Mastering Modern World History

by Norman Lowe

  3 Attempts to force the Germans to pay

  The next prime minister, the anti-German Raymond Poincaré, decided that drastic methods were needed to force the Germans to pay and to weaken their powers of revival. In January 1923, French and Belgian troops occupied the Ruhr (the important German industrial area which includes the cities of Essen and Dusseldorf). The Germans replied with passive resistance, strikes and sabotage. A number of nasty incidents between troops and civilians resulted in the deaths of over a hundred people.

  Although the French managed to seize goods worth about £40 million, the whole episode caused galloping inflation and the collapse of the German mark, which by November 1923 was completely valueless. It also revealed the basic difference between the French and British attitudes towards Germany: while France adopted a hard line and wanted Germany completely crippled, Britain now saw moderation and reconciliation as the best security; she believed that an economically healthy Germany would be good for the stability of Europe (as well as for British exports). Consequently Britain strongly disapproved of the Ruhr occupation and sympathized with Germany.

  (b) A network of alliances and a strong League

  At the same time, the French tried to increase their security by building up a network of alliances, first with Poland (1921) and later with Czechoslovakia (1924), Romania (1926) and Yugoslavia (1927). This network, known as the ‘Little Entente’, though impressive on paper, did not amount to much because the states involved were comparatively weak. What the French needed was a renewal of the old alliance with Russia, which had served them well during the First World War; but this seemed out of the question now that Russia had become communist.

  The French worked for a strong League of Nations, with the victorious powers acting as a military police force, compelling aggressive powers to behave themselves. However, in the end it was the much vaguer Wilson version of the League that was adopted. French disappointment was bitter when Britain took the lead in rejecting the Geneva Protocol, which might have strengthened the League (see Section 3.4(e)). Clearly there was no point in expecting much guarantee of security from that direction.

  (c) Compromise and reconciliation

  By the summer of 1924, when the failure of Poincaré’s Ruhr occupation was obvious, the new premier, Herriot, was prepared to accept a compromise solution to the reparations problem; this led to the Dawes Plan (see Section 4.1).

  During the Briand era (he was Foreign Minister in 11 successive governments between 1925 and 1932), the French approach to the German problem was one of reconciliation. Briand persevered with great skill to build up genuinely good relations with Germany, as well as to improve relations with Britain and strengthen the League. Fortunately Stresemann, who was in charge of German foreign policy from November 1923 until 1929, believed that the best way to foster German recovery was by co-operation with Britain and France. The result was the Locarno Treaties, the Kellogg–Briand Pact, the Young Plan and the cancellation of most of the remaining reparations payments (see previous section). There is some debate among historians about how genuine this apparent reconciliation between France and Germany really was. A. J. P. Taylor suggested that though Briand and Stresemann were sincere, ‘they did not carry their peoples with them’; nationalist feeling in the two countries was so strong that both men were limited in the concessions they could offer. The fact that Stresemann was secretly determined to get the frontier with Poland redrawn to Germany’s advantage would have caused friction later, since Poland was France’s ally. He was equally determined to work for union with Austria and a revision of the Versailles terms.

  (d) A tougher attitude towards Germany

  The death of Stresemann in October 1929, the world economic crisis and the growth of support in Germany for the Nazis, alarmed the French, and made them adopt a tougher attitude towards Germany. When, in 1931, the Germans proposed an Austro-German customs union to ease the economic crisis, the French insisted that the matter be referred to the International Court of Justice at the Hague, on the grounds that it was a violation of the Versailles Treaty. Though a customs union made economic sense, the court ruled against it, and the plan was dropped. At the World Disarmament Conference (1932–3) relations worsened (see Section 4.1), and when Hitler took Germany out of the Conference and the League, all Briand’s work was ruined. The German problem was as far from being solved as ever.

