same economic argument which adds the Saar fields to France
allots Upper Silesia to Germany. For whereas the Silesian mines are
essential to the economic life of Germany, Poland does not need them. Of
Poland's pre-war annual demand of 10,500,000 tons, 6,800,000 tons were
supplied by the indisputably Polish districts adjacent to Upper Silesia.
1,500,000 tons from Upper Silesia (out of a total Upper Silesian output
of 43,500,000 tons), and the balance from what is now Czecho-Slovakia.
Even without any supply from Upper Silesia and Czecho-Slovakia, Poland
could probably meet her requirements by the fuller exploitation of her
own coalfields which are not yet scientifically developed, or from the
deposits of Western Galicia which are now to be annexed to her.

[42] France is also to receive annually for three years 35,000
tons of benzol, 60,000 tons of coal tar, and 30,000 tons of sulphate of
ammonia.

[43] The Reparation Commission is authorized under the Treaty
(Part VIII Annex V. para. 10) "to postpone or to cancel deliveries" if
they consider "that the full exercise of the foregoing options would
interfere unduly with the industrial requirements of Germany." In the
event of such postponements or cancellations "the coal to replace coal
from destroyed mines shall receive priority over other deliveries." This
concluding clause is of the greatest importance, if, as will be seen, it
is physically impossible for Germany to furnish the full 45,000,000; for
it means that France will receive 20,000,000 tons before Italy receives
anything. The Reparation Commission has no discretion to modify this.
The Italian Press has not failed to notice the significance of the
provision, and alleges that this clause was inserted during the absence
of the Italian representatives from Paris (_Corriere della Sera_, July
19, 1919).

[44] It follows that the current rate of production in Germany
has sunk to about 60 per cent of that of 1913. The effect on reserves
has naturally been disastrous, and the prospects for the coming winter
are dangerous.

[45] This assumes a loss of output of 15 per cent as compared
with the estimate of 30 per cent quoted above.

[46] This supposes a loss of 23 per cent of Germany's
industrial undertaking and a diminution of 13 per cent in her other
requirements.

[47] The reader must he reminded in particular that the above
calculations take no account of the German production of lignite, which
yielded in 1913 1