IB Docs (2) Team
6. Significance of First World War for the US' hemispheric status
Although the US did not join the League of Nations or the Permanent Court of Justice after the First World War, it did not return to its pre-war policy of isolation. Although there was strong support for this policy among many groups in the US, the country had many global economic and military interests meaning that it remained a key player in international agreements, and also continued to play a dominant role in Latin America.
US occupation of the Dominican republic
Guiding questions:
What was the US' involvement in global affairs after the First World War?
How significant was the First World War for US relations with Latin America?
When and why did the US military intervene in Latin America during and after the First World War?
How did relations with Canada develop during and after the war?
What are historians' perspectives on the significance of the war for the United States’ hemispheric status?
1. What was the US' involvement in global affairs after the First World War?
The US’ rejection of the Treaty of Versailles and its decision not to join the League of Nations or the Permanent Court of International Justice seemed to be in line with the pre-war isolationist foreign policy. Senator William Borah promoted the withdrawal of troops from Latin America and Secretary State to President Harding, Charles Evan Hughes asserted that the US should only use force in the region in order to protect the Panama canal, and even then only as a last resort.
However, the US had global economic interests which the government had to safeguard. This meant it remained a key player in certain international forums and in certain international events:
- After the First World War, Wilson sent troops to Russia to fight against the Bolsheviks. US forces were committed for 19 months but were withdrawn as the Whites were defeated by the Reds in the Civil War (see Case Study: Russian Civil War (ATL) )
- Wilson also understood that naval power was key to US security and protecting its international interests. The 1916 naval bill was the beginning of the emergence of the US as the supreme naval power overtaking Britain and Germany.
- US cooperated with international agencies in 1920s on trade and drug trafficking.
- US led diplomatic efforts to limit arms, for example the Washington Disarmament Conference 1921-22. The US had particular concerns regarding the expansionist aims of Japan in the pacific.
- US promoted peace. The US, and eventually 62 other nations, signed the Kellogg-Briand Pact in 1928 which renounced war as a tool of foreign policy.
The US was also involved in resolving issues with war debts and reparations. Britain and France owed most of the post-war debt of $10 billion to the US. Presidents Harding and Coolidge resisted Allied pressure to cancel the debt and only reduced interest. But European states struggled even with lower interest rates to repay. The 1922 Fordney-McCumber Tariff act made it more difficult for Europeans to earn dollars through exports due to higher tariffs on their goods. Allied powers were dependent on German reparation payments, however Germany defaulted on these in 1923 and the French invaded the Ruhr. To resolve a developing international financial crisis president Coolidge sent Charles Dawes and Owen Young to investigate. The Dawes Plan 1924 fixed payments for 5 years and gave Germany a large loan – which meant the reparation payments were drawn from US banks. The US intervened in Europe again in 1929 with the Young Plan which reduced the reparations total and extended the repayment period to 1988.
Task One
ATL – Thinking and Self-management skills
The post-war period saw a period of boom for the US economy.
- 1920s saw significant increase in trade - exports rose from $3.8 billion in 1922 to $5.1 billion in 1929.
- 1920s saw the development of multinational companies - main markets were Canada, western Europe and Japan.
In pairs review the ‘Dollar Diplomacy’ policy of President William Howard Taft.
Draft a short advisory document for President Warren G Harding regarding this approach to foreign policy in the post-war period. Essentially, foreign policy should serve business interests – remember Republicans believe this should be profitable and cheap! The parameters should be to extend US influence via its economic power while keeping actual military costs to the minimum.
2. How significant was the First World War for US relations with Latin America?
Task One
ATL – Research skills
In small groups investigate the role of two Latin American nations in the First World War.
Click on the eye for some key material to get you started
Brazil remained neutral in the First World War until 1917. However, the Germans sunk Brazilian ships off the French coast and Brazil declared war on the Central Powers in October 1917. Limited commitment due to opposition to deployment of troops in Europe, political impact of the Bolshevik revolution and the effects of the Spanish flu pandemic. Nevertheless, Brazil did have the right to send a delegation to the Paris Peace Conference. Brazil was permitted to incorporate seized Central Powers ships into its fleet and was entitled to compensation for sunk coffee shipments. Due to high demand for products during the war Brazil’s industrial sector had developed rapidly.
Uruguay had also broken off diplomatic relations with Germany during the war, however, Argentine relations with the US deteriorated when it refused to join the war. The situation was tricky for Argentina as it had large British and German populations and corresponding investments. Staying out of the war was economically beneficial as Argentina was able to trade with the Allies and offered generous loans particularly to Britain as a ‘benevolent neutral’. It also significantly increased trade with the US.
