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Summary Areas of Difficulty due to Treaty of Versailles

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Areas of Difficulty due to Treaty of Versailles

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Areas of Difficulty due to Treaty of Versailles

Anglo-French Difficulties: Reparations: Poland’s Boarders
● Lloyd George felt the ● 1921-23 saw Changing:
treaty was too harsh economic despair in ● Through self-
and feared future war Germany with the war determination, Eastern
and a communist debt and crippled Prussia were to hold a
revolt in Germany economy plebiscite over
● He understood the ● July 1922= already whether to be a part of
need for security in behind on reparations Germany or Poland
France but would have and said they couldn’t ● Held by Gemran
preferred German limit make any more until officials on 11th of July
on armed forces and the next year or so 1920
lowering reparations to ● By 1923 the allies had ● 90% of people voted
help French and twice reduced the to join Germany
German Economy reparation amount and ● In 1922, Posen was
● Clemenceau was not they had realised that, lost to Germany
fair and felt the in reality, Germany ● 15th of March 1923
German loss of land would never be able to the Polish boarders
was not enough and pay were fixed
the Rhineland should ● Germany resented
be permanently paying the reparations
demilitarised as they and deliberately paid
thought Germany got as little as possible
off lightly
The Occupation of the Ruhr and Its Consequences:
● On the 11th of Januaury 1923, French and Belgain troops invaded the Ruhr (the
heart of German industry) after losing patience of lack of reparations
○ Their aim was to run the industries for themselves and take the goods in
place of the unpaid reparations
● The workers responded by striking using a passive resistance
● This event instigated the collapse of the economy
○ Followed by Hyperinflation and the printing of more money to pay off
reparations
■ Bread was 4 marks in 1921 and by 1923 it was 1.5 million marks
● Reparations soon became very unpopular in France and Germany
● August 1923 saw Stresemann becoming chancellor
○ Wanted to fix the economy and develop less hostile relations with countries
○ Persuaded the USA to set Dawes Plan
● By 1924, the Dawes Plan was set up by USA
○ Restored the economy using US loans but still had to make reparation
payments
○ Allowed troops to leave the Ruhr in August 1925
● Germany began repaying the reparations which meant they were allowed to build
up relations with other countries

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