What are the European reactions to the War in China? Are any of them nervous that the Japanese are getting better training and logistics or is racism blinding them?
Just like OTL racism is blinding most of them. While they managed to beat the Soviets during the border fights, the small nation of Finland (with a little Axis Central Powers help) is doing the same right now. The state of the Russian army after the purge and overall is not looking so good (leading Germany and A-H to believe that beating them will be a peace of cake like Germany did OTL too). Then again these crazy Chinese, Japanese and Co-Prosperity Sphere ideologists and supporters are defacto inventing new ethnics and states while splitting up China and having a hard time moving forward against the United Front and regional rebels, so they don't look as superior and great as a army themselves right now, leading to the Colonial Powers underestimating Japan and the Co-Prosperity Sphere just like OTL.

We will dig more into the Japanese-US-European Colonial Powers Relations soon in the next chapters.
 
Still, for the Brits and French, worries are going to be in that order
1 ) Germany (and her allies in Europe), their enemy from last war and an existential threat to their homelands
2 ) Soviet Union, which is a juggernaut, a potential threat on British colonies and interests in India and Middle East + Communist
3 ) And in last position Japan.

Even if Japan does something incredibly stupid (possible but not that likely ITTL) and attacks Britain and France first, they will likely treat this as a secundary matter (in practice : leaving their forces concentrated in Europe), ensuring that India and Australia aren't seriously threatened. They won't concentrate on a war against Japan too much... it would create an opening for the CP.
 
Chapter 36: Winston Churchill's and Americas Politic's
Chapter 36: Winston Churchill's and Americas Politic's:
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The rising tensions between the Allies/New Entente (France and Great Britain) and the Central Axis Powers thanks to Operation: Kaiserwetter (the Scandinavian Intervention) as well as the ongoing Winter War between Finland and the Soviet Union proved to be difficult for the British Premier Winston Churchill. Shortly after the Scandinavian Intervention, Churchill had ordered the Royal Navy to occupy Iceland, the Faroe Islands and Greenland (all in Union with Denmark), to eliminate the possibility of Axis Central Power Air and Naval bases in these Danish territories after the German Pact with Denmark. The time for appeasement was finally over, but outright direct fight against the Germans in Europe was impossible. England lacked the soldiers as long as it had to keep a watchful eye on it's colonies were independence movements, the Soviets and Japan were a serious threat and the French had prepared on a defensive war with not much options for a own offensive left in their hands by now. Because of that the British Premier called for a guarantee of the boarders and independence of the Netherlands, Belgium and Luxembourg, soon joined by his french counterpart that any German attempt to redraw this borders or try to negotiate with a threat of violence would be answered justified to this aggression by Britain and France. It was a clear red line to not go a step further in Western Europe. At the same time both countries did not wish to openly engage Hitler or Stalin as both countries seamed to go to war over the German declaration to protect Finland's, the Baltic's and Poland's independence. Many politicians in England and Frances hoped to watch as amused bystanders how the two treats to peace and stability in Europe would weaken each other in a escalating war. This would leave the Allies/ New Entente the option to side with one of this powers against the other should one of them seam to win and attempt to establish it's hegemony over Europe. At the same time Singapur, Hong Kong and Darwin were fortified and the garrisons, airplanes and ship's there extender as a clear sign of strength against Japan. The former Burma Road closed by now thanks to Yikoku now being a part of the Co-Prosperity Sphere, was tried to be rebuild over the Himalaya and Tibet to continue supply for Chiang's United Chinese Front in hopes to stop Japans dominance and ambitions in China together with America. The French meanwhile brought troops from Africa to France and Indochina to help them out in their potential war against Germany/Italy and to fight the communist Việt Minh that seamed to be a spillover of the Chinese Communist that had fled from China to Indochina and allied with regional Communists.
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At the same time not only the German Empire, the Soviet Union and the Japanese Empire (and rest of the the Co-Prosperity Sphere) endangered the peace in Europe and the world, but also the reunited Austria-Hungary and the Italian Empire. Austria-Hungary (with their ally Bulgaria) and Italy took a quiet aggressive stand against Yugoslavia and Romania, threatening their sovereignty and independence. This lead to a guarantee of Romanian and Yugoslavian independence by Britain and France to guard the remaining independence of these Balkan nations. Without Romanian oil (and with Britain stopping the supply of oil from elsewhere) the German, Austrian-Hungarian and maybe even the Italian ambitions, even if they had some oil in their colony Libya would soon be shattered. Churchill knew that as long as Romania could be secured or the oil fields there bombed and destroyed by the Royal Air Force this new Axis Central Power aggression would soon see themselves without any supply for their fighters, bombers and tanks. Because of this reality the British under Churchill despite their losses in Skandinavia had prepared a new Expedition Army ready to be send on the continent to either support France on Romania and Yugoslavia depending on where they would be needed against the Central Axis Powers. At the same time the tensions between the USA and Japan were rising, leading to a trade Embargo effecting all parties involved in the Chinese Civil War. But because the American government needed to directly take action for this embargo to take place most trade was left alone and more regulated on a moral base. This lead to a boycott for mostly Japan and sometimes other members of the Co-Prosperity Sphere since many Americans supported a policy of a open door in China and still supported Chiang, even if he sided with the Communists. Clearly this was not how Japan and the Co-Prosperity Sphere saw the embargo, they saw it as a direct violation of their plans to secure peace in China. Many pan-Asians inside the Co-Prosperity Sphere questioned why the USA claimed the Carribiean (and all of North- and South America) as their very own backyard, but denied Japan and the Co-Prosperity Sphere the same right in China and East Asia.
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Chapter 37: Schlieffen 2.0
Chapter 37: Schlieffen 2.0
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With the Operation: Kaiserwetter in Scandinavia and Winston Churchill's stubborn regret to allow any further claims and votes over European and Colonial territory, Wilhelm II, Otto, Hitler and Mussolini realized that the only way their ambitions could bare fruits was a direct war. Because of that the German High Command had agreed to deal with France before finally turning east against Russia. The Operation itself was called Schlieffen 2.0 a variation of the Schlieffen Plan from the Great War. With the support of the Panzerwaffe (Tanks) an their new Air Force the Germans hoped that this time they would succeed thanks to a faster assault. To outflank the Allied Entente, the Axis Central Powers decided to go trough the Low Countries, the neutral states of Luxembourg, Netherlands and Belgium.

The Battle of the Netherlands (Dutch: Slag om Nederland) was a military campaign part of Case Schlieffen 2.0, the German invasion of the Low Countries (Belgium, Luxembourg and the Netherlands) and France during the Second Great War. The battle lasted from 10 May 1940 until the surrender of the main Dutch forces 14 May. Dutch troops in the province of Zeeland continued to resist the Imperial German Army until 17 May when Germany completed its occupation of the whole nation. The Battle of the Netherlands saw some of the earliest mass paratroop drops, to occupy tactical points and assist the advance of ground troops. The German Imperial Air Force used paratroopers in the capture of several airfields in the vicinity of Rotterdam and The Hague, helping to quickly overrun the nation and immobilize Dutch forces. After the devastating bombing of Rotterdam by the German Air Force, the Germans threatened to bomb other Dutch cities if the Dutch forces refused to surrender. The Dutch General Staff knew it could not stop the bombers and ordered the Dutch army to cease hostilities. The Dutch Queen retreated to Britain to form a government-in-exile, much to Wilhelm II anger who wished to form a monarchist Axis Central Power's block in Europe.

The Battle of Belgium or Belgian Campaign, often referred to within Belgium as the 18 Days' Campaign (French: Campagne des 18 jours, Dutch: Achttiendaagse Veldtocht), formed part of the greater Battle of France, an offensive campaign by the German Empire during the Second Great War. It took place over 18 days in May 1940 and ended with the German occupation of Belgium following the surrender of the Belgian Army. On 10 May 1940, Germany invaded Luxembourg, the Netherlands, and Belgium under the operational plan Schlieffen 2.0. The Allied armies attempted to halt the German Imperial Army in Belgium like during the First Great War, believing it to be the main German thrust. After the French had fully committed the best of the Allied armies to Belgium between 10 and 12 May, the Germans enacted the second phase of their operation, a breakthrough, or sickle cut, through the Ardennes and advanced toward the English Channal. The German Imperial Army) reached the Channel after five days, encircling the Allied armies. The Germans gradually reduced the pocket of Allied forces, forcing them back to the sea. The Belgian Army surrendered on 28 May 1940, ending the battle. The Battle of Belgium included the first tank battle of the war, the Battle of Hannut. It was the largest tank battle in history at the time but was later surpassed by the battles of the North African Campaign and the Eastern Front. The battle also included the Battle of Fort Eben-Emael, the first strategic airborne operation using paratroopers ever attempted. The German official history stated that in the 18 days of bitter fighting, the Belgian Army were tough opponents, and spoke of the "extraordinary bravery" of its soldiers. The Belgian collapse forced the Allied withdrawal from continental Europe. The British Royal Navy tried the evacuation of Belgian ports during Operation Dynamo, allowing the British Expeditionary Force (BEF), along with many Belgian and French soldiers, to escape capture and continue military operations. France reached its own armistice with Germany in June 1940.
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The Battle of France, also known as the Fall of France, was the German invasion of France and the Low Countries during the Second Great War. In six weeks from 10 May 1940, German forces defeated Allied forces by mobile operations and conquered France, Belgium, Luxembourg and the Netherlands, bringing land operations on the Western Front to an for now. Italy entered the war on 10 June 1940 and attempted an invasion of France to claim territory in southern France, Tunisia and Algeria. The German plan for the invasion consisted of two main operations. In Fall Karl (Case Karl), German armored units pushed through the Ardennes and then along the Somme valley, cutting off and surrounding the Allied units that had advanced into Belgium, to meet the expected German invasion. When British, Belgian and French forces were pushed back to the sea by the mobile and well-organised German operation, the British tried to evacuated the British Expeditionary Force (BEF) and several French divisions from Dunkirk in Operation Dynamo. The fast German advance was a success, despite heavy German losses and up to 300,000 allied troops awaiting their evacuation were captures as prisoners of war in Dunkirk.

After the withdrawal of the BEF, the German forces began Fall Fridrich (Case Fredrick) on 5 June. The sixty remaining French divisions made a determined resistance but were unable to overcome the German air superiority and armored mobility. German tanks outflanked the Maginot Line and pushed deep into France. German forces occupied Paris unopposed on 14 June after a chaotic period of flight of the French government that led to a collapse of the French army. German commanders met with French officials on 18 June with the goal of forcing the new French government to accept an armistice that amounted to surrender. On 22 June, the Second Armistice at Compiègne was signed by France and Germany, which resulted in a division of France. The new, now neutral Paris government led by Marshal Philippe Pétain superseded the Third Republic and formed a government of french Fascists, Monarchists and Nationalist. Germany occupied the north and west of France. Italy took control of a small occupation zone in the south-east, together with Corsica and claimed Tunisia. Franco's Nationalist Spain claimed French Morocco to combine their African colonial territory. While Hitler outright annexed Alsace-Lorrain (Elsaß-Lothringen) and Luxembourg into Germany he calmed down Mussolini's and Franco's ambitions. While Hitler himself could not care less about the French Colonies, because he outright planned to annex most of them alongside the Belgian Congo for the German Mittelafrika colonial plans, he assumed that the new French Government would be more willing to directly join the Axis Colonial Powers if it could remain mostly territorial intact in Europe and Northern Africa. At the same time France's fall (the greatest fear during the First Great War) and the disaster of Dunkirk lead nearly to the end of Winston Churchill as the British Premier Minster. Luckily the Belgian and Dutch Colonies continued to fight alongside the Allied Forces/New Entente. Great Britain would never give up:
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Well, it seems Germany and the Kaiser have learned nothing...

I can see Japan buying (legitimately) Indochina from France (maybe with German pressure), to complete their Sphere. The Anglos can hardly start an embargo over Japan buying legally a territory, it would not fly in their public opinions (especially as Japan acted much subtler and less bloody than OTL in China).
Likewise, they can bring Siam as a member of the Sphere (if not done already).

Then, if Indochina is under their control, they can move (quietly and legally) as much as the IJN as they want there (hugging the coasts), if they want to invade the DEI and British Malaya. Then, they don't really have to fear the US cutting their lines from the Filipinos... since they would be able to supply their forces directly from Indochina and Siam.

Which, in turn, means that they can invade British and Dutch colonies (still a bad idea though) without attacking the USA first. Not to mention that any US embargo will cripple Japan much less (with most of Chinese ressources at their disposal, and possibly soon resources of Indochina and Siam, and maybe even the DEI and Malaya).

If Japan goes south, either
1 ) USA does nothing (or embargo but no more, hard for Japan but not crippling)
2 ) USA declares war (unlikely but possible). Then, Japan can probably give a few bloody noses to the USA and negociate an honorable peace. The US public opinion would not like their country declaring war first, and then sending millions to die just to protect European colonies, especially as Japan is less unpopular and much stronger than OTL.

For that matter, if Japan enters war on Britain, they will likely take the DEI, Malaya, Singapore and Burma in a few months (with Britain focusing on Europe). Like OTL or faster. Then, Britain may be ready to negociate a peace (instead of having Japan threatening Australia and India directly).

So, except if they do Pearl Harbor again, Japan is almost sure to survive as a great power and win (to some extent).

Oh and about French colonies. The Central Powers can take colonies without alienating France too much, especially if the peace is "you give us colonies, we stop occupying France proper except the coast". But don't touch Algeria (integral part of France, from French POV at the time).
 
