66 THE ECONOMIC CONSEQUENCES OF THE PEACE ch.

Peace Treaty , and is inappropriate to modern social-istic conceptions of the relations between the State andits citizens. It is true, however, that the Treaty strikes a destructive blow at a conception which liesat the root of much of so-called international law, asthis has been expounded hitherto.

The principal provisions relating to the expro-priation of German private property situated outsidethe frontiers of Germany , as these are now determined,are overlapping in their incidence, and the more drasticwould seem in some cases to render the others un-necessary. Generally speaking, however, the moredrastic and extensive provisions are not so preciselyframed as those of more particular and limitedapplication. They are as follows :—

(a) The Allies "reserve the right to retain andliquidate all property, rights and interests belongingat the date of the coming into force of the presentTreaty to German nationals, or companies controlledby them, within their territories, colonies, possessionsand protectorates, including territories ceded to themby the present Treaty ." 1

This is the extended version of the provision whichhas been discussed already in the case of the coloniesand of Alsace-Lorraine. The value of the property soexpropriated will be applied, in the first instance,to the satisfaction of private debts due fromGermany to the nationals of the Allied Government

1 Art. 297 (b).