62 THE ECONOMIC CONSEQUENCES OF THE PEACE ch.

which, including railways, must be surrendered with-out payment, while, on the other hand, the German Government remains liable for any debt which mayhave been incurred for the purchase or constructionof this property, or for the development of thecolonies generally. 1

In distinction from the practice ruling in the caseof most similar cessions in recent history, the propertyand persons of private German nationals, as distinctfrom their Government, are also injuriously affected.The Allied Government exercising authority in anyformer German colony " may make such provisionsas it thinks fit with reference to the repatriation fromthem of German nationals and to the conditions uponwhich German subjects of European origin shall, orshall not, be allowed to reside, hold property, trade orexercise a profession in them." 2 All contracts andagreements in favour of German nationals for theconstruction or exploitation of public works lapse tothe Allied Governments as part of the payment duefor Reparation.

But these terms are unimportant compared withthe more comprehensive provision by which " theAllied and Associated Powers reserve the rightto retain and liquidate all property, rights, andinterests belonging at the date of the coming intoforce of the present Treaty to German nationals, orcompanies controlled by them," within the former

1 Arts. 120 and 257. 2 Art. 122.