Reparations imposed on Germany following WWI left the country . American companies were prevented from openly supplying arms to belligerents by the Neutrality Acts, (an amendment was made on 21 September in the form of Cash and Carry) but no restrictions applied to raw materials. In other provinces, e.g., Touraine and Burgundy region, the very dry weather left vegetables and even weeds cooked in the ground so people who bred rabbits for meat had to feed them with tree leaves.[70]. Efforts began to repair the peacetime neglect, but it was too late to prevent a U Boat creeping into the Flow during the night of 14 October and sinking the veteran battleship Royal Oak with over 800 fatalities. In April 1955 the Dutch claim was finally proved conclusive, and Sweden returned about $6.8 million in gold. [citation needed], In America herself, while many small businesses which relied on overseas trade were badly affected; because cheaper foreign imports were unavailable, home producers, such as the North Carolina peppermint trade and the handmade glassware industry in Maryland and Pennsylvania now had the entire domestic market to themselves. "[38] Because of the smog and the lack of aircraft fitted for aerial photography, the British were unable to determine how effective the raid had been; in fact the damage was negligible. However, by the end of December 1939 the Soviets didn't agree to start sending raw materiel since they weren't satisfied by German offers, citing refusal to get some of what they wanted and overly high prices on everyone else, and the actual trade within the framework treaty signed in August only took off in 1940 (see below). by zig-zagging or navigating without lights. The economic war consisted mainly of a naval blockade, which formed part of the wider Battle of the Atlantic, but also included the bombing of economically important targets and the preclusive buying of war materials from neutral countries in order to prevent their sale to the Axis powers. Under the armistice conditions she had to pay the billeting costs of the occupying garrison and a daily occupation indemnity of 300 to 400 million francs. At the start of the war a large proportion of the German merchant fleet was at sea, and around 30% sought shelter in neutral harbours where they could not be attacked, such as in Spain, Mexico, South America, the United States, Portuguese East Africa and Japan[citation needed]. [clarification needed] The ships were based in the Rhine port of Basel, which gave access to the seaport of Rotterdam, until Allied bombing of a German dam interrupted it. Greece was a signatory of the London Agreement on German External Debts in 1953. More disaster followed on 17 April during a daylight "precision" raid on the MAN diesel engine factory in Augsburg. Both East and West Germans wanted their country to be reunified, and after East Germany held its first free elections in March of 1990, a joint East-West Bundestag passed several laws during the summer of 1990 preparing to reunify Germany. Japan signed the Tripartite Pact with Germany and Italy in September 1940 and, after the US ordered a total oil embargo on all "aggressor nations" on 1 August 1941, cutting Japan off from 90% of her oil supply, she looked to the huge reserves in the south Pacific and south east Asia, territories already largely under US, British and Dutch jurisdiction. Instead, East and West Germany grew in wildly different directions depending on which side of that global battle they fell on. It also agreed to provide more than $8 million in gold to make up for that amount of Belgian monetary gold sold to Sweden during the War, but negotiations regarding 8,600 kilograms of Dutch gold ($9.7 million) stalled when Sweden argued that the gold had been acquired before the January 1943 London Declaration on looted gold. Although Spain could gain the restoration of the rock itself and Catalonia under French administration, Franco could see Britain was far from defeated and that British forces backed by its huge powerful navy would occupy the Canary Islands. By now the V1 and V2 launch sites were being increasingly overrun, and with the Allies moving towards the Rhine and the Soviet armies rapidly closing in from the east, large numbers of refugees began to congregate in the cities, creating utter chaos. Germany now looked to Romania for a large part of the oil she needed and to Soviet Union for a wide range of commodities. If she holds out, it will be his triumph. According to The Economist,[when?] In fact, Germany produced large volumes of very high quality coal in the Saar region, but much of it was now being used to produce synthetic rubber, oil and gas. The term Iron Curtain was used to describe the wall dividing the two areas. Together Yugoslavia, Romania and Bulgaria annually exported to Germany a large part of their surplus