Summary
Highlights
From 1924 to 1929, Europe saw a gradual reduction in tensions. Initially, economic struggles and border disputes, like the French and Belgian occupation of the Ruhr, caused significant hostilities. However, over five years, several factors contributed to easing these tensions and fostering improved international relations.
Despite the absence of major powers like the USA and Russia, the League of Nations successfully mediated several border disputes. French Representative Joseph Paul-Boncour noted that the League prevented potential conflicts by addressing disputes early, showcasing its effectiveness in promoting peaceful resolutions.
Post-World War I, European economies were severely damaged. Many countries abandoned the gold standard, leading to inflation. A gradual recovery began with government-led reconstruction efforts. Economic confidence returned, marked by Britain rejoining the gold standard in 1925, followed by France in 1926, and Italy in 1927, with most nations complying by 1928.
The USA, undamaged by World War I, became the world's leading economy, entering an economic boom known as the 'Roaring Twenties.' Despite its isolationist stance, the USA played a crucial role in easing international tensions, particularly concerning German reparations, which significantly improved Franco-German relations.
The Dawes Plan addressed three main issues: the Ruhr occupation, Germany's inability to pay reparations, and the USA's demand for loan repayments. Key points included the withdrawal of French and Belgian troops from the Ruhr, restructured German reparations, supervision of the German national bank, and large foreign loans (mainly from the USA) to stabilize Germany's economy. This plan reduced tensions and shifted French foreign policy towards compromise.
Held in Switzerland, the Locarno Conference aimed to establish stability in Europe. Germany, France, and Belgium agreed to respect their joint borders, confirming those set by the Paris Peace Conference. The 'Treaty of Mutual Guarantee' within Locarno stated that Britain and Italy would aid any victim of aggression violating these treaties. German Foreign Minister Stresemann initiated the conference to restore Germany's prestige, leading to Germany's admission into the League of Nations in 1926. While welcomed, the treaties were criticized for not guaranteeing Germany's eastern borders and Britain's limited commitment to military enforcement.
French insecurity prompted Aristide Briand to propose a Franco-American pact to outlaw war. The USA expanded this to include all interested nations, with over 60 countries signing, renouncing war, and agreeing to peaceful dispute resolution. The pact offered France a sense of security and internationally recognized Germany, the USSR, and Japan. However, it lacked enforcement mechanisms, and the USA retained the right of self-defense, avoiding formal commitments.
The Young Plan acknowledged Germany's inability to sustain full reparation and loan payments. Owen Young led negotiations to reduce German reparations from 6.6 billion to 2 billion and removed international controls over the German economy. This demonstrated France's increased willingness to compromise due to international pressure and dependence on U.S. loans.
Post-Ruhr occupation failure, France adopted a more conciliatory approach towards Germany, accepting the Dawes Plan and fostering cooperation with Stresemann. Yet, France remained distrustful of Germany and doubted Anglo-American military support, seeking security through Eastern European alliances (Little Entente) and the League of Nations, though these proved weak. Tensions persisted with Russia, especially after German-Soviet treaties.
Britain remained wary of Soviet communism and its ties with Germany. Diplomatic relations with the USSR were established in 1921, broken in 1927 over fears of Soviet support for Indian independence, but restored in 1929.
Despite practicing isolationism, the USA profoundly influenced world affairs through trade and loans. It sought European economic recovery to ensure war debt repayment and create markets for American exports. U.S. loans to Germany under the Dawes Plan indirectly funded Allied debt repayments to the USA, and U.S. influence was vital in resolving the reparations issue and improving Franco-German relations.
Under Stresemann, Germany compromised to ease economic problems and regain status. They accepted Treaty of Versailles terms at Locarno, recognized reparations, and guaranteed borders with France and Belgium. Germany also joined the League of Nations as a permanent council member in 1926.
The USSR remained largely isolated due to Western fears of communism. While diplomatic ties were restored with Britain, France, and Italy by 1924, distrust persisted. Close German-Soviet relations via the Rapallo Pact and Berlin Treaties alarmed Western Europe. The USSR resented its exclusion from the Paris Peace Conference and the League of Nations, viewing them as tools of British and French power.