The peace treaty at Versailles with the Allies was considered as harsh and humiliating because of the following reasons: • Germany lost its overseas colonies, 1/10th of its population, 13% of its territories, 75% of its iron and 26% of its coal to France, Poland, Denmark and Lithuania. • The Allied Powers demilitarized Germany to weaken its power. • The War Guilt Clause held Germany responsible for the war and damages the Allied countries suffered and strained them to pay £6 billion compensation. • The armies of Allied Powers occupied the resource-rich Rhineland for most of the 1920s.