Professional Documents
Culture Documents
Peace Treaties and International Agreements of The 1920s Notes 2020
Peace Treaties and International Agreements of The 1920s Notes 2020
CAMBRIGDE 2147
Papers
ZIMSEC 2167
Paper 1
The written paper contains five questions on each syllabus content section A – F.
Candidates answer four questions taken from at least two sections. They must answer at least
one question from section A.
Each question is structured in two parts: Part A and B. Candidates must answer both parts of
their chosen questions.
Part A requires candidates to demonstrate an ability to recall, select, organize and deploy
knowledge of the syllabus content (10 marks).
Part B requires candidates to show an understanding of and the ability to analyze and explain:
cause and consequences, continuity and change, similarity and difference and the motives,
emotions, intentions and beliefs of people in the past (10 marks)
Paper 2
This is a source based paper which contains five questions on a sub section of syllabus content
in section A.
Up to five sources will be set. Both primary and secondary may be used.
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Total for the whole paper is 40 marks and the weighting is 33 %.
Term one
Peace settlements
President Woodrow Wilson of America proposed his famous 14 Points in January 1918. This
was when the end of the First World War was imminent. They are as follows:
The 14 points were idealistic therefore they aimed at preserving self-determination of minority
groups and nations. Wilson was a great believer in the idea of self-determination. This meant
that each nation should have the right to decide for itself how it should be governed. Wilson did
not appreciate how difficult self-determination was in much of Eastern Europe.
The opposite of self-determination was imperialism, the control of many nations by one
powerful empire. The British and the French were imperialists. They were very suspicious of
talk of self-determination. They did not agree with all the 14 Points. Clemenceau asked why
Wilson needed as many as 14 when God had made do with only 10 commandments. France
and Britain were annoyed that the 14 points said nothing about the future of Germany
especially ways of making him pay reparations for starting the war.
The Palace of Versailles is a royal château in Versailles in the Île-de-France region of France. In
French, it is known as the Château de Versailles. When the château was built, Versailles was a
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country village; today, however, it is a wealthy suburb of Paris, some 20 kilometers southwest
of the French capital.
Participants
The Big Three were the great powers that had won the war, U.S.A, Britain and France. They
were represented at the conference by President Woodrow Wilson, Prime Ministers Lloyd
George and Georges Clemenceau respectively. Italy and Japan were the other members which
met daily at the Conference to take all the important decisions.
The Big Three had very different ideas about the peace settlement. The traditional
interpretation of their relationship is that Wilson was the unworldly idealist whose plans were
undermined by the unscrupulous Europeans. Clemenceau was cunning and cynical, determined
that France should have its revenge on Germany. Lloyd George acted as a balance between the
other two, doing his best to make the treaty less harsh on Germany, according to Kelly and
Lacey (2001). Although this interpretation is in some ways valid, the truth is more complicated.
The differences between the Allies were hidden while the war was being fought. The French
and the British did not agree with many of Wilson’s views. However, they had been desperate
to make sure that the U.S.A supported the war. During the war, they kept quiet in public for
fear that disagreement would limit the American war effort. Once the fighting had stopped the
French and the British started to disagree with the Americans.
The Big Three came to realize that compromises would be necessary. Wilson gave way to Italy
and Japan’s territorial demands that violated the principle of self-determination because they
would have refused to sign the treaties. Lloyd George fought hard to keep German border areas
to be given plebiscites but he was also capable of insisting on increases in reparations payments
to suit British interests. When Clemenceau insisted on the German frontier being pushed back
to the Rhine, Wilson threatened to quit the conference and return home. The French had to be
satisfied with the demilitarization of the Rhineland. According to Kelly and Lacey (2001), like all
compromises, the final treaties satisfied nobody.
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Wilson was a man of strong principles who found it hard to accept other people’s views. At
first, he kept the U.S.A. out of the war until 1917. Once the war was won, Wilson wanted a fair
settlement that would guarantee future world peace. In January 1918, he outlined his Fourteen
Points, the principles that he believed should guide peacemaking when the war ended. The
most important was self-determination (people of different national groups had the right to
rule themselves.)
At Paris, Wilson tried to have every decision debated by all 32 nations. But this was too slow
and most nations were interested only in their own problems. Wider issues had to be decided
by the great powers. Wilson was increasingly forced to compromise on his 14 Points and had to
place his hopes in the new League of Nations to put right any problems with the peace treaties.
