Done By: Maysa Jaman Hema
Tiew Chong Xiang
 Germany was required to pay 20 billion gold
marks.
 In 1921, London Schedule of Payments established
the German reparation figure at 132 billion gold
marks.
 By 1923 Germany had collapsed on its ability to
deliver further amounts of coal, timber, and steel in
line with its reparation quotas.
 In response to this, French and Belgian troops
occupied the Ruhr of Germany. This occupation
outraged the German people.
 They passively resisted the occupation, and the
economy suffered, contributing to the
hyperinflation that followed in Germany.
 The USA wanted to aid Germany to solve the problem of reparation which had
bedeviled international politics following World War I and the Treaty of Versailles.
 It was proposed by the Dawes Committee, Charles G. Dawes as head.
 The Allied occupation of the Ruhr industrial area contributed to the hyperinflation
crisis in Germany. The plan provided an end to the Allied occupation, and a
staggered payment plan for Germany's war reparations.
 This plan had helped resolve a serious international
crisis.
Terms of the agreement of August 1924:
 The Ruhr area was to be evacuated by the
Allied occupation Troops
 Reparation payments would begin at one
billion marks the first year, increasing
annually .
 The Reichsbank would be re-organized
under Allied supervision.
 The sources for the reparation money
would include transportation, excise, and
customs taxes.
 Germany would be loaned 800 Million
Marks from the USA.
 The Dawes Plan provided short-term economic benefits to Germany and lighten
the burden of war reparations.
 But, it made the German economy dependent on foreign markets and economies.