Jung's plan

Jung's plan ( Young Plan ) - the second plan of reparation payments to Germany after the First World War , replacing the Dawes plan .

The plan provided for a certain reduction in the size of annual payments (on average up to 2 billion marks), the abolition of the reparation tax on industry and a reduction in the taxation of vehicles, and the elimination of foreign control bodies. One of the most important consequences of the adoption of the Jung plan was the early (according to the Treaty of Versailles evacuation was supposed to end only in 1935 ) withdrawal of the occupation forces from the Rhine region .

The plan was adopted at the Hague Conference on Reparations 1929-1930, which was attended by Belgium , Britain , Germany , Greece , Italy , Poland , Portugal , Romania , France , Czechoslovakia , Yugoslavia and Japan . The United States did not formally attend the conference; however, as the initiator of the Jung plan, they put pressure on the conference participants to secure the adoption of this plan. The plan was developed by a group of 14 financial experts (two each from France, Great Britain, Italy, Japan, Belgium, the USA and Germany) led by American Owen Jung and reflected the interests of private, primarily American, German lenders. At the same time, Shalt Yalmar representing the Weimar Republic insisted on reducing the size and changing the terms of reparation payments. However, former Entente members, primarily France and Britain, opposed such a revision of the plan, insisting that Germany regularly pay the amount to cover their US debt payments. Jung, acting as an arbiter, proposed a compromise. According to Jung's plan, during the first 37 years, Germany was to gradually increase its annual contributions from 1,700 million to 2,100 million marks. For the next 22 years (since 1966 ), Germany would have to pay annually amounts equal to the allied debts of European countries in the USA ^[1] .

In practice, Jung’s plan was carried out only until July 1931 , when, due to the outbreak of the global economic crisis , US President Herbert Hoover introduced a moratorium on the payment of American debts on inter-allied war obligations for the period 1931-1932. At the same time, payments of all other interstate payments, including reparation payments, were simultaneously suspended. In connection with the ongoing recession , Jung's plan was officially canceled in 1932 . However, its hardships were used by German nationalist politicians to incite people to chauvinistic sentiments.

Jung’s plan included reducing Germany’s total payments to 113.9 billion gold marks with a maturity of 37 years (with a possible possible revision) and the creation of a special Bank for International Settlements (BIS) instead of a reparation commission.