From the first the American delegates and experts were in favor of fixing definitely the amount that Germany was to pay in the way of reparations and settling this question once for all. They hoped to agree upon a sum which it was within Germany's power to pay. But Clemenceau and Lloyd George had made such extravagant promises to their people that they were afraid to announce at this time a sum which would necessarily be much less than the people expected. They, therefore, insisted that the question should be left open to be determined later by a Reparations Commission. They declared that any other course would mean the immediate overthrow of their governments and the reorganization of the British and French delegations. President Wilson did not care to put himself in the position of appearing to precipitate a political crisis in either country, so he finally gave way on this point also. These concessions proved to be the most serious mistakes that he made at Paris, for they did more than anything else to undermine the faith of liberals everywhere in him.
The Italian delegation advanced a claim to Fiume which was inconsistent both with the Treaty of London and the Fourteen Points. When disagreement over this question had been delaying for weeks the settlement of other matters, President Wilson finally made a public statement of his position which was virtually an appeal to the Italian people over the heads of their delegation. The entire delegation withdrew from the Conference and went home, but Premier Orlando received an almost unanimous vote of confidence from his parliament, and he was supported by an overwhelming tide of public sentiment throughout Italy. This was the first indication of Wilson's loss of prestige with the peoples of Europe.
As already stated, the Japanese had insisted on the insertion in the Covenant of the League of the principle of racial equality. It is very doubtful whether they ever expected to succeed in this. The probability is that they advanced this principle in order to compel concessions on other points. Japan's main demand was that the German leases and concessions in the Chinese province of Shantung should be definitely confirmed to her by the treaty. Two weeks after the outbreak of the World War, Japan had addressed an ultimatum to Germany to the effect that she immediately withdraw all German vessels from Chinese and Japanese waters and deliver not later than September 15 "to the Imperial Japanese authorities without condition or compensation the entire leased territory of Kiao-chau with a view to the eventual restoration of the same to China." In a statement issued to the press Count Okuma said:
"As Premier of Japan, I have stated and I now again state to the people of America and all the world that Japan has no ulterior motive or desire to secure more territory, no thought of depriving China or any other peoples of anything which they now possess."
The Germans had spent about $100,000,000 in improving Tsing-tau, the principal city of Kiao-chau, and they had no intention of surrendering. After a siege of two months the city was captured by the Japanese army and navy, assisted by a small force of British troops. This was the first act in the drama. On January 8, 1915, Japan suddenly presented to the Chinese government the now famous Twenty-one Demands, deliberately misrepresenting to the United States and other powers the nature of these demands. Among other things, Japan demanded not only that China should assent to any agreement in regard to Shantung that Japan and Germany might reach at the conclusion of the war, but that she should also grant to her greater rights and concessions in Shantung than Germany had enjoyed. China was finally forced to agree to these demands.
Japan's next step was to acquire from the Allies the assurance that they would support her claims to Shantung and to the islands in the Pacific north of the equator on the conclusion of the war. This she did in secret agreements signed in February and March, 1917, with England, France, Italy, and Russia. England agreed to support Japan's claim on condition that Japan would support her claims to the Pacific islands south of the equator. France signed on condition that Japan would use her influence on China to break relations with Germany and place at the disposal of the Allies the German ships interned in Chinese ports. The Allies were evidently uneasy about Japan, and were willing to do anything that was necessary to satisfy her. This uncertainty about Japan may also be the explanation of the Lansing-Ishii agreement signed November 2, 1917, in which the United States recognized the "special interests" of Japan in China.
The secret treaties of the Allies relating to the Japanese claims were not revealed until the disposition of the German islands in the Pacific was under discussion at the Peace Conference. When informed by Baron Makino that the islands north of the equator had been pledged to Japan by agreements signed two years before, President Wilson inquired whether there were other secret agreements, and was informed that the German rights in Shantung had also been promised to Japan. As the other powers were pledged to support Japan's claims, President Wilson found himself in a very embarrassing situation, especially as he had also to oppose Japan's demand that a clause recognizing racial equality be inserted in the Covenant of the League. This was a moral claim that Japan urged with great strategic effect. In pushing her claims to Shantung she ignored all moral considerations and relied entirely upon her legal status, secured (1) by the secret treaties with the Allies, (2) by the treaty of 1915 with China, and (3) by right of conquest. When charged with having coerced China into signing the treaty of 1915, Japan replied with truth that most of the important treaties with China had been extorted by force. Japan declared, however, that she had no intention of holding Shantung permanently, but that she would restore the province in full sovereignty to China, retaining only the economic privileges transferred from Germany. In view of this oral promise, President Wilson finally acquiesced in the recognition of Japan's legal status in Shantung.
On May 7 the completed treaty was presented to the German delegates who had been summoned to Versailles to receive it. When the text was made public in Berlin there was an indignant outcry against the alleged injustice of certain provisions which were held to be inconsistent with the pledges given by President Wilson in the pre-Armistice negotiations, and the Germans made repeated efforts to draw the Allies into a general discussion of principles. They were, however, finally given to understand that they must accept or reject the treaty as it stood, and on June 28 it was signed in the Hall of Mirrors at Versailles—the same hall in which William I had been crowned Emperor of Germany forty-eight years before.
The next day President Wilson sailed for the United States, and on July 10 personally presented the treaty to the Senate with an earnest appeal for prompt ratification. The Committee on Foreign Relations, to which the treaty was referred, proceeded with great deliberation, and on July 31 began a series of public hearings which lasted until September 12. The Committee called before it Secretary Lansing and several of the technical advisors to the American delegation, including B. M. Baruch, economic adviser, Norman H. Davis, financial adviser, and David Hunter Miller, legal adviser. The Committee also called before it a number of American citizens who had had no official connection with the negotiations but who wished to speak in behalf of foreign groups, including Thomas F. Millard for China, Joseph W. Folk for Egypt, Dudley Field Malone for India, and a large delegation of Americans of Irish descent, who opposed the League of Nations on the ground that it would stand in the way of Ireland's aspiration for independence. The rival claims of Jugo-Slavs and Italians to Fiume, the demand of Albania for self-determination, the claims of Greece to Thrace, and arguments for and against the separation of Austria and Hungary were all presented at great length to the Committee. On August 19 the President received the Committee at the White House, and after submitting a written statement on certain features of the Covenant, he was questioned by members of the Committee and a general discussion followed.
Meanwhile, the treaty was being openly debated in the Senate. The President had been an advocate of publicity in diplomacy as well as in other things, and the Senate now undertook to use his own weapon against him by a public attack on the treaty. Although the opposition to the treaty was started in the Senate by Lodge, Borah, Johnson, Sherman, Reed, and Poindexter, it was not confined to that body. Throughout the country there were persons of liberal views who favored the League of Nations but objected to the severe terms imposed on Germany, and charged the President with having proved false to the principles of the Fourteen Points. There were others who did not object to a severe peace, but who were bound fast by the tradition of isolation and thought membership in the League of Nations would involve the sacrifice of national sovereignty. The main object of attack was Article X, which guaranteed the territorial integrity and political independence of all the members of the League. President Wilson stated to the Senate Committee that he regarded Article X as "the very backbone of the whole Covenant," and that "without it the League would be hardly more than an influential debating society." The opponents of the League declared that this article would embroil the United States in the internal affairs of Europe, and that it deprived Congress of its constitutional right to declare war.