AP US History Mr. Melvin Unit 6, Reading 2

 1929 – policy marked with goodwill and peace Believed – last major war fought Europe would take care of itself  Latin America and Asia, with occasional US advice  Expected arms race to stop Kellogg-Briand Pact?

 Went on 10-week Latin American tour  Promised not to intervene in affairs  Secretary of State (Stimson) announces recognition of de-facto governments  Repudiated Monroe Doctrine  Removed marines from Nicaragua

 50 Latin American revolutions took place  Kept his word – hands off  Revolts sometimes led to stoppage of debt payments or nationalization of US assets  Better relations with Latin America

 U.S., England, and Japan – continue 5 Power Treaty on capital ships  US & England – formula to limit smaller ships  Japan’s ratio #  Gave Japan equal number of submarines

 France refused to limit naval production Threat of Fascist Italy  All powers created “escalator clause” Allow major powers to increase fleets if their national security was ever threatened

 Financial Panic in Europe by 1931 Cause: US investors cut of loans to Germany  No reparations payments  Allies couldn’t pay back debts to U.S. (WWI)  Hoover – 1 year moratorium on debt payments and reparations June 1930

 US banks – lent $1.7 billion without collateral European bank closings made debt collection impossible  July 1930 – Stimson “Standstill” Agreement Froze private debts – gave bankers time to protect assets Extended through March 1933

 Standstill Agreement didn’t stop panic  Investors began hoarding money  Runs on banks – Made every major country except Italy, France, and US off gold standard Led to countries depreciating the value of their $

 Every currency has a different value.  Thing that makes them comparable is gold.  Makes it easy to convert  Going off gold standard = floating currency exchange rates & values

 High U.S. tariff made international trade difficult (Hoover failed to lower)  Lausanne Conference (1932) G.B. & France agreed to scale down reparations IF U.S. scaled back its debts Hoover & Congress refused Led to…  Nations defaulting on loans  Bad feelings between U.S. and Europe  Countries not doing anything to stop Japan’s aggression

 Since 1905: Japan controlled economy of Southern Manchuria Let China politically claim it, as long as it didn’t interfere with Japan’s economy

 1920’s – Chaing Kai- shek took control of Chinese government Wanted to regain full control of China again  Russians were building a RR where its Pacific station was near Manchuria Led to Japanese sending more troops to Manchuria

 Fall 1931 – Japanese military took control of government  Sept – occupy Shenyang & other Manchurian cities (political control) Violated Kellogg-Briand Pact & 9 Power Treaty

 China turns to League of Nations for help Members paralyzed by depression  January 1932 – Japanese continue to advance in Manchuria Stimson – sent notes to both (Non-recognition doctrine)  U.S. would not recognize any territory change brought about by force  Anything that impaired U.S. trade  Anything that took away Chinese territorial independence

 Late Jan – Japan invades Shanghai Kills thousands of civilians  Feb – Stimson reiterates non- recognition and asked other countries to help  Nobody did

 League of Nations voted to adopt Stimson’s non-recognition doctrine Named Japan aggressor and called on them to return Manchuria  Japan just quits League

 1933 – Congress passes bill giving Philippines its independence Threw islands to mercy of an aggressive Japan

 Nazi Party – National Socialist Worker Party  Mussolini’s Fascist Party

Characteristics:  Powerful Nationalism  Disdain for Human Rights  Identification of Enemies or Scapegoats  Military Supremacy  Sexism (Male-dominated)  Control of Mass Media Outlets (Propaganda)  Obsession with National Security (Anti-Communist)  Usage of Secret Police to keep order  Intertwining of Religion & Government (Single Leader)

 World Disaramament Conference (1932) France wanted more security from Germany US wouldn’t give it  Hitler & Nazi Party controlled Germany by LEGALLY