Dawes' plan besides had its crucial anti-Polish dimension, but I will compose about it soon (PZ)
Today, in many Russian textbooks of past (national, foreign, global) "Dawes Plan" (PD) is mentioned only in 1 sentence, without deciphering and detail. However, the function of this plan in modern planet past is hard to overestimate. This year is 100 years since the PD entered into force. Good reason to refresh the memory of the past of preparation, acceptance and implementation of PD.
In short, PD is the plan of the Anglo-Saxon elite, which became the first phase of German preparations for planet War II. Germany, as a country that lost the First planet War, at the Peace Conference in Paris (1919) was sentenced by the winning states (mainly the "Great Four"—the United States, Britain, France and Italy) to pay compensation to the winners. The amount of reparations granted to Germany was stunning: 269 billion marks in gold. In order to make this number readable to the reader, I will convert it into physical units: with pre-war gold content in the German mark, the size of the reparation demands against Germany amounted to about 100,000 tons of this noble gold. By comparison, on the eve of planet War I the authoritative gold reserves in Germany were around 1,000 tons. According to experts from any historians, Germany’s yearly gross home product on the eve of planet War I was around 50 billion gold brands.
The German economy in the first years after the war was in a dire state. Germany was incapable to pay any crucial amount of compensation. She herself needed money to recover. Moreover, among the winning countries there have been sharp contradictions and conflicts concerning the priorities of their reparation claims against Germany (there has been a figurative fight for a seat in a queue). peculiarly heated disputes on this issue have intensified between Britain and France. The United States was not active in this argument, generously refusing reparation. At the same time, France was ready to " milk a German cow" to introduce a strict business government in the Weimar Republic. The reaction pressures on Germany from the winners did not let the German economy to revive and worsened the socio-political situation in the country.
After any time, the winners were forced to admit the unreality of their reparation demands against Germany. After the Paris Peace Conference, a number of another global meetings were held, which discussed the issue of reparation (total amount, payment deadline, grace possibility, etc.), as well as the business government German economy and its general state. These issues were besides on the agenda of the Geneva Conference in 1922.
In the autumn of 1923, the discussion on the issue of reparation reached a fresh level. London saw the increasing chaos in Germany as a threat to all Europe, including Britain. On October 12, London made an authoritative appeal to its abroad partner, the United States, with a proposal to organise an global reparation gathering with the mandatory participation of Washington. It is worth noting that London's appeal besides focused on the fact that solving the problem of reparation would have a direct impact on the ability of European allies to pay their commitments to the United States for military loans and loans (Washington refused to participate in the reparations from Germany, but in the case of loans to allies he had no intention of making any concessions).
Apart from quite a few details, I note that Washington has accepted the invitation of London to join in resolving issues concerning German reparations. An global committee of experts on compensation was set up (which formed respective subcommittees). The committees were held in London from 14 January to 9 April 1924. The president of the first subcommittee (where the main works of the full committee were concentrated) was elected by American Charles Dawes, a erstwhile lawyer who became a general during the war). Dawes was associated with the banking community (the Morgan Group). Expert attention focused on the question of the stabilisation of the German brand. American capital saw Germany as a possibly crucial investment area, but specified investment required a unchangeable national currency. The UK was afraid due to the fact that the falling brand helped stimulate German exports. German goods on planet markets proved to be more competitive than English goods.
The decisions of the committee were formalised in the form of a paper called the "expert report", which later became known as the "Dawes Plan". 1 of the main provisions of this plan was the conclusion on the request to reconstruct the financial and economical unity of Germany as a condition for brand stabilisation. In order to strengthen the brand, it was recommended to organise an global debt for Germany of 800 million brands. any types of debt collateral were besides discussed – duties, excise duties, the most profitable items of the State Treasury were recommended to the Commission for compensation of the creation of a public limited liability company to which all German railways should be transferred for 40 years. All functions related to the issue of money in Germany were to be transferred to a bank controlled by the Allies. Besides, the full German economy was under the control of the Allies.
The Dawes Plan so provided for the reconstruction of the German economy to the degree essential to enable it to meet its reparation obligations. seemingly the allies (mainly the US and the UK) concluded that without external financial assistance Germany would not be able to pay the reparation. In another words, a exhausted cattle had to be fed first and then milked. Basically, Dawes' plan was a triumph for the Anglo-American bloc over France. He forced Paris to abandon the "direct action" methods which almost killed the German "cow" and led Europe to a fresh war.
The final coordination and approval of the "Dawes Plan" took place at the London conference in July and August 1924. quite a few fresh faces showed up at this meeting. Britain was represented by the fresh Prime Minister James MacDonald (the country's first Labour organization Prime Minister in history), who came to power in January 1924, replacing Baldwin. In France, in May 1924, Poincarégo was replaced by Prime Minister Edouard Herriot, who headed the government of the alleged "left block".
