Paris 1919 - Margaret Macmillan [126]
The French, it should be noticed, made the greatest concession. They were to follow a similar pattern on the total figure to be paid by Germany. Clemenceau, who always thought in terms of the overall settlement, may have set a high figure early on partly to persuade the Americans to consider the French proposals for continued Allied economic cooperation. At the end of February, when it was clear that the Americans were not interested, Loucheur came down to £8 billion ($40 billion), just over a quarter of what France had been demanding. Cunliffe, representing Britain, refused to go any lower than £9.4 billion ($47 billion). The British suspected that the French were siding with the Americans on a lower figure and leaving them to appear the most demanding. The picture painted so vividly by Keynes and others of a vindictive France, intent on grinding Germany down, begins to dissolve.34
In the end, mainly because of British resistance, it proved impossible to agree on a figure for the treaty. At the end of March the Allied leaders, now meeting as the Council of Four, decided on the alternative of the special commission. The postponement, one of the American experts wrote in his diary, “will relieve Great Britain and France from their troubles of making public the small amount they are to get from reparations because both Prime Ministers believe their government will be overthrown if the facts are known.” He was right. By the time the commission set a final total of 132 billion gold marks (approximately £6.5 billion, or $34 billion) in 1921, emotions about Germany, especially in Britain, were cooling off.35
The German delegation that came to Versailles in May complained bitterly about the decision not to announce the final figures of the reparations until after the treaty had been signed. “No limit is fixed save the capacity of the German people for payment, determined not by their standard of life but solely by their capacity to meet the demands of their enemies by their labour. The German people would thus be condemned to perpetual slave labour.” The emotion, given the general dismay over the terms, is understandable; the interpretation, however, unduly pessimistic. The special commission on reparations had to take into account Germany’s capacity to pay; it also had to consult the Germans themselves. Furthermore, the categories of damage for which reparations were to be paid were specifically limited; not enough, perhaps, since they included pensions, but they were certainly not open-ended. 36
Starting the section in the treaty on reparations were two articles— Articles 231 and 232—that came to be the object of particular loathing in Germany and the cause of uneasy consciences among the Allies. Article 231 assigned responsibility to Germany and its allies for all the damage caused by the war. Article 232 then restricted what was an unlimited liability by saying that since Germany’s resources were in fact limited, it should be asked to pay only for the specified damages. The first clause—the war guilt clause, as it later came to be known—had been put in after much debate and many revisions, primarily to satisfy the British and the French that Germany’s legal liability was clearly established. The Americans helpfully put one of their clever young lawyers on to it. John Foster Dulles, the future secretary of state, thought he had both established the liability and successfully limited