German reparations for World War II
Encyclopedia
After World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

, both West Germany
West Germany
West Germany is the common English, but not official, name for the Federal Republic of Germany or FRG in the period between its creation in May 1949 to German reunification on 3 October 1990....

 and East Germany were obliged to pay war reparations
War reparations
War reparations are payments intended to cover damage or injury during a war. Generally, the term war reparations refers to money or goods changing hands, rather than such property transfers as the annexation of land.- History :...

 to the Allied governments, according to the Potsdam Conference
Potsdam Conference
The Potsdam Conference was held at Cecilienhof, the home of Crown Prince Wilhelm Hohenzollern, in Potsdam, occupied Germany, from 16 July to 2 August 1945. Participants were the Soviet Union, the United Kingdom, and the United States...

. Other Axis nations were obliged to pay war reparations according to the Paris Peace Treaties of 1947.

Though these reparations exceeded aid from the Marshall Plan
Marshall Plan
The Marshall Plan was the large-scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of World War II in order to combat the spread of Soviet communism. The plan was in operation for four years beginning in April 1948...

, West Germany managed to pay them, in the meantime developing a strong economy (Wirtschaftswunder
Wirtschaftswunder
The term describes the rapid reconstruction and development of the economies of West Germany and Austria after World War II . The expression was used by The Times in 1950...

). East Germany had more harsh payment, but still managed to rise as an industrial power.

Forms of payment

According to the Yalta Conference
Yalta Conference
The Yalta Conference, sometimes called the Crimea Conference and codenamed the Argonaut Conference, held February 4–11, 1945, was the wartime meeting of the heads of government of the United States, the United Kingdom, and the Soviet Union, represented by President Franklin D...

, no reparations to Allied countries would be paid in money. Instead, much of this value consisted of German industrial assets, as well as forced labour. Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...

 would annex German territory, in exchange for Soviet annexation of eastern Poland.

Dismantling of industries

At the beginning of the occupation, the Allies started dismantling the remnants of German industries. The Western Allies however abandoned this plan in favour to the Marshall Plan
Marshall Plan
The Marshall Plan was the large-scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of World War II in order to combat the spread of Soviet communism. The plan was in operation for four years beginning in April 1948...

.

Intellectual property

The Allies confiscated significant values of German patent
Patent
A patent is a form of intellectual property. It consists of a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited period of time in exchange for the public disclosure of an invention....

s, copyright
Copyright
Copyright is a legal concept, enacted by most governments, giving the creator of an original work exclusive rights to it, usually for a limited time...

s and trademark
Trademark
A trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or...

s.

Forced labour

See German prisoners of war in the Soviet Union
German prisoners of war in the Soviet Union
Approximately two million German prisoners of war were held in the Soviet Union during World War II and in the years that followed. Most of them were captured during the great advances of the Red Army in the last year of the war. In the first months of the Soviet-German war, only about 26,000...

, Forced labour of Germans in the Soviet Union and Forced labour of Germans after World War II.

Holocaust victims

West Germany paid reparations to Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...

 and the World Jewish Congress
World Jewish Congress
The World Jewish Congress was founded in Geneva, Switzerland, in August 1936 as an international federation of Jewish communities and organizations...

 for confiscated Jewish property under Nuremberg laws
Nuremberg Laws
The Nuremberg Laws of 1935 were antisemitic laws in Nazi Germany introduced at the annual Nuremberg Rally of the Nazi Party. After the takeover of power in 1933 by Hitler, Nazism became an official ideology incorporating scientific racism and antisemitism...

, forced labour and persecution. However, no reparations were paid for killed Jews during the Holocaust
The Holocaust
The Holocaust , also known as the Shoah , was the genocide of approximately six million European Jews and millions of others during World War II, a programme of systematic state-sponsored murder by Nazi...

, and no reparations were paid to the Romani people.

The Netherlands

The Netherlands demanded reparations, but later desired to annex a large part of German territory. They eventually annexed 69 km2 in 1949, bought back by West Germany in 1957.

Yugoslavia

The Socialist Federal Republic of Yugoslavia
Socialist Federal Republic of Yugoslavia
The Socialist Federal Republic of Yugoslavia was the Yugoslav state that existed from the abolition of the Yugoslav monarchy until it was dissolved in 1992 amid the Yugoslav Wars. It was a socialist state and a federation made up of six socialist republics: Bosnia and Herzegovina, Croatia,...

 received a value of US$ 36 billion, in industrial equipment from dismantled German factories. West Germany also paid 8 million US$ as reparations for forced human experimentation on Yugoslav citizens.

See also

  • World War I reparations
    World War I reparations
    World War I reparations refers to the payments and transfers of property and equipment that Germany was forced to make under the Treaty of Versailles following its defeat during World War I...

  • Allied-occupied Germany
  • Flight and expulsion of Germans (1944–1950)
  • Morgenthau plan
    Morgenthau Plan
    The Morgenthau Plan, proposed by United States Secretary of the Treasury Henry Morgenthau, Jr., advocated that the Allied occupation of Germany following World War II include measures to eliminate Germany's ability to wage war.-Overview:...

  • International Authority for the Ruhr
    International Authority for the Ruhr
    The International Authority for the Ruhr was an international body established in 1949 by the Allied powers to control the coal and steel industry of the Ruhr Area in West Germany....

  • Operation Paperclip
    Operation Paperclip
    Operation Paperclip was the Office of Strategic Services program used to recruit the scientists of Nazi Germany for employment by the United States in the aftermath of World War II...

  • Agreement on German External Debts
    Agreement on German External Debts
    London Agreement on German External Debts, also known as the London Debt Agreement, was a debt relief treaty between the Federal Republic of Germany on one part and on Belgium, Canada, Ceylon, Denmark, the French Republic, Greece, Iran, Ireland, Italy, Liechtenstein, Luxembourg, Norway, Pakistan,...

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