Note: This is a reformulation of a TL originally written for s.h.w-i several years ago
During his years of misery, when formulating his horrible political thoughts an Austrian wanderer in Münich, later on a prisoner of Landsberg, believed firmly in role of Great Men in history. The greatest German of recent times was Bismarck, a man who was widely seen as the diplomatic mastermind of 19th Century propelling unification of Germany and her rise to Great Power status. When studying the life of this great man the former Austrian tramp thought about the longevity of his life, the amount of work the Great Man could achieve when over 50 years old. This was to be his great goal...
1. The Early years of National Socialist adminstration 1933 - 1942
1933
Hitler declares his Battle for Work: "After fifteen years you will not recognize Germany". Massive investment in public works, industry, education and housing. With heavy state support, Lufthansa announces intention to begin transatlantic passenger service within five years, a new plane "Condor" will be developed for this route. Additionally, Lufthansa announces ambitious specifications for a new European routes airliner; 40 passengers, 300km/h cruise speed, 2000km range. Both aircraft are intended not only for Lufthansa use, but also to capture airliner markets and additionally to stimulate airplane development.
1935
Germany starts rearmament. Anglo-German naval agreement; Size of Kriegsmarine restricted to 35% of the Royal Navy. Royal Navy sighs in relief, as the funds are tight and British shipbuilding industry has taken heavy losses during 1920's and the Great Depression. Luftwaffe is formed. In an Anglo-German Air War agreement it's size is limited to 40% of RAF strength. Mutual inspection is allowed.
Conscription introduced in Germany. As an unilateral confidence building measure the peacetime size of German Army is limited to similar size as British Army. Mutual inspection is allowed between Britain and Germany.
These moves are, as well as made to guard the industrial expansion, also made in order to make a split between France and Britain. At this time the grand strategy of Hitler is to make an Anglo-German alliance against France and Soviet Union. French reaction to the abandonment of Versailles limits is a meager build-up.
1936
Spanish Civil War begins. Italy and Germany give assistance for the Spanish Nationalists, Soviet Union aids Republicans. While the conflict creates tensions, these are mostly limited to intelligentsia and radical workers. As Europe begins to heal from the depression, German products, including new radios and Volkswagen cars, begin to find new mass markets.
Lufthansa transatlantic service using FW Condors begins, numerous airlines order the design. Junkers "Friedenplane" 40 passenger airline start to come out of the production lines and proves to be a tough competitor for DC-3, eventually winning more orders and establishing Germany as the most significant producer of commercial airplanes in the world.
In railway arena German introduction of diesel locomotives is stimulating both orders and competition in various countries. Switch to diesel locomotives is more energy-efficient and also stimulates development of heavy diesel engines for ships and submarines.
1937
Japan invades China. German diplomats urge caution and continue supplying Nationalists with military equipment and training. Less worried about Europe, Britain and France also support the nationalists. Stalin, who does not want to lose his influence in the Far East and wants to keep his border safe from Japan, also supports the Nationalists. Germany continues to drive Jews into exile. Jewish population strongly increases in Israel as
result.
1938
In response to increasing German competition, France and Britain start a number of government-funded programs in fields of aviation and automotive production. Citroën introduces it's CV2, which starts to compete with Volkswagen. In Britain, Brabazon committee favours development of two transformational commercial aircraft types.
Stalin, increasingly isolated, decides to start incite revolts in French and British colonies, as a measure to weaken the west. The gap between Soviet and Western living standards is responded with more oppression. The policy of Popular Front is denied, and communist controlled trade unions are instructed to combat fascism-imperialism shrouded in the veil of social democracy.
The UK finds it increasingly difficult to keep India. There is serious discussion about giving India a dominion status.
1939
First jet flies in Germany. RLM specifications for a new generation of combat aircrafts are made. Lufthansa starts studies of a jet powered airliner. Heavy German economic investment activity in South America, Eastern Europe and Scandinavia.
