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the  establishments  which  were  working  for  the  supplies  ot  the  French  army.
(Annex  5).
If  we  examine  the  hardships  which  France  had  to  overcome  at  that  time
when  the  whole  brunt  of  the  German  armies,  made  one  think  that  the  victory
was  not  certain,  there  is  no  doubt  that  in  such  circumstances  and  as  a  justification ­
  for  its  future  hopes,  the  French  Government  gave  this  assistance  to  the
Roumanian  Government  to  prepare  its  army.
From  the  examination  ol  the  Convention  we  see  that  the  Roumanian  Government ­
  had  to  make  an  advance  of  25  °/ 0  in  cash,  out  of  the  whole  supply,
and  this  sum  was  produced  by  the  English  loan  and  with  the  knowledge  ol
England.
There  is  therefore  no  doubt,  that  although  at  that  time  there  was  no  coordination ­
  of  the  financial  action  ofthe  allies,  nevertheless  the  fact  that  they  consented ­
  that  out  of  a  loan  accorded  to  Roumania,  advances  were  to  be  paid  to  the
French  Government,  for  a  contract  of  supply  of  ammunition,  this  is  a  sure
proof  that  neither  of  the  Governments  doubted  the  decision  that  Roumania
was  to  take  subsequently,  and  that  these  advances  were  real  interallied  war
debts.
A  second  contract  was  entered  on  with  the  French  Government  on
January  18th  1916,  also  for  supplies  of  ammunition  for  a  sum  of  28  million
francs  (Annex  6).
The  conditions  of  payment  were  identical  to  the  first  contract,  and  out
of  the  English  advance,  was  paid  to  the  French  Government,  on  account  ol  both
contracts.
French  francs  23.707.000,  while  the  rest  was  passed  to  the  general
account  of  the  war  debt.
These  contracts  though  carried  out  lor  the  greater  part  the,  war  material
could  not  be  ready  before  our  entering  the  war,  and  their  liquidation  had  to  be
effected  according  to  article  1  of  tiie  military  convention,  based  on  the  treaty  of
alliance  of  Aug.  4,  1916  (An.  7).
Thus  in  this  period  the  financing  of  the  war,  was  effected  by:
(a)  Internal  loans;
(b)  Loans  from  the  future  allies.
(c)  Ry  the  purchase  of  cereals  by  the  English,  an  operation  which  entrusted ­
  to  Roumania,  neutral  at  that  time,  the  corn  bought  by  the  English,  but
not  transported  yet,  on  account  ol  the  blocking  of  the  Dardanelles.