the allied and
associated Powers.

III.--FINANCIAL AND ECONOMIC CLAUSES

The principle being recognized that Germany alone is responsible for
the War which she willed and which she imposed on the rest of the
world, Germany is bound to give complete and full reparation within
the limits specified by Art. 232. The amount of the damages for which
reparation is due will be fixed by the Commission of Reparations,
consisting of the representatives of the winning countries.

The coal fields of the Saar are to be handed over, in entire and
absolute ownership, free of all liens and obligations, to France, in
compensation for the destruction of the coal mines in the north of
France. Before the War, in 1913, the output of the Saar basin amounted
to 17,000,000 tons. The Saar is incorporated in the French douane
system and after fifteen years will be submitted to a plebiscite.

Germany may not charge heavier duties on imports from allied countries
than on those from any other country. This treatment of the most
favoured nation to be extended to all allied and associated States
does not imply the obligation of reciprocity (Art. 264). A similar
limitation is placed on exports, on which no special duty may be
levied.

Exports from Alsace and Lorraine into Germany to be exempt from duty,
without right of reciprocity (Art. 268).

Germany delivers to the Allies all the steamers of her mercantile
fleet of over I,600 tons, half of those between 1,000 and I,600 tons,
and one-fourth of her fishing vessels. Moreover, she binds herself to
build at the request of the Allies every year, and for a period of
five years, 200,000 tons of shipping, as directed by the Allies, and
the value of the new constructions will be credited to her by the
Commission of Reparations (Part viii, 3).

Besides giving up all her colonies, Germany surrenders all her rights
and claims on her possessions beyond the seas (Art. 119), and all
the contracts and conventions in favour of German subjects for the
construction and exploiting of public works, which will be considered
as part payment of the reparations due. The private property of
Germans in the colonies, as also the right of Germans to live and
work there, come under the free jurisdiction of the victorious States
occupying the colonies, and which reserve unto themselves the right to
confiscate and liquidate all property and claims belonging to Germans
(Art. 121 and 297).

The private property of German