1940
Advent of German "Einheitsschiff" modular constructed merchant ship in new Blohm&Voss shipyard. This ship with diesel engines is intended to power German merchant fleet and also to be sold on to foreign markets. Norway, which has a lot of Nazi investment for it's aluminium production, is particularly interested and state supported German yards efficiently compete with private Swedish yards.
1940
In the US presidential elections, Dewey wins narrowly against Roosevelt. Young president is seen as one finally capable of truly tackling depression and the increasing economic affluence.
1941
Start of atomic energy (and bomb) projects in France, UK, Soviet Union, Japan and Germany. US Navy starts the secret "Manhattan" project, aiming to give atomic propulsion for submarines and surface ships. Theoretical studies on atomic bomb started, research on special atomic bomb equipped submarine starts. (a la original November-class)
German Army orders the V2 -rocket to be developed as tactical weapon capable of dismantling strongest enemy bunkers. Sufficient accuracy is expected via new radiotechnical guidance systems. Operational readiness is expected by late 1940's.
Luftwaffe orders development of a series of new stand-off weapons, Fritz-X and Hs-293. A command guidance is sought after first, to be improved by rapidly improving television and in the future, perhaps by radar. Follow-on model to V-1 under development is ordered to have a 1000km range, 1000km/h speed and 1000kg warhead. Studies for a possible radar guidance system starts.
1942
Wide-scale public unrest in India, resulting in augmentation of British troops. Communist-nationalist insurgencies in French Indochina and Indonesia start. In Western Europe there are strikes to support "Quit Imperialism" movement, as ordered by the Soviet Union.
At the same time, Japan starts studies of various national suicide options. War in China is going even more badly than OTL and none of the extra-Asian powers is distracted by European situation. Oil can be bought in limited amounts from Mexico, but it has to be paid for. However, Japanese leadership trust that various insurgencies and the domestic resistance to colonial wars mean that European colonial powers are not really committed to their Asian Empires. Americans are wimps, and can be scared away by decimating their fleet. To put it simply, one push by Iron Will and the house of cards will crumble.
On June 22 1942 the Japanese National Suicide begins, as Japanese Fleet makes a surprise attack on US Navy and simultaneously conducts a series of amphibious landings in French Indochina. Dewey declares the June 22 to be the Day of Infamy while nationalistic and racistic fervor sweeps the United States.
Hitler is stunned by the Japanese move, but sees the possibilities. He has considered the Japan as an possible ally, but sees there's no real chance for helping Japan. Now there's a chance to align with the Britain, as well as to support China as an possible future ally. In a Sportspalast speech he declares war on Japan, members of an inferior race. He reminds the public of the Boxer Rebellion, when forces of civilization put down the anarchy. Just a few days afterwards Mussolini declares war on Japan too, mostly in order to be where the action is.
The British, French and the US are cautious of German and Italian offers but have really no chance but accepting them. Germany starts to build an expeditionary force for China. A small naval task force is sent to the Far East mostly in order to gain experience and and to gather information on premium Western navies.
The Soviet Union decides to do a volte-face and starts to supply Japan by selling raw materials on market terms; more time and effort wasted against Japan is good for Soviet Union. Communist trade unions are ordered to protest against the imperialistic war.
In India, the "Quit India" movement starts as members of the National Congress decide not to support the war. A compromise is reached in which India is promised Dominion status after the end of the war, as only practical mean to allow Britain to commit herself significantly to the Pacific War.
Japanese naval forces proved to be tougher than expected, thus by the end of 1942 Japan controls roughly the same perimeter sans Burma as it did in OTL. Effectiveness of carriers and aircraft against naval ships proves to be an even ruder surprise for the Western Alliance powers than OTL. Japanese technology shock is also larger than OTL.
However, by the end of 1942 the Japanese, though not yet defeated in any major battle, have a horde of enemies assembled against them. German expeditionary force is reaching China, and to replace the ship losses of USN the French and British navies along with Italian and German contingents are establishing themselves in Australia and Ceylon.