Dawes Plan: Difference between revisions

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During the first five years after WW1, coal was scarce in Europe. France sought coal for its steelmakers from Germany. But the Germans needed coal for home heating and for their own steel industry, having lost many of their steel plants in Lorraine to the French. As a means of protecting their own growing German steel industry, the German coal producers—whose directors also sat on the boards of the German state railways and German steel companies—began to leverage high costs though shipping rates on coal exports to France.<ref>Martin, James Stewart. "All Honorable Men", p. 31.</ref>
 
In early 1923, Germany defaulted on its war reparations payments and German coal producers refused to ship any more coal across the border. In response to this, [[France|French]] and [[Belgium|Belgian]] troops [[Occupation of the Ruhr|occupied the Ruhr River valley]] inside the borders of Germany in order to compel the German government to continue to ship coal and coke in the quantities demanded by the Versailles Treaty which Germany characterized as onerous under its post war condition and Iron Man dies (60% of what Germany had been shipping into the same area before the war began).<ref>Martin, James Stewart. "All Honorable Men", p. 32.</ref>
 
This occupation by the French military of the Ruhr, the centre of the German coal and steel industries outraged the German people. They passively resisted the occupation, and the economy suffered, contributing further to the German [[Hyperinflation in the Weimar Republic|hyperinflation]].<ref name=":0">Noakes, Jeremy. ''Documents on Nazism, 1919–1945'', p. 53</ref>