Watching From San Diego - A Two for One July 20th 1944 TL

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McCarran-Walter Act Passed
McCarran-Walter Act Passed

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After Nehru's speech in China, the American government began to worry. Although not as extensive as with the Chinese, Senator McCarran quickly amended his bill to include extra scrutiny and quotas on the Indian nation and its people. Unsurprisingly so, given the attempts to not single out just the Chinese. Anti-racist activists still decried the move, however, and racial tensions continued to simmer and boil. The amendment passed in the Senate on July 19th, and then passed in the House on the 20th. It took President Wallace until Friday the 22nd to sign the bill, looking extremely conflicted about the legislation.

Overall, the average American supported the McCarran-Walter Act, and were happy to see it made law. A second Yellow Peril sentiment began to quickly form, exempting "friendly" Asians like the Japanese, Taiwanese, Filipinos, and so on. However, suspicion began to form around the Chinese and Chinese-Americans were not exempt. As Senator Glenn Taylor, a prominent opponent of the bill put it, "with the Red Scare, anyone could be fair game. But with this? It paints an entire people as evil just on the color of their skin." Taylor formerly admired the President, but he and Wallace began to drift apart.

This also impeded progress on Civil Rights. Liberal activists decried Senator McCarran as a racist, and expressed bewilderment at President Wallace's endorsement of the legislation, however mild or hesitant it may have been. In turn, Americans soured on Civil Rights support, and segregationists gained ammunition to paint supporters of integration as Chinese or Indian enablers. Liberal Senators in the South began to distance themselves from open support of integration, doing their best to disassociate from these allegations without becoming segregationists themselves. Oddly enough, and perhaps disturbingly enough, many Progressives began to wonder if progressivism and liberty could only exist in the Western world....​
 
Governor Prescott Bush and the "Dangers in Geopolitics" Speech
Governor Prescott Bush and the "Dangers in Geopolitics" Speech

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Connecticut Governor Prescott Bush.
Connecticut Governor Prescott Bush was an interesting man. Although wealthy, he espoused progressive views on both social and economic issues. He supported Planned Parenthood, League for Birth Control, and the United Negro College Fund. Many of these views were controversial, even in liberal New England, but Bush became Governor of Connecticut during the 1946 Republican wave. During his tenure, he had become very popular within the state, even winning over voter blocks that previously felt uncomfortable with him, such as Catholics, working class voters, and labor. He had spoken against the excesses of the Red Scare. All around, Bush seemed like the kind of person who would support decolonizing the Old World.

That changed when he gave the following speech in New Haven:

"My fellow Americans, we have enjoyed untold prosperity after the six years of pain felt worldwide. We had vanquished a great evil that spread through German and Japanese aggression. Totalitarianism and genocide had been stopped, and we have President Wallace as one of the men to thank for. I greatly admire the President, despite our political differences, and pray he continues to serve the nation well, but his support for decolonization alarms me. Given the recent turn of events with the Indian and Chinese governments, I implore the President to reconsider his policies on the Old World, at least for the time being.

The Western World is one of freedom. We are the progenitors of the ideas of life, liberty, and property. We are the ones who wish to grant everyone the pursuit of happiness. It is in the West that great minds like Locke, Rousseau, Montesquieu, Tom Paine, and so many others paved the way for freedom from old, outdated, and oppressive systems. Without the great minds of the West, the world would wallow in the darkness of tyranny. We have exported these ideas to the Orient, to continental Europe, to Africa, to Latin America, and hopefully one day, into the stars.

The colonies of the Old World may not be ready yet for self-governance. China collapsed into a year long anarchy. The British Mandate in Palestine devolved into ethnic infighting. India has segregated itself based on religion. Unfortunately, the Eastern cultures may not be ready yet as a whole. Some have proven themselves to be willing to change for the betterment of their people, like the Japanese. Four years ago, the Japanese were a less liberal, a less apologetic, a less egalitarian culture, but with the guidance of Chester Nimitz, an American, they have begun to make progress and are joining the free world.