oil, chromium, bauxite, pyrites, oil-bearing nuts, maize, wheat, meat and tobacco. Even so, by early October the Allies were growing increasingly confident at the effectiveness of their blockade and the apparent success of the recently introduced convoy system. There were 16m French Americans alone, and by early March at least 15 different organizations collectively known as the Coordinating Council for French Relief were distributing aid in France through The American Friends Service Committee, while the Quaker Committee also distributed around $50,000 worth of food, clothing and medical supplies a month throughout France. The lost Dutch and Danish supplies of meat and dairy products were replaced by sources in Ireland and New Zealand. Cholera broke out in concentration camps, and mass public executions added to the estimated 3 million Poles already killed during the invasion. Overview of the reconstruction of Germany, Wirtschaft und Statistik October 1956, Journal published by Statistisches Bundesamt Deutschland. What would happen if these neutrals, with one spontaneous impulse were to do their duty in accordance with the Covenant of the League [of Nations] and stand together with the British and French Empires against aggression and wrong?. Although most South American republics were sympathetic to the Allied cause, the US State Department was frustrated by the attitude of Argentina from the very beginning. We are in this case running a risk in view of the appalling conditions caused by the Germans in Greece." Because Mefo bills did not figure in government budgetary statements, they helped maintain the secret of rearmament and were, in Hitler's own words, merely a way of printing money. They began by raiding airfields and railway stations in France and the Netherlands and badly damaged the Heroya aluminium centre near Trondheim in Norway which produced synthetic cryolite, used in the manufacture of aluminium. How the Welfare State Transformed European Life. [7] The country's economic recovery under the newly formed democratic government was, once it was permitted, swift and effective. The UK, having deprived Spain of her exports of iron ore to Germany entered into a deal to buy the ore instead via the Bay of Biscay, along with copper, mercury and lead to enable the Spanish, who were on the verge of famine, to raise the foreign exchange she needed to buy grain from South America to feed her people. In March 2018 the issue boiled over again when Arkadiusz Mularczyk, a Polish lawmaker, asserted that Germany owed reparations that could be worth as much as $850 billion. By mid-August the attacks were becoming increasingly co-ordinated and successful. The U.S. and Britain were sympathetic to Sweden's difficult position and of her attempts to maintain her neutrality and sovereignty by making important concessions to the Nazis, such as continuing to export timber and iron ore and by allowing the Germans use of their railway system, a privilege which was heavily abused. As more U-boats were commissioned into the German navy, the terrible toll on neutral merchant shipping intensified. [43] The three volume report also covered the legal issues regarding the 1953 renunciation of reparation rights by Poland, and according the report findings: "the alleged unilateral statement of the Council of Ministers of 23 August 1953 on the renunciation of war reparations by the People's Republic of Poland violated the constitution of 22 July 1952 in force at that time, because the matters of ratification and termination of international agreements belonged to the competence of the Council of State, not the Council of Ministers". Essen and Bremen also suffered 1,000 plane raids and upwards of 1,000 tons of bombs. [79] As a result of military operations in Lorraine and Luxembourg, the withdrawal of Swedish ships from trade with German ports, the closing of Swedish Baltic ports to German shipping, and the loss of supplies from Spain, it was estimated that iron ore supplies had been reduced by 65 per cent compared with 1943. Britain was Portugal's largest trading partner and had the right to force her to fight on her side under a 500-year-old alliance, but allowed her to remain neutral; in return Portugal allowed credit when Britain was short of gold and escudos, so that by 1945 Britain owed Portugal 322 million. Although Swiss citizens largely rejected the Nazis and subscribed to the Internationalist view expressed by the League of Nations, in order to survive and continue to receive imports, Switzerland had little choice but to trade with Germany, for which she was paid largely in coal. Indeed, Germany was largely to blame for the two major wars of the 20th century, World War I (WWI) and WWII, both of which cost millions of lives. Another, the "Watussi", was sighted off the Cape by the South African Air Force and the crew