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248 THE ECONOMIC CONSEQUENCES OF THE PEACE ch.

supplies of Germany, Poland , and the constituent partsof the former Austro-Hungarian Empire , and of theexportable surplus of the United Kingdom . All theStates represented on the Commission should under-take to furnish it with the fullest information, and tobe guided by its advice so far as their sovereigntyand their vital interests permit.

Tariffs. — A Free Trade Union should be estab-lished under the auspices of the League of Nations of countries undertaking to impose no protectionisttariffs 1 whatever against the produce of other membersof the Union. Germany, Poland, the new States whichformerly composed the Austro-Hungarian and TurkishEmpires, and the Mandated States should be compelledto adhere to this Union for ten years, after whichtime adherence would be voluntary. The adherenceof other States would be voluntary from the outset.But it is to be hoped that the United Kingdom, atany rate, would become an original member.

By fixing the Reparation payments well withinGermany' s capacity to pay, we make possible therenewal of hope and enterprise within her territory,

1 It would be expedient so to define a " protectionist tariff" as to permit(a) the total prohibition of certain imports ; {b) the imposition of sumptuaryor revenue customs duties on commodities not produced at home ; (c) theimposition of customs duties which did not exceed by moi'e than five percent a countervailing excise on similar commodities produced at home ; (d)export duties. Further, special exceptions might be permitted by a majorityvote of the countries entering the Union, Duties which had existed for fiveyears prior to a country's entering the Union might be allowed to disappeargradually by equal instalments spread over the five years subsequent tojoining the Union.