Germany billion reparations Treaty of Versailles Article 231
Article 231 of the Treaty of Versailles (the so-called "war guilt" clause) stated Germany accepted responsibility for "all the loss and damage to which the Allied and Associated Governments and their nationals have been subjected as a consequence of the war imposed upon them by the aggression of Germany and her allies." It was worded as such to lay a legal basis for reparations, and a similar clause was inserted in the treaties with Austria and Hungary. However, neither of them interpreted it as an admission of war guilt." In 1921, the total reparation sum was placed at 132 billion gold marks. However, "Allied experts knew that Germany could not pay" this sum. The total sum was divided into three categories, with the third being "deliberately designed to be chimerical" and its "primary function was to mislead public opinion ... into believing the "total sum was being maintained." Thus, 50 billion gold marks (12.5 billion dollars) "represented the actual Allied assessment of German capacity to pay" and "therefore … represented the total German reparations" figure that had to be paid.
