Livia Chan
AP US History – Period 3
March 2, 2011
Chapter 27: The Global Crisis, 1921-1941 (p.720-728)
What was the
point of the
circular loans if
no progress
was being
made? – Maybe
not many
people noticed
or the point
was to make it
seem as if they
were making
progress
Washington Conference of 1921- (p.720) proposed by Charles Hughes (sec. of state) to protect
world peace w/out commitments; primary intention was to maintain balance of naval power:
 Five-Power Pact (1927): limited nations’ naval forces and set specific ratio of arms
 Nine-Power Pact: cont. Open Door Policy in China
 Four-Power Pact: respect and prevent aggression of Pacific terr. b/w U.S., Brit, Jap, and France
Kellogg-Briand Pact- (p.720) 1928 treaty for preventing war as tool for national policy; no
official form of enforcement
Circular Loans- (p.721) U.S. loaned $ to Germany  gave to Eng./France  gave back to U.S.;
no progress was being made
Economic Expansion of Latin Amer.- (p.721) 1924-1929 investments in Latin Amer. doubled
(b/c Amer. corporations built many facilities); claimed investments was to discourage
revolutions but mostly to take advantage of natural resources
Hoover’s diplomatic decisions- (p.721) recognized any govt. in Latin Amer., went against
Roosevelt corollary when didn’t help Latin Amer. countries who couldn’t pay back loans,
refused to cancel WWI debts
New Eur. govts.- (p.722) Italy: Mussolini + Fascist Party = threat of imperial expansion,
Germany: Hitler + Nazis – racial superiority, anti-Semitism, expansion
Manchuria- (p.722-723) Jap. invaded Manchuria b/c Chinese wanted to expand govt. control of
area which even though was owned by them, Jap. was economically in control  U.S.
threatened not to recognize new Jap. terr. but Jap. didn’t care and also attacked Shanghai
FDR’s “Bombshell”- (p.724) changed mind after World Economic Conference and decided not
to stabilize currency to allow Amer. goods to compete in foreign markets; FDR also stopped
circular loans by prohibiting banks from lending $ to nations alrdy in debt
Reciprocal Trade Agreement Act- (p.724) 1934 nations (including U.S.) lowered tariffs by
50% increase Amer. exports by 40%; most agreements only allowed non-competitive goods in
Amer. so imports were still low  other nations weren’t getting enough $ so couldn’t pay back
debts or buy Amer. goods
U.S. and Soviet Union- (p.724) still hostile towards each other after agreement on Russia
protecting Amer. citizens on their land and U.S. recognized govt.  U.S. didn’t get as much
trade done as expected and Russia didn’t get help to stop Jap. expansion as expected
Good Neighbor Policy- (p.725) 1933 at Inter-American Conference, stated that a country had no
right to intervene in another’s affairs; simply changed from U.S. dominating Latin Amer. w/
military power to large U.S. influence in economy  improved relationship b/w U.S. and
neighbors
The Neutrality Sources of Isolationism- (p.725) some saw inability to stop Jap. expansion as failure of
Acts were quite internationalism, others believed businesses had made U.S. participate in WWI to avoid taxes
obviously
during war and protect foreign loans
modified in order
to provide more
assistance to the Neutrality Acts- (p.725) 1935-1937 passed to avoid entering WWII (maintain neutrality)
Allies. As was  1935 – couldn’t sell weapons to any nation involved in war and warned Amer. of risk of
shown in WWI,
the U.S. was more boarding ships headed to warring nations (wouldn’t have excuse of protecting citizens)
inclined on
 1936 – renewed 1935
helping Brit. and
 1937 – cash-and-carry: warring nations could buy nonmilitary goods only from U.S. w/ cash
France b/c of
and carry away w/ own ships
economic
relationship and
o altered in 1939 to include military arms too
perhaps to extend
democracy.
Ethiopia- (p.725) Oct. 1935 Mussolini attacked Ethiopia and left League of Nations b/c faced
opposition from it  formed Axis Powers w/ Germany; increased support of isolationism to
avoid getting involved w/ European instability
“Quarantine” speech- (p.727) Roosevelt’s response to aggressive Jap. actions toward China
(threat to world peace) – proposed cutting diplomatic relations only; didn’t gain much support
Appeasement by Munich Conference- (p.727) Sept.1938 Hitler agreed to only expand as far as western part of
the Allies was an Czechoslovakia in meeting w/ France and Brit.; attempt at appeasement
attempt to prevent
another world
war. With all the Failure of “Appeasement”- (p.727-728) March 1939 Hitler violated Munich agreement by
economic issues expanding into rest of Czechoslovakia; Sept. 3, 1939, WWII began when Hitler attacked Poland
going on, it
wasn’t exactly the(which Brit. and France had promised to help if it was attacked); Aug. 1939 Hitler made
best time for a nonaggression pact w/ Russia
war. (even though
WWI helped end
the Great
Depression b/c March 3, 2011
industrial booms)
Chapter 27: The Global Crisis, 1921-1941 (p.728-736)
Fall of France- (p.730) June 22, 1940 France fell to Italian/German forces; $1 bill. was used to
create defense and Roosevelt was more incline to help Brits b/c only effective Allies army left
(mostly in form of warships/planes); public opinion changed in support of war (not entirely) b/c
Germany win would impact U.S. b/c fall of France + threat to Brit. (were trade partners)
America First Committee- (p.731) group of anti-war supporters of influential people/newspapers
and large part of Republ. Party
Election of 1940- (p.732) Dem: Roosevelt (for 3rd term) + Henry A. Wallace vs. Repub: Wendell
Willkie; similar platforms (partial internationalism through assistance to Allies w/out joining
war); became battle of popularity -> Roosevelt won
Lend-lease- (p.732) initial intention was to keep helping Brit. even though Brit. was bankrupt:
nations could borrow arms as long as they were returned/ paid for after war; “hemispheric
defense” was used to protect Brit. ships from German subs in western Atlantic only
German invasion of Soviet Union- (p.732) 1941 Hitler violated Nazi-Soviet pact  U.S.
extended lend-lease to Russians (would later lead to formal alliance) -> Hitler’s enemies on both
fronts helped by U.S.  subs attacked U.S. ships  naval war
Atlantic Charter- (p,.733) 1941 Churchill and Roosevelt released doc. of war aims if U.S. entered
war  basically showed Roosevelt’s support of war
Tripartite Pact- (p.733) 1940 Japan allied w/ Germany and Italy  planned to attack Dutch East
Indies after French colonies  U.S. trade embargo on Japan (cut major supplies)  became
evident that Japan planned to start war w/ U.S.
Pearl Harbor- (p.733) Dec. 7, 1941 Jap. bombed Hawaii naval base  no preparations so major
loss to U.S.  declaration of war against Jap.  Dec. 11 Axis declare war on U.S.  enter
WWII