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 consecutive years, including at least six years with the colors.
Manufacture of war material.
Within three months the armament of the Austrian army must be reduced according 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 State, and other such establishments shall be closed or converted. Importation and exportation of arms, munitions and war materials of all kinds are forbidden.
Compensation for damage to civilians.
Paragraph 8 (on reparation) reads, in substance: The allied and associated Governments affirm, and Austria accepts, the responsibility of Austria and her allies for causing loss and damage to which the allied and associated Governments and their nationals have been subjected as a consequence of the war imposed upon them by the aggression of Austria and her allies. While recognizing that Austria's resources will not be adequate to make complete reparation, the allied and associated Governments request, and Austria undertakes, that she will make compensation for damage done to civilians and their property, in accordance with categories of damages similar to those provided in the treaty with Germany.
The amount of damage is to be determined by the Reparation Commission provided for in the treaty with Germany, which is to have a special section to handle the Austrian situation. The commission 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 thirty years. It will bear in mind the diminutions 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 provided by the Reparation Commission, "a reasonable sum which shall be determined by the commission."
Bond issues to be made.
Three bond issues shall be made—the first before May 1, 1921, without interest; the second at 2-1/2 per cent. interest between 1921 and 1926, and thereafter 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 Governments in proportions determined upon in advance on a basis of general equity.
Representatives of the Reparation Commission.