German–Polish customs war
Encyclopedia
The German–Polish customs war was a political and economic conflict between the Second Polish Republic
and the Weimar Republic
, which began in June 1925 and ended officially in March 1934. The conflict began when Poland's status expired as one of Entente
most favoured nation
s in trade with Germany.Nonreciprocal most favoured nation status for all Allies of World War I (Entente)
countries was determined in the Versailles treaty. Berlin then decided to raise customs duty
, which primarily affected the Polish coal industry – Poland's main export to Germany. In return, Warsaw also raised duty on German goods. Germany's purpose in the war was to cause a breakdown of Poland's economy and gain political concessions. These included claims to Polish territories left free for revision after the 1925 pact
with France.
. The economy of the newly created country was bad, the result of several wars fought on Polish soil between 1914 and 1921, and of many years of division between three partitioning powers. In 1919, industrial production on Polish lands fell by 70% in comparison to 1914, and the government in Warsaw had a difficult task. The country was divided into different economic and political systems, with several kinds of currency in circulation. The Baltic Sea
port of the Free City of Danzig
was not part of Poland.
The lands of former Congress Poland
, which before 1914 had been responsible for 15% of industrial production of the Russian Empire
, were cut off from eastern markets after the creation of the Soviet Union
. In addition, the collapse of Austria-Hungary
destroyed the 19th century economic ties of Galicia with Austria and Bohemia
. Poland’s closest ally, France
, was far away, and trade with Paris
was of limited nature. Germany emerged as a main trade partner and market for Polish products. In 1925, 40% of Polish foreign trade was with Germany, and Poland’s western, most developed provinces, the Polish part of Upper Silesia
, Greater Poland
and Pomerelia
, were even more dependent on Germany, their powerful western neighbor. Until 1925, Polish Upper Silesia sold half of its coal to Germany; in Poland, there was little demand for the rest because industrial production in Polish lands was a fraction of what it had been; in 1921, it was a mere 35% of its 1913 level.
lost its eastern Province of Posen
and West Prussia
to Poland, partially after uprisings by the Polish population in Greater Poland
and Silesia
. These areas (Greater Poland
and Gdańsk Pomerania
) had been taken by Prussia in the Polish Partitions. Further territorial claims of Poland were settled in the East Prussian plebiscite
and the Upper Silesia plebiscite
. While Germany controlled the territories, more than 154,000 German colonists settled in the region.
In the early interwar period, in Germany, the Second Polish Republic was regarded a "temporary state" ("Saisonstaat") and tensions between the two nations were high. The German-Polish border was never officially accepted by Germany and from the start of 1919 German foreign policy aimed at revising the Versailles Treaty and acquiring once more Polish territories. To pursue its goals of territorial revisionism, German state used the presence of German minority in Poland, which was both the result and tool of Germanisation policy. In 1924, the situation in Germany improved, both internally and internationally. On 30th August 1924 in Vienna Convention, both governments agreed on the eviction of 28,000-30,000 Germans living in Poland who had chosen German citizenship ("Optanten" in German) and of 5.000 Poles living in Germany who had chosen Polish citizenship ("Optanci" in Polish). The Weimar Republic, which in 1926 became a member of the League of Nations
, enjoyed a period of relative prosperity, which had a positive effect on Poland.
The population in the territories of Silesia and parts of Poland of the former Prussian partition
, a significant minority of them ethnic Germans, became Polish citizens. Ethnic Germans were entitled to "opt" for German citizenship and leave the country; this group was called "Optanten". The Polish government sought to keep the granting of citizenship in tight limits; people who left the area in the post-war turmoils were regarded "tacit Optants". According to the Minorities Treaty (also called the "Little Versailles Treaty") signed by Poland, all former citizens of partitioning powers who rejected Polish citizenship had to leave the country by 10 January 1923. This concerned citizens of Russia, Hungary, Austria and Germany, though in the case of Germans opting for German citizenship, there was no precise date established for them to leave. Per the treaty of Versailles, the victorious countries, including Poland, were authorized to liquidate the property of German nationals. Helmut Lippelt writes that Germany used the existence of the German minority in Poland for political purposes and as part of its revanchist demands, prompting Polish countermeasures. Polish Prime-Minister Władysław Sikorski stated in 1923 that the de-Germanization of these territories had to be ended by vigorous and quick liquidation of property and eviction of German "Optanten"; German nationalists were to be convinced that their view of the temporary state of Poland's western border was wrong. To Lippelt this was partially a reaction to the German claims and partially nationalism, urging to exclude the German element. In turn, German policy was fueled by anti-Polish prejudice.
