The Dawes Plan 1924 Flashcards
How did Germany try to fix the reparations issue?
In 1923 - Stresemann asked the reparations committee set up a group of financial experts to look at Germanys situation.
American banker Charles Dawes chosen to head the committee
Apr 1924 - Dawes established a plan to get Germany back on her feet. Streseman an took a lot of the credit ( foreign secretary)
Who was Charles Dawes?
American banker and politician
US vice president- 1924
Helped resolve reparations issue
Creator of the Dawes plan
He and streseman won noble piece prize - 1925
What were the terms of the Dawes plan?
1) Comfirmation of reparations at
£132 000 million gold marks
2) Amount to paid each year until 1929
3) Restart by paying £100 million marks which would increase by £2500 million over 5 years
4) Germany should receive £800 million mark American loan to kickstart the plan - invest in heavy infrastructure.
What did streseman think of the Dawes plan?
Privately he believed it was an economic armistice.
What did nationalists think of the plan?
Only fuelled the Treaty of Versailles
What was the allies reaction?
Accepted that Germany had reparations problems.
What were 3 other impacts of the Dawes plan?
1)Loans were guaranteed
2) New machinery , factories , houses and jobs would allow economy rebirth
3) French gradually left the Ruhr 1924-25
