2.3

1. French and Belgian troops were occupying the Ruhr, which was effectively an act of war and posed a clear threat to peace in europe.

2. Germany claimed that it was unable to make the reparation payments enforced by the TOV.

3. The USA continued to demand full payment on the loans it made to its allies during WW1 even though Britain and France argued that they could only make said payments if they received reparations from Germany.

In London 1924, a conference was held by American banker Charles Dawes and was attended by the USA, Britain France, Italy and Belgium. From this conference arose the Dawes Plan.

1. It was agreed that France and Belgian troops should withdraw from the Ruhr as quickly as possible, and that the region should be returned to full German control.

2. The plan also stated that Germany’s reparation payments were to be restructured. Although no although no reduction was made to the total amount Germany would have to pay in reparations, it was agreed that’s its annual payments would be restricted to what ‘she could reasonably afford.’

3. It was also agreed that Germany’s national bank should be restructured and supervised by representatives of the other countries attending the conference.

4. Germany received a sizeable foreign loan, mainly from the USA; this was intended to stabilise the German economy so that Germany would be in a better position to meet its reparations requirements in the future.

Assured that they would continue to receive reparations, France and Belgium withdrew from the Ruhr. The dawes plan marked a significant change in French policy towards Germany. Previously, France had adopted a hard-line attitude, insisting that Germany paid reparations on time and in full. This had been one of the main reasons for the failure of the Genoa Conference and had led to the French occupation of the Ruhr. This new French willingness to compromise opened the way for further negotiations designed to reduce tensions between French and Germany, thereby enhancing stability within Europe.

The Locarno conference took place in 1925 with the aim of creating greater stability and security in europe. The conference was attended by Britain, Germany, France, Belgium, and Italy.

Germany agreed to respect its joint western fointers with France and Belgium, as German foreign minister Gustav Stresemann used the conference to restore German prestige and privileges as a leading European nation. This meant that the borders agreed at the PPC were jointly confirmed and accepted. No military action could be taken unless it was considered defensive. This greatly reduced the tensions in europe as it gave the French the security they sought after.

The Treaty of Mutual Agreement stated that Britain and Italy would come to the assistance of any country that fell victim to an act of aggression in violation of the Locarno treaties. Britain thus pledged to come to France’s aid in the event of a future German attack. This agreement also gave the French the security they had desired for so long.

Mussolini had adopted a more diplomatic and cautious approach at the Locarno conference. Despite the concern he had caused in 1923 during the Corfu Crisis, Mussolini forged effective working relationships with representatives from Britain, France, Germany, and Belgium. At this time Mussolini was aware that Iatly was in no position, economically or militarily, to challenge the major European powers of Britain and France. He also realised that, as the only fascist nation and with a reputation for aggressive foreign policies, Italy was in danger of becoming an isolated nation, a limiting and vulnerable situation to be in. Mussolini actually played an important role in securing the agreements reached at Locarno, gaining a reputation as a statesman with whom other European nations could safely negotiate.

Stresemann had also accepted the permanent loss of Alsace Lorraine, Eupen, and Malmédy. In doing so, he hoped to win assurances from Germany’s former enemies that there would be no future incursions such as the invasion of the Ruhr. This symbolised the effective working relationship between Aristide Briand, the French foreign minister and Gustav Stresemann.

The treaties were greeted with relief and enthusiasm across Europe, Lord Balfour, the former British prime minister even claiming that “The Great War ended in 1918. The Great Peace did not begin until 1925.” The Treaties also enabled Germany to be accepted as a member of the League of Nations in 1926.

Some Historians pointed highlighted that the treaties gave no guarantees regarding Germany’s borders with Czechoslovakia and Poland. Moreover, it was clear that Britain was not fully committed to taking military action to enforce the agreements made at Locarno. Britain’s responsibilities were limited by clauses requiring aggrieved nations to make an initial appeal to the League of Nations. On top of this, the French were perhaps less sincere than they seemed to be in forging better relations with Germany.

The French still felt insecure despite the agreements reached at the Locarno Conference. This is clear from the fact that in 1927, Briand (French foreign minister) proposed a pact between France and the USA to outlaw war between them.

US president Calvin Coolidge and sectary of state Frank Kellogg were concerned that such an agreement would force the USA to intervene in the event of France being threatened in the future. As a result, they suggested that the pact should be open to all countries wishing to become involved.