immediately set her on fire, trusting the aircrew to bring aid to the passengers and crew. [71] Rationing remained fierce. [51] Following losses of 10% during a raid on 7 November the RAF was ordered to conserve and build up its forces for a spring offensive, by which time a new navigation aid known as GEE would be available and the Avro Lancaster heavy bomber would be entering service. The ship, known as the "Lonely Queen of the North" had seen little action through lack of fuel, and spent much of the war moored in a remote fjord. Supplies of copper from Turkey and Spain had been cut off, and the Germans had lost contact with sources of copper ores at Bor in Yugoslavia and Outokumpu in Finland. Spanish companies did important aircraft work for the Germans, Spanish merchants furnished Germany with industrial diamonds and platinum,[65] and General Franco, still loyal to Hitler because of his support during the civil war, continued to supply Germany with war materials, among them mercury and tungsten. The massive expansion of ship building stretched British shipbuilding capacity including its Canadian yards to the limit. Their view, which many in America and the occupied countries supported, was that it was Germany's responsibility to feed and provide for the people she conquered,[54] and that the plan could not avoid indirectly helping Germany; if aid were given, this would free German goods for use elsewhere. But by the end of the war, though the UK also lost a quarter of its real wealth,[13] Germany was ruined and she had since then experienced a number of severe financial problems; first hyperinflation caused by the requirement to pay reparations for the war, then after a brief period of relative prosperity in the mid-1920s under the Weimar Republic the Great Depression, which followed the Wall Street Crash of 1929, which in part led to the rise in political extremism across Europe and Hitler's seizure of power. in April 1940 the war was costing the UK5m per day out of total government expenditure of 6.5 7m per day. Immediately, newspapers in the United States printed articles speculating about how the Nazi Party's political goals and antisemitic policies might transform Germany. During the mid-1950s, the unemployment rate in Germany was so low that it led to the influx of Turkish immigrants into the country's labor force. Spain supplied Britain with iron ore from the Bay of Biscay, but, as a potential foe, she was a huge threat to British interests as she could easily restrict British naval access into the Mediterranean, either by shelling the Rock of Gibraltar or by allowing the Germans to lay siege to it from the mainland. In much the same style as The 39 Steps, the film centres on the fictitious port of Eastgate (filmed in Ramsgate) where Captain Anderson, a Danish merchant skipper is delayed by the men of the Contraband Control and encounters various enemy spies. The first territories to be conquered included the most productive. They bow humbly in fear of German threats of violence, each one hoping that if he feeds the crocodile enough the crocodile will eat him last and that the storm will pass before their turn comes to be devoured. After World War II began in September 1939, most Americans hoped the United States would remain neutral. In addition, about 45% of pig iron manufacturing had been lost, together with 40% of steel furnace capacity. After World War II commenced in 1939, this U.S. assistance grew ever greater and included such measures as the so-called destroyer deal and the deceptively named Lend-Lease program. Millions of Germans were homeless from Allied bombing campaigns that razed entire cities. When the ministry's consent was received, the ship's papers were returned to the captain along with a certificate of naval clearance and a number of special flags one for each day signifying that they had already been checked and could pass other patrols and ports without being stopped. All other trademarks and copyrights are the property of their respective owners. [62], West Germany paid reparations to Israel for confiscated Jewish property under Nuremberg laws, forced labour and persecution. Hitler's Military Strategy & Goals in World War II. Despite impressive statistics of the quantities of contraband captured, by the spring of 1940 the optimism of the British government over the success of the blockade appeared premature and a feeling developed that Germany was managing to maintain and even increase imports. After apologising to the captain for the trouble, they inspected the ship's papers, manifest and bills of lading. One example was the Mefo bill, a kind of IOU produced by the Reichsbank to pay armaments manufacturers but which was also accepted by German banks. Although the captain went ashore to make a furious protest to the authorities with the American Consulate, the ship