First MacDonald Ministry - Foreign Policy

Foreign Policy

Many historians have argued that the first Labour Governments’ most notable achievements were in foreign affairs, of which Ramsay MacDonald had devoted much time and effort, having taken the posts of both Prime Minister and Foreign Secretary. Germany had failed to maintain reparation payments in the years following the end of the Great War, and France in response occupied Germany’s industrial heartland, the Ruhr. The Dawes conference was subsequently held to figure out a solution to the crisis, and in August 1924 it concluded that Germany had to achieve economic stability before paying out any reparations. Although France refused to adopt the Dawes Plan, MacDonald spent most of his time as Foreign Secretary trying to win over the French. Macdonald first held talks with both the Belgians and French at Chequers and then hosted an Inter-Allied conference in London in July 1924.

Through sharp negotiating skills and powers of persuasion, Macdonald was able to successfully make the Prime Minister of France Édouard Herriot agree to all of the proposals in the Dawes plan, apart from an immediate withdrawal from the Ruhr. That August, fresh agreements on peace and reparations were signed in London between Germany and the Allies. Macdonald’s success in helping to resolve international disagreements at this time was arguably one the first Labour Government's most significant accomplishments.