140 THE ECONOMIC CONSEQUENCES OF THE PEACE ch.

Governments affirm and Germany accepts the re-sponsibility of Germany and her allies for causingall the loss and damage to which the Allied andAssociated Governments and tbeir nationals havebeen subjected as a consequence of the war imposedupon them by the aggression of Germany and herallies." This is a well and carefully drafted Article;for the President could read it as statement of ad-mission on Germany 's part of moral responsibilityfor bringing about the war, while the Prime Ministercould explain it as an admission of financial liabilityfor the general costs of the war. Article 232 con-tinues : "The Allied and Associated Governmentsrecognise that the resources of Germany are notadequate, after taking into account permanentdiminutions of such resources which will result fromother provisions of the present Treaty, to make com-plete reparation for all such loss and damage." ThePresident could comfort himself that this was nomore than a statement of undoubted fact, and thatto recognise that Germany cannot pay a certainclaim does not imply that she is liable to pay theclaim; but the Prime Minister could point out thatin the context it emphasises to the reader theassumption of Germany 's theoretic liability assertedin the preceding Article. Article 232 proceeds:"The Allied and Associated Governments, however,require, and Germany undertakes, that she ivill makecompensation for all damage done to the civilian