Prunesquallor said:
This is a non-starter. France would insist on the return of the territory lost in the Franco-Prussian war.
Agreed. However, the loss of just Alsace-Lorraine wouldnt upset the Germans too much. They were pretty embittered about losing all their colonies, tho, so Germany could be allowed to keep all her mainland territory minus Alsace-Lorraine, and keep Togo, West Africa and East Africa. (Still loses pacific colonies and SW Africa).
As to what this would create? Well probably a much more stable republic in Germany at first, and less bitterness about the war, less opportunities for the extremists to gain power. Germany would find ways as in OTL to pay only a small fraction of the war reparations and be done with that completely ten years later.
The biggest issue that would arise would be the fate of Austria and the Sudentenland. On the principle of self-determination, these territories were legitimately German. In OTL, there was much hope to assimilate these territories after the war as a way to mend the losses elsewhere. We know how that went.
Obviously, this version of the treaty is much closer to the wishes of Wilson. One big impact is that the US WILL join the League of Nations in TTL, making it substantially more effective, rather than a european club.
I'd expect that in this TL, Germany has much more leeway to work towards union with Austria. Though its banned at first, at Locarno, Germany's anchluss is allowed in exchange for guarantees regarding Alsace-Lorraine.
The Sudentenland issue is trickier. Germany's unwillingness to let it go gives most of Europe severe headaches. In 1933, a diplomatic attempt is made to solve the issue through a treaty signed by a moderate german government that lets the region in the Czechs hands in exchange for economic, cultural and social prerogatives and ties for it's residents.
The collapse of the traditional far right-wing partys in the 1934 elections however pushes the Zentrum to the right. The Conservative-Religious minority government that takes power in 1937 denounce the agreement, strenghten the army and impose sanctions on the Czechs. After Germany threatens to withdraw from the League of Nations, a conference is reunited in Munich where the Sudentenlands are transfered to Germany despite the opposition of the league. The league takes a blow, and the Czechs become economic vassals of Germany.
Afterwards, peace is preserved for a long time in central europe. The German behemoth is able to restore its dignity, military and economy peacefully but the price of this peace is that it's influence and power over Europe never stops to climb. By the turn of the century, powerful German demographics, science and industry makes it the uncontested leader of Europe and the main counterweight to both American and Soviet influence in the world.