Reparations

The imposition of indemnities upon Germany by the allied powers following World Wars I and II. After World War I the payment of reparations was stipulated by article 232 of the Treaty of Versailles 1919 and was fixed by the London Comference (1921) at £6,600 million. The figure proved unrealistic and was modified in 1924 and again in 1929, until finally, in 1932, reparations were cancelled.

In contrast reparations following World War II were agreed at the Potsdam conference and were to be extracted from the defeated Germany only in the form of capital equipment, such as industrial plant, to aid in the recovery of the war-damaged economies of the allies.