iron-ore which was carried from Lorraine into Germany proper before the
war, in return for an undertaking from Germany to supply Lorraine with
an amount of coal equal to the whole amount formerly sent to Lorraine
from Germany proper, after allowing for the output of the Saar.

(3) The arrangement as to Upper Silesia should hold good. That is to
say, a plebiscite should be held, and in coming to a final decision
"regard will be paid (by the principal Allied and Associated Powers) to
the wishes of the inhabitants as shown by the vote, and to the
geographical and economic conditions of the locality." But the Allies
should declare that in their judgment "economic conditions" require the
inclusion of the coal districts in Germany unless the wishes of the
inhabitants are decidedly to the contrary.

(4) The Coal Commission already established by the Allies should become
an appanage of the League of Nations, and should be enlarged to include
representatives of Germany and the other States of Central and Eastern
Europe, of the Northern Neutrals, and of Switzerland. Its authority
should be advisory only, but should extend over the distribution of the
coal supplies of Germany, Poland, and the constituent parts of the
former Austro-Hungarian Empire, and of the exportable surplus of the
United Kingdom. All the States represented on the Commission should
undertake to furnish it with the fullest information, and to be guided
by its advice so far as their sovereignty and their vital interests
permit.

_Tariffs_.--A Free Trade Union should be established under the auspices
of the League of Nations of countries undertaking to impose no
protectionist tariffs[160] whatever against the produce of other members
of the Union, Germany, Poland, the new States which formerly composed
the Austro-Hungarian and Turkish Empires, and the Mandated States should
be compelled to adhere to this Union for ten years, after which time
adherence would be voluntary. The adherence of other States would be
voluntary from the outset. But it is to be hoped that the United
Kingdom, at any rate, would become an original member.

* * * * *

By fixing the Reparation payments well within Germany's capacity to pay,
we make possible the renewal of hope and enterprise within her
territory, we avoid the perpetual friction and opportunity of improper
pressure arising out of Treaty clauses which are impossible of
fulfilment, and we rend