Vichy France was established on 10 July 1940 to govern the unoccupied part of France and its colonies. It was led by Philippe Pétain, the aging war hero of the First World War. Petain's representatives signed a harsh Armistice on 22 June 1940 whereby Germany kept most of the French army in camps in Germany, and France had to pay out large sums in gold and food supplies. Germany occupied three-fifths of France's territory, leaving the rest in the southeast to the new Vichy government. However, in practice, most local government was handled by the traditional French officialdom. In November 1942 all of Vichy France was finally occupied by German forces. Vichy continued in existence but it was closely supervised by the Germans.