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Summary How effectively did the Dawes Plan stabilise Europe after the Ruhr crisis?
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- AQA
Detail notes on the Dawes Plan and the Ruhr Occupation . Great for revision. I obtained an A* overall.
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1How effectively did the Dawes Plan stabilise Europe after the Ruhr crisis?
Thesis: Aimed to stabilise Europe after the war crisis
• How successfully did the spirit of Locarno maintain peace?
• International relations and the balance of power following the invasion of the Ruhr
France: Upset with the lack of reparation payments by Germany- felt vulnerable as Britain
and Germany did not offer France support, so they became isolationist. France felt bitter
towards Germany as the occupation wasn’t working- French economy was suffering.
France turned to the USA to get loans to recover from economic situation. France’s power
was decreasing.
USA: With Germany not paying reparations and the downfall of the German economy, the
allies could not pay US war debts- Germany was quite sympathetic to Germany as they
thought the reparation payments were too harsh. It is in America’s interest to deal with the
financial situation in Germany. France would have to go along with it because they were
indebted to the USA. The USA power was increasing due to the economic situation in
Europe.
Britain: Sympathetic to Germany- felt threatened by communism and fear for communism
spreading in Germany which would effect trade- need to have a solution with the
reparation payments. Germany no longer viewed as the ‘boogey man’ of Europe. Britain
see this as a chance to use Germany as a defence against communism. Germany not
paying reparations would stop payment of US war debts. Didn’t support France in the
occupation of the Ruhr
Germany: There would be tension with France- downfall of their economy would have
weakened them as a power
Russia: There was a trade deal between the USSR and Germany- with the German
economic crisis it would have effected trade and therefore Russia’s economy. USSR now
become the ‘boogey man’
Dawes Plan
• In November 1923 Britain, France and the USA agreed to discuss reparations. A
commission was set up under US economist Charles Dawes and comprised of two
financial experts each from the USA, Britain, France, Belgium and Italy.
• Aim: restructure the reparations and support the German economy to encourage
recovery so that it could afford to make payments to the allies, who would then have no
need to take them by force
Britain on the Dawes Plan
• Welcome it enthusiastically by the British Treasury as it would avoid war between France
and Germany
• Involved USA in the process of extracting reparation payments- no longer pursuing
isolationism
• The stability of German economy- ensure reparation payments- pay off war debts
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