elonging
at the date of the coming into force of the present Treaty to German
nationals, or companies controlled by them," within the former German
colonies.[16] This wholesale expropriation of private property is to
take place without the Allies affording any compensation to the
individuals expropriated, and the proceeds will be employed, first, to
meet private debts due to Allied nationals from any German nationals,
and second, to meet claims due from Austrian, Hungarian, Bulgarian, or
Turkish nationals. Any balance may either be returned by the liquidating
Power direct to Germany, or retained by them. If retained, the proceeds
must be transferred to the Reparation Commission for Germany's credit in
the Reparation account.[17]

In short, not only are German sovereignty and German influence
extirpated from the whole of her former oversea possessions, but the
persons and property of her nationals resident or owning property in
those parts are deprived of legal status and legal security.

(3) The provisions just outlined in regard to the private property of
Germans in the ex-German colonies apply equally to private German
property in Alsace-Lorraine, except in so far as the French Government
may choose to grant exceptions.[18] This is of much greater practical
importance than the similar expropriation overseas because of the far
higher value of the property involved and the closer interconnection,
resulting from the great development of the mineral wealth of these
provinces since 1871, of German economic interests there with those in
Germany itself. Alsace-Lorraine has been part of the German Empire for
nearly fifty years--a considerable majority of its population is German
speaking--and it has been the scene of some of Germany's most important
economic enterprises. Nevertheless, the property of those Germans who
reside there, or who have invested in its industries, is now entirely at
the disposal of the French Government without compensation, except in so
far as the German Government itself may choose to afford it. The French
Government is entitled to expropriate without compensation the personal
property of private German citizens and German companies resident or
situated within Alsace-Lorraine, the proceeds being credited in part
satisfaction of various French claims. The severity of this provision is
only mitigated to the extent that the French Government may expressly
permit German nationals to continue to reside,