In 1925, Gustav Stresemann
proposed an agreement with France (the Locarno Treaties
) and made it clear that in doing so, he intended to "gain a free hand to secure a peaceful change of the borders in the East and [...] concentrate on a later incorporation of German territories in the East". Stresemann refused to engage in any international cooperation that would have "prematurely" stabilized the Polish economy. In response to a British proposal, Stresemann wrote to the German ambassador in London, "[A] final and lasting recapitalization of Poland must be delayed until the country is ripe for a settlement of the border according to our wishes and until our own position is sufficiently strong". According to Stresemann's letter, there was to be no settlement "until [Poland's] economic and financial distress ha[d] reached an extreme stage and reduced the entire Polish body politic to a state of powerlessness". However, Stresemann did not intend to provoke a trade war. The German press openly praised the trade war, hoping it would lead to destruction of the Polish state. As the Frankfurter Zeitung
wrote on 14 June 1924, "Poland must be mortally wounded after the trade war. With her blood her strength will flow away as well, and finally her independence"
status unilaterally to all Entente
countries, as well as to its newly created eastern neighbors. The export of goods produced in the former territories of German Empire that now constituted Second Polish Republic was generally tax-free, in order to avoid economic collapse of these territories. According to the Geneva Convention, Germany was obliged to allow export of specified quantities of coal from the Polish part of Upper Silesia. Both documents were valid until 15 June 1925.
In June 1924, a new customs law was passed in Poland. Its aim was to protect the Polish market from foreign competitors and cover increased financial needs. It was supposed to serve as a basis for future trade agreements. While divergent terms were settled in bilateral treaties between Poland and France, Czechoslovakia
, Hungary
and Greece
, the taxes on other imports were raised 100 percent.
Poland asked for renewal of the trade privileges, but refused to grant most favoured nation status to German goods. In the negotiations of early 1925, Germany tried to gain time by raising trade and minority issues, such as the "Optanten" problem, liquidation
measures and settlement rights; on 15 June, the relevant clauses of the Versailles Treaty would expire. Germany demanded that Poland give up undisputed rights from the Treaty of Versailles and revise the Vienna Convention, closed six months earlier. The Germans hoped that by this, Poland would make concessions; and once again, German businessmen would follow German trade across the border. This was a sensitive issue for Poland, having just thrown off German political and economic influence. Additionally Germany demanded privileges for the German minority.
In January 1925, when Germany recovered its trade policy sovereignty, all purchases of Polish coal were stopped and the customs duties
raised on all Polish-made products. Some Polish exports were subject to a German embargo
. Warsaw responded by raising tariffs on German goods. Negotiations began in Berlin on 3 March 1925. Germany demanded more privileges for the German minority in Poland as a pre-condition for resumption of the coal trade, but Warsaw refused. The war caused the zloty to lose value and resulted in a reduction of the Polish industrial output. The most affected area was Polish Upper Silesia, the most developed part of the nation and the most dependent on trade with Germany. In November 1925, the government of Władysław Grabski collapsed.
Germany also blocked Polish attempts to get a loan from Great Britain, seeing it as a threat to its long-term plan to annex Polish territory after the fall of the Polish state.
When Polish delegations tried to reach a peaceful understanding with Germany on 10 December 1926, Stresemann rejected the talks, saying there would be no normalization of German-Polish relations until the "border problems" were resolved. To clarify, he identified Upper Silesia, Pomerania and Danzig (Gdańsk
) as "border problems". These sentiments were echoed by Reichsbank
President, Hjalmar Schacht
, who stated that any economic agreements with Poland must be preceded by Poland's relinquishment of Upper Silesia and the Polish Corridor to Germany. Over time, "German political demands grew fantastic", writes historian Robert Spaulding.
