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nydus/The Economic Consequences of the PeacePublic

John Maynard Keynes, a former British Treasury representative at the Paris Peace Conference, outlines his objections to the economic policies established by the Treaty of Versailles. He argues that the terms of the peace agreement threaten the stability of the European economic organization and risk further damaging a system already weakened by war.

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Table of Contents

Reparation

virtuosity in draftsmanship, which does no one any harm, and which probably seemed much more important at the time than it ever will again between now and Judgment Day. For substance we must turn to Annex I.

A great part of Annex I. is in strict conformity with the pre-Armistice conditions, or, at any rate, does not strain them beyond what is fairly arguable. Paragraph 1 claims damage done for injury to the persons of civilians, or, in the case of death, to their dependents, as a direct consequence of acts of war; Paragraph 2, for acts of cruelty, violence, or maltreatment on the part of the enemy towards civilian victims; Paragraph 3, for enemy acts injurious to health or capacity to work or to honor towards civilians in occupied or invaded territory; Paragraph 8, for forced labor exacted by the enemy from civilians; Paragraph 9, for damage done to property "with the exception of naval and military works or materials" as a direct consequence of hostilities; and Paragraph 10, for fines and levies imposed by the enemy upon the civilian population. All these demands are just and in conformity with the Allies' rights.

Paragraph 4, which claims for "damage caused by any kind of maltreatment of prisoners of war," is more doubtful on the strict letter, but may be justifiable under the Hague Convention and involves a very small sum.

In Paragraphs 5, 6, and 7, however, an issue of immensely greater significance is involved. These paragraphs assert a claim for the amount of the Separation and similar Allowances granted during the war by the Allied Governments to the families of mobilized persons, and for the amount of the pensions and compensations in respect of the injury or death of combatants payable by these Governments now and hereafter. Financially this adds to the Bill, as we shall see below, a very large amount, indeed about twice as

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