our war aims.  I suggest, therefore, that we should by our acts prove ourselves sincere and trustworthy, and that accordingly Great Britain should waive altogether her claims for cash payment in favor of Belgium, Serbia, and France.  The whole of the payments made by Germany would then be subject to the prior charge of repairing the material injury done to those countries and provinces which suffered actual invasion by the enemy; and I believe that the sum of $7,500,000,000 thus available would be adequate to cover entirely the actual costs of restoration.  Further, it is only by a complete subordination of her own claims for cash compensation that Great Britain can ask with clean hands for a revision of the Treaty and clear her honor from the breach of faith for which she bears the main responsibility, as a result of the policy to which the General Election of 1918 pledged her representatives.

With the Reparation problem thus cleared up it would be possible to bring forward with a better grace and more hope of success two other financial proposals, each of which involves an appeal to the generosity of the United States.

The first is for the entire cancellation of Inter-Ally indebtedness (that is to say, indebtedness between the Governments of the Allied and Associated countries) incurred for the purposes of the war.  This proposal, which has been put forward already in certain quarters, is one which I believe to be absolutely essential to the future prosperity of the world.  It would be an act of far-seeing statesmanship for the United Kingdom and the United States, the two Powers chiefly concerned, to adopt it.  The sums of money which are involved are shown approximately in the following table:—­[161]

-----------------+------------+------------+-----------

+----------
Loans to         | By United  | By United  | By France | Total
|   States   |  Kingdom   |           |
-----------------+------------+------------+-----------+----

------
| Million    | Million    | Million   | Million
| Dollars    | Dollars    | Dollars   | Dollars
|            |            |           |
United Kingdom   |  4,210     |      0     |      0    |  4,210
France           |  2,750     |  2,540     |      0    |  5,200
Italy            |  1,625     |  2,335     |    175    |  4,135
Russia           |    190     |  2,840[162]|    800    |  3,830
Belgium          |    400     |    490[163]|    450    |  1,340
Serbia and       |            |            |           |
Jugo-Slavia    |    100     |    100[163]|    100    |    300
Other Allies     |    175     |    395     |    250    |    820
|  -----     |  -----     |  -----    | ------
Total            |  9,450[164]|  8,700     |  1,775    | 19,925
|            |            |           |
-----------------+------------+------------+-----------+----

------

Thus the total volume of Inter-Ally indebtedness, assuming that loans from one Ally are not set off against loans to another, is nearly $20,000,000,000.  The United States is a lender only.  The United Kingdom has lent about twice as much as she has borrowed.  France has borrowed about three times as much as she has lent.  The other Allies have been borrowers only.