by item.

(3) The balance of $7,500,000,000 should not carry interest pending its
repayment, and should be paid by Germany in thirty annual instalments of
$250,000,000, beginning in 1923.

(4) The Reparation Commission should be dissolved, or, if any duties
remain for it to perform, it should become an appanage of the League of
Nations and should include representatives of Germany and of the neutral
States.

(5) Germany would be left to meet the annual instalments in such manner
as she might see fit, any complaint against her for non-fulfilment of
her obligations being lodged with the League of Nations. That is to say,
there would be no further expropriation of German private property
abroad, except so far as is required to meet private German obligations
out of the proceeds of such property already liquidated or in the hands
of Public Trustees and Enemy Property Custodians in the Allied countries
and in the United States; and, in particular, Article 260 (which
provides for the expropriation of German interests in public utility
enterprises) would be abrogated.

(6) No attempt should be made to extract Reparation payments from
Austria.

_Coal and Iron_.--(1) The Allies' options on coal under Annex V. should
be abandoned, but Germany's obligation to make good France's loss of
coal through the destruction of her mines should remain. That is to say,
Germany should undertake "to deliver to France annually for a period not
exceeding ten years an amount of coal equal to the difference between
the annual production before the war of the coal mines of the Nord and
Pas de Calais, destroyed as a result of the war, and the production of
the mines of the same area during the years in question; such delivery
not to exceed twenty million tons in any one year of the first five
years, and eight million tons in any one year of the succeeding five
years." This obligation should lapse, nevertheless, in the event of the
coal districts of Upper Silesia being taken from Germany in the final
settlement consequent on the plebiscite.

(2) The arrangement as to the Saar should hold good, except that, on the
one hand, Germany should receive no credit for the mines, and, on the
other, should receive back both the mines and the territory without
payment and unconditionally after ten years. But this should be
conditional on France's entering into an agreement for the same period
to supply Germany from Lorraine with at least 50 per cent of the