The+Dawes+Plan


 * The Dawes Plan**

The Dawes Plan was attempt in August 1924 between Germany and the US government; it was resulted from Germany's failure to pay its World War I reparations for the Triple Etente. This involved Germany for paying reparations until 1929, when the situation would be reappraised. The scale of the reassessment is worthy to note, reparations payments in 1922 had been some $2 billion, the figure for 1914 was set at $50million.

After five years, the plan proved to be unsuccessful, because it made the German economy dependent on foreign markets and economies, which then the problems with the U.S. economy (such as the Great Depression) would later severely hurt Germany’s economy as it did the rest of the western world, which was subject to debt repayments for loans of American dollars. Therefore, the Young Plan was then adopted in 1929 to replace it.