to the war of an official as well as of a private character, and to the formal charges made in the Reichstag, especially by MM. Erzberger and Noske, will suffice to throw full light upon the German colonial administration, upon the cruel methods of repression, the arbitrary requisition, and the various forms of forced labour which resulted in the depopulation of vast expanses of territory in German East Africa and the Cameroons, not to mention the tragic fate of the Hereros in South West Africa, which is well known to all.

Germany's dereliction in the sphere of colonial civilisation has been revealed too completely to admit of the Allied and Associated Powers consenting to make a second experiment and of their assuming the responsibility of again abandoning thirteen or fourteen millions of natives to a fate from which the war has delivered them.

Moreover, the Allied and Associated Powers felt themselves compelled to safeguard their own security and the Peace of the world against a military imperialism, which sought to establish bases whence it could pursue a policy of interference and intimidation against the other Powers.

II.

The Allied and Associated Powers considered that the loss of her Colonies would not hinder Germany's normal economic development.

The trade of the German Colonies has never represented more than a very small fraction of Germany's total trade in 1913 one-half of one per cent. of her imports and one-half of one per cent. of her exports. Of the total volume imported by Germany of such products as cotton, cocoa, rubber, palm kernels, tobacco, jute and copra, only 3 per cent. came from her Colonies. It is obvious that the financial, commercial and industrial rehabilitation of Germany must depend on other factors.

For climatic reasons and other natural causes the German Colonies are incapable of accommodating more than a very small proportion of the excess German emigration. The small number of colonists resident there before the war is conclusive evidence in this respect.

III.

The Allied and Associated Powers have drawn up, in the matter of the cession of the German Colonies, the following methods of procedure, which are in conformity with the rules of International Law and Equity:

(a) The Allied and Associated Powers are applying to the German Colonies the general principle in accordance with which

the transfer of sovereignty involves the transfer under the same conditions to the State to which the surrender is made of the immovable and movable property of the ceding State.

They see no reason for consenting in the case of the Colonies to any departure from that principle which may have been admitted as an exceptional measure in the case of territory in Europe.

(b) They are of opinion that the Colonies should not bear any portion of the German debt, nor remain under any obligation to refund to Germany the expenses incurred by the Imperial administration of the Protectorate. In fact, they consider that it I would be unjust to burden the natives with expenditure which appears to have been incurred in Germany's own interest, and that it would be no less unjust to make this responsibility rest upon the Mandatory Powers which, in so far as they may be appointed Trustees by the League of Nations, will derive no benefit from such Trusteeship.

IV.

The Allied and Associated Powers considered that it would be necessary in the interest of the natives, as well as in that of general peace, to restrict the influence which Germany might seek to exert over her former Colonies and over the territories of the Allied and Associated Powers.

(a) They are obliged for the reasons of security already mentioned to reserve to themselves full liberty of action in determining the conditions on which Germans will be allowed to establish themselves in the territories of the former German Colonies. Moreover, the control to be exercised by the League of Nations will provide all the necessary guarantees.

(b) They require Germany to subscribe to the Conventions which they may conclude for the control of the traffic in Arms and Spirits and for the modification of the General Acts of Berlin and Brussels. They do not think that Germany has any ground to consider herself humiliated or injured because she is required to give her consent in advance to measures accepted by all the great commercial Powers in regard to questions of such great importance to the welfare of the native populations and to the maintenance of civilisation and peace.

V.

The Allied and Associated Powers consider that all the possessions and property of the German State in the territory of Kiaochow must be treated on the same footing as State property in all the other German overseas possessions, and be transferred without compensation. In this connection they recall the fact that Kiaochow, which was unjustly torn from China, has been (B 17223)Q

8 2

used by Germany as a military base in pursuance of a policy which in its various manifestations has constituted a perpetual menace to the peace of the Far East. In these circumstances they see no reason why Germany should be compensated for the loss of works and establishments and in general for public property which in the hand of this Power have for the most part been used merely as a means of carrying out its policy of aggression.

In so far as concerns the railway and the mines that go with it, referred to in Article 156, paragraph 2, the Allied and Associated Powers hold that these should be considered as public property. They would, however, be prepared, in the event of Germany adducing proof to the contrary, to apply to such private rights as German nationals may be able to establish in the matter, the general principles laid down in the Conditions of Peace in respect of compensation of this character.

VI.

