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the costs of the war up to the limit of her capacityto do so." But he accompanied this statement ofprinciple with many "words of warning" as tothe practical difficulties of the case: " "We haveappointed a strong Committee of experts, represent-ing every shade of opinion, to consider this questionvery carefully and to advise us. There is no doubtas to the justice of the demand. She ought to pay,she must pay as far as she can, but we are not goingto allow her to pay in such a way as to wreck ourindustries." At this stage the Prime Minister soughtto indicate that he intended great severity, withoutraising excessive hopes of actually getting the money,or committing himself to a particular line of actionat the Conference. It was rumoured that a highcity authority had committed himself to the opinionthat Germany could certainly pay £20,000 millionand that this authority for his part would not care todiscredit a figure of twice that sum. The Treasuryofficials, as Mr. Lloyd George indicated, took adifferent view. He could, therefore, shelter himselfbehind the wide discrepancy between the opinions ofhis different advisers, and regard the precise figure ofGermany 's capacity to pay as an open question in thetreatment of which he must do his best for hiscountry's interests. As to our engagements underthe Fourteen Points he was always silent.

On November 30, Mr. Barnes, a member ofthe War Cabinet, in which he was supposed to

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