World War I reparations in the context of "John Foster Dulles"

The causes of World War II have been given considerable attention by historians. The immediate precipitating event was the invasion of Poland by Nazi Germany on September 1, 1939, and the subsequent declarations of war on Germany made by Britain and France, but many other prior events have been suggested as ultimate causes. Primary themes in historical analysis of the war's origins include the political takeover of Germany in 1933 by Adolf Hitler and the Nazi Party; Japanese militarism against China, which led to the Japanese invasion of Manchuria and the Second Sino-Japanese War; Italian aggression against Ethiopia, which led to the Second Italo-Ethiopian War; or military uprising in Spain, which led to the Spanish Civil War.

During the interwar period, deep anger arose in the Weimar Republic over the conditions of the 1919 Treaty of Versailles, which punished Germany for its role in World War I with heavy financial reparations and severe limitations on its military that were intended to prevent it from becoming a military power again. The demilitarisation of the Rhineland, the prohibition of German unification with Austria, and the loss of its overseas colonies as well as some 12% of the pre-war land area and population of the metropole all provoked strong currents of revanchism in German politics.

The Treaty of Versailles was a peace treaty signed on 28 June 1919. As the most important treaty of World War I, it ended the state of war between Germany and most of the Allied Powers. It was signed in the Palace of Versailles, exactly five years after the assassination of Archduke Franz Ferdinand, which led to the war. The other Central Powers on the German side signed separate treaties. Although the armistice of 11 November 1918 ended the actual fighting, and agreed certain principles and conditions including the payment of reparations, it took six months of Allied negotiations at the Paris Peace Conference to conclude the peace treaty. Germany was not allowed to participate in the negotiations before signing the treaty.

The treaty required Germany to disarm, make territorial concessions, extradite alleged war criminals, agree to Kaiser Wilhelm being put on trial, recognise the independence of states whose territory had previously been part of the German Empire, and pay reparations to the Entente powers. The most critical and controversial provision in the treaty was: "The Allied and Associated Governments affirm and Germany accepts the responsibility of Germany and her allies for causing all the loss and damage to which the Allied and Associated Governments and their nationals have been subjected as a consequence of the war imposed upon them by the aggression of Germany and her allies." The other members of the Central Powers signed treaties containing similar articles. This article, Article 231, became known as the "War Guilt" clause.

The Paris Peace Conference was a set of formal and informal diplomatic meetings in 1919 and 1920 after the end of World War I, in which the victorious Allies set the peace terms for the defeated Central Powers. Dominated by the leaders of Britain, France, the United States and Italy, the conference resulted in five treaties that rearranged the maps of Europe and parts of Asia, Africa and the Pacific Islands, and also imposed financial penalties. Germany, Austria-Hungary, Turkey and the other losing nations were not given a voice in the deliberations; this later gave rise to political resentments that lasted decades. The arrangements made by this conference are considered one of the greatest watersheds of 20th century geopolitical history which would lead to World War II.

The conference involved diplomats from 32 countries and nationalities. Its major decisions were the creation of the League of Nations and the five peace treaties with the defeated states. Main arrangements agreed upon in the treaties were, among others, the transition of German and Ottoman overseas possessions as "mandates" from the hands of these countries chiefly into the hands of Britain and France; the imposition of reparations upon Germany; and the drawing of new national boundaries, sometimes involving plebiscites, to reflect ethnic boundaries more closely.

The Dawes Plan temporarily resolved the issue of the reparations that Germany owed to the Allies of World War I. Enacted in 1924, it ended the crisis in European diplomacy that occurred after French and Belgian troops occupied the Ruhr 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 Young Plan in 1929.