The War That Never Was - An Alternate-History RP | (IC)

[Upper Magica]

It is Valentine's Day in the Year of Our Lord 1938. Peace - or at least relative peace - has reigned in much of the world. It is, in fact, the longest period of peace humanity as a whole has ever known; not since the Napoleonic Wars has a conflict inflamed an entire continent, let alone the entire world.

Although there have certainly been points where this peace has been sorely tested - first with the downfall of the Russian Empire due to the Tsar's intransigence to the wind of change and modernity, and later in the 1920s, when the Austro-Hungarian experiment collapsed in on itself like a house of cards, drawing the entirety of the Balkan peninsular into a great war in its death throes. But as that troublesome decade turned to the next, people had everything to look forward to. Awe-inspiring inventions have found their way into the life of the common man, previously the domain of the rich and privileged - the automobile, the radio, air travel, movies with sound. Miraculous inventions called computers - as big as entire rooms, in some cases - are now beginning to put mathematicians out of work, while also enabling the human race to look deeper into the mysteries of the natural world faster and more efficiently than ever before.

Meanwhile, the Great Powers of the world have largely abandoned force as an instrument of policy against each other; instead, this era has heralded the creation of a world order built on the rule of law, as events in recent memory have well proven the consequences of industrial warfare to all but the ignorant.

Hope is finally within reach for the long-oppressed of the Global South, as imperialist powers begin the arduous and long process of divesting the liabilities of their overseas possessions - once prized possessions but fourty years ago.

But like any other golden era in Mankind's history - this one is not long for the world. Storm clouds brew, invisible to all except the truly pessimistic.

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OOC THREAD

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MAP(to be updated)

[Upper Magica]

The Financial Times - February 15, 1938

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Transcaucasian Republic in Jeopardy?

In recent days, the Transcaucasian Republic has undergone sort of a death spiral as the vitriolic reaction intensifies to the recent election of President Iosif Dzugashvili, a card-carrying member of the All-Caucasian Communist Party and notable Unionist, expressing the desire, if elected, to establish closer ties with the Soviet Union - if not outright integration. Mr. Dzugashvili won overwhelming majorities in the Union Republic of Georgia and the Union Republic of Armenia.

Azerbaijan have formally announced their refusal to recognize the election of President Dzugashvili, citing election fraud - and it seems that the Caucasian union of peoples seems to be on its last legs as both nationalist and anti-Communist rioting tears apart many of its major cities.

While the Dzugashvili government's response has been to enact a heavy-handed response to the rioting, many political commentators believe that the current government will soon call for Soviet intervention - if it hasn't already.

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Fraudster Busted in Berlin!

Mssr. Serge Stavisky - notable already in the Republic in France for a multitude of fraud schemes and outrageous sale of fraudulent bonds earlier in the decade, barely escaping arrest in the wake of a national manhunt - has apparently resurfaced in Berlin, up to his old tricks.

Reportedly, the career fraudster's angle this time was the sale of millions of Goldmark of false bonds in German petrochemical companies that did not even exist - after receiving a multitude of reports, the Berlin Police Bureau descended upon Mssr. Stavisky to effect an arrest, who was reportedly in the middle of packing his bags. He was detained without incident, and faces preliminary charges of fraud - with more charges reportedly on the way.

The reaction on the Börse Berlin, Paris Bourse, and the City of London has been overwhelmingly negative - shares in IG Farben, BASF, Royal Dutch Shell, Rhône-Poulenc, and the French Petroleum Company have dropped dramatically during trading hours by as much as 8%.

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French Premier calls for European disarmament conference; heckled by Blueshirts

The French Premier, Édouard Daladier, made a speech at the Palais today calling for a general conference on European disarmament - namely vis-a-vis the Soviet Union and the German Empire, who are quoted by the French premier as:

"likely to engage in a self-destructive arms race of tanks, aeroplanes, and guns with one possible end: the destruction of the peace that has reigned over Europe for over 200 years, threatening to throw the Continent into a wide-ranging war"

Unfortunately for the Premier's intended message of peace, a crowd of Blueshirts - the armed wing of the National-Syndicalist Republican Party, also known as 'Volontaires Nationaux', infiltrated the press conference disguised as agents of the press, and began throwing rotten tomatoes, eggs, and shoes at the Premier, while yelling anti-semitic slurs.

The offenders, while duly and quickly apprehended by both agents of the Prefecture de Police and the bodyguard of the Premier, revealed serious shortcomings in the security of the personage of the second-highest office in France - while adding a tinge of embarrassment to what was originally intended to be a message of European peace.

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When will we hit Peak?: An Editorial

For the last twenty years, economic growth has increased year by year, while stock prices and market conditions have made a lot of people - at least on paper - very rich. The financiers of Wall Street, the City of London, the Börse, and the Bourse live very comfortable lives inside of the bubble of prosperity they have created for themselves in a market fuelled by rampant speculation - and some even say fraud on an unbelievable scale.

Because this is exactly what these prosperous times are - a bubble. It has been allowed to grow, and grow, and grow - with no peak in sight. But all bubbles must burst: no matter how big they are.

It is the opinion of the Financial Times that this burst will come soon. If these rumors pan out to be true - of widespread fraud in the marketplace and overvalued shares 'pumped' sky-high by collaborating investment firms: mark our words, it will lead to a collapse in consumer confidence unlike anything we have ever seen in a lifetime, and a great correction of the market.

[Tracian Empire]

Danubian Confederation
Donaubund
Podunajská konfederace
Podunavska konfederacija
Dunai Konföderáció
Podonavska konfederacija
Confoederatio Danuvii


Indivisible and Inseparable
Unteilbar und Untrennbar
Nedělitelný a Neoddělitelný
Nedeliteľne a Neoddeliteľne
Oszthatatlan és Elválaszthatatlan
Nedeljivo in Neločljivo
Indivisibiliter ac Inseparabiliter

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Confederal Council to vote on expanding the budget of the Imperial and Royal Armed Forces

As part of the Law on the Expansion and Modernization of the Imperial and Royal Armed Forces of the Danubian Confederation, the Imperial and Royal Government, last year, has requested the Bundesrat to approve an expansion of the military budget, from the current level of 5% of the GDP up to 7%. The Imperial and Royal Government, led by His Excellency, Milan Hodža, the Minister-President of the Danubian Confederation, had asked the Bundesrat for this increase at the request of the Imperial and Royal Minister of War. The increase of the defense spending will further guarantee the territorial integrity of the Danubian Confederation, and will allow the Imperial and Royal Wehrmacht to complete the several different plans of modernization and expansion that it considers relevant, like the adoption of a new monoplane fighter, the adoption of a modern medium bomber, and ordering a new series of medium and heavy tanks. His Excellency, Baron Max Wladimir von Beck, the President of the Christian Social Party (Christlichsoziale Partei), has declared his support for the law, so it is expected that the law will have sufficient votes to pass through both chambers of the Council, it is also expected that His Majesty will ratify it. However, the Social Democratic Union of the Danube (Sozialdemokratische Union der Donau) is likely going to oppose and to debate any further expansion of the military budget. Her Highness, Archduchess Elisabeth Marie, the Chairwoman of the SDUD has already condemned in the harshest terms what she considers to be wasteful spending. The Red Archduchess, as she is known by her party members, does not oppose military orders in and of themselves, as they would stimulate the economy and bring more work for the factories, but she considers that the industrial giants of ČKD, Tatra, and Škoda should be subject to investigations regarding the treatment and benefits of their workers, following last year's allegation of overworking and underpaying in the factories which are producing the Panzerkampfwagen 35.

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Imperial and Royal Wehrmacht to order 150 of the joint ČKD-Škoda medium tank project

The Imperial and Royal Wehrmacht has ordered 150 units of the joint ČKD-Škoda medium tank project which is to be adopted by the military as the Panzerkampfwagen 38. Trials in the fall of last year had proven the medium project of
ČKD and Škoda to be superior to the prototype presented solely by ČKD and to the concept offered by Tatra. It is widely believed by the Imperial and Royal Army that this model will prove to be superior to the Panzerkampfwagen 35 already in service, based on the trials. While the model is only expected to enter service early next year, the Imperial and Royal Ministry of War has already allowed the two companies, at least in theory, to market the tank abroad. It is believed by our experts that the new model is fixing the flaws that have stopped nations such as Britain from acquiring a license for the Panzerkampfwagen 35. The two companies have been clear in mentioning that the orders for the new tank will not affect already existing orders, both domestic and foreign, for the 35 model, and that the 38 model will most likely be produced in one of the new factories that are soon to be opened in Moravia. A wider variety of tanks would help the domestic military industry of the Confederation, which is why the president of ČKD has informed us that his company will continue to work on the V-8-H prototype, separately from its production of the 38.

[Great Confederacy of Commonwealth States]

Monday, February 14th 1938

“It’s been lovely, Bertha. Thank you so much” said Rosa, who nodded thankfully at her gracious host. She had cooked a marvellous dinner for her and her husband’s guests, and was just taking her grandchildren upstairs to one of the spare bedrooms, their father in tow to make sure they were behaving well. Both grandkids were too tired to kick up a fuss, however, and dutifully followed Bertha up the stairs to be washed. Otto Wels smiled with grandfatherly pride, and sipped his amaretto as soon as they were out of view. The social democrat kingpin had discarded his suit jacket and tie, unbuttoning the top button of his shirt and slouching back in his kitchen chair. Rosa Luxemburg, leader of the German communist party, sat bolt upright as was her style. However, after the heavy dinner, even she could not help but doze a bit, her fingers playing with her glass.

“I’m sorry for interrupting a family gathering” said Luxemburg apologetically. “If I had known…”

“Nonsense, Rosa” Otto interjected. “Like I said, you are always welcome here. Walter and the kids will be here for another four days, plenty of time” he said, pensively sipping from his glass.

“In fact, while he views me as his father, you are a celebrity. To him, I am now ‘the man whom Rosa Luxemburg visits for Sauerbrat, methinks”

“Best Sauerbrat in the world” Rosa said, smiling. She then fell silent, pensively looking out the window.

“You heard about this Stavisky business?” she said. They had avoided politics for most of the night, talking about home life, work, the weather… Very unlike Otto and Rosa, who were usedx to quickly dispensing with pleasantries. Both were political animals, after all. Otto nodded.

“I heard the cabinet is looking into the matter” he said. Otto had remained in the Reichstag, while party members occupied ministerial positions within the government. However, Otto might as well have been a minister with the amount of information he had about government dealings. Rosa, meanwhile, had a gift for knowing the word of the street, as well as the direction of the trade unions. Furthermore, and for a reason Otto could not fathom, she had a seemingly prophetic gift when it came to macroeconomics.

“Criminally, or economically?” asked Rosa. Otto smiled.

“According to Von Papen, there is nothing to worry about. Slight readjustments in the markets are common after big news”

“Yet so uncommon as to require a public statement by the Chancellor” Rosa replied.

“What are you getting at, Rozalia?” Wels asked, leaning in. Luxemburg had a worried look in her eyes.

“If you read all the literature I gift you for birthdays, you would know” Rosa said. Otto looked behind her, to the living room bookcase filled with big, unopened volumes bound in black leather with small golden lettering. Works by Engels, Marx, Lenin, Kropotkin… Otto had been meaning to start, but life was busy, and he had hoped he’d gotten the gist after Capital. The only volume she had read was Luxemburg’s doctoral dissertation, but that was so dense and so specific to Poland that he had only understood a quarter of it.

“If I read all the literature you gave me I would call you ‘comrade’” Otto replied deftly. Rosa rolled her eyes at the obvious attempt to shift the conversation. “But now that you are here, perhaps you could elaborate?”

Luxemburg sat up even straighter, and raised her hands in preparation of gesticulation, a sign that she was arriving at the meat and vegetables of her argument.

“So… Capitalism has boom and bust cycles. It is an inevitable part of the mode of production. As more profits are made, more profits are invested into expansion of production capacity, until eventually production outstrips consumption. When that happens, prices drop, and as a result, profits”

“So far, so good” Wels said, empathically chipping in to make sure Rosa knew he was still listening.

“So, capitalist go bankrupt, labour is laid off, people become workless and production decreases. Until the situation stabilises, after which capitalist reinvest, people get back to work…”

“The basic boom-bust-cycle” Wels correctly interpreted. Rosa nodded.

“But this time, things are different” she said. We have been in an economic boom for twenty years now. Industrial capacity had expanded and expanded, but new capital keeps being created. It is now more and more funnelled into stocks, and not directly into expansion of capacity”

“This is a good thing” Otto retorted. “It cools down overproduction”

“No, it doesn’t” Luxemburg said, annoyed. “These stocks have to pay out. That either happens through dividends, or through more capital investment. If production doesn’t scale to match, then eventually you are going to run out of capital”

“And production has not increased to match…” Otto said, making the calculations in his own head. “Meaning… these stocks are over-valued?”

“Exactly” Rosa said. “Which is not a problem, until…”

“… until production outstrips demand, profits fall, and the markets realise” Wels finished her sentence. “Which means stocks will plummet”

“Stocks plummet, their capital investors fail, the soap bubble of nominal money-capital bursts” she continued.

“But then they cannot pay back the borrowed capital they used to engage in the speculative trade…” Otto surmised. “So the banks fail”

“Everything fails, Otto. The banks, who lend more money than they have. The borrowers, who find the banks suddenly bankrupt. Those who gave deposited their life savings with a bank. Companies, consumers, capitalists… Everyone. The worst recession in the history of modern capitalism. There won’t be a machine less but there will be millions without work, and tens of millions without food. Capitalism makes it inevitable”

“But the government…” Otto tried to interject, but Luxemburg cut him off.

“The government will be in no position to act, because it itself will lose tax revenue” Rosa explained. “Unless…”

“Here we go” Otto said, cynically but unfirmly.

“Unless the government divorces labour from capital and collectivises the means of production” Rosa said. “There will be no other option, Otto. Or, well…”

“What’s the other option?” Wels asked.

“Reaction” Rosa said firmly. “The government crushes the labour unions, lowers wages drastically and gains resources through conquest”

“Revolution or reaction” Otto surmised. “Those are our options?”

“They are in Germany” Luxemburg opined. “While the Imperial Legion exists…”

“You overestimate their capacity for violence” Otto interrupted.

“You overestimate their civility” Rosa retorted. There was a silence as both looked at one another, both their minds racing about the subject. It was an old point of discussion: Otto Wels was a reformist social democrat, opposed vehemently to violent revolution. Rosa Luxemburg was a socialist revolutionary, who had explicitly denounced reformism. This, they were never going to convince one another of.

“Look, Otto…” Rosa said, eventually. “I am not trying to proselytize. I’m not trying to convince you to join the International. But the SPD, and your ministers, must know what is coming if they want to prevent the worst excesses.

Otto wanted to be furious at her, at a naked attempt to again question his allegiance to the cause of the working class. He wanted to be livid, but his mind could not focus at the women in front of him. He could only think about the implications of the logic that seemed irrefutable, or at least well-researched enough to give pause. If what Rosa was saying was true, and they were headed for the worst recession in the history of capitalism, then the conclusion that something drastic needed to happen was not unfounded, and he respected that she did not try to use the information purely for personal gain. He nodded, slowly.

“I will speak to Braun, Crispien, the others…” he said. “And see what they can do”

“Please do” said Rosa. Again, a silence fell. Rosa knew that there was little the government could do at this point, but there was a hope that at least when it happened, they could be convinced to take drastic action. As long as she had planted the idea in their heads… She had little hope, but then again, she also had her own methods, should the government prove unable to stem the tide. She took her first sip of amaretto, pleasantly surprised by how it tasted even to her parched mouth. They sat there for a bit, the standing clock punctuating their silence.

“So… What do you make of Georgia and this Dzugashvili?” Otto asked. Rosa seemed to relax and let her shoulders slouch a bit.

“Oh, don’t get me started. See, the thing with taking literally the term ‘dictatorship of the proletariat is’…”

Berliner Tageblatt

Minister Kaas to announce closer cooperation with Poland; Ukraine

Minister of Foreign Affairs Ludwig Kaas (Zentrum) announced today that he would seek closer cooperation with nations in eastern Europe, including Poland and Ukraine, especially in the areas of air travel. According to the minister, unrestricted air travel between the nations would provide economic benefits both for German companies operation there, as well as to local tourism industries like those of the Crimea. Fears that free travel would lead to communist infiltration were quickly rebuffed by a ministry spokesman, who reassured the assembled press that Poland and Ukraine were free, democratic countries, and that free travel would have to entail a closer cooperation in the area of security and policing as well. The attempt is part of minister Kaas’ policy to strengthen nations against possible communist infiltration.

Frankfurter Zeitung

Chancellor Von Papen: “Stavisky not representative of the Börse”

After the arrest of Serge Stavisky, who is suspected of defrauding a large number of investors by pretending to act on behalf of non-existent petrochemical companies, Reich Chancellor Franz von Papen (Zentrum) has denied that this arrest points to any systemic issues in the German financial sector. According to Von Papen, who notes with approval the apprehension of suspected fraudsters, there are blackguards in every system. According to him, the fact that the police successfully apprehended the criminal is a sign that the system works as it is supposed to.

The market dipped slightly following the arrest and revelation as markets became more cautious in their dealings, but according to government sources, this is only a slight readjustment. As confidence in the market is restored, stock prices are expected to rise to normal levels within a day or two. Minister of the Interior Hans Vogel (SPD) denied allegations by communists that there would be class justice, and urged the Reds to draw conclusions by what actually happened, rather than supposing the outcome based on what would be politically convenient for them.

