Dawes Plan

The Dawes Plan temporarily resolved the issue of the <a href="/facts/World_War_I_reparations/x68e5n5b">reparations</a> that Germany owed to the <a href="/facts/Allies_of_World_War_I/HBo9sw1M">Allies of World War I</a>. Enacted in 1924, it ended the crisis in European diplomacy that occurred after French and Belgian troops <a href="/facts/Occupation_of_the_Ruhr/XY3JXaao">occupied the Ruhr</a> in response to Germany's failure to meet its reparations obligations.
The Plan set up a staggered schedule for Germany's payment of war reparations, provided for a large loan to stabilise the German currency and ended the occupation of the Ruhr. It resulted in a brief period of economic recovery in the second half of the 1920s, although it came at the price of a heavy reliance on foreign capital. The Dawes Plan was superseded by the <a href="/facts/Young_Plan/hz1R1cN2">Young Plan</a> in 1929.
Because the Plan resolved a serious international crisis, the American <a href="/facts/Charles_G._Dawes/Dznhho0f">Charles G. Dawes</a>, who headed the group that developed it, received the <a href="/facts/Nobel_Peace_Prize/2wVhmLrX">Nobel Peace Prize</a> in 1925.

Dawes Plan open-in-new

Dawes Plan