Wilson’s authority was weakened by lack of support for his ideas in the U.S.A. Many Americans
were determined never to be dragged into Europe’s troubles again. Electoral gains made by his
opponents at home meant that whatever he agreed in Paris might be rejected. In March 1920
the U.S. Senate finally failed to give the majority needed for the peace treaties to be ratified.
Lloyd George became leader of Britain’s coalition government in 1916. In December 1918 his
government registered a massive election victory by promising to ‘squeeze the German lemon
till the pips squeak.’ The British blamed the Germans for the war and wanted them to pay.
Some even suggested that the Keiser (German King) should be hanged. Lloyd George probably
knew early on that a harsh peace would stir up trouble but he was constrained by British public
opinion and election promises. According to McAleavy (2002) Lloyd George was not personally
anxious to punish the Germans severely as he was too weak but this would give France too
much power in Europe.
The chief concern of Lloyd George was to make sure that the British Empire did not suffer as a
result of the settlement. He was determined to preserve Britain’s interests as the greatest naval
power. He disliked Wilson’s idea of ‘freedom of the seas’ which was referred to the League of
Nations for discussion. He also wanted the German fleet sunk. He sought after former German
colonies to be divided up between the winning powers. He desired to make sure that South
Africa, Australia and New Zealand were rewarded with nearby German territories. Both Britain
and France also wanted a share of the former Turkish lands of the Middle East.
By the completion of the treaty, however, British public opinion was shifting and Lloyd George
was prepared to make some amendments to the terms. As a trading nation, Britain knew that
German recovery was essential to the European economy and that large reparations payments
would make this impossible. According to Kelly and Lacey (2001) the British were not prepared
to help France keep Germany weak.
The British government was suspicious of France. Traditionally, France had been an enemy of
Britain. The British did not want a Europe dominated by France any more than they wanted a
German controlled Europe. This was another reason for making sure that Germany was not too
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harshly treated. Lloyd George was also worried that a weak Germany would be unable to stop
the spread of Communism.
Clemenceau became French Prime Minister in 1917 when defeat in the war seemed a real
possibility. He rallied the country and led it to victory. As chairman of the peace conference, he
was personally willing to compromise in order to find a settlement acceptable to all the
victorious powers but he knew what his countrymen expected. France had borne the brunt of
the fighting on the western front. Much of the north east France was devastated. The Germans
had systematically looted areas under their occupation and deliberately destroyed mines,
railways, factories and bridges during their retreat. According to Kelly and Lacey (2001), the
French expected Germany to pay for this destruction and wanted to ensure that Germany could
never invade France again.
Ideally the French wanted to break up Germany into a number of small, weak states. Failing
this, Clemenceau called for Germany to lose the Rhineland, Saarland, Upper Silesia, Danzig and
East Prussia. These areas included much of Germany’s coal and heavy industry.
The French leader disagreed strongly with the U.S.A over the question of compensation or
reparations. The U.S.A. had not suffered economically during the war and had no demands for
substantial reparations.
Clemenceau found it hard to achieve his aims because neither Britain nor the U.S.A. shared
France’s enthusiasm for punishing Germany. Clemenceau’s demand for the German frontier to
be pushed back to the Rhine was bluntly rejected. France was not given the Saar although it did
receive its coal production for fifteen years. The reparations issue was referred to a commission
which did not report until 1921.
When the terms of the Treaty of Versailles became known, it was condemned throughout
France. Within a few months, Clemenceau’s government was overthrown and his political
career ended.
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8. Danzig became a free city under the control of the League of Nations.
9. The Kiel Canal was opened to shipping of all nations.
10. The Union between Germany and Austria (Anschluss) was forbidden.
11. Germany renounced the Treaty of Brest-Litovsk which enabled Eastern European
countries such as Finland, Estonia, Lithuania and Latvia to be independent.
b. Areas lost in Asia, Pacific and Caribbean
Area lost to
Area lost to
Non-Territorial terms
Article 231, often known as the War Guilt Clause, was the opening article of the reparations
section of the Treaty of Versailles, which ended the First World War between the German
Empire and the Allied and Associated Powers. The article did not use the word "guilt" but it
served as a legal basis to compel Germany to pay reparations.
Article 231 was one of the most controversial points of the treaty. It specified:
"The Allied and Associated Governments affirm and Germany accepts the responsibility
of Germany and her allies for causing all the loss and damage to which the Allied and
Associated Governments and their nationals have been subjected as a consequence of
the war imposed upon them by the aggression of Germany and her allies."