Legion Adler to hold air show in München

Veterans of the Eagle Legion, the veterans’ organisation for those who fought in the air over the Danube in defence of the claims of emperor Carl, will hold an air show close to München. Organised in collaboration with Lufthansa, and with approval of the Reich Air Ministry, the show seeks to inspire more young boys to aspire to becoming pilots, and is a show of patriotism for the fatherland. The air show is also a demonstration of what the German air force could be, according to the Legion, and an implicit request to make the Luftwaffe prepared for future actions. Among the participants in the show is the dashing pioneer of the flying industry in Germany, Lufthansa director and Legion veteran Freiherr von Richthofen, who will be taking to the sky in his brand new bright-red Focke-Wulf. It is the hope of Kurt Tank that the Luftwaffe will consider adopting his design when they see it in action.

Meanwhile, the Bavarian government has said they will keep a close eye on the event, as previous events by the Legions have been known to play host to excesses and violence between attendees, as well as disruptions in nearby villages and cities, especially to Jewish residents. The Bavarian government has announced that it will not accept any transgressions of the civil peace, although a police spokesman said there was no cause for any additional readiness of forces.

[Cybernetic Socialist Republics]

Revolutionary Union - February 16, 1938

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Intervention? Spiridonova clarifies Soviet Union's Transcaucusia policy.


A map of Transcaucusia and its surrounding region

President Spiridonova reiterated to the Moscow and international press that Soviet Union maintains an unshakeable commitment to a just transfer of power in Transcaucusia, in the aftermath of a decisive electoral victory for the trade union leader Iosif Dzugashvili. When asked specifically about a willingness to use military force to ensure this transfer, she made it clear that the Red Army, as army of liberation, rather occupation and would not intervene in the region uninvited. The Soviet President was also asked about what she thought of Dzugashvili's insistence on close ties with the Soviet Union and the possibility of intergration of the Transcaucasian Republic. She answered that while the decision remains in the hands of the incoming Dzugashvili government, the Soviets consider the incorporation of new nationalities into the union to be a sacred duty, for the purpose of improving its role as a global bulwark for and an inspiration to the international proletariat and peasantry.

Tukhachevsky reports on progress of 1940 Medium Tank Project, rejects calls for demilitarization.

Parked A-20 Medium Tank in field during testing.

The Commissar for Defence, Marshal of the Soviet Union Mikhail Tukhachevsky, was slated to give an update on the Soviet Union's A-20 medium tank project intended to start replacing the BT Series by 1940. Before he begun, he made quick statement responding to the French Premier's call for a disarmarment conference:


"An American author once wrote that there were two reigns of terror of France. The one that occured in the passion of a revolutionary momement and the other in cold blood. The former lasted months, the latter lasted a thousand years. Robespierre's reign of swift death, against the reigns of starvation and brutalization carried out by successive generations of kings and lords. The swift terror, lesser terror, was nothing but the response to a longer, more grander one. It might seem to the premier of france, being part of the ruling elite, that the last 200 years have been a time of peace, because to his kind, it more or less has been. But its been 200 years and more of brutal class war waged by the ruling class against the working classes of of europe and through colonial, the world. The opressed, now armed in the form of this Soviet Union, will never disarm until the complete victory of the international working class"

When asked about a willingness to expand the Soviet Union's military budget, he insisted that as a Commissar, he was not responsible for the final size of the budget, only requests. but inisisted that a priority list has already been organized what whatever budget increase that the Supreme Soviet is willing to approve. He then went on to speak about the progress of the medium tank project, answering some questions and declining others for security purposes. The general tone of the presentation suggested that the new vheicles witll reinforce the tank's role as the back bone of the Red Army. He insisted that export models of the tank were as of now unplanned. As an aside, he also insisted that the main drive of the Red Army will be continuing its focus on motorization and mechanization of logistics and artillery.

Bukharin announces progress on budget increase to Armed Forces, insists Soviet Union is insulated from a western economic downturn.

A Row of I-16 Fighter Aircraft being serviced after an excercise.

Premier Bukharin gave a quick report regarding the finalalization of an expected increase in the Soviet Armed Forces budget. The Premier confirms that the Supreme Soviet has approved a floor of 7% of GDP of funding for the armed forces, with any amount above that subject to geopolitical conditions. The Premier has specified that this increase is not planned to fund an expansion in personnel, but the development and aquisition of more advanced technologies, including a new monoplane fighter, to equip the existing numbers of personnel. The Premier was also asked about the arrest of the fraudster Stavisky and the fears of an global financial bubble and how it might effect the Soviet Union. The Premier said that Soviet Union's financial positions in the capitalist world , are nearly exclusively in the form of loans to labour unions, credit unions and cooperatives and as such they have little to no direct exposure to an crash in stock prices. Further more the premier explained that if western firms that had positions in the soviet union found themselves short of cash, a sell-off of those assets would simply provide a discount opportunity for Gosbank and domestic credit union purchases.

[Orostan]

The Empire, Long Divided, Must Unite; Long United, Must Divide

While the rest of the world enjoys its long period of peace, China sees none of it. The pattern of history in that part of Asia has never deviated. An empire grows, becomes wealthy and powerful, and slowly becomes weak and corrupt until a moment of stress shatters it. The most ambitious men then rise up to restore it, and the pattern continues again. However, this time things are different. For the first time in thousands of years China is indisputably not the strongest state in the world, and it faces a threat of enslavement and colonization from foreigners that it has never faced in its past even during the Mongol invasions or the Manchu invasion.

There are a few men who stepped up to end the decadent Qing and established the Republic, but others betrayed them and then betrayed the betrayers when Yuan Shikai's short lived empire ended. All this at the expense of China and her people of course. While others have used the chaos to enrich themselves and become little more than bandits flying fancy flags, Wu Peifu was driven by his nationalism and ambition which were only inflamed after a failed revolt against him earlier in the decade. To further himself and give his state a set of ideals to fight under he has accepted the remnants of the Kuomintang into his government after a coalition of southern warlords nearly destroyed Sun Yat-Sen's party, and to keep the peasants from organizing against him he has attempted to make agreements with Mao's growing Communist Movement that has camped itself in the mountains of China's interior. To Wu Peifu all internal political concerns are secondary to the unification of China, the expulsion of foreign imperialists, and the restoration of the once great country. The Japanese interference in Manchuria and the feeble resistance the remnants of the Fengtian clique offered their unsatisfied patrons has only intensified the fanatic nationalism exhibited by Wu and his men.

KAIFENG OBSERVER
JADE MARSHAL SAYS NO NEGOTIATIONS ON MANCHURIA, SENDS CHIANG KAI-SHEK TO HEBEI

Wu Peifu's office issued a statement that "The sovereignty of China is absolutely inviolable" after the Japanese ambassador delivered another message requesting that the Republic recognize the existence of the state of Manchukuo which is backed by the Japanese and widely considered a puppet state with no sovereignty of its own. Of particular frustration to the Japanese is the endless amount of arms that flows from Wu's territory into the hands of Manchurian rebels flying the Republic of China's flag and the regular passage of guerillas from Chinese territory into what Japan considers its ally's territory and back again. These regular tensions in Manchuria have not been helped by the deployment of KMT head and high ranking General Chiang Kai-Shek to Hebei province where he is accused by the Japanese of trafficking arms, sheltering rebels, and all other crimes acts it is possible for a Chinese general to commit against the Japanese and their Manchurian allies puppets. Support to Wu's enemies in the south of China from Japan, which have yet to lie down arms after the successful crossing of the Yangtze by Wu's army early last year, from Japan is unlikely to stop. In fact, it is likely to increase as a result of the Chinese government's stubbornness on the issue of Manchuria. Our correspondent in Tokyo says that the mood among Japanese officials is absolutely... continued on page A2

REPUBLIC OF CHINA NORTHERN GOVERNMENT TO INVITE EUROPEAN INVESTORS TO EXHIBITION IN KAIFENG

China is many things, but none can argue that it is poor and desperately in need of development. With Marshal and President Wu-Peifu having chosen to engage in two wars at once, despite the southern campaign looks to be close to decided in some respects and the Manchurian situation remaining as opaque as ever China finds its resources stretched thin in supporting both his military goals and further economic development. To meet its economic goals China must look to the west, and in the words of the Foreign Ministry "Seek mutually beneficial partnerships with foreign capital". It should be considered that when the Foreign Ministry says mutually beneficial, it means it. Marshal Wu has never once stepped in a foreign concession and practically daily declares his intent to restore his country to greatness. It is perhaps telling that General Feng Yuxiang, known as the Christian General and possibly a friendly face to some westerners on account of his faith, was allowed to take charge of high level negotiations with foreign industrial giants from Germany, the United States, and Danubia among others. Japan and Great Britain have not only not received any invitations for their industrial giants but have been barred from attending - even if they wanted to. Regardless, the conference is to take place in Kaifeng's most prestigious hotel, the... continued on page B2

[Cybernetic Socialist Republics]

Revolutionary Union

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Soviet Foreign Commissariat Calls on Wu Peifu' to respect soverignty of Turkestan, Mongolian and Manchurian SSRs

The Commissariat for Foreign Affairs put out a statement today in light of Wu Peifu's insistence on the 'invioable' sovereignty of China. The statement made it clear that the Union remains committed to the national determination of the Turkestan, Mongolian and Manchurian SSRs as nation-states within the Soviet Union. They also called upon Wu Peifu to withdraw any overlaping territorial claims on the Soviet Union to prove its self a reliable international agent. While theForeign Commissariat said that the specific subject matter of Peifu's statement suggests an unwillingness to accept the sovereignty of the Manchurian SSR, the Mongolian and Turkestan SSRs is expected to be a lesser obstacle, which might create space for it to facilitate negotiations between Peifu and Mao.

[Remnants of Exilvania]

Год XXXVII. Брой 1913 (1934)

37th Year. No. 1913 (1934)

Sofia, 16th of February 1938

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ПРАВO

Limited Women's Suffrage granted

14.02.1938, Sofia - With the first elections since
the terrorist coup of 1934 coming up in March
to elect a new National Assembly, Prime Minister
Georgi Kyoseivanov has issued a new law,
permitting adult women who are either married,
divorced or widowed to participate in the
upcoming elections. The opposition considers
this move a cheap attempt to garner sympathy
and additional votes from the female voter
base for Kyoseivanov's struggling government
which recently suffered from allegations of
far reaching corruption and was critizised for
its extensive rearmament policies. Generally
however the move has found wide reaching
support and is sure to strengthen the Tsar's
Government. A victory within the elections
is expected, particularly because political
parties remain banned, with opposition
candidates having to run individually.
Former members of the Bulgarian Agrarian
National Union have protested against the
continued ban of political parties, chief
among them Nikola Petkov, who decried
the government as fascist tyrants, no better
than the Zveno Organisation. Petkov was
subsequently arrested on charges of anti-
governmental conduct, though is expected
to be released soon.

Danubian Connections

15.02.1938, Pleven - Major-General Asen Sirakov,
newly appointed Chief of the Procurement
Department, recently visited the Pleven garrison
to familiarise himself with the supply situation
of the local garrison. Major-General Sirakov, who
had participated in the Zveno Coup, spent the
past years abroad as a military attache, first in
Vienna from 1935 to 1936, then from 1936 to the
beginning of this year in Berlin, likely having been
removed from the country as a punishment for his
political affiliations. However, his time abroad has
brought the Major-General into close contact with
important members of military-industrial circles
in these countries as well as established connections
within foreign high commands which have led to
the posting of foreign military attaches and missions
in Bulgaria, most prominently the Danubian Mission.
Major-General Sirakov notes the high number of
Danubian Equipment within the Bulgarian Arsenal,
claiming it a product of his personal work in Vienna,
something which this paper can not confirm but
considers likely given Sirakov's tenure in Vienna.
Major-General Sirakov further states that he intends
to intensify current talks with Danubian authorities
on further extensive arms deals which would
include the delivery of new and modern aircraft
and armoured vehicles.

Chaos in Bucharest - Innocent Bulgarians maimed for Accident

16.02.1938. Bucharest - This morning around 6 o'clock AM, the state automobile of Rumanian Minister of the Interior Armand Călinescu fell victim to a crash with another automobile which reportedly rammed it at full speed. Eyewitnesses at the scene of the incident reported that the Minister of the Interior initially survived the crash, only to fall victim to a fire engulfing him and his car shortly after. While a leak in the involved automobiles' gasoline canisters seems more likely, some eyewitnesses claim that the driver of the ramming automobile threw an incendiary bottle before attempting to commit hit-and-run. The unruly mob then resorted to vigilantism, holding and severely beating the offending driver until Rumanian Police could arrive to the scene, far too late to save the driver's life or that of their Interior Minister, unlike when they arrived to disperse Bulgarian demonstrations in the Dobrudja.

Minister of the Interior Călinescu had only just participated in forcing the abdication of the wildly unpopulaer Octavian Goga, who had engaged in far reaching anti-semitic policies. Well known as 'the King's Minister', Călinescu was a key figure in the suppression of ethnic minorities such as the Bulgarians of the Dobrudja, the Hungarians of the Szeklerland and the Ukrainians in the Budjak. His police forces were equally merciless against members of the political fringes, Călinescu resorting to harsh repressions and arrests to ensure the dominance of his Rumanian Majesty's ethnostate. As such Călinescu had gained a wide number of enemies and had been the target of several justified assassination attempts, though this seems more like an accident than an assassination.

Rumanian Authorities revealed, after a suspiciously short and likely improper examination, that Minister Călinescu had been assassinated and that the alleged deceased perpetrator had been identified as a Bulgarian from the Dobrudja. Naturally, regardless how justified such an act would have been to carry out for a member of our oppressed brothers abroad, it surely was not one they carried out and is merely foul slander conjured up by the Rumanian mob, seeking to claim their Greater Rumania all for themselves. This announcement was no doubt made with the intent to generate further hatred and cause ethnic frictions within the Dobrudja, providing the Rumanian Goverment with more reasons to continue their resettlement projects. However, the Rumanian Police has promised to investigate the entire incident thoroughly, which may yet prove to be a ray of light in this time of unjustified persecution. Should the investigation however come to the wrong conclusions, then it is unclear what the future may hold for the relations between the Bulgarian and Rumanian people, let alone between the Tsardom of Bulgaria and the Kingdom of Rumania.

[Sao Nova Europa]

Taft administration proposes larger defense budget

President Taft's proposed fiscal year 1939 budget includes an increase in military spending, from the current 0.8% to 1%. This would increase the Pentagon's budget from $800,000,000 to $1,000,000,000. "We will be directing this increased spending towards further bolstering our naval capabilities, so that we may ensure that America remains safe from foreign menaces," a senior defense official told reporters ahead of the budget release. While no official of the administration has stated so openly, it seems this proposed increase is a response to Japanese militarism. The Taft administration has made it no secret that they believe American dominance in the Pacific is a necessary prerequisite for the security of America.

With the Republicans in control of both chambers of Congress and the President enjoying a good relationship with his congressional colleagues, it seems almost certain that the budget will be approved even if some fiscal conservatives may grumble about the overall increased spending. The Democrats are split between those who support increased defensive spending - both for reasons of national security and arguing it will stimulate the economy - and those who believe that this money would be better spend on welfare programs for the American people. Overall, the Democratic Party remains fractured, weak, and unable to offer meaningful opposition to the Republicans.

[Sao Nova Europa]

From: Secretary of State Henry L. Stimson

The United States of America is a nation that has always placed an emphasis on the defense of liberty and national sovereignty. We believe that nations should engage in commerce and peaceful cooperation rather than engage in bloody wars of conquest. The Empire of Japan, with no proper justification whatsoever, had invaded and occupied Manchuria - an integral part of the Republic of China. America condemned this act of aggression but did not pursue further action as it was our firm belief that we should not further inflame a delicate situation and that the Japanese Empire would see the light of reason and come to the negotiating table. Instead, Japan continues its illegal occupation of Manchuria and has shown signs of seeking further confrontation with the Republic of China, which could lead to a bloody continent-wide war.

The United States is, thus, forced to act. We will be placing an embargo on scrap-metal shipments to the Empire of Japan and closing the Panama Canal to Japanese shipping until the leadership of the Empire of Japan publicly renounces threats to Chinese independence and withdraws from Manchuria.

[Shohun]

Imperial General Headquarters
Tokyo, Empire of Japan
February 16, 1938

"Gentlemen, I believe you are all well aware of the reason we have convened this session of the Imperial General Headquarters Government Liaison Conference. The monkeys to the west have engaged in a dangerous series of provocations along the border with our most faithful ally, Manchukuo, as the foolish Americans have taken steps to harm us economically." said Prime Minister Fumimaro Konoe. "We are left little other recourse than to respond appropriately, with the united efforts of the honorable Imperial Army, Imperial Navy, and my government."

Finance Minister Okinori Kaya addressed the conference, "Gentlemen, the most pressing concern is the American sanctions. While my ministry is conducting a full investigation, my personal opinion is that the American President, Taft, is seeking to provoke us into a war for the pure sake of reelection. There is no good reason otherwise. He has been in office some time, he could have pass these sorts of sanctions easily before. His party is isolationist and anti-war. What the American is doing is nothing other than poking us with a stick and hoping that we will respond." He glared over to the table of Navy representatives, whom had already been musing for for action against the United States. "Last year we jointly assessed that Japan was not prepared for full scale war with China. We have made great leaps towards this capability, which is something that we may be prepared to carry out later this year. However I must make it completely clear that we are in no position to wage a war against both China and the United States at the moment, without good reason."

