David Lloyd George and the Revision of the Treaty of Versailles

Total Page:16

File Type:pdf, Size:1020Kb

David Lloyd George and the Revision of the Treaty of Versailles ‘IF I HAD TO GO TO PARIS AGAIN …’ DAVid LLOYD GEORGE AND thE REVISION OF thE TREATY OF VERSAillES In 1923, Charles Hardinge, the recently have realised as being opposed to every retired British ambassador in Paris and former principle of national life and existence’. permanent under-secretary at the Foreign Hardinge offered the angry former Prime Office, told David Lloyd George that the 1919 Minister some unspecified examples of their Treaties of Versailles and St Germain with impracticalities. ‘He said nothing for about ten Germany and Austria ‘contained provisions minutes and then remarked in a friendly way, which anybody with any knowledge of “If I had to go to Paris again I would conclude foreign politics or of European affairs would quite a different treaty.”’1 By Alan Sharp. 30 Journal of Liberal History 77 Winter 2012–13 ‘IF I HAD TO GO TO PARIS AGAIN …’ DAVid LLOYD GEORGE AND thE REVISION OF thE TREATY OF VERSAillES loyd George had thus more sympathetic to the enor- our signature’. He warned: ‘You joined the already consider- mous task facing the peacemakers may strip Germany of her colonies, Lable ranks of those critical after the most devastating war to reduce her armaments to a mere of the First World War settlement. that date. The settlement remains police force, and her navy to that Even before the conference ended highly controversial and, as one of of a fifth-rate Power … [but] if she there was much disquiet amongst its principal authors – something feels she has been unjustly treated participants that the treaty with which he could later conveniently … she will find means of extracting Germany was too harsh – as Lord forget – the idea of Lloyd George retribution from her conquerors.’ Robert Cecil remarked on 30 May creating an alternative treaty is Yet, as he boasted to his friend Sir 1919 during the Anglo-American intriguing.3 George Riddell, the press magnate, meeting which laid the foundations Setting to one side the obvi- on 30 March: ‘The truth is that for the Royal Institute of Inter- ous objections that he could nei- we have got our way … The Ger- national Affairs and its American ther remake the treaty without man Navy has been handed over; counterpart, the Council on For- the acquiescence of his allies, nor the German mercantile shipping eign Relations, ‘There is not a sin- could he alter the German percep- has been handed over, and the Ger- gle person in this room who is not tion that they were undefeated and man colonies have been given up.’ disappointed with the terms we hence that any settlement based on The sub-text to French premier have drafted.’ Six months after the the premise of Allied victory would Georges Clemenceau’s rejoinder to treaty was signed, John Maynard be unacceptable, there are vari- the memorandum asked what Brit- Keynes, the British Treasury offi- ous clues to the shape of his ideal ain would sacrifice of its own aims cial who had left Paris in disgust peace. These suggest that he sought (rather than those of others) to con- in early June, reinforced that dis- a stable Europe in which Germany, vince Germany that the treaty was quiet by publishing The Economic reconciled to its defeat and rec- just, but he provoked no response.5 Consequences of the Peace, a polemi- ognising the essential fairness of What might the possible allevia- cal attack on the peacemakers and the settlement, would play a posi- tions have been? Lloyd George was all their works, which gave Brit- tive and beneficial role, retaking deeply disappointed when, dur- ain a bad conscience and which its place as a major British trading ing his absence from Paris in early has shaped much of the subsequent partner. Britain could then revert April 1919, the American president, debate on the settlement.2 to what contemporaries saw as its Woodrow Wilson, pressured by Others thought the treaty too traditional imperial and colonial Clemenceau, conceded a fifteen- lenient. Marshal Foch, the French themes, leaving Europe to fend for year Allied occupation of Western commander of Allied forces on the itself – such indeed was the advice Germany, much longer than he Western Front, predicted, ‘This offered by both his private secre- considered necessary or desirable. is not Peace. It is an Armistice tary, Philip Kerr, and Jan Smuts, Later, in the 1930s, the return of for twenty years.’ He was proved the South African defence minister Germany’s colonies became part wrong – by sixty-seven days – but and member of the Imperial War of an appeasement agenda, but in many later commentators have Cabinet. An additional but more 1919 this crossed no one’s mind – shared his view that the inadequa- remote aspiration would be the certainly not that of Smuts, fierce cies of Versailles created the con- reintegration of a reformed Russia critic of the treaty that he was, who ditions that made a second world into European politics.4 had no intention of relinquishing war inevitable and hence also bear Left: Lloyd George’s Fontainebleau the former German South-West some of the responsibility for its The British memorandum of 25 March 1919, Africa. Five principal areas, how- consequences and subsequent inter- Empire drafted after a weekend’s consulta- ever, stand out: reparations; disar- national turmoil. As more govern- delegation in tion with close advisers as deadlock mament; the territorial settlement ments opened their archives after June 1919; Lloyd threatened the conference, out- and Germany’s new frontiers; the the 1960s some, though certainly George behind lined ‘the kind of treaty to which so-called ‘shame clauses’ of the not all, historians have become desk, centre-left alone we were prepared to append treaty, relating to the indictment Journal of Liberal History 77 Winter 2012–13 31 ‘IF I HAD TO GO TO PARIS AGAIN …’ DAVid llOYD GEORGE AND THE REVISION OF THE TREATY OF VERSAillES of the Kaiser and members of the ‘The sub- ruled out an indemnity, as Lloyd soldiers were merely civilians in German military and political elite, George acknowledged, though uniform. Accepting this was not together with Article 231, the ‘war ject of rep- Professor Antony Lentin suggests logical, Wilson conceded because guilt’ clause; and finally, Britain’s that, from the beginning, he had he believed the Allies would com- relationship with France, linked to arations’ no intention of foregoing war costs promise on a fixed sum – not the the treaty that Lloyd George made and that the wording was a mere complete bill but an amount to but did not implement. declared ruse de guerre.8 discharge all Germany’s liabili- During the 1918 election, facing ties. Hence his decision would Thomas an unknown electorate and seeking not affect what Germany paid but Reparations to revitalise a lacklustre campaign, could allow Britain, which had suf- One candidate for revision is pre- Lamont, the Lloyd George played to the popular fered little physical destruction, to eminent: ‘The subject of repara- American gallery in Newcastle on 29 Novem- receive greater compensation. No tions’ declared Thomas Lamont, ber, declaring that ‘Germany final sum was agreed; on 5 April the American banker acting as an banker act- must pay the costs of the war’. He 1919 the decision was postponed for expert in Paris, ‘caused more trou- included an escape clause – ‘up to a Reparation Commission to deter- ble, contention, hard feeling, and ing as an the limit of her capacity’ – but in mine in1921.11 delay at the Paris Peace Conference Bristol on 11 December he stated, In his Fontainebleau memo- than any other point of the Treaty.’6 expert in ‘We propose to demand the whole randum Lloyd George suggested Resolving Germany’s responsi- cost of the war’, and hinted that that reparations should disappear bility to compensate Allied war- Paris, ‘caused Germany’s capacity was substan- with the generation that waged time losses then held centre stage tial. He won the election – though war. Yet he refused to specify any at numerous Anglo-French, inter- more trou- dependent upon a massive Tory time limit on German payments Allied and international confer- majority. Public and parliamentari- or name a total sum. He claimed ences in the early years of treaty ble, conten- ans heard what they wanted to hear he was thwarted by the excessive execution, sowing discord amongst and expected him to deliver.9 demands of his financial advis- the victors and offering Germany tion, hard It is easy to see why. The Brit- ers, Lords Cunliffe and Sumner, an opportunity to steal the moral ish Treasury estimated that victory respectively a former governor of high ground. Everyone, includ- feeling, and cost the Allies £24,000 million in the Bank of England and a Lord of ing the Germans, accepted that 1914 gold values. Great swathes of Appeal – irreverently dubbed the there was a bill to pay, but the bases delay at the Belgium and France lay ravaged by ‘Heavenly Twins’ by British del- of that reckoning, the amounts to four years of industrialised