OOC: When I saw two German States, I thought at first this was the German Reunification in 1990, which France was not a fan of.
IC: Look, its important to understand how France works as a country. They are a nation of butt kickers--the nation of Joan of Arc, Napoleon, Petain and Bilotte. I don't think it makes sense to assume Leon Blum, himself a JEW, is going to allow a nation dedicated to KILLING ALL JEWS to get anywhere.
There is simply no way that France will wimp out and allow Germany to get away with its crap. France might decide to at least listen to the UK instead of deciding that Germany needed to get kicked, but Hitler wasn't going to stop at Austria.
I think it was clearly obvious that his next victim would have been Yugoslavia. Given the Croatian Uprising in 1944 that allowed Italy to grab choice portions of the country, I think Hitler would probably have expanded his deal with Italy to take what is now Slovenia and partition Yugoslavia with Hungary, Bulgaria and Italy.
So, given that Hitler continues at his reckless pace, He'll act in about Fall 1938. The Yugoslavs are in no real position to resist, but they are emboldened to try when France urges them to "F*** them all."
France and Poland then Double Team Germany, while a wussy Neville Chamberlain responds by pulling out of his alliance with France, much like he did at Austria. It would lead to a similar outcome--France, not the UK, Emerging as the world's policeman.
This is why, to this day, France continues to have territories around the world. Asking the French People--widely considered since the First World War to be the best fighters in the entire world--to wuss out in this period of time is UNTHINKABLE.
(OOC: This is probably a FrancoWank Scenario)