But others, like China, are not. This Yan Xishan fellow has went about calling his ideology after his own name, and like the narcissist he is, repeatedly mentions it. That is anathema to the idea of liberty, this disgustingly potent cult of personality. If this is what we expect from the Orient, a continuation of the rule of Emperors, we cannot turn it yet loose. For now, I implore the colonial powers of the world to maintain their hold on their governances, so they can be let go only when the time is right. If we do not take things slowly and steadily, we could see another Hitler, or another Tojo, and I would rather lose everything than subject the world to those horrors ever again. Thank you."​
 
A Prescott Bush Presidency would be interesting. You see him slotted in alt-President TLs all the time but I can’t say I’ve ever seen a timeline explore him as a potential alt-Ike in full
 
A Prescott Bush Presidency would be interesting. You see him slotted in alt-President TLs all the time but I can’t say I’ve ever seen a timeline explore him as a potential alt-Ike in full
That is if he can deal with the conservatives and Red Scare crowd in his party.
 
Indonesian Government Divides, July 31st, 1949.
Indonesian Government Divides, July 31st, 1949.

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Vice President Mohammed Hatta of Indonesia.
The Indonesian government had not been peaceful after the Dutch left in 1946 on the advice of American President Henry Wallace. President Sukarno advocated for a "guided democracy", believing regular democracy to be too chaotic and unstable. Meanwhile, Mohammed Hatta as Vice President espoused desire for a fully democratic system like in the West. Sukarno preferred military and defense spending, while Hatta preferred internal development and setting up trade. Sukarno was fiercely nationalistic, while Hatta espoused reconciliation and forgiveness.

While Sukarno was President, Vice President Hatta enjoyed considerable sway in Indonesian politics. The peaceful dissolution of the Dutch East Indies and the avoidance of bloodshed made the Indonesian public content. Instead of the projected years of violence and Dutch resistance, the Indonesians enjoyed freedom with minimal loss of life. However, Sukarno resisted Hatta and his forces as much as he could, which in turn caused a recession in the Indonesian economy and dissatisfaction with the regime. Sukarno also demanded the return of Dutch New Guinea, which did not wish to join Indonesia. This move would threaten Indonesian independence, many felt.

On July 31st, Vice President Hatta addressed the Indonesian public. He demanded that Sukarno agree to popular reforms, and to turn the country's situation around. He promised no violence towards Sukarno, and that civility was the best path forward. Appealing to the people of Indonesia, for which Sukarno presumably fought for, Hatta argued that peace has been achieved for three years, and that it was time to acknowledge peace. Sukarno ignored this proclamation, but the damage was done. Sukarno's ambivalence created a rift within the Indonesian government, and allowed for division to arise openly in the legislative branch. Legislators divided into pro-Sukarno nationalists and pro-Hatta liberals, and soon, the Chinese and Americans would begin to covertly support these groups respectively.​
 
Vietnam's Political Divide, August 1949
Vietnam's Political Divide, August 1949

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A map portraying the political divide in Vietnam, 1949.
While the French released Vietnam as a single nation in 1946 at the request of American President Wallace, it was two nations in practice. Up north, communist, socialists, and other leftists under Ho Chi Minh consolidated their popularity. In the South, Ngo Dinh Diem enjoyed more popularity under a right-wing and nationalistic train of thought. Both men decided to rule as Co-Presidents of sort for a while, and then hold elections. Those never came as of 1949, however, and many in Vietnam wondered if either men would voluntarily give up power.

Ho Chi Minh supported the Americans. Up north, China, a historic enemy of Vietnam, fell into disarray and lost several minority states. Its return to prominence scared several Vietnamese, many of whom feared that if China restored its original borders that they would be next for Chinese invasion. Despite originally supporting communism and the Soviet Union, the repressive re-Stalinization under Malenkov and Minh's admiration for President Wallace's progressivism gave him a change of heart. Minh remained a committed socialist, but began to consider himself a democratic socialist. His followers slowly shifted towards democratic socialism as well.

