This links to another way in Stresemann fixed the German economy, and this is through the introduction of the Dawes Plan and the Young Plan’, through a series of negotiations with the major banks of the USA, as the source states ‘The Dawes Plan of 1924 and US Loans encouraged economic recovery. The Dawes Plan issued a loan of 800 million marks to the German government, and enabled them to rebuild industry and commerce, allowing a new influx of money into the German economy, to help them repay the punitive reparations of £6600 million, which were part of the Treaty of Versailles, signed at the end of the First World War. The Young Plan essentially reduced the reparations to a third of their initial cost, taking them down to £2200 million, which reduced the pressure on the German economy. Through these deals, Stresemann was able to stabilise the German economy, and so, Germany experienced some recovery.
This link to another way in which Stresemann was able to negotiate with foreign governments, and this is through the signing of the Locarno Treaties and the Kellogg-Briand Pact, as the source states, ‘As Foreign Secretary, Stresemann signed the Locarno Treaties and negotiated Germany’s entry to the League of Nations’. The Locarno Treaties essentially confirmed the current borders on Germany’s Western Front, and so, any tensions about the Alsace-Lorraine region were put to rest, and this enabled Germany to enter the League of Nations, which was a symbol of how the other nations now accepted Germany, after the events of the First World War. Stresemann also signed the Kellogg-Briand pact in 1938, which renounced war as a tool of foreign policy, and it is undoubtable that this also helped Germany experience a period of recovery on the international stage.
Overall, Germany experienced a period of economic recovery due to the ending of hyperinflation, due to the ‘introduction of the Rentenmark’, linking to another way in which there was economic recovery, through the ‘Dawes plan’ and the Young Plan, through foreign negotiations, linking to another way in which recovery occurred through foreign negotiations, which is the signing of the ‘Locarno Treaties’ and the entry to the League of Nations.
