Dawes Plan: Difference between revisions

→‎The initial German debt defaults: Corrected grammatical error
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(→‎The initial German debt defaults: Corrected grammatical error)
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==Background: World War I Europe==
===The initial German debt defaultdefaults===
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 (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>
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