Agreement Intended To Settle International Debts From Ww1

The moratorium has been widely supported in both Germany and the United Kingdom. The French, who initially hesitated, finally agreed to support the American proposal. [84] On 13 July, the German darmst-dter Bank collapsed, leading to further bankruptcies and rising unemployment, which aggravated the German financial crisis. [85] Faced with the Great Depression that has now exerted its influence, the Bank for International Settlements has indicated that the Young Plan is unrealistic in the face of the economic crisis and has urged governments around the world to find a new solution to the various debts they owe each other. In January 1932, He said that he would endeavour to completely remove the repairs. His position was supported by the British and Italians and rejected by the French. [86] In March 1930, the German government collapsed and was replaced by a new coalition led by Chancellor Heinrich Brunning. In June, Allied troops withdrew from the vicinity of Mainz – the last area of occupation in the Rhineland – and the government of Brunning raised the issue of the request for further refinement of reparations, but this request was rejected by William Tyrrell, British Ambassador to France. [80] In 1931, a financial crisis began in Germany. In May, Creditanstalt – Austria`s largest bank – collapsed and triggered a banking crisis in Germany and Austria. At the time, he announced that Germany was suspending repairs. This led to a massive withdrawal of domestic and foreign funds from German banks. By mid-July, all German banks had closed their doors.

[81] Until that date, France`s policy was to financially support Germany to help the government of Brunning stabilize the country. Brening, who is now under considerable political pressure from the far right and President Paul von Hindenburg, has not been able to make concessions or reverse policy. As a result, He was unable to borrow money from foreign or domestic sources. Other attempts to obtain UK assistance in ending repairs have failed; the British said it was a common problem with France and the United States. At the beginning of July, Mr. Brunning announced his “intention to aim for a complete overhaul of the jung plan”. [82] Faced with the crisis and the prospect of Germany not being able to repay its debt, US President Herbert Hoover intervened. In June, Hoover publicly proposed a one-year moratorium on war reparations and debts. In July, the “Hoover moratorium” was adopted. [83] Contract negotiations have also been weakened by the absence of other important nations. Russia had fought as one of the allies until its new Bolshevik government withdrew from the war in December 1917.

The Bolshevik decision to reject Russia`s unpaid financial debts to the Allies and to publish the texts of secret agreements between allies on the post-war period angered the Allies.