind the dim inutions of Austria's resources and capacity of payment resulting from the treaty.
As immediate reparation, Austria shall pay during 1919, 1920, and the first four months of 1921, in such manner as pro vided by the Reparation Commission, "a reasonable sum which shall be deter mined by the commission." Three bonds issues shall be made— the first before May 1, 1921, without interest; the second at 2% per cent. in terest between 1921 and 1926, and there after at 5 per cent. with an additional 1 per cent. for amortization beginning in 1926, and a third at 5 per cent. when the commission is satisfied that Austria can meet the interest and sinking fund obligations. The amount shall be divided by the allied and associated Govern ments in proportions determined upon in advance on a basis of general equity.
The Austrian section of the Repara tion Commission shall include represent atives of the United States, Great Brit ain, France, Italy, Greece, Poland, Ru mania, the Serbo-Slovene State, and Czecho-Slovakia. The first four shall each appoint a delegate with two votes and the other five shall choose one dele gate each year to represent them all. Withdrawal from the commission is per mitted on twelve months' notice.
Paragraph 9 (Financial).—The first charge upon all the assets and revenues of Austria shall be the costs arising under the present treaty, including, in order of priority, the costs of the armies of occupation, reparations, and other charges specifically agreed to and, with certain exceptions, as granted by the Reparation Commission for payments for imports. Austria must pay the total cost of the armies of occupation from the armistice of Nov. 3, 1918, so long as maintained, and may export no gold before May 1, 1921, without con sent of the Reparation Commission.