Chapter 38: The Co-Prosperity Sphere liberates Indochina
Chapter 38: The Co-Prosperity Sphere liberates Indochina:
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In 1940, France was swiftly defeated by the German Empire, and colonial administration of French Indochina (modern-day Vietnam, Laos and Cambodia) passed to the pro-German French monarchist-fascist government. Later that year, the Vichy government ceded control of Hanoi and Saigon to Japan and control of Saigon and in 1941, Japan extended its control over the whole of French Indochina. The United States, concerned by this expansion, put embargoes on exports of steel and oil to Japan. The desire to escape these embargoes and become resource self-sufficient ultimately led to Japan's decision to go to war against the colonial powers. Indochinese Communists later as a part of the Allied fighting against the Japanese and the Co-Prosperity Sphere , formed a nationalist resistance movement, the Dong Minh Hoi (DMH); this included Communists, but was not controlled by them. When this did not provide the desired intelligence data, they released Ho Chi Minh from jail, and he returned to lead an underground centered on the Communist Viet Minh. This mission was assisted by Western intelligence agencies, including the American Office of Strategic Services (OSS). Free French intelligence later also tried to affect developments in the fascist French-Japanese collaboration. Throughout East and Southeast Asia, tensions had been building between 1937 and 1941, as Japan and the Co-Prosperity Sphere expanded into China. Franklin D. Roosevelt regarded this as an infringement on U.S. interests in China. The U.S. had already accepted an apology and indemnity for the Japanese bombing of the USS Panay, a gunboat on the Yangtze River in China. In the year 1938 the French Popular Front fell, and the Indochinese Democratic Front went underground. When a new French government, still under the Third Republic, formed in August 1938, among its principal concerns were security of metropolitan France as well as its empire. Among its first acts was to name General Georges Catroux governor general of Indochina. He was the first military governor general since French civilian rule had begun in 1879, following the conquest starting in 1858, reflecting the single greatest concern of the new government: defense of the homeland and the defense of the empire. Catroux's immediate concern was with Japan and the Co-Prosperity Sphere , who were actively fighting in nearby China. In 1939 both the French and Indochinese Communist parties (because of heavy Soviet Union sponsoring and involvement) were outlawed, leading to fewer supplies for Chiang's United Front by the French while at the same time communist rebels started their guerrilla war in Indochina. They were secretly supported by the Japanese across the Nishimura Trail (named after Lieutenant General Takuma Nishimura the later leader of the Indochina Expeditionary Army).

After the defeat of France, with an armistice on June 22, 1940, roughly two-thirds of the country was put under direct German military control. The remaining part of France, and the French colonies, were under a nominally independent government, headed by the First World War hero, Marshal Philippe Pétain. Japan, not directly allied with the German Empire or the Axis Central Powers, asked for German help in stopping supplies going through Indochina to China.Catroux, who had first asked for British support, had no source of military assistance from outside France, stopped the trade to China to avoid further provoking the Japanese. A Japanese verification group, headed by Takuma Nishimura entered Indochina on June 25. These Indochina Expeditionary Army claimed to root out communist rebels that operated across the border from Indochina to attack the Co-Prosperity Sphere. On the same day that Nishimura arrived, Fascist France dismissed Catroux, for independent foreign contact. He was replaced by Vice AdmiralJean Decoux, who commanded the French naval forces in the Far East, and was based in Saigon. Decoux and Catroux were in general agreement about policy, and considered managing Nishimura the first priority. Decoux had additional worries. The senior British admiral in the area, on the way from Hong Kong to Singapore, visited Decoux and told him that he might be ordered to sink Decoux's flagship, with the implicit suggestion that Decoux could save his ships by taking them to Singapore, which appalled Decoux. While the British had not yet attacked French ships that would not go to the side of the Allies, that would happen at Mers-el-Kébir in North Africa within two weeks; Decoux did not arrive in Hanoi until July 20, while Catroux stalled Nishimura on basing negotiations, also asking for U.S. Help.

Reacting to the initial Japanese presence in Indochina, on July 5, the U.S. Congress passed the Export Control Act, banning the shipment of aircraft parts and key minerals and chemicals to Japan, which was followed three weeks later by restrictions on the shipment of petroleum products and scrap metal as well. Decoux, on August 30, managed to get an agreement between the French Ambassador in Tokyo and the Japanese Foreign Minister, promising to respect Indochinese integrity in return for cooperation against China. Nishimura, on September 20, gave Decoux an ultimatum: agree to the basing, or the 5th Division, known to be at the border, would enter. Japan entered Indochina on September 22, 1940. An agreement was signed, and promptly violated, in which Japan promised to station no more than 6,000 troops in Indochina, and never have more than 25,000 transiting the colony. Rights were given for three airfields, with all other Japanese forces forbidden to enter Indochina without Vichy consent. Immediately after the signing, a group of Japanese officers, in a form of insubordination not uncommon in the Japanese military, attacked the border post of Dong Dang, laid siege to Lam Son, which, four days later, surrendered. There had been 40 killed, but 1,096 troops had deserted. With the signing of the Tripartite Pact on September 27, 1940, creating the Axis Central Powers of Germany, Austria-Hungary, Fascist France and Italy, Decoux had new grounds for worry: the Germans could pressure the homeland to support their far-east ally, Japan. Japan apologized for the Lam Song incident on October 5. Decoux relieved the senior commanders he believed should have anticipated the attack, but also gave orders to hunt down the Lam Song deserters, as well as Viet Minh who had expanded their operations in Indochina while the French seemed preoccupied with Japan. The fight against the Viet Minh was the official motivation for Co-Prosperity Sphere troops in Indochina. Through the next months, the French colonial government had largely stayed in place, as the Fashist French government was on reasonably friendly terms with Japan. Still they denied any further influence and control for the Japanese and even declined their offer to buy Indochina. But with the Indochina nationalist rebellions in 1940 this all changed.
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The Japanese invasion of French Indochina (仏印進駐 Futsu-in shinchū) itself was a short undeclared military confrontation between the Empire of Japan and Fascist France in northern Indochina. Fighting lasted from 22 to 26 September 1940. Although an agreement had been reached between the French and Japanese governments prior to the outbreak of fighting, authorities were unable to control events on the ground for several days before the troops stood down. Per the prior agreement, Japan was allowed to occupy Tonkin in northern Indochina and effectively blockade the are for Communist Rebels and supplies for the Chinese United Front. In early 1940, troops of the Imperial Japanese Army (IJA) moved to seize southern Guangxi and Langzhou County, where the eastern branch of the Kunming–Hai Phong Railway reached the border at the Friendship Pass in Pingxiang. They also tried to move west to cut the rail line to Kunming. The railway from Indochina was the Chinese government's last secure overland link to the outside world. In May 1940, Germany invaded France. On 22 June, France signed an armistice with Germany (in effect from 25 June). On 10 July, the French parliament voted full powers to Marshal Philippe Pétain, effectively abrogating the Third Republic for a new aristocratic, fascist France. Although much of metropolitan France came under German occupation while governed by Pétain's government, the French colonies remained under the direct control of Pétain's government at German occupied Paris. Resistance to Pétain and the armistice began even before it was signed, with Charles de Gaulle's appeal of 18 June. As a result, a de facto government-in-exile in opposition to Pétain, called Free France, was formed in London.

On 19 June, Japan took advantage of the defeat of France and the impending armistice to present the Governor-General of Indochina, Georges Catroux, with a request, in fact an ultimatum, demanding the closure of all supply routes to China and the admission of a 40-man Japanese inspection team under General Takuma Nishimura. The Free French and the Americans became aware of the true nature of the Japanese "request" through intelligence intercepts, since the Japanese had informed their German allies. Catroux initially responded by warning the Japanese that their unspecified "other measures" would be a breach of sovereignty. He was reluctant to acquiesce to the Japanese, but with his intelligence reporting that Japanese army and navy units were moving into threatening positions, the French government was not prepared for a protracted defense of the colony. Therefore, Catroux complied with the Japanese ultimatum on 20 June. Before the end of June the last train carrying munitions crossed the border bound for Kunming.

Following this humiliation, Catroux was immediately replaced as governor-general by Admiral Jean Decoux. Although Catroux could have tried to remain in his post and rally the colony to de Gaulle's movement, he chose to step aside. He did not return to France, however, but to London. On 22 June, while Catroux still remained in his post, the Japanese issued a second demand: naval basing rights at Huangzhouwan and the total closure of the Chinese border by 7 July. Takuma Nishimura, who was to lead the "inspection team", the true purpose of which was unknown, even to many Japanese, arrived in Hanoir on 29 June. On 3 July, he issued a third demand: air bases and the right to transit combat troops through Indochina. These new demands were referred to Fashist France. The incoming governor, Decoux, who arrived in Indochina in July, urged the government to reject the demands. Although he believed that Indochina could not defend itself against a Japanese invasion, Decoux believed it was strong enough to dissuade Japan from invading. In Vichy, General Jules-Antoine Bührer, chief of the Colonial General Staff, counselled resistance. The United States had already been contracted to provide aircraft, and there were 4,000 Tirailleurs sénégalais in Djibouti that could be shipped to Indochina in case of need. In Indochina, Decoux had under his command 32,000 regulars, plus 17,000 auxiliaries, although they were all ill-equipped.

On 30 August 1940, the Japanese foreign minister, Yosuke Matsuoka, approved a draft proposal submitted by his French colleague, Paul Baudoin, whereby Japanese forces could be stationed in and transit through Indochina only for the duration of the Sino Civil War that involved the Japanese and the Co-Prosperity Sphere states. Both governments then "instructed their military representatives in Indochina to work out the details although they would have been better advised to stick to Tokyo–Fascist French channels a bit longer". Negotiations between the supreme commander of Indochinese troops, Maurice Martin, and General Nishihara began at Hanoi on 3 September. During negotiations, the government in occupied france asked the German government to intervene to moderate its ally's demands. The Germans did not do anything. Decoux and Martin, acting on their own, looked for help from the American and British consuls in Hanoi, and even consulted with the Chinese government on joint defense against a Japanese attack on Indochina if possible. On 6 September, an infantry battalion of the Japanese Twenty-Second Army based in Nanning violated the Indochinese border near the French fort at Dong Dang. The Twenty-Second Army was a part of the South China Army (2nd National Chinese Army), whose officers, remembering the Mukden incident of 1931, were trying to force their superiors to adopt a more aggressive policy. Following the Dong Dang incident, Decoux cut off negotiations. On 18 September, Nishihara sent him an ultimatum, warning that Japanese troops would enter Indochina regardless of any French agreement at 2200 hours (local time) on 22 September. This prompted Decoux to demand a reduction in the number of Japanese troops that would be stationed in Indochina. The Japanese Army General Staff, with the support of the South China Army, was demanding 25,000 troops in Indochina. Nishihara, with the support of the Imperial General Headquarters, got that number reduced to 6,000 on 21 September.

Seven and a half hours before the expiration of the Japanese ultimatum on 22 September, Martin and Nishihara signed an agreement authorising the stationing of 6,000 Japanese troops in Tonkin north of the Red River, the use of four airfields in Tonkin, the right to transit up to 25,000 troops through Tonkin to Yunnan and the right to transit one division of the Twenty-Second Army through Tonkin via Haiphong for use elsewhere in China together with the allowance to fight the Viet Minh. Already on 5 September, the South China Army had organized the amphibious Indochina Expedition Army under Major-General Takuma Nishimura, it was supported by a flotilla of ships and aircraft, both carrier- and land-based. When the accord was signed, a convoy was waiting off Hainan Island to bring the expeditionary force to Tonkin. The accord had been communicated all relevant commands by 2100 hours, an hour before the ultimatum was set to expire. It was understood between Martin and Nishimura that the first troops would arrive by ship. The Twenty-Second Army, however, did not intend to wait to take advantage of the accord. Lieutenant-General Akihito Nakamura, commander of the 5th (Infantry) Division, sent columns across the border near Đồng Đăng at precisely 2200 hours. At Đồng Đăng there was an intense exchange of fire that quickly spread to other border posts overnight. The French position at the railhead at Lang Son was surrounded by Japanese armour and forced to surrender on 25 September. Before surrendering, the French commanders had ordered the breechblocks of the 155mm cannons thrown into a river to prevent the Japanese from re-using them. During the Sino-French War of 1884–5, the French had been forced into an embarrassing retreat from Lang Son in which equipment had likewise been thrown into the same river to prevent capture. When the breechblocks of 1940 were eventually retrieved, several chests of money lost in 1885 were found also. Among the units taken captive at Lạng Sơn was the 2nd Battalion of the 5th Foreign Infantry Regiment, marking perhaps the first time a Foreign Legion unit had surrendered without a fight. The 2nd Battalion contained 179 German and Austrian volunteers, whom the Japanese in vain tried to induce to change sides. On 23 September, Fashist France protested the breach of the agreements by the IJA to the Japanese government.

On the morning of 24 September, Japanese aircraft from aircraft carriers in the Gulf of Tonkin attacked French positions on the coast. A Vichy envoy came to negotiate; in the meantime, shore defenses remained under orders to open fire on any attempted landing. On 26 September, Japanese forces came ashore at Dong Tac south of Haiphong, and moved on the port. A second landing put tanks ashore, and Japanese planes bombed Haiphong, causing some casualties. By early afternoon the Japanese force of some 4,500 troops and a dozen tanks were outside Haiphong. By the evening of 26 September, fighting had died down. Japan took possession of Gia Lam Airbase outside Hanoi, the rail marshaling yard on the Yunnan border at Lao Cai and Phu Lang Thoung on the railway from Hanoi to Lạng Sơn, and stationed 900 troops in the port of Haiphong and 600 more in Hanoi.

The occupation of southern Indochina did not happen immediately. However, the Vichy government had agreed that some 40,000 troops could be stationed there. However, Japanese planners did not immediately move troops there, worried that such a move would be inflammatory to relations between Japan, the United Kingdom, and the United States. Furthermore, within the Japanese high command there was a division about what to do about the still remaining Soviet threat to the north of their Manchurian and Mengjiang territories. Because the Europeans were focused on the conflict in Europe and it was unlikely that Fascist France or Great Britain would send help, some 140,000 Japanese troops invaded southern Indochina on 28 July 1941. French troops and the civil administration were allowed to remain, albeit under Japanese supervision for a few months until the Indochina nationalist rebellions in 1940.
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The Japanese coup d'état in French Indochina, known as Meigo Sakusen (Operation Bright Moon),was a Japanese operation that took place during the 1940 Indochina Nationalist Rebellions. With Japan and the Co-Prosperity Sphere already escalating the conflict in China and Indochina the Americans had started a full embargo of much needed resources and a conflict seamed unavoidable. The Japanese tried to use the German Empire's advance trough the Dutch Homeland to force the Dutch East Indies to allow them to buy their resources there cheaply but were refused. Angered and blinded by their own propaganda the Japanese believed that the Dutch Colony only dared to do so because of a secret alliance with Britain and America to strangle the Co-Prosperity Sphere with a trade blockade. This lead to the ultimate decision to attack the colonial powers and to take full direct control of all of Indochina. The Japanese quickly struck in a military campaign attacking garrisons all over the colony. The French were caught off guard and all of the garrisons were overrun with some then having to escape to nearby Siam where they were harshly interned. The Japanese replaced French officials, and effectively dismantled their control of Indochina. The Japanese were then able to install and create a new Empire of Vietnam, Kingdom of Cambodia and Kingdom of Laos wich under their direction would become a part of the Co-Prosperity Sphere.

