Monday, January 10, 2011
Germany Finished Its Reparation of War Payments/Learning History-XIV
On the 20th anniversary of German reunification, Germany finally paid off the last of its payment relating to WWI (1914-1918). The final 70 million euro ($94 million) installment closed a 92-year chapter of the First World War. Under the Treaty of Versailles, a peace settlement signed by Germany and the Allies in 1919, Germany took sole responsibility for WWI and was required to pay reparation for the damage done to the Allied countries and people between 1919 and 1918. The sum of the payment was fixed at some 6.6 billion pounds in 1921, and Germany was granted loans to meet its reparation payments under the Dawes Plan in 1924 and the Young Plan in 1929. This heavy burden unleashed massive resentment in Germany and helped to fuel the rise in power of Adolf Hitler and his Nazi party, which led into the World War Two. Germany stopped paying the reparations under the Nazis, and the Western Allies including US and France, reached a new agreement regarding Germany’s foreign debts in 1953 (Windsor Star 29 September 2010).