The treaty affected substantial territorial changes. Germany restored back to France Alsace and part of Lorraine which she had taken from her in 1871. Belgium got back Eupen and Malmedy as well as Moresnet, which she got in partial compensation for the destruction of her forests by the Germans.
Germany agreed to give Upper Silesia and the Southern part of East Prussia to Poland if the people concerned were in favour of joining it. The wishes of the people were to be ascertained through a plebiscite. When the plebiscite was actually held the decision was in favour of a complete merger with Germany. However, Poland insisted that she must be given those areas which had Polish majority.
On the insistance of France, the League Council partitioned Silesia, leaving more than half of the area and population to Germany, but industrialized areas were given to Poland. Danzing was taken away from Germany and set up as a Free City under the League of Nations. Poland was given special rights in the city of Danzing.
The Saar Valley was formed into an area under the control of an international commission and the League. France was given the exclusive rights of exploitation of coal mines of the valley.
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After 15 years a plebiscite was to be held to ascertain whether the inhabitants wanted to return to Germany, or to unite with France or to remain under the League. When the plebiscite was actually held, the people of Saar Valley voted for Germany.
Mamel was ceded to the Principal Allies was handed over to Lithuania in 1924. In the north, Germany lost northern Schleswig to Denmark as a result of a plebiscite held in two zones. The Union of Germany and Austria was forbidden without the unanimous consent of the League Council, where France had a permanent seat.
Germany had to renounce all her overseas possessions and colonies to the League. These territories were later distributed among the victorious powers including Great Britain, France, Belgium, Japan, the Union of South Africa, New Zealand and Australia as mandates of the League. Japan got the lease of Kiaochow and the German portion of the island of Samoa, were left to the care of New Zealand.
While Australia was entrusted with the administration of German New Guiana, Togoland and Tanganyika, were placed under the British administration. Certain parts of Tanganyika were left under Belgium and Cameroons were given to France.
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The administrative rights over German South-West Africa was given to the Union of South Africa. In short Germany lost nearly ninety lakh square miles area. The loss was accompanied by a blow to the German pride because the Allies tried to justify their rule over the colonies by asserting that the German treatment of the native population in her colonies had been cruel and arbitrary.