The Paris Peace Conference

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The Paris Peace Conference The Treaty of
Versailles
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The Paris Peace Conference

• Treaty of Versailles (1919) was the peace
  treaty which officially ended World War I between
  the Allied and Associated Powers and the German
  Empire. After six months of negotiations, which
  took place at the Paris Peace Conference, the
  treaty was signed as a follow-up to the armistice
  signed in November 1918 (which had put an end to
  the actual fighting). Although there were many
  provisions in the treaty, one of the more
  important and recognized ones required that
  Germany accept full responsibility for causing
  the war and, under the terms of articles 231-247,
  make reparations to certain countries that had
  made up the Allies.

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The Key Players

• The "Big Three" that negotiated the treaty
  consisted of Prime Minister David Lloyd George of
  the UK, President Georges Clemenceau of France
  and President Woodrow Wilson of the USA. The
  Prime Minister of Italy, Vittorio Orlando, also
  played a minor part in the discussions. Germany
  was not invited to France to discuss the treaty.
  At Versailles, it was difficult to decide on a
  common position because their aims conflicted
  with one another. The result was said to be a
  compromise that nobody liked.

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French Aims

• France had suffered very heavy casualties
  during the war (some 1.24 million military and
  40,000 civilians dead), and much of the war had
  been fought on French soil. France wanted to be
  given control of many of Germany's factories. In
  wanting this, Clemenceau was representing the
  interests and opinions of the French public.
  Territorily, France felt that Germany should be
  punished. Obviously, he demanded the return of
  Alsace-Lorraine to France, but also the
  demilitarisation of the Rhineland to act as a
  buffer zone against future attacks. Furthermore,
  Germanys colonies should be taken from her and
  distributed between the victors.

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• Clemenceau's intentions were therefore simple
  punitive reparations and Germanys military to be
  not only weakened for the time being, but
  permanently weakened so as never to be able to
  invade France again. Clemenceau also wanted to
  symbolically destroy the old, militaristic
  Germany.
• He also wanted to protect secret treaties and
  impose naval blockades around Germany, so that
  France could control trade imported to and
  exported from the defeated country.
• Clemenceau was the most radical member of the Big
  Four, and received the nickname The Tiger".

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Belgian Aims

• Both France and Belgium argued that claims
  for direct damage should receive priority in any
  distribution of reparations. Belgium had been
  picked clean. In the heavily industrialized north
  of France, the Germans had shipped out what they
  wanted for their own use and destroyed much of
  the rest. Even as German forces were retreating
  in 1918, they found time to blow up France's most
  important coal mines.

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British Aims

• It is often suggested that Lloyd-George
  represented the middle ground between the
  idealistic Wilson and the vengeful Clemenceau.
  The British public wanted to punish Germany in a
  similar fashion to the French for her apparent
  sole responsibility for the outbreak of the war,
  and had been promised such a treaty in the 1918
  election that Lloyd George had won. There was
  also pressure from the Conservatives (who were
  part of the coalition government) demanding that
  Germany be punished severely in order to prevent
  such a war in the future as well as preserving
  Britains empire. Lloyd-George did manage to
  increase the overall reparations payment and
  Britains share by demanding compensation for
  widows, orphans, and men left unable to work
  through injury. Also, he wanted to maintain and
  possibly increase Britains colonies, and both he
  and Clemenceau felt threatened by Wilsons
  self-determination, which they saw as a direct
  threat to their respective empires. Lastly, like
  Clemenceau, he supported upholding secret
  treaties and the idea of a naval blockade.

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• However, Lloyd George was aware of the
  potential trouble that could come from an
  embittered Germany, and he felt that a less harsh
  treaty that did not engender vengence would be
  better at preserving peace in the long run.
  Another factor was that Germany was Britains
  second largest trade partner, and a reduced
  German economy due to reparations would lower
  Britains trade. Moreover, he (and Clemenceau)
  recognised that Americas status as an economic
  superpower would lead to the U.S. becoming a
  military superpower in the future, and
  subsequently, Wilsons idealistic stance could
  not be laughed at if Britain and France were to
  remain on good terms with the USA. This helps to
  understand why the League of Nations, Wilsons
  main idea (along with self-determination), was
  apparently jumped at by Britain and France when
  Wilson arrived at the peace conference.
  Furthermore, Britain wanted to maintain the
  'Balance of Power' - no country within Europe
  being allowed to become a lot more powerful than
  the others. If France's wishes were carried out,
  then not only would Germany be crippled, but
  France would soon become the main superpower, and
  so disrupt the Balance of Power in two ways.