warfare egation colleagues because they be paid and the distribution of the Paris Peace and required restoration. Addition- were always together and sought receipts amongst the Allies, were all Confer- ally the Allies had borrowed heav- astronomical sums from Germany. beset by controversy. ily from the United States, which Cunliffe maintained that £24,000 Traditionally losers offset vic- ence than expected repayment. Meanwhile million was a realistic prospect. tors’ costs – after 1870–71 France Germany, suffering only minimal Lloyd George dismissed this as ‘a paid Germany 5,000 million gold any other damage to its industrial base and wild and fantastic chimera’ and francs – but in 1918 Lloyd George with no foreign war debts, posed mocked Cunliffe’s ‘strange lapse and Wilson ruled out war costs, point of the the threat of future trade competi- into megalomania’, suggesting that demanding only that Germany tion, unimpeded by the costs faced Sumner ‘himself caught the infec- restore the invaded territories.7 The Treaty’.
Recommended publications
  • Bulletin of the GHI Washington
    Bulletin of the GHI Washington Issue 5 Fall 1989 Copyright Das Digitalisat wird Ihnen von perspectivia.net, der Online-Publikationsplattform der Max Weber Stiftung – Stiftung Deutsche Geisteswissenschaftliche Institute im Ausland, zur Verfügung gestellt. Bitte beachten Sie, dass das Digitalisat urheberrechtlich geschützt ist. Erlaubt ist aber das Lesen, das Ausdrucken des Textes, das Herunterladen, das Speichern der Daten auf einem eigenen Datenträger soweit die vorgenannten Handlungen ausschließlich zu privaten und nicht-kommerziellen Zwecken erfolgen. Eine darüber hinausgehende unerlaubte Verwendung, Reproduktion oder Weitergabe einzelner Inhalte oder Bilder können sowohl zivil- als auch strafrechtlich verfolgt werden. B. Genoa/Rapallo and the Reconstruction of Europe, 1922 Washington, D.C., June 14–17,1989 This research conference was jointly sponsored by the German Historical Institute, Washington, D.C., and the Association Internationale d'Histoire Contemporaine de l'Europe, an organization based in Strasbourg which promotes research on European international relations from the mid-nineteenth century to the present. Twenty-five specialists in the post-World War I era from ten countries gathered to discuss problems of the first major international effort to construct a new political and economic order for Europe. Conference organizers were Carole Fink, Professor of History at the University of North Carolina at Wilmington, who has published The Genoa Conference: European Diplomacy 1921–22, and Axel Frohn and Jürgen Heideking, both
    [Show full text]
  • Das Reich Der Seele Walther Rathenau’S Cultural Pessimism and Prussian Nationalism ~ Dieuwe Jan Beersma
    Das Reich der Seele Walther Rathenau’s Cultural Pessimism and Prussian Nationalism ~ Dieuwe Jan Beersma 16 juli 2020 Master Geschiedenis – Duitslandstudies, 11053259 First supervisor: dhr. dr. A.K. (Ansgar) Mohnkern Second supervisor: dhr. dr. H.J. (Hanco) Jürgens Abstract Every year the Rathenau Stiftung awards the Walther Rathenau-Preis to international politicians to spread Rathenau’s ideas of ‘democratic values, international understanding and tolerance’. This incorrect perception of Rathenau as a democrat and a liberal is likely to have originated from the historiography. Many historians have described Rathenau as ‘contradictory’, claiming that there was a clear and problematic distinction between Rathenau’s intellectual theories and ideas and his political and business career. Upon closer inspection, however, this interpretation of Rathenau’s persona seems to be fundamentally incorrect. This thesis reassesses Walther Rathenau’s legacy profoundly by defending the central argument: Walther Rathenau’s life and motivations can first and foremost be explained by his cultural pessimism and Prussian nationalism. The first part of the thesis discusses Rathenau’s intellectual ideas through an in-depth analysis of his intellectual work and the historiography on his work. Motivated by racial theory, Rathenau dreamed of a technocratic utopian German empire led by a carefully selected Prussian elite. He did not believe in the ‘power of a common Europe’, but in the power of a common German Europe. The second part of the thesis explicates how Rathenau’s career is not contradictory to, but actually very consistent with, his cultural pessimism and Prussian nationalism. Firstly, Rathenau saw the First World War as a chance to transform the economy and to make his Volksstaat a reality.
