WI/AHC: A more northern Lithuania

In 1919, the President of the recently founded Republic of Lithuania, Antanas Smetona, supposedly stated this (and I paraphrase, because I lost the original article where I found this claim):

"The Latvian nation is not mature enough to create a nation-state [...] and as such, it would be best for both Lithuania and the Latvians if Lithuania was given control of Liepaja, Daugavpils and Jelgava and their surroundings, to protect it from falling under enemy hands"

Regardless of whether or not Smetona ever officially said that, this was an idea surprisingly popular among the Lithuanian establishment. The line of thought was that since Latvia did not have a glorious history and glorious former existence, unlike Lithuania, they did not have a national identity and thus a Latvian nation-state could not possibly exist - and, as a result, it would be best if Lithuania, as the nation closest to the Latvians in language and culture, took control of Latvian-inhabited territories to protect them from German and Russian influence.

And as a result, Lithuanian-Latvian relations were at best lukewarm throughout all of the Interwar period - the 1923 border treaties left Latvians disappointed, Latvia supported Poland in the Vilnius conflict and the Baltic Entente collapsed. Pan-Baltic friendship only arose during the Soviet era, where all three of the nation's found themselves in the same boat.

Of course, this idea was dumb from the start - firstly because Latvia was actually the more developed of the two, it had one of the most important cities of the Russian Empire within it, while Lithuania was an agricultural periphery. But still - is it possible, starting with an earliest POD of 1900, to have Lithuania control if not all, then most of Latvia, and what impact would that have?
 
Lithuanian attempt to take Latvia by force during interbellum would be suicide. Perhaps if Lithuania turns fascist and ally with Third Reich when Latvia is still annexed by USSR Lithuania could take Latvian lands after Barbarossa (if Germans allowed). Latvians should be really enthusiastic about switching Soviet rule for Lithuanian rule. But such state won't last past ww2.
 
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