France and Belgium were rivals for the hand of the Grand Duchy of Luxemburg. Belgium after the war asserted that Luxemburg was really a part of Belgium and that its political incorporation in Belgium was the logical result of Germany’s defeat in the World War. For reasons that we have given above, the Entente Powers decided on a referendum. The Luxemburgeois were asked to choose between a republic and retention of the existing constitution, and between economic union with France or Belgium. A return to the German Zollverein was forbidden; so this did not enter into the question. The people on October 10, 1919, voted by more than three to one to retain their grand-ducal form of government and to form an economic union with France. This victory France used to bargain with Belgium for the military alliance. When that was concluded, France informed Luxemburg that she did not desire a customs union. Thus the wish of the people of Luxemburg and their interests were sacrificed to a diplomatic deal in which they had no concern. Luxemburg was compelled to sign the trade agreement forced upon her and on July 25, 1921, entered the Belgian customs union for fifty years. The Clericals were able to point to this great success of their policy as offsetting the growing uneasiness of the Belgians over the efforts of France to deflect the trade of Alsace-Lorraine from Antwerp to Dunkirk by discriminatory railway tariffs and by placing an extra tax on commodities carried through Antwerp. But in November, 1921, Nationalists and Clericals suffered a severe reverse in a new General Election, although they enjoyed the advantage of proportional representation. Just before the election the withdrawal of the Socialist party from the Government had broken up the coalition. Liberals and Clericals combined in the election against the Socialists, invoking the issues of reparations and security. Despite this powerful combination and the tremendous influence of an appeal to fear and hatred in a country that had suffered so horribly and so recently, the Socialists lost only two seats in the Chamber, but they gained twenty seats in the Senate, completing the success begun in 1919. The new Parliament did not contain a Clerical majority either in the Senate or the Chamber.