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Germans viewed this clause as a national humiliation, forcing Germany to accept full
responsibility for causing the war. German politicians were vocal in their opposition to the
article in an attempt to generate international sympathy, while German historians worked to
undermine the article with the objective of subverting the entire treaty. The Allied leaders were
surprised at the German reaction; they saw the article only as a necessary legal basis to extract
compensation from Germany.
b. Reparations
A committee of Allied businessmen came up with an enormous sum of 6.6 million
pounds. Germany started paying in August 1921 but she failed to afford the huge sum.
This prompted France and Belgium to occupy the Ruhr in 1923.
NB: The U.S.A. came up with economic recovery plans to assist Germany in paying the
reparations. In 1924 under the Dawes Plan, the U.S.A. gave Germany 40 million pounds as a
loan. This was to help Germany to invest so that she could be economically stable to settle
her reparations bill. In 1929, under a similar arrangement, the U.S.A. also gave Germany 60
million pounds under the Young Plan. The repayment was to be in installments until 1988.
c. German army
- The German army was reduced to 100 000 and conscription was not allowed.
- The German general Staff was dissolved.
- The Rhineland was to be occupied by the Allied army for 15 years.
- War plans were forbidden.
- The air force was to be handed over to the Allies.
- Tanks and heavy artillery were forbidden.
d. German navy
- The German navy was reduced only to 6 battleships, 6 light cruisers, 12 torpedoes
and 12 destroyers.
- Submarines (u-boats) were forbidden.
- The naval base of Heligoland in the North Sea was to be demolished.
- The rest of the navy was to be handed over to the allies. Instead of doing this,
Germany sank all their ships in the Scapa Flow.
e. Political institutions
The German monarchy was abolished and Keiser William II abdicated. Germany became a
republic governed as the Weimar Republic. A new liberal constitution, the Weimar
Constitution was established, whereby Germany was to be headed by a president who was
to be elected nationally. The two presidents who were in office are: Friedrich Ebert -1919 to
1923 then Paul von Hindenburg – 1923 to 1934.
The head of the government was to be a Chancellor (equivalent of a prime minister), chosen
from a party with a majority in the Reichstag (parliament). Some of the well-known
chancellors who served in office were: Gustav Stressmann – 1923, Bruning – 1930 to 1932,
von Papen – 1932, von Schleicher – 1932 to 1933 and Adolf Hitler – 1933 to 1934.
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In addition, there was to be two Houses of Parliament, an Upper House (Reichsrat) and the
Lower House (Reichstag)
Fairness
- Germans had difficulty coming to terms with defeat. Although the strict terms of the
Treaty of Versailles aroused much criticism, the treaty makers had not acted foolishly. It
should be underscored that the ‘Big Three’ met after the most terrible war in history.
They were determined to make sure that war would not happen again. Consequently,
Germany had to be weakened to ensure future peace.
- After the loss of so many lives there was a strong desire for revenge amongst the people
of the victorious nations. This was particularly true in France where much of the fighting
had taken place. In Britain there were many people who wanted to see the Keiser
brought to trial and hanged. If the treaty of Versailles is considered in the light of such
views, it can be seen that perhaps it could have been a lot worse for the German people.
- Some of the decisions the peacemakers had to make were extremely difficult. The
Austro-Hungarian Empire was breaking up, large areas of Europe had been devastated,
communism was spreading and Europe’s economy was in tatters. Therefore there was a
need to restore stability, which the peacemakers did.
- The terms of the Treaty were strict but they were not entirely unexpected. When the
armistice was signed in November 1918 the Germans knew they would have to pay
reparations, surrender territory and have their armed forces reduced. These were the
usual consequences of defeat in war. It is reasonable that some historians think that the
Germans might have imposed even harsher terms on the Allies if they had won the war.
- The settlement removed only limited amounts of Land from Germany. In places like
Alsace-Lorraine and the Polish Corridor most people were not German speakers and saw
themselves as French or Polish.
- The basic strength of the German economy was not destroyed by the Treaty of
Versailles. Germany soon recovered its position as the most successful economy in
Europe. As McAleavy (2001) explains, In 1925 Germany was producing twice as much
steel as Britain.
- The German army was reduced in size but the leaders of the German army were not
removed. The army remained a powerful force in German society. The generals were
ready and able to re-build German armed forces when the time was right.
- Kelly and Lacey (2001) concludes by arguing that those historians who have condemned
the Treaty of Versailles have been over critical. Nowadays, most historians think that the
peacemakers did a reasonable job considering the problems they faced.
