The Dawes Plan 1924

OCR History A Level Democracy and Dictatorships in Germany

The Dawes Plan

1924

Overall amount of reparations

132,000 million marks (£6.6 billion)

When was the amount of reparations confirmed

1921

Schedule

Over 5 years annual payments would rise from 1,000 million marks to 2,500 million then at varying levels according to economic performance

Conditions of the Dawes Plan

Allies maintained control of the:

• Railways

• Reichsbank

• Custom duties

What loan was Germany given

800 million (to help stabilise the currency)

Impact

Helped economic recovery and led to reparations being paid as scheduled

Weaknesses

• Germany was reliant on the USA

• Germany had to pay back interest

• Fulfilment- right wing discontent

• Amount unchanged

Strengths

• Boosts German, French, American and British economies

• France leave the Ruhr

• German economic problems received international recognition

• Germany are able to fulfil treaty; which prevents them being invaded and promotes positive international relations