Reparations

Question 1

Ger. should pay

Answer 1

When Ger. defeated Russia in WWI, charged very high reparations
Agreement in August committed country to pay 6 billion marks in reparations (Treaty of Brest-Litousk 1918)

Question 2

Ger. couldn’t pay

Answer 2

Economists Eg. JM Keynes said that reparations would ruin Ger. and the world’s economy as other countries relied on Ger.
Ger. had to pay in gold or goods - strain on economy which was already damaged by WWI
Ger. lost richest farmland (West Prussia) and Saar coalfields

Question 3

Introduction of reparations

Answer 3

Apr. 1921 - Ger. given £6600 million bill (2% of Ger. annual output)
Paid first installment in 1921
Failed to pay 1922 installment

Question 4

Failing to pay in 1922

Answer 4

French and Belgian soldiers invaded the Ruhr, took goods
Ger. gov ordered workers in Ruhr not to fight back but to go on strike - Passive resistance
Over 100 strikers killed, 15000 thrown out of homes as punishment, French took these homes