Officially, the customs war lasted until March 1934 and was settled subsequent to the German–Polish Non-Aggression Pact. Poland was aided to some extent by Czechoslovakia
, Austria
, and Italy
, whose governments reduced rail tariffs on Polish exports and transit, increasing export of Polish coal to these countries.
The Polish government, facing a breakdown in international trade, was forced to initiate a program of internal investment, which resulted in the growth of local production. Unemployment was reduced by a mass public works program, with two important components, the construction of the new Baltic Sea port of Gdynia
, and the Polish Coal Trunk-Line
, a rail connection between Upper Silesia and Gdynia. Since the zloty had lost much of its value, export of Polish coal to Scandinavia
became profitable, and paradoxically, the war had some positive impact. Poland found new trade partners and a program of modernization of the country was accelerated. Also, the port of Gdynia enjoyed dynamic growth. At the same time, growing poverty and unemployment resulted in strikes and demonstrations; the political mood was radicalized. One of the consequences of the war was The May Coup d'État of 1926, carried out by Jozef Pilsudski
.
For Germany, the customs war had a negligible effect; exports to Poland totaled just 4 to 5% of German international trade.
Second Polish Republic
The Second Polish Republic, Second Commonwealth of Poland or interwar Poland refers to Poland between the two world wars; a period in Polish history in which Poland was restored as an independent state. Officially known as the Republic of Poland or the Commonwealth of Poland , the Polish state was...
and the Weimar Republic
Weimar Republic
The Weimar Republic is the name given by historians to the parliamentary republic established in 1919 in Germany to replace the imperial form of government...
, which began in June 1925 and ended officially in March 1934. The conflict began when Poland's status expired as one of Entente
Allies of World War I
The Entente Powers were the countries at war with the Central Powers during World War I. The members of the Triple Entente were the United Kingdom, France, and the Russian Empire; Italy entered the war on their side in 1915...
most favoured nation
Most favoured nation
In international economic relations and international politics, most favoured nation is a status or level of treatment accorded by one state to another in international trade. The term means the country which is the recipient of this treatment must, nominally, receive equal trade advantages as the...
s in trade with Germany.Nonreciprocal most favoured nation status for all Allies of World War I (Entente)
Allies of World War I
The Entente Powers were the countries at war with the Central Powers during World War I. The members of the Triple Entente were the United Kingdom, France, and the Russian Empire; Italy entered the war on their side in 1915...
countries was determined in the Versailles treaty. Berlin then decided to raise customs duty
Duty
Duty is a term that conveys a sense of moral commitment to someone or something. The moral commitment is the sort that results in action and it is not a matter of passive feeling or mere recognition...
, which primarily affected the Polish coal industry – Poland's main export to Germany. In return, Warsaw also raised duty on German goods. Germany's purpose in the war was to cause a breakdown of Poland's economy and gain political concessions. These included claims to Polish territories left free for revision after the 1925 pact
Locarno Treaties
The Locarno Treaties were seven agreements negotiated at Locarno, Switzerland, on 5 October – 16 October 1925 and formally signed in London on 3 December, in which the First World War Western European Allied powers and the new states of central and Eastern Europe sought to secure the post-war...
with France.
Background
In 1918, Poland gained independence after 123 years of foreign dominancePartitions of Poland
The Partitions of Poland or Partitions of the Polish–Lithuanian Commonwealth took place in the second half of the 18th century and ended the existence of the Polish–Lithuanian Commonwealth, resulting in the elimination of sovereign Poland for 123 years...
. The economy of the newly created country was bad, the result of several wars fought on Polish soil between 1914 and 1921, and of many years of division between three partitioning powers. In 1919, industrial production on Polish lands fell by 70% in comparison to 1914, and the government in Warsaw had a difficult task. The country was divided into different economic and political systems, with several kinds of currency in circulation. The Baltic Sea
Baltic Sea
The Baltic Sea is a brackish mediterranean sea located in Northern Europe, from 53°N to 66°N latitude and from 20°E to 26°E longitude. It is bounded by the Scandinavian Peninsula, the mainland of Europe, and the Danish islands. It drains into the Kattegat by way of the Øresund, the Great Belt and...
port of the Free City of Danzig
Free City of Danzig
The Free City of Danzig was a semi-autonomous city-state that existed between 1920 and 1939, consisting of the Baltic Sea port of Danzig and surrounding areas....
was not part of Poland.
