interesting. The Japanese planning how to get more territory, but to that they are ultra-nationalist, even understands that if they fight against all the powers at the same time they lose.
 
Birth of a Nation
Panama City
Casa del Istmo, Harvey Hotel Chain
June 16 1937


Even as fighting between American troops and Colombian militia were on going, the United States and leaders of the opposition of President Reyes of Colombia were meeting here in this hotel. The Casa del Istmo was the nicest hotels within the Panama Isthmus and as such it was only fitting that this meeting would be held here. Secretary of State Gray Underwood was currently here as the senior official of the United States Government. The other member nations of the American Alliance Treaty Organization also had members of their governments here as well. They didn’t have anyone as senior as Secretary Underwood as they were far smaller nations than the United States but still they all had important people within their government here in Panama City for this event.


The American Alliance Treaty Organization[1], or AATO for short, was the American led alliance of a few different alliance blocks around the world at the moment. Like the name implied this alliance was in the Americans only, well the main member did have holdings in Europe, the Pacific, and China, but well over of 95% of the alliance’s territory was in the Americas. Notably North and Central America and the Caribbean. The AATO was primary formed to try and check the growth of the Com Block as it was know and meant as a warning to the assholes who run Mexico City. Yet the AATO hadn’t been able to expand into South America for a number of reasons. Even without that the AATO was still a powerful force, well mainly because who led it.


When the US had decided to invade Colombia at first it was about getting rid of Reyes and form a government that could possible stand up to the Communist. Well the US had other goals in its invasion of Colombia mainly regarding the canal, but what was to be the stated goal was to be stop the Communist from overtaking all of Colombia. Yet the sudden start of a crisis between China and Japan had caused President Olsen to pull back on this. As it was all too clear that Japan was on the war path in China as the demands handed to the Central Government in China was clearly designed to give the Japanese a reason to go to war. So the idea of throwing the Communist back in Colombia was scaled way back.


It was also the reason there was a seventh flag here in Panama City that wasn’t the Colombian Flag. The flag itself was clearly a new flag that had never been flown before today. It was loosely based off the flag of the United States but with a different color set and stars being replaced by two half circles with a link between them. It was a flag for the nation that was being born in this hotel. The Republic of Panama was the new nation being created with the signing of this treaty. Based on the lessons from Rio Grande, Quebec, and the Maritime Federation, the treaty being signed here was of the same pattern but with lessons learned as well. The other AATO nations were here to sign their own treaties with the newly created republic, primary to create diplomatic and economic relations with the new nation.


Yet it was the United States-Panama Treaty that was being signed first. The US was the most important nation in the room and as such it when first. It created diplomatic relations between the two nations. Yet the southern border was currently undefined as they weren’t sure where the fighting would stop. The generals were debating where the best natural defensible border was or how far they could push before Washington tugged on their leashes. There were economic issues covered in the treaty as well. However, the big point for the United States was that of the Canal itself. The Panama Canal was the pride and joy of the United States and they wanted to make sure that they never lost control of it nor had a hostile power next to it.


As such the US had decided to annex the canal zone as per the terms of this new treaty they were signing with the new Republic of Panama. This included expanding the zone for a third set of locks[2] that the US were designing at the moment to take into account the rapid growth of naval vessels. Further the US annexed the Pearl Islands under the terms of this treaty to use them as fairly big military base to help with the defense of the canal. It gave the US the rights to base its military units in Panama itself along with setting up the understanding the US would defend Panama from Colombia and any other hostile nations. For this the US would help economically in the poor nation of Panama. With Reyes and his fools running Colombia money earmarked to building up the nation had a bad habit of going missing and into the Swiss bank accounts of Reyes and his ilk. This has caused Panama and other areas of Colombia to stay suck in the depression of 28. The US understood they needed to give the people in Panama where the final borders might be a reason to support democracy and not communist. As such they were given a large aid package to Panama to help build up the nation.


[1] The AATO is led by the United States as that when without saying. Other member nations include Quebec, the Maritime Federation, Rio Grande, Dominican Republic, Guatemala, and Nicaragua. The latter three joined of their own free will for their own reasons. The former through well they were all created as US puppets.

[2] I’m not sure on the size of this third set of locks yet, but I want it to be big enough that the USN doesn’t have to think about this for at least half of a century.
 
Wow nothing on the US breaking off Panama and annexing the Canal or the US beating the shit out of two British "diplomats"? Wow.

Smitty rereading this I realized something. You never posted the second half of the Jamaica pass naval battle.
The battle ended in American victory and a British BC being sunk along with a few other lesser ships being sunk on both sides.
 
Wow nothing on the US breaking off Panama and annexing the Canal or the US beating the shit out of two British "diplomats"? Wow.


