German American Economic Policy – Administer $33 billion German debt: 1919-1932
- Coolidge Administration, by Pres. Coolidge monitored Germany (GE) debt (2 representatives from Britain,
France, Italy, Japan, USA) - Charles G. Dawes proposed Dawes Plan
- Fr. leaves Ruhr Valley, Allies control GE Banks & introduce new taxes
- 1 Billion was due in 1924 & by 1928, 2.5 Billion was due, GE could get loans to get things started
- Young Plan – proposed by Owen D. Young for effect in 1929 (need new strategy to help GE in depression)
o reduced total debt to 26 Billion & annual to 473 million over 58 years
o more taxes on GE & removed Allied control over economy
o set up an International Bank of Settlement, managed paid installments
- Am. rejects Laussane Conference resolutions
o debts reduced to $714 Million & creation of payment bonds, if agreed
- Am. always said, GE ability to pay the reparations is not connected to US getting back their $10 billion
- London accused Japan of being an aggressor & said Japan violated the 1928 Kellogg-Brand pact, (countries cannot engage in war & must use pacifistic methods to resolve disputes) & violated Nine-Power Treaty 1922 (Recognition of Manchuria’s sovereignty)
- Fighting continued, USA issued the Stimson Doctrine; they’d ignore all the fighting & plead for help, until Japan opted for peaceful methods
- US wouldn’t recognize treaties until fighting stopped – non-recognition policy
- Japan didn’t stop, USA & London decided that they wouldn’t stop Japan, fearing a war & loss of more lives
Japan’s Annexation of Manchuria
- London accused Japan of being an aggressor & said Japan violated the 1928 Kellogg-Brand pact, (countries cannot engage in war & must use pacifistic methods to resolve disputes) & violated Nine-Power Treaty 1922 (Recognition of Manchuria’s sovereignty)
- Fighting continued, USA issued the Stimson Doctrine; they’d ignore all the fighting & plead for help, until Japan opted for peaceful methods
- US wouldn’t recognize treaties until fighting stopped – non-recognition policy
- Japan didn’t stop, USA & London decided that they wouldn’t stop Japan, fearing a war & loss of more lives
Neutrality Acts
Neutrality Act of August 31, 1935
- Set a 6 months Embargo on all arms trade with any countries warring against each other
- Tested when Italy invaded Abyssinia, October 1935
Neutrality Act of 1936
- Extend previous act by 14 months
- Businesses were not allowed to trade on loans or credit to belligerent countries
Neutrality Act of May 1937 – revised other acts
- Travel to all belligerent countries was banned and extended act’s implications to civil wars as well
Neutrality Act of November 4, 1939
- Cash & Carry Program, which segued into the Lend/Lease Program
- Americans could now travel to most belligerent countries, at their own risk
- USA placed embargos on belligerent materials– told Italy that invading could lead to another WW
- Sec. of State Hull said Am. would not intervene, but try to encourage peace
- USA rejected it; London offers to join in sanctions
- Italy said US violated 1871 Treaty (signed for commerce) by doing “unfriendly acts”
- USA said they still had the right to be neutral
- USA remained neutral, Italy took over Abyssinia 1936 & US never recognized Italian rule over Abyssinia
- 1933 – most obsolete war equipment replaced
- 1934 – Gen. Arthur MacDouglas, Hull and FDR expand US army for defence
- Army size: 115,000 > 165,000
- Proposed Ludlow Resolution and vetoed
American policy on Mussolini’s Invasion on Abyssinia: 1935
- USA placed embargos on belligerent materials– told Italy that invading could lead to another WW
- Sec. of State Hull said Am. would not intervene, but try to encourage peace
- USA rejected it; London offers to join in sanctions
- Italy said US violated 1871 Treaty (signed for commerce) by doing “unfriendly acts”
- USA said they still had the right to be neutral
- USA remained neutral, Italy took over Abyssinia 1936 & US never recognized Italian rule over Abyssinia
Rearmament
o Nationwide referendum required to wage war
- FDR accused of conspiring with other nations to enter war.
- Hull warned that more problems would arise
- Encouraged continuous efforts for peace and economic stability
- Agreement between UK & USA in 1940
- FDR & Churchill made the Destroyer-Bases deal
- 50 destroyers sent from US navy for US land rights on British possessions (British Guiana, West Indies, Newfoundland)
- USA jeopardizes its safety – British colonies in the Americas could prove detrimental if Britain fell to Germany
- Policy aimed to aid Allies with military supplies in WWII.
- The speech reflected America’s approach to WW II.
- Detroit nicknamed “Arsenal of Democracy” since it was the heartland for automotive & armaments products.
- Led to decline in America’s isolationistic & non-interventionist views
- New program: America sent military supplies to all the Allied nations during WW II — to promote Am. security
- Gave the president power to sell, lend, lease and exchange to any government whose defence the President deemed vital to the defence of the United States.
- President says “I don’t say Neighbour, my garden hose cost me $15, you have to pay me $15 for it. I don’t want $15, I want my garden hose back after the fire is over”
- Approximately 50 billion worth of goods were supplied
Munich: September 28, 1938
- Hull warned that more problems would arise
- Encouraged continuous efforts for peace and economic stability
Destroyer Deal: September 2, 1940
- Agreement between UK & USA in 1940
- FDR & Churchill made the Destroyer-Bases deal
- 50 destroyers sent from US navy for US land rights on British possessions (British Guiana, West Indies, Newfoundland)
USA jeopardizes its safety – British colonies in the Americas could prove detrimental if Britain fell to Germany
Arsenal for Democracy
- Policy aimed to aid Allies with military supplies in WWII.
- The speech reflected America’s approach to WW II.
- Detroit nicknamed “Arsenal of Democracy” since it was the heartland for automotive & armaments products.
- Led to decline in America’s isolationistic & non-interventionist views
Lend Lease Act: 1941-1945
- New program: America sent military supplies to all the Allied nations during WW II — to promote Am. security
- Gave the president power to sell, lend, lease and exchange to any government whose defence the President deemed vital to the defence of the United States.
- President says “I don’t say Neighbour, my garden hose cost me $15, you have to pay me $15 for it. I don’t want $15, I want my garden hose back after the fire is over”
- Approximately 50 billion worth of goods were supplied
