After the Klaipėda Revolt in January 1923, Balutis and Petras Klimas helped Prime Minister Ernestas Galvanauskas to coordinate Lithuanian diplomatic communication with the League of Nations. Together with Vaclovas Sidzikauskas, he later negotiated with a three-member commission, chaired by American Norman Davis, of the League of Nations regarding the future of the Klaipėda Region (Memel Territory). The League decided on an unofficial exchange: Lithuania would receive the Klaipėda Region for the lost Vilnius Region. After lengthy and difficult negotiations, the Klaipėda Convention was concluded in May 1924 and Klaipėda became an autonomous region of Lithuania. Balutis also negotiated the Soviet–Lithuanian Non-Aggression Pact of September 1926. In May–June 1927, Balutis negotiated with Tadeusz Hołówko regarding security issues and failed attempt to normalize the relationship with Poland.