01:512:104 Lecture Notes - Lecture 27: World Disarmament Conference, Stock Market Crash, Dawes Plan
13 May 2018
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Chapter 27 - The Global Crisis, 1921-1941
1)The Diplomacy of the New Era
a)Replacing the League
i)Harding administration sought to negotiate separate peace treaties w/
Central Powers, find impermanent way to replace League as guarantor of
world peace
ii)Washington Conference of 1921 sought to deal w/ naval arms race btwn
US, GB, Japan: Five-Power Pact limited armaments; Nine-Power Act
continued Chinese Open Door policy; Four-Power Act acknowledged Pacific
territories
iii)Kellogg-Briand Pact 1928 btwn 14 nations to outlaw war as policy measure
iv)New Era efforts to protect peace w/o active international duties
b)Debts and Diplomacy
i)Diplomacy used to ensure free overseas trade thru reducing war and making
financial arrangements w/ other nations
ii)US prosperity depended on Eur economy, which was suffering from war
destruction, Allied debt on US loans, Central reparations US acted to head off
collapse thru 1924 Dawes Plan that created circular loan system where US
loaned Germany money to pay GB + French debt who used $ to pay US debt
iii)System led to increase in Eur debt, US banks and corporations took
advantage of collapsed industries to assert themselves; high US tariffs under
Republicans prevented Eur export of goods to earn money to repay loans
iv)US economic expansion into Latin America during 1920s to better access
rich natural resources, give loans to governments
c)Hoover and the World Crisis
i)Stock market crash of 1929 and worsening problems after 1931, growing
nationalism + new hostile governments faced by Hoover administration
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ii)Hoover promised to recognize new Latin American govt if any collapsed, did
not intervene some defaulted on US loans (against M. Doctrine + R.Corollary)
iii)In efforts to restore Eur economic stability Pres refused to cancel debts-
some nations defaulted; 1932 World Disarmament Conference ended in
failure
iv)Difficulties increased b/c of control by Benito Mussolini’s nationalistic
Fascist Party in Italy & Adolf Hitler’s Nationalist Socialist Party (Nazis)
v)Crisis in Asia when in 1931 Japanese military staged coup against liberal
govt b/c it had allowed China’s leader Chiang Kai-Shek to expand his power in
Manchuria (which had been economically dominated by Japan) Japan
invaded Manchuria + then China itself (Hoover refused to issue sanctions)
vi)Interwar diplomacy of international voluntary cooperation and refusal to
actively commit itself a failure; nation could now adopt internationalism or
become even more nationalistic + isolated would try measures of both
2)Isolationism and Internationalism
a)Depression Diplomacy
i)Early Roosevelt admin foreign policy concerned mainly w/ pressing
economic issues- sought to differ from Hoover by solving war debts +
adopting gold standard. However, 1933 World Economic Conference
accomplished little
ii)FDR forbid continuation of circular loan system, did little to stabilize
international currencies; did adopt Reciprocal trade Agreement Act of 1934 to
advance principles of free trade
b)American and the Soviet Union
i)FDR agreed to recognize Soviet Union in 1933 in hopes of increasing trade
btwn nations (not b/c of lessening of hatred toward Communism)
c)The Good Neighbor Policy
i)“Good Neighbor Policy” toward Latin America focused on trade reciprocity
(free trade);1933 Inter-American Conference administration officially pledged
to not intervene in affairs of Latin nations. Closer economic ties emerged
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
1)the diplomacy of the new era a)replacing the league i)harding administration sought to negotiate separate peace treaties w/ Central powers, find impermanent way to replace league as guarantor of world peace ii)washington conference of 1921 sought to deal w/ naval arms race btwn. Fascist party in italy & adolf hitler"s nationalist socialist party (nazis) v)crisis in asia when in 1931 japanese military staged coup against liberal govt b/c it had allowed china"s leader chiang kai-shek to expand his power in. 2)isolationism and internationalism a)depression diplomacy i)early roosevelt admin foreign policy concerned mainly w/ pressing economic issues- sought to differ from hoover by solving war debts + adopting gold standard. Closer economic ties emerged d)the rise of isolationism i)geneva conference on disarmament disbanded and japan withdrew from. 1921 washington conference; agreements of 1920s collapsed during 1930s ii)many americans supported isolationism b/c internationalism of league of. Austria to create union (anschluss) + demanded czechoslovakia cede.
