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Interwar Conditions in Europe 2
The Great Depression 2
Economic Effects: 2
Political Effects: 2
International Diplomacy: 4
1
Oct ‘38: Sudeten Crisis 13
Polish Crisis 1938-39 14
Historiography on Causes of WW2 15
Economic Effects:
❖ ‘29-’32: world trade ↓ 70%
❖ USA (world largest economy):
➢ 25% unemployment
➢ 9k banks closed
➢ International trade ↓ 70%
➢ Turned inward, reduce international trade, as contained many resources
needed (USSR too)
❖ Germany:
➢ 26% unemployment
➢ US trade barriers caused 61% ↓ in industrial production
❖ Britain:
➢ International trade ↓ 60%
➢ Imperial preference (lowering import taxes of empire and increasing taxes on
goods from outside empire)
■ Australia and Canada sell products to India and B
■ Half of B products sold to other parts of empire (which encompassed
half the world)
❖ France
➢ Imperial preference:
■ ⅓ of F industrial production sold to empire (which encompassed 9% of
the globe)
Political Effects:
❖ US
➢ Republican Party lost ‘32; Democrats led by Franklin Roosevelt won
➢ Law and executive orders:
■ Banks temporarily closed
■ Taxes raised
■ Gov spending increased, gov salaries decreased
■ More trade barriers erected
➢ Policy of deficit spending
■ Republican policies unpopular as did not alleviate the effects of GD
➢ FDR to Adolf Berle: ‘90% of all national deficit from ‘21-’39 were payments for
2
past, present and future wars.’
■ Hence, US isolated itself
❖ Britain
➢ Headed by Labour party until ‘31
➢ Attempted to borrow from US banks
■ US placed many conditions that B was unwilling to accept
➢ Aug ‘31: coalition gov (dominated by Conservative, PM from Labour)
➢ Some in Labour not in support coalition (minority supported coalition)
➢ Historiography:
■ PMH Bell: B trade barriers cause countries from Eastern and Western
Europe to gravitate towards Germany. This helped Germany’s
economy and formed closer political relationships. “Over-dependent
on the German market”
➢ Labour Party did not believe in military spending (stockpiling of weapons key
reason of WW1)
■ Military remained weak
■ Economic stress meant that no funds to invest in rearmament
● Worked to limit arms through treaties (London Naval
Conference ‘30 & 2nd London Naval Conference ‘35)
❖ France
➢ Self sufficient in food production
➢ France and colonies established exclusive trading zone
➢ 1935: only had 500k unemployed
➢ Unstable government: `32-`34: 11 governments
❖ Germany
➢ Decided on reduced spending, keeping currency high
■ German goods more expensive; policy failed: 6 million people
unemployed
➢ B and F suspended reparation payments at Lausanne Conference 1932
■ Treaty of Versailles 1919
● Limited 100k troops
● War reparations to France
● Germany’s overseas colonies, sliced off large sections the
country and granting to other states
➢ National Socialist and Communist grew in power (viewed as having a legit
solution to the crisis) as traditional parties were linked with economic failure
➢ `32: Hitler higher majority than communist leader Ernst Thalmann but lost to
president since ‘25: Paul Von Hindenburg; took 1.3 mil votes out of 36 mil
➢ Nazi party appealed more as:
■ communist was against nationalism
■ violent Bolshevik takeover in `17
■ Russian civil war in `18-`21
■ Landowners and industrialist against communism and poured money
into Nazism
● Alan Bullock: Army officers and industrialists supported Hitler’s
stance against communism
➢ 2.6% (`28) -> 37.3% (`32) Nazis representatives in the Reichstag
➢ Late ‘32: coalition gov could not be formed (no party had the majority, but
Nazi party had more than any other party)
➢ Jan `33: President Von Hinderburg appointed Hitler as chancellor
➢ Mar `33: election called to endorse and confirm appointment
■ 44% of seats won (however Hitler outlawed the Communist Party,
3
other candidates were harrassed)
➢ Enabling Act: government can rule by decree instead of through parliament
International Diplomacy:
❖ LON
➢ ‘33: included all European states except USSR
➢ Manchurian Crisis proved that collective security was flawed
➢ GD reduced strength of LON as the strongest nations in it were not equipped
to enforce collective security:
■ B owed huge sums to US and reduced military to save money
■ F maintained army but mostly on used at the border with G; navy also
occupied with G
❖ France
➢ Early ‘20s: alliance with Poland and Czechoslovakia to isolate G
