ny's coal and iron have been the basis for its commanding
position in industry and commerce. In fact, its development of these
resources has been probably the most vital element in the European
economic situation. The terms of the Peace Treaty in regard to these
commodities have far-reaching consequences, not only for Germany but for
all Europe, and indirectly, for the world.

Germany (Westphalia) outclasses all other European sources in grades of
metallurgical coal, in quantities produced, and in cheapness of
production. Both France and Belgium must continue to be dependent on
this source for important parts of the coking coal for metallurgical
purposes, notwithstanding France's acquisition of the Saar Basin, which
produces mainly non-coking coal, and the development of new reserves in
Belgium. Germany's command of coal is wrecked in several ways. The
French take over full and absolute possession of the coal of the Saar
Basin, though Germany has the right to repurchase it at the end of
fifteen years, in case this territory then elects for union with
Germany. The coal of Upper Silesia, with a production of about 23 per
cent of the total of all German hard coal, is to be ceded to Poland,
subject, however, to plebiscite. Germany undertakes to deliver to France
each year, for not to exceed ten years, an amount of coal equal to the
difference between the annual pre-war production of the French coal
mines destroyed as a result of the war, and the production of the mines
of the same area during the years in question,--such delivery not to
exceed 20,000,000 tons in any one year of the first five, nor 8,000,000
in any one year of the succeeding five years. In addition, Germany
agrees to deliver coal, or its equivalent in coke, as follows: to France
7,000,000 tons annually for ten years; to Belgium 8,000,000 tons
annually for ten years; to Italy an annual quantity rising by annual
increments from 4,500,000 tons in 1919-20 to 8,500,000 tons in each of
the six years 1923-24 to 1928-29; and to Luxemburg, if required, a
quantity of coal equal to the pre-war annual consumption of German coal
in Luxemburg.

The total pre-war coal production of Germany in 1913 was 191,500,000
tons. The diminution of production due to loss of territory in
Alsace-Lorraine, in the Saar Basin, and in Upper Silesia amounts to
about 61,000,000 tons. The further required annual distribution of coal
to France, Italy, Belgium, and Luxemburg amounts to about 40