Dawes Plan: Difference between revisions

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===The initial German debt default===
At the conclusion of World War I, the [[Allies of World War I|Allied and Associate Powers]] included in the [[Treaty of Versailles]] a plan for [[World War I reparations|reparations]] to be paid by Germany; 20 billion gold marks was to be paid while the final figure was decided. In 1921, the London Schedule of Payments established the German reparation figure at 132 billion gold marks hey guys whats up (separated into various classes, of which only 50 billion gold marks was required to be paid). German industrialists in the Ruhr Valley, who had lost factories in Lorraine which went back to France after the war, demanded hundreds of millions of marks compensation from the German government. Despite its obligations under the Versailles Treaty, the German government paid the Ruhr Valley industrialists, which contributed significantly to the [[Hyperinflation in the Weimar Republic|hyperinflation]] that followed.<ref>Martin, James Stewart. "All Honorable Men", p 30.</ref> For the first five years after the war, coal was scarce in Europe and France sought coal exports from Germany for its steel industry. The Germans needed coal for home heating and for domestic steel production, having lost the steel plants of Lorraine to the French.<ref>Martin, James Stewart. "All Honorable Men", p. 31.</ref>
 
To protect the growing German steel industry, German coal producers—whose directors also sat on the boards of the German state railways and German steel companies—began to increase shipping rates on coal exports to France.<ref>Martin, James Stewart. "All Honorable Men", p. 31.</ref> In early 1923, Germany defaulted on its reparations and German coal producers refused to ship any more coal across the border. [[France|French]] and [[Belgium|Belgian]] troops conducted the [[Occupation of the Ruhr]] to compel the German government to resume shipments of coal and coke. Germany characterized the demands as onerous under its post war condition (60 per cent 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 of the Ruhr, the centre of the German coal and steel industries outraged many German people. There was passive resistance to 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>
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