• When the Dawes scheme was invented America had not
made her claim to a share in German reparations. Perhaps the most difficult problem of all, therefore, was to dovetail the American claim into the existing scheme. A spirit of accommodation all round was required and fortunately it was forthcoming. The Americans consented to accept payment for their military expenditure over a longer period twenty years instead of twelve—than they had originally contemplated. And Belgium consented to have her percentage of repara- tions reduced from 8 per cent. to 41 per cent. after She has received her priority payment of £100,000,000. It must be understood that Belgium is not really required. to make any ultimate sacrifice. Her priority claim of £100,000,000 is of larger relative value than it was when it was granted ; and as she is to receive an appreciable amount in gold in connexion with the costs of the Ruhr occupation, without prejudice to her priority claim to gold, she will do well out of the transaction. Before the Paris Conference it was an accepted fact that her priority rights had run their course, but under the new arrangement they will last another year.