The results of the London Conference came down to the adoption of the "Dawes Plan", after any explanations. The conference rejected the method of an independent (one-sided) solution to the reparation issues by France. It was decided that France would retreat the business forces from Germany within a year. It is worth noting that from the London conference in 1924 the United States began acting as an active arbitrator in Anglo-French relations. In particular, an arbitration panel was set up, to which Germany could address in respect of compensation and supply payments. The U.S. typical had a decisive vote on this committee. The French doctrine of "economic repressiveness towards Germany" was replaced by the Anglo-Saxon concept of "rebuilding the German economy".
Washington's European allies were afraid about the anticipation of increased competition from German goods on planet markets. no of them wanted to step down. And here the allies proved rather agree that the russian marketplace should become a abroad "market" for the German economy. The ingenuity of the “Dawes Plan” was that it not only eased the “pressure” Germany to conventional markets where allied countries settled, but besides aimed to address the "Russian question" in a way that is beneficial for allies. The movement of German goods into the russian market, according to the authors of the plan, would supply a credible warrant that the USSR would stay an economically weak country. The German competition, according to the authors of the Dawes Plan, was to neutralize all attempts by Moscow to make a strong and independent economy.
J. Stalin immediately reviewed the anti-Soviet essence of the "Dawes Plan". In his study of the 14th gathering of the All-Union Communist organization of the Bolsheviks on 18 December 1925, he noted: “Dawes' plan, drawn up in America, is as follows: Europe pays back public debts to America at the expense of Germany, which are obliged to pay the reparation of Europe, but since all Germany is incapable to pump this amount out of empty space, Germany must receive a certain number of free markets, not yet occupied by another capitalist countries, where they can draw fresh strength and fresh blood to pay compensation. In addition to respective smaller markets, America here refers to our Russian markets. They must remain, according to the Dawes Plan, supplied to Germany so that they can compression something out and gotta pay Europe's compensation, which in turn has to pay America according to national debt. Describing the Dawes Plan in the part concerning our country, Stalin called him “a decision without a host”. ‘Why? due to the fact that we do not want to become an agricultural country for any another country, at least for Germany. We will produce cars and another means of production ourselves. So counting on us to agree to transform our country into an agrarian country in relation to Germany, it means counting on it without taking account of the host. In this part, Dawes' plan has clay legs.”
The calculation of the authors of the Dawes Plan regarding the usage of the russian Union in the interests of the West failed. The PD became an additional impulse to prepare the USSR for industrialization.
Thanks to PD, the Weimar Republic could pay at least part of the reparations. During the period of the Dawes Plan from 1924 to 1929, Germany paid more than 10 billion reparations brands. The winning powers were able to return military loans received from the United States. At the same time, loans were actively pumped into the German economy. In the first year of implementation of the PD Germany came to repay 200 million gold brands in its own scope , the remainder covered with loans . By 1929, loans of 21 billion brands came mainly from the United States to Germany. It was almost exclusively American and British money. In the United States on October 10, 1924, a evidence was made in 12 minutes for a stabilization debt for the German brand, which gave a much larger amount than the 800 million brand plan. According to German author W. Link's calculations, in just 5 years (1924–1929) Germany received 135 short-term loans of $15 billion from the United States. 1 of the “Dawes Plan” developers, German banker Schacht noted in 1929: “Germany received as much abroad loans in 5 years as America received in the 40 years leading up to planet War I”. any historians claim that PD successfully eliminated the reparations. Indeed, the amount of loans received was more than twice as much as the amount of reparations for the same period. In fact, compensation was paid not from interior sources but from external sources.
The PD was considered to be a adequate warrant to import capital into Germany. The United States began actively investing its capital. By mid-1930, 27 billion brand loans were invested in the German manufacture itself, of which 70% came from US capital.
This enabled the German manufacture to completely refurbish its material base and make the basis for the future restoration of military production. At the same time, technology for military production was sold to Germany, and most companies were owned by American industrialists. In 1929, a large part of German manufacture was owned by various American companies. Standard Oil (Rockefellers) controlled the German oil refining manufacture and the production of synthetic coal gasoline. Morgan owned the chemical industry, “I.G. Farbenindustrie” Through an American ITT communications company, 40% of the German telephone network and 30% of the shares in the company producing Focke-Wulf aircraft were controlled. Through General electrical Morgan, he controlled the German radio and electrical manufacture of AEG, Siemens and Osram. The Opel Company was controlled by General Motors. In 1929 construction of the Ford mill in Cologne began. Until Hitler came to power, specified key branches of the German industry, specified as oil refining and synthetic fuel production, chemical, automotive, aviation, electrical engineering and radio equipment, and a large part of mechanical engineering were under the complete control of American financial capital. A full of 278 companies and corporations, as well as key banks specified as Deutsche Bank, Dresdner Bank, Donat Bank and a number of others. In assessing the results of PD, American investigator Ralph Epperson said, “Without the capital provided by Wall Street, there would be no Hitler and planet War II” (Epperson R. The Invisible Hand. English translation. 2nd St. Petersburg, 1999. p. 294).
The next step in preparing Germany for Hitler's emergence to power and the outbreak of planet War II was Young's Plan, which replaced Dawes' Plan in 1929. I'll tell you about this fresh plan separately.
Written by W. J. Katasonov
(PZ)
