IV

THE REPARATION BILL

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as well as by those of Germany . Payments, if any,made by Germany's Allies must, presumably, bededucted from the sum due. But Annex I. of theReparation Chapter of the Treaty of Versailles is sodrafted as to render Germany liable for the wholeamount. (2) This total is exclusive of the sum dueunder the Treaty for the reimbursement of sumslent to Belgium by her Allies during the war. Atthe date of the London Agreement (May 1921)Germany 's liability under this head was provisionallyestimated at 3 milliard gold marks. But it had notthen been decided at what rate these loans, which weremade in terms of dollars, sterling, and francs, shouldbe converted into gold marks. The question wasreferred for arbitration to Mr. Boyden, the UnitedStates Delegate on the Reparation Commission,and at the end of September 1921 he announced hisdecision to the effect that the rate of conversion shouldbe based on the rate of exchange prevailing at thedate of the Armistice. Including interest at 5 percent, as provided by the Treaty , I estimate that thisliability amounts at the end of 1921 to about 6milliard gold marks, of which slightly more thana third is due to Great Britain and slightly lessthan a third each to France and the United States respectively.

I take, therefore, as my final conclusion that thebest available estimate of the sum due from Germany ,under the strict letter of the Treaty of Versailles , is