Admiral Mitsumasa Yonai, Minister of the Navy interrupted. "So we will do nothing?!"

"No sir, allow me to explain." said Kaya. "We gain little from lashing out, or making serious threats. That would be playing into the American plan. Let me be clear, they have not gone for the jugular of Japan. They closed the Panama Canal and embargoed scrap-metal. Surely damaging, but not too severe. We can find alternatives for obtaining scrap metal, and certainly the 2,500 million tonnes of iron reserves in Manchukuo can help. Possibly making overtures to other nations could help relieve this issue. As for the Panama Canal, we can re-register ships in another nation, such as Siam, and then there is no problem."

Kaya took a sip of tea. "Frankly, the American has created a problem for himself. His electorate is pro-isolation. His main financers, the big businesses, favor us over China. Many have ties in Japan and more in Manchukuo, so naturally they will be concerned. We come out with a few public statements, speak to our contacts, do not give the American anything to respond to, and then the American conservatives will do the rest for us."

"I am in complete agreement." said General Seishirō Itagaki, Minister of the Army. "I spoke with Hideki not long ago, and his opinion is that our first focus should be the Soviets, with the Chinese second. To involve ourselves with the Americans would be unnecessary."

Admiral Yonai nodded. "We have more than one option in the works, should the situation change. But if our concern is resources, then we will not find them in the frozen north."

"If we are in agreement, then I must turn to the situation in China." said Konoe. "While I strongly respect the assessment from General Tojo, I believe the Soviets are much more amenable to negotiation. They are more concerned about Europe, after all."

General Itagaki gestured to the map laid out before them. "The open support of Chinese officials towards insurgent groups and refusal for negotiation is concerning. If we continue to relent for the sake of avoiding conflict, we will embolden the Chinese. We have a good idea of where they are smuggling weapons in from, and we know the primary locations of resistance fighters. Mr. Prime Minister, all I need is your authorization, and we will make it clear to the Chinese that we are not going to tolerate their aggression."

"What are the forces at our disposal, general?" asked Konoe.

"Between the Kwangtung Army and North China Area Army, we have around 573,330 personnel ready to conduct an operation. When we include the local Manchukuo Imperial Army units, and the Mengjiang National Army, we will have 29,294 additional troops at our disposal. Of course, the majority of the Kwangtung Army is best left to guarding the border. But that still leaves us with plenty of forces to conduct anti-insurgency operations in South Manchukuo, or even a full scale invasion of China if we wanted to. However, I would recommend sending additional Kenpeitai forces to the region, due to their specialization in policing." replied Itagaki.

Konoe looked around the room and an unanimous vote concurred. "You have the conference's authorization to begin full-scale counter-insurgency operations, with permission to utilize Kenpeitai forces from the Chōsen Army. If the situation demands it, you have my permission to conduct strikes in Chinese territory against insurgent fighters. I expect the full utilization of our joint resources to quickly clam down on the insurgent threat. With that, this conference is adjourned. Good day gentlemen."

The Asahi Shimbun

Ministry of Foreign Affairs Expresses Regret Over American Sanctions:

Tokyo, February 16th - After reports reached Japan that the United States of America had implemented sanctions on Tokyo earlier yesterday, this afternoon the Ministry of Foreign Affairs expressed concerns over the American move. In a brief statement, a senior official from the ministry said, "The government of the people of the Empire of Japan expresses its utmost regret over the unprovoked American sanctions. As his Imperial Majesty's government determines the extent and impact of these provocative actions, the Empire will be communication with the United States. The position of our Empire remains that the Empire of Manchukuo is a legitimate and independent government, with rightful control over its territory. There is no Japanese occupation. Any Japanese forces in Manchukuo are there at their government's request to ensure order, freedom, stability, and civilization."

Speaking on financial implications, the Ministry of Finance released a parallel statement, urging the American government to exercise caution; "Not only will sanctions on Japan harm Japanese free enterprise and endanger the fragile peace, but they will also harm American business interests in Japan and Manchukuo. As I am sure the American people would agree, Japan does not seek war, rather it seeks peace, free trade, and cooperation with the American people."

---

Kwangtung Army Commander Reports Increase in Chinese-backed Anarchist Attacks:

Harbin, February 16th - Amid high tensions between Japan and it allies against the Chinese regime, General Kenkichi Ueda, the overall commander of the Kwangtung Army, has released a public report detailing Chinese-backed anarchist attacks in southern Manchukuo. According to the statement, "The radical Chinese regime in Peking continues to funnel illegal weapons and drugs to anarchists in the sovereign Empire of Manchukuo. These actions have emboldened local anarchists in southern Manchukuo, culminating in violent attacks which disproportionately affect innocent civilians. While local authorities have attempted to assist, the continued violence against civilians is completely reprehensible and intolerable. Should the Chinese regime continue to fuel such violence in Manchukuo, destabilizing security within the region, there will be a response. Already Kwangtung Army officials have notified the Japanese Government to bring the issue up in the next League of Nations meeting. Our first duty is to our people, whom we shall protect at any cost."

According to senior officials, over 500 civilians and 70 members of security forces have been killed over the past few years in anarchist attacks, with the Empire of Manchukuo vowing to take a stronger stance. Already rumors persist that an operation could come any day now given the continuation of attacks.

North China Area Army Headquarters
Chengteh, Empire of Manchukuo
February 19, 1938

General Hisaichi Terauchi starred out the window of his office, watching the busy city fill with life. "Lt. General, are our forces ready?" He turn to face his chief of staff whom had entered the room.

"Yes sir." replied Lieutenant General Naozaburo Okabe. "I have dispatched five of our divisions to begin the operation, supported by the 5th District Army from the Manchukuo Imperial Army. 108,144 men total, sweeping through the entire south with air support to completely crush the insurgency. Consider the escalating situation with the Americans, I have ordered the censor to be careful about that news is getting out, and I have directed commanders to ensure that civilians are left unharmed."

"We will begin the operation at once then. The Kenpeitai and Manchurian police is to complete their raids in the cities and towns by the end of the day, while the Army will handle the enemy encampments. We will soften them up with ground and air bombardments, then the Army will handle the rest. We will hold off on striking within China for now, but send word to the Imperial Navy Air Service to have their bombers ready." said Terauchi

"Very well sir. I will see to it." replied Okabe.

Across South Manchukuo
February 19, 1938

The police raids were immediate and stunning. An organized effort between the Kenpeitai, Tokkeitai, Tokko, and Manchukuo Police saw dozens of known insurgent supporters and drug smugglers arrested, and any more suspected insurgents would be detained for questioning. In the skies above, Army Air Service Kawasaki Ki-3s, Kawasaki Ki-10s, and Nakajima Ki-4s rumbled overhead, conducting bombing sorties and reconnaissance against insurgent encampments. On the ground, Army soldiers scoured rural villages, arresting rebels and engaging in minor firefights. It was truly one of the most significant internal operations within Manchukuo to date.

But most importantly, soldiers from numerous divisions were deployed to completely lockdown the Chinese border, ordered to prevent any crossings besides that at the official border checkpoints. There was no doubt that no matter the intensity of the operation, holdouts would remain, especially those who had escaped into China. But in the minds of high command, that did not matter. If the supply lines were cut, then it would only be at matter of time. The operation was scheduled to last a whole week to sweep out obvious resistance, and it was looking like that would be complete within the timeframe. The only questioned that remained was whether the Chinese would persist, and if Japan would have to expand the scope of its operations to China.

[Cybernetic Socialist Republics]

Revolutionary Union

---

New Telephone Exchange Constructed in Sevastopol, for recreational, labor and revolutionary purposes


Telephone Switchboard Operators at work in Leningrad

Last week, the first of a series of new telephone exchanges were constructed in Sevastopol, Crimea in the Soviet controlled Ukranian Socialist Republic. One part of a Union wide program to connect soviet citizens for both work and recreation. As of now, there is approxiamtely 1 telephone for every 20 citizen of the soviet union, with the highest rate in any city being moscow, at a rate of approxmiately 1 for every 6 residents. The Supreme Soviet has budgetedfor reaching eventually reaching a ration of 1 in 4, but the goal is expected to be years off. Nonetheless, as construction becomes cheaper with volume, telephone production, installation and servicing is expected to significantly increase heading into the next decade. While the construction of any one telephone exchange may not normally newsworth in of its self, the specific location makes it so. It is not a state secret that there has been considerable work expanding telecommunications capacity on the western frontier, particularly in Ukraine, a nation still mostly held down by monarchal domination. improving communication in the region will only help provide against for dissidents in overthrowing one of the last feudal remnants of the borders of the former Russian Empire.

Resource Efficency Program connected 'Committee on the Uranium Problem' sees 40% budget hike to research 'atomic' energy


Diagram of a 'cyclotron', used to accelerate charged particles for 'atomic' research

Citizens of the Soviet Union are well acquainted with the Resource Efficiency Program. It was established around a decade ago, in the immediate aftermath of Comrade Lenin's passing, in which the Socialist-Revolutionary and Communist parties made a variety of significant decisions on behalf of the USSR before the creation, election and first session of the Supreme Soviet. Among them was a commitment to ensuring that even while the market would continue to play an important role in the economic development of the USSR, resource usage would frequently need specific central planning for strategic purposes. It is why, despite petroleum production increasing year over year. Automobile usage has been discouraged in urban areas in favor of street cars, hydroelectric dams built and railways electrified. This has kept coal and petroleum prices lower for steel mills, farms, chemical plants, the military and of course export for foreign currency.

Yet as the demand for electricity, frequently the replacement of choice for coal and petroleum, increases, so does the need to find new ways to supply it. Dams are labour and resource intensive to build and can't be built everywhere. So since 1930, there has been considerable investment in a novel future means of energy generation, by harnessing the very building blocks of the universe, atoms. early in the decade, the Radium Institute based Leningrad submitted the request for funding for the construction of aid in advanced atomic research. By the middle of the decade, one was constructed, with two more on the way. In the spring of last year, a committee to focus these efforts was been established, aiming to research the power generation capacities of chain reactions of uranium, along with isotope separation techniques to improve their potency. Experts believe that one day it might be possible to generate power in facilities much like coal power plants, using uranium reactions instead of burning coal to heat water and turn steam turbines. The committee has done research with considerable merit in the last year, frequently publishing for consumption by the international scientific community. Advocates of civillian science and investment in the Supreme Soviet have managed to secure a budget increase for the commitee comparable to the minimum 40% increase due for the Soviet Armed forces.

[Upper Magica]

---

February 23, 1938

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Defense Budget Debate in Assembly Turns Into Fistfight

With the news that the Soviet Union has increased its defense spending substantially, fears in the National Assembly that Germany could do the same today came to a head when the Assembly began debating the Government's lack of concrete action on rearmament, spurred heavily by National-Syndicalist partisans from the Right.

Jacques Arthuys, delegate from the Territoire de Belfort's 1st constituency and leader of the National-Syndicalist Party both in and outside the Assembly, was quoted as saying "...France needs to be strong against Boche imperialism and Red terror; we and we alone are the sword and shield of free Europe." Much to no-one's surprise, when Arthuys took the floor, the PCF bloc in parliament heckled and jeered; at one point, some members of both parties began to take their imbroglio to the Assembly floor, punching and hitting one another.

At this point, the Assembly was called to a premature end as gendarmes separated the two militant parties. Afterward, Maurice Thorez, party leader of the French Communist Party denounced the debate in a press conference as 'yet another example of capitalist imperialism at its finest', adding on that 'the workers of France show their solidarity with the Soviet Union, who merely exercise their right to self-defense in the face of reactionary aggression, and the Communist International, who struggle on behalf of all humanity to overthrow the capitalist system that binds us to slavery.'

To some, it seems as if this Government is entirely useless - the militarization of the Soviet Union, and through them, the Germans is a real danger - one that la Marianne cannot be caught with her knickers down in regards to.

---

Premier Urges Restraint by Japan, China in the East, Soviets in the Caucasus

Today, Premier Daladier - this time, without the roving Volontaires Nationaux intermingled with legitimate reporters - held yet another press conference regarding foreign developments, namely the situations in China and the Caucasus.

He is quoted as saying '...the international order of stability that has reigned since the League of Nations' inception is under threat across the world; the Balkans rumble with ethnic strife, the Caucasus trembles with fear and loathing for Red tyranny, to say nothing of the Chinese question between Japan and China.' He called on the League of Nations to step up its role in world affairs and pursue a more interventionist approach, while simultaneously calling for the leadership of China and Japan to exercise restraint.

In regards to the ongoing Caucasus situation, Premier Daladier has called for, alongside similar calls from the Azerbaijanis, who have all but seceded from Transcaucasia, to initiate a 'free and fair recount' of that country's recent presidential elections under League of Nations supervision.

When questioned about the recent apprehension of Serge Stavisky, however, Premier Daladier, in a rare occasion, was quoted as admitting that '...the economic situation isn't perfect, but fraudsters like Stavisky take advantage of people's gullibility in such a market of bounty. We will not be seeking his extradition until Mssr. Stavisky serves hard time in a German gaol; I trust they know what to do with such a cockroach of a man.' He dismissed outright projections of a possible market correction in the future, stating simply that '..the economic health of France looks bright, fraudsters or no.'

---

French Protectorate of the Rif in Doubt?

After last year's corruption scandal involving trafficking and de facto slavery in what was once the Spanish portion of Morocco, it is reported that French colonial officials are planning to overtake the current Spanish-run administration and integrate the former Spanish colony into French Morocco.

Of particular import is the city of Tangiers, formally divided between France and the Spanish administration in Morocco, though de facto ran internationally. It has been reported that the Moroccan administration intends to take full control of the city, albeit with a special status, keeping in mind the many international legations stationed there and its de facto status as sort of an international zone.

---

French Concerns Take Interest in Blooming Asian Market

With tensions running high in Asia, French industrial concerns have naturally flocked towards the region, as China has openly expressed interest in regard to international investment in recent days - French steel, machinery, and railroad companies have openly expressed interest in attending the Kaifeng exhibition proposed by Mssr. Peifu despite the danger of yet another Sino-Japanese clash.

On the other side of the coin, after the American embargo on scrap metals, French iron mining companies have offered to fill in the gap left by the Americans' departure from the market, offering prices that, albeit higher than those charged to Germany and other European neighbors, and indeed, the former American sources of scrap iron, could be a viable source of the metal for Japanese industry.

Unfortunately, this has had the effect of raising export iron prices, as speculators presume French neighbors will soon initiate a bidding war for French iron with the resource-hungry Japanese.

[Great Confederacy of Commonwealth States]

CHINA AND GERMANY REACH HISTORIC TRADE AGREEMENT

Following talks between a German trade delegation, headed by Minister for Foreign Trade Heinrich Brüning (Zentrum), and the Chinese government, have resulted in a historic trade agreement between the two nations. While military cooperation of the Kaiserliches Heer with the Chinese army has been consistent since 1922, such martial exchange has not previously led to the strengthening of economic ties. The German and Chinese governments concluded an arrangement that will lessen taxes for exports to China of German heavy industrial goods as well as some other categories of goods, including small arms and artillery. Meanwhile, the import of Chinese primary goods, including rice, silk and other exotic goods, will be met with lesser tarriffs. German companies that expand into China will be practically excempted from taxes for the first years of their operation.

While some businesses, especially German shipping, heavy industry, and armaments industry, hail the agreement as strengthening to the German economy and German interests abroad, there are also criticisms from both sides of the Reichstag. Nationalist parties, including herr Anton Drexler of the German Workers' Party, called it a severe blow to German self-sufficiency, making the economy more and more reliant on international trade, while enriching only a small handful who are capable of such transcontinental endeavours. According to Drexler, a true government of patriots would be strengthening the German economy through autarky, rather than enmeshing it more into the system of global Jewish capital. Meanwhile, trade union leaders have criticised the move, as it is expected that it will move German jobs abroad where workers are cheap. Despite trade union opposition, the SDAP is expected to vote with the coalition when the agreement is offered up for ratification by the Reichstag, after which it will receive imperial ascent.

People should expect prices of Chinese imports to drop and those industries reliant on imports to grow as a result. Meanwhile, German GDP should continue to grow as the opening of German-owned factories in China is expected to benefit German investors. Indirectly, this will support the Börse, and at a welcome time, since it has not come back from the scandals of the previous month as strong as was forecast at the end of last year. Share prices of large industrial firms, especially Krupp, are seeing swift recovery since the news last broke, though petrochemical firms have remained unsteady.

The move is also hailed as a victory for the duo of foreign ministers, Kaas and Brüning (both Zentrum). Their foreign relations strategy, focussing on gaining international foothold for German industry, is paying off by acquiring entry to a formerly isolated country, with one of the largest populations on earth. Others are calling into question this conquest, especially our Chinese correspondents. While China looks large on a map, the reach of the central government is limited due to the warlords roaming the countryside. Some are even saying that this move links us economically to the Chinese central government in a way that will force Germany to intervene militarily should the Chinese government be threatened. Minister Ludwig Kaas has ensured the press that the military aid to China will remain strictly adivsory in nature and that no expansion of military collaboration has been agreed upon, adding that, if China wants to defend itself, it can do so by buying German armaments.


