As regards the nature of control, the experts propose that
the German railways shall be converted into a com- pany with a capital of £750,000,000. Half of the managing board will be nominated by trustees under the Reparation Commission. It is proposed that the Reich shall provide debentures of industrial concerns to the value of £250,000,000, interest at 5 per cent. to be administered by the Reparation Commission's trustees. The revenues from tobacco, alcohol, sugar, beer and customs shall constitute the controlled taxes. A Transfer Committee will be appointed to apply the balances deposited in the Bank of Issue to the payment of reparations in such a way as to prevent serious disturbance of the foreign Exchanges. The experts do not hesitate to reject any system " which would involve directly or indirectly the general control of German revenues and expen- diture." An essential part of the scheme is the issue by Germany of a foreign loan of £40,000,000 in the first year. Finally, the Committee con- veys a grave warning to Germany. It declares that if the scheme is accepted it will lead to lasting peace. " Its rejection by the German Government means the deliberate choice of economic demoralization." The same warning, of course, applies to France and ourselves. * * * *
