I

THE TREATY OF PEACE

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their right of veto. We must trust the newGovernments, whose existence I premise in theprincipal Allied countries, to show a profounderwisdom and a greater magnanimity than theirpredecessors.

I do not intend to enter here into details, orto attempt a revision of the Treaty clause byclause. I limit myself to three great changeswhich are necessary for the economic life ofEurope, relating to Reparation, to Coal andIron, and to Tariffs.

Reparation .—If the sum demanded for Re-paration is less than what the Allies are entitledto on a strict interpretation of their engage-ments, it is unnecessary to particularise theitems it represents or to hear arguments aboutits compilation. I suggest, therefore, thefollowing settlement:

(1) The amount of the payment to be madeby Germany in respect of Reparation and thecosts of the Armies of Occupation might befixed at £2000 million.

(2) The surrender of merchant ships andsubmarine cables under the Treaty, of warmaterial under the Armistice, of State propertyin ceded territory, of claims against such terri-tory in respect of public debt, and of Germany’ sclaims against her former Allies, should bereckoned as worth the lump sum of £500million, without any attempt being made toevaluate them item by item.

(3) The balance of ^1500 million should notcarry interest pending its repayment, and should