STAVISKY TO BE TRIED EARLY MARCH

Serge Alexandre Stavisky, the Polish Jew who is suspected of defrauding hundreds with falsified stock options in non-existent companies, will face trial in early March. While commentators suspected his trial would take some time, it seems that both prosecution and the courts have expediated the process. While no official reason has been given as of yet for moving the date, it is speculated that Justice Minister Arthur Crispien (SPD) and Minister of the Interior Hans Vogel (SPD) want to set an example in order to quell latent unrest in the market. This is having adverse effects, however, as the German National People's Party is sowing doubt as to the government's motivations. Alfred Hugenberg, leader of the DNVP and owner of several popular newspapers, has indicated that he believes the government is acting quickly as to hide their involvement with the affair. While Hugenberg's allegations have little merit, this has raised unrest in the capital, as daily demonstrations take place outside the jail where Stavisky is supposedly being held. Minister Vogel has assured the Reichstag that police have had more than enough time to finish their investigation, and that prosecutors will seek a harsh punishment against the man who defrauded hundreds of honest Germans out of their money.

GERMANY LAUNCHES PROTEST AT LEAGUE BUT WILL SEEK NO FURTHER ACTION

Following the announcement of sanctions against the Empire of Japan, including an embargo on scrap metal exports to the Asian island nation, Germany has too denounced the Japanese occupation of Manguria, citing various atrocities taking place there against the sovereignty of the Chinese government. However, Foreign Minister Ludwig Kaas (Zentrum) acknowledged, there are no plans for sanctions at the present time. Such actions, he beleives, should be the sole prerogative of the League of Nations, which has so far not take decisive action. While the minister cites legal trouble as his main argument, it is known that Japan will have to look elsewhere for metal shipments, and that the sizeable but ageing German merchant fleet is a prime candidate for gradual sale. The minister might hope that Japan will buy German once American scrap dries up. Others have prompted that, even if Kaas were willing to put sanctions on Japan, he fears that such action might increase current market violatility. As for the question whether this embargo is a prelude to war, minister Kaas has denied that war is likely at the moment, citing the willingness of the US to engage in diplomatic action as a sign that it is unwilling to take hostile action over this issue.

HIS MAJESTY RECOVERS, RETURNS FROM HOHENZOLLERN CASTLE

Following a minor bout of flu, which prompted His Majesty Wilhelm II to seek the cleaner air of his ancestral Baden-Württemberg, the Emperor has now returned to the New Palace in Potsdam. The Emperor has made a full recovery and will resume his duties again shortly. The 78-year-old Emperor has insisted on retaining his constitutional functions, which he has performed admirably throughout the years, even as other men his age would have long retired. The swift recovery of His Majesty is a testament to the strength of his physique. The Frankfurter Zeitung wishes the Emperor and his family well.

Berlin-Tempelhof Airport
27th of February 1938

The abrupt start of the marching band's rendition of Heil dir im Siegenkranz shook Friedrich Wilhelm awake from a momentary lapse of conciousness. Just in time, as the red-carpeted staircase was wheeled into position and an old, frail man in military uniform stepped out. Emperor Wilhelm was the odd one out among heads of state, choosing to fly regularly instead of traveling by train for long distances. While others viewed air travel as dangerous, the Emperor both showed martial bravery in the face of danger, while convincing weary passangers of the safety of air travel. It did not hurt the military either, since the Emperor traveled in his personal Focke-Wulf 200, a modified strategic bomber gifted by the company on the occasion of the Emperor's 78th birthday. A gift which did not hurt the stock prices of the airplane builders, who could expect consistent military contracts going forward. Wilhelm descended the stairs alone, having lost his wife, Friedrich's mother, more than ten years ago.

It took what felt like ages for Wilhelm to finally get up to the limousine. Friedrich, doing his best to keep the feathers of his gala helmet from blowing in his face in the late winter gusts, shook his father's hand. Gently, since they felt like a too firm of a handshake would crush them irreperably. He then opened the limousine door for him, and a grenadier guard helped him enter. Friedrich Wilhelm and the guard exchanged a short glance. Then, Friedrich Wilhelm entered after him, closing the door to seperate them from the windy, dreary day outside. As the limousine took off, Wilhelm brushed some of the rain off his cap and settled in, watching the brutalist architecture of Tempelhof pass by.

"I hope your flight was satisfactory" Friedrich said. Wilhelm raised his shoulders.

"There was some turbulence at the start, but it was mostly agreeable" answered the Emperor. Suddenly, his face hardened, and his piercing eyes fixed on Friedrich.

"How was Munich?" he asked. Friedrich felt the temperature in the cabin suddenly rise. He attempted to keep a straight face and look surprised, but he could tell by his father's face that he knew all there was to know, and that there was no sense hiding it. So, instead, Friedrich tried to play it off.

"I was incognito, nobody saw me" Friedrich said, casually, looking out the window in order to play off the incident and avoid his father's gaze. He could feel his eyes bury themselves in the side of his head, however. Despite his age and frail body, Wilhelm II was still very sound of mind and while they were not often lauded, he had keen political senses, developed over years of fulfilling the function of head of state and remaining on top, in spite of the wishes of the Republicans. And Friedrich knew that better men had tried to avoid confrontation with the Emperor and had failed, and he was not feeling particularly confident now.

"Clearly" said Wilhelm coldly. "Since we are having this conversation"

"It was an air show" the Crown Prince emphasised. "It was apolitical. I happened to be in Munich, my hosts were going, and..."

"There is no such thing as 'apolitical'" the Emperor retorted, uninterested in the rest of his son's excuses. "And the future Emperor of Germany never 'happens to be' in Munich, or any place for that matter, when they are there." The Emperor did not say who he meant, but when Wilhelm spoke about them, he always meant the same people. The jackals, as he called them. Lowborn scoundrels like Göring and Drexler, thinking themselves the new Gracchi and trying to upend centuries of political order by appealing to the hateful, ravenous appetite of the common people. Friedrich's interest in the group was a hot button issue between the two, and Wilhelm never wasted a moment to remind Friedrich of his duties.

"Must I forbid everything? I have tried to raise a son with a political sense that thrives in freedom, yet you seem desperate for new restrictions" Wilhelm continued.

"I am not a child anymore" retorted Friedrich, who at 55 was middle aged, and felt too old for another scolding. Wilhelm shook his head.

"And neither am I. What if I had died that day?" he said, raising his voice. "Then what? Do you want your proclamation to be heralded by Drexler? Röhm? To have all the newspapers plastered with the ascension of Wilhelm III, surrounded by low life foreign legionnaires and faithless opportunists? To be reminded every time that..." Wilhelm could not finish his sentence and descended into a violent cough, almost rolling out of his seat if Friedrich had not caught him. The Crown Prince suddenly lost all his anger and was overcome with worry. Despite what the newspapers were saying, Wilhelm's flu had developed into a full pnumonia, which had very nearly claimed him. Only through the intercession of the ever-discrete family doctor, using state-of-the-art medicine, had the Emperor's life been saved. Even so, he had spent two days in an induced coma, with a 65% chance of making it. His recovery had been faster than expected, and in order not to create panic the situation had been severely downplayed. The documents had been prepared beforehand to declare Friedrich regent if the coma was to endure, but it had not come to that. Much to Friedrich's relief, who had never dared to think of a Germany without his father, let alone a Germany that he had to lead. The night that he had a 35% chance of becoming Emperor he had spent wide awake, sweating profusely and fighting off the nightmares every time he almost lapsed into sleep. The morbid calculation was that Friedrich would probably be Emperor before the decade was out, and that frightened him to no end.

"I'm sorry, father" he said. "You are right. You are absolutely right" he repeated, until his father was upright again, wiping the slime and mucus from the corners of his mouth with his handkerchief. He shook his head, patting his son on his knee.

"I understand, more than you know, wanting to take the fight to these red republican bastards" he said. "When my time comes, you will know of the lengths I went to, the avenues I sought out"

This surprised Friedrich, but to his disappointment his father did not pursue the point, and Friedrich did not want to press it. Instead, his father looked him in the eyes again, this time his face wraped with fatherly concern.

"But these people cannot be controlled" he said. "You think you can, but you can't. They will use you until you are spent and then they will discard you. There is..."

The limousine stopped, and another grenadier guard opened the door and saluted. The Emperor fell silent, disturbed in his line of thought, but then turned to Friedrich to kiss him on the cheek.

"There is no point in being Emperor of rubble" he whispered, before slowly stepping out of the car, where Friedrich's wife Cecilie and their grandchildren were waiting for their grandfather and great-grandfather. Friedrich pondered the meaning of the whispered advice for the rest of the day, and even when he drifted to sleep, he could not get out of his mind the vision of a crown made of hardened mud, rusted metal barbs and crumbling concrete.

[Cybernetic Socialist Republics]

(Theme)
February 24th, 1938
Near the Soviet Union-Azerbaijan border

Strictly speaking, Tukhachevsky did not need to visit the border this morning. Directly manging this operation, was the duty of the recently formed 1st Army of Transcaucasia's General and he was both a Marshal of the Soviet and the Commissar for Defence, with wider concerns. But, he considered the job far too important to be left entirely to his subordinates without his appearance. This was, after all, the first time that Soviet Troops would be waging offensive warfare anywhere near europe since the end of the civil war. Providing direct military support to progressive elements of China's civil war wasn't all that much in comparison to this, especially given that it was often the extreme's of outdated and experimental equipment that were but in use there.

Here, the main body organized body of the Red Army and Red Air Force alike would be uttlized. Forces that very well could be, in the not to distant future, be deployed westardas part of a second and hopefully final Socialist Revolutionary War against the forces of bourgoise europe on behalf of the working classes of the continent and the world. But now, they'd be fighting forces of significantly lower capacity, even if the international reaction from many of the capitalist states owould likely as shrill as if they were rolling toward Berlin. That international hostilty was why this attack had to come now, even if it would be difficult for them to aid the reactionary forces in Azerbaijan, it would be less of an issue for them to work to undermine Dzugashvili's position in Georgia and Armenia. Regardless of what he, or others might think of his methods, he was certainly key to their designs for Transcaucasia, which were to, of course, directly integrate it into the the USSR.

The task of holding and policting Transcaucasia was to be primiarly his for the forseeable future as well. When President Spiridonova spoke of the Red Army not being an army of occupation, that was certainly the case here. The only thing The Transcaucasian Army was expected to do here was roll into the Azerbaijan and smash any regular army units that defected from the Transcaucasian army in favor of Azerbaijan, along with any hastilily recruited militia forces. This was mean't to overawe the armed and unarmed alike, stunting resistance. Then, they were to pull out victorious, with Dzugashvili's forces handiling the dirty work of holding and policing land as it would be, for not at least, his territory to manage. Transcaucasian Air Army's mission, was similar, but more indepth. Already some units had been flying missions from Transcaucasian to provide air support as Dzugashvili's forces marched from area's solidly under his control eastward as though they were his own air forces. They provided information in recon missions and frustrated attempts to dg in with bombing. The rest of the air army was to be used directly from Soviet Territory its self to aid the Red Army's advance.

He was standing with his fellow officers at one of the main air bases for this operation, watching one such plane, a was taking off at the moment, infact, the first reconnaissance mission of the day. This, one, in particularly the Su-2, was among one of their newer aircraft and this recon mission was in of its self its own test flight. The Red Air Force was to be the first one in, or rather, over, Transcaucasia and they were expected to be the last out. Even after the Red Army was due to withdraw, Air Corps were to remain and continue to provide Dzugashvili firepower and eyes in the sky for President Dzugashvili to deal with any lingering insurgency. But It wouldn't do limit one's self to the stick alone, a carrot would be needed to do with the Azerbaijani. integration with the Soviet Union's economy, along with more short term aid would help, but there was also worth appealing to their hearts with propaganda. Efforts would be made to insinuate a commitment to being willing to recognize, at some point in the future, Azerbaijani' claims on Persia. A strategy similar irredentist propaganda already being provided to the Turkestan, Belarussian and Manchuria SSRs. However, all of that, was for another time. Right now the task at hand was aiding the liberation of Azerbaijan on behalf of the Transcaucasian state.

[Tracian Empire]

Danubian Confederation
Donaubund
Podunajská konfederace
Podunavska konfederacija
Dunai Konföderáció
Podonavska konfederacija
Confoederatio Danuvii


Indivisible and Inseparable
Unteilbar und Untrennbar
Nedělitelný a Neoddělitelný
Nedeliteľne a Neoddeliteľne
Oszthatatlan és Elválaszthatatlan
Nedeljivo in Neločljivo
Indivisibiliter ac Inseparabiliter

---

First elections in more than a decade to be held in the Kingdom of Hungary

In today's speech in front of the Confederal Council, His Imperial and Royal Majesty has announced that with his blessing, the Government of the Danubian Confederation will take the steps necessary to organize the free and fair elections in the Kingdom of Hungary. This will mark the first time elections will be held in the Kingdom of Hungary ever since the 1927 elections that led to the Broken Ausgleich with the election of the Independence and '48 Kossuth Party that opposed the Ausgleich and the democratically elected rule of the country, leading to the Austro-Hungarian Civil War. Ever since the end of the war, the pacified Hungary has been led as a military governorate, a measure necessary in order to maintain peace and ward off extremism, with His Highness, Archduke Joseph of Austria, Prince of Hungary and Bohemia serving as Palatine of Hungary, and with His Excellency, Admiral Miklós Horthy de Nagybánya, serving as Military Governor of Hungary. Over the past decade, the two men have worked tirelessly in the name of His Imperial and Royal Highness and in the name of the Danubian Confederation, to ensure that extremism in Hungary is stamped out, and to revitalize and heal a region that has been heavily damaged by the unjust war started by those radical rebels who would call themselves "Hungarian nationalists". Now, in their latest report, His Highness, the Palatine of Hungary, and His Excellency, the Military Governor, have assured the Confederal Council that the situation in Hungary is stable enough for the military rule to end and for martial law to be suspended. Once martial law is in effect brought to an end, an election will be held, by the decree of His Imperial and Royal Majesty, from his position as Apostolic King of Hungary, in order to elect a Constituent Body that will organize a referendum with the topic of the Kingdom of Hungary's ascension to the Danubian Confederation. If the referendum passes, Hungary will become a fully fledged member state of the Confederation, and another election will be held, in order to elect the members of a new Diet of Hungary. Furthermore, with the ascension of Hungary, as per the Articles of Confederation, within six months, another election for the Confederal Council is to be held so that Hungary and its citizens will also be represented at a confederal level.

The Confederal Government, led by His Excellency, Milan Hodža, the Minister-President of the Danubian Confederation, has yet to provide the Confederal Council with a plan for the organization of the elections and referendum in Hungary, which is why several questions remain. It is not known whether the political formations running in the election will require approval from the Confederal Government, or to be more precise, whether political parties deemed as "nationalist" will be allowed to run. The notion that the League of Nations will request to send independent observers for the election has also been mentioned in the past, it is not known whether the Confederal Government will agree to such a proposal, were it to be announced, as the situation of Hungary is one in which the Danubian Confederation and the League of Nations have different opinions. Regardless, the news of the election have been received well in Hungary, and our correspondents in Budapest indicate that it is unlikely for "nationalist" parties to obtain many votes even if they were to run. The disastrous consequences brought about by the Independence Party and the National Tragedy that has seen the Kingdom of Hungary lose almost 2/3 of its territories are still fresh in the eyes of many, particularly in those of the refugees coming from territories illegally occupied by Yugoslavia and Romania as part of their Diktat. The Unity Party, currently led by Count István Bethlen de Bethlen, is expected to win the most votes, and has already asked His Excellency, Admiral Miklós Horthy de Nagybánya, to serve as the Minister-President of the Kingdom of Hungary, if they were to win a majority of votes.

Furthermore, the end of martial law means that the Schutzkorps militia is likely going to leave Hungary. While some politicians of the Confederal Council are asking for it to be disbanded, sources within the Christian-Social Party are telling us that the Schutzkorps will likely be used for border patrol duties, either at the border with Yugoslavia, or the border with Romania, and that units of the Schutzkorps have already started to be moved towards their new posts.

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Danubian Confederation to invest into China

As part of the Republic of China's call for European investment, the Government of the Danubian Confederation, led by His Excellency, Milan Hodža, the Minister-President of the Danubian Confederation, has announced that Danubia will continue to invest into China. The two nations already enjoy a good relationship of trade, both civilian and military, and the steps that will be taken by the Danubian Confederation will continue to expand and deepen that relationship. It is believed at this moment, based on sources from the government, that the Chinese Republican Government aims to buy a considerable number of armored vehicles, both the Tančík vz. 33 tankettes and the Panzerkampfwagen 35. Škoda and Avia are also apparently interested in giving China production licenses for the Avia B-534 and the LT vz. 35, and will help China with the setting up of factories and starting production, by supplying both the necessary machinery and the training. Škoda is also apparently interested in developing a number of hydroelectric dams in China, alongside the supplying of machinery for light industry and supplies for the mechanization of agriculture.