As you will have explored in the previous unit President Theodore Roosevelt had invoked the Roosevelt Corollary to justify intervention via the Monroe Doctrine in Latin America. The Roosevelt Corollary had led to US threats of, or actual direct, military interventions whenever it was deemed that debts were not being paid, business interests were threatened or US access to natural resources was being limited. President Wilson had sent troops into Mexico in 1914, into Haiti in 1915 and then deployed forces to the Dominican Republic in 1916. Troops were then again sent into Mexico in 1916, into Cuba in 1917 and in Panama in 1918. During Wilson’s presidency the US also occupied Nicaragua and put in power a president that signed favourable agreements. In addition, the US gained Colombian acceptance of the independence of Panama (see charts below in Activity 2].
US economic involvement after the First World War:
As you can see from the points below US economic influence extended to political influence across the region:
- Both victorious and defeated European powers were unable to provide economic support to Latin American nations due to their huge war debts so US emerged as key creditor nation replacing the Europeans
- Rockefeller Foundation also set up philanthropic activities in Latin America
- US was Brazil’s main source of capital in 1920s.
- 61 branches of US banks opened across western hemisphere
- By 1929 US investment in Latin American countries had grown from $1.5 to $3 billion
- US was key to utility provision in Latin America: In 1923, the American and Foreign Power Company was set up by the US company General Electric. In 1929 this company controlled electric power supply in 8 Latin American nations.
- International Telephone and Telegraph controlled the telephone systems in Mexico, Argentina, Chile and Peru by 1930.
- US companies dominated media from movies and radio to telecommunications
- From 1926, US dominated car industries - General Motors manufactured vehicles in Uruguay, Brazil and Argentina.
Kemmerer Plans
The government hired an economist, Edwin Kemmerer to review its policy towards Latin America. When a nation asked for investment or credit, Kemmerer and his team would ‘draft plans’ to stabilize the economy which would need to be agreed prior to securing funds. Kemmerer’s plans would usually advise that a central bank was set and put US financiers in touch with local enterprises.
Task Two
ATL: Thinking skills
Consider the chart below. In pairs discuss the benefits and potential issues with increasing US economic interests in Latin America.
3. When and why did the US military intervene in Latin America during and after the First World War?
Task One
ATL: Thinking skills
Review the material in the last unit on US expansionist policies with a focus on its activities in Latin America and then read through the charts below that offer an overview of events during and after the First World War.
In small groups discuss the ways in which ‘dollar diplomacy’ had led to ‘bullet diplomacy’ in Latin America in this period.
A shift in policy
As you have seen, nations in Latin America had become increasingly dependent on the US. However, anti-US sentiment had grown across the region as a result. The US had been criticized by Mexico, El Salvador and Argentina during the Triennial Conference of western hemisphere in Havana Cuba in 1928. Under President Hoover there was a shift in US policy towards Latin America. The Clark Memorandum 1928 repudiated the Roosevelt Corollary and stated that the Monroe Doctrine could not be used to justify US intervention in the western hemisphere. Hoover toured ten nations in Latin America as a show of goodwill. President Franklin outlined the 'Good Neighbor' policy in 1933 – with the aim of withdrawing all US forces from Latin American nations.
4. How did relations with Canada develop during and after the war?
Task One
ATL: Research and thinking skills
In small groups read through the bullet points below. Investigate the effect of the First World War on US-Canadian relations. Consider the extent to which there was increased: diplomatic, economic and cultural links between the two nations.
- Canada sent its own delegation to the Versailles peace conference, albeit on condition that it would sign the treaty under the British empire.
- Then, in the 1920s Canada took control of its own foreign policy and military affairs.
- Vincent Massey was appointed Canada’s first ambassador to the US. Canada was involved in the League of Nations and the World Court – which the US was not. President Warren Harding was first US president to visit Canada in 1923.
- US and Canadian armed forces drafted military scenarios against one another. Defence Scheme No 1 was a plan for Canadian forces to hold off an US invasion until British troops could be deployed.
- After the war US trade links with Canada increased.
- US investment destroyed domestic Canadian car industry.
- BUT diplomatic and economic relations with the US were good until 1930 when the Smoot-Hawley Tariff Act was implemented. This raised import tariffs and Canada strongly protested and responded with taxes on US goods. US-Canadian trade plummeted by 75%.
5. What are historians' perspectives on the significance of the war for the United States’ hemispheric status?
You have seen that the US exercised its economic and military power in the region in the post-war period. Its navy was expanded and due to increased trade, communications and other technology it made a policy of ‘isolationism’ or even strict ‘dollar diplomacy’ less likely to be pursued.
Task One
ATL: Thinking and self-management skills
In pairs read through the speech from Warren Harding below and identify what it reveals about his support for a policy of isolationism.
Warren Harding, in a speech during the US presidential election campaign. 1920.
America’s present need is not heroics but normalcy; not revolution but restoration; not internationality but nationality. It’s one thing to battle successfully against world domination by a military autocracy, but it is quite another thing to try to revise human nature. My best judgement of America’s needs is to steady down, to get squarely on our feet, to make sure of the right path.
Task Two
ATL: Thinking skills
In pairs read through the viewpoints below and discuss which perspectives you think are the most convincing (NB Historian George C Herring’s perspective is nuanced – see chart).
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