However, only a small portion of the Freikorps in the Baltic retired in response to the Allies' order; the rest remained under the leadership of the German Army General Rüdiger von der Goltz.

To avoid casting blame on Germany and infuriating the Allies, von der Goltz withdrew into the background and in August 1919 merged his troops with the "Special Russian Corps", led by Cossack General Pavel Bermondt-Avalov.

With the support of British naval artillery and Estonian armoured train, a Latvian counter-offensive followed in November, which forced Bermondt's army to withdraw.

It briefly occupied the west bank of the Daugava River in Riga and the government of Kārlis Ulmanis had to request military assistance from Lithuania and Estonia.

After the involvement of the Entente military mission, General Eberhardt was able to organize evacuation of the remaining German Freikorps via Lithuania to East Prussia.