Nevertheless, the property of those Germans who reside there, or who have invested in its industries, is now entirely at the disposal of the French Government without compensation, except in so far as the German Government itself may choose to afford it.

The French Government is entitled to expropriate without compensation the personal property of private German citizens and German companies resident or situated within Alsace-Lorraine, the proceeds being credited in part satisfaction of various French claims.

The severity of this provision is only mitigated to the extent that the French Government may expressly permit German nationals to continue to reside, in which case the above provision is not applicable.

Government, State, and Municipal property, on the other hand, is to be ceded to France without any credit being given for it.

This includes the railway system of the two provinces, together with its rolling-stock.[19] But while the property is taken over, liabilities contracted in respect of it in the form of public debts of any kind remain the liability of Germany.[20] The provinces also return to French sovereignty free and quit of their share of German war or pre-war dead-weight debt; nor does Germany receive a credit on this account in respect of Reparation.
(4) The expropriation of German private property is not limited, however, to the ex-German colonies and Alsace-Lorraine.