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• Overall, Lloyd-George's aims can be summarised
  as follows 1) To defend British interests by
  preserving Britains naval supremacy that had
  been threatened by Germany in the run up to the
  war, maintaining Britains empire and possibly
  increased colonial expansion 2) To reduce
  Germanys future military power and to obtain
  reparations and lastly, 3) To not create an
  embittered Germany that would seek revenge and
  threaten peace in the long term future.

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USAs Aims

• The United States of America took a more
  peaceful view towards the reparations of Germany.
  They put forward fourteen points, which the
  German public thought that the Treaty would be
  based around.

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• The first five of Wilson's Fourteen Points were
  quite general
• I. The Abolition of Secret Treaties
• Secret treaties were common before the First
  World War, and many blamed them for helping spark
  the conflict.
• II. The Freedom of the Seas
• The freedom of the seas allowed for freedom of
  navigation outside territorial waters at times of
  war and peace, but also allowed for total and
  partial blockades "for the enforcement of
  international covenants." This proposal was
  opposed in particular by the United Kingdom.
• III. Free Trade
• Free trade provided for the removal of economic
  barriers between peaceful nations, also called
  for the introduction of equality in trading
  conditions.
• IV. Disarmament
• Disarmament "to the lowest point consistent with
  domestic safety."
• V. Adjustment of Colonial Claims.
• Wilson called for decolonization and national
  self-determination for formerly colonized
  countries, and for the people of the world to
  give equal weight to the opinions of the
  colonized peoples as to those of the colonial
  powers.

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• Points six through thirteen were more specific,
  dealing with the situation of specific countries
• VI. Russia
• In the aftermath of the October Revolution and
  the context of the ongoing Civil War, Russia was
  to be assured its independent development. This
  also called for a withdrawal from occupied
  Russian territory.
• VII. The restoration of Belgium
• Belgium to be evacuated and restored to prewar
  conditions
• VIII. Alsace-Lorraine
• France had lost Alsace-Lorraine to Germany
  following the 1870-71 Franco-Prussian War it was
  to be returned.
• IX. Italy
• The borders of Italy were to be redrawn on lines
  of nationality. Ignoring the territorial promises
  made under the secret 1915 London Pact, whereby
  Italy was persuaded to enter the war on the
  Allies' side, this became a source of resentment
  in that country.
• X. Austria-Hungary
• Autonomous development of the peoples of
  Austria-Hungary.
• XI. Romania, Serbia, Montenegro, and other Balkan
  states
• The integrity of Romania, Serbia, Montenegro, and
  other Balkan states was to be respected, their
  territories deoccupied, and Serbia was to be
  given access to the Adriatic Sea.
• XII. Ottoman Empire
• Sovereignty for the Turkish portion of the
  Ottoman Empire, autonomous development for other
  nationalities, and free navigation of the
  Dardanelles.
• XIII. The Polish question
• The establishment of an independent Poland with
  access to the sea.

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The 14th Point

• Wilson's final point was perhaps the most
  visionary
• XIV. A general association of nations
• Point 14 called for a multilateral international
  association of nations to enforce the peace,
  foreshadowing the League of Nations (and, after
  the Second World War, the United Nations).
• The treaty had provided for the creation of
  the League of Nations, a major goal of U.S.
  President Woodrow Wilson. The League of Nations
  was intended to arbitrate international disputes
  and thereby avoid future wars. Only three of
  Wilson's Fourteen Points were realized, since
  Wilson was compelled to compromise with
  Clemenceau, Lloyd George and Orlando on some
  points in exchange for retaining approval of the
  "fourteenth point," the League of Nations.

