242 Chapter 3
Narrative: In January 1921 the Allied Reparations Commission met and set forth
a schedule for German reparations. The Germans protested the level of reparations
sought, and in February they established a committee to negotiate more favorable
terms. The head of the German committee, Dr. Kraemer, said that Germany needed
at least one or two years respite from the Allies’ reparations demands; otherwise, a
French occupation of the Ruhr would reduce to anarchy and crime. On March 1, Ger-
man officials met with Allied officials in London. The Allies demanded $53 billion
in gold coins, but the Germans counteroffered $7.5 billion. The Germans further
insisted that they raise $2 billion free of income tax, to retain sovereignty over Upper
Silesia, and to enjoy free commercial privileges around the world. The Allies balked
at the offer. They immediately planned for meetings with legal and military advisors
to decide on their next steps.
On March 3, the Allies handed Germany an ultimatum: accept the Allies’ offer or
make a worthy counterproposal. On March 5, the French military announced that it had
finalized plans for the occupation of the Ruhr in case the Germans did not abide by the
ultimatum, and two days later French troops began to occupy German territory. On March
10, Germany requested intervention from the League of Nations, but the secretary-general
ignored the request. Meanwhile, Germany continued to refuse to cooperate. The Allies
set a deadline of May 1 for Germany to meet Allied demands. On March 26, Germany
requested arbitration to settle disputes about disarmament, but Briand, president of the
Council of Ambassadors, refused arbitration and said that the Allies had settled the issues
of German concern in January. On March 29, the Reparations Committee ordered Ger-
many to place the entire Reichsbank gold reserve in Allied possession.
Germany sent another note of protest to the League on April 2, this time over the
presence of French troops in the Saar, but to no avail. In April the British began to
talk with the French about an occupation of the Ruhr and the French military con-
tinued to discuss its options for a military occupation of the Ruhr. On April 14, the
French Chamber of Deputies imposed a duty of 50 percent on German goods; also
in mid-April the United States announced that it would join the Reparations Com-
mittee. On April 15, France announced that it would move to occupy the Ruhr in
early May if the Germans did not make a sufficient payment. The French military
issued orders to activate troops for the occupation, increasing the size of its military
by 450,000 troops. The plan at the time called for Germany to pay between $85 and
$100 billion (in 1923 dollars) over 30 years. Six days later the German government
requested mediation from the US government, but President Harding declined.
On April 30, the French military announced that the occupation of the Ruhr would
take two days and would commence on May 7 at the earliest. The next day the Repa-
rations Commission delivered a due bill to the German government for $3 billion.
On May 3, French troops in Germany began to move toward the Ruhr, and two days
later the French and British delivered an ultimatum to the German government to pay
the reparations by May 12 or face occupation of the Ruhr. The German government
resigned in protest.
The new government, under Wirth, accepted the Anglo-French demands on May
11, ending this dispute.
Coding changes: End Date changed from November 5, 1921. Outcome changed from
Compromise. Settlement changed from Negotiated.