Germany ends World War One reparations after 92 years (1 Viewer)

[Combat]

Someone sent me this today:

Germany will finally clear its First World War debt by repaying nearly £60million this weekend.

The £22billion reparations were set by the Allied victors – mostly Britain, France and America – as compensation and punishment for the 1914-18 war.
The reparations were set at the Treaty of Versailles on June 28, 1919, by the Allied victors - mostly Britain, France and America.

Most of the money was intended to go to Belgium and France, whose land, towns and villages were devastated by the war, and to pay the Allies some of the costs of waging it.

The initial sum agreed upon for war damages in 1919 was 226billion Reichsmarks, a sum later reduced to 132billion. In sterling at the time this was the equivalent of some £22billion.

The German Federal Budget for 2010 shows the remaining portion of the debt that will be cleared on Sunday, October 3.

 

[jazzeum]

According to Der Spiegel, as reported on CNN, Germany issued bonds between 1924 and 1939 to pay off the debt and payments were discontinued in 1931 and Hitler declined to resume them (now, that's a shock). In 1953, West Germany reached agreement (presumably with the Allies), and thereafter Germany paid off the princial on the bonds. However, they were allowed to defer paying the interest that accrued between 1945 and 1952 in the amount of $171 million dollars until Germany unified.

In 1990, Germany began paying off that interest in annual installments, the last of which will be paid on Sunday.

Considering that these massive reparation payments probably helped lead to Hitler's rise, I'm sort of surprised that the Allies after WW II insisted that these be paid off.

 

[Combat]

Considering that these massive reparation payments probably helped lead to Hitler's rise, I'm sort of surprised that the Allies after WW II insisted that these be paid off.

You also have to wonder where all this money is going after all these years.

 

[jazzeum]

You also have to wonder where all this money is going after all these years.

Yes, that is the bigger question, isn't it.

 

[Mitch]

Very interesting wonder which part of the UK economy this money gets spent on???
Mitch

 

[Combat]

This seems a bit vague, but it's all I could find. At the very least, you might hope some of the money finds its way to families who lost relatives in the war:

Most of the money goes to private individuals, pension funds and corporations holding debenture bonds as agreed under the Treaty of Versailles.

The German government did not reveal how the money will be disbursed but it is understood that it is transferred to a holding account before being sent to the relevant bond and debt holders.

Most of these are American and French.

 

[Mitch]

Truly remarkable. You just could not make this stuff up
Mitch

 

[lancer]

I am simply amazed that this debt wasn't written off decades ago. Considering that the US has written off war debt to everyone, both enemy and ally, I wonder what forces are really at work here. Who held out for these payments, especially in the post WW2 world? -- Al

 

[Mitch]

Lancer..

Just had a look on the web to see if I could find anything about it from the UK but, nothing came up so will have top try and dig deeper.

I am, as you seem to be, amazed that this debt is still outstanding and has been made to be repaid. Whats interesting is as you mention post war germany does this mean that these reprations would have been footed by only half of germany after WWII ie West Germany's economy as its hard to see east germany under soviet rule paying reparations.
Mitch

 

[Combat]

I am simply amazed that this debt wasn't written off decades ago. Considering that the US has written off war debt to everyone, both enemy and ally, I wonder what forces are really at work here. Who held out for these payments, especially in the post WW2 world? -- Al

Yes, a few cases of Beck's probably would have sufficed on our end. This appears to be a legacy of an international agreement (the Versailles Treaty) and the US alone may not have the authority to write it off. Crazy stuff though.

http://www.telegraph.co.uk/news/wor.../8029948/First-World-War-officially-ends.html

 

[lancer]

Lancer..

Just had a look on the web to see if I could find anything about it from the UK but, nothing came up so will have top try and dig deeper.

I am, as you seem to be, amazed that this debt is still outstanding and has been made to be repaid. Whats interesting is as you mention post war germany does this mean that these reprations would have been footed by only half of germany after WWII ie West Germany's economy as its hard to see east germany under soviet rule paying reparations.
Mitch

Mitch, I was refering more to the political use of Germany as a new ally and buffer against USSR. It hardly seems practical to demand repayment of old war debt from a country (Germany) that has suddenly become a "friend" in the cold war. As you say, East Germany wasn't going to pay squat. I would have thought WW1 war debt would have been forgiven in the post WW2 political climate. This is just really odd and interesting. -- Al

 

[DCN1898]

This begs other questions as well. From 1903 until 1917, Springfield Armory paid royalties to Mauser for the use of Mauser's operating system in the Springfield '03. Springfield obviously stopped the payments when we went to war. What about from 1918 until 1945 then? It would seem only fair to me!

