Germany is to be allowed a discount for payment in
advance, and is to issue negotiable bonds to the Allies forthwith for the first two annuities. If she fails to pay, the Allies propose to take over the German Customs revenue, and in case of need to administer the Customs service, after the model of the Turkish tebt Commission. If Germany does not pay and will not riearm, the Allies are prepared to prolong their occupation of the Rhineland, to occupy the Riihr valley with Essen, to seize the revenues of the Rhineland, and to keep Germany excluded from the League of Nations. In regard to disarmament, the Allies decided that Germany must disband the military forces known as " Civic Guards " and " Security Police " and hand over all their guns and rifles by June next. She must complete her deliveries of heavy guns and war material by the end of this
month, and must disarm her reserve ships by the end of April. The German Government make a grave tactical error in attempt- ing to deceive the Allies in this matter of disarmament. Until Germany is really disarmed the Allies are compelled to remain on the alert.
