23. Lieut.-Colonel MURRAYasked the Prime Minister what was the amount of reparation payments that the British and Allied Governments agreed to impose upon Germany at the Conference held in Paris in January, 1921?
§ Mr. BALDWIN:The arrangement provided (a) for annuities of
12 milliard gold marks for 2 years.
3 milliard gold marks for 3 years.
4 milliard gold marks for 3 years.
5 milliard gold marks for 3 years.
6 milliard gold marks for 31 years.
The total of these annuities would be £11,300,000,000; the present value would naturally be much less, e.g., on a 5 per cent. table about £4,100,000,000. Germany had in fact an option to redeem future payments at 8. per cent. discount up to 1st May, 1923, 6 per cent. discount 541W up to 1st May, 1925, and 5 per cent. discount thereafter. (b) In addition Germany was to pay for 42 years an annuity equal to 12 per cent. of the value of her exports.
I would remind the hon. and gallant Member that the above requirement was superseded by the decision reached in May, 1921, and known as the Schedule of Payments. Under that decision Germany was to deliver to the Reparation Commission 5 per cent. bonds to a nominal total of approximately £6,600,000,000, but out of this total "Series C" Bonds (over £4,000,000,000 nominal value) were only to he issued by the Reparation Commission as and when the Commission is satisfied that the payments which Germany is required to make in pursuance of the Schedule of Payments, are sufficient to provide for the payment of interest and sinking funds on such bonds