At the London Conference, on March 1, Dr. Simons, the German foreign
minister, declared that Germany never could pay any such sum,
whose annual instalments were far beyond her total surplus wealth
in the years of her greatest prosperity before the war. He made a
counter-offer of 50,000,000,000 gold marks, less 20,000,000,000 already
paid (according to German figures), but pointed out that even this
sum was possible only if the decision in regard to Upper Silesia
did not go against Germany. Dr. Simons suggested that if the value
of payments already made was disputed, a joint commission should be
appointed to determine it. Lloyd George delivered a long speech to the
German delegation on March 3, in which he ridiculed their proposals
and described them as “simply provocative.” Lloyd George two years
later was taken to task in Parliament for his attitude at this London
Conference. He frankly admitted that he knew the absurdity of the
Entente program, but that it was insisted upon in order to force from
Germany a counter-offer up to her real capacity to pay, and also that
other factors entered into the decision of the British Cabinet to stand
with the French. These other factors were, as we have seen in other
chapters, the desire to keep France from opposing the British plan in
the Near East by supporting French plans on the Rhine.
France, Great Britain, Italy, and Belgium sent a joint note to Germany,
threatening to levy an import tax of 50 per cent on German goods
entering their countries, and to force Germany to pay the tax, which
would be pooled and divided as indemnity. The German Cabinet was firm
in its refusal to pay down 12,000,000,000 gold marks on account before
May 1 and to agree to the London program. Lloyd George himself proposed
an ultimatum in which military occupation of the Ruhr Valley was
threatened if Germany did not accept without reservation the indemnity
schedule fixed at Paris on January 29. On May 5 Lloyd George told
Parliament that he was sure of Germany’s yielding, for “with the Ruhr
gone industrial Germany withers: it cannot exist.” With Marshal Foch on
the Rhine and ready to march in, the German Government agreed to the
Paris program. It was the only means of preventing the Ruhr occupation.
Public-domain text, read in full here on John Shaqi.
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