    [Show full text]
  • Anglo-Soviet Relations, 1927-1932
    _________________________________________________________________________Swansea University E-Theses Anglo-Soviet relations, 1927-1932. Bridges, Brian J. E How to cite: _________________________________________________________________________ Bridges, Brian J. E (1979) Anglo-Soviet relations, 1927-1932.. thesis, Swansea University. http://cronfa.swan.ac.uk/Record/cronfa43078 Use policy: _________________________________________________________________________ This item is brought to you by Swansea University. Any person downloading material is agreeing to abide by the terms of the repository licence: copies of full text items may be used or reproduced in any format or medium, without prior permission for personal research or study, educational or non-commercial purposes only. The copyright for any work remains with the original author unless otherwise specified. The full-text must not be sold in any format or medium without the formal permission of the copyright holder. Permission for multiple reproductions should be obtained from the original author. Authors are personally responsible for adhering to copyright and publisher restrictions when uploading content to the repository. Please link to the metadata record in the Swansea University repository, Cronfa (link given in the citation reference above.) http://www.swansea.ac.uk/library/researchsupport/ris-support/ ANGLO-SOVIET RELATIONS 1927 - 1932 by BRIAN J. E. BRIDGES Ph.D. University College April, 1979 of Swansea ProQuest Number: 10821470 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a com plete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion.
    [Show full text]
  • Brockdorff-Rantzau As the Weimar Republic's First Foreign Minister
    University of Nebraska at Omaha DigitalCommons@UNO Student Work 1-1-1967 Count and democrat ; Brockdorff-Rantzau as the Weimar Republic's first foreign minister Marilyn Senn Moll University of Nebraska at Omaha Follow this and additional works at: https://digitalcommons.unomaha.edu/studentwork Recommended Citation Moll, Marilyn Senn, "Count and democrat ; Brockdorff-Rantzau as the Weimar Republic's first foreign minister" (1967). Student Work. 407. https://digitalcommons.unomaha.edu/studentwork/407 This Thesis is brought to you for free and open access by DigitalCommons@UNO. It has been accepted for inclusion in Student Work by an authorized administrator of DigitalCommons@UNO. For more information, please contact [email protected]. iI ^ "COUNT AND DEMOCRAT" BROCKDORFF-RANTZAU AS THE WEIMAR REPUBLIC'S FIRST FOREIGN MINISTER A Thesis Presented to the Department of History and the Faculty of the Graduate College University of Omaha In Partial Fulfillment of the Requirements for the Degree Master of Arts by Marilyn Senn Moll January 1967 UMI Number: EP73045 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Dissertation Publishing UMI EP73045 Published by ProQuest LLC (2015). Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code ProQuest LLC. 789 East Eisenhower Parkway P.O.
