iv 7HE TREATY 63

German colonies. 1 This wholesale expropriation ofprivate property is to take place without the Allies affording any compensation to the individuals ex-propriated, and the proceeds will be employed, first,to meet private debts due to Allied nationals fromany German nationals, and second, to meet claimsdue from Austrian, Hungarian, Bulgarian, or Turkishnationals. Any balance may either be returnedby the liquidating Power direct to Germany, orretained by them. If retained, the proceeds mustbe transferred to the Reparation Commission forGermany' s credit in the Reparation account. 2

In short, not only are German sovereignty andGerman influence extirpated from the whole of herformer oversea possessions, but the persons andproperty of her nationals resident or owning propertyin those parts are deprived of legal status and legalsecurity.

(3) The provisions just outlined in regard to theprivate property of Germans in the ex - German colonies apply equally to private German property inAlsace-Lorraine, except in so far as the French Govern-ment may choose to grant exceptions. 3 This is ofmuch greater practical importance than the similarexpropriation overseas because of the far higher value

1 Arts. 121 and 297 {b). The exercise or non-exercise of this option of ex-propriation appears to lie, not with the Reparation Commission, but withthe particular Power in whose territory the property has become situatedby cession or maudation.

2 Art. 297 (h) and para. 4 of Annex to Part X. Section IV.

3 Arts. 53 and 74.