The Allied and Associated Powers are anxious that no misunderstanding should exist with regard to the disposition of the property of German missions in territory belonging to them or of which the government is entrusted to them in accordance with the Treaty. They have, therefore, explicitly stated that the property of these missions will be handed over to boards of trustees appointed by or approved by the Governments and composed of persons holding the faith of the mission whose property is involved.

PART V.

MILITARY, NAVAL AND AIR CLAUSES.

SECTION I.

MILITARY CLAUSES.

I.

The Allied and Associated Powers wish to make it clear that their requirements in regard to German armaments were not made solely with the object of rendering it impossible for Germany to resume her policy of military aggression. They are also the first steps towards that general reduction and limitation of armaments which they seek to bring about as one of the most fruitful preventives of war, and which it will be one of the first duties of the League of Nations to promote.

II.

They must point out, however, that the colossal growth in armaments of the last few decades was forced upon the nations of Europe by Germany. As Germany increased her power, her neighbours had to follow suit unless they were to become impotent to resist German dictation or the German sword. It is therefore right, as it is necessary, that the process of limitation of armaments should begin with the nation which has been responsible for their expansion. It is not until the aggressor has led the way that the attacked can safely afford to follow suit.

III.

The Allied and Associated Powers cannot agree to any altera-" tion in principle of the conditions laid down in Articles 159-180, 203-208 and 211-213 of the Treaty.

Germany must consent unconditionally to disarm in advance of the Allied and Associated Powers; she must agree to immediate abolition of universal military service; a definite organisation and scale of armament must be enforced. It is essential that she should be subjected to special control as regards the reduction of her armies and armaments, the dismantling of her fortifications, and the reduction, conversion or destruction of her military establishments.

IV.

Whilst the Allied and Associated Powers regard the strict maintenance of these principles as a sacred duty and refuse in any way to depart from them, they are nevertheless willing in the interests of general peace and the welfare of the German people to admit the following modifications of the Military Clauses, Articles 159-180 of the Treaty :

(a) Germany will be allowed to reduce her Army more gradually than at present stipulated, i.e., to a maximum of 200,000 men within three months; at the end of that three months and every subsequent three months a Conference of Military experts of the Allied and Associated Powers shall fix the strength of the German Army for the coming three months, the object being to reduce the German Army to the 100,000 men stipulated in the Treaty as soon as possible, and in any case by the expiration of the Law of the Reichswehr, i.e., by March 31st, 1920.

(b) The number of formations, officers or persons in the position of officers and civilian personnel shall be in the same ratio to the total effectives laid down in (a) above as that laid down in the Treaty.

Similarly, the number of guns, machine guns, trench mortars, rifles, and the amount of ammunition and equipment shall bear

the same ratio to the total amount allowed in (a) above as that laid down in the Treaty.

(c) No deviation from the organisation in armament laid down in the present Treaty can be permitted until Germany is admitted to the League of Nations, which may then agree to such modifications as seem desirable.

(d) All the remaining German war material shall be handed over in the period fixed by the Treaty.

The periods laid down in the Treaty for the demolition of fortifications will be modified as follows:

"All fortified works, fortresses and land forts situated in German territory west of a line traced 50 kilometres east of the Rhine shall be disarmed and dismantled.

"Those fortresses which are situated in territory not occupied by the Allied Armies shall be disarmed in a period of 2 months, and dismantled in a period of 6 months.

"Those which are situated in territory occupied by the Allied Armies shall be disarmed and dismantled within the time limits which shall be fixed by the Allied High Command; the necessary labour being furnished by the German Government."

V.

With the amendments and modifications enumerated in paragraph IV above, the Military Clauses (Articles 159-180) and those affecting the carrying out of the terms therein laid down (Articles 203-208 and 211-213) are to be maintained.

SECTION II.

NAVAL CLAUSES.

The conditions and proposals of the German Delegates relative to the Naval Clauses cannot be entertained. All these Articles have been carefully framed and must be accepted unconditionally. They are based on the desire for a general limitation of the armaments of all nations and at the same time leave to Germany the requisite force for self-protection and police duties.

No negotiations are necessary with regard to this portion of the Treaty, prior to its signature. All details can be settled by the Naval Commission to be appointed subsequently in accordance with Section IV of Part V.

There are no financial measures contemplated by the Allied and Associated Powers in connection with the surrender of any of the warships mentioned in the draft Treaty; they are required to be handed over unconditionally.