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The economic consequences of the peace / by John Maynard Keynes
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IV

THE TREATY

97

from the rest of Germany , the effect would be far-reaching. But the dreams of designing diplomats donot always prosper, and we must trust the future.

(ii.) The clauses relating to Railways , as originallypresented to Germany , were substantially modified inthe final Treaty , and are now limited to a provisionby which goods coming from Allied territory toGermany, or in transit through Germany , shall receivethe most favoured treatment as regards rail freight,rates, etc., applied to goods of the same kind carriedon any German lines "under similar conditions oftransport, for example, as regards length of route." 1As a non-reciprocal provision this is an act ofinterference in internal arrangements which it isdifficult to justify, but the practical effect of this, 2and of an analogous provision relating to passengertraffic, 3 will much depend on the interpretation ofthe phrase, " similar conditions of transport." 4

For the time being Germany' s transport systemwill be much more seriously disordered by the pro-visions relating to the cession of rolling-stock. Underparagraph 7 of the Armistice conditions Germany was

1 Art. 365. After five years this Article is subject to revision by theCouncil of the League of Nations.

2 The German Government withdrew, as from September 1, 1919, allpreferential railway tariffs for the export of iron and steel goods, on theground that these privileges would have been more than counterbalancedby the corresponding privileges which, under this Article of the Treaty , theywould have been forced to give to Allied traders.

3 Art. 367.

4 Questions of interpretation and application are to be referred to theLeague of Nations (Art. 376).

H