The German reparations# problem was one of dominated the European affaires since 1919 and in 1923 was in the state of crisis as a result of the French occupation of the Ruhr. The article examines the attitude of Bonar Low-Baldwin Government on the reparation issue and the development of the British policies towards France and Germany during the Ruhr crisis of 1923. The author concludes the revision of the reparation payments scheme took place as the result of the crisis events and the outstanding British influence exerted.