WORLD HISTORY

Detailed explanation-1: -Other Central Powers (significantly, Austria-Hungary) signed different treaties with the Allies. The Treaty of Versailles is one of the most controversial armistice treaties in history. The treaty’s so-called “war guilt” clause forced Germany and other Central Powers to take all the blame for World War I.

Detailed explanation-2: -Intense negotiation resulted in the Treaty of Versailles’ “war guilt clause, ” which identified Germany as the sole responsible party for the war and forced it to pay reparations. Germany had suspended the gold standard and financed the war by borrowing.

Detailed explanation-3: -Over the next four years, U.S. banks continued to lend Germany enough money to enable it to meet its reparation payments to countries such as France and the United Kingdom. These countries, in turn, used their reparation payments from Germany to service their war debts to the United States.

Detailed explanation-4: -The Treaty of Versailles (signed in 1919) and the 1921 London Schedule of Payments required Germany to pay 132 billion gold marks (US$33 billion [all values are contemporary, unless otherwise stated]) in reparations to cover civilian damage caused during the war.

Detailed explanation-5: -Most importantly, Article 231 of the treaty, better known as the “war guilt clause, ” forced Germany to accept full responsibility for starting World War I and pay enormous reparations for Allied war losses.