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Weimar Germany 1924 – 1929.‘How far were successive Weimar Governments able to bring stability to Germany’s foreign relations, economic and political positions in the period 1924 to 1929?”
it had conceded.
1925-30 – Allied Military Withdrawal from Germany – in 1925 the Allies agreed to remove their occupation forces from the Cologne area. In 1926 they withdrew the Inter- Allied military control commission from Germany and reduced the number of occupying troops to 60,000. In 1929 they removed all remaining occupying forces from the Rhineland, and completed this by 1930, this was completed five years ahead of schedule.
1926 – German Membership Of League Of Nations – in 1926 because of an understand at Locarno, Germany became a member of the league of nations, they had a permanent seat on the council. The other permanent members were Berlin, France, Italy, and Japan. Germany’s entrance to the league showed they were no longer and outcast from the international community.
1929 – Young Plan – in 1929, Stresemann agreed to the young plan, named from the American financier who chaired negotiations between Germany and the Allies. It replaced the Dawes plan and intended to be a final settlement of the reparations issue. Germany’s total reparations were reduced from 132 billion marks demanded in 1921 to 37 billion marks, paid in 58 annual repayments, ending in 1988. Te foreign controls within the Dawes plan ended. The young plan was not operative for long. Against a background of economic depression and financial crisis, the allies first allowed Germany to suspend payments (1931) and then to discontinue them altogether (1932).
(c) Stresemann's role proved controversial in a number of ways.
According to White, Stresemann's actions were considered very nationalist.
Stresemann was branded a traitor, committing treason, and agreement to the Dawes plan was like accepting the war guilt clause. Right wing politicians accused him of ‘enslaving’ the Germans.
Stresemann was successful but it came at a price. He was hated by the extreme right wing parties.
Hugenburg directed the ‘hate attack’ on Stresemann in calling him for enslaving the unborn to payments of unjustifiable claims.
The Economy
Foreign investment moved into Germany in 1924-30, this was because Germany had a steady currency, and competitive interest rates.
At this time almost 5 billion $ was invested from abroad.
This investment made a huge impact on the economy. In 1928 production in the industries surpassed pre-war levels. Between 1926 -29 industrial productions was 100%. Export in 1929 was 98% and imports in 1927 were 105.2%.
The working class benefited largely from it. Trade unions succeeded, unemployment however was at an all time low, real wages were then established and also an unemployment act, with labour exchanges and generous pensions and sickness insurance.
However, prosperity was dependant mostly on foreign investment; loans and credits from these countries could be withdrawn at any time.
Governments overspent on their public sector and this outweighed their income. The budget deficit was made up by loans.
These exports were then accompanied by imports and then Germany began importing more than it was exporting, this was a trade deficit.
Trade unions succession meant an increase in wages, however, in order to pay this, workers had to be laid off, this meant unemployment rose [next page]