What was the purpose of the Dawes Plan?

The Dawes Plan was primarily implemented to address the economic difficulties Germany faced in the aftermath of World War I, particularly concerning the payment of war reparations. Designed in 1924, the plan aimed to stabilize the German economy by restructuring its reparations payments and providing financial aid. This included significant loans from American banks to help rejuvenate Germany's economy, ultimately allowing it to make the required reparations payments to the Allies without causing further economic distress.

Through this assistance, the plan sought to create a foundation for long-term economic stability in Germany, which in turn would contribute to greater overall stability in Europe during the interwar period. The intent was to alleviate tensions surrounding reparations that had already led to hyperinflation and considerable unrest within Germany.

While the other choices touch on various aspects of post-war Europe, they do not accurately capture the core function of the Dawes Plan, which was specifically focused on financial support to enable reparations payments rather than establishing peace treaties, preventing military expansion, or mediating conflicts directly.