WORLD HISTORY

Detailed explanation-1: -The treaty forced Germany to disarm, to make territorial concessions, and to pay reparations to the Allied powers in the staggering amount of $5 billion.

Detailed explanation-2: -The treaty required demilitarization of the Rhineland, the loss of 13% of Germany’s prewar territories, and extensive reparation payments by Germany. The treaty contained a “war guilt clause.” This clause held Germany completely responsible for starting World War I.

Detailed explanation-3: -Germany was expected to pay over 6 billion pounds in war reparations. Germany lost its colonies.

Detailed explanation-4: -But reparations did the greatest economic damage to Germany. Germany had to pay for all the damage of the war – a sum eventually set at £6, 600 million – in instalments, until 1984. This ruined Germany’s economy, damaged by the war, and led to the hyperinflation of 1923.

Detailed explanation-5: -The war guilt clause of the treaty deemed Germany the aggressor in the war and consequently made Germany responsible for making reparations to the Allied nations in payment for the losses and damage they had sustained in the war.