His Excellency, Arthur Edler von Rosthorn, the Legate of the Danubian Confederation in Beijing, is expected to negotiate a deal with the Republic of China, and will presumably request lower tariffs for imports and exports, and will negotiate the supplying of Chinese natural resources at advantageous prices. Alongside the German economic treaty, this is expected to strengthen the economic exchanges and relations between Central Europe and China, and will likely benefit both Germany and Danubia as part of the Zollverein. His Excellency, Baron Max Wladimir von Beck, the President of the Christlichsoziale Partei has already spoken in favor of such an agreement, calling it an important step on behalf of the Danubian foreign policy, but it is widely expected that the Sozialdemokratische Union der Donau will oppose it and instead call for further investment into domestic factories, so as to develop more jobs for Danubian workers. Despite that, it is not believed that they will fully oppose it, seeing as the deal would also likely include the further development of the military trade between the two countries, particularly once the Panzerkampfwagen 38 model is ready for production. The economic deal, were one to be reached in Beijing, would most likely be part of a vote in the Bundesrat, and it will be interesting to see how the political situation will develop once the other parties in the Council will comment on their positions.

---

Baron Max Wladimir von Beck speaks in favor of a Soviet annexation of Transcaucasia

As news of a potential annexation of Transcaucasia by the Soviet Union are spreading, His Excellency, Baron Max Wladimir von Beck, the President of the Christlichsoziale Partei, was asked by our newspaper to comment on the situation, and to the great surprise of our journalists, has spoken in favor of such an annexation. While the Danubian Confederation does not recognize the government of the Soviet Union, and as the Freiherr has assured us, likely never will, it is in the belief of His Excellency that Transcaucasia was an artificial state, created by foreign interests, particularly British and French, in order to keep former Russian territories under their influence. It is the belief of His Excellency that unlike countries with a real history that justifies their independence, like Poland and the Baltic States, there are also nations which were artificially created by foreign interests from the collapse of the Russian Empire and the Great Balkan War. Transcaucasia is one of them, and Ukraine, is in His Excellency's opinion, another one. The Baron was quick to point out that Ukraine, which Danubia does not recognize, has illegally annexed the Danubian territory of Eastern Galicia, and that despite that, the League of Nations, and in particular, Britain, France, and Germany, do recognize Ukraine's existence despite its clear breaches of international law. It as such, the Baron's hope, that the USSR's annexation of Transcaucasia will be seen as a clear failure of the plans to create artificial entities, and that in the near future, Ukraine's illegally owned territories will return to their real owners.

[HISPIDA]

Dhuʻl-Hijjah 15, 1356 AH – February 16, 1938
Topkapı Palace, Konstantiniyye, Ottoman Empire

---

Abdulmejid II, Sultan of the Ottoman Empire, adjusted his position in his seat. Beside him was Rıza Tevfik Bey, Grand Vizier of the Empire, and across the two of them were few other ministers: the Minister for Economics and the Minister for Agriculture among them.

“Cotton production has, thankfully, increased.” Mustafa Rahmi, the Minister for Agriculture laid down a series of charts in front of the Sultan and Grand Vizier. “We’ve increased from about 59,000 metric tons to around 64,000, with yields increasing from about 401 kilograms per half acre to just under 409. At this rate, with our current technology we should expect another hundred kg/ha in about 12 years and 100,000 metric tons in two decades. I do recommend that His Excellence increase funding towards the agricultural sector. The faster we can increase our yields and production, especially of cotton, the faster the country as a whole can industrialize.”

“I must respectfully disagree.” Mahmud Celâl, the Minister of Economy, presented his own sheaf of papers. “Oil production in Iraq is increasing exponentially. By my estimates, we’ll reach over 4 million tons by the end of the year. While most of the oil in the south goes to Germany and much of the oil in the north goes to France, there’s still significant deposits in central Iraq, as well as portions in southern Iraq and Kurdistan that aren’t beholden to the Germans or French. The only major oil reserves we have limited control over are in the British zone of influence in Kuwait. We still have access to offshore drilling! If we continue to exploit these, we’d have an expensive and high-demand resource to export. Oil makes the world go round: it would be foolish not to exploit this. With greater investment we could reach five or perhaps even six million tons by the next decade-and-a-half.”

“Most of the profit would go to Germany and France, if not Britain!" Rahmi interrupted. “Our exports are still broadly based on cotton and other crops, not oil. I continue to recommend–”

“If we exploit oil more, we’d have a bigger base after we kick the French and Germans–”

“We should be working with the French, at least–” the Foreign Minister butted in before Tevfik raised his hand.

“Enough. Stop squabbling.” Tevfik turned to the Sultan, leaning in. “I do recommend we invest into agriculture, but Celâl makes a good case. Increasing oil production could provide a valuable base and win us some favors in Berlin and Paris. Of course, the decision comes down to you, but I personally lean towards increasing cotton yields for immediate profit.”

“Hm.” Abdulmejid II stroked his chin, leaning away from Tevfik. “I disagree. I believe what we have right now to spend should go towards increasing oil production and yield. It would help get more money into the budget over the long term.” Even if we won’t get Kuwait on board, as usual, the Sultan silently mused.

Tevifk nodded and Rahmi barely held back a groan. Celâl smiled and began collecting his papers.

“This concludes our meeting, then. Have a good day, gentlemen.”

“Likewise, Your Excellence. Your Majesty.” Celâl shook the Grand Vizier’s hand and left.

“Have a good afternoon.” Rahmi smiled and nodded towards the pair and turned around.

TAKVIM-I VEYAKI
AFFAIRS OF THE DAY: SINCE 1831!

---

Government backs Oil Production in Iraq, Kurdistan, Northern Syria: Extra Funding for the TPC

Economy MInister Mahmud Celâl announced that the government has begun a new period of funding for the Turkish Petroleum Company and Ottoman oil production as a whole, primarily in fields throughout southern Iraq, Kurdistan, and northern Syria, including oil fields overseen by Germany and France. The Kirkuk–Haifa oil pipeline will also be receiving a series of unspecified upgrades to be formalized and applied at a later date...

...with the Berlin-Baghdad Railway's importance increasing in recent years as the oil industry continues to grow, with the automobile industries in other countries, particularly the United States, and the naval power of other countries, such as Great Britain and Japan, increasing as well...

...some have suggested that the move to fund oil production may be a bid for the future of the Ottoman economy in the event of negotiations over German and French domination of oil in Iraq and Syria.

[Orostan]

KAIFENG OBSERVER - FEB. 28TH
JAPANESE LAUNCH ATTACK ON REBELS IN SOUTH MANCHURIA, REBELS BOMB RAILWAY AND MANTETSU OFFICES IN RESPONSE

Rebels attempting to overthrow the government of Manchukuo Japanese occupation administration in Manchuria have had a constant presence in the region and it is an open secret that the Chinese government provides them with resources to launch their attacks. The Japanese police and military campaign against them launched twelve days ago probably did not come as a great surprise to many rebels although its scale and rapidness certainly has surprised at least some. Already the Kaifeng Observer has received reports that Japanese aircraft are engaged in strafing or bombing known rebel bases, and the Kwantung Army is reported to be attacking rebel held territory in Southern Manchuria. Armies of Manchurian police Japanese colonial police have been deployed in the cities and towns, in some cases searching every house one at a time according to our reports. Rebels from the south of Manchuria, pursued by the Japanese, have been sighted crossing the border into China in large numbers to either wait out the Japanese response or prepare a counter-attack, which may be coming if the bomb attacks of guerrillas against the offices of the Mantetsu (better known as the South Manchurian Railway) offices in Dailan and a train on its way to Mukden believed to be carrying senior Japanese advisors and Zaibatsu representatives five days ago are interpreted to be a sign of a general trend. Attempts to seek refuge in Chinese territory by guerrillas have been met with a strengthened Japanese army presence on the Manchurian side of the border, and faced with annihilation rebel groups have launched several large scale battles in an attempt to create openings for them to pass into China rather than be destroyed in Manchuria. Even a small section of the border captured by rebels allows for Wu Peifu's government to move anti-aircraft guns and mortars into rebel hands to allow them to match the Japanese army in the type of mobile battles that have begun to predominate in South Manchuria and open more routes out of Manchuria. It is likely that Chiang-Kai-Shek as Chairman of the KMT and the nominal commander of most of the rebels who claim allegiance to the Kuomintang will attempt to reorganize his men for penetrating the Manchurian border when the situation has cooled down. Reports from the interior of Manchuria that aren't written by the Japanese are sparse and sporadic but it is known that rebels who cannot cross the border are breaking up into small cells and groups which spread throughout the countryside and rely on civilian support. The book "On Guerilla Warfare" published by Communist Party of China Chief Mao Zedong last year is understood to have become a popular guide for Chinese rebels attempting this. Although Communists are certainly not the majority of rebels in any part of Manchuria they constitute an increasingly active and effective number of them, estimated by our correspondents to be in excess of... continued on page A1

CHINESE ARMY RECEIVES SUPPORT FROM GERMANS, DANUBIANS

A recently purchased Danubian LT vz. 34 tank climbing an incline during a demonstration to Marshal Wu and other high ranking Chinese military officials near Kaifeng.

The Chinese army has mostly been known for its large numbers. Although the Northern Government boasts the best drilled troops in China even the most well trained infantry cannot win without support from artillery and newer innovations like aircraft and armored vehicles. The Republic of China today announced that arrangements between itself and the government of Danubia have allowed for the purchase of modern weapons in large quantities including tanks, aircraft, machine guns, and artillery. The Republican government based out of Kaifeng has agreed to purchase production licenses for the Avia B-534 biplane, the LT vz. 35 tank, several artillery guns, and is considering a number of options for military trucks both from Danubia and potential Chinese producers. The licenses will be made freely available to any manufacturers in China that are producing for the domestic Chinese market and already a number of arsenals under the control of Wu Peifu have declared their intention to begin producing Danubian models of weapons to help standardize the Chinese army. It is likely that the government plans to import hundreds of the vehicles before domestic production can ramp up. The cost of all this new technology is likely to be paid for by foreign loans at first, which should not be difficult for the Kaifeng based government to obtain seeing as faith in China's economic future is high among the Germans and Danubians at least. Wu Peifu's German trained divisions will likely be the first to be equipped with tanks and it is likely that he will draw on German support for the training of any planned tank divisions. According to the projections of the Republic's finance ministry military expenditure is projected to rise by...continued on page B3

CHINA TIES ITS ECONOMIC FATE TO CENTRAL EUROPE

Recent trade deals with Germany and Danubia have resulted in a glut of low cost credit in China as the plans of German and Danubian business to expand into China attract foreign and domestic banks. The note issuing banks of China are currently planning for an increase in the supply of gold backed Yuan to ensure deflation does not occur as Chinese currency is sucked up by foreign banks looking to issue loans in it to fund the expansion of industry and mechanization of agriculture. Exchanges with the German Reichsmark and Danubian Krone are of particular concern as in the past week the Chinese yuan has risen in value compared to both currencies as foreigners buy Yuan for early investments into joint ventures with already existing Chinese industries. Real construction of new industrial facilities is not expected to start until the middle of next year, but improvements in raw material extraction and agricultural productivity will potentially show even earlier. The government has announced a pilot program in Shandong that will allow peasants to buy tractors and fertilizer on the state's credit on the condition that they sell their products to German and Danubian exporters and repay the state at a low interest. This program also incentivizes peasants to form joint-stock farming cooperatives with other peasants however it is unlikely that many of China's small farmers will trust the government enough to join these programs considering the large amount of corruption at many levels of the Chinese government. President Wu's government has addressed these concerns in a notice put out by the government promising judicial and administrative reforms that would reduce corruption a great deal. Already a small number of officials accused of embezzlement and other crimes have been said to "jump over the Yangtzee" to Anhui clique territory in the south of China which is receding as central government armies advance. The situation in the south of China makes the implementation of economic reforms and government programs impossible, as few provinces below the Yangtze respond to Wu Peifu's orders. In the long run though it is likely that as Wu Peifu's modernizing army's performance improves, the fortunes of the Anhui clique will decline. Our correspondent in Xiamen says that... continued on page C1

[Remnants of Exilvania]

Год XXXVII. Брой 1915 (1936)

37th Year. No. 1915 (1936)

Sofia, 2nd of March 1938

---

ПРАВO

Uranium Mining to begin in Buhovo

28.02.1938, Sofia - A geological team has
recently concluded a survey in Buhovo, not far
from Sofia. It was found that the area contained
high amounts of Uranium Ore, which is
currently being researched in a number of more
northernly european nations as to its
potential applications in a variety of fields. It
must however be understood, that Uranium Ore
is a highly poisonous substance and as such
careful handling was required.

A few weeks ago, extraction rights were granted
to the Buhovo Uranium Mining Joint Stock
Company, a newly founded company intent
on exploiting the discovered deposit. Today, it
has begun proper mining operations after
completing construction of basic infrastructure
and acquisition of industrial equipment. The
actual investors behind the company, who have
supplied the capital to get it off the ground,
are shrouded in mystery, with some being called
mere puppets for other groups preferring to stay
out of sight of the public eye.

The mine is now operating and expected to
extract 100 tonnes of Uranium Ore per year.
A spokesperson mentioned that the company
was looking for potential buyers but was
optimistic about findin them, citing increased
scientific and likely soon industrial demand for
the metal.

Unrest in Dobrudja

01.03.1938, Dobrich - The situation in Rumania
continues to deteriorate following the death
of Rumania's Minister of the Interior, Armand
Călinescu. Bucharest authorities recently released
a statement, that the Minister passed away from
his injuries and that the death was ruled as a case
of murder and outright terrorism. The authorities
accuse an upstanding rumanian citizen of bulgarian
descent, who was brutally murdered at the scene,
of carrying out the alleged attack. More importantly,
the Internal Macedonian Revolutionary Organisation
has been implied to be behind the act. Naturally it
is naught but slander!

The accusation of the brave heroes of the Bulgarian
People have not gone by without reaction and in
various settlements of Dobrudja the Bulgarian people
have begun to riot, decrying the unjust annexation of
1913, the unjust accusations levelled against the IMRO
and the acts of the Rumanian Government which aims
to rumanianise the region.

Word is in Sofia that Ivan Mihaylov Gavrilov, leader of
the IMRO, has announced not to take these accusations
lying down and that as long as innocent Bulgarians
remain under foreign rule, the IMRO will use any
instrument necessary to liberate them from their
foreign oppressors.

Bulgarian National Team leaves for France - Prepares for the next FIFA Qualifier

26.02.1938. Dedeagach - Today the Bulgarian National Team leaves for France for a Friendly International Match to be played on the 24th of March in the Parcs des Princes. The Team is in high spirits and the trainer has publically stated that the team is itching for more matches after having managed to play a tie against the Danubian Confederation during the World Cup qualifiers, back in November last year. The rematch will be in April in Prague and the team team is hoping to get good practice in with the French to hopyfully eke out a victory over Danubia and actually qualify as a proper contestant of the 1938 world cup. Hopes especcially rest with Georgi Pachedzhiev, who scored the only goal in the last match.

Pachedzhiev was reserved when spoken to, claiming that his goal was moreso the result of a momentary lapse in judgement of the Danubian Team, so luck, rather than any skill on his part. Nonetheless it earned him a great number of adoring fans among Sofia City girls and his modesty is certain to attract even more. When questioned about his thoughts on the team's chances against France, Pachedzhiev mentioned that he did not expect a victory, though he hoped that they would at least score a few goals and prevent an overly large contrast between the two teams' scores. When asked about the rematch with the Danubian Confederation's team in April, he expressed optimism, stating that they have gained good experience on how the Danubians play and should be able to get another draw, if not a victory. However, Pachedzhiev absolutely expects Bulgaria to get eliminated within the first round of the World Cup.

While the Bulgarian National Team will be having a friendly match, the World Cup Qualifiers are continuing. The next match is sleighted to be held in Luxembourg, between the Luxembourgian and Belgian teams on the 13th of March. The rematch with the Danubian Confederation will be on the 24th of April in Prague.

[St George Territory]

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SPADINA RD & BLOOR ST W, TORONTO, ONTARIO, DOMINION OF CANADA, BRITISH IMPERIAL FEDERATION

---

It was a hard day down at the office for Robert Bishop, hell, he was a man nearly pushing sixty, if the grey hairs didn't give it away. Luckily he had gotten off work early today and had a chance to stop by the bank, cashing a veteran's check he was given pound sterling's; "Sorry sir, new policy." The man at the bank told him, it was an odd world that felt like it only kept getting faster and faster. He continued his walk down Spadina, taking frequent breaks, as his right leg felt like it was on fire, the old Boer round that tore through his right leg never let him forget his time in South Africa.

The newsboy was at his station calling out to anyone who was passing by, something about Azerbaijan and China, 'could make for a read' Robert thought, looking more for a distraction from his pain. He limped over to the boy. "How much for the Daily Star?"

"Three quid, I think- or pence?" The newsboy said, somewhat looking unsure of himself.

"Take four pence and get back to school lad." Robert said as he chuckled to himself, dropping a few coins in the newsboy's hand and taking a paper. He made his way over to a bench and opened it to read whatever they called press nowadays;

---

Distressing news has come from the Transcaucasian Nation, as strongman Dzugashvili aligns himself with Moscow, the Azeris seem unenthused about the current state of affairs in Tbilisi as they have refused such a proposition. News from the region has come in drips, as Soviet news bulletins and occasional reports from our partners in Baku come in. What reporters from the CBC and the Daily Star have been able to confirm is that the rumbling of plane engines can be heard throughout the borderlands, and the realization of an upcoming invasion is ever present throughout Azerbaijan.

