v REPARATION 163

over various private claims. Under the scheme fordealing with enemy debts outlined in Chapter IV.,the first charge on these assets is the private claimsof Allied against German nationals. It is unlikely,except in the United States , that there will be anyappreciable surplus for any other purpose.

(ii.) Germany 's most important fields of foreigninvestment before the war were not, like ours,oversea, but in Russia, Austria - Hungary , Turkey,Roumania, and Bulgaria . A great part of thesehas now become almost valueless, at any rate forthe time being; especially those in Russia andAustria-Hungary . If present market value is to betaken as the test, none of these investments arenow saleable above a nominal figure. Unless theAllies are prepared to take over these securitiesmuch above their nominal market valuation, and holdthem for future realisation, there is no substantialsource of funds for immediate payment in the formof investments in these countries.

(iii.) While Germany was not in a position torealise her foreign investments during the war tothe degree that we were, she did so nevertheless inthe case of certain countries and to the extent thatshe was able. Before the United States came intothe war, she is believed to have resold a large partof the pick of her investments in American securities,although some current estimates of these sales (afigure of £60,000,000 has been mentioned) are