Meanwhile for Diem, he was an ardent Vietnamese nationalist who continued to campaign against Western dominionship of Asia. Less democratic than Ho, Diem would be content governing as a strongman like Sukarno in Indonesia. An ardent Catholic, however, many Buddhist radicals despised Diem for his favoritism towards fellow Catholics. In addition, these radicals saw Diem's Catholicism as "Western taint", and argued for an outlawing of it and all Western faiths. Up north, the Minhites would use this to their favor and advocate for religious freedom for all.​
 
The operation to exile them is largely the same as OTL. If you have an estimate of how many left after 1949, I can handle that for you in an update answer.
Yan Xishan's Speech: June 1949

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"To all Chinese: I, President Yan Xishan of the Republic of China, have done my people proud. We have officially crushed the communists once and for all, and ended one avenue of foreign incursions into our Republic. Wang Ming and his cohort will be tried fairly in our courts, and we will heal. I will be appointing General Li Zongren to govern Manchuria directly until it can be reintegrated as a province. Many Manchurians are fellow Chinese, despite the insinuations of the madman Stalin, and we wish for reconciliation. If the Manchurians open us with open arms, then we will let bygones be bygones. Yan Xishan thought requires love of all Chinese peoples.

The Five Peoples of China have been further reunified by our victory, but there is more to be done. Russian conmen have lackeys in Mongolia and Xinjiang, depriving the Chinese peoples their rightful representation by our rightful Nanking government. The American imperialists have carved puppet states of sham democracies housing whores of foreign interests, all while lying to Chinese and telling them that they are not Chinese. What does the white man know about what is Chinese or not Chinese? We must unite our entire country, and make it whole again. The year-long anarchy that allowed for our destruction was caused by these devious Western ideologies unnaturally penetrating the minds of innocent Chinese, and Yan Xishan thought is the only solution to heal China.

I will reach out to fellow decolonizing powers and form a new front against Western and Red imperialists. It is my goal to see a decolonized world, one without the jackboot of the European, the Russian, or the American. China for the Chinese. India for the Indian. Africa for the Africans. The imperialist pigs should stay in their own borders and allow the people of the world to govern themselves. We reject the United States and the Soviet Union. Rather than let either subjugate China, China will forge its own destiny and help other oppressed peoples do the same. It is what Yan Xishan thought requires."​
So China and India becomes the third bloc? Regardless of who won the Chinese Civil War, the Republic of China would not be an ally of the United States like it is today. Many have predicted that the ROC winning would still be a rival of the U.S. and the West.

Yan Xishan is just another Pan-Asianist then.

Curious about the butterflies here on the decolonization stage.
 

So China and India becomes the third bloc? Regardless of who won the Chinese Civil War, the Republic of China would not be an ally of the United States like it is today. Many have predicted that the ROC winning would still be a rival of the U.S. and the West.

Yan Xishan is just another Pan-Asianist then.

Curious about the butterflies here on the decolonization stage.
That's right. Yan Xishan also wants to make China more powerful, and letting the breakaway states remain free forever is a bit counterproductive to that.

Expect European overlords to be more hesitant.
 
German Elections, August 14th, 1949
German Elections, August 14th, 1949

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James von Moltke, new Chancellor of Germany.
Germany's return to independence finally arrived in August 1949. With the Iron Curtain stretched much further east than in 1944, and with denazification a resounding success, Germany was ready to return to the world stage as its own nation. The formerly neutral nation quickly became Western-aligned in face of Soviet collapse and subsequent re-Stalinization. However, the Allies insisted on Germany's military remaining weak. While the new nation was permitted a military, it was to be kept to a minimum. The Deutsche Selbstverteidigungskräfte, or the German Self-Defense Force, would police and defend Germany, and should more power be needed, Germany would call upon the Allies for help.

With the collapse of the Grotewohl regime and the split of the SPD, the new Ambassador James von Moltke quickly became the favorite for election to Chancellorship. Unlike the previous German governments, the Chancellor would reign supreme over Germany rather than be chosen by a President. Given the failures of the Kaiser and Hindenberg, and the dealings that made Hitler gain power, a Head of State was decided against by voters overwhelmingly. Instead, the Parliament served as a ceremonial Head of State. The Head of Government, the Chancellor, would be chosen by the Parliament, lead the nation, and form a Cabinet.