  4.3 HOW DID RELATIONS BETWEEN THE USSR AND BRITAIN, GERMANY AND FRANCE DEVELOP BETWEEN 1919 AND 1933?

  For the first three years after the Bolsheviks came to power in Russia (November 1917), relations between the new government and the western countries deteriorated to the point of open war. This was mainly because the Bolsheviks tried to spread the revolution further, especially in Germany. As early as December 1917, they began to pour floods of propaganda into Germany in an attempt to turn the masses against their capitalist masters. Lenin called together representatives from communist parties all over the world to a conference in Moscow in March 1919. It was known as the Third International, or Comintern. Its aim was to bring the world’s communists under Russian leadership and show them how to organize strikes and uprisings. Karl Radek, one of the Russian Bolshevik leaders, went secretly to Berlin to plan the revolution, while other agents did the same in other countries. Zinoviev, the chairman of the Comintern, confidently predicted that ‘in a year the whole of Europe will be Communist’.

  This sort of activity did not endear the communists to the governments of countries like Britain, France, the USA, Czechoslovakia and Japan. These states tried rather half-heart-edly to destroy the Bolsheviks by intervening in the Russian civil war to help the other side (known as the Whites) (see Section 16.3(c)). The Russians were not invited to the Versailles Conference in 1919. By the middle of 1920, however, circumstances were gradually changing: the countries which had interfered in Russia had admitted failure and withdrawn their troops; communist revolutions in Germany and Hungary had failed; and Russia was too exhausted by the civil war to think about stirring up any more revolutions for the time being. At the Third Comintern Congress, in June 1921, Lenin acknowledged that Russia needed peaceful coexistence and co-operation in the form of trade with, and investment from, the capitalist world. The way was open for communications to be reestablished.

  (a) The USSR and Britain

  Relations blew hot and cold according to which government was in power in Britain. The two Labour governments (1924 and 1929–31) were much more sympathetic to Russia than the others.

  After the failure to overthrow the communists, Lloyd George (British prime minister 1916–22) was prepared for reconciliation. This corresponded with Lenin’s desire for improved relations with the west so that Russia could attract foreign trade and capital. The result was an Anglo-Russian trade treaty (March 1921), which was important for Russia, not only commercially, but also because Britain was one of the first states to acknowledge the existence of the Bolshevik government; it was to lead to similar agreements with other countries and to full political recognition. The new rapprochement (drawing together) was soon shaken, however, when at the Genoa conference (1922), Lloyd George suggested that the Bolsheviks should pay war debts incurred by the tsarist regime. The Russians were offended; they left the conference and signed the separate Treaty of Rapallo with the Germans. This alarmed Britain and France, who could see no good coming from what Lloyd George called ‘this fierce friendship’ between the two ‘outcast’ nations of Europe.

  Relations improved briefly in 1924 when MacDonald and the new Labour government gave full diplomatic recognition to the communists. A new trade treaty was signed and a British loan to Russia was proposed. However, this was unpopular with British Conservatives and Liberals who soon brought MacDonald’s government down.

  Under the Conservatives (1924–9), relations with Russia worsened. British Conservatives had no love for the communists, and there was evidence that Russian propaganda was encouraging the Indian demands for independence. Police raide
d the British Communist Party headquarters in London (1925) and the premises of Arcos, a soviet trading organization based in London (1927), and claimed to have found evidence of Russians plotting with British communists to overthrow the system. The government expelled the mission and broke off diplomatic relations with the Russians, who replied by arresting some British residents in Moscow.

  Matters took a turn for the better in 1929 when Labour, encouraged by the new pro-western Foreign Minister, Maxim Litvinov, resumed diplomatic relations with Russia and signed another trade agreement the following year. But the improvement was only short-lived.

  The Conservative-dominated National government, which came to power in 1931, cancelled the trade agreement (1932), and in retaliation the Russians arrested four Metropolitan-Vickers engineers working in Moscow. They were tried and given sentences ranging from two to three years for ‘spying and wrecking’. However, when Britain placed an embargo on imports from Russia, Stalin released them (June 1933). By this time Stalin was becoming nervous about the possible threat from Hitler, and was therefore prepared to take pains to improve relations with Britain.

