In 1952, the Federal Republic of West Germany concluded a treaty with Israel whereby the Germans had to pay three billion Deutschmarks in compensation for the Holocaust. However, the Israelis felt that Germany owed Israel a moral as well as a financial debt, and thus expected further aid and protection. Although Germany made several concessions in favour of the Jewish State, particularly in the domain of armament, as Germany's political status increased, its national interest gradually took priority over that of Israel. George Lavy examines the grounds which motivated Germany to grant aid to Israel and the change in their relations as the German economy flourished and gained influence in world affairs.