Dollar & Missionary Diplomacy

Dollar Diplomacy

• President Taft was using the U.S. govt. to guarantee loans made to foreign countries by U.S. businessmen and promote stability in foreign markets such as Latin America, the Caribbean, and China.

Missionary DiplomacyPresident Wilson stated that the U.S. could deny recognition of any Latin

American govt. it felt was oppressive, undemocratic, or hostile to U.S. interests (missionary diplomacy).

1914 officers of Mexican strongman, General Victoriano Huerta arrested a group of American sailors in Tampico.– Wilson viewing the Huerta govt. as immoral sent the Marines in to occupy

Veracruz.– Argentina, Brazil, and Chile stepped in and mediated before there was war.– As this was going on Huerta’s govt. was toppled by a nationalist named Carranza. – The new President was recognized by Wilson and the U.S. Marines withdrawn.

It was Carranza that invited American engineers to operate the mines in

northern Mexico, but they were shot before ever reaching the mines by other troops loyal to Pancho Villa.

Villa’s troops also raided Columbus, NM killing 17 Americans.

Wilson responded by sending John “Blackjack” Pershing with 15,000 to take Villa.

• These troops clashed with the Mexican Army in June 1916.

• The whole situation didn’t end until 1917 when the U.S. was going to enter WWI.

America Stays Neutral

Originally Americans didn’t want to enter the war, but based on your ethnic heritage, sided with either the Central or Allied powers.

As the war continued, we sided with the Allies more and more because

1. we were making money off of them by selling supplies to them

2. Germany became more and more aggressive against neutral targets.

Closer To War

• We were angered by 1917 at the Central Powers (Germany) because of their U-boat attacks against our freighters.

• response to the Royal Navy’s blockade of German ports – American ships wouldn’t challenge the blockade and that

included ships carrying food to Germany.• The U-boats were sent to blockade British ports and any

Allied ship found in British waters would be sunk-sometimes without warning.

7 May 1915 – Lusitania (ocean liner)was torpedoed by U – 20 off the Irish Coast

• Turned Am. Public opinion heavily against Germany

After two American protests, the Germans agreed to stop attacking passenger liners, in March, 1916 when they torpedoed the French liner Sussex. (Sussex Pledge)– Germans agreed, but the U.S. had to get the British to lift their

blockade against food and Fertilizer.

31 January 1917 the Kaiser announced the all ships in Allied waters would be attacked on sight.(Unrestricted Submarine Warfare)

Early 1917, the German foreign minister cabled the German

ambassador in Mexico to propose an alliance between Mexico and Germany. (Zimmerman Note)

• This was intercepted by British agents and was sent over an American transatlantic cable.

Finally 36 people died when 4 unarmed American freighters were sunk by German U-boats.