The Kellogg-Briand Pact was signed by over 60 nations, including the USSR, France, the USA, Britain, Germany, Japan, and Italy.The pact officially came into effect on the 24^th of July 1929. By signing the pact, nations renounced war and agreed to settle disputes by peaceful means, essentially mimicking the League.

For France, the pact appeared to provide protection from any future wars against German aggression.

For Germany, the USSR, and Japan, it offered international recognition as equal and trustworthy partners.

Britain interpreted the pact as another means, outside the League, to preserve international peace and stability

The USA only signed on the understanding that it retained the right to self-defence and would not be required to take action against any nation breaking the agreement. Retaining its isolationist policy, the USA was not making any formal commitment by signing the pact.

The pact contained no indication of what steps might be taken against any country that subsequently broke the agreement, and this lack of clarity ultimately made it worthless.

The USA knew that, despite the Dawes Plan, once Germany had to meet its full annual reparation payments it would no longer be able to afford its interest payments on American loans. As a result, American banker Owen Young, met to discuss the possibility of reducing the total figure that had been agreed for reparations in the aftermath of the peace talks.

Although negotiations were not easy, especially as the Germans because the Germans added new demands, including the return of the Polish Corridor and Upper Silesia. However, the outcome of these negotiation in 1928 and 1929, was the Young’s plan, which reduced the final sum of German reparations from 6.6 billion to 2 billion. In essence, this was an admission that the figure set in 1919 was too high and unrealistic. In addition, the international controls over the German economy that had been established by the Dawes Plan were dismantled, all significant steps for Germany.

The Young’s plan demonstrated Frances apparent new willingness to compromise. Previously (like at the Genoa Conference for example) France had steadfastly refused to agree to any reduction in reparations. But by 1929, the French appreciated that continuing to insist on full reparations would leave france isolated and ultimately less secure. Even so, France’s acceptance of the plan was largely due to international pressures.

Both Britain and France realised that Germany’s ability to pay reparations at all was entirely dependent on American loans; as a result, they had little alternative but to agree with the US-inspired Young Plan.

The League had proven successful in settling a number of border disputes, the French had shown willingness to compromise, Germany had formally accepted the TOV, and all nations, including the USA, renounced war through the Kellogg-Briand Pact. France had withdrawn from the Ruhr, and Germany increased industrial production, stabilising the german mark. As a result, inflation was more controlled in the European nations and both the public and private sector worked together to rebuild and reinvest. This led to an increase in economic confidence and a return to the gold standard. All of which significantly eased international tensions. Regardless of this, The French still held a deep distrust for Germany and neither the Kellogg-Briand or Locarno treaties guarantees that countries would take any formal action to enforce their terms.

Despite the fact that its members did not include the USA, Russia, or any of the First World War’s defeated nations, the newly created League of Nations was able to negotiate peaceful resolutions to a number of border disputes.

The Economies of the major European nations had been devastated by the First World War. In addition to physical damage, former markets had been lost, primarily to the USA and Japan. The high costs involved in sustaining military action had resulted in high taxation, extensive foreign borrowing, and rising inflation. In order to finance the war effort, countries had left the gold standard. This enabled them to print more paper money but had the serious effect of weakening the value of their currencies, leading to inflation.

Realising that private enterprise would find it impossible to finance the reconstruction of infrastructure and industry, governments took the lead. Both France and Britain, for example, appointed ministers of reconstruction – Louis Loucher and Christopher Addison respectively. Their work was severely hampered by financial constraints, but gradually economic confidence was restored. Entrepreneurs and businessmen were increasingly willing to invest their capital again. Members of the public provided governments with loans by purchasing bonds offering guaranteed interest rates. By 1925, Britain had returned to the gold standard. France followed suit in 1926, Italy in 1927, and by 1928, virtually all of the world’s nations had done so.

Just as in Europe, the ending of the First World War led to a period of high inflation and rising unemployment in the USA. Nevertheless, the USA emerged from the war as the worlds leading economy. No fighting had taken place on American soil, and its industries and infrastructure remained intact. It had gained new markets, and the necessities of war had encouraged it to increase manufacturing production and efficiency. It would also benefit from the repayment of war debts by its former European allies. The USA was about to experience an economic boom, a period referred to as ‘the Roaring Twenties’, characterised by a massive rise in consumerism.

Regardless of its isolationist policies, the USA’s vast financial resources would help to overcome the problem of German reparations and, in doing so, lead to an improvement in relations between France and Germany.