    [Show full text]
  • What Were the Aims of the 'Big Three' at the Paris Peace Conference? Interleaving
    Paper 1, Section B Conflict and Tension, 1918-1939 The Treaty of Versailles What were the aims of the 'Big Three' at the Paris Peace Conference? Interleaving . low stakes questions. 1. When was the German Empire created? P31 2. Who was the Kaiser? P31 3. What is militarism? P31 4. What did Kaiser Wilhelm want to make Germany? 5. What was Germany like before 1871? Pink box p31 Challenge 6. Why did the Kaiser dislike democracy? P31 2. Who was the Kaiser? P31 The person in charge of Germany, inherited his position and ruled like a King. 3. What is militarism? P31 The strengthening of Germany’s military eg the army and the navy and using it to increase Germany’s influence. 4. What did Kaiser Wilhelm want to make Germany? A world power. 5. What was Germany like before 1871? Pink box p31 Lots of small states. Challenge 6. Why did the Kaiser dislike democracy? P31 He thought it was weak and didn’t like working with the Reichstag. He preferred to put his trust in the army. World War One had devastated Europe economically, industrially and socially. About 8 million soldiers and 8 million civilians were dead. Towns and villages were flattened, farms were destroyed and railways had been blown up. It seemed that the world would not be the same again. At the end of the war, the leaders of the winning countries met to decide how to deal with the losing countries - this would be a huge task. The leaders of the winning countries could try to seek revenge or they could try to build a better and more peaceful world.
    [Show full text]
  • 1 PARIS 1919 Study Guide About The
    PARIS 1919 Study Guide About the Film Inspired by Margaret MacMillan’s landmark book, Paris 1919: Six Months That Changed The World, this film takes viewers inside the Paris Peace Conference offering a compelling reflection on post‐WWI history and how the decisions made during those six fateful months in 1919 continue to haunt us, for better or worse. In January 1919, Paris became the centre of the world. Armistice had been declared just a few months earlier in the most devastating war of all time. Almost ten million were dead. Two empires had collapsed. The old world order lay in tatters and a new one desperately needed to be created. Driven by unprecedented urgency, delegations from over 30 nations descended upon Paris for the most ambitious peace talks in history. The French capital became the destination of emirs and presidents, newsmen and royalty, ambitious socialites and enterprising arms dealers, each with their own agenda. At the helm of the conference were the “Big Four” of the allied victors: U.S. President Woodrow Wilson, French Prime Minister Georges Clemenceau, British Prime Minister David Lloyd George and Italian Prime Minister Vittorio Orlando. They endeavoured to engineer a peace treaty for all time. While the Big Four staggered under this mind‐boggling agenda, separate committees assessed war reparations and realigned national borders, forming new countries such as Iraq and Yugoslavia with little chance for reflection. Meanwhile, the streets were teeming with starving widows and war amputees – and Germany was rearming. In viewing Paris 1919 audiences will gain insight into the monumental task that lay before the Big Four and their diplomatic teams, the lasting legacies that were accomplished in the peace settlement, and the inherent weaknesses of the Paris Peace Conference.
    [Show full text]
  • History of International Relations and Russian Foreign Policy in the 20Th Century (Volume I)
    History of International Relations and Russian Foreign Policy in the 20th Century (Volume I) History of International Relations and Russian Foreign Policy in the 20th Century (Volume I) Edited by Anatoly V. Torkunov, William C. Wohlforth and Boris F. Martynov History of International Relations and Russian Foreign Policy in the 20th Century (Volume I) Edited by Anatoly V. Torkunov, William C. Wohlforth and Boris F. Martynov This book first published 2020 Cambridge Scholars Publishing Lady Stephenson Library, Newcastle upon Tyne, NE6 2PA, UK British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Copyright © 2020 by Anatoly V. Torkunov, William C. Wohlforth, Boris F. Martynov and contributors All rights for this book reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. ISBN (10): 1-5275-4373-0 ISBN (13): 978-1-5275-4373-7 Research for this book was funded by the Ministry of Science and Higher Education of the Russian Federation (grant agreement number 14.461.31.0002) CONTENTS Preface ........................................................................................................ ix Anatoly V. Torkunov Introduction ................................................................................................. 1 William C. Wohlforth Chapter 1 ..................................................................................................