was delayed for 40 hours as British Contraband Control checked the records and ship's manifest, eventually removing 235 bags of mail addressed to Germany. Minutes of Ministry of Economic Warfare Committee report, 1940, UK National Archives. In the first week of the war, Britain lost 65,000 tons of shipping; in the second week, 46,000 tons were lost, and in the third week 21,000 tons. There was little effect on production and, with no fighter cover, 7 of the 12 Lancaster bombers were lost, leading to a return to night bombing. The conquest of Poland brought Germany half a million tons of oil per year and more zinc than it would ever need, and Luxembourg, though tiny, brought a well-organized iron and steel industry 1/7th as great as Germany's. Austria was not included in any of these treaties. With the war all but won, there were increasing reports mostly based on paranoia and hearsay that Nazi leaders were preparing to escape justice[81] and were already preparing the way for the next war by secreting funds in neutral nations and moving resources abroad. At the beginning of the war, Germany possessed 60 U-boats, but was building new vessels quickly and would have over 140 by the summer of 1940. But shortly later pursued a policy of radical redrawing of the longstanding Dutch-German border and the transfer of a large part of German territory to the Dutch as reparations. ", Despite past enmity between the two nations, Turkey quickly responded, chartering the SSKurtulus and, after receiving permission from the British, the ship sailed from Istanbul to Piraeus on 6 October with wheat, maize, vegetables, dried fruits and medicines. Elsewhere, the blockade began to do its work. The Soviets began a blockade of West Germany. In November heavy damage was caused by the USAAF to the most important industrial site in Norway, the molybdenum mine at Knaben, 50 miles (80km) from Stavanger. Arrangements for boarding and examining ships were made in the port "Boarding Room", and eventually a team of 2 officers and 6 men set out in a fishing drifter or motor launch to the ship. Even so, a bombing campaign offered the only hope of damaging the German economy,[16] and directives at the end of 1940 stated two objectives: precision attack on German production of synthetic oil, and an attack on German morale by targeting industrial sites in large cities. Conversely, neutrals who went out of their way to co-operate with the measures could expect "favoured nation" status, and have their ships given priority for approval. So much smog was produced by these industries that precision bombing was almost impossible. In June 1944 the British finally secured access to the naval bases on the Azores, and the Allies thereafter threatened Portugal with economic sanctions. The Allied response to the blockade was the Berlin Airlift, in which the Allies supplied West Berlin by bringing in food and supplies on airplanes. Although the Nazi leadership maintained that the Allied strategy of blockade was illegal, they nevertheless prepared to counter it by all means necessary. Because of this, many people began migrating to West Germany. Until late 1940 Hitler hoped to establish peaceful German hegemony over the Balkans as part of his supply hinterland, but after the Soviet occupation of Bessarabia and northern Bukovina from Romania in late June, his hand was forced. Between 1.5 and 2 million are said to have died in the process, depending on source. With the appearance of more durable destroyers and new light escort carriers which could provide convoys with constant air cover, the 'Mid-Atlantic Gap', where ships could not be provided with air cover, was closed, and from mid-1943 the U-boats were all but defeated in the Battle of the Atlantic,[7] although Contraband Control at sea still continued. Some years ago an economic writer put it like this: "The blockade won't make Germany crack, but it will make her brittle." At last, using every plane available including trainee crews, the RAF raided Cologne on 30/31 May 1942 with over 1,000 bombers; although over half the city was destroyed and it was seen as a success, the city made a surprising recovery. They had already lost 23 ships, with many more attacked and dozens of sailors killed, while Sweden, Germany's main provider of iron ore, had lost 19 ships, Denmark 9, and Belgium 3. The Allied powers did not want Germany to have to possibility of waging another war. [45] This was followed by the first of a series of eight raids on Essen which proved a great disappointment. With the food supply reduced by 15% by the blockade and another 15% by poor harvests, starvation and diseases such as influenza, pneumonia, tuberculosis, typhus and cholera were a threat. [15] Despite the success in evacuating a third of a million men at Dunkirk and the later evacuations from St Malo and St Nazaire, the British