  (b) The USSR and Germany

  The USSR’s relations with Germany were more consistent and more friendly than with Britain. This was because the Germans saw advantages to be gained from exploiting friendship with the USSR, and because the Bolsheviks were anxious to have stable relations with at least one capitalist power.

  A trade treaty was signed (May 1921), followed by the granting of Russian trade and mineral concessions to some German industrialists.

  The Rapallo Treaty, signed on Easter Sunday 1922 after both Germany and Russia had withdrawn from the Genoa conference, was an important step forward: Full diplomatic relations were resumed and reparations claims between the two states cancelled.

  Both could look forward to advantages from the new friendship: they could co-operate to keep Poland weak, which was in both their interests.

  The USSR had Germany as a buffer against any future attack from the west.

  The Germans were allowed to build factories in Russia for the manufacture of aeroplanes and ammunition, enabling them to get round the Versailles disarmament terms; German officers trained in Russia in the use of the new forbidden weapons.

  In return, the Russians would supply Germany with grain.

  The Treaty of Berlin (1926) renewed the Rapallo agreement for a further five years; it was understood that Germany would remain neutral if Russia were to be attacked by another power, and neither would use economic sanctions against the other.

  About 1930, relations began to cool as some Russians expressed concern at the growing power of Germany; the German attempt to form a customs union with Austria in 1931 was taken as an ominous sign of increasing German nationalism. Russian concern changed to alarm at the growth of the Nazi party, which was strongly anti-communist. Though Stalin and Litvinov tried to continue the friendship with Germany, they also began approaches to Poland, France and Britain. In January 1934, Hitler abruptly ended Germany’s special relationship with the Soviets by signing a non-aggression pact with Poland (see Section 5.5(b)).

  (c) The USSR and France

  The Bolshevik takeover in 1917 was a serious blow for France, because Russia had been an important ally whom she relied on to keep Germany in check. Now her former ally was calling for revolution in all capitalist states, and the French regarded the Bolsheviks as a menace to be destroyed as soon as possible. The French sent troops to help the anti-Bolsheviks (Whites) in the civil war, and it was because of French insistence, that the Bolsheviks were not invited to Versailles. The French also intervened in the war between Russia and Poland in 1920; troops commanded by General Weygand helped to drive back a Russian advance on Warsaw (the Polish capital), and afterwards the French government claimed to have stemmed the westward spread of Bolshevism. The subsequent alliance between France and Poland (1921) seemed to be directed as much against Russia as against Germany.

  Relations improved in 1924 when the moderate Herriot government resumed diplomatic relations. But the French were never very enthusiastic, especially as the French Communist Party was under orders from Moscow not to co-operate with other left-wing parties. Not until the early 1930s did the rise of the German Nazis cause a change of heart on both sides.

  4.4 THE ‘SUCCESSOR’ STATES

  One important result of the First World War in eastern Europe was the break-up of the Austro-Hungarian or Habsburg Empire, and the loss of extensive territory by Germany and Russia. A number of new national states were formed, of which the most important were Yugoslavia, Czechoslovakia, Austria, Hungary and Poland. They are sometimes known as the ‘successor’ states because they ‘succeeded’ or ‘took the place of’ the previous empires. Two of the guiding principles behind their formation were self-determination and democracy; it was hoped that they would act as a stabilizing influence in central and eastern Europe and as a buffer against potential attacks from communist Russia.

  However, they all developed serious problems and weaknesses:

  There were so many different nationalities in the region that it was impossible for them all to have their own state. Consequently it was only the larger national groups which were lucky enough to have their own homeland. Smaller nationalities found themselves once again under what they considered to be ‘foreign’ governments, which, so they claimed, did not look after their interests – for example, Croats in Yugoslavia, Slovaks and Germans in Czechoslovakia, and Germans, White Russians and Ukrainians in Poland.

  Although each state began with a democratic constitution, Czechoslovakia was the only one in which democracy survived for a significant length of time – until the Germans moved in (March 1939).

  They all suffered economic difficulties, especially after the onset of the Great Depression in the early 1930s.

