The sun., 1919-06-18


the war must bear it's Just consequence,
her essential interests have been spared
as FAR as possible, Reparation must be
prior to the settlement Of all other Ger.
man public debts with such exceptions
as the commission may approve TO pro
tect German credit Paymant for food may
also be a first charge and gold may be
exported on approval Military occupa-
ton as an essential guarantee OF peace
must be paid for by Germany In accord
ance with custom, notably that set by
her in 1871. War material surrendered
after the armistice cannot he credited
against PREPARATIONS. Liberated territories
will bear their portion of the pre-war
debts but cannot be asked to assume
any part OF the war debt itself After
the events Of the war. the Powers have
the right to demand that Germany be
no longer intimately involved In their
financial or economic life or In that OF
Germany's former Allies or Russia. As
the greater part OF Germany's foreign
securities must be llquidated, protection
OF German holders will no longer Justify
German participation in international
organizations. The German proposal
that reparations payments to be MAIDEN
currency OF the injured country cannot
be accepted. as the choice may be left
to the latter in view probably Of heavy
purchases abroad TO rebuild their ruins
the right Is reserved to demand Of Ger
mary also her credits in Austria. Hun
gary, Bulgaria and Turkey.
Economic Features.
Principles announced by President
Wilson and embodied in the covenant
Of the League of Nations as TO the
equality of trade conditions will be
brought into effect when the world re-
turns to normal conditions, but in the
meantime n transitory regime is essen
tial to save certain allied states from a
position OF economic iDferiority because
of the ravaging OF their territories and
the contrasting conditions OF German
industries
Reciprocity IL impossible at present,
for with it Germany would reap the
fruits OF her criminal acts. A general
| indiscriminate reapplication OF multi
lateral and bilateral treaties cannot be
accepted, though as many have been
restored as possible. Germany Is re-
qpired not to accept the text of postal
and telegraph arrangements, but rather
not to oppose their conclusion. Bilateral
treaties will not be split up in such
way as to place all the obligations on
one side and the rights on the other
Consular relations are not reciprocally
established owing to the war activity OF
German consuls.
| Private property of Germans abroad
may be Justly used to meet PREPARATION
| charges as Germany's resources are
wholly inadequate and because In the
war the Allied Powers themselves have
had to take over foreign investments Of
their nationals to meet foreign obi cations.
giving their own domestic obligations in
| 80 IL
situations for research and education
cannot be immune in the light of their
past activities. Questions Of clearing
houses, contracts. prescriptions, judg-
ments. and the like are gone into in
great detail.
After almost Ave years OF war pro-
vided by Germany's reputation of these
principles. the Powers can only repeat
| President Wilson's words that the rea-
ron why peace must be guaranteed is that
| one OF the parties TO that peace has
proved that his promises are not worthy
Of faith
Armed forces of the Allies will con-
tinue in occupation OF German territory
as a guarantee for the execution of the
treaty.
There will be constituted a civilian
body styled the 1nterallied Rhineland
| High Commission. consisting OF four
members. representing Belgium. France,
Great Britain and the United States. 1t
shall have executive powers. and It's
members shall enjoy diplomatic pri,i-
lcges and immunfties.
THE civilian administration shall re-
main In the hands of the German au-
thorities under German law. except in Al
far as 1t may be necessary for the high
commission to modify this. The Allies
retain the right to requisition in kind
and to demand servtces Germany will
be responsible for the expenses Of occu-
patton. and Of the high commission.
| Germany will undertake to place al
the disposal Of the allied troops such
military establishments and accommoda-
tion as required. The transport. tele-
graphic and postal personnel will obey
ORDERS given on behalf Of the commander
in chief OF the allied armies for military
purposes. according to detailed provi.
| ons.
, The high commission will have the
rover whenever they think it necessary
to declare a state of siege in any part OF
all the territory concerned.