 

[jazzeum]

This begs other questions as well. From 1903 until 1917, Springfield Armory paid royalties to Mauser for the use of Mauser's operating system in the Springfield '03. Springfield obviously stopped the payments when we went to war. What about from 1918 until 1945 then? It would seem only fair to me!

Royalties were probably paid on a patent and patents usually have terms shorter than 20 years. Now, it is 20 years, then it was probably shorter.

 

[Mitch]

Lancer...
If Germany is repaying the last part this week then it seems exactly that is what happened we use germany as an 'buffer' as you said all its personal to aid against the russians during the cold war and, it seems take large sums of cash from a WWI settlement. Odd, is a little understatement. Why WWI only what about WWII what about the Japanese and, why was this not written off? was interest added during 39-45?? As I said, more questions spring from that statement by the germans. An odd thing to do to a cold war friend
Mitch

Mitch, I was refering more to the political use of Germany as a new ally and buffer against USSR. It hardly seems practical to demand repayment of old war debt from a country (Germany) that has suddenly become a "friend" in the cold war. As you say, East Germany wasn't going to pay squat. I would have thought WW1 war debt would have been forgiven in the post WW2 political climate. This is just really odd and interesting. -- Al

 

[skeeterbuck]

Very interesting wonder which part of the UK economy this money gets spent on???
Mitch

Why defense of course to save us from the dreaded Hun!

On a side note, their is a 2 part TV show entitles "1919" that deals with the Treaty of Versailles. Each part is 1 hour long and when it comes on the Military or History channel they usually show it back to back. I highly recommend anyone watch it if you get the chance. After watching you'll know why the treaty failed so miserably. What a cluster f*** the whole event was to say the least, and why in a short 20 years Germany was at war again under Hitler to re-gain national pride.

 

[Combat]

Lancer..

Just had a look on the web to see if I could find anything about it from the UK but, nothing came up so will have top try and dig deeper.

I am, as you seem to be, amazed that this debt is still outstanding and has been made to be repaid. Whats interesting is as you mention post war germany does this mean that these reprations would have been footed by only half of germany after WWII ie West Germany's economy as its hard to see east germany under soviet rule paying reparations.
Mitch

From the Daily Mail: http://www.dailymail.co.uk/news/art...e-reparations-92-years-59m-final-payment.html

"West Germany, formed after defeat in 1945, took on responsibility for most of the outstanding principle and interest, settling the bill in 1983. But there was a clause in the so-called London Debt Agreement of 1953 that interest on multi-million pound foreign loans taken out in the Weimar Republic era, to pay off the reparations bill, should themselves be repaid if Germany were ever reunited."

 

[jazzeum]

I am simply amazed that this debt wasn't written off decades ago. Considering that the US has written off war debt to everyone, both enemy and ally, I wonder what forces are really at work here. Who held out for these payments, especially in the post WW2 world? -- Al

Just a guess but does the county's name begin with "F" and end with "e"?

 

[Mitch]

You try to supress a country through draconian measures and, sadly, the whole world paid the price. At the forefront was the French.

Wonder really if any of this money ever went on anything as sensible as defence or anything else which could be considered worthwhile. My bet would be not.
Mitch

Why defense of course to save us from the dreaded Hun!

On a side note, their is a 2 part TV show entitles "1919" that deals with the Treaty of Versailles. Each part is 1 hour long and when it comes on the Military or History channel they usually show it back to back. I highly recommend anyone watch it if you get the chance. After watching you'll know why the treaty failed so miserably. What a cluster f*** the whole event was to say the least, and why in a short 20 years Germany was at war again under Hitler to re-gain national pride.

 

[lancer]

Just a guess but does the county's name begin with "F" and end with "e"?

Good guess, Brad. Also had one in mind that started with USSR. -- Al

 

[Terp152]

You also have to wonder where all this money is going after all these years.

Not sure how much money was actually paid out. Landing fees are assessed in Germany for aircraft landing at civilian airports (same as everywhere), including USAF aircraft. US gov't did not pay these fees. The charges were credited to the German war debt. I'm sure there were countless other schemes to reduce the debt.