army left behind 2,500 heavy guns, 64,000 vehicles, 20,000 motor cycles and well over half a million tons of stores and ammunition. By mid 1942 Britain was providing Soviet Union, via the Arctic convoys with an array of vehicles, artillery and ammunition as part of the Lend Lease programme. "Oh, we love him, he's so bloody inhuman. It quite certainly made it possible for us to win and has given us the precious time to make ready for the final blow. Portugal was Europe's leading supplier of tungsten (and scheelite, another member of the wolframite series of tungsten ore minerals), annually providing Germany with at least 2,000 metric tons between 1941 and mid-1944, about 60 percent of her total requirement. German reparations were to be classified into two categories: A (all forms of German reparations except those included in Category B) and B (industrial and capital equipment, merchant ships, and inland water transports).[3][4][2]. [citation needed] Schacht also proved adept at negotiating extremely profitable barter deals with many other nations, supplying German military expertise and equipment in return. If this war is long continued, there is but one implacable end the greatest famine in history. RAF raids on vehicle factories in Milan, Genoa, and Turin on 2 December 1942 only served to unite the Italian population behind the Mussolini dictatorship, and the plan was dropped in favour of the "disorganisation of German industry". Berlin was located in Soviet-controlled territory, but it was decided that Berlin needed to be divided. In early November the MEW published a summary of the position in the occupied lands, giving an assessment of what the Germans were believed to have appropriated from the territories they conquered in 1940 and 1941. many Germans died in the war, leaving a generation gap just like WWI. West Germany developed a strong economy, higher standard of living, and an increased population. [53] Under the plan, the Germans agreed to supply 1m bushels (1 US bushel = 8 US gallons, about 27kg for wheat) of bread grains each month, and the committee was to provide 20,000 tons of fats, soup stock and children's food. On 4 September a tax of 50% was placed on beer and tobacco, and income tax went up to 50%. A ship stopping at a Control port raised a red and white flag with a blue border to signify that it was awaiting examination. Meanwhile, in an attempt to assist the Allies in their liberation of the Netherlands, the exiled Dutch government called for a national rail strike to further disrupt German operations. Since then, the Polish government has taken the position that Poland's 1953 refusal is non-binding because the country was under the sway of the Soviet Union. Although the commandos displayed exceptional courage and the expedition was essentially successful in that a number of ships were damaged, only 2 men survived, including the leader, Major Herbert Hasler, who had to make their way across 80 miles of France, Spain and Gibraltar back to safety. Its Donetz Basin provided 70% of the iron, 50% of the steel, 72% of the aluminium and 35% of the manganese of the USSR, as well as being one of Europe's largest coalfields, yielding 67 million tons per year. The occupied zone contained France's best industries, with a fifth of the world's iron ore in Lorraine, and 6% of its steel production capacity. In addition, Germany remained cut off by the blockade from oversea supplies, such as copper from Chile, nickel from Canada, tin and rubber from the East Indies, manganese from India, tungsten from China, industrial diamonds from South Africa and cotton from Brazil. Why was Germany allowed to exist after WW2? | Physics Forums They penetrated deep into Soviet territory, and within a week completed an encirclement of 300,000 Red Army troops near Minsk and Bialystok. In February 1945 food supplies were reported as being collected in the Austrian and Bavarian Alps for Nazi fortresses and underground factories, and plans were apparently under way for the structural reorganization of the Nazi Party abroad by transferring money into agents' accounts in neutral countries. [41] In Germany herself, there was a chronic shortage of men to work the fields and 30,000 agricultural labourers were brought in from Italy along with thousands of Polish slaves. Motor launches of new Admiralty design were brought into service for coastal work, and later, a larger improved version of the corvette, the frigate was laid down. It had been decided by the Big Three that the threat from Germany required a joint occupation of the country. After Italy's disastrous invasion of Greece on 28 October the British intervened in accordance with the Anglo-Greek Mutual Aid Agreement, occupying Crete and establishing airfields within bombing distance of the Romanian oilfields.
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