A hard place to be..
1930 - 1935
1930 rolled around with the Republic enjoying it's unique situation, situated between the reviving Germany and the Communist block. This allowed them to act as a go-between between the two powers, acting as an unofficial middleman to those Nazi businessmen willing to trade with the Boleshviks, and those Bolsheviks willing to trade with the Nazis: money was a universal launguage, overriding all politics. The Republic obviously took it's cut, to the enrichment of all.
The Great Depression affected the Republic, as it did the whole of Europe. Some companies reported job cuts of up to 30%, with numerous small traders going out of business. However, the situation here was not as bad as it could have been. The hated Bolsheviks perversely helped them get over the worst of it, providing a semi-stable market (though still with risks, generally fatal) which helped some businesses to survive.
An impromptu street market in Riga
The wave of unemployment caused a lurch to the right within the political spectrum. What had been a fairly centre-left Government swung to the Right as people became increasingly desperate. Scapegoats were easily found: Communist sympathisers were openly victimised, but those supporters of Nazi Germany not made to feel particularly welcome either. Nationalism began to rear it's head, with small but vocal groups demanding a return to the three seperate countries.
With a slow economic recovery under way as the 30's progressed, tensions eased somewhat, at least domestically. In the foreign field, the Republic began to cast nervous glances not only East, but also to the South. Adolf Hitler, having gained power, began to talk about laying claims to 'historic' regions of Germany - much to the alarm of the Republic. Relations, although still fairly good, began to cool. Wisely, the Government began to look at the security of its borders.
Hitler with another Aryan Superman
A series of defencesive emplacements began to be constructed on the Soviet border. Although these largely consisted of a series of bunkers and trenchlines, they were slowly being expanded under the direction of French advisors. The Army too began to recieve new equipment, along with training under the supervision of select members of the German Army, who appeared to have little love for the Nazi heirarchy.
The defences in places consisted of nothing more than concrete blocks
Still, the Republic recognised its inherently weak position. The dilemma facing them was obvious - a twin threat posed by the Soviets and the Nazis, with the Republic likely to be the loser which ever way it jumped. The British, making positive noises about 'Protection' and Independance' were a long way away - what help they could offer in a crisis was deemed of little value, at least in the short term. Nuetrality could offer little hope, except a swift defeat if it came to war.
As 1935 ended, the storm clouds over Europe began to darken.
