It is worth while to point out in passing a further element in the situation, namely, the opposition which existed between the "crushing" policy of M. Clemenceau and the financial necessities of M. Klotz. Clemenceau's aim was to weaken and destroy Germany in every possible way, and I fancy that he was always a little contemptuous about the Indemnity; he had no intention of leaving Germany in a position to practise a vast commercial activity. But he did not trouble his head to understand either the indemnity or poor M. Klotz's overwhelming financial difficulties. If it amused the financiers to put into the Treaty some very large demands, well there was no harm in that; but the satisfaction of these demands must not be allowed to interfere with the essential requirements of a Carthaginian Peace. The combination of the "real" policy of M. Clemenceau on unreal issues, with M. Klotz's policy of pretense on what were very real issues indeed, introduced into the Treaty a whole set of incompatible provisions, over and above the inherent impracticabilities of the Reparation proposals.
I cannot here describe the endless controversy and intrigue between the Allies themselves, which at last after some months culminated in the presentation to Germany of the Reparation Chapter in its final form. There can have been few negotiations in history so contorted, so miserable, so utterly unsatisfactory to all parties. I doubt if any one who took much part in that debate can look back on it without shame. I must be content with an analysis of the elements of the final compromise which is known to all the world.
The main point to be settled was, of course, that of the items for which Germany could fairly be asked to make payment. Mr. Lloyd George's