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3) No recommendations in respect to bringing back exported capital could be made, except that, in the opinion of the Committee, "special terms be offered for subscription to Government [German] loans made in foreign currencies" as an inducement to Germans to reinvest their foreign holdings. This Committee was further of the opinion that, once a permanent financial equilibrium had been established, the return of exported capital would be hastened.
Action. The Reparations Commission approved tentatively the experts' reports. France, Belgium and Britain were expected to approve the report in principle. The attitude of Germany was uncertain, but the general view in Europe was that Germany will accept because of the tremendous benefits the reports will shower upon her, such as:
1) Fixation of taxation at a figure consonant with the burdens being borne by foreign countries.
2) Guarantee of territorial integrity (if France gives up her economic hold on the Ruhr).
3) Harnessing German industrialists to the yoke of reparations payments, which they have hitherto evaded.
4) Stabilization of currency and balancing of budget. France was expected to agree to the "economic evacuation" of the Ruhr, providing that the guarantees contained in the report of No. 1 Committee meet her requirements.
*"Why should the nations concerned with reparations not invite men of the highest authority in finance in their respective countries, men of such prestige, experience, honor, that their agreement upon the amount to be paid and upon a financial plan for working out the payments would be accepted throughout the world as the most authoritative expression obtainable? Governments need not bind themselves in advance to accept the recommendations. . . . I have no doubt that distinguished Americans would be willing to serve on such a commission."
*In December, 1922, the Conference of London fixed the total of Reparations at $33,000,000,000. No. 1 Committee of Experts made no recommendations concerning the total amount of the Reparations bill, nor were they required to; it was presumed, therefore, that the above total still stands. Under the experts' plan, it will take Germany, at a rough estimation, about 17 years to pay off her $33,000,000,000 bill.