This Master's thesis emphasizes on the analysis of three key factors, that affected the development of the Union of South Africa during the interwar era - the struggle for equality of Afrikaners with Britons, pre-apartheid legislation and a political rivalry of Boer Generals Jan Smuts and James Hertzog. This thesis aims on answering the question, whether the interwar policy of the Union was more affected by the matter of race segregation or by attempts to secure adequate political equality of the Afrikaners. The thesis is dividend to three main chapters, in which the author analyzes all the phenomenon. The nature of so called Afrikanerdom and the interwar political situation are being described, as well as the development of the non-white community in the Union and its attempts of political emancipation. Racial legislation is also explained closely. This thesis focuses on proper explanation of serious social problem of the selected era - the problem of poor whites and describes the way, the South African government tried to deal with it. Key Words Union of South Africa, Jan C. Smuts, James B. M. Hertzog, Afrikanerdom, Interwar Policy