VII

REMEDIES

269

aggregate sum required might not be so large as issometimes supposed. Much might be done, perhaps,with a fund of £200,000,000 in the first instance.This sum, even if a precedent of a different kind hadbeen established by the cancellation of Inter-AllyWar Debt, should be lent and should be borrowedwith the unequivocal intention of its being repaid infull. With this object in view, the security for theloan should be the best obtainable, and the arrange-ments for its ultimate repayment as complete aspossible. In particular, it should rank, both forpayment of interest and discharge of capital, infront of all Reparation claims, all Inter-Ally WarDebt, all internal war loans, and all other Govern-ment indebtedness of any other kind. Those borrow-ing countries who will be entitled to Reparationpayments should be required to pledge all suchreceipts to repayment of the new loan. And allthe borrowing countries should be required to placetheir customs duties on a gold basis and to pledgesuch receipts to its service.

Expenditure out of the loan should be subject togeneral, but not detailed, supervision by the lendingcountries.

If, in addition to this loan for the purchase offood and materials, a guarantee fund were establishedup to an equal amount, namely £200,000,000 (ofwhich it would probably prove necessary to find onlya part in cash), to which all members of the League