what did the dawes plan provide?

Answer 1

In an agreement of August 1924, the main points of The Dawes Plan were:

1. The Ruhr area was to be evacuated by Allied occupation troops.
2. Reparation payments would begin at 1 billion marks for the first year and should rise over a period of four years to 2.5 billion marks per year.
3. The German Reichsbank would be reorganized under Allied supervision.
4. Foreign loans (primarily from the United States) would be made available to Germany.
5. The sources for the reparation money should include transportation, excise, and custom taxes.

The plan was accepted by Germany and the Allies in the same year and went into effect in September 1924. Although German business picked up and reparation payments were made promptly, it became obvious that Germany could not long continue those huge annual payments. As a result, the Young Plan was substituted in 1929.