One cause for concern is the presence of the 'Red Napoleon.' Marshal Tukhachevsky is an infamous warlord from the Russian revolution, this can only mean dread for the hopes of peace in what was the Transcaucasian Republic, as fears are abound that the Red Army may pounce on Azerbaijan. Sources in Ottawa have stated that they are; "Closely watching, and hoping that peace will prevail, but there is a large amount of pessimism, the League of Nations must act swiftly." If reports of the Marshal are correct, Europe may be in danger of a larger conflict as Bukharin and his Kremlin cronies eye Western Europe and the Middle East. (More on page A2)

---

'American embargo'
The Taft administration blocks scrap metal shipments and blocks Japanese shipping through the Panama canal in a move to force Japan's hand at leaving Manchuria. The war there has already claimed countless lives as Chinese rebels and other troops under the command of warlords like the Jade Marshal, Wu Peifu. The Canadian government has been slow to act in condemning the war, as well as with announcing intentions to join in on the embargo. Questions are arising if the Crystal Palace will see yet another Imperial wide meeting to discuss what future Imperial Federation and Japanese relations look like.

As the British-Japanese Alliance fell apart in 1923, one can argue that the choice is clear, but China seems to be aligning with Berlin through a massive trade agreement. One can only wonder what the conversations are like at the Crystal Palace as the Empire seeks to survive, any possibility of the Chinese market closing can be a great cause for concern.

---

HOCKEY

In Detroit, the Red Wings beat the Canadiens in overtime...

---

OFFICE OF THE PRIME MINISTER, OTTAWA, ONTARIO, DOMINION OF CANADA
“Blessed are the peacemakers, for they will be called children of God” (Matthew 5:9, NIV)

---

The situation was tense as Robert Manion stared out of his window at the Ottawa river, the room filled with his ministers, Azerbaijan was of little concern to the government, but China? That is what bothered them, or more specifically, German investment in China. What was to be done? Arthur Meighen, Minister of Foreign Relations and G.H. Cahan whispered to each other before Meighen announced, "We have to speak to London, this situation has gotten far out of hand."

Manion sighed, slow to respond. The damned Yanks, the damned Germans, now he knew what the expression 'rock and a hard place' truly meant. "Yes, but what do we ask? The 'situation' of this magnitude is inconceivable, say we embargo Japan, be it by ourselves or Empire wide, the Chinese grow ever stronger and so do German investments in the region. But if we look to supply Japan, we risk our neighbours down South enacting harsh terms on us, I don't need to remind you gentlemen of what our economic squabble with the yanks got us last time; five years of King, that can't happen again." The room murmured in agreement.

"Berlin has well and truly got their talons into China, it'll be difficult to tear them out." Said Hugh Guthrie, "As impossible of a task as this may seem, we must seem united, the Germans can waste their money on warlords and dreams, it is us who must be practical in these dire times. Perhaps it is time to modernize the military, perhaps it is time for us to align with the Anhui Clique, anyone of those warlords who does battle with Wu Peifu, anything to weaken him just a little bit."

"A risky gamble, Guthrie." Meighen sighed, "One that may erupt in a conflict that spans greater then what we could ever imagine, evermore, we cannot pay one cutthroat corrupt warlord to do battle with another, if they lose then it'll all be for nothing and we'll end up looking like fools, or worse."

Robert Manion took his desk once again and lit a cigarette, "Gentlemen. I understand your concerns, now I know that the situation seems dire, but wars between industrialized states bring nothing but ruin. Like Guthrie said, the Empire must be united in these matters, Meighen can draft a letter to London, I think you can expect to be visiting there along with Cahan. This is a bump in the road, while the Americans make this no easier, I think we can find a way to profit from times of crisis. The rest of you can stay." With this, Meighen and Cahan made their speedy exits to prepare a communique with London.

From the office of the Secretary of State for Foreign Affairs and Secretary of State

---

To: The Right Honourable, Harold Macmillan
From: Arthur Meighen, Secretary of State for Foreign Affairs
Subject: Direction of the Empire

---

We appear to be at the crossroads of history, on one side, I fear is a world under German industry, and on the other is a bitter conflict with the United States. I hate to seem pessimistic, but Parliament Hill in Ottawa is deeply troubled with what our options have become. If you'll forgive me for the tone of this message but the time may be for another Imperial Conference, this one on shoring the defence of our greater Empire. If we fail to act our collective territories in the Pacific and Hong Kong may be at immediate danger from the madmen that seem to inhabit China of today. While I for one do not favour Japan, it may be an option in an effort to make German investments fail to 'return.' But this double edge sword would undoubtedly result in loss of favour with the Americans, with their embargo on the Japanese.

In times such as this I wonder to myself- is it better to do nothing? As all options presented seem horrific, we are put in a situation that I fail to see any success. For the greater good our project that is the Imperial Federation must stand for something, collective peace and prosperity? Those two are always good, in times such as these one could argue the world grows ever darker as conflict erupts across the globe Britain and her Empire must once again stand for the betterment of mankind against the tyrannies of warlord-ism and communism. I fear you may need to speak with the Americans, we'll look to take your lead in these troubling matters.

---

Your faithful servant,
Arthur Meighen, PC KC

[Catalaonia]

Royal Palace of Sweden, Norway and Iceland
Stockholm, Sweden
February 20th, 1938

Gustav V of Sweden, Norway and Iceland sat on his throne, with the Prime Minister, Patrick Freeberg and Minister of Economy and Finance, Leikman Salvik. All 3 were involved in a weekly meeting with the King to discuss the economy and any domestic problems facing the nation. Reports on the economy, trade and national debt were scattered across the table, as Freeberg sipped on his glass of water, awaiting the ageing king to ask any questions. "So.. Prime Minister, how's the economy holding up?" Asked Gustav, struggling to get the words out.

"We may have to cut spending. By the reports, we have around a year left before we'll be forced to pay off our debt, which is going higher and higher by the month. All of our public projects may have to see budget cuts, as-well as an all-round spending cut. It's not sustainable, my majesty" Spoke the PM, almost annoyed by the massive spending, although which was partley his fault, had to be remained to keep up with the ever-evolving economy.

"And how would these cuts come by?" Asked the King, leaning back on his throne as he awaited a reply.

"Just general budget cuts, wage cuts, cutting free-market restrictions. We need to make 15% reduction in overall public spending this budget if we can keep this sustainable, your majesty". replied the Prime Minister, taking a sip of his water as Patrick moved over the reports to his Minister of Economy and Finance.

"Well, it seems you've got it all in order. Any domestic issues we need to worry about, Patrick?" Asked the old king once more, as his fingers shaked a little, both the Minister and PM with a quick look before taking a sip of water.

"Not really, but I wanted to ask you about our military, you see-" He was going to say something, but interjected by Gustav.

"Patrick, we're fine. Keep military spending low and we have enough to keep everyone happy. You're dismissed, Prime Minister" Demanded the ageing King, as Patrick gave him a handshake, as did the Minister.

"Good day, Your Majesty" Spoke Patrick, as he was leaving the throne room.

"And to you, Patrick" Replied the King, before slipping out of his seat, the door closing shut as the PM and Minister made their way back to the Government Housing just a mile south from the King's Palace.

---

Village of Levoshovik
Northern Iceland, Icekand
February 22nd, 1938

3 troops, part of the 500-man force of the Icelandic National Guard, considered both police and the regional military to many across the island, were patrolling the village of Levoshovik, one of the rural villages in the northern caps of Iceland. Seemingly starting as a basic patrol, the 3 of them suspected something else was occurring. Expect from around 10 houses, all pure wood, and a post-office, only manned by a single worker, the village was nothing but a dot on even the most detailed map of the island. As they walked through the snow, their boots crunching through the white sheets of ice, bits of snow dropping from the tower-topping, dark green trees peering above all of them. Armed with basic rifles, it was silence, pure silence.

"Why have they sent us here?" Asked one of them, now prone behind a tree, his gun aimed to whatever was in-front of him, if anything at all.


"Just a patrol, nothing major. I'm sure it was just the odd dog barking, the odd shuffle in the woods.." Said another, a little senior of the other, now behind the tree beside him, around 4 meters to the right of him.

"At least we're not those metro police in Stockholm.." Joked another, who was deep within the snow, the only thing pointing out being the tip of his rifle.

"You say that - they get paid what... 4x us. Not even sure they get off their own arses.." Laughed one as all 3 of them chuckled from the joke.

"Just another world, Micha. The cities in Sweden and Norway are a completely different area to us. Not exactly fair.." Said one of the troopers, shuffling a little left as they continued walking round the soundless village.

"Just got to face the facts, eh.." Replied another, as they sat back in a ready, prone position, awaiting anything coming their way.

Soon enough, a loud bang was heard. The 3 men dashed around looks, frantically searching for where the bang came from. Another couple followed, louder and louder. The troops went to the ground, rifle's pointed left, right and centre. Eventually, shots were fired, splintering pieces of woods from the many of many trees. Two men took cover behind a large bruce tree, while the other went behind a ditch, his rifle shifting left and right in quick motions.

"Hold your fire!" Shouted one of them, still struggling to picture out were the gun-fire had come from. Silence soon came, as the shuffling of trees and the gustly wind soon fired up. Suddenly, a rattle of fire came darting upon, bullet's fired down to the snow. All 3 took cover, as the shots continued and continued. One man went down, then another. A group, maybe 30 of them, emerged from behind houses, trees and anything in between. The single man left threw his gun to the ground, all of their rifles and a single machine gun pointed at him, only him with 2 dead bodies beside him.

"I SURRENDER, please..pp-please don't shoot. I have.. I have a family-" His plea for survival ended, bullets blasted into his upper and lower torso.

"Where to next, Corporal?" Asked one of the unknown men, armed with a basic rifle.

"South. Only south. The union shall be no more, and the Icelandic Brotherhood shall prevail in our quest for freedom, justice and purity!" Shouted the assumed leader, as all the troops, wearing tight black hoods for various reasons , cheered.

"For the Brotherhood!" Shouted one of them.

"FOR THE BROTHERHOOD!" Shouted all of them now, as they turned back to gain supplies and ready for the fight, in their eyes, for Icelandic freedom.

---

The Palace of the Union
Stockholm, Sweden
The Morning, 23rd February, 1938

The Palace was quiet, as the King, Queen and their only son, the much disliked Alfred, were all asleep. The Privy council were in a deep discussion over the terror attack in Iceland, as the group of advisors from the government and from the Majesty's personal guard frantically discussed options on the table. But the issue in Iceland was not the only thing on the mind of the higher-up's of the Stockholm political elite.

In the room was the Head of the Privy Council, Lord Vilgot Dahlin, a veteran diplomat of the government since the 1890's, Foreign Minister of the Union, Sebastian Bjorkman, who had been appointed in 1937, just around a year ago, and the Head of the Icelandic Parliament, Lord Kasper Sohlmann, the nephew of Gustav V. All 3 were important, highly, and respected by both government and privy. The gathering of the Privy council occurred at times of both domestic and international situations. Today was the day.

Vilgot stood now, approaching his late 70's, to the whole room, filled at Lords and Barons, as-well as government ministers and diplomats. One side and the other. The Government and the Monarchy. Two sides of the same coin. "To the Privy council, I'm sure you've all heard of the attack in Iceland. Figures suggest 9 dead, with around 14 wounded. We suspect this was done by an extremist group named the Icelandic Brotherhood, a far-right, nationalistic group who seek ethnic purification and an Iceland free. What's our options?" Suggested the Lord, looking round to the table as he sat back down.

"Well, Lord Dahlin, I suggest we take a more diplomatic matter. Deploy a good amount of troops in Iceland and wait until we can uncover their movements-" Said one of the lesser of the government minister's, only a young fellow.

"Diplomacy with these ultra-nationalist headbangers. We must deploy thousands to defeat them now before they become a matter of international debate. Our troops may be small in numbers thanks to your government, but we have thousands for crying out loud! I say deploy 10,000 troops in Iceland immiedatly under a Royal Order. The Baron sat back down, a few cheers from the government and from the Monarch council, in agreement with a more aggressive term of action.

"I disagree. Taking an aggressive stance is not practical. We must wait for further action and evidence-" Said the Foreign Minister, supporting the government minister in his more diplomatic stance, before being interjected by Lord Dahlin.

"False, Foreign Minister. We shall deploy 4,500 troops to Central Iceland incase of a future attack. We cannot be diplomatic by people like the Brotherhood. Case closed". Nods and cheers came, as the Foreign Minister shook his head, seeing that approach as being far too aggressive in his ideas of peace.

As the debate went on international issues, soon enough after 45 minutes, Lord Dahlin stood for the final time in the emergency privy council meeting. "Thank you for coming. Now brace and await. May our Union be strong and our people stronger" He said, as the door came wide open, with the Barons, Lords to the government ministers and diplomats exited the room.

On his way out, the Foreign Secretary was walking beside a younger Baron.

"Neutrality it is, eh?" Said the Baron, chuckling a little.

"That's what's worked so far" Replied the Minister, as they both split paths to left and right. The meeting was over, but the situation had just began.

[Shohun]

Memo on Economic Cooperation with the Soviet Union

To: The Ministry of Foreign Affairs
From: The Japanese Embassy in Moscow
Encryption: Top Secret
February 21, 1938

Upon the conclusion of classified talks in Moscow, I am pleased to report the success of negotiations. The stipulations of the deal reached are as follows: Upon the provision of appropriate funds, the Soviet Union will construct an oil pipeline running into Manchukuo, to allow the provision of refined petroleum. Additionally, upon the provision of civilian Japanese merchant ships, the Soviet Union is willing to allow ships to re-register under the Soviet flag and with Soviet crew to evade the American ban on utilizing the Panama Canal. As the last provision of the arrangement, the Soviet Union is willing to import scrap metal on our behalf.

While I have my reservations, it is my hope that the Foreign Ministry will be pleased with this secret arrangement, to go into effect at the start of March. I strongly believe that while we must remain cautious, especially given Soviet interests in Manchukuo, this deal could prove to strengthen relations with Moscow. Our utmost priority is to find reliable alternative sources of resources, and at the moment, this is our best option. However I ask that the Ministry not rule out the possibility of purchasing resources from other powers, as Moscow's true intentions are yet to be revealed.

Most importantly, it would seem that conflict with the Soviet Union will not be imminent, as trade ties will strengthen our nation's bond. I have verbally agreed to limit the number of troops on the border with the Soviet Union, with the Soviets withdrawing troops from the border in kind. I ask that this is kindly passed on to the commanders of the Kwangtung Army, so that they do not let the foolish Hokushin-ron doctrine harm ties with this potentially newfound partner.

Sincerely,
Shigenori Tōgō
Ambassador to the Soviet Union

Imperial General Headquarters
Tokyo, Japan
February 24, 1938

The entire Prime Minister's cabinet had erupted when news reached Tokyo of a heinous train attack in Manchukuo. Some with sorrow, some with dread, and all with fury. Meeting for the second time in just days, the Imperial General Headquarters Government Liaison Conference was convened. In a rare occasion, the Emperor himself was present to watch the meeting unfold.

"General Itagaki, what is the latest from the Governor-General?" asked Prime Minister Konoe.

"Sir, General Ueda's last report informed us of the loss of 276 passengers aboard the train, including seven Japanese advisors to the Manchu throne, six Zaibatsu representatives, two police officials, and over a dozen Manchu civil leaders." replied Itagaki. "A truly heinous attack."

"Do we know who carried it out?"

"We have brought in dozens for questioning." said Itagaki. "We believe some perpetrators may be in the mix, but further interrogation and investigation will be required. All indications would suggest the attack was carried out either by Chinese-backed insurgents or the Chinese directly. Bandits would not have bombed the train, since they would be seeking to steal any valuables. Not to mention we have already rooted out all the major bandits, or forced them into our service. The Kenpeitai has assessed that the Soviets would not be directly involved either, seeing as though we just concluded a trade deal with them, and verbally promised to withdraw forces. This only would bring more troops into Manchukuo, which is against their interests." He stroked his chin. "I am of the strong opinion that this was carried out by the Chinese. It was too well planned out for any disgruntled Machus. This was a precision strike against Japanese officials."

Konoe nodded. "Is this the opinion of the Kenpeitai?"

"I have received word from General Tojo that the Kwangtung Army Kenpeitai came to the same assessment." replied Chief of Army General Staff, Field Marshal Prince Kotohito. "What is more interesting is that our forces foiled a different bomb attempt against offices in the Kwangtung-Leased territory. This time we captured the perpetrators, and we definitely believe they were at the very least supplied and trained by the Chinese. Further investigation will take time of course, however the Kenpeitai know how to make a person speak."

"Indeed." replied Itagaki. "This is only reinforced by the actions we are seeing near the Chinese-Manchu border. We have captured and observed dozens of insurgents attempting to cross the border into China, and have captured numerous pieces of Chinese-made equipment that was recently supplied to the insurgents who are currently engaged with the Imperial Manchukuo Army and the North China Area Army. It is too coincidental that all these instances are occurring at the same time. I am more concerned about the border incidents and the shelter China is providing for the insurgents than anything else. That is what threatens our control over the region. But the train incident is the spark that will lead the public to demand action."

Konoe considered for a moment. "I have received numerous messages demanding that we take action and go to war. In light of the international situation however, I do believe to rush into anything would be a foolish blunder. We can win the battle for China, but our gains everywhere would be challenged we are significantly sanctioned. I believe we can get the British, French, and the Soviets on our side, or a the very least not opposed to us, if we are to act responsibly. Minister Ugaki, what do you recommend?"

