Ruhr Crisis 1923-1925

Context

Contextual information Ruhr contained ¾ of Germany’s steel and coal production Chancellor Wilhelm Cuno in charge from 1922 to 1923 Germany unlikely to produce a government in support of TOV Occupied by Allies after WW1 1918-1919 226 billion gold marks was the amount for reparations decided by the Inter-allied Reparations Commission Reduced by almost half (132 billion) in 1921, but still in vast debt despite reduction Germany defaulted on timer payments in December 1922 Declared in default by Commission after exaggerated assessment by Germans Germany defaulted again on coal deliveries (34th default in 36 months) Poincare was reluctant to invade and only did so once the British had rejected his proposals for non-military economic sanctions Britain needed reparations also to repay debts, but thought that harsh treatment would push Germany towards Russia

Causes

Causes France felt insecure Rapallo Treaty between Germany and USSR – thought Germany would avoid obligations US separate treaty with Germany 1921 US and GB moving into isolation and failure of Anglo-American Guarantee, which would have given French support under German attack France thought Germany was trying to defy the TOV German exaggeration of their capacity to fulfil reparations Chancellor Cuno was suspected of deliberately defaulting to test the will to enforce the TOV Poincare: ‘escape her obligations’, because ‘she has not been convinced of her defeat’ and so would only did what was utmost necessary France needed the reparations to uphold their own economy and pay back debts to US France able to take reparations in industrial raw materials and produce instead of cash from Weisbaden Accords in October 1921, but this made some factories unable to function, damaging the economy and ability to pay But by end of 1922 mark was practically worthless and so wanted reparations in goods

Causes France desperately wanted to uphold the TOV, to; keep Germany weak and get reparations to pay own debts Refused a request from Germany for a 4 years break – threaten enforcement Wanted to secure borders to have buffer zones Thought that if concessions were made the whole treaty would collapse and another world war would ensue Some say they were actually planning the invasion since 1919, as they felt short- changed by TOV and had huge debts France and Britain were divided on how to deal with Germany France and Belgium wanted to occupy the Ruhr, Britain wanted to lower payments Originated with TOV – Britain thought TOV was too harsh and a hindrance to European recovery Genoa Conference1922 – Lloyd George tried to organise an review of German obligations, but failed when Rapallo Treaty established

Course

Course 11th January 1923: Poincare launched the invasion on Ruhr, with Belgium and support of Italy, with Britain staunchly opposed Created Inter-Allied Mission for Control of Factories and Mines to ensure coal repayments Troops sealed off Ruhr from the rest of Germany and evicted civilians and non-essential workers July 1923: exclusion zone and traffic restricted August 1923: Cuno replaced by Gustav Stresemann Confiscated raw goods and used the railways to get them back to France and Belgium 1925: French and Belgian came to an agreement and withdrew, due to economic failure

German reactions Saw the incident as a struggle against French occupation Press exaggerated/fictional – stories of executions and beating of workers and civilians Deutsche Allgemeine Zeitung: ‘Any great nation that has been driven to despair has always found ways and means for its revenge’ France portrayed as a bully Huge outrage Passive resistance movement organised by industrialists, including those who had investments in Ruhr Government protested that the invasion was against the treaty and secretly urged strikes, promising to pay the wages of strikers In order to hinder production and confiscation Many refused to cooperate, protested, sabotaged and destroyed goods, mines and ships and burnt factories Small band of nationalists attempted sabotage and destruction, for example; derailing trains supplying French troops and contaminating food supplies Most famous sentenced to death – martyr used later by Nazis Several Weimar ministers called it a deliberate act of French aggression against those who were not allowed to defend themselves

Results

Results France lost considerable international support, their relations with Britain and US were hurt and there were increased tensions with Germany German passive resistance resulted in a number of civilian deaths and imprisonments Passive resistance also led to rebellions and rise of extremist groups October: Black Reichswehr rebellion of soldiers Communists declare Rhineland independent as well as taking over governments of Saxony and Thuringia November: Munich Putsch in Bavaria with Hitler Heightened patriotism Fear that Germany would fall to communism Hyperinflation ruined the middle classes and made reparations even more difficult to pay, as government printed more money to pay strikers’ wages Striking and sabotage caused serious damage to economy, more than to French Large unemployment followed The increased inability to pay reparations harmed European recovery The LON was undermined as France blocked Britain and Sweden’s attempts to bring the issue ton the League

Resolution Charles Dawes, an American banker, investigated on behalf ot eh Allied Reparation Committee and published a report in April 1924 with a plan for: annual payments on a fixed and reduced scale with extended deadlines Reorganisation of German State Bank Increased foreign loans 2 mortgages on railways and industry, supplemented by taxes to guarantee reparations American reparations agent to supervise But no fixed date for completion, which bothered Germany ‘Golden Age of Reparations’ began 194-1929 Lots of American capital went into German businesses and government bonds Stresemann called off passive resistance and called for compliance to TOV in Policy of Fulfilment, in order to gain future concessions and revisions (which it did), as well as build up German reputation Locarno Treaty – solidified Germany’s borders as permanent with Belgium and France, which French and British heartedly supported Germany also joined the League and were allowed to rebuild without being a threat to the French