The document discusses the consequences of Germany defaulting on reparations payments required by the Treaty of Versailles after World War 1. In response to Germany missing a payment in late 1922, France and Belgium occupied Germany's key industrial Ruhr Valley region in 1923 to seize industrial goods. The German government ordered "passive resistance" where workers refused to work or cooperate. This led to hyperinflation as more money was printed to pay workers, a general strike, and political instability plagued Germany.

1. TREATY OF VERSAILLES
CONSEQUENCES
GERMAN’S
PASSIVE
RESISTANCE

2. Defeat in 1918 led to the
Kaiser’s abdication, a
republic and a new
constitution.
The new Germany
faced huge problems,
not least those caused
by its punishment in the
Treaty of Versailles.

3. The Weimar
government's main
crisis occurred in
1923 after the
Germans missed a
reparations payment
late in 1922.
This set off a chain of
events that included
occupation,
hyperinflation and
rebellions.

4. In November 1922 Germany
defaulted on its reparations
payment as scheduled. The first
reparations payment had taken
all she could afford to pay.
The French believed
Germany could make the
repayment but were
choosing not to, however the
German government argued
they could not afford to pay.

5. In response, France and
Belgium sent troops into
Germany’s main industrial
area, the Ruhr Valley.
Their aim was to confiscate
industrial goods as reparations
payments as they didn’t believe
Germany was unable to pay the
second instalment.
They occupied coal mines,
railways, steel works and
factories – all things that were
important to Germany’s economy.

6. The German government ordered workers to
follow a policy of ‘passive resistance’ –
refusing to work or co-operate with the
foreign troops and in return the
government continued to pay their wages.
The French responded firmly – in the Krupp
steel works, workers refusing to take
orders were shot at.
Other people were expelled from the Ruhr
region altogether.
Overall, 132 were killed and approximately
150,000 expelled from the area.

7. The immediate consequences of the
occupation were not good for the Weimar
government – they decided to print more
money to pay the workers in the region,
contributing to hyperinflation.
A general strike (when all the workers in
the country stopped work) was called, and
political instability was rife.