Consequences of the First World War on Austria-Hungary: Austria-Hungary was forced to sign a separate treaty (of St. Germain) with the Allies by which she had to accept the following conditions: (i) Austria-Hungary was broken up and two separate kingdoms of Austria and Hungary were set-up. (ii) Austria had to cede territories to Czechoslovakia, Yugoslavia and Poland and was forced to accept their independence. (iii) Italy also gained certain territories (such as Tyrol) from Austria. (iv) Austrian army was reduced to 30,000. (v) Austria was also forced to pay a huge-war indemnity.