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Terms of the Treaty

• Terms imposed by the treaty on Germany included
  losing a certain amount of its own territory to a
  number of surrounding countries, being stripped
  of all of its overseas and African colonies, and
  its ability to make war again was limited by
  restrictions on the size of its military.
• Commercial transport vessels, including all
  oceanliners, locomotives, commercial
  motorvehicles, factory equipment and anything
  else that was not "nailed down" was confiscated.
• Because Germany was not allowed to take part in
  the negotiations, the German government issued a
  protest to what it considered to be unfair
  demands, and soon afterwards withdrew from the
  proceedings. Later a new German foreign minister,
  Hermann Müller, agreed to sign it in June, 1919.

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Lost European Territories

• Besides the loss of the German colonial empire
  the territories Germany lost were
• Alsace-Lorraine, were restored to French
  sovereignty without a plebiscite as from the date
  of the Armistice of November 11, 1918.
• Northern Schleswig, after the Schleswig
  Plebiscite, to Denmark
• The Prussian provinces Posen and West Prussia,
  which Prussia had annexed in Partitions of Poland
  (1772-1795), were returned to the reborn Poland.
• West Prussia was given to Poland to provide free
  access to the sea, along with a sizeable German
  minority, creating the Polish corridor.
• Upper Silesia to Czechoslovakia
• The east part of Upper Silesia, to Poland
  although after plebiscite 60 voted for Germany
• The area of German cities Eupen and Malmedy to
  Belgium
• The northern part of East Prussia under control
  of France, later transferred to Lithuania without
  plebiscite.
• The province of Saarland to be under the control
  of the League of Nations for 15 years, after that
  a plebiscite between France and Germany, to
  decide to which country it would belong. During
  this time the coal went to France.
• The port of Danzig was made the Free City of
  Danzig, under the League of Nations.
• Germany acknowledges and will respect strictly
  the independence of Austria.

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Major Losses
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The War Guilt Clause

• Article 231 of the Treaty (the 'war guilt'
  clause) held Germany solely responsible for all
  'loss and damage' suffered by the Allies during
  the war and provided the basis for reparations.
  The total sum due was decided by an Inter-Allied
  Reparations Commission and was set at 6.6
  Billion (33 000 000 000). This would have taken
  Germany till 1984 to pay!

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Other Key Terms

• Germany has to cede the coal mines in the
  Saar-area to France.
• Germany has to cede all colonies Togo en
  Cameroun, the territories in East- and South-West
  Africa, islands in the Pacific and possessions in
  China.
• All German properties in foreign countries are
  confiscated.
• Germany has to cede all war material to the
  allies.
• German compulsory military service is abolished,
  as well as the General Staff.
• Germany is not allowed to have tanks, airplanes,
  submarines, large warships and poison gas.
• The total size of the Germany army is not to
  exceed 100 000 men.
• The German navy has a maximum of 15.000 men.
• Germany is allowed a total of 4 000 officers.
• Germany is not to take part in the League of
  Nations.
• Germany has to cede to the allies all seagoing
  ships. Furthermore one fourth of the fishing
  fleet and two fifths of the inland navigation
  fleet has to be ceded.
• Germany has to cede large amounts of machinery
  and building materials, trains and trucks.
• Germany has to deliver certain amounts of coal,
  chemicals, dye and fuel for many years.
• All German sub-ocean telegraph cables are
  confiscated.

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Ratification and Humiliation

• The treaty was ratified by the League of Nations
  in January, 1920. In Germany, the treaty caused
  shock and humiliation that contributed to the
  collapse of the Weimar Republic in 1933,
  particularly because many Germans did not believe
  that they should accept the sole responsibility
  of Germany and its allies for starting the war.