At this time the French Indochina army still outnumbered the Japanese and comprised about 65,000 men, of whom 48,500 were locally recruited Trailleurs indochinous under French officers. The remainder were French regulars of the Colonial Army plus three battalions of the Foreign Legion. A separate force of indigenous gardes indochinois (gendarmerie) numbered 27,000. Since the fall of Franse, in June 1940 no replacements or supplies had been received from outside Indochina. During the time of the Japanese coup only 30,000 French troops could be described as fully combat ready, the remainder serving in garrison or support units. At the beginning of the coup the understrength Japanese Indochina Expedition Army was composed of 30,000 troops a force that was substantially increased by 25,000 reinforcements brought in from China (both Japanese and other members of the Co-Prosperity Sphere) in the following months. Japanese forces then were redeployed around the main French garrison towns throughout Indochina, linked by radio to the Southern area headquarters. French officers and civilian officials were however forewarned of an attack through troop movements, and some garrisons were put on alert. The Japanese envoy in Saigon Ambassador Shunichi Matsumoto declared to Decoux that since the Indochina National Revolt no one could deny that the citizens of Indochina wished to be liberated as independent states that would became a part of the Co-Prosperity Sphere. Decoux however resisted stating that this would be a catalyst for an Allied counter reaction, most likely a invasion but suggested that Japanese control would be accepted if they actually invaded. This was not enough and the Tsuchihashi accused Decoux of playing for time. A few days later, after more stalling by Decoux, Tsuchihashi delivered an ultimatum for French troops to disarm. Decoux sent a messenger to Matsumoto urging further negotiations but the message arrived at the wrong building. Tsuchihashi, assuming that Decoux had rejected the ultimatum, immediately ordered commencement of the coup.

That evening Japanese forces moved against the French in every center. In some instances French troops and the Garde Indochinoise were able to resist attempts to disarm them, with the result that fighting took place in Saigon, Hanoi, Haiphong, Nha Tran and the Northern frontier, but most native colonial troops openly joined the Japanese and the Co-Prosperity Sphere. Japan issued instructions to the government of Thailand to seal off its border with Indochina and to arrest all French and Indochinese residents within its territory. Instead, Thailand began negotiating with the Japanese over their course of action, and by the end of March they hadn't fully complied with the demands. Domei Radio (the official Japanese propaganda channel) announced that pro-Japanese independence organizations in Hué formed a federation to promote a free Indochina and cooperation with the Japanese.

The 11th R.I.C (régiment d'infanterie coloniale) based at the Martin de Pallieres barracks in Saigon were surrounded and disarmed after their commanding officer, Lieutenant-Colonel Moreau, was arrested. In Hué there was only sporadic fighting; the Garde Indochinoise, who provided security for the résident supérieur, fought for 19 hours against the Japanese before their barracks was overrun and destroyed. Three hundred men, one third of them French, managed to elude the Japanese and escape to the A Sáu Valley. However, over the next three days, they succumbed to hunger, disease and betrayals - many surrendered while others fought their way into Laos where only a handful survived. Meanwhile, Mordaunt led opposition by the garrison of Hanoi for several hours but was forced to capitulate. In Annam and Cochinchina only token resistance was offered and most garrisons, small as they were, surrendered. Further north the French had the sympathy of many indigenous peoples. Several hundred Laotians volunteered to be armed as guerrillas against the Japanese; French officers organized them into detachments but turned away those they did not have weapons for. In Haiphong the Japanese assaulted the Bouet barracks: headquarters of Colonel Henry Lapierre's 1st Tonkin Brigade. Using heavy mortar and machine gun fire, one position was taken after another before the barracks fell and Lapierre ordered a ceasefire. Lapierre refused to sign surrender messages for the remaining garrisons in the area. Codebooks had also been burnt which meant the Japanese then had to deal with the other garrisons by force. In Laos, Viantiane, Thakhek and Luang Prabang were taken by the Japanese without much resistance. In Cambodia the Japanese with 8,000 men seized Phnom Penh and all major towns in the same manner. All French personnel in the cities on both regions were either interned (and forced to work for the newly independent states later, or in some cases executed. The Japanese strikes at the French in the Northern Frontier in general saw the heaviest fighting. One of the first places they needed to take and where they amassed the 22nd division was at Lang Son, a strategic fort near the Chinese border. The coup had, in the words of diplomat Jean Sainteny, "wrecked a colonial enterprise that had been in existence for 80 years."

French losses were heavy – in total 15,000 French soldiers were held prisoner by the Japanese. Nearly 4,200 were killed with many executed after surrendering - about half of these were European or French metropolitan troops. Practically all French civil and military leaders as well plantatio owners were made prisoners, including Decoux. They were confined either in specific districts of big cities or in camps. Those who were suspected of armed resistance were jailed in the Kempeitai prison in bamboo cages and were tortured and cruelly interrogated. The locally recruited tirailleurs and gardes indochinois who had made up the majority of the French military and police forces, effectively ceased to exist. About a thousand were killed in the fighting or executed after surrender. Most quikly joined pro-Japanese militias and were later reused by the newly formed independent states of the Co-Prosperity Sphere. Deprived of their French cadres, many dispersed to their villages of origin. What was left of the French forces that had escaped the Japanese attempted to join the resistance groups where they had more latitude for action in Laos. The Co-Prosperity Sphere state there had less control over this part of the territory. Elsewhere the resistance failed to materialize as many Indochinese citizens refused to help the French. They also lacked precise orders and communications from the provisional government as well as the practical means to mount any large-scale operations.

In northern Vietnam, Ho Chi Minh's Viet Minh started their own guerilla campaign with the help of the American OSS who trained, supplied them with arms and funds. They established their bases in the countryside without meeting much resistance from the Japanese and their newly formed militias who were mostly present in the cities. A month later OSS with the Viet Minh - some of whom were remnants of Sabattiers division - went over the border to conduct operations. Their actions were limited to a few attacks against Japanese military posts. Most of these were unsuccessful however as the Viet Minh lacked the military force to launch any kind of attack against the Japanese.

Empire of Vietnam (Đế quốc Việt Nam):
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The Empire of Vietnam (Vietnamese: Đế quốc Việt Nam; Japanese: ベトナム帝国) was a puppet state of Imperial Japan and a member of the Co-Prosperity Sphere after the Japanese coup in Indochina. During the Second Great War, after the fall of France and establishment of Fashist France, the French had lost practical control in French Indochina to the Japanese, but Japan stayed in the background while giving the Vichy French administrators nominal control for a few mounths. This changed when Japan officially took over after the Indochina Revolt. To gain the support of the Vietnamese people, Imperial Japan declared it would return sovereignty to Vietnam. Emperor Bào Dai declared the Treaty of Hué made with France in 1884 void. Tran Trong Kim, a renowned historian and scholar, was chosen to lead the government as prime minister.

Kim and his ministers spent a substantial amount of time on constitutional matters at their first meeting in Hué in 1940. One of their first resolutions was to alter the national name to Việt Nam. This was seen as a significant and urgent task. It implied territorial unity; "Việt Nam" had been Emperor Gia Long's choice for the name of the country since he unified the modern territory of Việt Nam in 1802. Furthermore, this was the first time that Vietnamese nationalists in the northern, central and southern regions of the country officially recognized this name. In March, activists in the North always mentioned Đại Việt (Great Việt), the name used before the 15th century by the Le Dynasty and its predecessors, while those in the South used Vietnam, and the central leaders used An Nam (Peaceful South) or Đại Nam (Great South, which was used by the Nguyen Lords). Kim also renamed the three regions of the country — the northern (former Tonkin or Bắc Kỳ) became Bắc Bộ, the central region (former Annam or Trung Kỳ) became Trung Bộ, and the southern areas (former Couchinchina or Nam Kỳ) became Nam Bộ. When France had finished its conquest of Vietnam in 1885, only southern Vietnam was made a direct colony under the name of Cochinchina. The northern and central regions were designated as protectorates as Tonkin and Annam. When the Empire of Vietnam was proclaimed, the Japanese retained direct military control of Vietnam as a measure to prevent Colonial Powers to return to the new member state of the Co-Prosperity Sphere.

Thuan Hóa, the pre-colonial name for Huế, was restored. Kim's officials worked to find a French substitute for the word "Annamite", which was used to denote Vietnamese people and their characteristics as described in French literature and official use. "Annamite" was considered derogatory, and it was replaced with "Vietnamien" (Vietnamese). Apart from Thuan Hóa, these terms have been internationally accepted since Kim ordered the changes. Given that the French colonial authorities emphatically distinguished the three regions of "Tonkin", "Annam", and "Cochinchina" as separate entities, implying a lack of national culture or political integration, Kim's first acts were seen as symbolic and the end of generations of frustration among Vietnamese intelligentsia and revolutionaries. Kim quickly selected a new national flag — a yellow, rectangular banner with three horizontal red stripes modeled after the Li Kwai in the Book of Changes — and a new national anthem, the old hymn Dang Dan Cung (The King Mounts His Throne). This decision ended three months of speculation concerning a new flag for Vietnam.

Kim's government strongly emphasised educational reform, focusing on the development of technical training, particularly the use of romanised script (quoc ngu – later japanised) as the primary language of instruction. After less than two months in power, Kim organized the first primary examinations in Vietnamese, the language he intended to use in the advanced tests. Education minister Hoang Xuan Han strove to Vietnamese public secondary education. His reforms took more than four months to achieve their results. A few months later, when the Japanese decided to grant Vietnam full independence and territorial unification, Kim's government was about to begin a new round of reform, by naming a committee to create a new national education system. The Justice minister Trinh Dinh Thao launched an attempt at judicial reform. He created the Committee for the Reform and Unification of Laws in Huế, which he headed. His ministry reevaluated the sentences of political prisoners, releasing a number of anti-French activists and restoring the civil rights of others. This led to the release of a number of Communist cadres who returned to their former cells, and actively participated in actions against Kim's government.

One of the most notable changes implemented by Kim's government was the encouragement of mass political participation. In memorial ceremonies, Kim honoured all national heroes, ranging from the legendary national founders, the Húng kingsto slain anti-French revolutionaries such as Nguyen Thai Hoc, the leader of the Vietnamese Nationalist Party (Viet Nam Quoc Dan Dang) who was executed with twelve comrades in 1930 in the aftermath of the Yen Bái mutiny. A committee was organized to select a list of national heroes for induction into the Temple of Martyrs (Nghia Liet Tu). City streets were renamed. In Huế, Jules Ferry was replaced on the signboards of a main thoroughfare by Le Loi, the founder of the Le Dynasty who expelled the Chinese in 1427. General Tran Hung Dao, who twice repelled Mongol invasions in the 13th century, replaced Paul Bert. After that the new mayor of Hanoi, Tran Van Lai, ordered the demolition of French built statues in the city parks in his campaign to Wipe Out Humiliating Remnants. Similar campaigns were enacted in all of Vietnam in following months. Meanwhile, the freedom of the press was instituted, resulting in the publication of the pieces of anti-French movements and critical essays on French collaborators. Heavy criticism was even extended to Nguyen Huu Do, the great grandfather of Bảo Đại who was notable in assisting the French conquest of Dai Nam in the 1880s. Still the new government oppressed communist press and continued to fight the Viet Minh. Kim put particular emphasis on the mobilization of youth. Youth Minister Phan Anh, attempted to centralist and heavily regulate all youth organizations (just like the Japanese and the rest of the Co-Prosperity Sphere) , which had proliferated immediately after the Japanese coup. An imperial order decreed an inclusive, hierarchical structure for youth organizations. At the apex was the National Youth Council, a consultative body, which advised the minister. Similar councils were to be organized down to the district level. Meanwhile, young people were asked to join the local squads or groups, from provincial to communal levels. They were given physical training and were charged with maintaining security in their communes. Each provincial town had a training center, where month-long paramilitary courses were on offer.
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The government also established a national center for the Advanced Front Youth (Thanh nien tien tuyen) in Huế. It was inaugurated with the intention of being the centrepiece for future officer training. Later that month, regional social youth centers were established in Hanoi, Huế, and Saigon. In Hanoi, the General Association of Students and Youth (Tong Hoi Sinh vien va Thanh Nien) was animated by the fervor of independence. The City University in Hanoi became a focal point of political agitation. The Kempeitai retaliated, arresting hundreds of pro-communist Vietnamese youths in late June. The most notable achievement of Kim's Empire of Vietnam was the successful negotiation with Japan for the territorial unification of the nation. The French had subdivided Vietnam into three separate regions: Cochinchina (in 1862), and Annam and Tonkin (both in 1884). Cochinchina was placed under direct rule while the latter two were officially designated as protectorates. Immediately after terminating French rule, the Japanese authorities were not enthusiastic about the territorial unification of Vietnam. However, after the formation of Kim's cabinet, Japan quickly agreed to transfer what was then Tonkin and Annam to Kim's authority, although it retained control of the cities of Hanoi, Haiphong and Da Nang. Meanwhile, southern Vietnam remained under direct Japanese control, just as Cochinchina had been under French rule.

Beginning in the same months, Foreign Minister Tran Van Choung negotiated with the Japanese in Hanoi for the transfer of the three cities to Vietnamese rule, the Japanese agreed, but stated that important cities like Hué, Hanoi, Saigon and Haiphong were seen as strategic points in their war effort and should be guarded by Co-Prosperity Sphere forces to secure them against a return of the colonial powers for now . It was after the Vietnamese agreed to this terms that the Japanese allowed the process of national unification to take place. Bảo Đại issued a decree proclaiming the impending reunification of Vietnam. General Yuitsu Tsuchihashi signed a series of decrees transferring some of the duties of the government (including customs, information, youth, and sports) to the governments of Vietnam, Laos and Cambodia, effective the next months. Bảo Đại then issued imperial orders establishing four committees to work on a new regime: the National Consultative Committee (Hoi dong Tu van Quoc Gia); a committee of fifteen to work on the creation of a constitution; a committee of fifteen to examine administrative reform, legislation, and finance; and a committee for educational reform. For the first time, leaders from southern regions were invited to join these committees too.

