- Created by: revision543
- Created on: 20-03-21 17:11
Dawes Plan- In 1924, Charles Dawes, an American banker, designed a plan so Germany could pay its reparations.
- Instalments were temporarily reduced to £50 million a year
- US banks agreed to make loans to the German industry. The allies felt more confident that they would get their reparation payment.
It was a success for Germany because the currency was stabilised and inflation was under control. Also, it helps decrease unemployment and Germany was able to meet the Treaty's obligations
In August 1929, a committee, set up by the Allies and led by an American banker called Owen Young, proposed a plan.
- It reduced the reparations debt from £6.6 billion to £2 million.
- The payments could be made over a longer time (up…