Dawes Plan
Immediately after the First World War, was a plan by the Dawes Commission, chaired by Charles G. Dawes was. It was called the Dawes Plan. It was formed as a sign of the negotiations between American and German governments. It was a kind of arrangement in which it declared that Germany would be, who would be responsible for repairs to the Allies was. This plan was first agreed in 1924 and there are several reasons why it was proposed, and that is what the article passes. Down there, the correct definition of the Dawes Plan and is also, what factors led to the proposal of the plan.
Dawes Plan (1924): When and why
before we go into detail about what the Dawes Plan and we first try to understand what is signed in the first place. Immediately after the end of the 1st World War II, signed the Triple Entente (alliance between England, France, Russia and the Third Republic), the Treaty of Versailles, a peace treaty between the Allies and Germany in 1919. This contract was written that defeated nation, Germany for all losses that had to pay allied nation during the war. It was a kind of debt that Germany had to pay the war, as they have blamed for the war and all the others have suffered losses. The total amount Germany was asked to pay was about 226 billion German marks of gold. The whole thing was signed in 1921. But only 2 years after everything was decided, Germany stated that they do not pay the money, that Germany was economically strained. A solution was required of the allied support, and the solution came in the form of the Dawes Plan in 1924.
Dawes Plan: What is
When Germany declared that they could pay the resurrection of discussions Dawes Committee. This committee was initiated by both Britain and the United States, 10 members was in that forum, two members each from Belgium, Great Britain, USA, France and Italy, and the committee headed by Charles G. Dawes. Under the plan, it was decided that Germany is on loan from the United States of America, so they could pay back to Britain and France. The main elements of the plan were based on:
Reichsbank under Allied supervision is to be reorganized.
Allied occupation forces had the Ruhr that was another reason for the economic burden for Germany to evacuate.
The compensation will begin at 1 billion for the first year and then annually to 2 billion and a half increase in five years.
The last condition was the main source of the cash consideration is taxes, customs and transportation.
This plan was good news for Germany, because their impact is reduced as repairs, but on the other hand, it was becoming increasingly dependent on foreign markets and economies. Therefore, if the U.S. economy has suffered, Germany was also affected.
Dawes and Young plan Plan
was introduced after the Dawes Plan, it became clear that Germany take time to pay back all loans and losses that occurred because of the war. is why in 1929 the Young Plan was introduced, and the plan was put into force in 1930. This committee was chaired by the second member of the United States within the Committee Dawes, Owen D. Young. This plan further reduces the payment of 112 billion gold marks.
So now you know about the Dawes Plan, which was signed in 1924, immediately after the First World War. It was an important event in American history and world history.
By Taha Mateen
