ARTICLE 36.

With a view to effecting the reductions necessary to facilitate the attainment of the objects referred to in Article 35, the number of aeroplanes, capable of use in war, in commission in the land, sea and air armed forces of each of the High Contracting Parties who at present possess such aeroplanes shall, by the end of the period of the present Convention, not exceed the figures laid down for such party in the table annexed to this chapter; as regards the other High Contracting Parties, the status quo existing on January 1st, 1933, shall be maintained during the said period.

Each of the High Contracting Parties mentioned in the table annexed to this chapter may keep a number of aeroplanes in immediate reserve, not exceeding in each case 25 per cent of the number of aeroplanes in commission in the land, sea and air forces of such party.

ARTICLE 37.

The High Contracting Parties agree that their air armaments will not include aeroplanes exceeding three tons unladen weight. Exception, however, may be made in the case of troop-carriers and flyingboats. Complete particulars of any such machines exceeding the maximum unladen weight of three tons must be returned annually to the Permanent Disarmament Commission.

ARTICLE 38.

No dirigible shall be constructed or acquired during the period of the present Convention by any of the High Contracting Parties for commission in their land, sea or air forces. The High Contracting Parties who at present possess such dirigibles may, however, retain but not replace them during the said period.

ARTICLE 39.

The definition of unladen weight is given in Annex I.

ARTICLE 40.

Aeroplanes, capable of use in war, in commission in the land, sea and air armed forces of any of the High Contracting Parties in excess of the number indicated for such party in the table annexed to this chapter must have been put out of commission or otherwise disposed of by the end of the period of the present Convention. At least onehalf of such excess must, in the case of each such High Contracting Party, have been so dealt with by June 30th, 1936.

ARTICLE 41.

Aeroplanes exceeding the maximum unladen weight indicated in Article 37 and now existing in the armed forces of the High Contracting Parties must all, except in so far as exceptions may be made in accordance with that article, have been destroyed by the end of the period of this Convention. At least half of their number must, in the case of each High Contracting Party, have been destroyed by June 30th, 1936.

1 Figures will have to be inserted subsequently for the other Parties which at present possess málitary or naval aeroplanes.

ANNEX I.

(See document Conf. D. 157, page 487.)

ANNEX II.

(See document Conf. D. 157, pages 487 and 488.)

Chapter 4.-Manufacture of and Trade in War Material.

SECTION III-EXPENDITUre.

DRAFT OF ARTICLES TO BE EMBODIED IN THE CONVENTION

PUBLICITY.

The following text has been drawn up by the Technical Committee of the National Defence Expenditure Commission in accordance with paragraph 3 (a) of the resolution adopted by the General Commission on June 8th last (document Conf.D./C.G.135(1)). This is a provisional text which will have to be re-examined by the Technical ComImittee and to which a certain number of annexes will be added. The sole purpose, therefore, of its inclusion in the present document is to give the General Commission some indication of the general nature of the contractual obligations to be assumed which the Technical Committee may possibly suggest to the States represented at the Conference.

PROVISIONAL TEXT APPROVED BY THE TECHNICAL COMMITTEE OF THE NATIONAL DEFENCE EXPENDITURE COMMISSION ON JULY 11TH, 1933.5

It is the unanimous opinion of the members of the Technical Committee that the present draft Convention is of an essentially provisional character and cannot in any circumstances definitely bind its authors. This draft merely represents the result of a first examination and a first reading; such being the case, it cannot be regarded as anything more than a basis of discussion.

This state of affairs is due to the fact that on certain points even the Technical Committee's report does not embody definite proposals and that, in consequence, the Committee's work has not yet emerged from the preparatory stage.

Document Conf.D./C.D./C.T.204(2).

Article 1.

The High Contracting Parties undertake to give full publicity periodically to their national defence expenditure on a basis of reciprocity and in the manner and by the dates stipulated in the following articles and in the Annex to this Part of the Convention, which includes a general definition and a conventional list of such expenditure.

Such publicity shall apply to all national defence expenditure, irrespective of the nature and origin of the resources out of which such expenditure is met.

Article 2.

The High Contracting Parties undertake to forward the following documents to the Secretariat of the Permanent Commission: 6

(1) The draft general budgets (estimates) of the central authorities, and, if such are prepared, the draft individual budgets of each of the ministerial departments and draft special budgets, whenever these various documents include national defence expenditure within the meaning of the Convention;

(2) The instruments enacting the general budgets of the central authorities and, if such are prepared, the budgets of the various ministerial departments, colonies, protectorates, or territories placed under the sovereignty of mandate of the High Contracting Parties and special budgets, whenever these various documents include national defence expenditure within the meaning of the Convention;

(3) Two summary statements during each exercice, showing how the total amounts of the national defence expenditure authorisations included in the original budgets mentioned under (2) have been modified by expenditure authorisations granted subsequently to the enactment of the original budgets;

(4) The general closed accounts of the central authorities, the individual closed accounts of the ministerial departments, the general closed accounts of the colonies, protectorates or territories placed under the sovereignty or mandate of the High Contracting Parties, and special accounts (if not included in the accounts mentioned above), whenever these various documents include national defence expenditure within the meaning of the Convention.

