Recovery of Weimar - WJECRelations with the League of Nations

As part of his policy of fulfilment, Gustav Stresemann wanted to steer Germany into the League of Nations. This international organisation was set up by the Treaty of Versailles and Germany joined in September 1926. Entry into the League was needed for the Locarno Pact to come into operation.

Germany was given great power status on the Council of the League as a permanent member and as a result had the power to veto decisions.

Due to the military limitations imposed at Versailles, Germany was allowed to not participate in collective action by the League against aggressors. Germany used its position as a permanent member to raise matters of German interest within the League.

US investment

Between 1924 and 1930, Germany received 135 long-term loans totalling $1,430 million. $1,293 million came from the USA. They also received short-term loans totalling $1,560 million.

American loans came direct from the government and from private investors. They were lent to both the German federal and state governments to raise money for different spending programmes, such as housing. Loans from the US also went to private firms to help them grow.

American firms, such as GE and General Motors, invested directly in Germany. They supported 79 companies and many factories were built.

As a result of this investment, Americans received interest payments on their loans, or bonuses from their investments.