I

THE TREATY OF PEACE

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national loan are much the same. The coun-tries in a position to lend assistance, the neutrals,the United Kingdom , and, for the greaterportion of the sum required, the United States ,must provide foreign purchasing credits for allthe belligerent countries of continental Europe,allied and ex-enemy alike. The aggregate sumrequired might not be so large as is sometimessupposed. Much might be done, perhaps, witha fund of £200,000,000 in the first instance.This sum, even if a precedent of a different kindhad been established by the cancellation ofInter-Ally War Debt, should be lent and shouldbe borrowed with the unequivocal intention ofits being repaid in full. With this object inview, the security for the loan should be the bestobtainable, and the arrangements for its ulti-mate repayment as complete as possible. Inparticular, it should rank, both for payment ofinterest and discharge of capital, in front of allReparation claims, all Inter-Ally War Debt,all internal war loans, and all other Govern-ment indebtedness of any other kind. Thoseborrowing countries who will be entitled toReparation payments should be required topledge all such receipts to repayment of thenew loan. And all the borrowing countriesshould be required to place their customs dutieson a gold basis and to pledge such receipts toits service.

Expenditure out of the loan should be sub-ject to general, but not detailed, supervision bythe lending countries.