V

REPARATION

2. Property in ceded Territory or surrenderedunder the Armistice

As the Treaty has been drafted Germany will notreceive important credits available towards meetingReparation in respect of her property in ceded territory.

Private property in most of the ceded territory isutilised towards discharging private German debtsto Allied nationals, and only the surplus, if any, isavailable towards Eeparation. The value of suchproperty in Poland and the other new States ispayable direct to the owners.

Government property in Alsace-Lorraine, in terri-tory ceded to Belgium, and in Germany 's formercolonies transferred to a Mandatory, is to be forfeitedwithout credit given. Buildings, forests, and otherState property which belonged to the former Kingdomof Poland are also to be surrendered without credit.There remain, therefore, Government properties, otherthan the above, surrendered to Poland , Governmentproperties in Schleswig surrendered to Denmark , 1 the

in the form of cash. I do liot myself believe that the Reparation Commissionwill secure real resources from the above items by May 1921, even as greatas the lower of the two figures given above.

1 The Treaty ( see Art. 114) leaves it very dubious how far the DanishGovernment is under an obligation to make payments to the ReparationCommission in respect of its acquisition of Schleswig. They might, forinstance, arrange for various off-sets such as the value of the mark notesheld by the inhabitants of ceded areas. In any case the amount of moneyinvolved is quite small. The Danish Government is raising a loan for£6,600,000 (kr. 120.000,000) for the joint purposes of !I taking over Schles-wig's share of the German debt, for buying German public property, forhelping the Schleswig population, and for settling the currency question."