Moltke and the FDP, or the Free Democratic Party, won an outright majority victory in the August elections, with around 61% of the vote. However, Moltke reached out to anti-communist SPD MPs for economic and labor-related Cabinet positions. Utilizing American help from the Marshall Plan as well as pro-labor policies mixed with a socialized capitalist economy, Moltke planned for a post-war economic miracle. Kurt Schumacher, though not part of Moltke's Cabinet, accepted the offer for German unity. Far-left and far-right parties outright lost, and quickly became illegal under the new German regime.​
 
Soviets Enter the Nuclear World, 29 August 1949
Soviets Enter the Nuclear World, 29 August 1949

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Semipalatinsk Test Site, Kazakh SSR: The Soviet Union showed that its power was not yet lost. Two weeks after Germany solidified its pro-Western government, Soviet troops left the Eastern occupied UN zone without complaint. General Secretary Malenkov even left Poland undisturbed as an odd measure of good faith. Everyone in the West looked with suspicion, not certain why the hawkish Malenkov let Europe breathe so peacefully. The world found the answer, and did not like what it heard. On this day, the Soviets successfully tested a nuclear device named Joe-1 (pictured above) and joined the Atomic Era with the United States.

The Soviet Union had begun nuclear experimentation in 1943, but they had to wait until post-war to actualize their nuclear ambitions. Beria had taken control over the nuclear program when his NKVD was disbanded and turned into the MVD, but his replacement when he became General Secretary was a secret Stalinist and expedited nuclear research. It helped that the Soviets infiltrated the American Manhattan Project to gain nuclear secrets, though this was unknown to the world at large. As footage of the successful nuclear explosion went through to the outside world, people once again feared the Bear.

American polling found that while fear of communism did not take over fear of the Chinese, it became an even split between who the public saw as the bigger threat. The winding down of the Red Scare meant that no witch hunting continued, though Senator Harry Cain regained prominence by focusing on external communism with Senator Pat McCarran. Interestingly, two Americans, Julius and Ethyl Rosenberg, renounced their citizenship and moved to Angola to one of the Jewish diaspora communities following the Soviet nuclear test success. That did raise a few eyebrows, but without any proof of anything, the American government could do nothing against the Portuguese. For now, the Soviet Union bore its teeth to the world, and the Americans now pondered if they were doing enough to keep the world safe.​
 
New Defense Production Act Proposed
New Defense Production Act Proposed

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Senator Harry Truman meeting with Secretary of State George Marshall.
The Soviets had successfully tested their first nuclear device. The Chinese had successfully regained Manchuria, set up a puppet state in Korea, and usurped the Soviet Union as the United States' main enemy in the Cold War. Decolonization had become a dirty, four-letter word after initial approval. No one would have expected the sudden turn of events in American foreign policy, but by September 1949, the foreign front of America had become an issue for the Wallace administration. Domestically, America was doing excellent. Even moreso, America was doing outright stellar in the economy. However, foreign policy became a weak point for Wallace and the Democrats.

Senators Harry Truman of Missouri and Pat McCarran of Nevada sought to increase the Democrats' standing in the eyes of the American public with foreign policy. Citing the massive military buildup of the Soviet Union as well as the revanchism of the Chinese, the two Senators called for a new Defense Production Act. Under this new bill, formally called the Truman-McCarran Defense Act, the United States Armed Forces would retain its remaining militarization rather than reverting to pre-WWII levels as planned. In addition, subsidies and spending for the military-industrial complex would increase. Most controversially, the bill would allow the President to assume control over civilian production and militarize it without compensation for loss of business.

President Wallace supported the resolution... until he heard of the last provision. Addressing the public, Wallace announced that he would refuse to sign the bill unless that section was struck down. Most Americans agreed with the President, and many Democrats turned on the bill after hearing this provision. Ironically, Senator Harry Cain of Washington supported the provision wholeheartedly, painting the power as a "necessary evil to combat the Red and Yellow threats to America." This was ... ironic, given Cain's pro-business and anti-progressive views otherwise. Most progressive Democrats were happy to see Wallace hit back for a change, but some, like Senator Glenn Taylor, decried President Wallace. "Once again, the President has capitulated to the warmongers. Opposition to part of the bill is not enough. We must go further and reject the bill outright if America is to remain free."

