CHAPTER III

THE BUKDEN OP THE LONDON SETTLEMENT

The settlement of Reparations communicated toGermany by the Allied Powers on May 5, 1921, andaccepted a few days later, constitutes the definitivescheme under the Treaty according to which Germany for the next two generations is to discharge herliabilities. 1 It will not endure. But it is the faitaccompli of the hour, and, therefore, deservesexamination. 2

The settlement falls into three parts, comprising (1)provisions for the delivery of Bonds ; (2) provisionsfor setting up in Berlin an Allied Committee ofGuarantees ; (3) provisions for actual payment incash and kind.

1. The Delivery of Bonds. —These provisions arethe latest variant of similar provisions in the Treaty

1 The preamble states that the settlement is " in accordance withArticle 233 of the Treaty of Versailles." This Article prescribes that thescheme of payments shall provide for the discharge of the liabilities withinthirty years, any unpaid balance at the end of this period being " postponed "or " handled otherwise." In the actual settlement, however, the initiallimitation to thirty years has been neglected.

2 This actual text is printed below in full, Appendix No. VII.

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