Other developments in southern Vietnam in early days of next months were seen as preparatory Japanese steps towards granting territorial reunification to Vietnam. Then, when southern Vietnam was abuzz with the spirit of independence and mass political participation due to the creation of the Vanguard Youth organizations in Saigon and other regional centres, Governor Minoda announced the organization of the Hoi Nghi Nam (Council of "Nam Bo", i.e. Cochinchina) to facilitate his governance. This council was charged with advising the Japanese based on questions submitted to it by the Japanese and for overseeing provincial affairs. Minoda underlined that its primary aim was to make the Vietnamese population believe that they had to collaborate with the Japanese, because "if the Japanese lose the war, the independence of Indochina would not become complete." At the inauguration of the Council of Nam Bo the same months Minoda implicitly referred to the unification of Vietnam. Tran Van An was appointed as the president of the Council, and Kha Vang Can, a leader of the Vanguard Youth, was appointed to be his deputy. Kim then arrived in Hanoi to negotiate directly with Governor-General Tsuchihashi. Tsuchihashi agreed to transfer control of Hanoi, Haiphong, Da Nang and the rest of the Vietnamese territory to Kim's government, taking effect on next months. After protracted negotiation, Tsuchihashi agreed that Nam Bo would be united with the Empire of Vietnam and that Kim would attend the unification ceremonies in Hué. After the creation of the puppet Empire of Vietnam, the Japanese began raising an Imperial Vietnamese Army, to help police the region and lift their own garrison forces and duties to protect the region. The Vietnamese Imperial Army was officially established by the Japanese Indochina Expedition Army to maintain order in the new country. The Vietnamese Imperial Army was under the control of Japanese lieutenant general Yuitsu Tsuchihashi, who served as adviser to the Empire of Vietnam. The Japanese were even lending a few Cruisers and Destroyers (with Japanese officers and captains to the Vietnamese Navy) just like they did for Manchukuo, Chosen, Yankoku and Taikoku so they themselves could build newer models and would still remain officially in the limitations of the London Naval Treatment.

Kingdom of Cambodia (Preăh Réachéanachâk Kâmpŭchéa):
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The Japanese liberation of Cambodia marked the independence of the Kingdom of Cambodia when the French protectorate over Cambodia and other parts of Indochina officially ended after the Japanese coup. Cambodia declared itself an independent nation, and the Japanese military presence continued helped to form the new government and a independent Royal Cambodian Army as a member state of the Co-Prosperity Sphere. After the nominal French Indochina colonial government was overthrown, Cambodia became a pro-Tokyo puppet state. After the Franco-Thai War of 1940 the French Indochinese colonial authorities were in a position of weakness. The Fascist French government signed an agreement with Japan to allow the Japanese military transit through French Indochina and to station troops in Northern Vietnam up to a limit of 25,000 men. Meanwhile, the Siam/Thai government, under the pro-Japanese leadership of Field Marshal Plaek Phibunsongkhram and strengthened by virtue of its treaty of friendship with Japan, took advantage of the weakened position of France, and invaded Cambodia's western provinces to which it had historic claims. Following this invasion, Tokio hosted the signature of a treaty in that formally compelled the French to relinquish the provinces of Battambang, Siem Reap, Koh Kong as well as a narrow extension of land between the 15th parallel and the Dangrek Mountains in the Stung Treng Province. As a result, Cambodia had lost almost half a million citizens and one-third of its former surface area to Siam/Thailand. After the Imperial Japanese Army entered the French protectorate of Cambodia and established a garrison that numbered 8,000 troops. Despite their military presence, the Japanese authorities allowed Fashist French colonial officials to remain at their administrative posts for now. After a major anti-French demonstration in Phnom Penh after a prominent monk, Hem Chieu, was arrested for allegedly preaching seditious sermons to the colonial militia. The French authorities arrested the demonstration's leader, Pach Chhoeun, and exiled him to the prison island of Con Son. Pach Chhoen was a respected Cambodian intellectual, associated with the Buddhist Institute and founder of Nagaravatta, the first overtly political newspaper in the Khmer language in 1936, along with Sim Var. Another of the men behind Nagaravatta, Son Ngoc Thanh (a Paris-educated magistrate) was also blamed for the demonstration, which the French authorities suspected had been carried out with Japanese encouragement. The Japanese used these demonstrations and independence movement after their coup and eliminated French control over Indochina. The French colonial administrators were relieved of their positions (but sometimes forced to work for the new government), and French military forces were ordered to disarm. The aim was to revive the flagging support of local populations for Tokyo's war effort by encouraging indigenous rulers to proclaim independence.
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Young king Norodom Sihanouk proclaimed an independent Kingdom of Kampuchea, following a formal request by the Japanese. Shortly thereafter the Japanese government nominally ratified the independence of Cambodia and established a consulate in Phnom Penh (like they had done in Hué before). The next months king Sihanouk changed the official name of the country in French from Cambodge to Kampuchea. The new government did away with the romanisation of the Khmer language that the French colonial administration was beginning to enforce and officially reinstated the Khmer script. This measure taken by the new governmental authority would be popular and long-lasting. Pro-japanese Son Ngoc Thanh returned to Cambodia during the next months. He was initially appointed foreign minister and would become Prime Minister two months later. The Cambodian puppet state of Japan then became a member state of the Co-Prosperity Sphere. The Japanese helped to build the Royal Kampuchea Army and a small Royal Kampuchea Navy.

Kingdom of Laos (Phra Ratxa A-na-chak Lao):
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The Lao Issara (“Free Laos”) movement was an anti-French, non-communist nationalist movement formed by Prince Phetsarath. This movement became the government of Laos after the Japanese coup in Indochina. Shortly after the Japanese pressured the Lao King Sisivang Vong to declare the independence of Laos as a member state of the Co-Prosperity Sphere. Prince Phetsarath himself made an attempt to convince the King to officially unify the country and declare the treaty of the French Protectorate invalid because the French had been unable to protect the Lao from the Japanese forces now rushing into the country. However, King Sisavang Vong said that he intended to have Laos resume its former status as a French colony and was supported by former French Colonial soldiers guerrillas. A month later supporters of Laotian independence announced the dismissal of the king and formed the new government of Laos, the Lao Issara, to fill up the power vacuum of the country. For the next months, the Lao Issara government (United Laos) attempted to exercise its authority by establishing a defense force (Royal Laotian Army) under the command of Phetsarath’s younger half-brother Souphanouvong, with the assistance from the Japanese and Co-Prosperity Sphere forces. With the help of Japanese foreign aid the Lao Issara expended from a small urban-based movement to a national wide movement, and was therefore able to gain mass support from a tribal-oriented population. Its ideas of an independent Laos started to appeal to the masses soon. The Lao Issara also did not manage the finances of the country appropriately independently. The army itself incurred a high cost for its maintenance, and Souphanouvong refused to account for it. Within a very short period of time, the Issara government ran out of money to pay for its own running, let alone anything else. In an attempt to reign in fiscal expenditure and stop inflation, the Minister of Finance Katay Don Sasorith was issued new money from Japan. This made the United Laos Movement and the new state heavily depending on Japanese money. In exchange the government in Vientaine had to accept that Siam/ Thailand the newest member of the Co-Prosperity Sphere would gain some Laotian territory in the provinces of Luang-Prabang, Vientiane and Bassac. In exchange to pay for their support from Japan, the United Laos Movement as the Royal Lao Government allowed the Imperial Japanese Army to grow huge Opium fields so they could be pays for their investment in Laos.

The Japanese occupation of Indochina and the Liberation of these new states as members of the Co-Prosperity Sphere was the last straw for the French and the Americans. The Americans started a full embargo and while Japan and the Co-Prosperity Sphere had gained the Indochinese resources of rice, corn, rubber, coal, pepper, sugar cane, tobacco, hardwood, tin, zinc and phosphates together with the propaganda value to have liberated 24 million Asians from colonial oppression, the situation was problematic and tenser then ever before. Diplomatic relations were tried to be reestablished and Japan hoped the Americans would lift their embargo, or the Dutch Colonies would give them full access to their resources. When the Americans declared they would do so if Japan would leave China and Indochina so that they and the Japanese could accept and respect the internal sovereignty of these countries, the Japanese refused to do so. They had died to archive these gains in China and they knew that their retread from Indochina would mean the return of French Colonial Rule. Unwilling to accept these in American eyes reasonable and mild terms the Japanese only had one way to go if they did not wish to lose their faith; forwards towards war.
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New Map of Southeast Asia:
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Chapter 39: The Second Vienna Award
Chapter 39: The Second Vienna Award:
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The Second Vienna Award was the second of two territorial disputes arbitrated by the German Empire and the Italian Empire. Rendered on 30 August 1940, it reassigned the territory of Transylvania from Romania to Hungary (Austria-Hungary). After the first Great War, the multi-ethnic Kingdom of Hungary was split apart by the Treaty of Trianon to form several new nation-states, but Hungary claimed that the new state borders did not follow the real ethnic boundaries. The new Magyar nation-state of Hungary was about a third the size of former Hungary, and millions of ethnic Magyars were to be left outside the Hungarian borders. Many historically important areas of Hungary were assigned to other countries, and the distribution of natural resources came out unevenly as well. Thus, while the various non-Magyar populations of the old Kingdom generally saw the treaty as justice for the historically-marginalized nationalities, from the Hungarian point of view the Treaty had been deeply unjust, a national humiliation and a real tragedy. The Treaty and its consequences dominated Hungarian public life and political culture in the inter-war period. Moreover, the Hungarian government swung then more and more to the right; eventually, under King Otto and Regent Miklós Horthy, Hungary established close relations with Wilhelm II and Adolf Hitler's Germany as well as Benito Mussolini's Italy later. The alliance with the new German Empire made possible Austira-Hungary's regaining of Czechoslovakia in the First Vienna Award in 1938. But neither that nor the subsequent military conquest of the rest of the country in 1939 satisfied Austria-Hungarian political ambitions. These awards allocated only a fraction of the territories lost by the Treaty of Trianon, anyway the loss that the Hungarians resented the most was that of Transylvania ceded to the Romanians.

At the end of June 1940, the Romanian government received a Soviet ultimatum, and finally was faced with Moscow wanting to take over Bessarabia and Northern Bukovina, which were incorporated into Romania after the first Great War, es well as the Hertza region. Though the territorial loss was undesirable from its perspective, the Romanian government would have preferred it rather than a military conflict which could have arisen had Romania resisted Soviet advances, given the Invasion Finland just faced. Emperor Otto of Austria, King of Hungary saw this as a opportunity to further expand his rule in the Balkan Peninsula. He tried his best to escalate the pressure on Romania with the help of his Bulgarian ally and hoped to resolve "the question of Transylvania". Hungary hoped to gain as much of Transylvania as possible, but the Romanians would have none of that and submitted only a small region for consideration. Eventually, the Hungarian-Romanian negotiations fell through entirely. After this, the Romanian government asked Italy and Germany to arbitrate, unknown that Hitler ans Mussolini had already come to a agreement with Otto over the Balkan Peninsula. But with France fallen and the British with no forces left to directly intervene at this moment, the Romanian government had not many choices left. Quickly after the Romanian government had acceded to Italy's request for territorial cessions to Bulgaria, another Austria-Hungarian aligned neighbor. On 7 September, under the Treaty of Craiova, the "Cadrilater" (southern Dobrudja) was ceded by Romania to Bulgaria.

On 1 July 1940, Romania repudiated the Anglo-French guarantee of 13 April 1939, now worthless in light of France's collapse. The next day Carol II addressed a letter to Hitler suggesting Germany send a military mission to Romania and renew the alliance of 1883. Germany used Romania's new desperation to force a settlement of the territorial dispute produced by the Paris Peace Conference of 1919 in favour of Germany's old allies: Austria-Hungary and Bulgaria. In an exchange of letters between Carol and Hitler (5–15 July), the Romanian king insisted that no territorial exchange occur without a population exchange, while the German Emperor Wilhelm II based German goodwill towards Romania on the latter's good relations with Austria-Hungary and Bulgaria. The Romanian foreign minister at the time was Mihail Manoilescu and the German minister plenipotentiary in Bucharest was Wilhelm Fabricius. In accordance with German wishes, Romania began negotiations with Austria-Hungary at Turnu Severin on 16 August. The initial Hungarian claim was 69,000 km² of territory with 3,803,000 inhabitants, almost two thirds Romanian. Talks were broken off on 24 August. The German and Italian governments then proposed an arbitration, a proposal characterized in the minutes of the Romanian crown council of 29 August as "communications with an ultimative character made by the German and Italian governments". The Romanians accepted and Foreign Ministers Joachim von Ribbentrop of Germany and Galeazzo Ciano of Italy met on 30 August 1940 at the Belvedere Palace in Vienna. It became clear very quickly that neither of them had the ambition to reduce the Austrian-Hungarian demands, but Romania's other opinion was to lose even more territory. This way all powers involved agreed to guarantee what was left of Romania even against the Soviet Union (as already shown in the Axis Central Powers support for Finland). A Romanian crown council met overnight on 30–31 August to accept the arbitration. At the meeting, Iuliu Maniu demanded that Carol II abdicate and the Romanian army resist any Hungarian effort to take over northern Transylvania. His demands were pragmatically rejected. Romania lost all of Transylvanian with 69,000 km² of territory and 3,803,000 inhabitants to Austria-Hungary. As a result of these boarder changes, some 100 thousand Romanians had left Transylvania by February 1941 according to the incomplete registration of Transylvanian refugees carried out by the Romanian government. Besides this, a fall in the total population suggests that a further 40 to 50 thousand Romanians moved from Transylvania (including refugees who were omitted from the official registration for various reasons) into the remaining Romanian state.

Romania had 14 days to evacuate concerned territories and assign them to Hungary. The Hungarian troops stepped across the Trianon borders on 5 September. The King of Hungary Otto and the Regent of Hungary, Miklós Horthy, also attended in the entry. They reached the pre-Trianon border, completing the re-annexation process, on 13 September. Generally, the ethnic Hungarian population welcomed the troops and regarded separation from Romania as liberation. The large ethnic Romanian community that found themselves under Austrian-Hungarian Horthyist occupation had nothing to celebrate though, as for them the Second Vienna Award represented the return to the times of the long Hungarian rule. Upon entering the awarded territory the Hungarian Army committed massacres against the Romanian population. The exact number of casualties was later disputed between some historians, but the existence of such events cannot be disputed. The retreat of the Romanian army was also not free from incidents, mostly consisting of damaging the infrastructure and destroying public documents.