The lands of former Congress Poland
Congress Poland
The Kingdom of Poland , informally known as Congress Poland , created in 1815 by the Congress of Vienna, was a personal union of the Russian parcel of Poland with the Russian Empire...
, which before 1914 had been responsible for 15% of industrial production of the Russian Empire
Russian Empire
The Russian Empire was a state that existed from 1721 until the Russian Revolution of 1917. It was the successor to the Tsardom of Russia and the predecessor of the Soviet Union...
, were cut off from eastern markets after the creation of the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
. In addition, the collapse of Austria-Hungary
Austria-Hungary
Austria-Hungary , more formally known as the Kingdoms and Lands Represented in the Imperial Council and the Lands of the Holy Hungarian Crown of Saint Stephen, was a constitutional monarchic union between the crowns of the Austrian Empire and the Kingdom of Hungary in...
destroyed the 19th century economic ties of Galicia with Austria and Bohemia
Bohemia
Bohemia is a historical region in central Europe, occupying the western two-thirds of the traditional Czech Lands. It is located in the contemporary Czech Republic with its capital in Prague...
. Poland’s closest ally, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, was far away, and trade with Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
was of limited nature. Germany emerged as a main trade partner and market for Polish products. In 1925, 40% of Polish foreign trade was with Germany, and Poland’s western, most developed provinces, the Polish part of Upper Silesia
Upper Silesia
Upper Silesia is the southeastern part of the historical and geographical region of Silesia. Since the 9th century, Upper Silesia has been part of Greater Moravia, the Duchy of Bohemia, the Piast Kingdom of Poland, again of the Lands of the Bohemian Crown and the Holy Roman Empire, as well as of...
, Greater Poland
Greater Poland
Greater Poland or Great Poland, often known by its Polish name Wielkopolska is a historical region of west-central Poland. Its chief city is Poznań.The boundaries of Greater Poland have varied somewhat throughout history...
and Pomerelia
Pomerelia
Pomerelia is a historical region in northern Poland. Pomerelia lay in eastern Pomerania: on the southern shore of the Baltic Sea and west of the Vistula and its delta. The area centered on the city of Gdańsk at the mouth of the Vistula...
, were even more dependent on Germany, their powerful western neighbor. Until 1925, Polish Upper Silesia sold half of its coal to Germany; in Poland, there was little demand for the rest because industrial production in Polish lands was a fraction of what it had been; in 1921, it was a mere 35% of its 1913 level.
Polish-German relations
After World War I, the German EmpireGerman Empire
The German Empire refers to Germany during the "Second Reich" period from the unification of Germany and proclamation of Wilhelm I as German Emperor on 18 January 1871, to 1918, when it became a federal republic after defeat in World War I and the abdication of the Emperor, Wilhelm II.The German...
lost its eastern Province of Posen
Province of Posen
The Province of Posen was a province of Prussia from 1848–1918 and as such part of the German Empire from 1871 to 1918. The area was about 29,000 km2....
and West Prussia
West Prussia
West Prussia was a province of the Kingdom of Prussia from 1773–1824 and 1878–1919/20 which was created out of the earlier Polish province of Royal Prussia...
to Poland, partially after uprisings by the Polish population in Greater Poland
Greater Poland Uprising (1918–1919)
The Greater Poland Uprising of 1918–1919, or Wielkopolska Uprising of 1918–1919 or Posnanian War was a military insurrection of Poles in the Greater Poland region against Germany...
and Silesia
Silesian Uprisings
The Silesian Uprisings were a series of three armed uprisings of the Poles and Polish Silesians of Upper Silesia, from 1919–1921, against German rule; the resistance hoped to break away from Germany in order to join the Second Polish Republic, which had been established in the wake of World War I...
