The Economic Consequences of the PeaceKeynes, John Maynard
History
The Economic Consequences of the Peace
Keynes, John Maynard
Economic history -- 1918-1945; Treaty of Versailles (1919 June 28); World War, 1914-1918 -- Economic aspects
(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, in which case the above
provision is not applicable. Government, State, and Municipal property,
on the other hand, is to be ceded to France without any credit being
given for it. This includes the railway system of the two provinces,
together with its rolling-stock.[19] But while the property is taken
over, liabilities contracted in respect of it in the form of public
debts of any kind remain the liability of Germany.[20] The provinces
also return to French sovereignty free and quit of their share of German
war or pre-war dead-weight debt; nor does Germany receive a credit on
this account in respect of Reparation.
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