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see part of the world die-as it is showing to its credit to-day that it is not-some system of world regulation of supply and distribution must be instituted. The foundations of such a system have been laid. Plans for its development are in being. It will involve the association of the whole world in the League, but that is a condition likely soon to be fulfilled. A body that can regulate supply for the general welfare, and at the same time if necessity arise cut off supply altogether as a means of concerted pressure, should have small need to rely on purely military sanctions.

There is indeed one further objection to meet, but it hardly needs serious refutation. The League, it is suggested, controlled by the representatives of capitalist governments, may become an omnipotent engine of reaction. The answer to that criticism is clear. The League will be what the nations composing it make it. And the nations constituting the Council of the League with hardly an exception enjoy a thoroughly democratic franchise. If they choose to elect capitalists to represent them, whom have they but themselves to thank for what comes of it? Criticism of that order involves the assumption that it is the worst in the present that will determine the future. The League of Nations is built on the faith that it is out of the best of to-day that to-morrow will be shaped.

THE GERMAN TREATY

1.-THE LEAGUE OF NATIONS.

Covenant of League to be accepted in full.

2.-BOUNDARIES OF GERMANY.

German frontiers to be redrawn on lines required by cession of territory to France, Poland, Belgium, and (if so determined by plebiscite) to Denmark.

3. THE NEW EUROPE.

(a) BELGIUM.

Small areas round Moresnet, Eupen, and Montmédy to be acquired from Germany, with right in two latter cases of protest to League of Nations. Treaties of 1839 to be abrogated.

(b) LUXEMBURG.

To be withdrawn from German Zollverein.

(c) LEFT BANK OF RHINE.

To be completely demilitarised.

(d) SAAR VALLEY.

Certain defined area, with mines therein contained, to be transferred to France in compensation for loss of coal supply from Northern France and in part payment of reparation under other heads. Government by Commission of five members, three appointed by League of Nations, one by inhabitants, and one by France. Population to declare by plebiscite after fifteen years in favour of union with Germany, union with France, or continuance of status quo. In event of union with, Germany, mines to be repurchased by Germany from France.

(e) ALSACE-LORRAINE.

To be transferred wholesale to France free of war debts.

(f) GERMAN-AUSTRIA.

Complete independence to be recognised by Germany, as inalienable without consent of Council of League of Nations.

(g) CZECHO-SLOVAKIA.

Germany to recognise complete independence and to accept frontiers as they may subsequently be determined.

(h) POLAND.

Germany to cede most of Posen, and West Prussia. Future of Upper Silesia to be determined by plebiscite. (j) EAST PRUSSIA.

To be severed from rest of Germany. Southern and eastern frontiers to be fixed by plebiscite. Reciprocal freedom of communication to north and south for Poles across German territory, and to east and west for Germans across Polish territory. District about Mendel to be ceded to Associated Powers for subsequent disposition.

(k) DANTZIG.

To be Free City under guarantee of League of Nations within Polish Customs Union.

(1) DENMARK.

Self-determination by plebiscite for Northern Schleswig and portions of Central Schleswig.

(m) HELIGOLAND.

To be defortified, and kept unfortified, by Germany. (n) RUSSIA.

Germany to recognise full independence of all territories included in former Russian Empire, to accept annulment of Brest-Litovsk Treaty and other agreements concluded since November, 1917, and to admit right of Russia to restitution and reparation on principles embodied in present Treaty.

4.-EXTRA-EUROPEAN TERRITORIES.

(a) GENERAL.

Germany to renounce all rights in her own and her Allies' territories in favour of Associated Powers.

(b) CHINA.

Germany to renounce in favour of China all claim to further payments of Boxer Indemnity and all rights and concessions in Chinese territory other than Kiao-Chau.

(c) SHANTUNG.

Germany to renounce in favour of Japan all rights as to Kiao-Chau and as to mines, railroads, and cables in Shantung.

(d) SIAM, LIBERIA AND MOROCCO.

Germany to renounce all rights.

(e) EGYPT.

Germany to recognise British Protectorate declared in December, 1914.

(f) TURKEY AND BULGARIA.

Germany to accept decisions of Associated Powers with regard to all rights and property of her nationals in these countries.

5.-NAVAL, MILITARY AND AIR.

(a) GENERAL.

Germany to be disarmed in accordance with decisions already announced.

(b) MILITARY.

Army to be restricted by March, 1920, to 100,000 men recruited voluntarily on basis of twelve years' service. No General Staff. Production, type, and maintenance of armaments to conform to prescribed limitations. Belt of 50 kilometres on East Bank of Rhine to be demilitarised.

(c) NAVAL.

Navy to be limited to six battleships, six light cruisers, twelve destroyers, and twelve torpedo-boats, and personnel of 15,000, all volunteers. All other vessels to be surrendered. No submarines to be built. No fortifications in Baltic. Fourteen submarine cables to be surrendered.

(d) AIR.

No military aeroplanes or dirigibles to be retained or constructed. No aircraft of any kind to be manufactured for six months.

6.-PRISONERS OF WAR.

Repatriation to be carried out by Commission of representatives of Allies and of German Government.

7.-RESPONSIBILITIES.

(a) WILHELM II.

Kaiser's surrender to be requested from Dutch Government with a view to trial by Tribunal of five Judges, one from each of five Greater Allied Powers.

(b) OTHER OFFENDERS.

Persons accused of violation of laws and customs of war to be tried by special military tribunals.

8.-REPARATION AND RESTITUTION.

(a) MONEY PAYMENTS.

Germany to admit responsibility for all damage falling under ten specified heads, her total obligation being determined and notified not later than May 1, 1921, by an Inter-Allied Commission. Liquidation to extend over thirty years, and to be payable on account in instalments of

(1) £1,000,000,000 by May, 1921.
(2) £2,000,000,000 by 1926; and
(3) £2,000,000,000 after 1926.

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