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PRIORITY OF PAYMENT.
The Allies maintain theright to ob tain the payment of repatriation, etc., in priority, and the settlement of all other German debts, but they will ap prove of exceptions. Germany must pay the cost of the military occupation of the Rhineland, which is an essential guarantee. Germany cannot be cred ited, with the value of captured war material, but an important concession .will he the recognition of a prior charge upon the German assets of the pay ment for food supplies and raiv mate rial. Germany's pre-war debt will be divided in due proportion between Ger many and the ceded territories, but France cannot be required to assume part of the public debt for Alsace; liorraine. Poland must also be ex empted, and the German colonies which have not paid their way cannot,pos sibly assume a part of the German debt, nor can a mandatory State be re quired to do so. Germany will be com pelled to alienate the greater part fcf her foreign securities, and no longer continue intimately to be involved in Jthe financial or economic life of the Allies or Russia. Owing to Germany's illegal acts, many ofthe Allies are in a state of economic inferiority; therefore certain non-reciprocal conditions in the matter of commercial exchanges have been imposed for a minimum of five years. Reciprocity, however, will be applied whenever possible. The Allies accept a few changes regarding ports and waterways and fail ways-for ex-. ample, free transit through Poland be tween East Prussia and the rest of