Poland's relations with Germany were further troubled, firstly by the breakdown of negotiations for a commercial treaty, fol lowed by a tariff war, secondly by a failure of the arrangements to receive the German natives of Poland who had not opted for Polish nationality, whom the Polish Government called upon to leave Poland on or before July 31, 1925. Danzig was a perennial cause of friction. Its economic importance for Poland, its racial bonds with Germany, were never forgotten by either party.
The Locarno pact (q.v.) signed on Dec. 1, 1925, brought 'for ward a fresh solution to the problem of Poland's security. Poland and Germany signed an arbitration treaty which included the recognition of the inviolability of the existing treaties, the recog nition of the integrity of each contracting party's rights, and the elimination of war as a means of settlement of disputes and con flicts. In a separate treaty of guarantee between France and Poland, France is referred to as the guarantor of the Polish German arbitration agreement. France undertook in the case of
an unprovoked attack by Germany against Poland to abandon no means of assistance at her disposal and within the limits of the Covenant and of the agreements with Poland. Polish opinion was not easily reconciled to the idea of the Locarno pact. The ar rangements were accepted, but there was some feeling that Poland was being abandoned by France, which even brought about a temporary rapprochement with Soviet Russia. Soon afterwards the breakdown of his financial policy caused the resignation of Grabski.
On Nov. 20, Count Skrzynski formed a new coalition cabinet. The treasury was almost empty, the shortage of private capital was very great, unemployment was rife, and the zloty continued to fall. The year 1926 opened amid violent controversy. The Socialists proposed economies on the army budget, but would not hear of a reduction in the number of railway employees, asked for a rise in salaries in the lower branches, and demanded a large program of public works to relieve unemployment. The Right, on the contrary, desired a reduction of civilian expenditure, while maintz.ining the army at full strength. Another storm centre of embittered dispute was the question of re-instating Mar shal Pilsudski in the position of commander-in-chief of the army. He had resigned the office of chief of staff during the Govern ment of the Nationalist-Peasant coalition.
In foreign affairs, the Skrzynski administration was under the shadow of a growing feeling of international insecurity for Poland. A large German espionage organization was discovered in Poland. When, a month after the ratification of the Locarno Treaty, the League of Nations proceeded to elect Germany a permanent mem ber of the Council, the Polish delegates claimed a permanent seat for Poland as well. It was not till after a good deal of dramatic friction in the League that a solution was found—Germany getting a permanent, and Poland a so-called "half-permanent" seat in the Council. Apart from securing for Poland this important place in the League, the Skrzynski Government endeavoured to strengthen Poland's international position by regional understanding with her neighbours: the alliance with Rumania was renewed; an exchange of visits took place between Skrzynski and Dr. Benek and a num ber of conventions, including an important political treaty, was concluded with Czechoslovakia ; finally, as a result of Skrzyriski's visit to Vienna, a new arbitration treaty was signed with Austria.