The Dawes Plan Flashcards
What happened in November 1923?
Stresemann asked the reparations Committee to set up a group of financial experts to examine Germany’s situation
Who was Charles Dawes?
An American banker chosen to head the new committee
When was the Dawes plan created?
April 1924
What was the aim of the Dawes plan?
To help improve Germany’s economy and fulfil the country’s payments for France. The payments then went to the US due to loan agreements.
What was the first term?
A temporary reduction in the annual reparations repayments to £50 million.
What was the second term?
US banks and businesses offered loans worth 800 million marks to German industries and businesses
What was the third term?
The Reichsbank should be reorganised and supervised by the Allies
What as the fourth term?
French and Belgian troops would evacuate the Ruhr
What were the strengths of the Dawes plan?
- Allies had accepted Germany
had reparation problems - Loans were guaranteed
- New machinery, factories,
houses and jobs could allow
economic rebirth. - The French gradually left the
Ruhr 1924-25
What are the weaknesses of the Dawes plan?
Nationalists believed that this fuelled the ToV
