Treaty of Versailles: The 'Peace Process' started in Paris. Germany signed the Treaty of Versailles in 1919. Its provisions were as follows:
(1) Regional arrangements implies dissolution of the German empire.
(2) Reduction of troops and armaments of Germany
(3) Distribution of the gains of war that includes assigning the German colonies to Allied Powers. restoration of Alsace and Lorraine to France, demilitarization of Rhine Valley.
(4) War Compensation (Reparations) of 6.5 billion pounds was imposed on Germany as it was found responsible for the war.
(5) Germany was compelled to sign the Treaty of Versailles, giving rise to bitterness among the German people and shattering of the German economy.
(6) League of Nations: At the initiative taken by the American President Woodrow Wilson, it was decided to establish the League of Nations.
(B) Long term effects: It is said that the seeds of the Second World War were sown by the peace process after the First World War.
→ The vanquished nations were humiliated. This created the urge for revenge.
→ Soviet Russia was humiliated by denying it admission in the League of Nations and America did not join the League of Nations. Thereby the League of Nations was rendered ineffective.