Winston Churchill and others to accuse him of failure to stand up to the threat of Adolf Hitler. His government began the negotiations for the Anglo-German Naval Agreement. In these years he was irritated by the attacks of Lucy, Lady Houston, the strongly nationalistic proprietor of the Saturday Review. Lady Houston believed that MacDonald was under the control of the Soviets and amused the nation by giving MacDonald such epithets as the 'Spider of Lossiemouth,' and hanging a large sign in electric lights from the rigging of her luxury yacht, the . According to some versions, it read 'Down with Ramsay MacDonald,' and to others 'To Hell with Ramsay MacDonald.' Lady Houston also sent agents to disrupt his election campaigns. In 2020 new research revealed how she purchased three letters, supposedly written by Ramsay MacDonald to Soviet officials but actually the work of an American forger. In 1935 Lady Houston stated that she intended to publish them but eventually handed them over to Special Branch, and MacDonald's solicitors entered a legal battle with her. MacDonald was aware of his fading powers, and in 1935 he agreed to a timetable with Baldwin to stand down as Prime Minister after King George V's Silver Jubilee celebrations in May 1935. He resigned on 7 June in favour of Baldwin, and remained in the cabinet, taking the largely honorary post of Lord President vacated by Baldwin. Last years and death (1935–1937) At the November 1935 election MacDonald was defeated at Seaham by Emanuel Shinwell, but he was re-elected to Parliament at a by-election in January 1936 for the Combined Scottish Universities seat. After Hitler's re-militarisation of the Rhineland in 1936, MacDonald declared that he was "pleased" that the Treaty of Versailles was "vanishing", expressing his hope that the French had been taught a "severe lesson". MacDonald was one of the signatories to the Anglo-Egyptian Treaty of 1936. However, his health was failing. King George V died a week before voting began in the Scottish by-election, and MacDonald deeply mourned his death, paying tribute to him in his diary as "a gracious and kingly friend whom I have served with all my heart". There had been genuine affection between the two and the King is said to have regarded MacDonald as his favourite prime minister. Following the King's death MacDonald's physical and mental health collapsed. A sea voyage (with his youngest daughter Sheila) was recommended