This announcement has called forth strong protests from France and from some quarters in this country, to which the British Government has rejoined by a semi-official statement that the concession has been made solely on account of British commercial interests. The incident illustrates the difficulty of waiving even permissive powers under the Treaty, although the exercise of those powers would obviously injure British traders. Moreover, the Reparations (Recovery) Act, passed in March 1921, appears to be inconsistent with the above announcement. [25] A point that seems to have been overlooked is the effect of this Treaty on the arrangements which may follow changes in the political status of, say, Egypt or India or Ireland. If some George Washington of the future were to apply the principles of the Treaty to British property, the effects might be far-reaching. A _Quarterly Review_ critic (April 1920) says of these clauses of the Treaty (particularly Article 297b.):-- 'We are justified in regarding this policy with the utmost apprehension, not only because of its injustice, but also because it is likely to form precedents of a most mischievous character in the future. If, it will be said, the Allied Governments ended their great war for justice and right by confiscating private property and ruining those unfortunate individuals who happened to have investments outside their own country, how can private wealth at home complain if a Labour Government proposes to confiscate private property in any business which it thinks suitable for "nationalisation"? Under another provision the Reparations Commission is actually allowed to demand the surrender of German properties and German enterprises in _neutral_ countries. This will be found in Article 235, which "introduces a quite novel principle in the collection of indemnities."' [26] See quotations in Addendum. [27] Cmd. 280 (1919), p. 15. [28] The dilemma is not, of course, as absolute, as this query would suggest. What I am trying to make perfectly clear here is the _kind_ of problem that faces us rather than the precise degree of its difficulty. My own view is that after much suffering especially to the children, and the reduction during a generation or two, perhaps, of the physical standard of the race, the German population will find a way round the sustenance difficulty. For one thing, France needs German coke quite as badly as Germany needs French ore, and this common need may be made the basis of a bargain. But though Germany may be able to surmount the difficulties created for her by her victors, it is those difficulties which will constitute her grievance, and will present precisely the kind, if not the degree, of injustice here indicated.