Lloyd George was unhappy with the French demands for three main reasons: First, he realized Britain's economic well-being depended on economic revival in Europe, which in turn depended on Germany's economy recovering, and the French demand to make the Rhineland independent would weaken Germany industrially. Second, the French demands for reparations and territory were too extreme and would check Germany's economic growth, leaving it a weak barrier against communism and breeding future resentment.

1. More Lessons and Revisions - YouTube Channel / Mr D History
WHY WAS LLOYD GEORGE UNHAPPY WITH THE
FRENCH DEMANDS? (6)
MAIN REASON
‘Lloyd George realised that the future economic well-being of
Britain depended largely upon the economic revival of Europe.
This, in turn, depended upon the revival of the German
economy. He felt that if France’s demand for the Rhineland to
become an independent state materialised, then Germany
would not be wealthy enough to buy British goods on the
same scale as before the war because the Rhineland contained
much of Germany’s industry.’
SECOND REASON
‘Lloyd George thought French demands were extreme.’ ‘The
extremely high reparation figure demanded by the French
would check Germany’s economic growth.’ ‘A weak Germany
would prove to be an inadequate barrier to communism from
the east.’ ‘If the French demand for an excessively harsh treaty
took place, then this would give rise to a sense of intense
grievance. This may lead to Germans in the future trying to
overturn the treaty.’

2. More Lessons and Revisions - YouTube Channel / Mr D History
THIRD REASON (CHOOSE ONLY TWO)
‘Lloyd George did not want to see the defeat and punishment
of Germany leading to French domination in Europe.’
Germany should be able to rebuild its economy.’ ‘The French
demands could mean the Germans would want revenge in the
future.’