League of Nations The Dawes Plan

Transcription

1 League of Nations The Dawes Plan United Nations Model Universidad Iberoamericana 2012 Historical Security Council 1

2 Index Introduction, Background - 3 Charles Gates Dawes - 4 The Dawes Plan - 4 Conclusion - 5 Guide Questions 6 References - 7 2

3 The Dawes Plan Introduction. The Dawes Plan of 1924 was formulated to take Weimar (Germany) out of hyperinflation and to return Weimar s economy to some form of stability. The Dawes Plan got its name as the man who headed the committee was a United States (US) citizen: Charles Dawes. The plan lowered the annual amount of reparations (Established in the Versailles Treaty) to be paid by Germany to France and Britain, and loaned Germany a sizable amount of money so that it could pay on time. The delegates will have to discuss the topic not as the United Nations (UN), but as the League of Nations from 1923, an international organization created after World War I. Its objective was to reestablish the peace and the international relationships. Background The Treaty of Versailles had imposed huge reparation payments on Weimar Germany to pay for the damage caused by World War I. It soon became clear that Weimar Germany was simply incapable of paying out the installments required by Versailles. This ended in 1923 with French and Belgian troops occupying the Ruhr, Germany s most productive industrial area. The workers there went on strike which simply exacerbated Weimar Germany s economic standing. By 1924, the country was in dire financial straits. This left the victorious powers with a major problem. Did they let Weimar Germany economically implode on itself? 3

4 It was believed that if Germany was reduced to total impoverishment it might just provoke a German revolution that would put a communist government in place. While Russia was in every sense on the periphery of Europe, Weimar Germany was at the very heart of Europe. So while many citizens of France, Belgium and the United Kingdom (UK) would have applied a policy of real punishment letting Weimar Germany fall into rack and ruin this was not a view shared by many politicians. Hence the desire to do what was possible to support Germany even if World War I had been over for just six years. Charles Gates Dawes (August 27, 1865 April 23, 1951) He was a United States banker and politician who was the 30th Vice President of the United States ( ). For his work on the Dawes Plan for World War I reparations he was a co-winner of the Nobel Peace Prize in Dawes served in the First World War, was the Comptroller of the Currency, the first director of the Bureau of the Budget, and, in later life, the Ambassador to the United Kingdom. The Dawes Plan The five nations on the Dawes Committee were the Unites States (US), UK, Italy, Belgium and France. Each sent two experts in finance in order to restructure Weimar s economy mainly because Weimar could not hope to pay off its reparation payments during the period. The Dawes Committee wanted to find a way to boost Germany s economy, so that in the future years Weimar could start to make full payments. The main points of the Dawes Plan were simple in their effort to save Weimar Germany s economy: The first major decision was that the Ruhr was to be returned to the full control of the Germans. French and Belgian troops would pull out of the region as soon as 4

5 possible. The whole industrial zone had been wracked by passive resistance, which had led to Germany s most important economic zone to stop production and therefore to job creation and economic movement. By removing French and Belgian troops from the Ruhr, the Dawes Plan had at a stroke removed the most troublesome issue in the area. Secondly, the reparation payments were restructured to make them more German friendly. In the first year of repayment after the Dawes Plan, the maximum amount to be paid was 1 billion marks. During this time, it was hoped and expected that Germany s economy would rise up. Therefore it was decided that further payments after the first year would be 2.5 billion marks. The third decision from the Dawes Plan was the restructuring of Weimar s national bank, the Reichsbank, which would be supervised by the Allies. While this may have been interpreted as direct interference by outside powers, it was not an issue and the Weimar government accepted the terms of the Dawes Plan in September Separate to the Dawes Plan, but vital in reinvigorating Weimar s economy, the United States agreed to loan Weimar Germany large sums of money that would be invested into their economy. Conclusion The delegates of the League of Nations will have to take actions to discuss the Dawes Plan. To find out if it s realistic, possible and just. They will have to decide if they think they should help Weimar from bankruptcy, and why. Or if they should let it pay for the damage it did by itself. The agreements will have to secure the survival of the Weimar state and avoid further conflict between nations, especially the ones directly involved in the conflict since World War I (Example: Poland, France, Great Britain, Belgium) 5

6 Guide Questions: What were the consequences that Germany had to pay after Word War I (WWI) and whom/what established them? How are Charles Dawes and WWI related? What was the main purpose of the Dawes Plan? What was the modus operando of the Dawes Plan? What was the problem with the Ruhr during the Dawes Plan? What was the US involvement in Weimar s economical resurfacing? References: Unknown. The Interwar Years ( ) Oct < History Learning Site. The Dawes Plan of Feb Sept < Unknown. The Nobel Peace Prize 1925 Sir Austen Chamberlain, Charles G. Dawes. 17 Jan Sept < Nigel Graves. International Relations Oct < John D'Clare. What were reparations, and what changes were made to the Treaty of Versailles over this issue in the period ?.. 13 Oct < 6

7 Barry Eichengreen. The U.S. Capital Market and Foreign Lending, Chicago, USA: University of Chicago Press, U.S. Senate. Charles G. Dawes, 30th Vice President ( ) Sept < tm>. 7