The battle ended in American victory and a British BC being sunk along with a few other lesser ships being sunk on both sides.
I'm generally more of a quiet reader who usually just gives a like. As for the beating, I guess tic for tac and all that. Also the whole Panama thing was expected. I sorta figured something would save Communist Colombia and the US trying to salvage what it could from the situation. Also what countries now are communist?
 
I'm generally more of a quiet reader who usually just gives a like. As for the beating, I guess tic for tac and all that. Also the whole Panama thing was expected. I sorta figured something would save Communist Colombia and the US trying to salvage what it could from the situation. Also what countries now are communist?
The USSR, Spain, Portugal, Peru, and Colombia. Through that last one isn't totally under communist control its only a matter of time.
 
Wow nothing on the US breaking off Panama and annexing the Canal or the US beating the shit out of two British "diplomats"?
Honestly the US breaking off Panama is one of those things where what can the rest of the world really do about it? At this point the Caribbean and the Mexican gulf is a US lake in all but name and nobody has facility's that close that could supply enough vessels that could seriously threaten US naval supremacy. Annoy it like a fly buzzing a horse yes but not actually hurt it. The only real direct threat to the US at this point is if all of South America united behind a Communist regime into a Superstate.


The battle ended in American victory and a British BC being sunk along with a few other lesser ships being sunk on both sides.
Thanks.
 

Cryostorm

Donor
I am honestly more surprised the US didn't wait to be attacked by the Communists and directly annex Panama in a counter attack.
 
Well the USA is not going to allow the canal to be controlled by communists, so doing this is a logical move. While many countries may not be thrilled by this, a lot of countries with significant maritime interests would rather see the USA create Panama (like OTL) compared to having it controlled by a communist country. So I expect behind closed doors there are many governments who are happy with this. As far as all of South America going communist, this is unlikely and given the economies of South America I doubt very much they will improve economically under communism. At this point in time the ITTL the USSR can't give a lot of economic propping up, and if there are several countries it spreads pretty thin.
 
Oil
Near Ballingarry, Ireland, British Empire
Plant No 1
July 2 1937


This was the first major plant of its kind to go fully operational within the British Home Islands. The importance of this plant was such the CEP leadership in London deployed the whole regiment of the Domestic Construction Service to building this plant. This was after building test plants in Scotland during the early 1930s to work the bugs out of the system so when they when full scale with it they wouldn’t be having major issues with the process. They built the plant near the primary feed stock which was coal to ease on the logistics of getting coal to the plant. But what the plant did with that coal was what the CEP decided worth the use of a whole regiment of the DCS to build this plant, oil.


One of the hard lessons from the loss in the Great War was the fact the Royal Navy was becoming depended on a resource that couldn’t be found in the British Home Islands. Namely that of oil. When the United States embargoed oil against the British Empire and her allies the British couldn’t import enough oil to maintain the levels they needed to keep their war machine fueled. And once the US entered the war their merchant raiders seemed to target tankers more than other ships which hurt the British war efforts. By the time the British asked for a cease fire they had enough oil in the Home Islands for five weeks’ worth of oil left before the tap when dry.


What the British did have a lot of through was coal. It was coal that kept the British economy from crashing in the wake of their defeat in the Great War as the oil was still hard to come by in the weeks after the cease fire. But there wasn’t a way to get oil from coal at the time. Yet their foes in Germany had suffered from the same weak link in their supply chain, lack of domestic oil. True the oil fields at Ploiesti did help but it still wasn’t enough to feed the German need for the stuff. Late in the war the Germans started operating a plant much like Plant No 1 here. It took coal and made oil out of it. But the German plant wasn’t financially not viable and ineffective and was shut down by 1921. Yet the British got their hands on the technology that allow this to work and started putting a major effort behind it.


Even with oil returning from the United States once the Treaty of New York was signed together with oil from Persia the British didn’t want to be put into that position again. Even as oil was found in the Dutch East Indies and the Ottoman Empire the British kept pushing on their synthetic fuel program. By the early 1930s they built a number of small test plants that were able to make 200 barrels of oil a day in Scotland. After those test plants were working right they decided to build Plant No 1 here in Ireland. At full tilt, the plant would be able to make 3,500 barrels of oil a day.


It was out of range of French bombers from Europe and American bombers out of Iceland. True the K IX German heavies could reach Ballingarry from bases in France. Yet the British in designing Plant No 1 had taken that in to account. A new air defense zone was formed in Southern Ireland with the simple task of defending Plant No 1. They had taken duel-purpose 5.25/50 naval guns together with their turrets and placed four of them around the plant to help defended it. This was mated with the more common and lighter anti-aircraft artillery that was normally used by the army. This was put together with three squadrons of fighter aircraft added to defend the area. British were hell bent never to be in the same position they had found themselves in World War One.


