GERMANY: German Colonies

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Dr. Hjelmar Schacht, President of the Reichsbank, a leading German financial authority, has a plan for the return to Germany of the ex-German colonies.* He advocates an "international chartered company (like the East India Company) for joint development of Germany's former colonies by Germany, the Allies and the United States."

Said he: "I regard this plan as complimentary to the Dawes reparation plan. The latter is based on the principle that Germany can pay reparations only in so far as the world is willing and able to accept German goods. The world, however, cannot afford to take too great a quantity of these, or else the economic equilibrium of other countries will be disturbed. Hence Germany must be given an economic outlet outside the main commercial markets, if her paying capacity is to be restored.

"Also, Germans must be exported, as well as German goods. Clemenceau said there were 20,000,000 Germans too many; and from the economic standpoint he was quite right. Germany as transformed by the Treaty of Versailles cannot support her 60,000,000 population. . . ."