Lausanne Conference of 1932
Encyclopedia
The Lausanne Conference was a 1932 meeting of representatives from Great Britain
, Germany
, and France
that resulted in an agreement to suspend World War I reparations
payments imposed on the defeated countries by the Treaty of Versailles
. Held from June 16 to July 9, 1932, it was named for its location in Lausanne, Switzerland.
A moratorium
had been placed on the war reparations payments in 1931 and a year later the delegates to the Lausanne Conference realized that the deepening world financial crisis in the Great Depression
made it nearly impossible for Germany to resume its payments. However, Britain and France and other Allies had borrowed heavily to fight the war and in particular, France and Belgium were struggling after having had their infrastructure severely damaged by the fighting and by the deliberate destruction and plundering from retreating German forces as the war drew to a close. Therefore, the delegates came to an informal understanding that the permanent elimination of Germany's debt and war reparations would be subject to reaching an agreement with the United States with respect to their outstanding war debts.
In December 1932, the U.S. Congress rejected the Allied war debt reduction plan, which technically meant that the war reparations and debt reverted to the debt reduction previously granted Germany by the 1929 Young Plan
. However, the system had collapsed, and Germany made no further payments. By 1933, Germany had made World War I reparations of only one eighth of the sum required under the Treaty of Versailles.
Great Britain
Great Britain or Britain is an island situated to the northwest of Continental Europe. It is the ninth largest island in the world, and the largest European island, as well as the largest of the British Isles...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, and France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
that resulted in an agreement to suspend World War I reparations
World War I reparations
World War I reparations refers to the payments and transfers of property and equipment that Germany was forced to make under the Treaty of Versailles following its defeat during World War I...
payments imposed on the defeated countries by the Treaty of Versailles
Treaty of Versailles
The Treaty of Versailles was one of the peace treaties at the end of World War I. It ended the state of war between Germany and the Allied Powers. It was signed on 28 June 1919, exactly five years after the assassination of Archduke Franz Ferdinand. The other Central Powers on the German side of...
. Held from June 16 to July 9, 1932, it was named for its location in Lausanne, Switzerland.
A moratorium
Hoover Moratorium
The Hoover Moratorium was a public statement issued by U.S. President Herbert Hoover on June 20, 1931, which he hoped would ease the coming international economic crisis, as well as provide time for recovery. Hoover's proposition was to put a one-year moratorium on payments of World War I and other...
had been placed on the war reparations payments in 1931 and a year later the delegates to the Lausanne Conference realized that the deepening world financial crisis in the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
made it nearly impossible for Germany to resume its payments. However, Britain and France and other Allies had borrowed heavily to fight the war and in particular, France and Belgium were struggling after having had their infrastructure severely damaged by the fighting and by the deliberate destruction and plundering from retreating German forces as the war drew to a close. Therefore, the delegates came to an informal understanding that the permanent elimination of Germany's debt and war reparations would be subject to reaching an agreement with the United States with respect to their outstanding war debts.
In December 1932, the U.S. Congress rejected the Allied war debt reduction plan, which technically meant that the war reparations and debt reverted to the debt reduction previously granted Germany by the 1929 Young Plan
Young Plan
The Young Plan was a program for settlement of German reparations debts after World War I written in 1929 and formally adopted in 1930. It was presented by the committee headed by American Owen D. Young. After the Dawes Plan was put into operation , it became apparent that Germany could not meet...
. However, the system had collapsed, and Germany made no further payments. By 1933, Germany had made World War I reparations of only one eighth of the sum required under the Treaty of Versailles.