The Dawes Plan - 1924

• In April 1924, Stresemann agreed to the Dawes Plan
• Under the Dawes Plan, reparations were temporarily reduced to £50 million per year
• The US would also loan Germany £25 billion between 1924 and 1930
• This helped reassure the Allies they would receive their reparation payments, leading to the French agreeing to leave the Ruhr
• This led to many improvements in the Weimar Republics economy

  • Industrial output doubled between 1923 and 1928
  • emploment, trade and income from taxation increased
• The Dawes Plan also led to increased foreign investment in Germany and helped to improve its international standing.
• The recovery from the Dawes Plan was fragile and it depended heavily on american loans