Non fairness
According to McAleavy (2001) there is no doubt that the treaties which established the peace
settlement at the end of the 1st World War imposed very strict terms upon the defeated
countries.
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According to N. Lowe (2005) the Versailles Settlement was one of the most controversial
settlements ever signed. The settlement was criticized for being too hard on the Germans. It
made another war inevitable and many of its terms, such as reparations and disarmament,
proved impossible to carry out.
- It was wrong to put sole blame for the war on Germany. Other countries had been
aggressive in the years leading up to 1914. One of the causes of the war was imperialism
hence many countries including Britain and France had tried to build up world empires.
- The treaty was unfair because it punished the people of Germany instead of the rulers
of Germany. Reparations hurt ordinary Germans who were not guilty.
- Germany was tricked because her government had been offered justice and fairness by
Wilson when he made his speech about the 14 Points. When the Germans stopped
fighting they expected to be dealt with under Wilson’s terms as there was nothing about
war guilt and reparations.
- The treaty aimed at destroying the economy of Germany. Germany lost all its colonies
and in total, 13 % of its land. (Kelly and Lacey:2001) This was a mistake that would do
no-one any good. People throughout Europe would lose out if there were no successful
German factories and businesses.
- The treaty was a dictated peace (diktat). The Germans were not allowed into the
discussions at Versailles. They were simply presented with the terms and told to sign.
Some historians feel that the Germans were justified in objecting and that it would have
been reasonable to allow them to join in the discussions. This might have led to a toning
down of some of the harsher terms.
- The disarmament clauses were deeply resented. The Germans claimed that 100 000
troops were not enough to keep law and order at a time of political unrest. The
Germans became more aggrieved later as it became clear that none of the powers
intended to disarm.
- Reparations were the final humiliation for the Germans. Many historians agree that the
actual amount decided on was far too high at 6.6 million pounds. Economist J.M. Keynes
had urged the Allies to take 2000 million pounds which he said was a reasonable
amount which Germany could afford.
- The figure of 6.6 million pounds enabled the Germans to protest that it was impossible
to pay. They soon began to default on their annual installments. This caused resentment
among the Allies who were relying on German cash to help them pay their own war
debts to the U.S.A.
- The view held by most historians since 1919 is that the treaties were too harsh and was
likely to lead to a future war. It would only be a matter of time before the Germans, in
particular, set about seeking revenge. It made it clear that there will be vengeance for
the shame of 1919.
OTHER TREATIES
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Territorial terms
a) According to article 177, the Austrian side accepted responsibility for causing the war
along with the Central Powers.
b) The Austrian army was reduced to only 30 000 men.
c) Austria was to pay reparations.
d) The key Austrian industrial areas went to Czechoslovakia and Poland.
e) The union between Germany and Austria was forbidden.
f) The union between Austria and Hungary was forbidden.
Effects
The Grand Trianon Palace at Versailles is the site of the signing of the treaty.
Territorial terms
a) According to article 161, the Hungarian side accepted responsibility for causing the war
along with the Central Powers.
b) The Hungarian army was reduced to 35 000 men.
c) No conscription was allowed.
d) Hungary was to pay reparations.
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e) The Austro-Hungarian army was banned.
f) Tanks, air force and heavy artillery were also prohibited.
g) Further provisions stated that in Hungary, no railway would be built with more than one
track (even going so far as to remove one of the two tracks on one of the lines)
Effects
The signing ceremony was held in Neuilly's town hall (hôtel de ville).
Territorial terms
a) According to article 121, the Bulgarian side accepted responsibility for causing the war
along with the Central Powers.
b) The Bulgarian army was reduced to 20 000 men.
c) Conscription was banned.
d) She was also supposed to pay reparations at a figure of 10 million pounds / 100 million
pounds.
Effects
Al least a million Bulgars went under foreign governments. Therefore Bulgaria condemned
the treaty as unfair.
The representatives signed the treaty in an exhibition room at the famous porcelain factory in
Sèvres, France.
Territorial terms
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a) Eastern Thrace, Aegean islands and Smyrna to Greece.
b) Adalia and Rhodes to Italy.
c) The Straits were to be permanently open.
d) Syria became a French mandate.
e) Palestine, Iraq and Transjordan became British mandates.
f) Dobruja and Bessarabia went to Romania.
a) The Turkish side was forced to accept responsibility for causing the war along with the
Central Powers.
b) The Turkish army was reduced to 50 000 men.
c) Turkey was to pay reparations.
