THE DAWES PLAN, 1924
- USA lends money to Germany which is spent on building up the economy
- Germany uses increased tax revenues to pay reparations to France
- France pays back war loans to the USA and imports US goods to help rebuild France
Interesting Fact
The main weakness of the Dawes Plan was simple – it was short term.
Quote
"In every man the memory of the struggles and the heroes of the pas is alive. But these memories are not incompatible with the desire for peace in the future."
--Gustav Stressmann
--Gustav Stressmann
Subjunctive Question
What would have happened if they had stuck to this plan instead of shifting to the Young Plan?
Summary
The Dawes Plan is a way for Germany to be able to pay back their reparations for WWI. The USA lends money to Germany which is spent on building up the economy. Then, Germany uses increased tax revenues to pay reparations to France. Finally, France pays back war loans to the USA and imports US goods to help rebuild France.