The communist German Democratic Republic was established in the historic "Mitteldeutschland" ( Middle Germany ). Former German territories east of the Oder and Neisse rivers, mainly the Prussian provinces of Pomerania , East Prussia , West Prussia , Upper Silesia , Lower Silesia , the eastern Neumark of Brandenburg , and a small piece of Saxony were thus detached from Germany. To compensate Poland for the USSR's annexation of its eastern provinces, the Allies provisionally established Poland's post-war western border at the Oder–Neisse line at the Yalta Conference (1945). As a result, most of Germany's central territories became the Sowjetische Besatzungszone (SBZ, Soviet Occupation Zone). All other lands east of the Oder–Neisse line were put under Polish administration, with the exception of historic northern East Prussia , which went to the USSR. 
On 10 April 1898 the first Navy Bill was passed by the Reichstag. It authorised the maintenance of a fleet of 19 battleships, 8 armoured cruisers, 12 large cruisers and 30 light cruisers to be constructed by 1 April 1904. Existing ships were counted in the total, but the bill provided for ships to be replaced every 25 years on an indefinite basis. Five million marks annually was allocated to run the navy, with a total budget of 408 million marks for shipbuilding. This would bring the German fleet to a strength where it could contemplate challenging France or Russia, but would remain clearly inferior to the world's largest fleet, the Royal Navy.