The Dawes Plan Flashcards
What were the ‘Golden Years’ of Germany?
The ‘Golden Years’ of Germany were between 1924-29, when Gustav Stresemann became Foreign Minister and helped to improve Germany’s economy.
What was the Dawes Plan?
The Dawes Plan was created by Stresemann and Charles G Dawes, and was signed in October 1924. It was made to help Germany pay their reparations suggested by the Treaty of Versailles.
What were the terms of the Dawes Plan?
1) There was a temporary reduction that stated that Germany had to pay £50 million a year.
2) The USA loaned Germany 800 million marks.
3) The German State Bank, Reichsbank, should be reorganised and supervised by the Allies.
What were the benefits of the Dawes Plan?
1) American loans helped to double industrial output, this also increased employment, income tax and trade.
2) France and Belgium left the Ruhr as they were told they will receive reparations as a result of the Dawes Plan.
3) The Weimar Republic became politically stronger as the economy improved.
What were the criticisms of the Dawes Plan?
1) In short-term, the extreme left-wing and extreme right-wing parties were angry that Germany was still paying reparations imposed by the Treaty of Versailles.
2) In long-term, the German economy’s success was dependent on the USA loans, German economy could be damaged if the USA loans were suddenly taken away.
What was the structure of the Dawes Plan?
The USA could afford to lend money to other countries > The USA lent Germany money to pay off its debts > Germany payed its reparations to France and Britain > Britain and France used this money to pay off its debts to the USA.
