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iv THE TREATY 75

Empire lias been built more truly on coal and ironthan on blood and iron. The skilled exploitation ofthe great coalfields of the Ruhr, Upper Silesia , andthe Saar, alone made possible the development ofthe steel, chemical, and electrical industries whichestablished her as the first industrial nation ofcontinental Europe. One-third of Germany 's popula-tion lives in towns of more than 20,000 inhabitants,an industrial concentration which is only possible ona foundation of coal and iron. In striking, there-fore, at her coal supply, the French politicians werenot mistaking their target. It is only the extremeimmoderation, and indeed technical impossibility, ofthe Treaty 's demands which may save the situationin the long-run.

(1) The Treaty strikes at Germany 's coal supplyin four ways :—

(i.) "As compensation for the destruction of thecoal-mines in the north of France , and as part pay-ment towards the total reparation due from Germany for the damage resulting from the war, Germany cedes to France in full and absolute possession, withexclusive rights of exploitation, unencumbered, andfree from all debts and charges of any kind, the coal-mines situated in the Saar Basin." 1 While the ad-ministration of this district is vested for fifteen yearsin the League of Nations, it is to be observed thatthe mines are ceded to France absolutely. Fifteen

1 Art. 45.