The year 1921, while not so perilous for the new Government from
within, was marked by successive steps on the part of the Entente
Powers that rendered still more difficult than before the return of
Germany to economic health and political stability. On the last day
of 1920 the French Government notified the German Government that the
disarmament stipulation of the treaty had not been fulfilled, the
principal complaint being that the Civic Guards (_Einwohnerwehr_) had
not been disbanded in East Prussia and Bavaria. A few weeks later the
Allies issued an ultimatum, fixing eight dates for the fulfilment of
all disarmament demands, using the occupation of the Ruhr as a threat.
The Disarmament Commission reported on June 30 that its work was over.
But the French Government declared that the surrender of existing war
material and the disbanding of irregular organizations were only a
part of the disarmament problem.[19] Measures had to be taken, by
continuing the control, to prevent future infractions of the treaty,
and it was also essential to supervise and limit the manufacture
of anything in Germany that might conceivably be used for warlike
purposes, such as chemicals, Diesel motors, and a host of other things.
It was maintained that all factories should be dismantled that might be
easily converted into war production. This, of course, was a question
that never could be settled. If carried out to its logical conclusion,
it would mean the stoppage of all large-scale industrial activities in
Germany, and entail the emigration of from ten to twenty-five million
Germans. At the same time that disarmament was introduced as a factor
in industrial control, Germany was hit by two new and crushing blows:
the loss of the industrial portion of Upper Silesia; and the fixing of
the total indemnity at an amount which unbiased experts of all nations
declared meant inevitable default, followed immediately by the collapse
of the economic life of Central Europe.
Public-domain text, read in full here on John Shaqi.
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