Question

What was 'Dawes Plan'?

• A. A plan to secure loans from US bankers
• B. A plan to ease reparation terms on Germany
• C. A plan to overtake Rhineland mines
• D. An extension ofVersailles treaty
• E. None of these

Answer 1

Answer: (B)

A plan to ease reparation terms on Germany

Charles Dawes was the US budget director. In 1923, he was sent to Europe to sort out Germany's economy. Under his advice, the German Reichsbank was reformed and the old money was called in and burned. This ended the hyperinflation. Dawes also arranged the Dawes Plan with Stresemann, which gave Germany longer to pay reparations. Most importantly, Dawes agreed to America lending Germany 800 million gold marks, which kick-started the German economy.