After the Cvetković-Maček agreement, a new government was formed on 26 August 1939, with Dragiša Cvetković of the Yugoslav Radical Union as Prime Minister and Vladko Maček of the Croatian Peasant Party as Deputy Prime Minister. Mihaldžić was named Minister of the Interior in this government. Mihaldžić was a Freemason and an Anglophile and in 1940, under the guise of an economic office in Belgrade, he employed a group of Slovenes who were spying for the British. Nazi Germany put pressure on the Yugoslav government, explaining that there were "too many Freemasons" in the government, and Mihaldžić was removed from office on 8 July 1940 and on 10 July 1940 named the Ban of the Drina Banovina, a post he held until the capitulation of Yugoslavia on 17 April 1941 to Nazi Germany in the April War.