dynasty. On 7 August, Friedrich abolished institutions of the Hungarian Soviet Republic and instituted private ownership in industry, commerce and agriculture, following decrees which abrogated the Soviet legacy from the former Peidl Government. On 23 August, the Archduke decided to resign the regency before opposition from the powers; Friedrich thus lost one of the pillars of his government and the post of head of state remained unfilled. His attempts to create a military force loyal to his government, independent of the National Army and theoretically subordinate to the government of Szeged, failed due to the Romanian opposition. The few units that managed to reunite mostly defected to the side of Miklós Horthy when they entered Szeged, after evacuating it of the Romanian formations. Militarily limited, Friedrich tried to politically underpin his government during August and September with successive modifications of the cabinet, first to the left and then to the right, without thereby achieving the recognition of the Entente. With each change of government, refugees, and especially Viennese counterrevolutionaries, were gaining power. Despite failing to achieve recognition of the major powers, the alliances resulted in the formation of a powerful new political party, the Christian National Union Party (KNEP). This party, created in October, brought together important politicians from the northwestern territories of Hungary, the Catholic Church and certain refugees from Transylvania, such as those grouped around István Bethlen and Pál Teleki. Part of the upper-class bourgeoisie also supported the new organisation. The government of Szeged, which had recognised Friedrich's government, had disappeared; the main weakness of this government was the military, and the uncertain possibility at the outset that Horthy should not subordinate his National Army to Friedrich's government, as it happened. Friedrich tried to earn his loyalty by officially naming himself Commander-in-Chief of the Hungarian Army, a position he already held, but he did not manage to subordinate Horthy to his government, nor transfer his government to the capital. Meanwhile, Horthy controlled the Western territories free of the Romanian occupation through the officers of his army, leaving aside the official officers loyal to the government of Friedrich. At the beginning of November, the Romanians showed themselves willing to evacuate the capital and the whole territory to the west of the Tisza River, which happened to be controlled by the forces of Horthy, given the lack of significant forces directly subordinate to the government. Faced with the possibility of