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The Treaty of Versailles was very unpopular in Germany and was viewed as extremely harsh. The German Army was limited to 100,000 soldiers, and the navy was limited to 15,000 sailors. As financial compensation for the war, the Allies also demanded large amounts of money known as ‘reparations’. This land made up 48% of Germany’s iron production and a large proportion of its coal productions limiting its economic power. Germany lost 13% of its land and 12% of its population to the Allies. Under clause 231, the ‘War Guilt Clause’, Germany had to accept complete responsibility for the war. However, France, who had suffered considerably in the war, was determined to make sure that Germany would not be able to challenge them again. Germany was not invited to contribute to these discussions.ġ4-point plan, set out by President Woodrow Wilson of the USA in January 1918, would form the basis of the peace treaty. The discussions about the treaty between Britain, France and the USA began in January 1919. This peace treaty became known as The Treaty of Versailles. Was agreed on 11 November 1918, but the formal peace treaty was not agreed until the following year.