<P> The treaty stated that "Germany and Austria - Hungary intend to determine the future fate of these territories in agreement with their populations ." Most of these territories were in effect ceded to Germany, which intended to have them become economic and political dependencies . The many ethnic German residents (volksdeutsch) would be the ruling elite . New monarchies were created in Lithuania and the United Baltic Duchy (which comprised the modern countries of Latvia and Estonia). The German aristocrats Wilhelm Karl, Duke of Urach (in Lithuania), and Adolf Friedrich, Duke of Mecklenburg - Schwerin (in the United Baltic Duchy), were appointed as rulers . </P> <P> This plan was detailed by German Colonel General Erich Ludendorff, who wrote, "German prestige demands that we should hold a strong protecting hand, not only over German citizens, but over all Germans ." </P> <P> The occupation of Western Russia ultimately proved a costly blunder for Berlin as over one million German troops lay sprawled out from Poland nearly to the Caspian Sea, all idle and depriving Germany of badly needed manpower in France . The hopes of utilizing Ukraine's grain and coal proved abortive and in addition, the local population became increasingly upset at the occupying army . Revolts and guerrilla warfare began breaking out all over the occupied zone, many of them inspired by Bolshevik agents . German troops had to intervene in Finland to put down an attempted Bolshevik coup, and Ludendorff became increasingly paranoid about his troops being affected by propaganda emanating from Moscow; this was one of the reasons he was reluctant to transfer divisions to the Western Front . The attempt at establishing an independent Ukrainian state under German guidance was unsuccessful as well . Despite all this, Ludendorff completely ruled out the idea of marching on Moscow and Petrograd to remove the Bolshevik government from power . </P> <P> Germany transferred hundreds of thousands of veteran troops to the Western Front for the 1918 Spring Offensive, which shocked the Allied Powers badly, but ultimately failed . Some Germans later blamed the occupation for significantly weakening the Spring Offensive . </P>

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