Germany's influence in Hungary has led some historians to consider that the country increasingly became a client state of Germany after 1938. The Kingdom of Hungary was an Axis Power during World War II, intent on regaining Hungarian-majority territory that had been lost in the Treaty of Trianon, which it did in early 1941. By 1944, following heavy setbacks for the Axis, Horthy's government negotiated secretly with the Allies, and also considered leaving the war. Because of this Hungary was occupied by Germany and Horthy was deposed. The extremist Arrow Cross Party's leader Ferenc Szálasi established a new Nazi-backed government, effectively turning Hungary into a German-occupied puppet state.