To Pay or Not to Pay? That was the Question. Germany and Foreign Policy

Gustav Stresemann German Foreign Minister and Chancellor (leader) of the Weimar Republic (Germany) from 1923 to Awarded the Nobel Peace Prize for his diplomatic work.

Stresemann’s Acheivements Key foreign policy achievements: - Locarno Treaties German entry into League of Nations Treaty of Berlin Negotiating the end of Allied Occupation of Germany

Stresemann and Government When the German government fell as a result of the inflation (a rise in the general level of prices of goods and services in an economy over a period of time), a new government (the democratic Weimar Republic) was formed by Gustav Stresemann.

Stresemann and Government Under this new government Gustav Stresemann: –Announced Germany would pay reparations. –Introduced a new currency called the Rentenmark. –Attempted to cooperate and participate in international affairs.

Stresemann and Foreign Policy Stresemann aimed to restore Germany’s position in the world. He hoped that cooperation would lead to fairer treatment of Germany and would speed up Germany’s recovery. He aimed to build closer links with the USA, the USSR and France. He aimed to end Germany’s diplomatic isolation. He pursued a policy of Erfüllungspolitik (fulfillment), whereby he advocated cooperation with the other powers and compliance with the Treaty of Versailles.

Treaty of Berlin, 1921 The Treaty of Peace with Germany or the Treaty of Berlin. Signed on August 25, Were terms used to describe the separate post- World War I peace treaty between the United States and Germany.

Washington Naval Conference, 1922 The Washington Naval Conference also called the Washington Arms Conference, was a military conference called by President Warren G. Harding. Held in Washington from 12 November 1921 to 6 February 1922 and was conducted outside the auspices of the League of Nations.

Washington Naval Conference, 1922 Attended by nine nations: United States, Japan, China, France, Britain, Italy, Belgium, Netherlands, and Portugal. It was the first international conference held in the United States and the first disarmament conference in history.

Re-organizing Reparations The Versailles Treaty had determined that Germany should pay reparations/money owed to the Allies for war damage. The figure was set at £6600 million in 1921 ($400 Billion US Dollars). –Stresemann decided that he had to address the reparations issue.

Economic Ruin and a Moratorium In 1922, Germany defaults on reparations and asks for a 3-year suspension/moratorium on payments = they could not pay. –Britain agrees. –France and Belgium do not.

Occupation of the Ruhr The Occupation of the Ruhr: –The industrial heartland of Germany. – : by troops from France and Belgium. –Was a response to the failure of the German Weimar Republic under new Chancellor Cuno to pay reparations.

The Ruhr Germany

Occupation of the Ruhr –Forced the German workers to produce products. –Allies could collect reparations. –There was passive resistance, + strikes = the French tried bringing in their own workers.

Occupation of the Ruhr –Led to a collapse of the German economy. –There was massive inflation + large increases in unemployment. –Germany was unable to pay any reparations.

The Dawes Plan, 1924 Stresemann negotiated a more rational payback schedule and secured a large loan to help stabilize Germany’s economy = The Dawes Plan. –Accepted the plan = resulted in the French Army withdrawing from the Ruhr. –The plan helped to make Germany’s economy less vulnerable and meant reparations could be paid on schedule.

The Dawes Plan, 1924 An American plan (Charles G. Dawes, an American banker) for the restructuring of reparation payments = reduction/spread over years. –The Americans involved themselves because they wanted their War Debts to be repaid so they adjusted Germany’s ability to pay. –Unsuccessful = followed by the Young Plan.

Allied War Debts –War debts: Money owed by Allies to each other. USA only creditor and would not cancel. Note: The collection of US loans to Britain and France could only be repaid if Germany paid reparations to GB + Fr.

Dawes Plan’s Five Points Dawes came up with a five point plan which left the total of reparations unchanged: –1) France and Belgium (Allied forces) would evacuate the Ruhr (by 1925 they were all out). –2) German Government pledge government revenues for reparations. –3) German payments should begin at $250 million and build to $600 million. –4) Payments were still to be tied to German prosperity. –5) A foreign loan of $200 million was offered to get Germany started.

Locarno Pact, 1925 Introduced an era of European affairs that brought an air of optimism to Western Europe. It was a series of treaties that included the following:

Locarno Pact, 1925 –The Locarno Pact: Britain, France, Belgium, Italy and Germany agreed to guarantee existing frontiers and demilitarization of the Rhineland. Germany accepted their western borders and all sides rejected the use of invasion.

Locarno Pact, 1925 –The Demilitarization of the Rhineland: The German Rhineland was made a demilitarized zone after World War I by the Treaty of Versailles in 1919 and was then occupied. The occupying armies consisted of American, Belgian, British and French forces - acted as a buffer zone = restrict/segregate regions.

Locarno Pact, 1925 –France, Britain and Belgium agreed not to make war. –Brought security and hope for lasting peace.

The League of Nations (1926) Germany finally was permitted to join the League in 1926: –Was recognized as a legitimate and stable power. Given great power status on the League Council: –Given the right to veto (to stop with authority).

Kellogg–Briand Pact, 1928 Named after its authors: Frank B. Kellogg and French foreign minister Aristide Briand. The Kellogg–Briand Pact was an international agreement in which signatory states promised not to use war to resolve "disputes or conflicts of whatever nature or of whatever origin they may be, which may arise among them".

Kellogg–Briand Pact, 1928 Parties failing to abide by this promise "should be denied the benefits furnished by this treaty". It was signed by Germany, France and the United States on August 27, 1928.

The Young Plan, 1929 Stresemann helped to negotiate the Young Plan in –The Weimar Republic had paid it’s reparation payments on schedule since 1924; however, the debt was still a burden. Another plan introduced at the start of the Depression by another American banker, Charles Young.

The Young Plan, 1929 –Cut reparations in total to $29 billion including interest, reduced annual payments, ended Allied supervision of payments. It would have taken 59 years to pay back (1988). –Allied occupation of the Rhineland was to end/ secured the withdrawal of Allied troops from Germany (1930). This was carried out and the Allies lost their last pressure point to make Germany pay.

Stresemann’s Foreign Policy Helped … Germany seen to be stable enough to be trusted with it’s own affairs. The Dawes and Young Plans helped to make the German economy more stable. Note: Would fall apart with the Great Depression.

Stresemann’s Foreign Policy Helped … The Locarno Pact and membership of the League of Nations helped to improve relations between Germany and other important nations. –Both of these moves highlighted Germany’s commitment to a peaceful future and also helped Germany to raise it’s own issues with the other powers.

...while it also hindered Failed to achieve significant revision of the terms of the Treaty of Versailles.

...while it also hindered Failed to achieve widespread support from the German population: -Right wing opponents argued that decisions like the Locarno Pact and the Young Plan were compromises, and made Germany look weak.

...while it also hindered -The Nazi Party was involved in opposition to Stresemann’s plans. -The majority of Germans felt that Stresemann had failed to restore national pride.

In your opinion, did Stresemann’s Foreign policy decisions HELP or HINDER the Weimar Republic?