1938 Polish ultimatum to Lithuania three agreements covering rail transit, mail service, and river navigation had been concluded. The railroad, torn apart for several kilometers at the border, was repaired. A customs post was established in Vievis, and consulates were opened in Klaipėda and Vilnius. Lithuania closed the League for the Liberation of Vilnius and the Vilnius Foundation; the latter organization had given financial support to Lithuanian activities in the Vilnius Region. Nevertheless, Lithuania continued to claim Vilnius as its "de jure" capital. In May 1938 a new constitution was adopted, which echoed the previous constitution's statement that Vilnius was the permanent capital of Lithuania
Socialist Party of Lithuania regulated, socially oriented market economy - with the production forces and relations of production the managements goal. Markets in the system - as far as possible, and state regulation - as needed. It considers the principles of state regulation as the best economic development incentive. The LSP ideology was based on the methodology of dialectical materialism, the theory of Marxism and contemporary social science. It believed that Socialists should unambiguously disassociate from Stalinist and totalitarian theories and practice. LSP propagated what it believed to be the new 21st century socialism. Socialist Party of Lithuania Socialist Party of Lithuania () was