dawes plan

• Led by American banker Charles Dawes, who was who was committee chairman of the Allies' reparations committee finalized the figure of £6.6bn in April 1924, but he made the payments more manageable through the dawes plan
• the Dawes plan stated that the amount Germany paid each year would be reduced each year until 1929 when the situation would be reappraised.
• it was proposed that Germany was to start by paying 1000 million marks to be raised in annual instalments of 2500 million marks per year for 5 years. after this, the sum paid would be relative to german industrial performance
• Germany was to receive a large loan of 800 million marks from the USA to allow them to to start up the plan and begin investing into their infrastructure.
• This was a win for Germany, the plan was accepted in July 1924, showing the Allies acknowledged Germany's problems with reparations payment were real, and allowing the German economy to be rebuilt (factories, jobs, machinery, houses)
• stresemann himself originally opposed the Dawes plan, calling it simply an "economic armistice", only accepting it as a means of gaining foreign loans. the national opposition e.g. DNVP and Nazis attacked this compromise, believing in outright rejection of the treaty of Versailles