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Regarding the cession of German territory, we must mention the remaining territorial scope of Germany after World War I.
As a country that had already been partitioned after the war, Germany had very limited land left to cede.
Ultimately, among the three countries of Britain-France-Australia, only France was effectively poised to annex German territory.
The United Kingdom and Australasia, not sharing a border with Germany, were destined not to turn any acquired German land into native land.
To prevent France from gaining too much advantage, the United Kingdom and Australasia reached an agreement that Germany's total ceded territory should not exceed 15% of its existing mainland, while priority should be given to military occupation to effectively counter the possibility of German revenge after recovery.
First is the territory Germany needed to cede.