Deliberation began on the bill in early September. So far, the bill remained gridlocked in the Senate. Senate Majority Leader easily enjoyed the votes among party lines and even across the aisle to ditch the dreaded takeover provision, but Senators Truman and McCarran refused to budge. The two enjoyed support from the more conservative Democrats, especially in the South. Glenn Taylor aside, the division in the Democratic Party between progressives and conservatives resurfaced once more. On the plus side, conservative and progressive Republicans alike backed President Wallace's demands for a change.​
 
Morse-Cooper Defense-Counter Act Proposed
Morse-Cooper Defense-Counter Act Proposed

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Senator Wayne Morse of Oregon (left) and Congressman John Sherman Cooper of Kentucky (right).
To ensure the passage of an increased defense budget and powers bill, Senator Wayne Morse and Congressman John Cooper drafted their own version of Truman-McCarran, a Joint Resolution bill informally called the Morse-Cooper Defense-Counter Act Proposed. The bill largely read word for word of the proposed legislation from Senators Truman and McCarran, but required compensation for businesses losses caused by impressing businesses for war effort. In other words, the status quo would remain the same, however, it liberalized the rules and lengths that the government could take on reimbursing businesses. This one minor change made the Defense Production Act far more palatable to the American public, as well as to congressional leadership.

Partisan politics bled in somewhat, however. Senator Pat McCarran highlighted the fact that Congressman John Cooper was a Republican, and that Senator Wayne Morse was a former Republican who was kicked out of the Oregon Republican Party for his endorsement of Henry Wallace. However, this proved ineffective as both men were known as rather progressive legislators. The Democrats in Congress formed a majority progressive voting bloc, especially outside of the South. (That too was changing, though far more slowly.) Progressives in the House and Senate overwhelmingly preferred Morse-Cooper as a means of seeming moderate and not anti-business to the American public, and more moderate conservatives in the South and GOP preferred Morse-Cooper for not being as intrusive on private enterprise.

President Wallace immediately pounced on the offer set by Morse and Cooper, announcing that he would support this Defense Production Act but not Truman-McCarran. Wallace cited to historical practices, such as in WWII, where not only did the federal government compensate businesses for industrial impressment for war production, but that this relationship was symbiotic and stimulated the economy. As a token of goodwill, President Wallace offered to speak with Truman and McCarran. McCarran rejected the meeting, but Truman accepted.​
 
Truman and Wallace Meet on Defense Production Act, September 1949
Truman and Wallace Meet on Defense Production Act, September 1949

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Fine whiskey and a fresh cigar, often a necessary polite gesture for politicians meeting.
President Wallace relaxed in the Oval Office, wearing everything of a suit save for the jacket. He tugged at his vest, messing with the buttons while looking around and spinning slowly in his chair. Senator Truman was running late for their meeting, and Wallace had not yet heard anything. He wanted to give Truman the benefit of the doubt, so as to not ruin negotiations. Wallace needed his party united and the public happy with legislation. Twenty minutes late, Truman finally arrived: with a bottle of Jack Daniels and fresh maduro cigars, Romeo y Julieta brand. Wallace swiveled back to the front with a grin as he smelled the delicious aroma.

"Well, you made this worth the wait, Harry." The President said with a massive grin. "Sorry about that, Mr. President. Traffic slowed me down." "Please, you can call me Henry, especially with this gesture of good will." Truman gave Wallace a cigar and lit it for him, and in turn, Wallace lit Truman's cigar. The two grabbed a glass each and began drinking Jack together. "So, how's Independence, Harry? Must be nice if it's anything like what I've got in ol' Iowa." "Well, it's colder than normal this fall, but I wish to address the elephant in the room. I can at least explain why McCarran and I drafted the legislation we drafted."