➢ Worked with Italy to isolate G (Italy wanted Corsica: southeast of France: not
a concern: weak)
➢ Kept millions of men in military compared to G who was reduced to 100k
➢ ‘23: F invaded G for not making war reparations
➢ Gov instability: foreign policy inconsistent
■ Different parties grew:
● ‘30s conservatives & fascists popular: supported Abyssinia;
fear USSR & G -> desired large military
● Socialist & Communist parties grew: military funds -> social
welfare programmes; supported LON & collective security
(directed by USSR)
➢ ‘35: most difficult year in GD: G announced rearmament, Italy attacked
Abyssinia (F cannot address it properly due to political unrest and economic
instability)
❖ Britain
➢ More concerned with communism
■ Wanted G to return to normalcy (on B terms)
● Develop stronger economic ties (needed in GD)
■ Believed TOV should be adjusted
■ Did not want to work alone on G issue: x support France in alienating
G; encourage arms reduction
❖ Germany
➢ ‘32: war reparations suspended due to GD M
Ba e
➢ Foreign policy: wanted to end TOV Da m
■ Poland was created in 1919 from G territory lticnzi e
■ Memel: under international administration; ‘23: F Ger Se g
Pola
l
Lithuania annexed it r man asnd
■ Danzig: full G population; LON control;
a S y Cz
n aa Au ec
surrounded by Poland
■ Saar: iron/coal rich; ruled by F
❖ Soviet Union c r stri h
e a
➢ More focussed on domestic issue
■ Late ‘20s: 5 year plan of industrialization
■ ‘32: 2nd Five Year Plan
➢ Perceived Nazi Germany, J and Italy as a threat: joined LON
■ However, other western powers distrustful of communism
4
Italy’s Foreign Policy
Pre-Great Depression
❖ Victor in WW1: weak: Treaty of London ‘15: not granted territory
❖ Effects of WW1:
➢ 2 million soldiers promised farmland (x)
➢ Huge amounts owed to banks and industrialists
❖ Lead to: riots; strikes; dysfunctional parliament; religious interference by the Catholic
church; spread of communist ideology
❖ Mussolini: formed a group financed by bankers and industrialist (Black Shirts)
❖ 1922: March on Rome and threatened to seize government
➢ King named Mussolini PM (soon M called Il Duce)
❖ National Fascist Party only party:
➢ Ban publications
➢ Outlaw labour unions
➢ Resolve long-term disputes with Catholic Church
➢ Create youth groups to teach about fascist ideology
➢ Violence against opponents
❖ Tried to depict fascist Italy as ancient Roman empire:
➢ Usage of fasces (a bundle of bound rods that included an axe carried by
important Roman officials)
➢ Usage of Roman numerals
Great Depression
❖ To survive: traded more extensively with Yugoslavia, Austria, Hungary, Bulgaria,
Romania (they provided raw materials, Italy provided manufactured goods)
➢ Less fear of economic retaliation from West
❖ Created ‘Corporate state’: gov took control of industries through trying to get
industries to cooperate with the gov
5
➢ Industrial boards established with gov and industrial rep to cooperate policy
■ Effect: prices of goods were standardised, and market divided among
competitors (elimating competition) -> all major industries survived:
eg: steel
❖ Started deficit spending: borrow large sums of money to stimulate and help the
cooperating industries
➢ Started making large order for military equipment
➢ Provided jobs to 1 million men by ‘35
■ Historiography: Philip Morgan: “recovery was certainly aided by the
government’s war-related commissions and contracts”
❖ 1933: Mussolini reorganised government
➢ Now: in charge of Ministries of War, Air and Navy, Minister of the Interior,
Minister of Foreign Affairs and PM
❖ Ultimately, GD allowed Italy to pursue a foreign policy more in line with Fascist
ideology compared to that of 1920s
6
➢ Early ‘36: all opposition collapsed
➢ May ‘36: Total defeat in Abyssinia
➢ Italian East Africa formed: Italian Somaliland, Abyssinia and Eritrea combined;
King of Italy -> Emperor of Ethiopia; Addis Ababa, Abyssinia new capital of
East Africa
8
❖ World War 2
➢ May, ‘39: Pact of Steel
■ Support each other in case of War; mutual cooperation in economic
areas; sharing of military aid (Italy and G military alliance; different
from Rome-Berlin Axis ‘36)
➢ Historiography:Philip Morgan: (reasons Italy didn’t want war) Italy’s military
and economic un-readiness to sustain a long war ...needed time to make the
Axis more popular in Italy and prepare the nation politically and
psychologically for war.
