Mastering Modern World History

by Norman Lowe

  During the prosperous years of the 1920s, Americans tried to increase trade and profits by investment abroad, in Europe, Canada, and in Central and South America. It was inevitable therefore, that the USA should take an interest in what was happening in these areas. There was, for example, a serious dispute with Mexico, which was threatening to seize American-owned oil wells; a compromise solution was eventually reached.

  The Washington Conferences (1921–2) were called by President Harding because of concern at Japanese power in the Far East (see Section 4.1(b)).

  Allied war debts to the USA caused much ill-feeling. During the war the American government had organized loans to Britain and her allies amounting to almost 12 billion dollars at 5 per cent interest. The Europeans hoped that the Americans would cancel the debts, since the USA had done well out of the war (by taking over former European markets), but both Harding and Coolidge insisted that repayments be made in full. The Allies claimed that their ability to pay depended on whether Germany paid her reparations to them, but the Americans would not admit that there was any connection between the two. Eventually Britain was the first to agree to pay the full amount, over 62 years at the reduced interest rate of 3.3 per cent. Other states followed, the USA allowing much lower interest rates depending on the poverty of the country concerned; Italy got away with 0.4 per cent, but this predictably caused strong objections from Britain.

  Faced with the German financial crisis of 1923, the Americans had to change their attitude and admit the connection between reparations and war debts. They agreed to take part in the Dawes and Young Plans (1924 and 1929), which enabled the Germans to pay reparations. However, this caused the ludicrous situation in which America lent money to Germany so that she could pay reparations to France, Britain and Belgium, and they in turn could pay their war debts to the USA. The whole setup, together with American insistence on keeping high tariffs, was a contributory cause of the world economic crisis (see Section 22.6), with all its far-reaching consequences.

  The Kellogg–Briand Pact (1928) was another notable, though useless, American foray into world affairs (see Section 4.1(f)).

  Relations with Britain were uneasy, not only because of war debts, but because the Conservatives resented the limitations on British naval expansion imposed by the earlier Washington agreement. MacDonald, anxious to improve relations, organized a conference in London in 1930. It was attended also by the Japanese, and the three states reaffirmed the 5:5:3 ratio in cruisers, destroyers and submarines agreed at Washington. This was successful in re-establishing friendship between Britain and the USA, but the Japanese soon exceeded their limits.

  The USA returned to a policy of strict isolation when the Japanese invaded Manchuria in 1931. Although President Hoover condemned the Japanese action, he refused to join in economic sanctions or to make any move which might lead to war with Japan. Consequently Britain and France felt unable to act and the League was shown to be helpless. Throughout the 1930s, though acts of aggression increased, the Americans remained determined not to be drawn into a conflict.

  FURTHER READING

  Cohrs, P. O., The Unfinished Peace after World War 1: America, Britain and the Stabilisation of Europe, 1919–1932 (Cambridge University Press, 2006).

  Henig, R., Versailles and After, 1919–33 (Routledge, 2nd edition, 2011).

  Marks, S., The Illusion of Peace: International Relations in Europe, 1918–1933 (Macmillan, 2nd edition, 2003).

  Overy, R. and Wheatcroft, A., The Road to War: The Origins of World War II (Vintage, 2009).

  Steiner, Z., The Lights that Failed: European International History 1919–1933 (Oxford University Press, 2005).

  QUESTIONS

  Assess the reasons why there were no major wars during the 1920s.

  How far can it be said that the USA followed a policy of strict isolation in foreign affairs during the 1920s and early 1930s, and what effects did this policy have on international relations?

  How did the fact that Russia was a Communist state affect international relations between 1920 and 1939?

  There is a document question about German foreign policy and international relations, 1920–32 on the website.

  Chapter 5

  International relations, 1933–9

  SUMMARY OF EVENTS

  This short period is of crucial importance in world history because it culminated in the Second World War. Economic problems caused the Locarno spirit to fade away, and the new rule seemed to be: every country for itself. Affairs were dominated by the three aggressive powers – Japan, Italy and Germany; their extreme nationalism led them to commit so many acts of violence and breaches of international agreements that in the end, the world was plunged into total war.

