Simple key points
- The Dawes Plan- 1924
- The Young Plan- 1929
- The Locarno Pact-1925 October.
- Kellogg-Briand Pact-1928 August.
- Rentenmark-old currency was scrapped and replaced with this one.
- Stresemann became Chancellor in September 1923, and died October 1929.
- This improved Germany economy and international relations very much.
- Economic & Foreign policies.
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The Dawes Plan-Economic
- Set by Charles G Dawes, who was asked by the Allies to resolve non-payment in Germany.
- Annual payments were reduced to an affordable level.
- There were American loans.
- Industrial output doubled from 1923-8.
- Imports and exports increased.
- Employment went up.
- Government income from taxation improved.
- Extreme political parties were furious that, yet again, Germany agreed to the reparations.
- Fragile economic recovery depended only on US loans.
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The Young Plan-Economic
- Stresemann agreed this in the last year of his life.
- It was put forward August 1929 by a committee, set up by the Allies, and headed by an American banker-Owen Young.
- It reduced the overall reparations amount from £6.6 billion to £2 billion.
- Also, Germany had another 59 years to pay.
- It reduced the annual amount the government had to pay.
- It was possible to lower taxes.
- It released spending power, boosting industry and employment.
- Annual payments were still £50 million per year.
- Payments now stretched until 1988.
- Extreme political parties were incensed.
- Hitler said that extending the length of payments was: 'passing on the penalty to the unborn.'
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The Locarno Pact-Foreign
- Also known as the Rhineland Pact, a treaty between Germany, France, Britain, Italy and Belgium.
- Germany agreed to keep its new 1919 border with France and Belgium.
- Allied troops left the Rhineland.
- France promised peace with Germany.
- the powers agreed to open talks about German membership of the League of Nations.
- Germany was being treated equally, not dictated to.
- Some resented that fact that the hated Versailles borders was confirmed.
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League of Nations- Foreign.
- In September 1926, Germany was accepted as a member of the League of Nations.
- They were on the Leaue of Nations Council- where the most important decisions took place.
- Stresemann saw it as another step toward equality.
- Some saw it as a symbol of the hated Treaty of Versailles.
- In 1926, Stresemann was given the Nobel Peace Prize as a further sign of international approval for Germany.
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Kellogg-Briand Pact- Foreign.
- In August 1928, Germany was one of th 65 countries to sign this.
- It was an agreement not to use war to achieve foreign policy aims.
- Germany was more respectable as a member of the international community.
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- Confidence was regained in the Weimar Republic.
- This confidence was reinforced when President Ebert was replaced by Hindenburg, a well-respected ex-field marshal of the German Army.
- Economic stability was restored.
- Germany had a place on the international stage.
- The Weimar Republic was being steered from its troubled early years.
- However, when he died of a heart attack, it was a severe blow to the Weimar Republic.
- Later that month, the Wall Street Crash occured.
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