As this was the plant’s opening, a number of important people were here for the event. But very few foreign guests were present for the opening of Plant No 1. Even the Japanese one of the closest British allies weren’t present for the opening of Plant No 1. The foreign nationals were from either South Africa or the Imperial Federation who wanted to see Plant No 1 for themselves. They both faced the same short falls in domestic oil production as the British and they wanted to see how the plant would perform. Yet even for all the advances made by the British the oil made at Plant No 1 was still running about a pound more than what could be imported from foreign sources. Yet the British like many across the world saw it was not a question of if but a question of when the next war would start.
 
Out the Door 37
Somewhere over Arabia
TG 5
July 14 1937


The Germans after taking control of Bismarckshaven have started unloading heavy equipment for their planned assault against Riyadh. Since Bismarckshaven was underbuilt port when the Germans took control of it and this had created issues of getting their equipment on shore. It was why it was only now in the heat of summer that the Germans were launching their punitive expedition against the Sauds. Heat casualties were something that was becoming a problem for the Germans as the heat was excessive with temps running as high as 45C which was far higher than many German units were used to operating in. This had forced the German high command to issue more water canteen to their troops with orders to drink 3 liter of water. It was helping but still the heat was causing issues.


Even with the issues of heat the Germans weren’t going to wait for cooler weather in the winter months. The Japanese have invaded China in what could only been called a plan to conquer all of China with the scale of what they were doing. Germany had long to build up China and expand their colonial holdings there. Yet in the aftermath of the Great War and the with the Central Government in China being basically there for show only the Germans have not pushed forward with their plans to make at least a part of China their India or Indochina. True they have built up the holdings in China. But the idea of Japan running wild and annexing massive chunks of China was against the long term German interest in their two sphere of influences in China. They needed to end their issues with the Sauds quickly so they could reinforced their holdings in China as a message to the Japanese to back off.


They knew they couldn’t depend on the United States to do this. They knew the US was too busy in Central and South America at the moment to deal with Japan. Even through Germany publicly couldn’t be pleased with what the US did in Panama, but that was for their public. Privately many in Germany was pleased with what the US did in Panama as it was better to that than allow the canal zone to come to be surrounded by yet another communist nation. That said they knew the US would be busy for a while in that part of the world and couldn’t focus on China nor stopping the Japanese. So the Germans were hoping to end this quickly so they can send the message to Japan.


It was why the T XXs[1] were flying in formation over Arabia today. They were carrying the soldiers of the 7th Fallschirmjäger Regiment. The Germans were one of the pioneers of airborne warfare and they wanted to use their punitive expedition against the Sauds to test some of their ideas on the subject. It was also why the T XXs were being used instead of the newer German transports that were entering service. Even through the 7th Fallschirmjäger was testing out a number of new infantry weapons in their operation today it was decided to use the T XX as there were more than enough to send them to the newest part of the German Empire.


As the triple engine transports started to reach the outskirts of Riyadh the forces of Saud started to open fire with their mix bag of anti-aircraft weapons. The Saud Air Force was something that had been pushed into the history books since the opening days of the punitive expedition. Yet they still had a wild mix of different anti-aircraft weapons. They had managed to bring down a total of three aircraft since April with seven more being damaged. Only two of those aircraft had been written off as beyond economic repair. Yet the Sauds know knew this was something different than the bomber raids they have been dealing with since the start of the German efforts to take control of Arabia.


In aircraft after aircraft in this formation jumpmasters were screaming at the top of their lungs for the paratroopers of the regiment to hook up to the line that would pull their parachutes open as they exited the aircraft. Then the lights when green and it was telling the jumpmasters they were in their jump zones. They started to jump out of the aircraft and perform the first airborne assault in history.


[1] Ju 52s
 
So airborne operations got introduced a good bit earlier ITTL. Who pioneered this new development ITTL?
Depends on who you ask ITL. The Germans, Italians, French, and Soviets all claimed they pioneered this but they were all working on the same idea and started testing it all around the same time.
 
Gas, 1937
American Concession of Shanghai
Checkpoint Baker
August 1 1937


The American Concession of Shanghai was one of three American Concessions within China. They were fairly small with the biggest being here in Shanghai which was 250 hectare in size. Just under a square mile in size, however it was the hub of American actively in this part of China. Like the Concessions as Canton and Tientsin this concession had been in American Control since the end of the Boxer War. Neither the Japanese nor British wanted to bring the Chinese into war and as such had left the foreign concessions in Canton, Shanghai, and Tientsin alone. When put up to the “Chinese” parts of Shanghai the American Concession of Shanghai was a modern town. The rest of Shanghai indeed the rest of China was suffering from over 30 years of civil war that had been being waged since basically the end of the Boxer War.