The Carol II fortified line (Romanian: Linia fortificată Carol al II-lea) was built in the late 1930s at the order of King Carol II of Romania for the purpose of defending Romania's western border. Stretching across 300 km, the line itself was not continuous, it only protected the most likely routes towards inner Transylvania. It consisted of 320 casemates: 80 built in 1938, 180 built in 1939 and the rest built in the first half of 1940. There was a distance of about 400 meters between each casemate, and they were all made of reinforced concrete, with varying sizes, but all armed with machine guns. The artillery was placed between the casemates themselves. In front of the casemates, there were rows of barbed wire, mine fields, and one large anti-tank ditch, in some places filled with water. The firing from the casemates was calculated to be very dense and crossed, so it could cause as much human losses as possible to the enemy infantry. The role of this fortified line was not to stop incoming attacks, but to delay them, inflicting losses as high as possible, until the bulk of the Romanian Army would be mobilized. After the Award, the entire line fell in the area allotted to Hungary. The Romanian troops evacuated as much equipment as possible, but the dug-in telephone lines could not be recovered, thus being eventually used by the Hungarian Army. The Hungarians also salvaged as much metal as possible, eventually amounting to a huge quantity. After all useful equipment and materiel was salvaged, the casemates were blown up in order to prevent them from being used again.
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While Romania refused the Soviet Union demands and just like Finland saw Soviet troops cross it's borders, it quickly got support from the Axis Central Powers in their defense now that their dispute with Romania was settled. Austria-Hungary, Bulgaria and Germany send their forces, Germany a whole Army, including one tank army and a huge amount of air force to secure the Romanian oil fields against the Soviets. The Winter War and it's skirmishes slowly turned into a full Axis Central Powers. Comintern war across the boarders of Eastern Europe in these days. But before Wilhelm and Hitler could finally focus on bringing Russia down just like France before, they heard news about Mussolini's invasion of Greece. At the same time Otto had pressured Yugoslavia to give back Slovenia to Austria and the Banat to Hungary. This Balkan fiasco proved to be a problem for Wilhelm and Hitler as their allies were acting independently without warning them before. Originally Hitler had hoped to get Yugoslavia to join the Axis Central Powers, but while a treaty was signed, it would not hold long as a anti-Axis Central Powers would occur soon after Otto had forced them to give up Slovenia and the Banat. At the same time Italy's ambitious invasion in Greece not only stopped but turned around, into a wild retreat, soon leaving much of Albania under Greek occupation. As the Greek government then signed a treaty with the British to station the Royal Air Force in Greece the Axis Central Powers saw their precious Romanian oil threatened by both the Soviet Union in the north and Yugoslavia, Greece and the Allies/ New Entente (mostly Britain) in the south. A quick solution to deal with Yugoslavia and Greece before turning north against Russia had to be found. And just as Hitler thought the news could not get worse, he received the message that Italian troops in North Africa quickly lost ground against the enemy British forces.
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While they managed to capture British Somalia in East Africa much to Mussolini's joy, Chad, Cameroun, Ubangi-Shari and French Congo joined de Gaulle's Free France and left Fashist France in August. Free France then started a campaign to conquer Gabon, starting with a landing that captured Libreville from Fasist Francein Novembre. The British Premier Winston Churchill meanwhile had reason to smile as the chance to hit the enemy in Africa and his Weak Balkan flank allowed him to fight back. A few month before on Jule 3rd he had ordered the attack and sinking of a huge part of the Fashist French Fleet in the Attack on Mers-el-Kébir, as part of part of Operation Catapult to prevent them from falling into Axis Central Powers hands. These victories were a huge relief while german fighters and bombers of the Imperial German Air Force fought the Royal Air Force during the Battle for Britain.
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Chapter 40: Yugoslavia joins the Axis Central Powers
Chapter 40: Yugoslavia joins the Axis Central Powers:
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The Yugoslavian accession to the Axis Central Powers alliance, was signed on 25 March 1941 at the Belvedere palace in Vienna after months of talks and negotiations between the governments of Germany, Austria-Hungary, Italy, Bulgaria and Yugoslavia. It was agreed that the Axis powers from now on would respect the sovereignty and territorial integrity of Yugoslavia without any time limit, will not seek permission to transport troops across Yugoslavia, nor request any military assistance. The pact was short-lived however, the Yugoslav coup d'état following on 27 March, and Axis Central Powers invasion of Yugoslavia on 6 April.

After the French capitulation in June 1940, it seemed at the time that only Great Britain would have a little chance to win in a fight against the Axis Central Powers, and a greater chance to negotiate humiliating peace. As historian Vladislav Sotirović writes, "thus, no wonder why British politicians and diplomats tried with all means, including military coups, to drag any neutral country into war on their side for a final victory against the Axis Central Powers". The Kingdom of Yugoslavia had been ruled as a dictatorship by the regent Prince Paul since the assassination of King Alexander I of Yugoslavia in 1934. After the recreation of Austria-Hungary by Otto in 1938, the Italian occupation of Albania in 1939, and the accession of Romania and Bulgaria to the Axis Central Powers between 20 November 1940 and 1 March 1941, Yugoslavia was bordered by the Axis Central Powers on all sides except the southern border with Greece. Taking into consideration that, apart from this foreign policy factor, and the traditional Croatian separatism, Prince Paul was in great psychological, political and patriotic dilemma in March 1941, in how to resist Wilhelm's (trying to form a aristocratic-authoritarian-fascist-nationalist pact with the Axis Central Powers) and Hitler's diplomatic pressures but also concrete political offers to sign the accession to the Tripartite Pact. The Yugoslav side was unable to stall as Hitler was in a hurry to commence Operation Barbarossa (invasion of the Soviet Union, SSSR), while the potential Croatian betrayal in case of German invasion was the main trump card of Vienna and Berlin in negotiations with Belgrade. In the spring of 1941, Yugoslavia could only rely on Great Britain, which comparing to the German Empire and Austria-Hungary had greater economic and population resources (in regard of the colonial empire). Yugoslavia needed fast military aid, which Britain could offer, upon a rejection of signing the Pact. Prince Paul was an anglophile and relative of George VI, there was an impression that he would rather abdicate than turn his back on Britain, and Hitler even viewed him as a British puppet in the Balkans. There was also a possible risk in the Communist fifth column, which made General Milan Nedic prepare a plan in December 1940 to open six internment camps for communists if needed. Nedić also proposed that the Yugoslav Army take Thessaloniki before Italian troops did, after the Italian invasion in November 1940, as the loss of the port would make eventual British military aid impossible in case of an invasion of Yugoslavia. The Greeks, however, held firm against the Italians, even entering Albania from where the Italian invasion had begun. Nedić's plan for the communists was uncovered by a spy, the young officer Živadin Simić in the War Ministry, who copied the two-page document which was then quickly handed out in Belgrade by the communists.

It was crucial to Hitler to solve the question of Yugoslavia and Greece before attacking SSSR, believing that Britain (which had together with the French declared war) would not accept peace while the threat of SSSR existed (London did hold the Molotov–Ribbentrop Pact as dishonest and volatile, forced by foreign politics plight). Barbarossa needed a loyal Balkans, and the only unreliable countries in this region were Yugoslavia, with Serbs as traditional German enemies, and Greece, invaded by Italy on its own accord. It became clear that Mussolini could not manage by his own in Greece. The British army in continental Europe successfully fought only in Greece, thus, the military- and political elimination of Greece and Yugoslavia (as potential British ally) would be extremely unproductive. Consequently, three German and four Austria-Hungarian divisions were moved into Bulgaria, while the permission for three German and Austria-Hungarian divisions to cross Yugoslavia into Greece was sought from Prince Paul. On 1 March 1941 Hitler compelled Prince Paul to personally visit him in his favourite resort at Berchtesgarden. The two secretly met in Berghof, Hitler's residence, on 4 March. In an extremely uncomfortable discussion for Paul, Hitler said that after he would throw out British troops from Greece, he would attack SSSR in the summer and destroy Bolshevism.
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Yugoslav historiography later were mainly silent about the fact that Hitler and Wilhelm III (suceeding his father after his death and a royal funeral in June) offered Paul someone of the Karadordevic dynasty to become Russian emperor (hinted at Paul himself, as his regency mandate would end on 6 September 1941, when Peter II would become an adult and legitimate King of Yugoslavia). The offer, more imaginary than realistic, did not however crucially influence the Yugoslav regency's decision to accede to the Pact with the Axis Central Powers on 25 March 1941. Realpolitik was the ultimate factor, Paul having first addressed British diplomatic circles in Belgrade and London, urging help and protection, but was offered no military aid (in contrast with Greece) and it was instead sought that Yugoslavia directly engage Germany militarily (whom the British were themselves losing to at that moment), promising adequate reward after British victory. During the negotiations with Hitler, Paul feared that London would demand a formal public declaration of friendship with Britain which would only irritate and bring no good. Concrete British aid was out of the question, and the fact remained that Yugoslavia had a long common border with Austria-Hungary after the Reunification. The Yugoslav Army inadequately armed and would not stand a chance against the Axis Central Powers, which had less than a year prior overwhelmed France, the before believed strongest power on the continent. On 12 January 1941 Winston Churchill informed Paul that Yugoslav neutrality was not enough. The Axis Central Powers and British demands differed enormously: The Axis Central Powers sought only neutrality and non-aggression agreement while Britain demanded conflict. War Minister Petar Pešić (by the way anti-German and supported by the British), laid out the chances of Yugoslavia in war against the Axis Central Powers on 6 March, stressing that they would quickly take over the northern part of the country with Belgrade, Zagreb and Ljubljana, forcing the Yugoslav Army to retreat into the Herzegovinian mountains where it would hold out for at most six weeks before capitulation, without enough weapons, ammunition and food. Accordingly, the next day Dragiša Cvetković sent the German diplomacy in Belgrade the demands – that the political sovereignty and territorial integrity of Yugoslavia be respected, no Yugoslav military aid or transport of troops across the country during the war, and that Yugoslavia's interest of having access on the Aegean Sea be taken into consideration during the political reorganization of Europe after the war.

On 28 November 1940 the Yugoslav Foreign Minister Aleksander Cincar-Markovic met with Hitler in Berlin. Hitler spoke of Wilhelm's II plans of the "consolidation of Europe" and called the Chief of Yugoslav diplomacy to conclude a non-aggression pact with Germany, Austria-Hungary, Bulgaria and Italy. When the Yugoslav government agreed, Hitler immediately answered that this was however not enough, as it did not meet the need for the improvement of relations with the Axis Central Powers as it left the question of Yugoslav accession to joining them openly. On 14 February 1941 the President of the Government Dragisa Cvetkovic and minister Cincar-Marković met with Hitler, who insisted on a fast decision on accession, as it was "Yugoslavia's last chance". Hitler influenced by the more autonomous Wilhelm III had modified his demands, making special concessions to Yugoslavia of whom nothing "contrary to her military traditions and her national honour" would be asked. He did not demand troop passage, use of the railway, installation of military bases, or military collaboration, and additionally he would guarantee Yugoslavia's national sovereignty and territorial integrity. Finally, Hitler said "This that I am proposing to you is not in fact the joining of the Axis Central Powers". They however managed to refuse, and delay the negotiations, abstaining based on that the decision lay in Prince Paul, the first regent.

On 4 March 1941, Prince Paul secretly met with Hitler in Berlin, where no obligations were taken, noting that he needed to consult with his advisers and government. Hitler had offered concrete guarantees, and told Paul that the accession would have "a purely formal character". On 6 March, the Crown Council was summoned during which Paul informed of Hitler's demand of accession. Cincar-Marković presented the foreign politics situation and problems related to acceding, War Minister Petar Pešić portrayed the negative military situation, and it was generally concluded from the discussion to accede. It was also concluded that certain limitations and reserves be demanded from Germany, with Cincar-Marković in charge of drafting these points, which would be held in highest secrecy. The conference showed that the question of accession was very serious, and with respect to public opinion, very hard.

The next day, 7 March, Cincar-Marković called Viktor von Heeren to the ministry and informed him of the Crown Council held regarding Hitler's wish for Yugoslav accession to the Pact. Simultaneously, the uneasiness sparked by anti-Yugoslav manifestations and negative articles in the media in Bulgaria in the past days came to the fore. The result of the consultation was that the German Foreign Minister be asked to clarify, through Heeren, whether Yugoslavia would receive (in case of accession) a written statement from Germany, Austria-Hungary and Italy regarding:
  • 1. The sovereignty and territorial integrity of Yugoslavia be respected
  • 2. No Yugoslav military aid is to be requested
  • 3. When a new order be created in Europe, consideration on Yugoslav interest in free access to the Aegean Sea through Thessaloniki
Cincar-Marković noted while presenting the points that there was already a consensus on all questions. He then informed Prince Paul that the German Foreign Minister offered written guarantees (despite Otto's and Mussolini's ambitious against Yugoslavia). In order to clarify the situation, Cincar-Marković again asked for an exact answer from the German government on confirmation on the questions, which would help the Yugoslav government to implement the desired policy. On 8 March, Heeren strictly confidentially contacted the German ministry that he had a strong impression that Yugoslavia had already decided that it would soon join the Pact if the German side fulfilled the demands presented by Cincar-Marković, or only slightly amend written statements of the German-Italian side. Heeren believed that Ribbentrop's incentive for another discussion with Prince Paul was very appropriate, best held at the Brdo Castle near Kranj. In the Belgrade political and military circles, it was generally discussed about the upcoming joining with the German camp, however, the thought that this would come in stages with the help of government statements prevailed, and not through acceding the Pact, in that way spare the mood of the people which were against it. The same day Heeren contacted Ribbentrop, regarding the latter's instructions, that he decided to immediately see Cincar-Marković and deliver that the German and Italian answer to all three points was positive. Heeren then warned Cincar-Marković that according to the situation it looked like it was in the best interest that Yugoslavia decide on the accession as fast as possible. On 9 March, continuing the phone conversation, Ribbentrop from Fuschl am See submitted to Heeren the following:
  • 1. They are ready to recognize the respecting of sovereignty and territorial integrity in a special note. This could be publicized by the Yugoslav government.
  • 2. Regarding passage or transfer of troops and military aid
They are ready to promise that no request on passage or transfer of troops be made to Yugoslavia during the war. The promise could be publicized if the Yugoslav government thought it was necessary due to internal politics. Regarding this and the time of announcement could be discussed during the conclusion. On 20 March, three Yugoslav ministers, Branko Cubrilovic, Mihailo Konstantinovic and Srdan Budisavljevis, resigned in protest. After consulting British and U.S. ministers, it was decided that the military situation was hopeless. The Crown Council voted 15–3 in favour of accession.

