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

REPARATION

109

more acutely how far Germany can be made con-tingently liable for damage done, not by herself, butby her co-belligerents, Austria-Hungary, Bulgaria ,and Turkey . This is one of the many questions towhich the Fourteen Points give no clear answer;on the one hand, they cover explicitly in Point 11damage done to Roumania, Serbia , and Montenegro,without qualification as to the nationality of the troopsinflicting the damage; on the other hand, the Noteof the Allies speaks of " German " aggression whenit might have spoken of the aggression of " Germany and her allies." On a strict and literal interpre-tation, I doubt if claims lie against Germany fordamage done, e.g. by the Turks to the Suez Canal ,or by Austrian submarines in the Adriatic. Butit is a case where, if the Allies wished to strain apoint, they could impose contingent liability onGermany without running seriously contrary to thegeneral intention of their engagements.

As between the Allies themselves the case is quitedifferent. It would be an act of gross unfairnessand infidelity if France and Great Britain were totake what Germany could pay and leave Italy andSerbia to get what they could out of the remainsof Austria-Hungary. As amongst the Allies them-selves it is clear that assets should be pooled andshared out in proportion to aggregate claims.

In this event, and if my estimate is accepted,as given below, that Germany 's capacity to pay