763.72119/10092: Telegram
The Ambassador in Belgium (Whitlock) to the Secretary of State
[Received July 1—9:35 p.m.]
91. Your no. 56 of June 26. At Hythe, where Millerand and Lloyd George met for conference, they discussed disarmament, deciding to send Germany a sharp note refusing her request for permission to maintain army of 200,000 men and demanding that there be not over 100,000 under arms but giving her permission to increase local police. They also discussed indemnities, deciding France should have 55 percent and the [British] Government 25 percent. They made a secret agreement with Serbia allotting 6 percent of the indemnities to that country, thus leaving 14 percent to be divided among Belgium, Italy, and the rest.
At Boulogne the Allies were all represented. The decision regarding the disarmament note was approved promptly, and the decision was made to use military measures such as occupying Ruhr district if Germany did not execute without delay the military clauses of the peace treaty. Regarding distribution of indemnities, the Belgian and Italian delegates on learning of the understanding between England and France refused to approve it and threatened to withdraw from the Conference. To allay their opposition, Lloyd George claimed this was only a proportional distribution as between England and France, or as he said aside to Millerand, “between ourselves”, but France insisted it meant a percentage of the complete indemnity. Finally it was decided that the question should be referred to financial experts who are still working on the problem and will report to Allied Conference to be held at Brussels July 2 as a preliminary to Spa Conference, July 5.