1939 German Ultimatum To Lithuania - Aftermath

Aftermath

Before the treaty was signed, German soldiers had already entered the port of Klaipėda. Adolf Hitler, on board the cruiser Deutschland, personally toured the city and gave a short speech. The armada sailing to Klaipėda included the cruiser Admiral Graf Spee, the cruisers Nürnberg, Leipzig, and Köln, two destroyer squadrons, three torpedo boat flotillas, and one tender flotilla. At the time the Lithuanian navy had only one warship, the Prezidentas Smetona, a 580-ton converted minesweeper. While the Germans were celebrating the return of the city, European politicians expressed fears that the Free City of Danzig would be Hitler's next target.

President Antanas Smetona's unconditional acceptance of a second ultimatum in the space of a little over one year became a major source of dissatisfaction with his authoritarian rule. The German ultimatum triggered a political crisis: the passive cabinet of Vladas Mironas was replaced by a cabinet headed by General Jonas Černius. For the first time since the 1926 coup d'état, the government included members of the opposition: Leonas Bistras, of the Lithuanian Christian Democrats, was named Minister of Education and Jurgis Krikščiūnas, of the Lithuanian Peasant Popular Union, was named Minister of Agriculture. Because other parties were banned, Bistras and Krikščiūnas were officially billed as independent private citizens. Four generals were now members of the cabinet as well. However, even the looming international crisis did not induce Lithuanian politicians to unite, and they continued to engage in petty political disputes.

The loss of its only access to the Baltic Sea was a major blow to the Lithuanian economy. Between 70% and 80% of foreign trade passed through Klaipėda. The region, which represented only about 5% of Lithuania's territory, contained a third of its industry. Lithuania also lost its heavy investments in the port's infrastructure. About 10,000 refugees, mostly Jews, left the region and sought shelter and support from the Lithuanian government. Lithuanians doubted the fate of their country: in March–April withdrawals of deposits in banks and credit institutions totaled almost 20% of total deposits. After the loss of Klaipėda, Lithuania drifted into the German sphere of influence, especially in terms of trade. At the end of 1939, Germany accounted for 75% of Lithuanian exports and for 86% of its imports. Germany and the Soviet Union concluded the Molotov–Ribbentrop Pact in 1939, dividing Eastern Europe into their respective spheres of influence. Not surprisingly, Lithuania was, at first, assigned to Germany. The Nazis went so far as to suggest a German–Lithuanian military alliance against Poland and promised to return the Vilnius Region, but Lithuania held to its policy of strict neutrality.