jul 18, 1933 - End of Reparation Payments Reparations

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The 1919 Treaty of Versailles and the 1921 London Schedule of Payments required Germany to pay 132 billion gold marks (US$33 billion) in reparations to cover civilian damage caused during the war. Under the burden of the reparation demands, the German economy was on the verge of collapse and Germany was not able to meet the payment requirements. As a consequence of a German default on timber deliveries in December 1922, the Reparations Commission declared Germany in default, which led to the Franco-Belgian occupation of the Ruhr in January 1923. At the Lausanne conference, the US informed the British and French that they would not be allowed to default on their war debts. In turn, they recommended that war debts be tied into German reparation payments, to which the Germans objected. On 9 July, an agreement was reached and signed. The Lausanne Conference annulled the Young Plan and required Germany to pay a final, single installment of 3 billion marks, saving France from political humiliation and ending Germany's obligation to pay reparations. During the Great Depression in the 1930's it was Hitlers best chance to give hope to the people of Germany and to join him as he knew what Germany needed the most, a leader who will fight for them. Once Hitler was in control instead of paying the reparations he instead put the money into developing his army and creating a formidable air, naval and ground force. Surprisingly all of this was done in secrecy with no one finding out about it until the war had begun.

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