    [Show full text]
  • Conflict and Tension: 1918 ‐ 1939 Part 1: the Treaty of Versailles Aims of the Peacemakers the Versailles Settlement Impact of the Treaty and Wider Settlement
    TURTON SCHOOL HISTORY DEPARTMENT – KNOWLEDGE ORGANISER – GCSE Conflict and Tension: 1918 ‐ 1939 Part 1: The Treaty of Versailles Aims of the peacemakers The Versailles Settlement Impact of the treaty and wider settlement Georges Clemenceau – Prime Minister of These are the key points of the Versailles Settlement. Germany felt the Treaty of Versailles was unfair and France. Clemenceau was recognised as a Article 231 was the War Guilt Clause – this meant felt humiliated. tough and uncompromising politician. He Germany and their allies had to take full There were revolts in Germany when the government wanted to cripple Germany to make sure responsibility for the war. signed the Treaty. that it was never powerful enough to attack German Army was limited to 100,000 men and The Wiemar Constitution, rules for a new democratic France again. Clemenceau also wanted to conscription was not allowed. Germany are drawn up. reduce is armed forces and make Germany The Rhineland, between France and Germany, was pay compensation for the damage caused to demilitarised. This meant Germany could not put January 1923 – Germany missies a reparations France. troops here. payment and France invades the Rhur (a key German Germany had to pay war reparations of £6.6 billion. industrial area). David Lloyd George – Prime Minister of Anschluss (political union between Germany and November 1923 – Hyperinflation takes effect and Britain. Lloyd George was elected by the Austria) was forbidden. everyday goods increase in price. A loaf of bread British public because he promised to make Germany was not allowed any tanks or an air force. costs 200,000 million marks.
    [Show full text]
  • Woodrow Wilson & the Fourteen Points: the Tragedy of Discontent
    Journal of International Politics Volume 2, Issue 1, 2020, PP 42-48 ISSN 2642-8245 Woodrow Wilson & the Fourteen Points: The Tragedy of Discontent L.O Chukwu* Halifax College, University of York, UK *Corresponding Author: L.O Chukwu, Halifax College, University of York, UK, Email: [email protected] ABSTRACT The most important peace treaty of the five prepared at the Paris peace conference was signed on June 28th, 1919 at the Palace of Versailles, by Germany and the victors of the Great War. The peace treaty concluding “the war to end all wars” was a result of cascading events and negotiations that enveloped all of Europe in its grandiosity. The process began in earnest with the ideals of Wilson and the Fourteen Points, which was intended to furnish diplomacy with a new formula for pursuing peace and stability in the world, and abandoning the old notion of a “balance of power”. According to Kissinger it was “complete reversal of the historical experience and method of operation of the great powers” (Kissinger, 1994, pp. 221 – 245). However, after the Versailles agreement was shaped and signed, it was clear to the world “that the new order had merely fouled the old” (Nicolson, 1933, p. 187). This paper will attempt to delve into the concept of President Woodrow Wilson’s Fourteen Points, the subsequent applicability of the principles as a guiding light in pursuing peace at the conference in Paris, and its impact on the eventual treaty signed in Versailles, and answer fittingly, to what degree did President Woodrow Wilson’s Fourteen Points shape the Treaty of Versailles? Firstly, the paper outlines and explains the background of events, with reference to the conceptualization of the Fourteen Points, and the avenues through which the notion was debated to bring an end to hostilities, and provide a pathway towards peace.
