The treaty deprived Germany of 25,000 square miles (65,000 km2) of territory and 7 million people. He also demanded that Germany abandon the achievements of the Treaty of Brest-Litovsk and grant independence to the established protectorates.  In Western Europe, Germany had to recognize Belgian sovereignty over Moresnet and cede control of the Eupen-Malmedy region. Within six months of the transfer, Belgium was to hold a referendum on whether the citizens of the region wanted to remain under Belgian sovereignty or return to German control, communicate the results to the League of Nations and shorten the league`s decision. [No. 8] To compensate for the destruction of the French coal mines, Germany had to cede the production of the Saar coal mines to France for 15 years and control of the Saar to the League of Nations; then a referendum would be held to decide on sovereignty. [n. 9] The treaty returned the provinces of Alsace-Lorraine to France by abolishing the Treaties of Versailles and Frankfurt of 1871, as they related to this issue. [No. 10] France could claim that the provinces of Alsace-Lorraine actually belonged to France and not to Germany by disclosing a letter from the King of Prussia to Empress Eugenie provided by Eugenie, in which William I wrote that the territories of Alsace-Lorraine were requested by Germany solely for the purpose of national defence and not for the expansion of German territory.  The sovereignty of Schleswig-Holstein was to be clarified by a referendum, which was to take place at a later date (see Schleswig Referendums).  Although there was a real desire for peace after the catastrophic war, the treaty did not achieve the desired effects. Angry at what they saw as a harsh “diktat” (a dictated peace), right-wing German politicians used the treaty as a nationalist rallying point.
Dizzying payments of reparations reduced the country`s industrial production, and other forces led Germany to hyperinflation in the 1920s, which contributed to the economic instability of the Great Depression. French historian Raymond Cartier notes that millions of Germans from the Sudetenland and PoznaÅ„ in West Prussia were placed under foreign rule in a hostile environment where harassment and rights violations by the authorities are documented. [ix] Cartier claims that out of 1,058,000 Germans in PoznaÅ„-West Prussia in 1921, 758,867 fled their country of origin in five years due to Polish harassment. [ix] These intensifying ethnic conflicts led to public demands for the resettlement of the territory annexed in 1938 and became a pretext for Hitler`s annexations of Czechoslovakia and parts of Poland. [ix] When the treaty was drafted, the British wanted Germany to abolish conscription but be allowed to maintain a volunteer army. .