THE SARRE In compensation for the destruction of coal mines in northern France and as payment on account of reparation, Ger many cedes to France full ownership of the coal mines of the Sarre Basin with their subsidiaries, accessories and facili ties. Their value will be estimated by the Reparation Commission and credited against that account. The French rights will be governed by German law in force at the armistice, excepting war legisla tion, France replacing the present own ers, whom Germany undertakes to indem nify. France will continue to furnish the present proportion of coal for local needs and contribute in just proportion to local taxes. The basin extends from the fron tier of Lorraine as re-annexed to France N. as far as St. Wendel, including on the W. the valley of the Sarre as far as Sarre Holzbach, and on the E. the town of Homburg.
In order to secure the rights and wel fare of the population and guarantee to France entire freedom in working the mines, the territory will be governed by a commission appointed by the League of Nations and consisting of five mem bers, one French, one a native inhabitant of the Sarre, and three representing three different countries other than France and Germany. The League will appoint a member of the Commission as Chairman to act as executive of the Commission. The Commission will have all powers of government formerly belonging to the German empire, Prussia, and Bavaria, will administer the railroads and other public services, and have full power to interpret the treaty clauses. The local courts will continue, but subject to the Commission. Existing German legisla tion will remain the basis of the law, but the Commission may make modification after consulting a local representative assembly which it will organize. It will have the taxing power but for local pur poses only. New taxes must be approved by this assembly. Labor legislation will consider the wishes of the local labor organizations and the labor program of the League. French and other labor may
be freely utilized, the former being free to belong to French unions. All rights acquired as to pensions and social insur ance will be maintained by Germany and the Sarre Commission.
There will be no military service, but only a local gendarmerie to preserve or der. The people will preserve their local assemblies, religious liberties, schools, and language, but may vote only for local assemblies. They will keep their present nationality except so far as individuals may change it. Those wishing to leave will have every facility with respect to their property. The territory will form part of the French customs system, with no export tax on coal and metallurgical products going to Germany, nor on Ger man products entering the basin and for five years no import duties on products of the basin going to Germany or Ger man products coming into the basin. For local consumption French money may cir culate without restriction.
After fifteen years a plebiscite will be held by communes to ascertain the desires of the population as to continuance of the existing regime under the League of Nations, union with France or union with Germany. The right to vote will belong to all inhabitants over twenty resident therein at the signature. Taking into account the opinions thus expressed the League will decide the ultimate sover eignty. In any portion restored to Ger many the German Government must buy out the French mines at an appraised valuation. If the price is not paid within six months thereafter, this portion passes finally to France. If Germany buys back the mines the League will determine how much of the coal shall be annually sold to France.