Dawes and Young Plans for
reparation
In early 1923 France had invaded the Ruhr area to make Germany pay reparations. Sending soldiers into the Ruhr solved nothing. The use of force did not make the Germans pay up. In November 1923 France was forced to agree to take part in a review of the reparations organized by an American banker Charles Dawes. The Dawes Plan was agreed in April 1924.
Bibliography
"The Dawes Plan, the Young Plan, German Reparations, and Inter-allied War Debts." Office of the Historian. US Department of State, n.d. Web. 6 Feb. 2013. <http://history.state.gov/milestones/1921-1936/Dawes>.
"Reparations: The Dawes and the Young Plan." Reparations: The Dawes and the Young Plan. N.p., n.d. Web. 06 Feb. 2013.
By Esther Tjoelker
Results of the Young plan
- The great depression led to a great rise in unemployment in Germany and the reparations came to an end
- After a 3 year freeze Germany was supposed to make a final payment
- This payment was never made
The Young Plan: 1929
The Video
- The German government continued to complain about the levels of reparations
- The question of reparations was reviewed in 1929 by a committee led by an American called Owen Young
- The committee produced the Young Plan which considerably reduced the amount of reparations
- Young Plan was a considerable achievement for the German Foreign Minister Stresemann
- Extreme nationalists objected to the payment of any reparations and bitterly denounced the Young Plan
The consequences of the Dawes plan
The terms of the Dawes plan
- Germans payed a reparations bill of $1 billion and received American loans of $2 billion
- Much of the American loan money was spent on German factories
- The French wanted Germany be made weak but the Dawes plan made Germany even stronger
- As a result of the occupation of the Ruhr the Treaty of Versailles had been significantly altered in Germany's favor.
- There was to be a two year freeze on the payments of reparation
- The level of german payments was scaled down
- The USA offered huge loans to Germany
- The French agreed to get their forces out of the Ruhr