    [Show full text]
  • Pi J______Jean Monnet Chair Papers Repository
    Repository. Research Institute University European _______ Institute. Jean Jean Chair Monnet Papers From Illusion to Disillusion Cadmus, The The the at Unit European Policy on European European University Institute University Access European Open Carole Fink 1922/23 pi Author(s). Available The 2020. J © in ________ Library EUI the by produced version Digitised Repository. Research Institute University European European University Library 3 Institute. 0001 Cadmus, on University 0014 Access European Open 2222 Author(s). Available 1 The 2020. © in Library EUI the by produced version Digitised Repository. Research Institute University European Institute. Cadmus, on University Access Fink, European Open Jean Monnet Chair Papers 1922/23 From Illusion to Disillusion Author(s). Available The 2020. © in Library EUI the F_ I by produced version Digitised Repository. Research Institute University European Institute. research activities of the Institute in Florence. in Institute ofthe activities research of with support financial the Institute, University European of the Council Jean The ChairMonnet in created was ofdecision by 1988 the Academic personalities personalities from the and political and academics renownedeconomic world associating to by the Act, European teaching and Single the following external, and internal problems, on the discussion Union and European of studies promote to was initiative this of aim The Community. European the Cadmus, on University Access European Open The Jean Monnet Chair Author(s). Available The 2020. © in Library EUI the by produced version Digitised Repository. Research Institute University European Institute. Jean Chair Jean Papers Monnet From Illusion to Disillusion Cadmus, The European Policy Unit at the the at The Unit Policy European on University European University Institute European Access European Open Carole Fink 1922/23 Author(s).
    [Show full text]
  • Article Interwar Financial Summits
    Article Interwar Financial Summits: The Economic Consequences and Lessons of Attempts to Repair a Broken World Downloaded from https://academic.oup.com/globalsummitry/article-abstract/2/2/114/3073431 by guest on 16 June 2020 Christopher Kobrak† Rotman School of Managment, University of Toronto Very few of us realize with conviction the intensely unusual, unstable, com- plicated, unreliable, temporary nature of the economic organization by which Western Europe lived for the lasthalfcentury.Weassumesomeofthe most peculiar and temporary of our late advantages as natural, permanent, andtobedependedon,andwelayourplansaccordingly....Moved by in- sane delusion and reckless self-regard, the German people overturned the foundations on which we all lived and built. But the spokesmen of the French and British peoples have run the risk of completing the ruin ...by a Peace, which, if it is carried into effect, must impair yet further, when it might have restored, the delicate, complicated organization, already shaken and broken by war, through which alone the European peoples can employ themselves and live. (Keynes 1920) Introduction Political summits with economic and financial consequences have a long history. Reparation payments accompanied Napoleon’s peace agreement with Prussia in 1807 and Prussia’s peace agreement with France in 1871. The Vienna Conference following Napoleon’s defeat was not about finance prin- cipally, but it not only stipulated reparations for the victors, its framework for international stability also helped set the stage for nearly 100 years of economic development supported by the growth of new financial institu- tions and nearly unprecedented financial cohesion. As former U.S. Secretary of State Henry Kissinger observed, these financial settlements provided a model for future ones by not posing a mortal threat to any nation’s survival, thereby preserving a basis for future negotiation and consensus (Kissinger 1956).
    [Show full text]
  • The Treaty of Rapallo (1922)
    Poland – Germany – History Issue: 19/2020 07’05’21 The Treaty of Rapallo (1922) By Prof. dr hab. Stanisław Żerko On Easter Sunday on April 16, 1922 in the Italian town of Rapallo, Germany and the Soviet Union signed a treaty which - although devoid of any outrageous provisions – came as a big surprise causing quite a stir in the international community. After all, here was an agreement between the two countries that had thus far been treated as pariahs by the states that guarded the Versailles peace order. The Rapallo pact caused particular concern in Poland where the return to cooperation between the two signatory states brought back sinister historical parallels. This was the worst-case scenario for Poland's security. The term “Rapallo” became a household name in international relations seen as synonymous with Germany and Russia going into cahoots against both the West and Poland. A series of international conferences were held in the early 1920s concerning the reparations imposed on Germany by the Versailles Treaty. At one of them, convened in Cannes in early 1922, a decision was made to invite the Soviet Union to the following conference to be held in Genoa. There was talk of establishing an international consortium (involving the Reich) that would embark on restoring the Russian economy and making that country part of the international trading community. This would be the first appearance at a large international meeting by a delegation from the Bolshevik state. The Soviet state had not yet been officially recognized by the major Western states, although it had already established economic ties with some of them.
    [Show full text]