The+Lausanne+Conference

The Lausanne Conference was a 1932 meeting of representatives from Great Britain, Germany, and France that resulted in an agreement to suspend World War 1 reparations payments imposed on the defeated countries by the Treaty of Versailles. The conference was held from June 16th to July 9th, 1932, it was named for its location in Lausanne, Swiss.

A moratorium had been placed on the war reparations payments in 1931 and a year later the delegates to the Lausanne Conference realized that the deepening world financial crisis in the Great Depression made it nearly impossible for Germany to resume its payments. However, Britain and France and other Allies had borrowed heavily to fight the war. Therefore, the delegates came to an informal understanding that the permanent elimination of Germany's debt and war reparations would be subject to reaching an agreement with the US with respect to their outstanding war debts.

In December 1932, the US congress rejected the Allied war debt reduction plan, which technically meant that the war reparations and debt reverted to the debt reduction previously granted Germany by the 1929 Young plan. However __**the system had collapsed, and Germany made no further payments. By 1933, Germany had made World War 1 reparations of only one eighth of the sum required under the Treaty of Versailles. (Failure)**__