3 - REPARATIONS, SEPTEMBER 1941–DECEMBER 1945

Summary

Although he had raised the matter in the first draft of his ‘Proposals to Counter the German “New Order”’, Keynes did not take up the question of the post-war treatment of Germany for almost another year. Then a conversation with Dr Beyen of the Netherlands restimulated his interest and he minuted Lord Catto and others in the Treasury.

To LORD CATTO AND OTHERS, 19 September 1941

EUROPEAN REPARATIONS

I had a visit a few days ago from Dr Beyen, who told me that his Government were giving increasing thought to the question of reparations from Germany in relation to post-war reconstruction. The Dutch Government are evidently a little anxious lest this issue should be prejudiced by some bold statement by the President and the Prime Minister, after some such occasion as the Atlantic Conference, declaring that there shall be no reparations of any sort or kind. They do not in the least contemplate anything like what happened after the last war. Quite the contrary. But the line to be drawn between reparations and restitution is not a very clear one. They suggest that the whole matter needs careful consideration at not too late a date. They would like to be assured that we are giving some thought to it and that no premature decision will be reached without their having an opportunity to express their views.