. These areas (Greater Poland
Greater Poland
Greater Poland or Great Poland, often known by its Polish name Wielkopolska is a historical region of west-central Poland. Its chief city is Poznań.The boundaries of Greater Poland have varied somewhat throughout history...
and Gdańsk Pomerania
Gdańsk Pomerania
For the medieval duchy, see Pomeranian duchies and dukesGdańsk Pomerania or Eastern Pomerania is a geographical region in northern Poland covering eastern part of Pomeranian Voivodeship...
) had been taken by Prussia in the Polish Partitions. Further territorial claims of Poland were settled in the East Prussian plebiscite
East Prussian plebiscite
The East Prussia plebiscite , also known as the Allenstein and Marienwerder plebiscite or Warmia, Masuria and Powiśle plebiscite , was a plebiscite for self-determination of the regions Warmia , Masuria and Powiśle, which had been in parts of East Prussia and West Prussia, in accordance with...
and the Upper Silesia plebiscite
Upper Silesia plebiscite
The Upper Silesia plebiscite was a border referendum mandated by the Versailles Treaty and carried out in March 1921 to determine a section of the border between Weimar Germany and Poland. The region was ethnically mixed, chiefly among Germans, Poles and Silesians. According to prewar statistics,...
. While Germany controlled the territories, more than 154,000 German colonists settled in the region.
In the early interwar period, in Germany, the Second Polish Republic was regarded a "temporary state" ("Saisonstaat") and tensions between the two nations were high. The German-Polish border was never officially accepted by Germany and from the start of 1919 German foreign policy aimed at revising the Versailles Treaty and acquiring once more Polish territories. To pursue its goals of territorial revisionism, German state used the presence of German minority in Poland, which was both the result and tool of Germanisation policy. In 1924, the situation in Germany improved, both internally and internationally. On 30th August 1924 in Vienna Convention, both governments agreed on the eviction of 28,000-30,000 Germans living in Poland who had chosen German citizenship ("Optanten" in German) and of 5.000 Poles living in Germany who had chosen Polish citizenship ("Optanci" in Polish). The Weimar Republic, which in 1926 became a member of the League of Nations
League of Nations
The League of Nations was an intergovernmental organization founded as a result of the Paris Peace Conference that ended the First World War. It was the first permanent international organization whose principal mission was to maintain world peace...
, enjoyed a period of relative prosperity, which had a positive effect on Poland.
The population in the territories of Silesia and parts of Poland of the former Prussian partition
Prussian partition
The Prussian partition refers to the former territories of the Polish-Lithuanian Commonwealth acquired during the partitions of Poland in the late 18th century by the Kingdom of Prussia.-History:...
, a significant minority of them ethnic Germans, became Polish citizens. Ethnic Germans were entitled to "opt" for German citizenship and leave the country; this group was called "Optanten". The Polish government sought to keep the granting of citizenship in tight limits; people who left the area in the post-war turmoils were regarded "tacit Optants". According to the Minorities Treaty (also called the "Little Versailles Treaty") signed by Poland, all former citizens of partitioning powers who rejected Polish citizenship had to leave the country by 10 January 1923. This concerned citizens of Russia, Hungary, Austria and Germany, though in the case of Germans opting for German citizenship, there was no precise date established for them to leave. Per the treaty of Versailles, the victorious countries, including Poland, were authorized to liquidate the property of German nationals. Helmut Lippelt writes that Germany used the existence of the German minority in Poland for political purposes and as part of its revanchist demands, prompting Polish countermeasures. Polish Prime-Minister Władysław Sikorski stated in 1923 that the de-Germanization of these territories had to be ended by vigorous and quick liquidation of property and eviction of German "Optanten"; German nationalists were to be convinced that their view of the temporary state of Poland's western border was wrong. To Lippelt this was partially a reaction to the German claims and partially nationalism, urging to exclude the German element. In turn, German policy was fueled by anti-Polish prejudice.
In 1925, Gustav Stresemann
Gustav Stresemann
was a German politician and statesman who served as Chancellor and Foreign Minister during the Weimar Republic. He was co-laureate of the Nobel Peace Prize in 1926.Stresemann's politics defy easy categorization...
proposed an agreement with France (the Locarno Treaties
Locarno Treaties
The Locarno Treaties were seven agreements negotiated at Locarno, Switzerland, on 5 October – 16 October 1925 and formally signed in London on 3 December, in which the First World War Western European Allied powers and the new states of central and Eastern Europe sought to secure the post-war...