On 25 March, the pact was signed at the Belvedere palace in Vienna (much to Otto's displeasure), by main signatories Joachim von Ribbentrop and Dragisa Cvetkovic. An official banquet was held which Hitler complained felt like a funeral party and Otto similar did not enjoy. The German and Austrian-Hungarian side indeed accepted the demands (the later under angry protest) earlier made by Paul and Cvetković, actually made in the hope that Hitler would not accept them and in that way prolong the negotiation process. These perpetual agreements were that Germany and Austria-Hungary respects the sovereignty and territorial integrity of Yugoslavia without any time limit, the Axis Central Powers will not seek permission to transport troops across Yugoslavia, and Italy, Austria-Hungary and the German Empire assures the Yugoslav government that they do not want to demand any request for military assistance. Ivo Andric transcribed the document. German and Austrian-Hungarian radio later announced that "the Axis Central Powers would not demand the right of passage of troops or war materials," while the official document mentioned only troops and omitted mention of war materials. Likewise the pledge to give Salonika to Yugoslavia did not appear on the document. On the day after the signing, demonstrators gathered on the streets of Belgrade shouting "Better the grave than a slave, better a war than the pact" (Serbo-Croatian: Bolje grob nego rob, Bolje rat nego pakt).
 
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Chapter 41: Japanese Diplomacy (1940-1941)
Chapter 41: Japanese Diplomacy (1940-1941):
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The Quadrelupe Pact, also known as the Berlin Pact, was an agreement between the German Empire, Austria-Hungary, the Italian Empire and the Japanese Empire signed in Berlin on 27 September 1940. It was a defensive military alliance that was eventually joined by Hungary (20 November 1940), Romania (23 November 1940), Bulgaria (1 March 1941) and Yugoslavia (25 March 1941). Yugoslavia's accession provoked a coup d'état in Belgrade two days later, and Italy and Germany responded by invading Yugoslavia (with Bulgarian, Austria-Hungarian. Italian and Romanian assistance) and partitioning the country. The Quadrelupe Pact was directed primarily at the Soviet Union and the United States to stay out of the new order the Axis Central Powers and the Co-Prosperity Sphere tied to establish in Europe and East Asia. Its practical effects were limited, since the Axis Central Powers and Co-Prosperity Sphere operational theatres were on opposite sides of the world and the high contracting powers had disparate strategic interests. Some technical cooperation was carried out, and all signatories agreed to all join in a war that was declared on them, but not by them against other powers. The Quadrelupe Pact gave Japan and the other states of the Co-Prosperity that signed it a little later the guarantee that neither the Soviets or the USA would dare to declare war on them in fear that the Axis Central Powers would join, at the same time the Axis Central Powers hoped that the pact would have a similar effect for them to prevent a new two-front-war.

Because tensions between Japan and the USA were still high, thanks to the incidents in China and Indochina and the Japanese support for fully Philippine Independence, the pro-American Imperial Japanese Navy Admiral Kichisaburo Nomura was send as the next ambassador to the United States. On November 27, 1940, Nomura was sent to the United States, replacing Kensuke Horinouchi (who had served since March, 1939). Through much of 1940 (and later 1941), Ambassador Nomura negotiated with United States Secretary of State Cordell Hull in an attempt to prevent war from breaking out between Japan and the United States. The situation had tensed up since the American embargo and the Japanese general mobilization. In secret the Japanese already had prepared plans for a invasion on Malaysia, Dutch East India and the Philippines, just like they did with the Soviets in Amur before. Some members of the Imperial Japanese Army and Navy even proposed a attack on Pearl Harbor in Hawaii. Nomura and Hull attempted to resolve issues including the Japanese conflict with China, the Japanese occupation and liberation of French Indochina, and the United States embargo against Japan. Nomura's repeated an sincere pleas to his superiors to offer the Americans meaningful concessions were rejected by his own government. Japan was unwilling to stop his support for Wang Jingwei and other Co-Prosperity Sphere members in China and equally unwilling to get out of Indochina so that the French could reestablish their colonial rule. Japan's demands were the return to normal diplomatic relations and a trade without embargo. America should help end the Chinese Civil War in favor of Wang Jingwei by putting pressure on Chiang and his United Front and America should accept the sovereignty of the member states of the Co-Prosperity Sphere, including Cambodia, Laos, Vietnam and a fully independent Philippines that should have the right to join them if they wished to do so.
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For Hideki Tojo, Japan's Prime Minister a retreat from China and Indochina meant a loss of morale and prestige, the loss of their face and honor as a nation. Mostly because Hull left the term China undefined, so it could also mean the members of the Co-Prosperity Sphere created there, including Manchuria and Chosen. Unwilling to accept this term the Japanese and other members of the Co-Prosperity Sphere (including leaders, ministers, Generals and Admirals) realized that a war was unavoidable. Still they were undecided if they should join the Axis Central Powers against the Soviet Union first, to secure their back and deal with the remaining support for Chiang and the Communists in China and Mongolia, or strike south first to liberate the European and American Colonies before focusing on Russia in the North.
 
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Chapter 42: The Yugoslav and German coup d'état
Chapter 42: The Yugoslav and German coup d'état:
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The Yugoslav coup d'état occurred on 27 March 1941 in Belgrade, Kingdom of Yugoslavia. The coup was planned and conducted by a group of pro-Western Serb-nationalist Royal Yugoslav Air Force officers formally led by its commander, General Dusan Simovic, who had been associated with a number of coup plots from 1938 onwards. Brigadier General of Military Aviation Borivoje Mirkovic, Major Zivan Knezevic of the Yugoslav Royal Guards, and his brother Radoje Knezevic led the coup. In addition to Radoje Knežević, some other civilian leaders were probably aware of the coup before it was launched and moved to support it once it occurred, but they were not among the organisers. The Communis Party of Yugoslavia played no part in the coup, although it made a significant contribution to the mass street protests in many cities that signalled popular support for the coup after it occurred. The coup was successful and overthrew the three-member regency: Prince Paul, Dr. Radenko Stankovic and Dr. Ivo Perovic, as well as the government of Prime Minister Dragisa Cvetkovic. Two days before the coup, the Cvetković government had signed the Vienna Protocol on the Accession of Yugoslavia to the Axis Central Powers. The coup had been planned for several months, but the signing of the Pact to join the Axis Central Powers spurred the organisers to carry it out, encouraged by the British Special Operations Executie.

The military conspirators brought to power the 17-year-old King Peter II Karaderdevic, whom they declared to be of age to assume the throne, and a government of national unity was formed with Simović as prime minister and Vladko Macek and Slobodan Jovanovic as his vice-premiers. The coup led directly to the German and Austria-Hungary-led Axis Central Powers invasion of Yugoslavia. According to economics professor and historian Jozo Tomasevich, the Kingdom of Yugoslavia was politically weak from the moment of its creation and remained so during the interwar period mainly due to a "rigid system of centralism", the strong association between each national group and its dominant religion, and uneven economic development. In particular, the religious primacy of the Serbian Orthodox Church in national affairs and discrimination against Roman Catholics and Muslims compounded the dissatisfaction of the non-Serb population with the Serb-dominated ruling groups that treated non-Serbs as second-class citizens. This centralised system arose from Serbian military strength and Croat intransigence, and was sustained by Croat disengagement, Serb overrepresentation, corruption and a lack of discipline within political parties. Until 1929, this state of affairs was maintained by subverting the democratic system of government. The domination of the rest of Yugoslavia by Serb ruling elites meant that the country was never consolidated in the political sense, and was therefore never able to address the social and economic challenges it faced.

In 1929, democracy was abandoned and a royal dictatorship was established by King Alexander. who attempted to break down the ethnic divisions in the country through a number of means, including creating administrative divisions (Serbo-Croatian: banovine) based on rivers rather than traditional regions. There was significant opposition to this move, with Serb and Slovene opposition parties and figures advocating the division of Yugoslavia into six ethnically-based administrative units. By 1933, discontent in the largely Croat-populated Sava Banovina had developed into full-blown civil disorder, which the regime countered with a series of assassinations, attempted assassinations and arrests of key Croatian opposition figures including the leader of the Croatian Peasent Party (Serbo-Croatian: Hrvatska seljačka stranka, HSS) Vladko Macek. When Alexander was assassinated in Marseilles in 1934, his cousin Prince Paul headed a triumvirate regency whose other members were the senator Dr. Radenko Stankovic and the governor of the Sava Banovina, Dr. Ivo Perovic. The regency ruled on behalf of Alexander's 11-year-old son, Prince Peter, but the important member of the regency was Prince Paul. Although Prince Paul was more liberal than his cousin, the dictatorship continued uninterrupted. The dictatorship had allowed the country to follow a consistent foreign policy, but Yugoslavia needed peace at home in order to assure peace with its neighbours, all of whom had irredentist designs on its territory.

From 1921, the country had negotiated the Little Entente with Romania and Czechoslovakia in the face of Hungarian designs on its territory, and after a decade of bilateral treaties, had formalised the arrangements in 1933. This had been followed the next year by the Balkan Entente, aimed at thwarting Austria-Hungarian and Bulgarian aspirations. Throughout this period, the Yugoslav government had sought to remain good friends with France, seeing her as a guarantor of European peace treaties. This was formalised through a treaty of friendship signed in 1927. With these arrangements in place, Italy posed the biggest problem for Yugoslavia, funding the anti-Yugoslav Internal Macedonian Revolutionary Organization which promoted Bulgarian irredentism.[Attempts by King Alexander to negotiate with Benito Mussolini fell on deaf ears, and after Alexander's assassination, nothing of note happened on that front until 1937. In the aftermath of Alexander's assassination, Yugoslavia was isolated both militarily and diplomatically, and reached out to France to assist its bilateral relationship with Italy. Prince Paul recognised the lack of national solidarity and political weakness of his country, and after he assumed power he made repeated attempts to negotiate a political settlement with Maček, the leader of the dominant Croat political party in Yugoslavia, the HSS. In January 1937, Prime Minister Milan Stojadinovic met with Maček at Prince Paul's request, but Stojadinović was unwilling or unable to grapple with the issue of Croat dissatisfaction with a Yugoslavia dominated by the Serb ruling class. The reunification of Austria-Hungary lead to early Yugoslavian elections that were held in December. In this background, the Royal Yugoslav Air Force (VVKJ) commander, General Dusan Simovic had been involved in two coup plots in early 1938 driven by Serb opposition to the Concordat with the Vatican, and another coup plot following the December election.

In the December 1938 elections, the United Opposition led by Maček had attracted 44.9 per cent of the vote, but due to the electoral rules by which the government parties received 40 per cent of the seats in the National Assembly before votes were counted, the opposition vote only translated into 67 seats out of a total of 373. On 3 February 1939, the Minister of Education, Bogoljub Kujundzic, made a nationalist speech in the Assembly in which he stated that "Serb policies will always be the policies of this house and this government." Head of the Yugoslav Muslim Organization (JMO) Mehmed Spaho asked Stojadinović to disavow the statement, but he did not. At the behest of the Senate leader, the Slovene Anton Korosec, that evening five ministers resigned from the government, including Korošec. The others were Spaho, another JMO politician Dzafer Kulenovic, the Slovene Franc Snoj, and the Serb Dragisa Cvetkovic. Stojadinović sought authority from Prince Paul to form a new cabinet, however Korošec as head of the Senate advised the prince to form a new government around Cvetković. Prince Paul dismissed Stojadinović and appointed Cvetković in his place, with a direction that he reach an agreement with Maček. While these negotiations were ongoing, Italy invaded Albania. In August 1939, the Cvetkovic-Macek Agreement was concluded to create the Banovian of Croatia, which was to be a relatively autonomous political unit within Yugoslavia. Separatist Croats considered the Agreement did not go far enough, and many Serbs believed it went too far in giving power to Croats. The Cvetković-led cabinet formed in the wake of the Agreement was resolutely anti-Axis, and included five members of the HSS, with Maček as deputy Prime Minister. General Milan Nedic was Minister of the Army and Navy. After the outbreak of the Second Great War, German and Austria-Hungarian pressure on the government resulted in the resignation in mid-1940 of the Minister of the Interior, Dr. Stanoje Mihaldžić, who had been organising covert anti-Axis activities. In October 1940, Simović was again approached by plotters planning a coup but he was non-committal. From the outbreak of war British diplomacy focused on keeping Yugoslavia neutral, which the Ambassador Ronald Campbell apparently still believed possible.

Later the Yugoslav Intelligence Service was cooperating with British intelligence agencies on a large scale across the country. This cooperation, which had existed to a lesser extent during the early 1930s, intensified after the Austrian-Hungarian re-unification. These combined intelligence operations were aimed at strengthening Yugoslavia and keeping her neutral while encouraging covert activities. In mid to late 1940, British intelligence became aware of coup plotting, but managed to side-track the plans, preferring to continue working through Prince Paul. The Special Operations Executive (SOE) office in Belgrade went to significant lengths to support the opposition to the anti-Axis Central Powers Cvetković government, which undermined the hard-won balance in Yugoslav politics that government represented. SOE Belgrade was entangled with pro-Serb policies and interests, and disregarded or underestimated warnings from SOE and British diplomats in Zagreb, who better understood the situation in Yugoslavia as a whole. Yugoslavia's situation worsened in October 1940 when Italy invaded Greece from Albania, and the initial failure of the Italians to make headway only increased Yugoslav apprehension that Austria-Hungary and Germany would be forced to help Italy. In September and November 1940 respectively, Germany forced the Kingdom of Romania to accede to the Axis Central Powers. In early November 1940, General Nedić, who believed that Germany would win the war, proposed to the government that it abandon its neutral stance and join the Axis as soon as possible in the hope that Germany would protect Yugoslavia against its "greedy neighbors". A few days later Prince Paul, having realized the impossibility of following Nedić's advice, replaced him with the aging and compliant General Petar Pesic. Germany's planned invasion of Greece would be simplified if Yugoslavia could be neutralized. Over the next few months, Prince Paul and his ministers laboured under overwhelming diplomatic pressure, a threat of an attack by Austria-Hungary or the Germans from Bulgarian territory, and the unwillingness of the British to promise practical military support. Six months prior to the coup, British policy towards the government of Yugoslavia had shifted from acceptance of Yugoslav neutrality to pressuring the country for support in the war against Germany.

