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The economic consequences of the peace / by John Maynard Keynes
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94 THE ECONOMIC CONSEQUENCES OE THE PEACE ch.

export into Germany , without payment of customsduty, up to the average amount sent annually intoGermany from 1911 to 1913. 1 But there is no similarprovision for German exports into Alsace-Lorraine.

For three years Polish exports to Germany, andfor five years Luxemburg's exports to Germany, are tohave a similar privilege, 2but not German exportsto Poland or to Luxemburg. Luxemburg also, whichfor many years has enjoyed the benefits of inclusionwithin the German Customs Union, is permanentlyexcluded from it henceforward. 3

For six months after the Treaty has come intoforce Germany may not impose duties on importsfrom the Allied and Associated States higher thanthe most favourable duties prevalent before the war;and for a further two years and a half (making threeyears in all) this prohibition continues to apply tocertain commodities, notably to some of those as towhich special agreements existed before the war, andalso to wine, to vegetable oils, to artificial silk, and towashed or scoured wool. 4 This is a ridiculous and in-jurious provision, by which Germany is prevented fromtaking those steps necessary to conserve her limited

1 Art. 268 (a). 2 Art. 268 (b) and (c).

3 The Grand Duchy is also deneutralised and Germany binds herself to" accept in advance all international arrangements which may be concludedby the Allied and Associated Powers relating to the Grand Duchy " (Art.40). At the end of September 1919 a plebiscite was held to determinewhether Luxemburg should join the French or the Belgian Customs Union,which decided by a substantial majority in favour of the former. The thirdalternative of the maintenance of the union with Germany was not left opento the electorate. 4 Art. 269.