) and made it clear that in doing so, he intended to "gain a free hand to secure a peaceful change of the borders in the East and [...] concentrate on a later incorporation of German territories in the East". Stresemann refused to engage in any international cooperation that would have "prematurely" stabilized the Polish economy. In response to a British proposal, Stresemann wrote to the German ambassador in London, "[A] final and lasting recapitalization of Poland must be delayed until the country is ripe for a settlement of the border according to our wishes and until our own position is sufficiently strong". According to Stresemann's letter, there was to be no settlement "until [Poland's] economic and financial distress ha[d] reached an extreme stage and reduced the entire Polish body politic to a state of powerlessness". However, Stresemann did not intend to provoke a trade war. The German press openly praised the trade war, hoping it would lead to destruction of the Polish state. As the Frankfurter Zeitung
Frankfurter Zeitung
The Frankfurter Zeitung was a German language newspaper that appeared from 1856 to 1943. It emerged from a market letter that was published in Frankfurt...
wrote on 14 June 1924, "Poland must be mortally wounded after the trade war. With her blood her strength will flow away as well, and finally her independence"
Customs war between Poland and Germany
In the immediate post-World War I period, trade between both nations was regulated by the Versailles Treaty, and by the Geneva Convention on Upper Silesia (1922). The Treaty of Versailles stipulated that Germany give most favoured nationMost favoured nation
In international economic relations and international politics, most favoured nation is a status or level of treatment accorded by one state to another in international trade. The term means the country which is the recipient of this treatment must, nominally, receive equal trade advantages as the...
status unilaterally to all Entente
Entente
Entente, meaning a diplomatic "understanding", may refer to a number of agreements:- History :* The Entente cordiale, 1904 between France and the United Kingdom* The Anglo-Russian Entente, 1907 between the United Kingdom and Russia...
countries, as well as to its newly created eastern neighbors. The export of goods produced in the former territories of German Empire that now constituted Second Polish Republic was generally tax-free, in order to avoid economic collapse of these territories. According to the Geneva Convention, Germany was obliged to allow export of specified quantities of coal from the Polish part of Upper Silesia. Both documents were valid until 15 June 1925.
In June 1924, a new customs law was passed in Poland. Its aim was to protect the Polish market from foreign competitors and cover increased financial needs. It was supposed to serve as a basis for future trade agreements. While divergent terms were settled in bilateral treaties between Poland and France, Czechoslovakia
Czechoslovakia
Czechoslovakia or Czecho-Slovakia was a sovereign state in Central Europe which existed from October 1918, when it declared its independence from the Austro-Hungarian Empire, until 1992...
, Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...
and Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
, the taxes on other imports were raised 100 percent.
Poland asked for renewal of the trade privileges, but refused to grant most favoured nation status to German goods. In the negotiations of early 1925, Germany tried to gain time by raising trade and minority issues, such as the "Optanten" problem, liquidation
Liquidation
In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation...
measures and settlement rights; on 15 June, the relevant clauses of the Versailles Treaty would expire. Germany demanded that Poland give up undisputed rights from the Treaty of Versailles and revise the Vienna Convention, closed six months earlier. The Germans hoped that by this, Poland would make concessions; and once again, German businessmen would follow German trade across the border. This was a sensitive issue for Poland, having just thrown off German political and economic influence. Additionally Germany demanded privileges for the German minority.
In January 1925, when Germany recovered its trade policy sovereignty, all purchases of Polish coal were stopped and the customs duties
Duty (economics)
In economics, a duty is a kind of tax, often associated with customs, a payment due to the revenue of a state, levied by force of law. It is a tax on certain items purchased abroad...
raised on all Polish-made products. Some Polish exports were subject to a German embargo
Embargo
An embargo is the partial or complete prohibition of commerce and trade with a particular country, in order to isolate it. Embargoes are considered strong diplomatic measures imposed in an effort, by the imposing country, to elicit a given national-interest result from the country on which it is...
