V

REPARATION

175

which the exports of Germany could be brought toexceed her imports.

In the year 1913 Germany 's imports amounted to£538,000,000 and her exports to £505,000,000, ex-clusive of transit trade and bullion. That is to say,imports exceeded exports by about £33,000,000. Onthe average of the five years ending 1913, however,her imports exceeded her exports by a substantiallylarger amount, namely, £74,000,000. It follows,therefore, that more than the whole of Germany 's pre-war balance for new foreign investment was derivedfrom the interest on her existing foreign securities,and from the profits of her shipping, foreign banking,etc. As her foreign properties and her mercantilemarine are now to be taken from her, and as her foreignbanking and other miscellaneous sources of revenuefrom abroad have been largely destroyed, it appearsthat, on the pre-war basis of exports and imports,Germany , so far from having a surplus wherewith tomake a foreign payment, would be not nearly self-sup-porting. Her first task, therefore, must be to effect areadjustment of consumption and production to coverthis deficit. Any further economy she can effect in theuse of imported commodities, and any further stimula-tion of exports will then be available for Separation.

Two-thirds of Germany 's import and export tradeis enumerated under separate headings in the follow-ing tables. The considerations applying to theenumerated portions may be assumed to apply more