In the first chapter, Churchill briefly outlined what has happened after WWI. The Treaties of St Germain and Trianon were the product imposed by the West, reflecting the ideals of the liberal nations which were accepted reluctantly by the unhappy Teutonic race. The break up of Austro-Hungarian Empire and Balkanisation of south-eastern Europe had lost the advantage of trade and affected the common life of the races that used to the Federal structure. The new liberal government, like the Weimar, can not hold the loyalties and confidence of the German people. The failure of liberal government was foretold at the time it was born.
The vanquished Teutonic Power in the great mass of central Europe was disarmed and forced to pay a huge sum of debt imposed by Treaty of Versailles. It is impossible for Germany to pay for the cost of war and therefore have to borrow from Allie countries, mainly from U.S.A. The debt was mounted to 15:1 to its indemnities and quickly led to economy bankruptcy and devaluation of Mark. This earned the sympathy of Britain and create a bedding of common hatred of German people and the success of Hitler.
Churchill, predicted Germany will rise again, agreed with Marshal Foch that Rhine should be fortified by French Army. But this was rejected by Allies. Marshal Foch once said, the signing of peace treaty of Versailles, brings not permanent peace but 20 year of Armistice.