Wallace rolled his eyes, looking seriously at Truman. "Fine, if you want to skip the small talk. At least I'm trying to be cordial." "I appreciate that, sir. Look, Henry, we've got two major powers on our doorsteps ocean-wise, pissed off at us and at each other, and one of them finally unlocked atomic secrets. If we had to directly go to war with China or Russia, the costs would be catastrophic. If we even survived nuclear bombardment, the amount of materiel needed-" Wallace stopped Truman. "Look, Harry, we saw what nukes did to Japan when I ordered the strikes. If that happened on a larger scale, the economy won't matter. Second, the economy will be fine. We compensated businesses like Ford and General Motors, two big wigs, for their sacrifices during one of the worst wars mankind has ever seen. The economy didn't suffer, at least not for long, and now America has entered an economic golden age!"

Truman just nodded at that, taking a heavy suck on his cigar before exhaling. He coughed a little from accidentally inhaling from nerves. "Well, there's still McCarran. He still thinks that you're being soft." "Soft? Tell Pat that I'm the President who saw the Reds retreat back to their home turf!" Wallace retorted rather angrily. "Ask some Polacks or Hungarians if they think I'm soft. For fuck's sake, McCarran's the one who made the Iron Curtain speech, and I made it defunct!" Truman tried his best to calm the President down. "Look, Henry, I'm sorry. I can withdraw my endorsement from the bill. Most Democrats in Congress and their electorate prefer the Morse-Cooper version from what I've heard. Maybe we did overstep with that provision. I just want the nation to be able to afford the needs of war."

"I appreciate it." Wallace said in a more relaxed tone. "We can, we have, and we will. Your heart was in the right place, and now your mind is too. I'm just glad that you've seen reason so quickly." "Honestly, McCarran's the one who thought of that section, not me. I just wanted to let him have his glory." "Forget Pat. We can get votes from the Republicans if need be. Now, I take it I have your support?" Truman nodded at Wallace's question. "Yes sir. Do you have time to finish this smoke?" Wallace grinned softly and nodded back. "Absolutely, Harry. So, let's talk about how's everything in Missouri...."​
 
Senator Truman Endorses the Morse-Cooper Bill, September 12th, 1949
Senator Truman Endorses the Morse-Cooper Bill, September 12th, 1949

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Senator Harry Truman speaking about the Defense Production Acts.
On the early Monday morning follow Wallace and Truman's meeting, the Missouri Senator addressed the nation. He discussed why he helped Senator Pat McCarran draft their version of the Defense Production Act, and the rationale behind the bill in general. He also mentioned Wayne Morse and John Cooper by name, surprising everyone with his outright positive mentions of their version. At first spectators were shocked, until Senator Truman highlighted his meeting with President Wallace. The two men quickly reached an agreement, and Truman explained his decision.

"My fellow Americans, in light of the recent debates on industrial impressment, I erred in helping draft an excessive ability for the federal government to assume control of private industry during wartime without due financial compensation. I have come to realize that the Morse-Cooper version's relaxation of the requirements and deadlines handles the problems I saw more thoroughly and narrowly, and instead will support it. I recognize that this means that I am now opposing a bill with my name on it, but my ego does not matter. Nay, the health of this country is far more important. As soon as it passes committee, I am voting for Morse-Cooper."

McCarran almost fell out of his chair while listening from his office radio. Truman betraying him, that easily? It took so much effort in their personal dealings to get Truman on board. The Nevada Senator thought he had an ally in Truman, but apparently not. The enraged McCarran responded with a simple "I will filibuster Morse-Cooper until the bill dies on the Senate floor." However, McCarran's support was thin among his own party, and the extreme nature of Truman-McCarran got conservatives to endorse the progressive but more moderate Morse-Cooper version. If McCarran could not find adequate support in time, then his filibuster would fail before it even began.​
 
What happened to Arthur Nebe? Despite his enrollment in the esastgruppen he had sheltered several jews on staff, and hidden several Valkyrie plotters. Beck would have created an Algerian style military regime, on the road to a horthy style Regent in the name of the crown prince.
 
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