"It is my position that we send an ultimatum to the Chinese government. Publicly outline our terms, which will appeal to some in the international community, and then we will force the regime to choose. Do they stop backing the insurgents and accept concessions, or do they choose direct conflict that they cannot possibly hope to win? I am not a betting man, but China is a mess. Peifu is doing everything he can to remain in power. Conflict with us would be contrary to that." said Ugaki.

"What if they do not accept our terms?" asked Admiral Yonai, who had thus far been silent.

"Then I leave the decision-making to you." replied Ugaki. "On the government side, we will withdraw our embassy and sever diplomatic relations. If we utilize sanctions or military force will depend on the severity of the Chinese response."

Yonai and Prime Minister Konoe nodded. "Minister Ugaki, see to it that our demands are drawn up and ready to be sent later today. General Itagaki, what are our military options should diplomatic efforts fall though?"

"Sir, I believe the Navy has drawn up planning for strikes across the Chinese mainland, specifically targeting the Chinese arsenals around the coast. For the Army's part, we have drawn up plans for a limited incursion into China. In coordination with the Navy, we are adopting a plan for a limited conflict, aiming for a diplomatic resolution, not a full blown war. But if China responds in the slightest, I will have options drawn up for the full scale invasion of China. I only ask your permission for limited mobilization of our reserves, the Diet's funding, and the deployment of our naval assets." replied Itagaki.

"I have ordered an emergency session of the Imperial Diet, in which we will pass the proper funding. What units were you thinking of?"

"I believe 45 of our reserve divisions will be enough. I have already sent word for the Kwangtung Army to pull 5 divisions from the north and redeploy them to form the China Expeditionary Army. It shall be reinforced by 25 reserve divisions. 5 more reserve divisions will be spread out to reinforce the Imperial Manchukuo Army deal with the remaining insurgents, while all North China Area Army units will return to the border. 10 reserve divisions will be deployed to Korea to act as our reserve force, 1 division will be deployed to Nagasaki in preparation of reinforcing our garrison in Shanghai, 2 divisions to Formosa, and 2 more will remain in Japan. And I have preparations underway for the deployment of the Imperial Guards division to reinforce the North China Area Army, with the navy preparing its SNLF units for action as well. I do not believe we will need an escort force for now, but I would recommend the Third Fleet be prepared for deployment to Shanghai. "

"Very well general." said Konoe. "See to it."

"Thank you sir."

The Asahi Shimbun

Ministry of Finance Announces Separate Trade Agreements with Soviet Union, France, and Germany:

Tokyo, February 22rd - Following high-level talks conducted in Moscow, the Ministry of Finance has announced that the Soviet Union and the Empire of Japan have reached a trade deal involving the supply of raw materials from Russia. While the ministry did not delve into specifics, Finance Minister Kaya stated that this development represented warming relations with European powers, and the decrease of tensions in the north.

The minister expressed his hope that the deal would prove to be fruitful, noting that Japan was "working to develop trade relations with numerous partners," a reference to the recent American embargo on scrap metals and passage of Japanese ships through the Panama Canal. In his remarks to the press, Kaya said that his ministry was looking into European sources of raw materials with "great interest," telling reporters that a deal has been concluded for French iron ore and German scrap metal.

Kaya went onto express hope to diversify Japan's suppliers, naming the British Empire and the Ottoman Empire as two that his ministry was looking to make a deal with.

---

Minister of Foreign Affairs Expresses Disappointment of German Protest, Cautions Danubia Against Aid to China:

Tokyo, February 22nd - After the American condemnation of Japanese support for the Empire of Manchukuo, pushing a false narrative of Japanese occupation in the region, Germany has joined suit, filing a protest at the League of Nations. Despite this, the German government stopped short of announcing sanctions, in a move praised by Tokyo as showing "wise restraint." While Foreign Minister Ugaki expressed his disappointment at the protest, Ugaki noted cordial relations between Japan and Germany and stated his hope that Japanese efforts to ensure peace in Manchukuo did not harm ties.

Noticeably silent on German military sales and cooperation with China, it is speculated that the Japanese Government may hope to secure a deal for purchasing scrap metal from Germany, in place of American supplies.

However, the minister did criticize the Danubian Confederation, a close German ally, for plans to sell heavy weaponry to China, including tanks and planes. Warning Danubia of the instability in the region, Ugaki stated that arming the Peifu regime was "completely contrary to the security of peace in the Orient," warning that the weapons would likely go to "nefarious aims, including waging war against other legitimate Chinese states and the Empire of Manchukuo." According to the ministry, the Danubian ambassador was summoned to protest the sale, with Minister Ugaki reportedly asking the Danubian government to ensure that its arms were "used responsibly."

Despite concerns, when questioned by the press, Kwangtung Army commander General Kenkichi Ueda dismissed the threat as "minimal." General Ueda noted that, "By the time that the equipment is built to order and is delivered, the equipment will be obsolete compared to Japanese models. An European tank is not best suited for the Asian battlefield."

---

Bomb Derails Train in Manchukuo, Dozens Reported Dead:

Keijo, February 24th - Reports out of the Empire of Manchukuo late yesterday were received with horror and fury in Japan, after a train was bombed while traveling from the Kwangtung-leased territory to Mukden. While details still remain unclear, sources within the Kwangtung Army have told the Asahi Shimbun that casualties are currently estimated to be "in the dozens" with 457 of the 584 ticketed passengers still unaccounted for as of the last report.

According to a witness, the train was rocked by an explosion on the tracks, which caused the entire train to be derailed into a ditch. Recovery efforts are underway as of this printing, with local authorities and Imperial Army forces having secured the area. According to geopolitical experts in Tokyo, the attack was likely carried out by Chinese-backed insurgents, as reported yesterday in the Chinese-printed Kaifeng Observer.

Currently a manhunt is underway for the perpetrators, with Prime Minister Konoe set to address the nation and the international community early tomorrow.

---

Prime Minister Confirms Chinese-backed Attacks in Manchukuo, Vows Response:

Tokyo, February 25th - After reports yesterday of an attack carried out against a train carrying Manchu and Japanese civilians, the Prime Minister convened the Imperial Diet for an emergency session early this morning to rush through emergency legislation. Outside, thousands of Japanese rallied for the government to take immediate action. Upon the conclusion of the Diet session, the Prime Minister held a radio-broadcasted speech addressing the nation and the international community, transcribed here:

"By the grace of Heaven, his holiness the Emperor of Japan, I come before ye, the loyal subjects of the Empire of Japan and our friends in the international community. It is with the utmost regret and sorrow that I must
inform you of the terrible anarchist attack carried out in the Empire of Manchukuo, against a train filled with Japanese, Manchu, and international civilians. While the details remain yet to be uncovered, I regret to announce that as of the latest report from Manchu officials, 276 civilian passengers are confirmed dead, with dozens wounded and several still unaccounted for.

His Majesty the Emperor has demanded answers for this heinous crime, and I must dutifully report that upon initial investigation, this was no accident, no instance of banditry. This attack was carried out with a bomb that was very carefully emplaced, specifically targeting Japanese and Manchu civil servants onboard the train filled with innocents. The cruelty of this act cannot be more obvious, and alone represents a dangerous trend of affairs in East Asia.

But this attack is not one of a kind! The same day, the alert and brave defenders of Japan, detected and arrested anarchists attempting to plant a bomb at the office of the South Manchurian Railway in the Kwangtung-Leased territory. The same day, our Imperial Armed Forces and Manchu partners were attacked by insurgent anarchists. The very same day, troves of illegal arms made their way across from the Manchu border!

The perpetrator of this unjustified and terrible actions? ...the illegitimate regime based in Kaifeng. Combined, and coupled with the open basing of blood-thirsty insurgents within Chinese territory, these actions represent nothing short of an act of war. Already our brave defenders have captured dozens of articles of Chinese-made equipment, deliberately sent over the border to supply anarchist within Manchukuo. Already our commanders have reported hundreds of insurgents fleeing over the border into the protection of the Chinese regime. This trend of affairs cannot be allowed to continue.

Upon conferring with our most wise and far-sighted Emperor, his Imperial Majesty has expressed to my government the need to show to utmost restraint and mercy on China. Later today, my government will release a set of conditions necessary to maintain peace between Japan and the regime in China, and will appeal to the League of Nations for immediately intervention and investigation assistance.

Let the Chinese regime take not our temporary inaction for weakness, however. With the approval from his Imperial Majesty and the Imperial Diet, I have authorized limited mobilization of reserve Imperial Army forces. Together with cooperation from the Diet, I have passed legislation providing adequate funding and authorization for the demilitarization of northern China. And if absolutely necessary, I have authorized my commanders to prepare for the last resort.

Should the Chinese government choose to oppose peace and fund instability, there will be a lasting consequences. Today all of Japan mourns with the families of the martyrs. In tomorrow, all of Japan will rise up against the aggressor should their evil not be speedily eradicated."

Conditions for Peace in East Asia Required of the Chinese Regime in Kaifeng

Upon the unjustified anarchist attacks in the Japanese Kwangtung-Leased Territory, carried out by forces backed by the Chinese regime in Kaifeng, the attempted bombing of civilian offices in the Kwangtung-Leased Territory, also carried out by Chinese agents, and the open refuge and supply of insurgents in the Empire of Manchukuo by the Chinese regime, it has become clear that without diplomatic remedy, instability will reign in East Asia. As such, the following articles represent the conditions necessary for the peaceful resolution of the current crisis.

1. The government of China, based in Kaifeng shall immediately cease all funding, shelter, and supply of anarchist insurgents engaged in fighting against the Empire of Manchukuo and the Empire of Japan.
1a. Compliance with section one shall be enforced and regulated by Japanese and independent League of Nations observers.
2. The government of China shall immediately make efforts to arrest and extradite all all accessories to the bombing in the Kwangtung-Leased Territory, as well as insurgent attacks in Manchukuo.
2a. This effort shall be assisted by Japanese and independent League of Nations delegates to take part in investigations.
3. The government in China shall implement a demilitarized zone within 50 miles of the border with the Empire of Manchukuo, to be administered by an independent government chosen by the League of Nations.
3a. Chinese troops affiliated with the regime in Kaifeng shall be forbidden to enter the demilitarized zone.
3b. Compliance shall be ensured with an independent security force, and Japanese military delegates.
4. The government in China shall immediately remove from the Chinese military and civil administration all officers and functionaries whose names the Japanese Government will provide.
4a. The Chinese government shall hand over to Japanese detention all officers and functionaries whose names the Japanese Government will provide.
5. The government in China shall accept in China representatives of the Japanese Government for the suppression of subversive movements.
6. The government in China shall temporarily cease all hostilities against other Chinese states pending League of Nations mediation.
7. The government in China shall provide explanations to the Japanese Government for all hostile acts carried out in Manchukuo, and immediately accept full responsibility and issue an official apology.
8. The government in China shall provide the Japanese Government and victims of the Kwangtung Bombings the equivalent of 250 million Yen in reparations for its attack.
9. The government in China shall ensure free and fair commerce throughout all of its territories for all nations and individuals.
10. The government in China shall without delay remove from schoolbooks and public documents all propaganda against foreign nations.
11. The government in China shall notify the Japanese Government without delay of the execution of the measures comprised in the conditions for peace.
11a. The Chinese government shall notify the Japanese Government within 48 hours of receipt, or request an extension of the deadline.

[Orostan]

Kaifeng, February 25th 1938

"Pleasant letter."

A chuckle rippled through the room as Wu Peifu put down the packet of papers that he had just reviewed with his senior staff.

"They should have skipped all this and delivered the declaration of war." added General Li Zongren, receiving a hard glance from Chiang Kai-Shek who was seated next to Wu Peifu for speaking before the KMT chairman did.

"These terms are meant to be rejected. They want us to send our own back." said the KMT chairmen. "They probably aren't aiming for a war."

A soldier in a general's uniform at the far end of the long wood table stood up. "Even if we accepted only a third of these terms we would be betraying our country. The war has already started."

Marshal Wu pointed at him. "Who are you?"

"General Yan Xishan." he said, garnering blank expressions from around the room. "From Shaanxi."

The Marshal nodded. "I recognize the name. Good work in that hygiene campaign, by the way." He turned to Chiang. "How many men do we have on the border with Manchuria?"

Chiang cleared his throat. "Three hundred thousand, about."

"Not all well equipped." added General Li, attracting another look from the Chairman.

Wu glanced at an officer next to Yan with a red armband. "What do the Communists have?"

The Communist immediately responded. "Much less than three hundred thousand."

"I see. Chiang, what do you think about the Manchurian rebels we are taking in?"

The KMT leader paged through a report in front of him, finding the few lines of text he was looking for. "They are badly armed and equipped. They have rifles but only a few mountain guns. Most are hungry and exhausted."

Wu sighed. "I think we should try to get the Japanese to drop most of these conditions. I assume all of you have also read the letter?"

A chorus of "aye" and "yes" answered him.

"Good. I'll tell the foreign ministry to try to get the Japanese to drop conditions four, five, six, nine, and ten at a minimum. Tell your men to get ready for an attack if the foreign ministry fails. I'll contact our men fighting the Anhui and inform them of the situation."

"Yes sir!" answered every man in the room as all but the most senior of them shuffled out, leaving Wu, Chiang, and a few other of the most senior commanders to converse in more detail.

KAIFENG OBSERVER - FEB. 25TH
NORTHERN GOVERNMENT REJECTS JAPANESE ELEVEN DEMANDS, MAKES COUNTER OFFER

The sudden Japanese accusation against China and the transmission of their eleven demands to Kaifeng caused an eruption of discontent in the local press. The demands are widely interpreted as an extremely aggressive attack against Chinese sovereignty. Demands four, five, and ten are considered particularly bad because they would essentially transform China into a Japanese puppet state. Demonstrations in the center of Kaifeng had the Kuomintang and Communist labor unions rubbing shoulders as both competed for space to protest against Japanese aggression. President Wu has appealed for calm and fully published a Chinese counter offer that would meet some of the less extreme Japanese conditions in part. Rather than the 250 million yen train bombing reparations the Japanese are demanding he said the Republic was prepared to pay one hundred and twenty five million yen and also claim responsibility for the bombing and apologize as the Japanese demanded. The DMZ demand was also modified to be a twenty kilometer zone on both sides of the border enforced by both sides cooperating. The fourth, fifth, and tenth conditions were totally rejected without the possibility of negotiation on them his foreign minister announced. The Observer notes that the chatter among certain rebel leaders that have escaped from Manchuria and are well informed as to the internal activities of the Chinese government is that Wu should claim responsibility for any future attacks on the Japanese in Manchuria as well. They and their men, according to our reporters, do not view Wu's counter offer to the Japanese as a betrayal considering that while the negotiations between them and the Chinese take place there is likely to be a cease fire between rebels and Japanese occupation forces in Manchuria that would allow them to flood southwards and join Wu's army. Despite the attempts at negotiation the Japanese threat has many in the north tense. Our man in Beijing says that prominent citizens think the Japanese, if they decided to start a war, could do a great deal of damage. The head of Beijing's merchant association says that... continued on page A1

[Shohun]

Prime Minister's Official Residence
Tokyo, Japan
February 26, 1938

"Sir, the Imperial Armed Force's opinion is unanimous. If they do not accept the terms of our original offer, than their answer is a no." said General Itagaki pounding the table. Quickly organized, today's meeting was much smaller than the usual Imperial Conference, and was situated in a meeting room of the Prime Minister's Official Residence.

"General Itagaki, if we are seen by the international community as acting irrationally, then with whom shall they side?" hissed Foreign Minister Ugaki.

"If we are seen as weak, with whom shall the international community side with anyways, General Ugaki?" replied Itagaki.

"Gentlemen, please." said Prime Minister Konoe. "I have consulted with the Lord Keeper of the Privy Seal, and with his Imperial Majesty. Our aim should be to avoid serious conflict at all costs."

General Itagaki nodded. "Sir, have you seen my report? Our intelligence suggests that the Chinese have begun mobilizations in the north. If we wait too long, the military situation will be degraded. Our advances will be limited in the first few days if they are allowed to fully mobilize."

Konoe rubbed his forehead. "Prepare a response to the Chinese addressing their concerns with the initial draft. If they do not accept again, you have my authorization to begin limited military measures."

"What of their mobilization?" asked Ugaki. "They could be preparing to assist the insurgents with a distracting action."

"The possibility is laughable." replied Itagaki. "The combined strength of the North China Area Army is more than suitable to resist a Chinese attack. Give me a single Japanese division with bamboo spears, and I will pacify the entirety of North China." he laughed, pausing. "More seriously however, I have authorized the Kwangtung Army to reinforce the North China Area Army with the appropriate supplies for entrenched Chinese forces. Spare artillery guns and ammunition is being moved from depots near Korea as we speak. And I have specially requested that the Kwangtung Army provide enough supply of 'water purification chemicals' to sustain an offensive for two weeks. Forces are currently on high alert to begin operations upon notice from High Command."

Admiral Yonai nodded. "In coordination with the Imperial Manchukuo Air Force and the IJAAS, the Navy's air units are moving into position. The Army will be tasked with air defenses and tactical support in Rehe and along the rest of the border. In preparation of a potential offensive, I am aware they have assembled 42 K-2s, 184 Ki-3s, 242 K-27s, and 200 Ki15s for frontline service. In preparation for deeper strikes into China, 96 of our G3Ms have been readied on this axis.

