Note 25 — Chapter II · THE OLD ECONOMY AND THE POST-WAR STATE

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.”’