  Japan became the first major aggressor with its successful invasion of the eastern part of China, known as Manchuria, in 1931. Both Hitler and Mussolini took note of the failure of the League of Nations to curb Japanese aggression. Hitler, by far the most subtle of the three, began cautiously by announcing the reintroduction of conscription (March 1935). This breach of Versailles caused Britain, France and Italy to draw together briefly in suspicion of Germany. At a meeting held in Stresa (on Lake Maggiore in northern Italy), they condemned Hitler’s action, and soon afterwards (May) the French, obviously worried, signed a treaty of mutual assistance with the USSR.

  However, the Stresa Front, as it was called, was only short-lived: it was broken in June 1935 when the British, without consulting France and Italy, signed the Anglo-German Naval Agreement; this allowed the Germans to build submarines – another breach of Versailles. This astonishing move by Britain disgusted France and Italy and destroyed any trust which had existed between the three of them. Mussolini, encouraged by Japanese and German successes, now followed suit with his successful invasion of Abyssinia (October 1935), which met only half-hearted resistance from the League and from Britain and France.

  March 1936 saw Hitler sending troops into the Rhineland, which had been demilitarized by the Versailles Treaty; Britain and France again protested but took no action to expel the Germans. An understanding then followed (October 1936) between Germany and Italy, Mussolini having decided to throw in his lot with Hitler; it was known as the Rome–Berlin Axis. The following month Hitler signed the Anti-Comintern Pact with Japan. (The Comintern, or Communist International, was an organization set up in 1919 by Lenin with the aim of helping communist parties in other countries to work for revolution.) During the summer of 1936 the Spanish Civil War broke out when right-wing groups (Nationalists) tried to overthrow the left-wing Republican government. The conflict quickly developed an international significance when both Hitler and Mussolini, flexing their military muscles, sent help to Franco, the Nationalist leader, while the Republicans received Soviet help (see Section 15.3(c)). Predictably, Britain and France refused to intervene and by 1939 Franco was victorious.

  In 1937 the Japanese took full advantage of Europe’s preoccupation with events in Spain to embark on a full-scale invasion of northern China. The resulting Sino-Japanese War eventually became part of the Second World War.

  By this time it was clear that the League of Nations, working through collective security, was totally ineffective. Consequently Hitler, now sure that the Italians would not object, carried out his most ambitious project to date – the annexation of Austria (known as the Anschluss – ‘forcible union’) in March 1938. Next he turned his attentions to Czechoslovakia and demanded the Sudetenland, an area containing three million Germans, adjoining the frontier with Germany. When the Czechs refused Hitler’s demands, the British prime minister, Neville Chamberlain, anxious to avoid war at all costs, took up Hitler’s invitation to a conference at Munich (September 1938), at which it was agreed that Germany should have the Sudetenland, but no more of Czechoslovakia.

  War seemed to have been averted. But the following March, Hitler broke this agreement and sent German troops to occupy Prague, the Czech capital. At this, Chamberlain decided that Hitler had gone too
far and must be stopped. When the Poles rejected Hitler’s demand for Danzig, Britain and France promised to help Poland if the Germans attacked. Hitler did not take these British and French threats seriously, and grew tired of waiting for Poland to negotiate. After signing a non-aggression pact with Russia (August 1939), the Germans invaded Poland on 1 September. Britain and France accordingly declared war on Germany.

