The Young Plan (1929)
Reasons for the pact:
The reparations set on Germany were too high, the allies decided to reduce the amount the Weimar Government had to pay in order to help the German economy grow further.
It was a continuation to the original Dawes Plan in 1924 by Charles Dawes and Gustav Stresemann.
It also helped extend the due date of Germany paying back its reparations to the allies.
Aims and terms of the Treaty:
Germany was to have its war debt and reparations owed to the allies reduced by 17%.
Germany was to have its reparations deadline extended till 1988 to pay back.
It removed International control over German factories and railways.
It was the predecessor to what would eventually be discussed in the Lausanne Conference that would eventually discuss the complete removal of reparations for Germany.
Why did it fail?
The Wall street crash occurred in 1929 which led to a temporary suspension of the Young and Dawes plans.
The withdrawal of loans from the United States caused the German economy to collapse with many banks being closed down as well as the amount of unemployed in Germany eventually at around 6.1 million.
However the Young Plan still paved the way for Germany to have its reparations completely removed through the Lausanne conference in 1932.