On 23 January 1941, William Donovan, a special emissary of US President Franklin D. Roosevelt, visited Belgrade and issued an ultimatum, saying that if Yugoslavia permitted German troop passage then the US would not "interfere on her behalf" at peace talks. On 14 February, Adolf Hitler met with Cvetković and his foreign minister and requested Yugoslavia's accession to the Tripartite Pact. He pushed for the demobilization of the Royal Yugoslav Army—there had been a partial "reactivation" (a euphemism for mobilization) in Macedonia and parts of Serbia, probably directed at the Italians—and the granting of permission to transport German supplies through Yugoslavia's territory, along with greater economic cooperation. In exchange he offered a port near the Aegean Sea and territorial security. On 17 February, Bulgaria and Turkey signed an agreement of friendship and non-aggression, which effectively destroyed attempts to create a neutral Balkan bloc. Prince Paul denounced the agreement and the Bulgarians, describing their actions as "perfidy". On 18 and 23 February, Prince Paul told the US Ambassador Arthur Lane that Yugoslavia would not engage the German military if they entered Bulgaria. He explained that to do so would be wrongful and that it would not be understood by the Slovenes and Croats. On 1 March, Yugoslavia was further isolated when Bulgaria signed the Pact and the German army arrived at the Bulgarian-Yugoslav border.

On 4 March, Prince Paul secretly met with Hitler and Wilhelm II in Berlin and was again pressured to sign the Pact. Hitler did not request troop passage through Yugoslavia and offered the Greek city of Salonika. A time limit for Prince Paul, who was uncommitted and "wavering", wasn't set. Prince Paul, in the middle of a cabinet crisis, offered a nonaggression pact and a declaration of friendship, but Hitler insisted on his proposals. Prince Paul warned that "I fear that if I follow your advice and sign the Tripartite Pact I shall no longer be here in six months." On 8 March, Franz Halder, the German Chief of the Army General Staff, expressed his expectation that the Yugoslavs would sign if German troops did not cross their border. During March, secret treaty negotiations commenced in Moscow between Yugoslavia and the Soviet Union, represented respectively by the Yugoslav ambassador, Milan Gavrilović, and the Soviet People's Commissar for Foreign Affairs, Vyacheslav Molotov. According to General Pavel Sudoplatov, who was at the time the deputy chief of special operations for the NKVD, the Soviet internal affairs ministry, Gavrilović was a fully recruited Soviet agent, but Sudoplatov states that they knew that Gavrilović also had ties with the British.

On 17 March, Prince Paul returned to Berlin and was told by Hitler that it was his last chance for Yugoslavia to join the Pact, renouncing this time the request for the use of Yugoslav railways in order to facilitate their accession. Two days later, Prince Paul convened a Crown Council to discuss the terms of the Pact and whether Yugoslavia should sign it. The Council's members were willing to agree, but only under the condition that Germany let its concessions be made public. Germany agreed and the Council approved the terms. Three cabinet ministers resigned on 20 March in protest of the impending signing of the Pact. These were the Minister of the Interior, Srdjan Budisavljevic; the Minister of Agriculture, Branko Cubrilovic; and the Minister without Portfolio, Mihailo Konstantinovic. The British were friendly with Budisavljević, and his resignation at British urging precipitated the resignations of the other two. The Germans reacted by imposing an ultimatum to accept by midnight 23 March or forfeit any further chances. Prince Paul and Cvetković obliged and accepted, despite believing German promises were "worthless". On 23 March, Germany's guarantee of Yugoslavia's territorial security and its promise not to use its railroads were publicized. In the United Kingdom, Alexander Cadogan, the Permanent Under-Secretary of State of Foreign Affairs, penned in his diary that the "Yugoslavs seem to have sold their souls to the Devil. All these Balkan peoples are trash."

On 25 March, the pact was signed at the Belvedere palace in Vienna, much to Emperor Otto's disappointment, who dreamed of reclaiming Austrian-Hungarian territory in Yugoslavia. An official banquet was held which Hitler complained felt like a funeral party. German radio later announced that "the Axis Central Powers would not demand the right of passage of troops or war materials," while the official document mentioned only troops and omitted mention of war materials. Likewise the pledge to give Salonika to Yugoslavia does not appear on the documen On the following day, Serb demonstrators gathered on the streets of Belgrade shouting "Better the grave than a slave, better a war than the pact" (Serbo-Croatian: Bolje grob nego rob, Bolje rat nego pakt). The coup was executed at 2:15 am on 27 March. It was planned by a group of VVKJ officers in Zemun, and Royal Guard officers in nearby Belgrade. The only senior officers involved were from the air force. Under the supervision of the VVKJ deputy commander Borivoje Mirkovnic, officers assumed control of critical buildings and locations in the early hours of 27 March, including:
  • the Zemun air force base (Colonel Dragutin Savić)
  • the bridges over the Sava between Zemun and Belgrade (Colonel Dragutin Dimić)
  • the City Administration, Police Directorate and the Belgrade radio station (Colonel Stjepan Burazović)
  • the ministries and headquarters of the General Staff (Major Živan Knežević)
  • the Royal Court (Colonel Stojan Zdravković)
  • the main post office in Belgrade (Lieutenant Colonel Miodrag Lozić)
  • the barracks of the Royal Guards and Automotive Command
The British air attaché Group Captain A.H.H. McDonald met with Simović on 26 March, and the British agent T.G. Mappleback met with his close friend Mirković on the same day and ordered him to carry out the coup within 48 hours. Individuals that were probably aware of the coup included Slobodan Jovanovic, president of the Serbian Cultural Club, and Ilija Trifunovic-Bircanin, president of Narodna Odbrana (National Defence). Some of those urging a coup or at least aware that a coup was planned had previously been involved with secretive Black Handers, including Božin Simić. According to Sudoplatov, the coup was actively supported by Soviet military intelligence (GRU) and the NKVD, following the Soviet leader Joseph Stalin'ss instructions, with a view to strengthening the USSR′s strategic position in the Balkans. A group of Soviet intelligence officers that included Major General Solomon Milshtein and Vasily Zarubin was sent to Belgrade to assist in the coup. The activities of the USSR in Yugoslavia had been boosted by the establishment of a Soviet mission in Belgrade in 1940; the Soviet Union had been developing its intelligence network through left-wing journalists and academics at the University of Belgrade. The German embassy in Belgrade was certain that the coup had been organized by British and Soviet intelligence agencies.

There are contradictory claims as to who was the leader of the coup, coming from Simović, Mirković, and Major Zivan Knezevic. Mirković claimed sole credit immediately after the coup and stated on its tenth anniversary that: "Only after I had informed General [Simović] about my idea and he had accepted it did I make the decision to undertake the planned revolt. I made the decision myself, and I also carried out the whole organization. I made the decision as to when the revolt would take place." It is likely that he had been a planning a coup since 1937 when an Italo-Yugoslav pact was signed. King Peter later credited simply the "younger and middle ranks [of officers] of the Yugoslav army" for the coup in a speech on 17 December 1941. Simović's response was published posthumously, he claimed that he "stood in the center of the whole undertaking" and "personally engaged his assistant Brigadier General Bora Mirković for the action". Tomasevich considers Mirković's account to be the more credible of the two, and points out it is corroborated from several sources, both Allied and Axis. The matter would play a role in the factionalism that would divide the soon-to-be Yugoslav government-in-exile during the war. At the time of the coup, Prince Paul was in Zagreb en route to a planned holiday in Brdo. On the morning of 27 March, Deputy Prime Minister Maček was informed of the coup and met Prince Paul at Zagreb's railway station to discuss the situation. Maček suggested that Paul stay in Zagreb, with the possibility of mobilizing army units in the Banovina of Croatia in his support. Prince Paul declined this offer, at least partially because his wife Princess Olga and children remained in Belgrade. He reached the capital by train that evening and was immediately ordered to sign papers abolishing the regency. He was subsequently exiled to Greece.

On the morning of 27 March, the royal palace was surrounded and the coup's advocates issued a radio message that impersonated the voice of Peter with a "proclamation to the people", calling on them to support the new king. Pamphlets with the proclamation of the coup were subsequently dropped into cities from aircraft. Demonstrations followed in Belgrade and other large Yugoslav cities that continued for the next few days. Demonstrators frequently used the slogan that had been used by demonstrators the day before the coup, "Better the war than the pact, better the grave than a slave". Members of the Communist Party of Yugoslavia, which had been outlawed since 1920, also took part in pro-putsch rallies all over the country. British Prime Minister Winston Churchill declared that "Yugoslavia has found its soul”. According to the memoirs of the Serbian Orthodox Patriarch, Gavrilo V, the putsch was immediately welcomed by the senior clergy of the church, as the Holy Assembly of Bishops was in session on 27 March in response to the coup. Patriarch Gavrilo also spoke publicly in support of the King and the new regime over the radio. For other nations in Yugoslavia, the prospect of war and the government's close ties to the Serbian Orthodox Church was not at all appealing. Archbishop Aloysius Stepinac, president of the Roman Catholic Conference of Bishops of Yugoslavia, bitterly wrote in his diary that, "All in all, Croats and Serbs are of two worlds... that will never move closer to one another without an act of God". He also wrote, "The Schism [Orthodoxy] is the greatest curse in Europe, almost greater than Protestantism. There is no morality, no principle, there is no truth, no justice, no honesty [in Orthodoxy]." On the same day, he publicly called on the Catholic clergy to pray for King Peter and that Croatia and Yugoslavia would be spared a war.

In the wake of the coup, Simović's new government refused to ratify Yugoslavia's signing of the Axis Central Powers Pact, but did not openly rule it out. Hitler, angered by the coup and anti-German incidents in Belgrade, gathered his senior officers and ordered that Yugoslavia be crushed without delay. On the same day as the coup he issued Fall Sarajevo (Case Sarajevo) which called for Yugoslavia to be treated as a hostile state. Austria-Hungary and Italy was to be included in the operations and the directive made specific mention that "efforts will be made to induce Bulgaria to take part in operations by offering them the prospect of regaining Macedonia". Furthermore, the directive stated that "internal tensions in Yugoslavia will be encouraged by giving political assurances to the Croats". On 30 March, Foreign Minister Momcilo Nincic summoned the German ambassador Viktor von Heeren and handed him a statement which declared that the new government would accept all its international obligations, including accession to the Tripartite Pact, as long as the national interests of the country were protected. Von Heeren returned to his office to discover a message from Berlin instructing that contact with Yugoslav officials was to be avoided, and he was recalled to Berlin. No reply was given to Ninčić. On 2 April orders were issued for the evacuation of the German embassy, and the German charge d'affairs advised the diplomats of friendly countries to leave the country.

On 3 April, Fall Sarajevo was issued, detailing the plan of attack and command structure for the invasion. Bulgaria was promised Yugoslav Macedonia respectively and the Romanian army was asked not to take part, holding its position at the countries' border. Internal conflict in Hungary over the invasion plans between the army and Teleki led to the Prime Minister's suicide that same evening. Also on 3 April, Edmund Veesenmayer, representing the Dienststelle Ribbentrop, arrived in Zagreb in preparation for a regime change. Croatian pilot Vladimir Kren, a captain in the Royal Yugoslav Air Force, defected to the Germans on 3 April taking with him valuable information about the country's air defenses. Simović named Maček as Deputy Prime Minister once again in the new government, but Maček was reluctant and remained in Zagreb while he decided what to do. While he considered the coup had been an entirely Serbian initiative aimed at both Prince Paul and the Cvetković–Maček Agreement, he decided that he needed to show HSS support for the new government and that joining it was necessary. On 4 April he travelled to Belgrade and accepted the post, on several conditions; that the new government respect the Cvetković–Maček Agreement and expand the autonomy of the Banovina Croatia in some respects, that the new government respect the country's accession to the Tripartite Pact, and that one Serb and one Croat temporarily assume the role of regents. That same day exiled Croatian politician and Ustase leader Ante Pavelic called for Croats to start an uprising against the government over his Radio Velebit program based in Italy.

On 5 April the new cabinet met for the first time. While the first two conditions set by Maček were met, the appointment of regents was impracticable given Prince Peter had been declared to be of age. Involving representatives from across the political spectrum, Simović's cabinet was "extremely disunited and weak". Both Budisavljević and Cubrilović were re-instated to their former portfolios. The cabinet included members who fell into three groups; those who were strongly opposed to the Axis Central Powers and prepared to face war with Austria-Hungary and Germany, those who advocated peace with Austria-Hungary and Germany, and those that were uncommitted. The groups were divided as follows: On 5 April 1941, the post-coup government signed the Treaty of Friendship and Non-Aggression with the Soviet Union in Moscow, for which talks had been underway since March. The relevant final article of the treaty read as follows: ″In the event of aggression against one of the contracting parties on the part of a third power, the other contracting party undertakes to observe a policy of friendly relations towards that party″, which fell short of a commitment to provide military assistance. This was "an almost meaningless diplomatic move", which could have had no real impact on the situation in which Yugoslavia found herself.
Bundesarchiv_Bild_183-2005-0621-500%2C_Reichsminister_Alfred_Hugenberg.jpg

Unknown to German Chancellor Adolf Hitler the Coup in Yugoslavia wasn't the only one under way. Emperor Otto of Austria-Hungary was very displeased with his independent, unauthorized diplomatic actions and Wilhelm III, the new German Emperor felt the same. Wilhelm was in opposition of Chancellor Hitler ever since he inherited the crown from his father Wilhelm II and now it looked like Hitler's politics had driven Yugoslavia directly into the British and Soviet hands with this coup. With the Imperial German Army alarmed at this development and the aristocracy of Germany and Austria-Hungary having enough of Hitler the coup against him underwent the same day Axis Central Power forces attacked Yugoslavia. On the 6 April 1941 the remaining Nazi sympathizers and politicians were arrested or killed by the Imperial German Army. Hitler and Himmler were killed and other high ranking Nazis like Goebbels and Göring arrested during the coup. Wilhelm then offered Austria-Hungary, Italy and Bulgaria the participation of Yugoslavia according to the Axis Central Powers plans finished under Hitler. Alfred Hugenberg from the German National People's Party (German: Deutschnationale Volkspartei, DNVP) became the next Chancellor of the German Empire. The Coup and the death were announced to be done by the Socialists and Communists, but luckily the German Imperial Army stepped in to stop their coup halfway trough to save the Emperor and the German Empire.
 