. Warsaw responded by raising tariffs on German goods. Negotiations began in Berlin on 3 March 1925. Germany demanded more privileges for the German minority in Poland as a pre-condition for resumption of the coal trade, but Warsaw refused. The war caused the zloty to lose value and resulted in a reduction of the Polish industrial output. The most affected area was Polish Upper Silesia, the most developed part of the nation and the most dependent on trade with Germany. In November 1925, the government of Władysław Grabski collapsed.
Germany also blocked Polish attempts to get a loan from Great Britain, seeing it as a threat to its long-term plan to annex Polish territory after the fall of the Polish state.
When Polish delegations tried to reach a peaceful understanding with Germany on 10 December 1926, Stresemann rejected the talks, saying there would be no normalization of German-Polish relations until the "border problems" were resolved. To clarify, he identified Upper Silesia, Pomerania and Danzig (Gdańsk
Gdansk
Gdańsk is a Polish city on the Baltic coast, at the centre of the country's fourth-largest metropolitan area.The city lies on the southern edge of Gdańsk Bay , in a conurbation with the city of Gdynia, spa town of Sopot, and suburban communities, which together form a metropolitan area called the...
) as "border problems". These sentiments were echoed by Reichsbank
Reichsbank
The Reichsbank was the central bank of Germany from 1876 until 1945. It was founded on 1 January 1876 . The Reichsbank was a privately owned central bank of Prussia, under close control by the Reich government. Its first president was Hermann von Dechend...
President, Hjalmar Schacht
Hjalmar Schacht
Dr. Hjalmar Horace Greeley Schacht was a German economist, banker, liberal politician, and co-founder of the German Democratic Party. He served as the Currency Commissioner and President of the Reichsbank under the Weimar Republic...
, who stated that any economic agreements with Poland must be preceded by Poland's relinquishment of Upper Silesia and the Polish Corridor to Germany. Over time, "German political demands grew fantastic", writes historian Robert Spaulding.
Officially, the customs war lasted until March 1934 and was settled subsequent to the German–Polish Non-Aggression Pact. Poland was aided to some extent by Czechoslovakia
Czechoslovakia
Czechoslovakia or Czecho-Slovakia was a sovereign state in Central Europe which existed from October 1918, when it declared its independence from the Austro-Hungarian Empire, until 1992...
, Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
, and Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, whose governments reduced rail tariffs on Polish exports and transit, increasing export of Polish coal to these countries.
Impact of the war
Gdynia
Gdynia is a city in the Pomeranian Voivodeship of Poland and an important seaport of Gdańsk Bay on the south coast of the Baltic Sea.Located in Kashubia in Eastern Pomerania, Gdynia is part of a conurbation with the spa town of Sopot, the city of Gdańsk and suburban communities, which together...
, and the Polish Coal Trunk-Line
Polish Coal Trunk-Line
The Coal Trunk-Line is one of the most important rail connections in Poland.It crosses the central part of the country, from the coal mines and steelworks of Upper Silesia in the South to the Baltic Sea port of Gdynia in the North. The line is used mostly by freight trains: passenger connections...
, a rail connection between Upper Silesia and Gdynia. Since the zloty had lost much of its value, export of Polish coal to Scandinavia
Scandinavia
Scandinavia is a cultural, historical and ethno-linguistic region in northern Europe that includes the three kingdoms of Denmark, Norway and Sweden, characterized by their common ethno-cultural heritage and language. Modern Norway and Sweden proper are situated on the Scandinavian Peninsula,...
became profitable, and paradoxically, the war had some positive impact. Poland found new trade partners and a program of modernization of the country was accelerated. Also, the port of Gdynia enjoyed dynamic growth. At the same time, growing poverty and unemployment resulted in strikes and demonstrations; the political mood was radicalized. One of the consequences of the war was The May Coup d'État of 1926, carried out by Jozef Pilsudski
Józef Pilsudski
Józef Klemens Piłsudski was a Polish statesman—Chief of State , "First Marshal" , and authoritarian leader of the Second Polish Republic. From mid-World War I he had a major influence in Poland's politics, and was an important figure on the European political scene...
.
For Germany, the customs war had a negligible effect; exports to Poland totaled just 4 to 5% of German international trade.