  The states were divided by rivalries and disputes over territory. Austria and Hungary had been on the losing side in the war and greatly resented the way the peace settlement had been forced on them. They wanted a complete revision of the terms. On the other hand, Czechoslovakia and Poland had declared themselves independent shortly before the war ended, while Serbia (which became Yugoslavia) had been an independent state before 1914. These three states were represented at the peace conference and were, on the whole, satisfied with the outcome.

  (a) Yugoslavia

  With a population of around 14 million, the new state consisted of the original kingdom of Serbia, plus Montenegro, Croatia, Slovenia and Dalmatia; it was known as the Kingdom of the Serbs, Croats and Slovenes until 1929, when it took the name Yugoslavia (Southern Slavs). The new constitution provided for an elected parliament, which was dominated by the Serbs, the largest national group. The Croats and the other national groups formed a permanent opposition, constantly protesting that they were being discriminated against by the Serbs. In 1928 the Croats announced their withdrawal from parliament and set up their own government in Zagreb; there was talk of proclaiming a separate Republic of Croatia. The king, Alexander (a Serb), responded by proclaiming himself a dictator and banning political parties; it was at this time that the country was renamed Yugoslavia (June 1929).

  Soon afterwards, Yugoslavia was badly hit by the depression. Largely agricultural, the economy had been reasonably prosperous during the 1920s; but in the early 1930s world agricultural prices collapsed, causing widespread hardship among farmers and workers. In 1934, King Alexander was assassinated in Marseilles as he was arriving for a state visit to France. The murderer was a Macedonian who was connected with a group of Croat revolutionaries living in Hungary. For a time, tensions were high, and there seemed to be danger of war with Hungary. However, the new king, Peter II, was only 11 years old, and Alexander’s cousin Paul, who was acting as regent, believed it was time to compromise. In 1935 he allowed political parties again, and in August 1939 he introduced a semi-federal system which enabled six Croats to join the government.

  In foreign affairs the govern
ment tried to stay on good terms with other states, signing treaties of friendship with Czechoslovakia (1920) and Romania (1921) – a grouping known as the ‘Little Entente’. Further treaties of friendship were signed with Italy (1924 – to last for five years), Poland (1926), France (1927) and Greece (1929). In spite of the treaty with Italy, the Yugoslavs were deeply suspicious of Mussolini. He was encouraging the Croat rebels and was tightening his grip on Albania to the south, threatening to encircle Yugoslavia.

  Disappointed with the economic help they had received from France, and nervous of Mussolini’s intentions, Prince Paul, the regent, began to look towards Nazi Germany for trade and protection. In 1936 a trade treaty was signed with Germany; this led to a significant increase in trade, so that by 1938, Germany was taking over 40 per cent of Yugoslavia’s exports. Friendship with Germany reduced the threat from Mussolini, who had signed the Rome–Berlin Axis agreement with Hitler in 1936. In 1937 therefore, Italy signed a treaty with Yugoslavia. As the international situation deteriorated during 1939, Yugoslavia found itself uncomfortably aligned with the Axis powers.

  (b) Czechoslovakia

  Like Yugoslavia, Czechoslovakia was a multinational state, consisting of some 6.5 million Czechs, 2.5 million Slovaks, 3 million Germans, 700 000 Hungarians, 500 000 Ruthenians, 100 000 Poles and smaller numbers of Romanians and Jews. Although this might look like a recipe for instability, the new state worked well, being based on a solid partnership between Czechs and Slovaks. There was an elected parliament of two houses, and an elected president who had the power to choose and dismiss government ministers. Tomáš Masaryk, president from 1918 until his retirement in 1935, was half Czech and half Slovak. It was the only example in eastern Europe of a successful western-style liberal democracy. On the whole, relations between the different nationalities were good, although there was some resentment among the German-speaking population who lived in Bohemia and Moravia and along the frontiers with Germany and Austria (an area known as the Sudetenland). They had previously been citizens of the Habsburg Empire and complained at being forced to live in a ‘Slav’ state where they were discriminated against, or so they claimed.