9
■
Poland had 300k active soldiers; 700k reserves
■
Creation of Little Entente in ‘20-21: France with Czechoslovakia,
Romania and Yugoslavia (millions of troops against G)
■ Jan ‘23: F & Belgium invaded Ruhr
■ ‘32: USSR completed its first Five Year Plan in ‘32
➢ World Disarmament Conference ‘32:
■ Geneva, Switzerland
■ F would not participate in disarmament talks if B and US did not
guarantee security through alliance
■ G: if F doesn’t limit, force to rearm
➢ March ‘35: introduction of conscription
➢ 2.5k construction of aircrafts
➢ Expansion of navy
➢ Mass production of weapons
➢ ‘39: 700k army with 3 mil reserves
❖ Responses to rearmament
➢ Stresa Front, April ‘35
■ Hitler assured peaceful intentions through proposal of non-aggression
pacts
■ Promised to observe Locarno Treaties ‘25
● Recognise permanent borders between G, F and Belgium after
WW1
● Continue demilitarization of Rhineland
● Negotiate (not war) of Poland’s border with G
■ If other countries limited rearmaments, G would too
➢ France
■ Franco-Soviet Treaty May ‘35 (but powerless because of distrust)
■ Throughout ‘30s: increased military spending and fortified the Maginot
Line
➢ Britain
■ Little support for B rearmament as will increase tax; suffering from the
GD
■ But G rearmament alarmed public
■ Spending on B rearmament increased over 600% between ‘35-’39
10
Jan ‘34: The Polish-German Non-Aggression Pact
❖ Poland did not want to enter conflict with the USSR
❖ 10 years period
➢ Recognition of Poland’s borders
➢ Better diplomatic relation
➢ Increase trade
❖ Did not need to fear Polish military intervention when rearm
❖ Weakened F-Polish alliance
❖ International response:
➢ France: outraged but could not do much (perhaps work with USSR now)
➢ USSR:
■ ‘22 Rapallo Treaty (G& USSR) where all claims against one another
renounced, economically cooperative and recognise diplomatically
(collapsed with the non-aggression pact)
■ Join LON in 1934
■ Ordered Comintern to promote peace, democracy & anti-fascist govs
‘34 Austria
❖ ‘34 June: Hitler met with Mussolini to persuade to let Austria be a satellite state
➢ Austria incident in July ‘34 (failed annexation)
Pacts
❖ Oct ‘36: Rome Berlin Axis
❖ Nov ‘36: Anti-Comintern Pact
11
➢ Japan and G to oppose Communist International ; symbolic that these two
would cooperate in the future
➢ Nov ‘37: Italy joins
12
still developing the Maginot Line and producing weapons
➢ USSR:
■ Had mutual defence treaty in ‘35 (same with Franco-Soviet); Soviet
pledged would go to war but hollow
➢ B:
■ Public: did not oppose Germans living in Germany
■ Not willing to go to war over a state in Central or eastern Europe
■ Placed pressure on Benes to concede to Henlein
❖ July ‘38: F told C would not go to war to prevent loss of Sudeten
❖ Lord Runciman sent to demand C government to comply with demands
❖ While waiting for C to consider, G mobilise 750k troops to the border to force more
concessions
❖ Early Sep: C gave into most of the demands
❖ Henlein under orders to prevent any overall agreement
➢ 2 prominent members of SGP arrested during violent demonstration ->
Henlein ended talks with C
❖ 13 Sep: Chamberlain flew to Germany to discuss with Hitler
➢ French PM Daladier & Chamberlain agreed if any part of C that had
population of 50% G would be ceded to G
❖ 21 Sep: C no choice but to agree
❖ Immediately: H demanded areas that had hungarian/polish people should be ceded
to hungary/Poland, allow G troops to immediately occupy Sudeten (F reject)
❖ Settle on 1 Oct, ‘38 for invasion of Sudeten
❖ 30 Sep ‘38: Munich Agreement
➢ Mussolini alarmed: meeting between Italy, G, F, B in Munich, G on 28 Sep
➢ Stated
■ G recieve Sudeten
■ G troops will occupy between 1 Oct - 10 Oct
■ Plebiscites will be held to determine where the land goes to
■ G troops released from C military service
■ International commission will settle any disputes
➢ Historiography: Correlli Barnett: The Munich Agreement altered the strategic
balance of Europe in Hitler’s favour
❖ 30 Sep: Anglo-German Declaration (G and B would not go to war to resolve
problems)
❖ Result:
➢ France
■ French public in favour of Munich Agreement
■ France weakened by the crisis as lost an ally
■ Showed USSR that treaties contain little value
■ Nov ‘38: military spending increased 300%
■ Dec ‘38: Franco-German Declaration (pledge peace and respect
borders)
➢ Britain
■ B rearmament continued
➢ USSR
■ Realised B and F will accomodate fascist states
➢ Germany
■ Hitler’s popularity soared
■ Czechoslovakia dismantled quickly
● 2 Oct: Poland siezed Tesin
● 6 Oct: Slovakia (east) granted autonomy
13
● 2 Nov: Hungary gains land from Southern C
● 20 Nov: G granted rights to build a highway across C to link G
to Vienna
■ ‘39, March 14: President Emil Hacha of C summoned and told to
either become part of G with some autonomy over internal affairs or
risk invasion
● Memel now returned
15