The issue of German compensation was also a hotly debated issue at the Paris Peace Conference.

France demanded that Germany compensate the victorious country for all war costs and losses as an important means to weaken Germany.

France proposed a total of 600 billion to 800 billion gold marks, equivalent to 15 billion to 20 billion US dollars.

The total amount of compensation recommended by the special committee of the Paris peace conference is 480 billion gold marks, or 12 billion US dollars.

Britain and the United States claim that the amount of compensation should be commensurate with Germany’s ability to pay.

As for the share of compensation distribution, Britain advocates the principle of distributing compensation according to military expenditure, and proposes that France get 50%, Britain 30% and other countries 20%.

France stressed that it suffered the most from the war, insisting that it deserved 58% and Britain 25%.

The United States tried to compromise, advocating 56% for France and 28% for Britain, but opposed Britain and France linking the repayment of US debt with the issue of compensation.

Finally, it was agreed that the total amount of uncertain compensation in the peace agreement should be submitted to a special compensation commission for study, and the exact request should be submitted to the German government no later than May 1, 1921.

Huge reparations led to hyperinflation in Germany.

Therefore, on January 6, 1921, British Prime Minister Lloyd George and French Prime Minister Berian held a meeting in Chana to discuss Germany’s request for deferred payment of compensation.

At the meeting, the German delegation explained Germany’s economic difficulties.

During the schagnard talks, the German representative said: “in order to pay the war reparations, Germany has to expand exports, which is bound to threaten French industry.

” With the collapse of the British and French governments on December, the concession was suddenly terminated.

France’s new prime minister, Raymond Poincare, insisted that Germany must implement the provisions of the Treaty of Versailles.

The only thing the German delegation won at the Chana conference was to allow it to postpone payment and hold the world economic conference in Genoa.

On January 24, 1921, the Allies decided on the war compensation payable by Germany in Paris.

The base is nearly 56 billion gold marks, which will be paid in 42 years.

In addition, Germany will be forced to pay its 12.

5% export commodity tax.

Although Germany did not send a representative to the Paris talks, there were still disputes at the meeting.

There were sharp differences between French Prime Minister Julian berlian and British Prime Minister Lloyd George.

Lloyd George was so disgusted with France’s demand for more compensation that he refused to leave his room at the grilang hotel.

Berian not only asked Germany for more compensation, but also asked Germany to equally share its interests in post-war reconstruction and new prosperity.

The export commodity tax is a concession to this demand of France.

In order to prevent Germany from resisting the payment of compensation, the allies also formulated corresponding measures – if Germany cannot pay, the Allies threatened to take over German tariffs, station troops on both sides of the Rhine and reoccupy Ruhr.

Because the financial experts of the allies have calculated that Germany can afford half of the compensation by reducing its military budget and abolishing high salaries, but the Deutsche mark is depreciating rapidly, and it is “just drawing water from a bamboo basket” to obtain the compensation.

Sure enough, on March 1, 1921, at the meeting of the Allies held in London, Germany refused the Post-war Reparation of 226 billion marks.

Germany only agreed to pay 50 billion marks in addition to the compensation paid.

Because Germany wanted to raise compensation through international loans, but the Allies rejected Germany’s proposal and denounced it as unacceptable.

On March 7, 1921, the London negotiations were interrupted, and the two sides were deadlocked without any results.

On the 8th, the allies took sanctions against Germany’s refusal to pay compensation: Belgian and French troops occupied Dusseldorf, Duisburg and rurolt, and soon occupied milham and upper hausen, and disarmed the local police and armed guards.

On August 2, 1922, due to the payment of war reparations and the expansionary loan policy adopted by the National Bank, the inflation in Germany changed rapidly like an avalanche.

At the beginning of August 1922, one dollar was exchanged for 860 marks, and at the end of the month, one dollar could be exchanged for 1990 marks.

The exchange rate of the mark immediately fell on the international stock market because the Allies insisted on the implementation of German installment compensation.

Germany must pay compensation in foreign exchange and gold.

Due to the French occupation of Ruhr district and the strike of local residents, it has added an extremely heavy burden to Germany.

There are millions of residents in the occupied areas who need assistance and relief, and the government must buy coal to supply those areas that lack coal.

In order to meet the country’s growing demand, the currency printing press had to operate day and night.

In April, the government’s revenue was only 17% of its expenditure.

Until the middle of April, the National Bank of China can also buy marks by selling foreign exchange and gold at the foreign exchange exchange to support the weak mark.

However, the continuous struggle in Ruhr district makes it impossible for people to take any support measures.

Prices run like runaway wild horses.

Germany’s tolerance is facing a severe test, and hunger is spreading across the country.

In Saxony, angry crowds carried out violence to protest against soaring prices.

Accordingly, on June 5, 1923, Rudolf havenstein, President of the German National Bank, publicly admitted that Mark’s support was hopeless.

From July 16 to August 16, 1924, the London International Conference of the Allies approved the plan on German compensation, which was immediately adopted by the German Parliament.

This plan was drawn up and put forward by the expert committee chaired by Dawes, the American banker, so it is called “Dawes plan”.

“Dawes plan” was announced on April 8, 1924.

The principle of the plan is “only talk about business, regardless of politics”.

The plan provides for the restructuring of the German National Bank under the supervision of the allies.

However, the total amount of German compensation was not determined, and it was only stipulated that the amount of compensation from 1924 to 1925 was 1 billion gold marks, which increased year by year and increased to 2.

05 billion gold marks every year after five years.

Germany will receive foreign loans of 800 million gold marks, of which the United States will bear 110 million US dollars, and the balance will be borne by European countries.

The plan stipulates that part of the income of German industrial enterprises and railway transportation and part of the tariff will be paid as compensation, and the French and Belgian troops will withdraw from Ruhr immediately.

The adoption and implementation of “Dawes plan” shows the failure of French policy towards Germany, and Britain and the United States have played a leading role in German policy.

After the implementation of the Dawes plan, Germany received far more than 800 million gold marks in loans.

According to statistics, from 1924 to 1929, Britain and the United States lent at least 20 billion to 25 billion gold marks to Germany, while the United States lent to GermanyThe “young plan” for adjusting compensation and war debt is in danger of disintegration.

It is obvious that Germany’s economic situation has been unable to pay the compensation due in June.

As a result, Germany’s creditor countries are unable to pay off the war debt to the United States.

The young plan stipulates that until 1988, Germany will make annual payments to a series of countries, most of which will be transferred to the United States, the main creditor of the Allies during the first World War.

According to the provisions, Germany must pay 1 billion marks every year.

In terms of the world economic situation at that time, no country could get these amounts.

Just borrowing from the international budget bank, Germany had to pay 110 million marks of interest every year.

The United States and Britain are doing this entirely for the purpose of importing their own capital and goods into Europe, strengthening their power in Europe and cultivating German power, so as to contain France, oppose the Soviet Union and achieve the effect of “raising chickens and eggs”.