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Unit 14
by VICTORIA ANGELES - Saturday, February 27, 2016, 09:49 PM

Victoria Angeles


AP US History

27 February 2016

Replacing the League (Washington Conference of 1921)

  • Secretary of State Charles Evans Hughes secured legislation from Congress in 1921 declaring the war with Germany at an end and negotiated separate peace treaties with the former Central Powers

  • Hughes wanted to find something to replace the League as a guarantor of world peace and stability

  • The Washington conference of 1921 was an attempt to prevent what was threatening to become a costly and destabilizing race between America, Britain, and Japan

  • In his speech he talked about proposing a plan for dramatic reductions in the fleets of all three nations and A 10 year moratorium on construction of big warships

  • The conference agreed to most of the terms

  • The Five Power Pact 1922 established limits for total naval tonnage and a ratio of armaments among the signatories

  • For every 5 tons of American and British warships, Japan would maintain 3 and France and Italy 1.75

  • The Nine Power Pact pledged a continuation of the Open Door Policy in China and the Four Power Pact, US, France, Britain, and Japan promised to respect one another's Pacific territories and cooperate to prevent aggression

Kellogg-Briand Pact (1928)

  • This was the official agreement for respecting the territories

  • When Aristide Briand asked the US to join in the alliance against Germany, Frank Kellogg proposed a treaty outlawing war as an instrument of foreign policy

Debts and Diplomacy (Circular Loans)

  • Kellogg, Hughes and other agreed that the first responsibility of diplomacy was to ensure that American overseas trade faced no obstacles to expansion and that once it was established it would remain free on interference

  • The Allied Powers were struggling to pay off the $11billion dollar loan they had after WW1

Circular Loans

  • 1924 Charles D. Dawes negotiated an agreement in which American banks would provide enormous loans to the Germans in which they could begin to pay off their debt while Britain and France would agree to reduce the amount of those payments

  • Dawes won the Nobel Peace Prize although the Dawes Plan did little to solve the problems

  • America would lend money to Germany and they would use that money to pay off their reparations to France and England, and they would use that money to pay their debt to the US  and that continued with even bigger debts to American banks and corporations

  • American automobile manufactured were opening European factories

  • Fordney-McCumber Act of 1922 had created high tariff barriers

  • European nations that were unable to export their goods to the US were finding it harder to earn money to pay off their loans

Economic Expansion in Latin America

  • 1920’s American military forces maintained a presence in numerous countries in the region

  • US investments more than doubled between 1924 and 1929 in Latin America

  • Just as in Europe they were having a hard time repaying back the US

Hoover and the World Crisis

  • Financial crisis began in 1929 and intensified around 1931 and created economic distress as well as produced a dangerous nationalism that threatened the weak international agreements

  • Depression took down some leaders and replaced them with powerful government bent on expansion as a solution to the economic distress

  • Before his inauguration he did a 10 week goodwill tour through the region

  • Once one Latin America fell apart after the other, Hoover announced a new policy in which America would grant diplomatic recognition to any standing government in the region without a question

  • He refused to permit American intervention when several Latin American countries defaulted on debt obligations to the US 1931

  • When Hoovers proposed moratorium on debts in 1931 failed to attract support or produce financial stability, economists and political leaders appealed to the president to cancel all war debts to the US (Hoover refused)

  • Fascist leaders were threatening an active campaign of imperial expansion

  • Adolf Hitler was growing with more and more support


  • Chiang insisted on expanding his government power in manchuria, Japan failed to take forceful steps and their military leaders staged a coup in 1931 seizing control of foreign policy from the weakened liberals

  • By the beginning of 1932 the conquest of Manchuria was complete

Depression Diplomacy (FDR’s “bombshell”)

  • Hoover believed that by resolving the war debts and reinforcing the Gold Standard would the American economy recover, from there he had participated in the World Economic Conference in 1933

  • Roosevelt had decided to allow the gold value of the dollar to enable American goods

  • He released a bombshell message repudiating the views of most of the delegates and rejecting agreement on current stabilization