The Navy is in charge of operations around Kwangtung, with 65 G3Ms, 24 B5Ns, 10 H4Hs, 48 A5Ms, and 24 A4Ns, and 30 E7Ks stationed in the territory and bases around it. Besides that, I have ordered 6 G3Ms to Saishu and dozens in the mainland as well as Formosa to prepare for long-range strikes."

"Very well." replied Konoe. "I believe we are sufficiently ready to begin offensive operations should we choose to if the deadline lapses. Send our reply and ready the Combined Fleet for potential action."

Reconsidered Conditions for Peace in East Asia Required of the Chinese Regime in Kaifeng
To: The Chinese Regime in Kaifeng
Encryption: High

Upon the unjustified anarchist attacks in the Japanese Kwangtung-Leased Territory, carried out by forces backed by the Chinese regime in Kaifeng, the attempted bombing of civilian offices in the Kwangtung-Leased Territory, also carried out by Chinese agents, and the open refuge and supply of insurgents in the Empire of Manchukuo by the Chinese regime, it has become clear that without diplomatic remedy, instability will reign in East Asia. As such, the following reconsidered articles represent the conditions necessary for the peaceful resolution of the current crisis.

1. The government of China, based in Kaifeng shall immediately cease all funding, shelter, and supply of anarchist insurgents engaged in fighting against the Empire of Manchukuo and the Empire of Japan.
1a. Compliance with section one shall be enforced and regulated by Japanese and independent League of Nations observers.
1b. The government of China shall open its arms depots, arsenals, and military bases at the request of international observers as part of the investigation into the origin of explosives.
1c. To the best of its ability, the Chinese government shall provide the names of all insurgents and their addresses to Japan.
1d. The government of China shall immediately cease all destabilizing efforts in the Empire of Manchukuo, and withdraw all of its agents.
2. The government of China shall immediately make efforts to arrest and extradite all all accessories to the bombing in the Kwangtung-Leased Territory, as well as insurgent attacks in Manchukuo.
2a. This effort shall be assisted by Japanese and independent League of Nations delegates to take part in investigations.
2b. Authorized delegates will be given full investigative powers equal to Chinese investigators.
2c. The government of China shall make efforts to arrest and extradite all insurgents, some of whose names the Japanese Government will provide.
3. The government in China shall implement a demilitarized zone within 30 miles of the border with the Empire of Manchukuo, to be administered by an independent government chosen by the League of Nations.
3a. Chinese troops affiliated with the regime in Kaifeng shall be forbidden to enter the demilitarized zone.
3b. Compliance shall be ensured with an independent security force, and Japanese military delegates.
3c. The government in China shall be limited to deploy a maximum of 100,000 military troops within 20 miles of the demilitarized zone.
3d. The government in China shall not deploy military aircraft within 20 miles of the demilitarized zone without the expressed consent of the League of Nations or informing the Japanese Embassy.
3e. The government in China shall not deploy any military ships within 12 nautical miles of the demilitarized zone.
4. The government in China shall accept in China representatives of the Japanese Government for talks regarding stabilization of the region.
5. The government in China shall temporarily cease all hostilities against other Chinese states pending League of Nations mediation.
5a. The government in China shall commit to easing civilian suffering in other Chinese states.
6. The government in China shall provide explanations to the Japanese Government for all hostile acts carried out in Manchukuo, and immediately accept full responsibility and issue an official apology.
6a. The official, written and verbal apology will be personally delivered by the Chinese President to the Japanese Ambassador.
6b. The Chinese government shall issue official written apologies to every victim of the bombing and their families individually.
6c. In accepting responsibility, the Chinese government recognizes the sovereignty of the Japanese Kwangtung-Leased Territory.
6d. In accepting responsibility, the Chinese government recognizes the de facto independence of the Empire of Manchukuo from the regime in Kaifeng.
7. The government in China shall provide the Japanese Government and victims of the Kwangtung Bombings the equivalent of 150 million Yen in reparations for its attack.
7a. Reparations shall be paid in installments of 5,000,000 Yen on a monthly basis, beginning on the 27th of February.
7b. Failure to pay reparations shall result in the seizure of Chinese property of equal value, or upon the exhaustion of assets, the termination of this agreement.
8. The government in China shall ensure free and fair commerce throughout all of its territories for all nations and individuals.
9. The government in China shall without delay remove from schoolbooks and public documents all untruthful propaganda against Japan.
9a. The Chinese government shall make efforts to prosecute individuals for instances of violent racial discrimination against Japanese or foreigners.
9b. The Chinese government will commit to protecting the lives of international citizens in China with the full extent of the law.
10. The government in China shall notify the Japanese Government without delay of the execution of the measures comprised in the conditions for peace.
10a. The Chinese government shall notify the Japanese Government within 48 hours of original receipt, or request an extension of the deadline.

[Upper Magica]

INTERNATIONAL TIMES - MARCH 1ST, 1938

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HEADLINE: JAPAN, CHINA - AT BRINK OF WAR!

In the last few days, the Times has received alarming reports of Japanese and Chinese troops along the common Sino-Manchurian border on war footing, while our correspondents in East Asian ports have sighted an increased activity by Japanese naval vessels and aeroplanes.

Although the situation isn't exactly clear, these moves of posturing have largely been spurred by what Japan describes as 'anarchist' banditry supported by the Chinese government, while the Kaifeng Observer has openly posited that "...the Chinese government provides them with resources to launch their attacks."

Japan has openly called for an investigation by League of Nations observers, while reports have already come in of small border skirmishes between the two mobilizing forces.

Premier Daladier of France has reiterated his call for 'calm to prevail in East Asia', while openly calling for the League of Nations to intervene and arbitrate between the two parties in order to establish a settlement, while other leaders have not commented on this matter as of yet.

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STALIN LAYS DOWN THE LAW - REQUESTS INTERVENTION, PLANS TO HOLD REFERENDUM ON INTEGRATION INTO USSR

After a weeks-long standoff characterized by mass demonstrations, rioting, and even political assassinations, the situation in Transcaucasia has finally taken a turn for the worse, as Transcaucasian troops, acting on a proclamation of martial law by the Man of Steel, have mobilized both within and without the borders of the Azerbaijani state. Reporters on the ground have indicated that sporadic fighting is ongoing, while Azerbaijani and 'White' Transcaucasian leaders and notables holed up in that state have already fled the country.

Additionally, to stem the tide of domestic unrest elsewhere, the Premier has publicly and formally requested the entry of Soviet troops in order '...to stabilize the unrest and protect the fellow workers and peasants of Transcaucasia.' Rumors are abound of a referendum to join the Transcaucasian Republic with the Soviet Union, though no official confirmation has been expressed by either party.

Reactions worldwide have been mixed - many regard the Transcaucasus as an artificial state, while others say this is only a stepping stone to further Soviet aggression.

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SECOND MONTH OF SPECULATION-DRIVEN MARKET ACTIVITY; CORRECTION IN FUTURE, SAYS BABSON

Tensions between global powers are escalating, causing investors to grow increasingly anxious about the stability of the stock market. As the world inches closer to another possible war, the economic outlook is uncertain.

The year 1938 has been marked by several points of global unrest that have contributed to market instability. In January, the crisis in Caucasia fuelled speculation on oil prices, leading to a ripple effect in the global automotive and engine sectors. A month later, investigations revealed the existence of numerous fraudulent bonds and stocks in petrochemical companies distributed by Mssr. Serge Stavisky, further bringing down market confidence despite assurances from government officials and even Premier Daladier and Reichskanzler von Papen chiming in on the conversation.

With Asian and Balkan markets in doubt on top of the global tension, the speculation has grown wild, as New York, London, Paris, Moscow and Berlin are reporting wild trends on various industrial indices either in the upward or downward direction, as it seems growth has hit a peak.

In response, Roger Babson, of the famous Wall Street circular "Babson's" and head of the eponymous Babson Institute, has published an article which many on both sides of the pond - even as far as the Soviet Union - have decried as an alarmist piece. In the article, he warns: "A crash is coming, and it may be terrific... ...the vicious circle will get in full swing and the result will be a serious business collapse. There may be a stampede for selling which will exceed anything that the Stock Exchange has ever witnessed. Wise are those investors who now get out of debt."

The reaction from global trading floors has been immediate, as some investors have taken Babson's warning to heart - the Dow Jones dropped by five percentage points, while European markets have yet to react as of time of writing. In addition, the price of gold and silver has steadily increased as investors seek to offset any potential disruption of business. Others remain cautiously optimistic, holding onto their positions and hoping the worst will not come to pass.

The situation remains fluid, and many are watching the stock market closely in the days and weeks ahead. With Babson's prediction ringing in their ears, investors are left to wonder whether they will weather the storm or be caught in the crosshairs of a financial crisis.

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NATIONALISTS, COMMUNISTS IN HUNGARY ANNOUNCE BOYCOTT OF UPCOMING ELECTIONS

In response to the plan of the Danubian Confederation to hold elections in Hungary, a confederation of Hungarian nationalist groups and parties, operating more or less underground, have openly announced their intention to hold a boycott of any such election.

At the spearhead of this boycott, the Hungarist Movement, lead by Ferenc Szalasi, an up-and-coming nationalist demagogue with Fascist sympathies, has declared their militant opposition in the party's underground newspapers, threatening to use 'any and all means' to subvert the forthcoming elections, described by Szalasi in the party's literature as '...Austrian nonsense conjured up to oppress the Hungarian land, no doubt spurred by their internationalist Judeo-Bolshevik paymasters in Geneva.'

Curiously enough, this has been a matter on which Communist and Fascist alike agree, though not necessarily in words - writing from exile in Crimea, Bela Kun, former revolutionary leader and leader-in-exile of the Hungarian Communist Party, decried the Danubian plans as '..typical Habsburg chauvinism at work; the blue-bloods seriously believe their magnificent charade will be believed by the wretched, poor, and dumb working class. We are not fooled.'

Although the rumors of general strike and overall hooliganism forecast by these radical parties in response to Danubian moves to integrate the territory further within the Federation are unlikely to manifest anything more than mild disruption, the resistance displayed by these two entirely oppositional blocs may serve to bolster these odious ideologies within Hungary further.

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HOMOSEXUAL DOCTOR MAGNUS HIRSCHFELD PASSES, RIOT IN PARIS

Internationally infamous doctor Magnus Hirschfeld passed away from a heart attack on the 28th of February in Berlin. The doctor, aged 69 when he passed, was most well-known for his research into and advocacy for those who feel romantic affection towards their own sex. Founder of the Institute for Sexology in 1919, Hirschfeld pioneered not only this wholly new field of biological and societal science, but also developed new medical procedures for those who are transsexual, who feel they have been born in the wrong body. Aside from pioneering the science of the medical transition of sex, Hirschfeld also assisted patients in relationship counselling, including sexual counselling, and made important contributions in anthropology.

Most notable, however, are the contributions made by Hirschfeld in the political emancipation of homosexuals and lesbians. Founder of the Scientific-Humanitarian Committee, Hirschfeld played an important role in the crusade to remove certain provisions regarding homosexuality and sodomy from the criminal codes in his native Germany, while cooperating internationally to those working towards the same goal in Austria, Italy, France, Spain, Portugal, the Low Countries, Poland, Sweden, Denmark and Britain, among others. While the success of Hirschfeld in changing national legislation has been minor, his movement has successfully blocked the passage of more restrictive sodomy laws while also pressuring municipal and provincial authorities from removing anti-homosexual codes.

The latter is arguably why the death of Hirschfeld, who was growing less and less active with age, was marked by so many different people across Europe, with sometimes catastrophic results. In many cities, silent vigils went unmarked in fear of police retaliation. The same was true in the Paris quarter of Montmartre, where local homosexual, lesbian, and transvestite men and women gathered in club Le Monocle to remember Hirschfeld. Part of the memorial service was a viewing of the film ‘Antigone’ by Hirschfeld and Austrian film producer Richard Oswald, a reimagining of the classical story released in 1936. In the film, however, Antigone finds solace for the death of her brothers with a maid, and it is as much this relationship as her perseverance in giving her brothers their funerary rites that causes conflict with Creon. It was the last film Hirschfeld wrote before passing, joining the ranks of Different from the Others (1919) and Laws of Love (1927).

The viewing was however interrupted by Parisian police, who came out in force to check the bar’s liquor license and to enforce the city’s laws on public indecency. Enraged by this naked show of police force during the viewing of a film criticising authoritarian use of state power, instead of complying with police orders, the men and women present in Le Monocle resisted, which turned into a skirmish. Eventually, police were forced out of the building in a hail of glass and furniture. Outside, the residents of Montmartre had gathered, many of whom were themselves homosexual or had homosexual friends and family, and had seen the way police forces had hurt them or their loved ones before. A riot ensued in which ten police officers and seventeen rioters were injured, although the police were unable to make any arrests. The municipal and national government have, thus far, declined to comment. After negotiations with important figures in the community, police were allowed to re-enter the quarter if investigations into corrupt police actions was undertaken. The local police chief acceded to these demands, but it is as of yet unclear if these will actually take place.

While the peace in Montmartre has returned, the same cannot be said for other cities. In response to the Monocle Riot, marches of the decriminalisation of homosexual and lesbian acts and in solidarity with Le Monocle were held in almost every European capital, including London, Berlin, Vienna, Amsterdam, Prague and Budapest. Responses to this sudden change in the attitude of this minority among people have been mixed. It is as of yet unclear how authorities will react; whether talks of decriminalisation will be aided by this sudden increase in visibility, or whether they will try to push the spirit of Magnus Hirschfeld back into the bottle.

Proclamation for all patriots!

Our country is in crisis. Once again, its enemies, both from the outside and the inside, are gathering to rip apart our fatherland. And our government is simply standing and watching. They have forgotten the sacrifices of our forefathers, the blood that was shed in 1913 in Dobrogea, the fields of dead heroes of 1927, all those who have died for the creation of our holy ideal - Greater Romania. And now, when it is once again threatened, they are doing nothing. Bulgarians are wrecking havoc in our borders, murdering our weak ministers, bullying the Romanians of Dobrogea into submission.

What does the government do? Nothing. Hungarians and Habsburgs are agitating in Transylvania, our ancestral land, wishing for a thousand years more of oppressing Romanians, in the name of their accursed Catholic faith. What does Bucharest do? Nothing. Ukrainians, those traitors, still hold northern Bucovina, and the cries of our brothers from Cernăuți can be heard all the way here - and what do our leaders do? Nothing. It is time for us to do something then, because if we would wait for our leaders to act, it would be too late.

We call for all patriots, for all God-loving Romanians, to join us in protecting the sacrifices of our parents and grandparents. We call for all Romanians in Dobrogea to rise against the Bulgarians, to ensure that the land of Mircea the Elder stays Romanian. We call for all brave Romanians in Transylvania to rise and to patrol the border, to stand watch for any Habsburg intruders, until one day, with God's will, our border will once more reach the Tisa. And we call upon the Romanians of northern Bucovina, those still subject to foreign rule, of the last of our historical province still held by savages, to rise against their oppressors and wait for the soon to come day of national liberation.

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Government announces plans for oil production expansion

Today, the government has announced that it seeks to expand the oil production in the region of Ploiești by building at the very least two new refineries, using the latest available technologies. With the current situation on the continent, and with the complicated relationship between the USSR and the rest of Europe, Romania's oil and gas production has been, alongside that of the Ottoman Empire, absolutely crucial for the continent, particularly for its great industrial powers, due to both its high rate of production and its geographical proximity.

With the Ottoman government announcing investments in Iraq, Kurdistan and Northern Syria, alongside extra funding for the Turkish Petroleum Company, the Romanian government was forced to respond due to the importance of the oil and gas production for the country's economy. With government funding and support, Steaua Română and Astra are poised to both increase the oil production and to expand the country's refinement capabilities.

The government is also exploring options to attract foreign capital in order to further develop the infrastructure necessary to better export petroleum based products to the rest of Europe. First contacts have already been made with the French and British governments in the hope of investments, and Germany has also been contacted, partially for investments, and partially to serve as a mediator between Romania and Danubia in order to potentially encourage the use of the Danube as a route for exports.

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Romanian Army to seek armament deals, license production

Considering the deteriorating situation in Europe, and the rising threat for Romania's sovereignty and territorial integrity, particularly due to tensions with Romania's neighbors and the looming threat to the east of the continent formed by the specter of socialism, the Romanian government has announced that it will invest into a truly massive reorganization and modernization, marking a great increase in the country's military spending. Reforms will focus on reducing the size of the active army but increasing its training and professionalism, in order to account for the latest tactics and strategies of war, and in order to better put the lessons learned from the Great Balkan War into practice.

It is as such the government's desire to attract a foreign military mission to counterbalance's Bulgaria's use of a Danubian military mission - the first overtures have already been made towards France, Britain, and Germany in order to find out the conditions and benefits that each of these great powers would require and offer in order to send a military mission. Furthermore, the army will seek to acquire at least 300 modern medium tanks, 100 modern light tanks, and modern artillery and anti-tank weaponry.

Inquiries have been in the above mentioned great powers for the offers that the military industries of these countries would offer, Romania would also be interested in acquiring the production license for a modern medium tank and for several different types of anti-tank weaponry. The government has also announced further funding for the Industria Aeronautică Română, in order for it to be able to complete its currently in-work low-wing monoplane, all-metal monocoque fighter and ground-attack aircraft, which is planned to become the main plane of the Romanian Air Force and to remove the country's dependence on foreign air designs.