Effects
The treaty violated Turkish national feeling (self-determination). The Turks under Mustafa
Kemal rejected the treaty and chased the Greeks out of Smyrna. The Italians and French
withdrew their occupying forces from the Straits area, leaving only British troops at Chanak.
Eventually, a compromise was reached by the revised Treaty of Lausanne of 1923.
The Treaty of Lausanne was a peace treaty signed in Lausanne, Switzerland, on 24 July 1923. It
officially ended the state of war that had existed between Turkey and the allied British Empire,
French Republic, Kingdom of Italy, Empire of Japan, Kingdom of Greece, Kingdom of Romania,
and Serb-Croat-Slovene State since the onset of World War I.
By this treaty:
According to N. Lowe, “it can be said that the collection of the peace treaties was not a
conspicuous success.” The treaties had the unfortunate effect of dividing Europe into the states
which wanted to revise the settlement and those which wanted to preserve it.
The U.S.A failed to ratify the settlement and never joined the League of Nations. This in turn left
France completely disenchanted with the whole thing because the Anglo-American guarantee
of her frontiers given in the agreement could not apply now.
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Italy felt cheated because she had not received all the territory promised her in 1915. Russia
was ignored because the powers did not want to negotiate with its Bolshevik government.
Germany on the other hand was only temporarily weakened and was soon strong enough to
challenge certain of the terms. Gilbert White argues that, “it is not surprising that they made a
bad peace, what is surprising is that they managed to make peace at all.”
The Washington Naval Treaty, also known as the Five-Power Treaty, was a treaty among the
major nations that had won World War I, which agreed to prevent an arms race by limiting
naval construction. It was negotiated at the Washington Naval Conference, held in Washington,
D.C., from November 1921 to February 1922, and it was signed by the governments of the
United Kingdom, the United States, Japan, France, and Italy. It limited the construction of
battleships, battlecruisers and aircraft carriers by the signatories. The numbers of other
categories of warships, including cruisers, destroyers and submarines, were not limited by the
treaty, but those ships were limited to 10,000 tons displacement.
The naval treaty was concluded on February 6, 1922. Ratifications of that treaty were
exchanged in Washington on August 17, 1923, and it was registered in League of Nations Treaty
Series on April 16, 1924.
Subsequent to the treaty were other naval arms limitation conferences that sought to increase
limitations of warship building. The terms of the Washington treaty were modified by the
London Naval Treaty of 1930 and the Second London Naval Treaty of 1936. By the mid-1930s,
Japan and Italy renounced the treaties, making naval arms limitation an increasingly untenable
position for the other signatories.
It was a naval agreement concerned with the limiting of the size of their fleets/navies. The naval
disarmament was as follows:
Britain 100
Japan 60
France 35
Italy 35
Britain disagreed with the arrangement as she wanted to maintain sea power dominance.
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The Treaty of Rapallo was an agreement signed on 16 April 1922 between Germany and Russia
under which each renounced all territorial and financial claims against the other following the
Treaty of Brest-Litovsk and World War I.
The two governments also agreed to normalise their diplomatic relations and to "co-operate in
a spirit of mutual goodwill in meeting the economic needs of both countries".
It was a spinoff of the Genoa Conference, which included Germany and the Soviet Union. It had
broken down when France demanded that the Soviets assume the prewar debt incurred by the
tsarist regime and on immediate reparations by the Germans to the USSR. The German and
Russian delegates quietly slipped away and met at Rapallo. The Treaty was negotiated by
Georgi Chicherin, foreign minister of the Russian Socialist Federal Soviet Republic, and his
German counterpart Walther Rathenau. Ratifications were exchanged in Berlin on January 31,
1923. It was signed at the Hotel Imperiale in the Italian town of Santa Margherita Ligure, and
registered in League of Nations Treaty Series on September 19, 1923. The treaty did not include
secret military provisions; however secret military cooperation soon followed.
The Commission on Armaments presented a draft Treaty of Mutual Assistance in 1923, which
proposed to make a war of aggression illegal; if a country was attacked, all countries of the
League would send troops to defend it. It was discussed at the League’s Assembly of
September 1923. But the Assembly rejected the draft treaty after objections from Britain,
which feared to commit troops which were needed to defend the Empire.
