208 THE ECONOMIC CONSEQUENCES OF THE PEACE ch.

conveniently dealt with in this place. Broadly speak-ing, no concessions were entertained on the ReparationChapter as it was originally drafted, but the Allies recognised the inconvenience of the indeterminacy ofthe burden laid upon Germany and proposed a methodby which the final total of claim might be establishedat an earlier date than May 1, 1921. They promised,therefore, that at any time within four months of thesignature of the Treaty (that is to say, up to the endof October 1919), Germany should be at liberty tosubmit an offer of a lump sum in settlement of herwhole liability as defined in the Treaty , and withintwo months thereafter (that is to say, before the end of1919) the Allies "will, so far as may be possible, returntheir answers to any proposals that may be made."

This offer is subject to three conditions. " Firstly,the German authorities will be expected, before mak-ing such proposals, to confer with the representativesof the Powers directly concerned. Secondly, suchoffers must be unambiguous and must be precise andclear. Thirdly, they must accept the categories andthe Reparation clauses as matters settled beyonddiscussion/'

The offer, as made, does not appear to contemplateany opening up of the problem of Germany 's capacityto pay. It is only concerned with the establishmentof the total bill of claims as defined in the Treaty—whether (e.g.) it is £7000 million, £8000 million,or £10,000 million. "The questions," the Allies '