The Recovery of Gremany Flashcards
Gustav Stresseman
Became Chancellor in 1923 and led the Coalition Government. Stresseman was Chancellor for 4 months and then became foreign secretary.
The Rentenmerk
In November 1923, Stresseman created a new currency called the Rentenmark and tightly controlled the ammount of money printed.
Dawes Plan - 1924
- The USA loaned Germany 800 million marks
- Reparations payments were lowered to 1,000 million marks for the first 5 years and would be increased to 2,500 million marks.
- The Allies agreed to review the payment rate over time, to take account of Germany’s economic situation and ability to pay.
- The French agreed to withdraw troops from the Ruhr. They also agreed that any missed payments in the future would be dealt with by the Allies together.
- The Allies were given some control of the Reichsbank and the railways in Germmany.
Young Plan - 1929
- The total reparations bill was reduced to around $8 billion.
- The payments were to be made over 59 years, at a rate of $473 million per year.
- Germany was only obliged to pay a third of the annual sum each year. It should pay the rest if it could afford to do so.
Locarno Pact - 1925
- Germany agreed to accept its new western borders, and all the countries involved in the Locarno Pact agreed to avoid military force except in self-defence. This provided important reassurance for France and Germany in particular: they shared a long border and the French had invaded the Ruhr in 1923.
- Germany agreed that Alsace-Lorraine would be French. In return, the French agreed not to occupy the Ruhr again.
- Germany’s eastern borders could be settled by ‘peaceful means’ through the League of Nations.
- Stresseman was awarded the Nobel Prize in 1926.
League of Nations
In September 1926, Stresemann persuaded the other great powers to allow Germany to join the League of Nations. This was partly a result of the signing of the Locarno Pact. Germany was given a place on the League of Nations Council - this was significant because the members of this council made the most important decisions.
Kellog-Briand Pact - 1928
In August 1928, 62 countries including Germany, the USA and France signed the Kellogg-Briand Pact. The aim of this pact was to prevent a future war, by getting countries to promise not to use military force to settle disagreements.
