[The Economic Consequences of the Peace by John Maynard Keynes]@TWC D-Link book
The Economic Consequences of the Peace

CHAPTER IV
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Not precedent, but the verbal professions of the Allies, have rendered it indefensible.[38] (ii.) Upper Silesia, a district without large towns, in which, however, lies one of the major coalfields of Germany with a production of about 23 per cent of the total German output of hard coal, is, subject to a plebiscite,[39] to be ceded to Poland.

Upper Silesia was never part of historic Poland; but its population is mixed Polish, German, and Czecho-Slovakian, the precise proportions of which are disputed.[40] Economically it is intensely German; the industries of Eastern Germany depend upon it for their coal; and its loss would be a destructive blow at the economic structure of the German State.[41] With the loss of the fields of Upper Silesia and the Saar, the coal supplies of Germany are diminished by not far short of one-third.
(iii.) Out of the coal that remains to her, Germany is obliged to make good year by year the estimated loss which France has incurred by the destruction and damage of war in the coalfields of her northern Provinces.

In para.

2 of Annex V.to the Reparation Chapter, "Germany undertakes to deliver to France annually, for a period not exceeding ten years, an amount of coal equal to the difference between the annual production before the war of the coal-mines of the Nord and Pas de Calais, destroyed as a result of the war, and the production of the mines of the same area during the year in question: such delivery not to exceed 20,000,000 tons in any one year of the first five years, and 8,000,000 tons in any one year of the succeeding five years." This is a reasonable provision if it stood by itself, and one which Germany should be able to fulfil if she were left her other resources to do it with.
(iv.) The final provision relating to coal is part of the general scheme of the Reparation Chapter by which the sums due for Reparation are to be partly paid in kind instead of in cash.

As a part of the payment due for Reparation, Germany is to make the following deliveries of coal or equivalent in coke (the deliveries to France being wholly additional to the amounts available by the cession of the Saar or in compensation for destruction in Northern France):-- (i.) To France 7,000,000 tons annually for ten years;[42] (ii.) To Belgium 8,000,000 tons annually for ten years; (iii.) To Italy an annual quantity, rising by annual increments from 4,500,000 tons in 1919-1920 to 8,500,000 tons in each of the six years, 1923-1924 to 1928-1929; (iv.) To Luxemburg, if required, a quantity of coal equal to the pre-war annual consumption of German coal in Luxemburg.
This amounts in all to an annual average of about 25,000,000 tons.
* * * * * These figures have to be examined in relation to Germany's probable output.


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