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The Economic Consequences of the Peace by John Maynard Keynes
page 44 of 243 (18%)
evacuated and made free. The Allied Governments feel that no doubt
ought to be allowed to exist as to what this provision implies. By it
they understand that compensation will be made by Germany for all damage
done to the civilian population of the Allies and to their property by
the aggression of Germany by land, by sea, and from the air."[7]

The nature of the Contract between Germany and the Allies resulting from
this exchange of documents is plain and unequivocal. The terms of the
peace are to be in accordance with the Addresses of the President, and
the purpose of the Peace Conference is "to discuss the details of their
application." The circumstances of the Contract were of an unusually
solemn and binding character; for one of the conditions of it was that
Germany should agree to Armistice Terms which were to be such as would
leave her helpless. Germany having rendered herself helpless in reliance
on the Contract, the honor of the Allies was peculiarly involved in
fulfilling their part and, if there were ambiguities, in not using their
position to take advantage of them.

What, then, was the substance of this Contract to which the Allies had
bound themselves? An examination of the documents shows that, although a
large part of the Addresses is concerned with spirit, purpose, and
intention, and not with concrete solutions, and that many questions
requiring a settlement in the Peace Treaty are not touched on,
nevertheless, there are certain questions which they settle definitely.
It is true that within somewhat wide limits the Allies still had a free
hand. Further, it is difficult to apply on a contractual basis those
passages which deal with spirit, purpose, and intention;--every man must
judge for himself whether, in view of them, deception or hypocrisy has
been practised. But there remain, as will be seen below, certain
important issues on which the Contract is unequivocal.
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