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
It has sometimes been argued that the preamble to paragraph 19[76] of
the Armistice Terms, to the effect "that any future claims and demands
of the Allies and the United States of America remain unaffected," wiped
out all precedent conditions, and left the Allies free to make whatever
demands they chose. But it is not possible to maintain that this casual
protective phrase, to which no one at the time attached any particular
importance, did away with all the formal communications which passed
between the President and the German Government as to the basis of the
Terms of Peace during the days preceding the Armistice, abolished the
Fourteen Points, and converted the German acceptance of the Armistice
Terms into unconditional surrender, so far as it affects the Financial
Clauses. It is merely the usual phrase of the draftsman, who, about to
rehearse a list of certain claims, wishes to guard himself from the
implication that such list is exhaustive. In any case, this contention
is disposed of by the Allied reply to the German observations on the
first draft of the Treaty, where it is admitted that the terms of the
Reparation Chapter must be governed by the President's Note of November
5.
Assuming then that the terms of this Note are binding, we are left to
elucidate the precise force of the phrase--"all damage done to the
civilian population of the Allies and to their property by the
aggression of Germany by land, by sea, and from the air." Few sentences
in history have given so much work to the sophists and the lawyers, as
we shall see in the next section of this chapter, as this apparently
simple and unambiguous statement. Some have not scrupled to argue that
it covers the entire cost of the war; for, they point out, the entire
cost of the war has to be met by taxation, and such taxation is
"damaging to the civilian population." They admit that the phrase is
cumbrous, and that it would have been simpler to have said "all loss and
expenditure of whatever description"; and they allow that the apparent
emphasis of damage to the persons and property of _civilians_ is
unfortunate; but errors of draftsmanship should not, in their opinion,
shut off the Allies from the rights inherent in victors.
Public-domain text, read in full here on John Shaqi.
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