On February 26, 1924, at the French insistence, the Paris Conference was held at the Palace of Versailles.
The topics of this conference included the division of the three nations' occupied zones in Italy, though the main issue remained how to deal with the Germans who were reneging on their debts!
Germany's war reparations were paid mainly in industrial goods, along with a portion in coal and cattle, all of which went to France.
Only the remaining small portion was to be paid in cash. Given the German government's current financial strength, it simply could not afford this cash reparation. Nor could payment in kind be increased any further, or they would not even have money left to import raw materials.
"Everyone is perfectly aware of Germany's current situation. Out of humanitarian considerations, I propose lowering the amount of their war reparations!" United Kingdom Foreign Secretary Grey said solemnly.
"Opposed! These war reparations are both punishment for Germany's launching of the war and compensation for the losses suffered by the participating nations. How can they be reduced so easily?
"Besides, do the Germans truly have no money? If they have no money, where does their social welfare come from?
"You must understand that Germany's current social welfare is higher than that of many of the countries seated here. If social wealth is depleted by high welfare spending and they have no money to repay reparations, and that is grounds for exemption, then would international order not be left open to challenge by anyone?
"After all, losing a war would no longer matter. As long as all the money was handed out as welfare to the public, there would be no need to bear responsibility. If defeated nations lived better than victorious ones, how are we supposed to answer to