Dawes Plan Flashcards
In November 1923, what did Stresemann do?
He asked the Allies’ Reparations Committee to set up a committee of financial experts to address Germany’s repayment concerns.
Why was the US so concerned about the reparations?
They wanted to get Germany into a position wherein the reparations could be made to France because much of this money would be passed on the US as repayment of loans.
Who acted as the new committee’s chairman?
Charles Dawes, an American banker.
When was the Dawes Plan finalised?
April 1924
What did the Dawes Plan do to help with reparations?
1) The amount paid each year by Germany was to be reduced until 1929.
2) Germany should pay 100 million marks and this should be raised by annual increments over 5 years by 2500 million marks per year.
3) Germany should get a loan of 800 million marks from the USA to help get the plan started and allow for heavy investment in German infrastructure.
What did Stresemann refer to the Dawes Plan as?
‘No more than an economic armistice’. But he did agree to it as a way of securing foreign loans.
What did the ‘national opposition’ think of this plan?
The DNVP and RW groups attacked this policy of compromise and believed that Germany should defy the unjust ToV and refuse to pay reparations.
When was the Dawes Plan agreed and accepted?
July 1924
What benefits did this plan bring?
1) The Allies accepted that Germany’s problems with the payment of reparations were real.
2) Loans were granted with which new machinery, factories, houses and jobs could be provided and the German economy rebuilt.
When did the French start to leave the Ruhr?
During 1924-25. They left once it became clear that Germany was going to restart paying reparations.