Before the Japanese invasion of Shanghai, control of the city was not a simple matter. Unlike the countryside, where warlords could control vast tracks of land Shanghai was a different story. It was a major trade port with the rest of the world and major import center of weapons. As such whoever controlled Shanghai could weld vast power, but the warlords couldn’t attack Shanghai for fear of the west or even the Japanese attacking because some of their citizens had been killed. This left Shanghai under the control of three different major street gangs and a number of minor ones. All three major gangs were buying for the total control of Shanghai but none were ever close to it. But the street gangs operated with an understanding with the western/Japanese nations before the invasion by the Japanese, Westerns and Japanese citizens were off limits. There were a few cases were westerns or Japanese had the bad luck of being in the wrong place at the wrong time or just some punk who thought the rules didn’t apply to them. It always ended with the gang leader personally handing over those who had broken the agreement with a large amount of silver or gems to be handed over to the family of the wrong western or Japanese person.


Even with the agreement, the US like the others didn’t leave their concessions in China unguarded. The US maintained a company of Marines at Shanghai to guard it. The company of Marines was attached to the 4th Marine Regiment which was based out of Franklin[1]. They were a reinforced company that was far more heavily armed than what most units of this size would be in the American military system. However what happened in the Boxer War no one was taking any chances again with the Chinese. For the Marines through a posting to the 4th Marines was a highly sought after posting. This was because it allowed for a number of possibly to happen that couldn’t happen with other postings. Marriage was a common one as American Marines found something about Chinese women they couldn’t resist. And with American being fairly racially equal now it was easier to get their new wives home.


Yet things had changed in Shanghai, indeed all of China. Shanghai was one of the focus points of the Japanese invasion. The Japanese were breaking out of their cities on the Shandong Peninsula and crashing down from Manchuria. As the Japanese had attacked Shanghai the different street gangs had put aside their differences aside to fight back against the Japanese. This made things somewhat better for the Chinese as they fought back, but the Japanese own the sea and the air. The Japanese also had heavy artillery with the street gangs only had a few mortars and grenade launchers that all dated back to the Great War era. Yet the Chinese were fighting hard for every yard they had to yield to the Japanese. Even some warlord units had filler in to fight against the Japanese and they brought some better gear to play with. But the Japanese still held all the cards but the Chinese were making sure the Japanese paid for every yard they took.


In the distance the sounds of artillery could be heard. Judging from the sounds it was a Japanese artillery barrage incoming. Yet there was no blast from when the shell landed. This caused the Marines manning Checkpoint Baker to check their gasmasks. The sergeant who was in charge of the checkpoint picked up the field phone they were now using since the Japanese invaded. He turned the crank to power it and let his command know there was a call incoming. It was a second before the line came to life. “Point Hawk wait one for Hawk Actual.”


The voice changed, “Hawk Actual here.”


“Checkpoint Baker, Hawk Actual, possible Japanese Gas Attack is underway.”


“Confirm last Checkpoint Baker.”


“Wilco. Possible Japanese Gas Attack is underway.”


“Wilco, stand by for further orders.” Moments later an air raid siren started to ring throughout the concession. Since the start of the Japanese all Americans citizens had been issued gas mask. There were many who were worried about the possibly of widespread Japanese chemical attacks. This had led the US officals in China to issue all Americans gas mask and hoped to god the Japanese didn’t break out something like Mustard Gas which needed more than a gas mask to defeat it.


Sure, enough a gas cloud was forming to their east. One of the major lessons from the Great War chemical weapons worked against troops that didn’t have any defensives against them. The Japanese were over the insane fighting of the Chinese defending Shanghai. They were going to gas those bastards and gas them hard.


[1] Its what the US calls their Treaty Port.
 
This will raise up a shitstorm. I expect the Marines won't be too discommoded by the gas,even if mustard simply rolling down sleeves and wearing a rubberized poncho will with the mask avoid significant casualties. Phosgene will be fine with just the mask, and Lewisite also needs skin coverage. The Marines know all this and, like I said, will be inconvenienced at worst. Civilians, on the other hand, will have problems. A fair number of them will screw up using the masks, and some will get claustrophobic and take them off in a panic attack. A good number of civilians will be wearing light clothing, short sleeves, etc as August in Shanghai is hot. Children are at particular risk. If there are US civilian casualties from gas leaking over the border, the US government will be unhappy.

The Japanese commander who decided to use gas and caused a diplomatic uproar or worse with the USA in spite of Japan trying to sneak this in while the USA was occupied may have to make the most sincere apology to the Emperor in a most final way.
 
This will raise up a shitstorm...
The Japanese commander who decided to use gas and caused a diplomatic uproar or worse with the USA in spite of Japan trying to sneak this in while the USA was occupied may have to make the most sincere apology to the Emperor in a most final way.
Even with a strong IJA shadow junta, this is the sort of thing that "volunteers" the responsible commander for garrison duty at a dull, remote outpost.
 
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