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Reaction to the Treaty

• The French felt they had been slighted, and
  subsequently voted out Clemenceau at the next
  election. Britain as a whole was at first
  content, but then felt that the Treaty was too
  harsh, and of particular concern were Germanys
  eastern frontiers, which were seen as a potential
  trouble spot for the future. For the USA, it was
  seen as Europes problem, and that overall, the
  Treaty was too harsh.
• Territorial adjustments were made with the aim of
  grouping together ethnic minorities in their own
  states, free from the domination of once powerful
  empires, specifically the Austro-Hungarian Empire
  and the Ottoman Empire. Secret treaties were also
  to be discouraged, and Britain and France greeted
  a call for the reduction in armaments by all
  nations with disapproval. This was supposed to
  reduce, indirectly, the ability of navies to
  create blockades.

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Invasion of the Ruhr - 1923

• The amount of these payments proved to be too
  great for the flagging German economy and in 1923
  Germany defaulted and French and Belgian troops
  occupied the Ruhr in response. This occupation of
  the center of the German coal and steel
  industries both outraged Germany and put further
  strain on its economy, being heavily responsible
  for the hyperinflation that year.

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The Dawes Plan - 1924
To simultaneously defuse this situation and
increase the chances of Germany resuming
reparation payments, the Allied Reparations
Committee asked Charles G. Dawes to find a
solution to which all parties would agree. The
Dawes committee consisted of ten representatives,
two each from Belgium, France, Britain, Italy,
and the United States. It was entrusted with
finding a solution for the collection of the
German reparations debt following World War I,
set at almost 20 billion marks.

• The main points of The Dawes Plan were
• The Ruhr area was to be evacuated by Allied
  occupation troops.
• Reparation payments would begin at 1 billion
  marks for the first year and should rise over a
  period of four years to 2.5 billion marks per
  year.
• The German Reichsbank would be reorganized under
  Allied supervision.
• Foreign loans (primarily from the United States)
  would be made available to Germany.
• The plan went into effect in September 1924.

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Results of the Dawes Plan

• The Dawes Plan provided short term economic
  benefits to the German economy. It softened the
  burdens of reparations, stabilized the currency,
  and brought increased foreign investments and
  loans to the German market. However, it made the
  German economy dependent on foreign markets and
  economies, such that problems to come in America
  (e.g. the Great Depression) would directly and
  severely hurt Germany as it would the rest of the
  western world, which was subject to debt
  repayments for loans of American dollars. After
  World War I, this cycle of money from US loans to
  Germany, who made reparations to other European
  nations, who used the money to pay off their
  debts to America, locked the western world's
  economy on that of the US, a situation which
  would prove disastrous.

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Young Plan 1929-1930

• Although German business picked up and reparation
  payments were made promptly, it became obvious
  that Germany could not long continue those huge
  annual payments.
• As a result, the Young Plan was substituted in
  1929. The Young Plan was presented by American
  Owen D. Young. The plan was formally adopted at
  the second Hague Conference in January 1930.
• The Young Planwhich set the total reparations at
  26,350,000,000 to be paid over a period of 58½
  years (1988)was thus adopted by the Allied
  Powers in 1930 to supersede the Dawes Plan.
  Designed to substitute a definite settlement
  under which Germany would know the exact extent
  of German obligations and to reduce the payments
  appreciably, the Young Plan divided the annual
  payment, set at about 473 million, into two
  elementsan unconditional part (one third of the
  sum) and a postponable part (the remainder).

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The Hoover Moratorium 1931-32

• Between agreement and adoption of the Young Plan
  came the Wall Street Crash of 1929, of which the
  main consequences were twofold. The American
  Banking system had to recall money from Europe
  and cancel the credits that made possible the
  Young Plan. Moreover, the downfall of imports and
  exports affected the rest of the world. By 1933,
  almost two-thirds of world trade had vanished. A
  new trade policy was set with the Hawley-Smoot
  custom duty.
• Unemployment soared to 33.7 in 1931 in Germany,
  and 40 in 1932.
• Under such circumstances, US President Herbert
  Hoover issued a public statement that proposed a
  one-year moratorium of the payments. He managed
  to assemble support for the moratorium from 15
  nations, but the adoption of the moratorium did
  little to slow economic decline in Europe.