  5.1 RELATIONS BETWEEN JAPAN AND CHINA

  (a) The Japanese invasion of Manchuria in 1931

  The motives behind this were mixed (see Section 15.1(b)). The Japanese felt it was essential to keep control of the province because it was a valuable trade outlet. China seemed to be growing stronger under the rule of Chiang Kai-shek, and the Japanese feared this might result in their being excluded from Manchuria. At the League of Nations, Sir John Simon, the British Foreign Secretary, presented a strong defence of Japan’s actions. Japan had been involved in the province since the 1890s, and was given Port Arthur and a privileged position in South Manchuria as a result of the Russo-Japanese War (1904–5). Since then, the Japanese had invested millions of pounds in Manchuria in the development of industry and railways. By 1931 they controlled the South Manchurian Railway and the banking system; they felt they could not stand by and see themselves gradually squeezed out of such a valuable province with a population of 30 million, especially when the Japanese themselves were suffering economic hardship because of the Great Depression. The Japanese announced that they had turned Manchuria into the independent state of Manchukuo under Pu Yi, the last of the Chinese emperors. This fooled nobody, but still, no action was taken against them. The next Japanese move, however, could not be justified, and could only be described as flagrant aggression.

  (b) The Japanese advance from Manchuria

  In 1933 the Japanese began to advance from Manchuria into the rest of north-eastern China, to which they had no claim whatsoever. By 1935 a large area of China as far as Beijing (Peking) had fallen under Japanese political and commercial control (see Map 5.1), while the Chinese themselves were torn by a civil war between Chiang Kai-shek’s Kuomintang government and the communists led by Mao Zedong (Mao Tse-tung) (see Section 19.3).

  Map 5.1 Japanese expansion 1931–42

  (c) Further invasions

  After signing the Anti-Comintern Pact with Germany (1936), the Japanese army seized the excuse provided by an incident between Chinese and Japanese troops in Peking to begin an invasion of other parts of China (July 1937). Although the prime minister, Prince Konoye, was against such massive intervention, he had to give way to the wishes of General Sugiyama, the war minister. By the autumn of 1938 the Japanese had captured the cities of Shanghai, Nanking (Chiang Kai-shek’s capital) and Hankow, committing terrible atrocities against Chinese civilians. However, complete victory eluded the Japanese: Chiang had reached an understanding with his communist enemies that they would both co-operate against the invaders. A new capital was established well inland at Chungking, and spirited Chinese resistance was mounted with help from the Russians. However, Japanese troops landed in the south of China and quickly captured Canton, but Chiang still refused to surrender or accept Japanese terms.

  Meanwhile the League of Nations had again condemned Japanese aggression but was powerless to act, since Japan was no longer a member and refused to attend a conference to discuss the situation in China. Britain and France were too busy coping with Hitler to take much notice of China, and the Russians did not want full-scale war with Japan. The USA, the only power capable of effectively resisting Japan, was still bent on isolation. Thus, on the eve of the Second World War, the Japanese controlled most of eastern China (though outside the cities their hold was shaky) while Chiang held out in the centre and west.

  5.2 MUSSOLINI’S FOREIGN POLICY

  In the early days of Mussolini’s regime (he came to power in 1922 – see Section 13.1(e)), Italian foreign policy seemed rather confused: Mussolini knew what he wanted, which was ‘to make Italy great, respected and feared’, but he was not sure how to achieve this, apart from agitating for a revision of the 1919 peace settlement in Italy’s favour. At first he seemed to think an adventurous foreign policy was his best line of action, hence the Corfu Incident (see Section 3.4(d)) and the occupation of Fiume in 1923. By an agreement signed at Rapallo in 1920, Fiume was to be a ‘free city’, used jointly by Italy and Yugoslavia; after Italian troops moved in, Yugoslavia agreed that it should belong to Italy. After these early successes, Mussolini became more cautious, perhaps alarmed by Italy’s isolation at the time of Corfu. After 1923 his policy falls roughly into two phases with the break at 1934, when he began to draw closer towards Nazi Germany.

