Occupation of The Ruhr - Background

Background

By late 1922, the German defaults on payments had grown so regular that a crisis engulfed the Reparations Commission; the French and Belgian delegates urged occupying the Ruhr as a way of forcing Germany to pay more, while the British delegate urged a lowering of the payments. As a consequence of an German default on timber deliveries in December 1922, the Reparations Commission declared Germany in default, which led to the Franco-Belgian occupation of the Ruhr in January 1923. Particularly galling to the French was that the timber quota the Germans defaulted on was based on an assessment of their capacity the Germans made themselves and subsequently lowered. The Allies believed that the government of Chancellor Wilhelm Cuno had defaulted on the timber deliveries deliberately as a way of testing the will of the Allies to enforce the treaty. The entire conflict was further exacerbated by a German default on coal deliveries in early January 1923, which was the thirty-fourth coal default in the previous thirty-six months. The French Premier Raymond Poincaré was deeply reluctant to order the Ruhr occupation and took this step only after the British had rejected his proposals for non-military sanctions against Germany. Frustrated at Germany not paying reparations, Poincaré hoped for joint Anglo-French economic sanctions against Germany in 1922 and opposed military action. However by December 1922 he was faced with Anglo-American-German opposition and saw coal for French steel production and payments in money as laid out in the Treat of Versailles draining away. Poincaré was exasperated with British opposition, and wrote to the French ambassador in London:

"Judging others by themselves, the English, who are blinded by their loyalty, have always thought that the Germans did not abide by their pledges inscribed in the Versailles Treaty because they had not frankly agreed to them. ... We, on the contrary, believe that if Germany, far from making the slightest effort to carry out the treaty of peace, has always tried to escape her obligations, it is because until now she has not been convinced of her defeat. ... We are also certain that Germany, as a nation, resigns herself to keep her pledged word only under the impact of necessity".

Poincaré decided to occupy the Ruhr in 11 January 1923 to extract the reparations himself. The real issue during the Ruhrkampf (Ruhr struggle) in 1923 as the Germans labelled the battle against the French occupation was not the German defaults on coal and timber deliveries but the sanctity of the Versailles treaty. Poincaré often argued to the British that letting the Germans defy Versailles in regards to the reparations would create a precedent that would lead to the Germans dismantling the rest of the Versailles treaty. Finally, Poincaré argued that once the chains that had bound Germany in Versailles were destroyed, it was inevitable that Germany would plunge the world into another world war.

Initiated by French Prime Minister Raymond Poincaré, the invasion took place on 11 January 1923. Some theories state that the French aimed to occupy the centre of German coal, iron, and steel production in the Ruhr area valley simply to get the money. Some others state that France did it to ensure that the reparations were paid in goods, because the Mark was practically worthless because of hyperinflation that already existed at the end of 1922. France had the iron ore and Germany had the coal. Each state wanted free access to the resource it was short of, as together these resources had far more value than separately. (Eventually this problem was resolved in the European Coal and Steel community.)

Following France's decision to invade the Ruhr, the Inter-Allied Mission for Control of Factories and Mines was set up as a means of ensuring coal repayments from Germany.