Young Plan Flashcards
Why did Germany need the young plan?
Allied occupation of the Rhineland pushed for a more permanent plan after Dawes.
Streseman now Foreign Minister wanted an international committee to settle it
Was headed by American businessman Owen Young
Met in Paris in 1929
Final settlement on the reparations issue.
What were the terms of the young plan ?
1) Continue to pay reparations until 1988
2) Bill reduced to 1.8 billion over 6.5 billion
3) Annual payments increased
4) Foreign control over reparation ceased
5) Britain and France withdrew all troops in the Rhineland by 1930 if payments on time
What was the Rights reaction to this?
Leader of DNVP launched a nationwide campaign against the plan, which involved other groups such as Hitler and the Nazis. This campaign group drew up the “freedom law”. This required the government repudiate the war, guilt clause of the treaty, and to demand immediate evacuation of the occupied areas, also any minister who signed a treaty that involves acceptance of war guilt will be tried for treason. It attracted 4,135,000 signatures, so it had to be debated in the Reichstag and voted in a referendum.
It was decisively defeated in both .
However, it shows the depth of support for the right wing and Hitler could make a decisive break through as a national political figure.
Who funded the right wing campaign against the young plan?
Alfred Hugenburg had been a banker before the war and owned newspapers and film companies. Then he was deputy then leader of DNVP where his money and media influence funded the campaign.
Summary of economic recovery?
After trauma of 1923 hyperinflation the economy was more stable during
1924 - 29
Foreign loans help to rebuild the economy
German industry boomed and many Germans experienced growing prosperity
Farmers and white collar workers living standards did not improve as they didn’t have access to the range of welfare benefits available to industrial workers.
Short-term finance from the foreign loans meant Germany was highly vulnerable to changes in the world economic climate.
