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greater sum, namely 1-08 milliard gold marks(£54,000,000 gold) per annum ; but, inasmuch, as shewill be accorded a priority on Germany 's availableresources, and as the total charge is within Germany 'scapacity, she may reasonably expect to be paid.

My proposal provides for the complete restorationof the devastated provinces at a fair valuation of theactual damage done, and it abandons other rivalclaims which stand in the way of the priority of thisparamount claim. But apart from this, about whichopinions will differ, and apart from the increasedlikelihood which it affords of really getting payment,France will actually receive a larger sum than if theletter of the existing agreements is adhered to allround.

Belgium is entitled at present to 8 per cent of thereceipts, which under the London Settlement wouldamount to 280 million gold marks per annum onassumption (a) and 368 million on assumption (b).Under the new proposal she will receive 180 milliongold marks per annum and will gain in certaintywhat she loses in possible receipts. The satisfactionof her existing priority should be adjusted by mutualagreement between herself and France.

Italy would gain immensely. She is entitled to10 per cent of the receipts under the London Settle-ment (together with some claims on problematicalreceipts from Austria and Bulgaria ) ; that is to say,326 million gold marks per annum on assumption

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