The Government announced in the Board of Trade Journal last
week that they would not exercise their right, under a clause of the Peace Treaty, to seize the property of German subjects in this country " in the case of voluntary default by Germany." The announcement was somewhat obscure and has given rise to much unfavourable comment, especially in the French Press, which is unfortunately obsessed by the idea that Mr. Lloyd George wants to make things too easy for the Germans. But the matter is really very simple when it is explained. All that the Government meant to say was that the property brought by German subjects into Great Britain since the Peace Treaty was ratified and trade resumed would not be confiscated for any violation of the treaty by the German Government. It is clear that German merchants would be slow to deposit money in British banks or to sell goods to us on credit if their property might be seized at any moment. The announcement will give confidence to the traders in both countries. It has no political significance, for the German Government would not be restrained from breaking their word by the fear lest German merchants might sustain losses.
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