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
The cumulative effect of (_a_), (_b_), and (_c_) (as well as of certain
other minor provisions on which I have not thought it necessary to
enlarge) is to deprive Germany (or rather to empower the Allies so to
deprive her at their will--it is not yet accomplished) of everything she
possesses outside her own frontiers as laid down in the Treaty. Not only
are her oversea investments taken and her connections destroyed, but the
same process of extirpation is applied in the territories of her former
allies and of her immediate neighbors by land.
(5) Lest by some oversight the above provisions should overlook any
possible contingencies, certain other Articles appear in the Treaty,
which probably do not add very much in practical effect to those already
described, but which deserve brief mention as showing the spirit of
completeness in which the victorious Powers entered upon the economic
subjection of their defeated enemy.
First of all there is a general clause of barrer and renunciation: "In
territory outside her European frontiers as fixed by the present Treaty,
Germany renounces all rights, titles and privileges whatever in or over
territory which belonged to her or to her allies, and all rights, titles
and privileges whatever their origin which she held as against the
Allied and Associated Powers...."[29]
There follow certain more particular provisions. Germany renounces all
rights and privileges she may have acquired in China.[30] There are
similar provisions for Siam,[31] for Liberia,[32] for Morocco,[33] and
for Egypt.[34] In the case of Egypt not only are special privileges
renounced, but by Article 150 ordinary liberties are withdrawn, the
Egyptian Government being accorded "complete liberty of action in
regulating the status of German nationals and the conditions under which
they may establish themselves in Egypt."
By Article 258 Germany renounces her right to any participation in any
financial or economic organizations of an international character
"operating in any of the Allied or Associated States, or in Austria,
Hungary, Bulgaria or Turkey, or in the dependencies of these States, or
in the former Russian Empire."
Generally speaking, only those pre-war treaties and conventions are
revived which it suits the Allied Governments to revive, and those in
Germany's favor may be allowed to lapse.[35]
It is evident, however, that none of these provisions are of any real
importance, as compared with those described previously. They represent
the logical completion of Germany's outlawry and economic subjection to
the convenience of the Allies; but they do not add substantially to her
effective disabilities.
II
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