  • During the Conference it ended without an agreement until 1934 when the administration agreed on negotiations to stabilize the Western currencies

  • In 1934 he signed a bill that forbade American banks from making loans to any nation to any nation in default on its debts within months war debts except Finland had stopped

Reciprocal Trade Agreement Act

  • Roosevelt approved the act of 1934, it authorized the administration to negotiate treaties lowering tariffs by as much as 50% in return for reciprocal reductions by other nations

  • By 1939  treaties were negotiated with 21 countries and the result was an increase in American trade by 40%

America and the Soviet Union

  • Relations with the Soviet Union had increased because of America's hopes in expanding foreign trade

  • Soviet Union was a powerful source of trade

  • In 1933 Soviet minister maxim reached an agreement with the president in Washington, the Soviets would cease their propaganda efforts in the US and protect American citizens in Russia, the US would then recognize the communist regime

The Good Neighbor Policy (Inter-American Conference)

  • It was the American effort to enhance both diplomatic and economic relations with Latin America

  • At the conference in 1933 Secretary of state hull signed a formal convection declaring that no state can get into any internal or external affairs of each other

  • Instead of military they tried to use economic influence

  • Did nothing to continue the growth of the relations with Latin America

The Rise of Isolationism (Sources of Isolationism)

  • Many people were for isolation

  • Roosevelt was suspicious of it but tried to keep a world peace

  • 1935 asked the Senate to ratify a treaty to make the US a member of the World Court a treaty that would have expanded Americas symbolic commitment to internationalism without increasing responsibilities

Neutrality Acts

  • It was obvious that Italy was going to invade Ethiopia trying to expand its colonial holdings in Africa, when trying to keep the US out, they act was created

  • More neutrality acts were created in 1936 and 1937 that tried to prevent the US from going into a war


  • Mussolini had launched his attack on Ethiopia in 1935, when they League of Nations protested, Italy had resigned from the organization and formed an alliance with Nazi germany

“Quarantine” Speech

  • 1937 Japan launched an assualt, they attacked China’s five northern provinces

  • The president gave a speech that warned people about Japans aggression and how it would affect the world peace, he also said that aggressors should be quarantined by the international community to prevent war

  • December 12, 1937 Japanese aviators bombed and sank the US gunboats Panay

The Failure of Munich

  • Hitler moved the German army into the Rhinland, which broke the Versailles Treaty

  • 1938 german forces marched into Austria and Hitler proclaimed a union

Munich Conference

  • September 29 Hitler met with leaders of France and Great Britain at Munich to try and solve the crisis, they agreed for the demands in Czechoslovakia as long as he did not ask to expand any further

Failure of “Appeasement”

  • It was a policy which came to fail, 1939 Hitler occupied the remaining areas of Czechoslovakia, violating the Munich agreement he then issued threats to Poland

  • France and Great Britain gave assurance that if there was an invasion they would assist

  • Stalin signed a non-aggression pact with Hitler in 1939 freeing the Germans of war

  • September 1, 1939 he launched a full scale invasion of Poland, France and Great Britain then declared war on Germany two days later (WW11)

  • World War II strengthened the Federal Government

  • federal agencies like the War Production Board, War Manpower Commission, and Office of Price Administration took unprecedented control of the economy.

  • entire industries were completely taken over by the government, the federal government fixed wages, rents, prices, and especially production quotas

  • Unemployment dropped from 14% in 1940 to 2% in 1943

  • by 1944 American factories were producing an airplane every five minutes and a ship every day. US gross national product went from 91 billion to 214 billion during the war.

  • the federal government began the practice of withholding taxes from paychecks

  • the government forced employers to recognize unions in order to prevent labor strife and keep the factories humming so that war production would not decrease

  • But my 1944 women made up 1/3 of the civilian labor force in addition to the 350 thousand who were serving in the military

  • Congress did pass the GI Bill of Rights, officially the Serviceman's Readjustment Act, to attempt to prevent widespread unemployment for returning soldiers

  • The Cold War is called "cold" because it supposedly never heated up into actual armed conflict

  • us feared the rise of communism because it threatened the sales of goods overseas