Germany: Chapter 2 [The Recovery of Germany] Flashcards
1
Q
STRESEMANN AND THE GREAT COALITION GOV [1923]
A
- Stresemann = Chancellor
- urgent hyperinflation reduced
- unemployment decreased, houses built and transport invested in
2
Q
THE RENTENMARK [NOV 1923]
A
- temporarily introduced
- value based on industry and agriculture
- shares in both promised if currency failed
- 1924: Reichsbank took tight control over printing
- 1924: Reichsmark introduced
3
Q
US LOANS AND ECONOMIC RECOVERY
A
- Stresemann believed in foreign relations to renegotiate reparations
- worked to befriend Allies [hated idea]
- turned to USA
- USA loaned to Germany under Dawes and Young Plan
- Germany paid GBR and France
- GBR and France repaid war loans to USA
4
Q
DAWES PLAN [1924]
A
- USA’s Charles Dawes
- reparations reduced to 1,000 million marks for first 5 years [after to be 2,500 million marks]
- USA loaned 800 million industry-boosting gold marks
- Allies agreed to review reparations
- French agreed to withdraw troops from Ruhr and Allies promised to deal with future missed payments together
- Allies given some control of Reichsbank and railways
5
Q
EXTENT OF ECONOMIC RECOVERY
A
- till 1929 industrial output doubled
- nations invested in Germany causing wage increase, cost of living decrease and standard of living increase
- economic confidence restored by new roads, schools and buildings
- unemployment had unemployment benefits and labour exchanges
- BUT foreign investment left nation vulnerable
- 1927: economy slowing and farming industry struggling
- 1929: Wall Street Crash
6
Q
THE YOUNG PLAN [1929]
A
- reparations reduced to $8 billion
- payments to be made over 59 years [$473 million annually]
- only obligated to pay 1/3 of annual sum
- French agreed to leave Rhineland 5 years earlier [1930]
- reduction of annual reparations payments reduced taxes and allowed funds to be released to German industry, creating jobs
- BUT Nationalists hated reparations
- Hagenberg’s anti-Young Plan petition gained 4 million signatures
- only 14% voted against Plan in referendum though
- 1931: economy crashed and Allies suspended reparations
7
Q
STRESEMANN’S SUCCESSES ABROAD
A
- used diplomacy to gain German power and wealth
- improved relations with GBR and France by ending 1923 passive resistance in Ruhr
- wanted 3 things: tolerable reparations, protection of 10-12 million Germans living under foreign control and readjustment of Eastern Frontier [recovery of Danzig and Polish Corridor and correction of Upper Silesian frontier]
8
Q
THE LOCARNO PACT [1925]
A
- collection of 7 treates [GBR, France Poland etc.]
- Germany accepted new Western borders and agreed no military force unless in self defence
- no more French occupation of the Ruhr as Alsace-Lorraine was already French
- Eastern borders to be settled peacefully [Germany, Poland and Czechoslovakia promised to work with League]
- won Nobel Peace Prize in 1929
- 1925-1929: dubbed ‘Locarno Honeymoon’
- BUT nationalists thought diplomacy a weakness and refused to pay reparations
- Germany still weaker than Allies
- Weimar support was still limited
- national was vulnerable relying on American loans
9
Q
LEAGUE OF NATIONS [SEP 1926]
A
- Stresemann negotiated Germany’s way in
- confidence in Weimar increased
- BUT nationalists hated this as they associated League with TOV
10
Q
KELLOG-BRIAND PACT [ AUG 1928]
A
- US Secretary of State and French Foreign Minister
- 62 countries involved
- prevented future war by promising no military force to settle disagreements
- gave Germans confidence in moderate parties
- Germany now among main powers and Weimar Republic was respected and stable
