) 4
A mandate to that effect will be issued to the Inter-Allied High Commission
of the Rhineland Territories to secure, subject to its own instructions, the
exploitation of the forests.
“(¢)' In the event of the deliveries in kind demanded of Germany (raw ma-
terials, or building materials, or materials for business purposes, nitrogen,
etc.) not being carried out within the period laid down in the protocols con-
taining the orders, requ’sitions may be carried out®*to the extent of the
deficiency of the deliveries under the orders and subject to the control of the
Inter-Allied High Commission of the Rhineland Territories. These requisi-
tions may take place either upon the territories under military occupation or
in the Ruhr.
SEIZURE OF PLEDGES
Since, however, the three years which have just elapsed prove that it is
impossible to rely upon Germany to execute the engagements which she has
undertaken, the French Government looks upon the seizure of pledges as
indispensable, -and considers that the realization of the secur;ties mentionsd
below will not exceed Germany’s capacity to pay and is not calculated to
hamper the restoration of her finances.
These pledges will be taken (1) with a view to assuring the execution of
the condit'ons of the meratorium alike as regards the reorganization of Ger-
man finance and as regards the limited payments contemplated during that
period; (2) with a view to guaranteeing to the Allied Powers the prolongation
and extension of these payments on the expiration of the moratorium if Ger-
many has not by that period taken the steps necessary for the normal discharge
of her debt.
If loans on a sufficiently important scale are contracted hy Germany during
the moratorium and placed at the disposal of the Reparation Commission Lo
redeem the capital of the German debt, the project might be entertained of
leaving at the disposal of the German Government the cash vielded by the
pledges and either a part of the yield from the deliveries in kind or their
equivalent corresponding with the amount of the loans.
But the French Government considers that all useful medsures must be
taken to assure the immediate productivity of the pledges, the seizure of which
it contemplates, and to secure the working of the organization to be created to
the extent rendered necessary by the circumstances.
The program elaborated entails the seizure of certain definite pledges. The
French Government, however, has drawn up this program in such a way as to
avoid, as far as possible, any further military occupation, excepting in the
event of Germany failing strictly to conform with all the obligntions when the
penalties mentioned in the section following will automatically come into force.
The Allied Governments will, as regards that contingency, assume towards one
another a binding engagement either to apply these penalties by common action
or to raise no objection to their isolated application hy one of them.
The French Government is, moreover, persuaded that if its allies accept this
program and collaborate with it in imposing it upon the German Government,
its application could meet with no serious difficulty, and that any movement of
troops upon unoccupied territories would be rendered superfluous.
PLEDGES DESIGNED TO SECURE CONCURRENTLY CASH PAYMENT AND DELIVERIES IN
KIND
{@) A levy of foreign securities on the basis of German exports coming from
territories actually occupied and from the basin of the Ruhr. It would be the
aim of this levy to assure the Allies the means on the one hand of collecting con-
siderable sums in cash; on the other of controlling, with an accuracy which the
guaranties committee has not been able hitherto to attain in Berlin, the con-
dition governing the issue of licenses and. ahove all, the correctness of the pay-
ments which must be made by the exporters.
It might be realized through the intermediary of the commission of Bad Ems
for the territories of the left bank and for the Ruhr Basin, either by the exten-
sion to that basin of the authority of the commission or by the creation of an
analogous commission at Essen, to which the exporters, in accordance with a de-
cree to be issued by the Inter-Allied High Commission of the Rhineland Terri-
tories would have to apply to secure their export licenses.