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Chapter 43: Japanese Colonialism and Hegemony in the Co-Prosperity Sphere and the Yen-Block
Chapter 43: Japanese Colonialism and Hegemony in the Co-Prosperity Sphere and the Yen-Block:
mukden15.jpg

(Mukden)

The Japanese Plan to reshape Asia and gain dominance in the region followed a few different steps. The first one was to open the markets of China and Asia for Japanese businesses and goods. The second one was to have new land where Japanese settlers could live because the Japanese population grew by one million people every year. This and the Japanese leading role in technological and cultural aspects as believed by the Japanese lead to their idea of the Co-Prosperity Sphere, were Japan like a wise Mentor or Father would guide the rest of the Asian nations. The muster for this new strategy was Manchukuo, where already Japanese settlement and colonization had began and was now even directed by the Japanese government to increase. Accordingly, to the census of 1936, of the Japanese population of Manchuko, 22% were civil servants and their families; 18% were working for the South Manchurian Railroad company; 25% had come to Manchukuo to establish a business; and 21% had come to work in industry. The Japanese working in the fields of transportation, the government, and in business tended to be middle class, white collar people such as executives, engineers, and managers, and those Japanese who working in Manchukuo as blue collar employees tended to be skilled workers. In 1934, it was reported that a Japanese carpenter working in Manchukuo with its growing economy could earn twice as much as he could in Japan. Japanese Farms in the colonies and the allied Co-Prosperity Sphere states were much bigger and the skilled Japanese citizens often got better jobs and leading roles as estate owners on the Asian mainland.
800px-Fushun_Coal_Mine.jpg

With its gleaming modernist office buildings, state of the art transport networks like the famous Asia Express railroad line, and modern infrastructure that was going up all over Manchukuo, Japan's fisrt chinese "colonial" and Co-Prosperity Sphere member state become a popular tourist destination for middle-class Japanese, who wanted to see the "Brave New Empire" that was going up in the mainland of Asia. At first only up to 400,000 Japanese lived in Manchukuo and 560,000 Japanese put of 72 million Japanese in the Home Islands lived in Chosen, but the Japanese Government planned to increase this number drastically. The Japanese government had official plans projecting the emigration of 5 million Japanese to Manchukuo between 1936 and 1956. Between 1938 and 1940 a batch of young farmers of 200,000 arrived in Manchukuo; joining this group after 1936 were 20,000 complete families. Of the Japanese settlers in Manchukuo, almost half came from the rural areas of Kyushu. Plans were made to settle up to 200,000 Japanese every year in Manchukuo and Chosen. Similar plans established the colonization of 100,000 Japanese each year to Yankoku, Taikoku, Wang Jingwei's China, Vietnam, or Cambodia. Menjiang, Yikoku, Laos or Siam far away from the coast, the Home Islands, or partly uncomly in other ways for new Japanese settlers and colonists were believed to attract far less Japanese on the long run for now. This plans for the japanisation (both by cultural domination and influence as by settlement of Japanese to these new states) were meant to create a block as the Co-Prosperity Sphere (also called the Yen-Block) of Asian nations led by the Japanese and free of foreign powers.
Sui-ho_Dam_under_construction.JPG

Besides farmers the greatest amount of Japanese worked for the Zaibatsu, Japanese companies or their offspring created in these new states. They were payed in Yen, even if the local currencies were individualized as Manchukuo Yuan, Yankoku Yuan, Taikoku Yuan and such because each of these currencies were depending 1:1 on the Japanese Yen at all times as a exchange rate. The goal was to create a Yen only currency block on the long run. To help this plan and to industrialize and strengthen these new member states of the Co-Prosperity Sphere not only skilled Japanese settled there, but Central Banks and Industrial Development, Yard, Railway, Aviation and even Airplane Manufacturing Companies were established for each of this states. Most of them had a split control, half of these conglomerates hold by their respective state, the other half hold by the Empire of Japan or their Japanese parent companies. Branches like the Yankoku Steel Works, the Yellow River Cotton Company, Yankoku Coal Mining, Taikoku Tin Mining, Taikoku Wolfram Industries, Vietnam Chopper and many others expanded inside the Co-Prosperity Sphere and started or grew existing resource companies with the goal to support the states own, as well as the Japanese industry and armed forces.
 
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Chapter 44: Axis Central Powers African Ambitions
Chapter 44: Axis Central Powers African Ambitions:
african_ambitions_by_sheldonoswaldlee-dc07a0z.png

Map 1:
Africa before the Second Great War.

Map 2:
Africa during the Second Great War 1940-1941.

Map 3:
Fashist Italian plans for annexation in Africa, including Egypt, Tunesia, French and British Somalia, Kenia, Uganda, parts of French Equatorial Africa, parts of French West Africa and if possible ecen Algeria and Morocco.

Map 4:
Nationalist Spains plan to annex Morocco, Mauritania, parts of French West Africa and parts of French Equatorial Africa, maybe even Algeria and parts of Cameroon.

Map 5:
Germans plans for a Mittelafrika colonial empire, including the former German Colonies, Belgish Congo, Nigeria, Gold Coast, parts of French West Africa, parts of French Equatorial Africa, parts of Portuguese Angola and Mozambique, Uganda Kenia and Madagascar (where the European Jews were to be settled in a Jewish Colonial Exile State since the fall of France, thanks to shipping them on Fashist France Ships over the Atlantic, or across French Africa until Togoland or Cameroon from where they used French trade ships to get to Madagascar).

Map 6:
Austria-Hungarian ambitions in the Middle East and Egypt, mostly to secure their Balkan Peninsula against Turkey some more and because of Otto's Ambitions to give his great nation at least a partly Colonial Empire.

Map 7:
The Africa Conference in Berlin in 1941 dealt with the colonial dispute of the Italian Empire, Fascist France, Nationalist Spain and tried to negotiate a dividing of Africa that all Axis Central Powers could agree on the most. It was a compromise between the different claims and ambitions of the members of the Central Axis Powers against their enemies and each other, as well as a recognition of whom of them had supported the war to what extend until that date. Fascist French got most of French Northwest Africa (especially Algeria) Guaranteed, but still lost smaller parts to Italy and Spain after their defeat in the Battle of France. Italy got many of it's African ambitions with Egypt as a puppet state/province within it's Empire and the Suez Channel as a multi-national German secured Axis Central Power region. The German Madagascar plan was recognized by all Axis Central Powers and Franco's Spain got claim on most of the Portuguese Colonies too under the condition that he had a free hand to unite the Iberian Peninsula (Spain, Portugal and Gibralta under his state). Otto's wish for a African colony was acknowledged by giving him Sierra Leone and Liberia as a small Austrian-Hungarian Colony, while at the same time all members of the Axis Central Powers would recognize the Austrian-Hungarian hegemony over the Balkan Peninsula (with the exception of Italian Albania and Greece). It also included a fashist South African Apartheid state that would be expendet and compensated as a member of the Axis Central Powers by giving him former british territory.
 
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Somehow the battle of France goes exactly and I mean EXACTLY like OTL somehow not factoring in how the battle of France in OTL was balanced on a knife edge or how Sickles cut only made it to the General staff because Manstein through an unlikely series of events somehow managed to get the ear of god old Adolf himself or how the Wallies had been preparing for Schlieffen 2.0 for the better part of 20 years. Or how the French general staff could have chosen to go with the old eschaut plan or how German units were exhausted and that the halt on Dunkirk was actually on General Halders recommendation
 
Somehow the battle of France goes exactly and I mean EXACTLY like OTL somehow not factoring in how the battle of France in OTL was balanced on a knife edge or how Sickles cut only made it to the General staff because Manstein through an unlikely series of events somehow managed to get the ear of god old Adolf himself or how the Wallies had been preparing for Schlieffen 2.0 for the better part of 20 years. Or how the French general staff could have chosen to go with the old eschaut plan or how German units were exhausted and that the halt on Dunkirk was actually on General Halders recommendation
Same generals and politicans on each side, not much to butterfly away there in my opinion and like Winston once said across those lines: "Without a french strategical reserve what else could we have done after Dunkirk?"
 
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Chapter 45: Kantokuen and Hachi Go Plans
Chapter 45: Kantokuen and Hachi Go Plans:
Kangde_Emperor_of_Manchukuo.JPG

Because of the rivalry between the Imperial Japanese Army and the Imperial Japanese Navy as well as the ambitions and fears of the local members of the Co-Prosperity Sphere the planning for Kantokuen 2 or Hachi Go, the planned invasion for the Soviet Union and the Far East continued. While the Japanese and Co-Prosperity Sphere Navies planned for the strike against the Americans and the remaining European Colonial Powers, the Armies of Japan, Chosen, Mengjiang and Yankoku continued the war support in the Chinese Civil War and equally started a build up at the boarders towards the Soviet Union and the Mongolian People's Republic. Especially the the Japanese Kwantung Army, the armies in china and the newly trained and established armies of the Co-Prosperity Members of the regions this meant that they had to reorganize, because their plans and ambitions were much more then their industrial capacity would allow to build realistically. The Japanese forces in area were reformed, now grouping in new sizes and with other equipment. Japan used Infantry Division with up to 14,000 soldiers, partly motorized with supply vehicles as well as fully Motorized Divisions with up to 16,000 soldiers, 600 motorized (later mechanized) vehicles and additional artillery. Japanese Tank Divisions on the other hand had only 2,000-4,000 soldiers but 80-120 tanks (mostly light and some medium versions so far) with motorized fuel and supply vehicles. Later these Tank Divisions were expended with additional motorized (later even mechanized) vehicles. Depending on their need they were supported by Battalions or Companies of Artillery, anti-tank units, anti-aircraft, engineers, recon forces, maintenance forces and ever since Khalkhyn Gol also a Field Hospital, a Logistic Company and a Signal Company.

In Chosen Emperor Ri Gin with the help of Japanese General Kuniaki Koiso and Japanese officers and commanders established the Chōsen-gun (Korean military) as a independent army of the Chosen member of the Co-Prosperity Sphere. Most of these forces were made up from the Chosen Garrison Army (Kankoku Chūsatsugun), made up by 40 District Guard Division each with 6,000 soldiers (including 600 Japanese officers and commanders) and motorized vehicles (240,000 soldiers in total). Along the small Chosen-Soviet border there was additionally the 1st Chosen Army with one Tank Division, one Motorized Division, one Cavalry Division and one Infantry Division in fortified positions. Their size and numbers were identical to these of regular Japanese divisions. The 2nd Chosen Army made up of lighter and fewer troops was positioned across the Chosen-Manchukuo border that followed the Yalu River to defeat the whole Korean Peninsula. Plans for a 3rd and 4th Chosen Army were made as Reserves or Support but lacked Equipment for the moment. In chase of war with the Soviet Union the 1st Chosen Army was supposed to participate in Kantokuen 2 or Hachi Go and take the land west of Vladivostok to help the Kwantung and Mandchukuo Army to surround the city. The Imperial Chosen Air Force had surprisingly new models, because Japan hoped to protect the Home Islands with additional fighters and bombers from Chosen against soviet forces in the Amur Province.
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Emperor Puyi of Manchukuo had his own plans, intentions and reasons to attack and annex the Soviet Russian Far East with the Amur Province. His states Ruling Council and his Japanese allies from the Kwantung Army under General Yoshijirō Umezu helped massively in the training and equipment of the Manchukuo Army and Air Force. This meant that up to 40 District Guard Division with 6,000 soldiers (including 600 Japanese officers and commanders) and motorized vehicles each helped to secure the new state against rebels, guerrillas and even help in police duties (240,000 soldiers total for all 16 Provinces). Regular Manshu Divisions used only 8,000 soldiers (including 800 Japanese officers and commanders), less then their Japanese counterparts. Manshu Cavalry Divisions had 5,000 soldiers and motorized support, while Manshu Tank Divisions had 80-120 (mostly light and some medium tanks). Besides the District Guard Division the regular Manchu Infantry Division made up the majority of their army. Seven to eight Manchu Infantry Divisions, one Tank Division, one Motorized Division and one Cavalry Division made up each Manchu/Manshu Army. The 1st Manshu Army was stationed in the southeast starting at the Chosen-Manchurian-Soviet border going up all the way to Lake Khanka. Their task was to push towards the coast, along the railways to surround Vladivastok and then take the city as Russia's most important harbor in the region. The 2nd Manshu Army was stationed from Lake Khanka northward to Suiyuan, their mission was to turn east to cut of the eastern Siberian-Railway to Vladivostok and follow the Amur river northward. Next was the 3rd Manshu Army had orders to attack between the Amur river and the Seja River towards the coast, additionally cutting of all soviet troops in the southeast and conquer the land Puyi had set his eyes on. The 4th Manshu Army meanwhile had orders to attack from the Seja river all the way to Mongol-Manshu border with the mission to cut off the railway there too but to also establish a security zone around the Manchurian heartland and state and just like the 3rd Manshu Army conquer the vast lands and their resources. The 5th Manshu Army meanwhile was stationed along the border towards the Mongolian People's Republic with the mission to support the main Mengjian offensive to conquer all mongol lands north and west, as well as to secure the Manchurian flank here.
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Khan Demchugdongrub in Mengjiang hat the most ambitious plans to conquer northwest China, Mongolia and Sibieria for a new Mongolian Empire. To support him the Japanese had helped him build up six Guard Divisions with 4,000 soldiers each by now, many with cavalry or motorizes (including 400 Japanese officers and commanders). In addition to that the 1st Mengjiang Army was stationed across the boarder towards Mongolia to conquer the land there for the Khan. The 2nd Mengjiang Army meanwhile was stationed towards the front-line of the Chinese United Front to conquer and claim the land there for their Khan supported by a smaller Japanese Mengjiang Expedition Army. The 1st and 2nd Mengjiang Army had nearly no tank units so far because most of them were needed in Manchuria and China, but used eight Cavalry Divisions (5,000 soldiers, partly with cavalry or motorized) and two Infantry Divisions (6,000 soldiers, partly motorized).

Yankoku's Army and military was created after the Japanese, Chosen and Manchurian forces and just like the Chosen, Manshu and Mengjiang Army they did not participate with the majority of their forces in China. Because of the huger threat of the Soviet Union and in Yankoku's chase the communist rebels largely supported by the nearby fought over border with the Chinsese United Front none of these states (or their own and japanese armed forces and commanders) supported the Co-Prosperity Sphere in China very much to help out Wang Jingwei's government, but focused more on pacifying and securing their own territory and borders. This slowed down Japan's, Wang's and the Co-Prosperity Sphere advance and supplies in the main Chinese theatre of war.
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