  (a) 1923–34

  At this stage Mussolini’s policy was determined by rivalry with the French in the Mediterranean and the Balkans, where Italian relations with Yugoslavia, France’s ally, were usually strained. Another consideration was the Italian fear that the weak state of Austria, along her north-eastern frontier, might fall too much under the influence of Germany; Mussolini was worried about a possible German threat via the Brenner Pass. He tried to deal with both problems mainly by diplomatic means:

  He attended the Locarno Conference (1925) but was disappointed when the agreements signed did not guarantee the Italian frontier with Austria.

  He was friendly towards Greece, Hungary, and especially Albania, the southern neighbour and rival of Yugoslavia. Economic and defence agreements were signed, with the result that Albania was virtually controlled by Italy, which now had a strong position around the Adriatic Sea.

  He cultivated good relations with Britain: he supported her demand that Turkey should hand over Mosul province to Iraq, and in return, the British gave Italy a small part of Somaliland.

  Italy became the first state after Britain to recognize the USSR; a non-aggression pact was signed between Italy and the USSR in September 1933.

  He tried to bolster up Austria against the threat from Nazi Germany by supporting the anti-Nazi government of Chancellor Dollfuss, and by signing trade agreements with Austria and Hungary. When Dollfuss was murdered by the Austrian Nazis (July 1934), Mussolini sent three Italian divisions to the frontier in case the Germans invaded Austria; the Nazis immediately called off their attempt to seize power in Austria. This decisive anti-German stand improved relations between Italy and France. However, though he was now highly respected abroad, Mussolini was getting impatient: his successes were not spectacular enough.

  (b) After 1934

  Mussolini gradually shifted from extreme suspicion of Hitler’s designs on Austria to grudging admiration of Hitler’s achievements and a desire to imitate him. After their first meeting (June 1934), Mussolini described Hitler contemptuously as ‘that mad little clown’, but he later came to believe that there was more to be gained from friendship with Germany than with Britain and France. The more he fell under Hitler’s influence, the more aggressive he became. His changing attitude is illustrated by events:

  When Hitler announced the reintroduction of conscription (March 1935), Mussolini joined the British and French in condemning the German action and guaranteeing Austria (the Stresa Front, April 1935). Both British and French carefully avoided mentioning the Abyssinian crisis, which was already brewing; Mussolini took this to mean that they would turn a blind eye to an Italian attack on Abyssinia, regarding it as a bit of old-fashioned colonial expansion. The Anglo-German Naval Agreement signed in June (see Section 5.3(b), Point 6) convinced Mussolini of British cynicism and self-interest.

  The Italian invasion of Abyssinia (Ethiopia) in October 1935 was the great turning point in Mussolini’s career. Italian involvement in the country, the only remaining independent state left in Africa, went back to 1896, when an Italian attempt to colonize it had ended in ignominious defeat at Adowa. Mussolini’s motives for the 1935 attack were: Italy’s existing colonies in East Africa (Eritrea and Somaliland) were not very rewarding, and his attempts (by a treaty of ‘friendship’ signed in 1928) to reduce Abyssinia
to a position equivalent to that of Albania had failed. The Emperor of Abyssinia, Haile Selassie, had done all he could to avoid falling under Italian economic domination.

  Italy was suffering from the depression, and a victorious war would divert attention from internal troubles and provide a new market for Italian exports.

  It would please the nationalists and colonialists, avenge the defeat of 1896 and boost Mussolini’s sagging popularity.

  The Italian victory over the ill-equipped and unprepared Ethiopians was a foregone conclusion, though they made heavy weather of it. Its real importance was that it demonstrated the ineffectiveness of collective security. The League condemned Italy as an aggressor and applied economic sanctions; but these were useless because they did not include banning sales of oil and coal to Italy, even though the resulting oil shortage would have seriously hampered the Italian war effort. The League’s prestige suffered a further blow when it emerged that the British Foreign Secretary, Sir Samuel Hoare, had made a secret deal with Laval, the French prime minister (December 1935), to hand over a large section of Abyssinia to Italy; this was more than the Italians had managed to capture at that point (see Map 5.2). Public opinion in Britain was so outraged that the idea was dropped.