The World of 1939: Unlike Our Time Line World War I had ended in a peace agreement between the Allied Powers and the Central Powers. It was a Peace Treaty that left France unhappy as it had failed to recover the lost Territories. Belgium had been restored ans an independent Nation and several new Nations had been added to the List of European Nations. The Kingdom of Poland had been created and the Baltic Nations of Latvia and Lithuania
had been joined in a German created Grand Dutch of Cortland. The Ukraine had also been granted Independence but it had not remained independent for too long due to problems in Austria-Hungary and Germany.
The Russian Civil War had lasted from 1918-1922. The Reds had recovered a lot of the lands that had declared independence but even so it would be some time before the Soviet state would be able to challenge the powers.
Sweden had recovered some of the Territories that it had lost to Czarist Russia since the Great Northern War. This had made the Finns and the Estonians happy but it had left the Swedish Government with a knowledge that as soon as the Soviets got their act together they would attempt to regain these lost land and spread the revolution to the west.
Sweden's relationship with France and Great Britain remained strained for a lot of the 1920s but slowly the relationship with Great Britain was repaired. Italy was also a nation that had strained relationship with the Swedes due to its loss of the First World War. However, It was a Fascist Italy that moved to restore good relations. The Italian Hatred of Communism was more than their gripe about the first World War.
Sweden also had improved its relations with its fellow Scandinavian nations. Denmark and Norway's Monarchs served as Godparents for the Swedish Crown Prince.
Still it was Sweden's relationship with Germany and the New Austro-Hungarian Empire that caused talk.