The War is Over

• The question is how should they make peace, which is a delicate process?
• The peacemaking process is framed upon three principles
  • 1. the assumption of German guilt
  • 2. looming threat of Communism across Europe
  • 3. economic aftermath of Europe
• 1. War Guilt
  • The Treaty of Versailles
    • Article 231 of the treaty is the German War Guilt clause
    • War guilt is conflated with the idea that Germans didn't "lose" the war.
  • The Armistice terms for germans implied an admission of defeat
    • withdraw from all territory, except Russia because of the growing fear of communism
    • renounce the treaty of Brest-Litovsk
    • intern the High Seas Fleet to the British
    • withdraw army east of the Rhine River
    • Give large numbers of artillery, machine guns, submarines, locomotives, and railcars.
  • German reaction to peace
    • We know that the Germans also underwent a cynical regime change. The Kaiser abdicates (he is used as a scapegoat) and form a Weimar Republic on November 9, 1918 in order to get better peace terms with Wilson and his 14 points.
    • The military, which is mainly made up Prussian Junkers, seek to shift the blame for loss in the war to the 3rd Republic.
    • The Weimar Republic is a left center coalition headed by the largest political party, the Social Democrats.
    • The Social Democrats are mild Marxists who believe in unions and a welfare state.
    • The principle leader of the left of center party in Germany is Walther Rathenau are Jewish. Both the Republic and the Jews were assigned blame.
• 2. Looming threat of Communism
  • Context of Communism
    • Particularly in Germany was a post-war spectre.
    • The Bolshevik take over in Russia in November 1917 was a victory for Germany and an affront to Western Allies.
    • Lenin also actively supported and funded Communist (Not the Social Democrats) movements across world particularly in war town in E. Europe.
  • Communist Activity around the World
    • In 1918 the German state of Bavaria is taken over by a Communist Revolution for 6 months.
    • In 1919 there is a failed Communist coup in Berlin. The Germans call it Spartakist Putsch
    • In 1919 Hungarians form the Soviet Socialist Republic is formed for 9 months under Bela Kun.
    • The threat of communism in the US leads to the 1st Red Scare
  • German threat to revert to communism is exacerbated by British insistence on maintaining their blockade until the peace treaty is signed. The Germans are starving, which is worsened by the deadliest pandemic since the Black Death. The Spanish Flu from 1918-1919 killed 40-60 million.
  • The issue is to balance the peace terms so that Germany doesn't go Communist because of harsh terms, but isn't strong enough to fight again because of lenient terms.
• 3. Economic Issues
  • Results of the War
    • Before the War, no one in the whole world exported more than Germany and Great Britain. The Rest of Europe also had significant exports. Moreover, the European Inner-Outer Zone exchange collapses.
    • The breakdown of a Euro-world trade network was a result of a prolonged war. Across Europe industrial output was restructured for war production.
    • Total war diverts resources, labor and economics. War is expensive! Europe borrows money from the US to pay for the war. US owes Europe $5 billion.
  • The World Economy
    • By 1919, Europe owes the US $19 Billion in debt to the US. The debt to US compels GBR and France to Adhere to Wilsonian principles.
    • The US is in a good position especially since they have been turned inward previously because of the Civil War, Frontier Railroads, and the Great Depression.
    • The US industry feeds Europe as does the US agriculture (so do Canada and Argentina).
    • The World Markets don't stop consuming because of WW1. European Markets were lost and captured by the US and Japan during the war (and they are not regained).
    • The Europeans resent US for intruding into their affairs but are limited by their debt to the US. The Europeans want to get rid of the US influence through debt repayment.
    • What everyone wants
      • France and Great Britain want reparations, so they want to pay back the US
      • Wilson wants a League of Nations