The German Government definitely refused on March 22nd to pay
an instalment of the £1,000,000,000 due in gold on or before May 1st, by virtue of Article 235 of the Peace Treaty. The Reparation Commission had calculated that the payments already made amounted to £400,000,000, and had asked for a further sum of £50,000,000 on account. The German Govern- ment asserted that they had already paid the full amount, and that in any case they could not pay the balance by the stipulated date. As the Reparation Commission, under the Treaty, has to assess the value of the payments in kind made by Germany, the German answer was in effect a fresh attempt to evade the Treaty. The Commission knew that Germany had assets enough in hand to pay the £50,000,000 last week, if she had wished to do so. The Commission therefore reported to the Allies that Germany was a defaulter in respect of the definite obligation which she had undertaken, apart altogether from the amount of reparation that has not yet been agreed upon.
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