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In the years following the First World War, issues of debt repayment and reparations troubled relations between the Allies and the now defeated Germany. The U.S.-sponsored Dawes and Young Plans offered a possible solution to these challenges.
At the end of the First World War, the victorious European powers demanded that Germany compensate them for the devastation wrought by the four-year conflict, for which they held Germany and its allies responsible. Unable to agree upon the amount that Germany should pay at the Paris Peace Conference in 1919, the United States, the United Kingdom, France, and the other Allies established a Reparation Commission to settle the question.

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