The documents mentioned under (1) and (2) shall be despatched within -- days after their publication; or, in the event of their not being published, within months after the date on which

they have been finally drawn up.

The documents mentioned under (3) shall be despatched within days after the expiry of successive periods of six months, counting from the beginning of the financial year.

The High Contracting Parties undertake to publish and to despatch to the Secretariat of the Permanent Commission at the earliest possible date the closed accounts mentioned under (4) above. In any event, the publication of these accounts shall take place in sufficient. time for them to be attached, as evidence in support, to the statement of expenditure the communication of which is provided for in Article 5.

The special questions raised by the despatch of the documents relating to the colonies, protectorates or territories under mandate will have to form the subject of special study in collaboration with the delegates of the colonial Powers.

Article 3.

The High Contracting Parties undertake for a period of years to despatch to the Secretariat of the Permanent Commission, within months after the beginning of the financial year, a statement of their annual expenditure authorisations as specified in their original budgets.

This statement shall be accompanied by the reconciliation tables provided for in the Annex to this Part of the Convention.

Article 4.

The High Contracting Parties undertake to despatch to the Secretariat of the Permanent Commission, six months after the end of the financial year, a statement of the provisional figure of the total amount of payments made for national defence purposes during the financial year or the financial exercice, or, should this prove impossible, a statement of the provisional figure of the total amount of orders for payment issued for national defence purposes during the financial year or the financial exercice.

Article 5.

The High Contracting Parties undertake to despatch to the Secretariat of the Permanent Commission, within fourteen months after the end of the financial year, a statement of national defence payments during the financial exercice. This statement shall be accompanied by the reconciliation tables provided for in the Annex to this Part of the Convention.

The High Contracting Parties shall communicate as evidence in support of the statement of payments mentioned above, in addition to the documents referred to in Article 2, No. (4):

A certified extract from the accounts of the federated States, showing the national defence expenditure payments appearing in those accounts;

A certified extract from the accounts of regional and local public bodies, showing the national defence expenditure payments appearing in those accounts.

Article 6.

The High Contracting Parties undertake to communicate to the Permanent Commission, on receipt of a special request accompanied by a statement of reasons, the budgets and individual accounts of the ministerial departments, special budgets and accounts, and the budgets and accounts of federated States or regional and local public bodies, the regular and periodical communication of which is not provided for under the terms of Article 2 of the present Convention. Article 7.

The High Contracting Parties undertake to retain or to introduce in the presentation of their budgets and accounts a specification sufficient to enable the Permanent Commission to follow by means of reconciliation tables the operations by which the figures in their budgets and accounts have been transferred to the statements, the production of which is stipulated for in Articles 3 and 5 of the present Convention.

The conditions regarding this specification shall be specially mentioned, in the case of some States, in the Annex to this Part of the Convention.

Article 8.

The Permanent Commission shall check the statements provided. for in Articles and of the present Convention in order to establish the figures of expenditure to be published.

For this purpose, after asking the Governments for any additional particulars and explanations that it considers necessary, the Permanent Commission may request them to correct the figures supplied by them and to bring them into conformity with those which it deems to be correct.

The Permanent Commission shall also examine the documentation provided for in Articles. Should it regard this documentation as inadequate, it may request the Governments to supply additional particulars.

TRANSITIONAL PROVISION.

The first Model Statement supplied by the States in pursuance of the provisions of Article 5 shall be accompanied, not only by the accounts to be communicated in conformity with Article 1, but also by the accounts for the three previous financial exercices.

If the High Contracting Parties, when producing the first Model Statement, are not in a position to communicate the published accounts for the three previous financial exercices, they shall lay before the Permanent Commission certified statements of national defence payments during each of these three exercices.

FINAL NOTE.

The Technical Committee notes that the General Commission has not yet come to a decision with regard to formations organised on a military basis which may have to be included among the effectives of certain countries. The Committee reserves its right to submit such modifications as it may be necessary to introduce into the present articles in the light of the decisions subsequently taken, more especially with regard to the categories of documents to be automatically supplied by the various countries (accounts of federated States, etc.).

PART III.-EXCHANGE OF INFORMATION.

ARTICLES 42 TO 46.

(The provisions of this part will depend, in the main, on the limitations and restrictions imposed by the other parts of the Convention. It does not seem necessary, therefore, to attempt to draft them now. It is only necessary to note that Articles 34 and 35 of the draft Convention will have to be reproduced.)

ARTICLES 34 AND 35 OF THE DRAFT CONVENTION OF 1929 PREPARED BY THE PREPARATORY COMMISSION FOR THE DISARMAMENT CONFERENCE.

Article 34.

Within one month after the date of laying down and the date of completion respectively of each vessel of war, other than the vessels exempt from limitation under Annex I to Chapter B of Part II,