24.1 The Search for Stability EUROPE AFTER WORLD WAR I.

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24.1 The Search for Stability EUROPE AFTER WORLD WAR I

I. Treaty of Versailles  conditions regarding Germany  war guilt  reparations  loss of military power  new nations (see next slide) – a buffer zone between Germany & the USSR  Alsace-Lorraine given back to France

 League of Nations  the U.S. did not join the League – even though Wilson proposed it  opposition to Article 10 in the League Covenant, which potentially committed member nations to military actions without a declaration of war  the U.S. signed separate peace treaties with the Central Powers  weakened the League and damaged its credibility

II. Problems in Germany  Problem #1 – Government  the German monarchy had ended with World War I  Weimar Republic – the new democratic govt. of Germany  a parliamentary system  multi-party system, leading to coalition govts.  president: Paul von Hindenburg (WWI military hero)  foreign minister: Gustav Stresemann ( )  established a new German currency

 Problem #2 – Anger  feelings of betrayal – “stab in the back” theory  harshness of Treaty of Versailles

 Problem #3 – Reparations  France wanted to cripple Germany & insisted upon payment  Allied Reparations Commission (1921)  Decided how much Germans had to pay  Germany forced to pay 132 billion marks ($33 billion)  annual payments of 2.5 billion marks  Germany made the payment in 1921, but ceased to make the payments in 1922

 Problem #4 – Inflation  Definition – rise in prices  influenced by political instability in the Weimar Republic  made it difficult for Germany to pay back its debts  Germany’s solution – print more money... which made the currency nearly worthless

III. Solutions  The Dawes Plan (1924)  reduced the German reparations  set up a payment schedule on a sliding scale  arranged for Germany to receive private loans from the United States  Germany would pay reparations to GB & France  France & GB would then repay their debts to the U.S.  increased American financial investment in the Germany economy

 Treaty of Locarno (1925)  between Germany & France (negotiated by Stresemann & Briand)  formalized the borders between Germany, France & Belgium  Stresemann & Briand won the 1926 Nobel Peace Prize for their efforts  the “spirit of Locarno” gave Europeans a sense of security & stability

 Germany joined the League of Nations in 1926  Kellogg-Briand Pact (1928)  Sec. of State Frank B. Kellogg (U.S.) & foreign minister Aristide Briand (France)  “condemned and renounced war as an instrument of national policy”  signed by 63 nations  nothing was said if pact was violated

 the League Covenant did not require nations to reduce their military forces  AND – the Great Depression led to increased instability in Europe and the United States  bank failures  high unemployment (25% in U.S. & GB; 40% in Germany)  John Maynard Keynes’ solution  deficit spending – governments should finance such projects even if it had to go into debt.

IV. Govts. in France & GB  France was the strongest power on the European continent after WWI  formed the Popular Front government in June 1936  a coalition of Communists, Socialists & Radicals  introduced the French New Deal  included collective bargaining rights for workers  40-hour work weeks  minimum wage guarantees

 Great Britain initially faced high unemployment after WWI  had been unable to maintain their international markets during the war  the Labour Party & the Conservatives were the 2 dominant political parties  John Maynard Keynes’ economic theories  very influential to Franklin D. Roosevelt & the U.S. New Deal  1922 – Great Britain granted the southern part of Ireland full autonomy  result of years of warfare  southern Ireland was predominantly Catholic