A White Paper (Cmd. 240) has, however, been issued, in which is published a declaration by the Governments of the United States, Great Britain, and France engaging themselves to limit the sum payable annually by Germany to cover the cost of occupation to $60,000,000 “as soon as the Allied and Associated Powers concerned are convinced that the conditions of disarmament by Germany are being satisfactorily fulfilled.”  The word which I have italicized is a little significant.  The three Powers reserve to themselves the liberty to modify this arrangement at any time if they agree that it is necessary.

[111] Art. 235.  The force of this Article is somewhat strengthened by Article 251, by virtue of which dispensations may also be granted for “other payments” as well as for food and raw material.

[112] This is the effect of Para. 12 (c) of Annex II. of the Reparation Chapter, leaving minor complications on one side.  The Treaty fixes the payments in terms of gold marks, which are converted in the above rate of 20 to $5.

[113] If, per impossibile, Germany discharged $2,500,000,000 in cash or kind by 1921, her annual payments would be at the rate of $312,500,000 from 1921 to 1925 and of $750,000,000 thereafter.

[114] Para. 16 of Annex II. of The Reparation Chapter.  There is also an obscure provision by which interest may be charged “on sums arising out of material damage as from November 11, 1918, up to May 1, 1921.”  This seems to differentiate damage to property from damage to the person in favor of the former.  It does not affect Pensions and Allowances, the cost of which is capitalized as at the date of the coming into force of the Treaty.

[115] On the assumption which no one supports and even the most optimistic fear to be unplausible, that Germany can pay the full charge for interest and sinking fund from the outset, the annual payment would amount to $2,400,000,000.

[116] Under Para. 13 of Annex II. unanimity is required (i.) for any postponement beyond 1930 of installments due between 1921 and 1926, and (ii.) for any postponement for more than three years of instalments due after 1926.  Further, under Art. 234, the Commission may not cancel any part of the indebtedness without the specific authority of all the Governments represented on the Commission.

[117] On July 23, 1914, the amount was $339,000,000.

[118] Owing to the very high premium which exists on German silver coin, as the combined result of the depreciation of the mark and the appreciation of silver, it is highly improbable that it will be possible to extract such coin out of the pockets of the people.  But it may gradually leak over the frontier by the agency of private speculators, and thus indirectly benefit the German exchange position as a whole.