From The Weimar Years: Rise and Fall 1918–1933, by Frank McDonough (Bloomsbury, 2023), Kindle pp. 229-230, 232:
The Treaty of Rapallo, signed on 16 April, was the first of Germany’s major diplomatic surprises of the inter-war period. The agreement was not the result, as is often supposed, of a spur-of-the-moment flight of inspiration by Rathenau, but resulted from painstaking secret diplomacy by the German Foreign Ministry, led by Maltzan, which had already resulted in the signing of a Russo-German trade agreement on 6 May 1921, and had also led to the formal diplomatic recognition of the Soviet government by the German government.
The Treaty of Rapallo was called a ‘treaty of friendship’, with both signatories agreeing to improve trade relations by offering each other ‘most favoured’ trading status, re-establishing normal diplomatic relations, and renouncing reparations claims against each other. The German government also agreed to waive indemnities and losses sustained by German citizens due to the abolition of private property in Soviet Russia. The treaty did not contain any secret military provisions, but secret military cooperation did develop in the years following.
The agreement came as a huge surprise to the British and French governments. Their first reactions were a combination of anger and fear. The agreement between Europe’s two political outcasts was viewed by the Western Allies as a potential menace to the European balance of power. The French government’s response was particularly bitter. PoincarĂ© voiced his objections plainly in a speech on 24 April, in his home town of Bar-le-Duc. He declared the treaty a provocation and reiterated his determination to ensure the complete fulfilment of the provisions of the Treaty of Versailles by Germany. He also warned that if the Allies could not agree how to secure their treaty rights and reparations payments, then the French government would resort to unilateral action against Germany.
The British government was also deeply alarmed. Lloyd George had been trying to create an alliance of the non-socialist countries to force Soviet Russia to recognise the debts incurred by the deposed Tsarist regime before the 1917 Bolshevik Revolution. The release of Soviet Russia from the diplomatic ghetto gave him no pleasure whatsoever. Lloyd George had also been trying to restrain Poincaré from taking unilateral military action by occupying the Ruhr, and he thought the Treaty would only serve to gain support in France for military action.
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A belief commonly held among the Allies was that the treaty contained secret military clauses. Both the German and Soviet governments denied this, publishing the treaty in full to pour icy water on this accusation. Yet soon after the signing of the Treaty of Rapallo, Seeckt did conclude a secret agreement with the Russian Army general staff. To conceal secret German military training and rearmament, Seeckt was granted generous funds from the German government to set up the Society for the Encouragement of Commercial Enterprises (GEFU). Under cover of this organisation, he negotiated opportunities for German military training in the use of tanks and aircraft in Soviet Russia. This led to the later creation between 1929 and 1933 of the secret Kama Tank school near Kazan, in the Soviet Union, which trained Germans in the use of modern tanks, and the Lipetsk Fighter-Pilot school, in Lipetsk, also in the Soviet Union which trained German pilots. In return, Russian officers gained valuable training in military strategy from their German counterparts. The Russian military were also commissioned to manufacture artillery ammunition, planes, and poison gas for Germany. These secret military training arrangements and armaments supply deals remained in effect throughout the Weimar years.
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