The Dawes Plan (as proposed by the Dawes Committee, chaired by Charles G. Dawes) was an
attempt in 1924 to solve the World War I reparations problem, which had bedeviled
international politics following World War I and the Treaty of Versailles. It involved availing a
foreign loan of 800 million gold marks, mostly from the USA to Germany.
The Allied occupation of the Ruhr industrial area contributed to the hyperinflation crisis in
Germany, partially because of its disabling effect on the German economy. The plan provided
for an end to the Allied occupation, and a staggered payment plan for Germany's payment of
war reparations. Because the Plan resolved a serious international crisis, Dawes received the
Nobel Peace Prize in 1925 for his work.
It was an interim measure and proved unworkable. The Young Plan was adopted in 1929 to
replace it.
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What had failed about the Treaty of Versailles?
The Protocol for the Prohibition of the Use in War of Asphyxiating, Poisonous or other Gases,
and of Bacteriological Methods of Warfare, usually called the Geneva Protocol, is a treaty
prohibiting the use of chemical and biological weapons in international armed conflicts. It was
signed at Geneva on 17 June 1925 and entered into force on 8 February 1928. It was registered
in League of Nations Treaty Series on 7 September 1929. The Geneva Protocol is a protocol to
the Convention for the Supervision of the International Trade in Arms and Ammunition and in
Implements of War signed on the same date, and followed the Hague Conventions of 1899 and
1907.
It prohibits the use of "asphyxiating, poisonous or other gases, and of all analogous liquids,
materials or devices" and "bacteriological methods of warfare". This is now understood to be a
general prohibition on chemical weapons and biological weapons, but has nothing to say about
production, storage or transfer. Later treaties did cover these aspects — the 1972 Biological
Weapons Convention (BWC) and the 1993 Chemical Weapons Convention (CWC).
A number of countries submitted reservations when becoming parties to the Geneva Protocol,
declaring that they only regarded the non-use obligations as applying to other parties and that
these obligations would cease to apply if the prohibited weapons were used against them.
Locarno is a town in southern Switzerland. The Locarno Treaties were frontier agreements
between France, Germany and Belgium. The Rhineland was to remain permanently
demilitarized. Italy and Britain agreed to guarantee these arrangements. In addition, there was
to be no change to German’s frontiers with Poland and Czechoslovakia. Germany agreed.
How did the Treaty of Versailles’ failure cause the Locarno Treaties?
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These were between France, Poland, Romania, Yugoslavia and Czechoslovakia. France was still
insecure about the Treaty of Versailles hence the need to guard against German aggression.
These countries agreed to protect each other against aggression from Germany, Hungary and
Bulgaria.
France and USA suggested that countries should promise never to fight each other. War was
denounced as an instrument of national policy. Nations were to fight only in self-defense. At
the time, it was looked on as a turning point in history, but in effect it achieved nothing. Of
course everybody disapproved of an aggressive war – but the Pact said nothing about what
would happen if a country was attacked.
The Young Plan was a program for settling German reparations debts after World War I written
in 1929 and formally adopted in 1930. It was presented by the committee headed (1929–30) by
American industrialist Owen D. Young, creator and ex-first chairman of Radio Corporation of
America (RCA), who, at the time, concurrently served at board of trustees of Rockefeller
Foundation, and also had been one of representatives involved in previous war reparations
restructuring arrangement – Dawes Plan of 1924. The Inter-Allied Reparations Commission
established the German reparation sum at a theoretical total of 132 billion, but a practical total
of 50 billion gold marks. After the Dawes Plan was put into operation in 1924, it became
apparent that Germany would not willingly meet the annual payments over an indefinite period
of time. The Young Plan reduced further payments by about 20 percent. Although the
theoretical total was 112 billion Gold Marks, equivalent to US $8 billion in 1929 (US$ 110 billion
in 2016) over a period of 59 years, which would end in 1988. Few expected the plan to last for
much more than a decade. In addition, the Young Plan divided the annual payment, set at two
billion Gold Marks, US $473 million, into two components: one unconditional part, equal to one
third of the sum, and a postponable part, equal to the remaining two-thirds, which would incur
interest and be financed by a consortium of American investment banks coordinated by J.P.
Morgan & Co.
When did Germany finish paying its reparations for World War 1?
When did Germany finish paying its reparations for World War 11?
Germany finished paying it's reparations to Britain, France and the US in 1988. But it still owes
280m Euros which will be paid off by 2034.
It also paid reparations to Israel (450million DM) and to the World Jewish Congress (3billion
DM) to help compensate survivors.
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