HIS103Y1 Lecture Notes - Lecture 40: Ramsay Macdonald, Dawes Plan, Utopia
Document Summary
Search for security & stability, 1920-1932; part 2. European powers had difficulty maintaining a stable basis for their order. France"s occupation of the ruhr was intended to get the germans to continue their repayment efforts ended in a french political triumph. The french however, had an ulterior motive: to get germany to follow the treaty of versailles. Germany would be in a position to challenge france and undo the 1918 entente victory if. The dawes plan fortunately enabled germany to meet reparation demands. In 1924, this plan restored the european economy. France"s surprising willingness to agree with this plan is explained by france"s own financial crisis at the time. The supporting nations of the french occupation began distancing themselves from france, resulting in the depreciation of french currency. French then turned to foreign sources of credit, such as british loans and credit, to maintain its hardline stance on german reparations.