In particular, France would be a loser on paper (on paper only, for she will never secure the actual fulfilment of her present claims), and an escape from her embarrassments must be shown her in some other direction.

I proceed, therefore, to proposals, first, for the adjustment of the claims of America and the Allies amongst themselves; and second, for the provision of sufficient credit to enable Europe to re-create her stock of circulating capital.
2.

_The Settlement of Inter-Ally Indebtedness_ In proposing a modification of the Reparation terms, I have considered them so far only in relation to Germany.

But fairness requires that so great a reduction in the amount should be accompanied by a readjustment of its apportionment between the Allies themselves, The professions which our statesmen made on every platform during the war, as well as other considerations, surely require that the areas damaged by the enemy's invasion should receive a priority of compensation.

While this was one of the ultimate objects for which we said we were fighting, we never included the recovery of separation allowances amongst our war aims.