18 JANUARY 1919, Page 2

Let us recall the facts. When the German delegate signed

the armistice it was of course understood that peace- would be made on the basis of Mr. Wilson's fourteen points and the further points he made in later addresses to Congress, together with certain reservations which the Allies added to three points. One of the reservations was as follows :—

"Further, in the conditions of peace laid down in his address to Congress on January 8th, 1918, the President declared that invaded territories must be restored, as well as evacuated and made free. The Allied Governments feel that no doubt ought to be allowed to exist as to what this provision implies. By it they understand that compensation will be made by Germany for all damage done to the civilian population of the Allies and to their property by the aggression of Germany by land, by sea, and from the air."