The Peace with Honour (German: Frieden mit Ehre) is the name of the peace treaty between the Central Powers and the Entente that officially ended the Weltkrieg in 1921.
The Armistice Years
Although general hostilities in the Weltkrieg technically ended following the 1919 ceasefire, it continued through various proxy conflicts, such as the Irish Civil War. By 1921, the major players of both the Central Powers and the Entente were unable or otherwise unwilling to mount major campaigns against their adversaries. The overall situation was that of a complete stalemate.
In the Middle East, the Ottoman Empire was in shambles and ill-equipped to respond to the revolting Arab population or cross the Suez Canal to strike the British forces entrenched there. In Europe, although France was no longer a concern, the German Empire was unable to mount any form of attack against Britain. The British were unable to quell the Irish rebellion and were in no condition to return to active warfare. The Weltkrieg had critically strained the economy and population of every country involved, and proved the internal weaknesses of both Austria-Hungary and the Ottoman Empire. All of Germany's overseas colonies, with the exception of those in East Africa, were occupied but it did not matter. It was obvious to everybody that the time had come to negotiate.
Terms of Peace
In November 1921, General Erich Ludendorff presented British Prime Minister David Lloyd George the terms of the peace treaty. Britain would acknowledge German gains from the war, while Germany would respect the remaining imperial possessions of the Entente. The occupied German colonies were to be returned and the Ottoman Empire would gain control over Cyprus.
The treaty was formally signed on November 11th, 1921, declaring the end of the Weltkrieg after more than seven years of a war that had changed the destiny of Europe forever.