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Lausanne Conference - 1932

• A final effort was made at the Lausanne
  Conference in 1932 to assist Germany. Here,
  representatives from Great Britain, France,
  Italy, Belgium, Germany and Japan gathered to
  come to an agreement. By that time it was clear
  that the deepening depression had made it
  impossible for Germany to resume its reparations
  payments.
• They agreed
• not to press Germany for immediate payments.
• To reduce indebtedness by nearly 90, reducing
  the German obligation from the original 32.3
  billion to 713 million.
• It was also informally agreed among the delegates
  that these provisions would be ineffective unless
  the US government agreed to cancellation of war
  debts owed by the Allied government. Hoover made
  the obligatory public statement about the lack of
  any connection between reparations and war debts.
  When the moratorium expired, the situation
  returned to the terms of the Young Plan, but the
  system had collapsed. Germany did not resume
  payments and once the National Socialist
  government consolidated power, the debt was
  repudiated. After Germanys defeat in World War
  II, an international conference decided (1953)
  that Germany would pay the remaining debt only
  after the country was reunified. Nonetheless,
  West Germany paid off the principal by 1980 then
  in 1995, after reunification, the new German
  government announced it would resume payments of
  the interest.
• This agreement had been preceded by bitter
  diplomatic struggles, and its acceptance aroused
  nationalist passions and resentment. It also
  weakened, rather than helped the advocates of a
  policy of international understanding.

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In Summary

• The Big Three had known even before they met that
  Germany was to be punished. France wanted
  revenge, Britain wanted a relatively strong,
  economically viable Germany as a counterweight to
  French dominance on Continental Europe, and the
  U.S. wanted the creation of a permanent peace as
  quickly as possible, with financial compensation
  for its military expenditures and the destruction
  of the old empires.
• The result was a compromise that left nobody
  satisfied. Germany was neither crushed nor
  conciliated, which, in retrospect, did not bode
  well for the future of Germany, Europe or the
  world as a whole.
• Implementing reparations also failed to achieve
  its punitive aims insofar as Germany profited
  from the treaty by neither repaying most of its
  foreign loans in the following decade nor
  completing her indemnity payments.

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Recent Perspectives

• The economic problems that the payments brought,
  and German resentment at their imposition, are
  usually cited as one of the more significant
  factors that led to the end of the Weimar
  Republic and the beginning of the dictatorship of
  Adolf Hitler, which eventually led to the
  outbreak of World War II. Some historians, such
  as Margaret MacMillan, have since disagreed with
  this assertion, originally popularised by John
  Maynard Keynes.

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• On first glance, the reparations seem excessive.
  However, according to William R. Keylor in
  "Versailles and International Diplomacy", 'An
  increase in taxation and reduction in consumption
  in the Weimar Republic would have yielded the
  requisite export surplus to generate the foreign
  exchange needed to service the reparation debt.'
• In "American Reparations to Germany 1919-33",
  Stephen Schuker says that 'the Weimar Republic
  ended up paying no net reparations at all,
  employing the proceeds of American commercial
  loans to discharge its reparation liability
  before defaulting on its foreign obligations in
  the early thirties.'

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• More recently, however, a new point of view has
  gained currency (well-articulated by historian
  Gerhard Weinberg in his book A World at Arms)
  that the treaty was in fact quite advantageous to
  Germany and far more generous than she had a
  right to expect. More importantly, according to
  this view, the Bismarckian Reich was maintained
  as a political unit instead of being broken up,
  and Germany largely escaped post-war military
  occupation. (Mistakes that were not repeated
  following the Second World War.)
• In retrospect, a good case can be made that
  Germany was in a superior strategic position in
  1919 than it had been five years earlier. Instead
  of having an economically expanding and
  threatening Russian Empire allied with France on
  her eastern flank, Germany now faced a
  diplomatically isolated Russia that was also
  embroiled in revolution and civil war. To the
  south, the large (though increasingly enfeebled)
  Austro-Hungarian monarchy had been replaced by a
  group of small, weak republics that were to prove
  easy prey for a revitalized Germany two decades
  later. Indeed, the ease with which Germany later
  shook off the treaty's restrictions argues
  strongly against its being the "Carthaginian
  peace" of John Maynard Keynes' formulation.

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