WHAT FRANCE PAYS

Dominion, Volume 34, Issue 112, 5 February 1941, Page 7

WHAT FRANCE PAYS

Vengeful Nazi Armistice Terms Article 18 of the Franco-German Armistice terms, reported on June 24, imposed on France the cost of maintaining the Nazi army of occupation—--20 million marks a day. At the rate of exchange fixed by the Armistice Commission —20 francs equals one reichsmark —the cost to France is 146 milliard francs a year. The whole French national income in pre-war days did not exceed 290 milliard francs, so that the Nazi army of occupation absorbs practically 50 per cent, of France’s pre-war national income, that is, the total of personal incomes. But owing to the diminution of the national income due to the disasters of war, the proportion exceeds 50 per cent. When the Allied Armies of Occupation were charged to Germany after the last war, the cost represented less than one per cent, of Germany’s national income.

The French budget of 1939 was 66 milliard francs, and the first war budget was 79 milliard francs, so that the sum demanded by the Germans is about twice France's war budget. Included in the German Army in France are the troops in the invasion ports, though these are not strictly an “army of occupation.” No credit has been allowed for any French territory taken by Germany. Down to April 30, 1921, German reparation payments had approximately covered the actual costs of the Allied Army of Occupation, on the assumption that credit was given for cessions of property and for deliveries in kind. In June, 1919, it was promised that the cost of occupation should be reduced to 240 million marks a year when German demobilization was satisfactorily completed. Later it was agreed that this sum should come into force as from May, 1922. The Dawes plan provided that the prior charge on German payments allocated to occupation costs should be reduced, as from September, 1924. to 160 million marks, the balance being met by the countries concerned out of reparation payments. The national income of Germany in 1913 was 45.7 milliard gold marks. In 1923 it was 60 per cent, of this, in terms of 1913 purchasing power, namely, 28 milliard gold marks.

The cost of the armies of occupation, reckoned at 240 million gold marks, was thus less than 1 per cent, of the national income, or more exactly, 0.85 per cent. The German budget expenditure in 1913 was 3.5 milliard marks. In 1924, after stabilization of the mark, it was 7.2 milliard. The cost of the armies of occupation was thus, in terms of the 1913 budget, 6.8 per cent., and in terms of the 1924 budget, 3.3 per cent, of the national expenditure. The contrast between the treatment of Germany in 1919 and Germany's treatment of France gives an indication of the weight of Nazi savagery, despite Hitler’s plaints about the Treaty of Versailles.