International Democracy Conference
Honolulu, Great Britain
The British invited many of the nations of the world to the sun-drenched isles of Hawai'i for the International Democracy Conference. Initially, it was intended to be an outlet to discuss how best to bring democracy to the world; however, that changed quickly. The announcement that Moscow would be sending delegates understandably proved to be controversial; many countries, such as the Mexican Empire and Venezuela, outright refused to send delegates, while others, such as Brazil, showed up but made a point of obstructing the Soviets.
The host's presentation was largely about championing liberal democracy, and demonstrating the violent, undemocratic method that many Communist governments used to come to power. Yankees who were present at the conference protested loudly when Herbert Hoover showed up to speak as part of the British delegation. Most of Britain's allies and dominions showed up as well; however, few made their presence particularly known.
The Soviet delegation's presentations, which many were apprehensive about, stressed that democracy and colonialism were incompatible, and focused on continuing and accelerating the process of decolonization, encouraging the British, Germans, and others to let their colonies go as well as loosen ties with the dominions. The Colonial Conference that the British held themselves (see below) did under undercut the message somewhat. Amusingly, near the end of the Soviet presentation, a Brazilian angry that he was not getting his dinner threw a shoe at the Soviet speaker, then proceeded to storm out of the room. Elsewhere, the Soviets made something of a nuisance of themselves at the conference, interrupting the other presentations multiple times. Much to the irritation of the Brazilians, an Ecuadorian showed up to speak, facilitated by the Soviets.
Additionally, a Finnish delegation showed up to speak after the Soviets were finished, largely pushing points about the superiority of non-capitalist economic systems. Despite the Brazilians again being visibly irritated, the Finns were far better received than the Soviets, mainly because they were noticeably less disruptive.
The Indians also showed up, marginally supporting the Soviet points on decolonization, although they did suggest a transition period of home-rule as a dominion, similar to what Germany appears to be planning for its colonies. The Indian delegation also spoke in favor of the Yankee form of Socialism, which combines popular democracy with a non-capitalist economy.
The Brazilian delegation arrived accompanied by an entourage of scantily clad samba dancers, making quite the impression on the other attendees. This impression did not last long; as soon as the leader of the Brazilian delegation, Simon Duville, stepped up to speak, it was clear that he was inebriated. He proceeded to slam his shoe down on the table, then sang the Brazilian national anthem loud and off-key as he marched out of the conference hall and around Honolulu while housing a portrait of Getulio Vargas high above his head. The other Brazilian delegates did much the same, trashing the conference hall in their inebriation.
What happened the final day was a verbal altercation followed by a physical brawl between the Brazilian and Soviet delegations after a drunken Brazilian threw his shoe at a Soviet. Within minutes, this escalated into a multinational melee and spilled into the street outside the conference hall, to the benefit of those standing outside. There were multiple injuries, and a single fatality: Simon Duville was killed after a Soviet attendee repeatedly bashed his head with a glass bottle.
In hindsight, the whole conference was not a very productive one.
Economic Growth
London, Great Britain
While it appeared that recovery from the 1929 London Stock Market Crash, the Great Depression, and its aftereffects was under way, 1938 has seen it decelerate. Economists are blaming the heightening of tensions on the European continent and the conflict in the Middle East as primary causes, as trade in both regions has seen disruptions.
EVENTS IN THE AMERICAS
Canada Creates Mining and Energy Incentives
Ottawa, Canada
As a further stimulus into the recovering Canadian economy, Parliament has passed a measure that gives people and companies looking to get into the mining, resource, and energy sectors of the economy with tax breaks, subsidies, and other incentives. Coupled with momentum from the previous year's various stimulus packages, this has been enough to mitigate and even partly reverse the effects that the worldwide slowdown would have had on the Canadian economy. In fact some economists believe that the Canadian economy may be able to fully recover from the Great Depression by the beginning of 1941, putting Canada in an excellent position for the future.
Pro-Socialist Demonstrations in Missouri
St. Louis, Confederate States of America
Thousands of Missourian workers took to the streets in the first few months of 1938 to call for the Confederate government to reconsider its policy relevant to the state, or even outright cede it to the Yankees. Missouri was seized by the Dixies during the events of 1933, and has remained disputed territory between the CSA and USSA in the years since then. There is a significant pro-socialist element in Missouri, especially in the major cities and the areas adjacent to the Yankee border. That element has become increasingly disillusioned with what they believe to be an illegal Confederate occupation of the area, and is calling for change.
(+3% Dissent)
Mexican Civil War
Mexico City, Mexico
The situation for the Mexican Empire went from bad to worse almost immediately after 1938 started, as both the British and Dixies withdrew their pro-imperial expeditionary forces from the region from the one open coast. Neither the socialists nor their Yankee allies pressed the retreating foreigners, perhaps in fear of retaliation elsewhere. Now badly outnumbered and in an unideal position, it would take nothing short of a miracle for the Imperials to be able to turn the war around. That miracle did not come.
By February, the Socialists had begun a definitive push towards Mexico City itself, from north, south, and west. The Imperials elected to withdraw all the forces to defend Mexico City, with a small task force intended to keep the corridor between Mexico City and Veracruz open and to allow an avenue for exit if necessary. The socialists, with better planes, were able to punch what was left of the Imperial air force out of the sky.
The Battle of Mexico City itself began in late March as a column of Yankee armor reached the outskirts of the city from the north. The northern force quickly became bogged down as the fast-moving Yankee armor could not advance in the dense urban environment, and only after almost a month of intense building-by-building fighting and concurrent aerial bombardment, not helped by numerous imperial counterattacks, did the socialists finally manage reach the city center from the north. From the west, the situation was little better; unfriendly terrain outside the city meant that the advance was stalled far shy of the city center. The advance from the south, however, was more successful. By late April the imperial lines had collapsed, and, incidentally on May Day, the socialist forces entered the city center, securing the parliament building, the imperial palace, and other government buildings.
As the socialists pushed through, victorious, some members of the old government managed to escape the city and reach Veracruz in time, seeking asylum in Dixie. Prime Minister Marquez was not one of them, having hanged himself in his office rather than face a socialist tribunal. Empress Maria, however, was captured by the socialists, and socialist leader Raphael Espinoza has declared that she will face a trial by the Mexican people. With the leadership gutted, the Mexican Empire disintegrated and ceased to exist as a functional nation.
Veracruz itself fell a week later, as the Mexican socialists began the process of eliminating the various pockets of resistance. The socialists arrived before the fleeing Imperials could start the process of scuttling their fleet, enabling the socialists to capture it wholesale. Nevertheless, the Mexican Revolution is complete, and another piece of the Emperor Napoleon III Bonaparte's legacy is no more.
(USSA: -10 Infantry III Brigades)
(Socialist Mexico: -5 Infantry III Brigades, -2 Artillery II Brigades, -25 Militia Brigades, +3 Destroyers, +2 Light Cruisers, +1 Heavy Cruiser)
(Mexican Empire: -6 Infantry III Brigades, -17 Militia Brigades, -2 Artillery II Brigades, -1 Fighter I Wing, -1 Interceptor I Wing, -Existence)
Self-Rule For Spanish West Indies?
Havana, Spanish Cuba
Members of the current center-left Spanish government, even before the Filipino rising later in the year, made several statements about a possible future move to give Spain's Caribbean possessions some form of devolved government of home-rule in the not-too-distant future. These statements have been received fairly well in said Caribbean possessions, where the last time a serious independence attempt was made ended up being an ill-fated rebellion in Cuba in 1898. People hope this may result in permanent change for the better, although there is some concern regarding the destabilizing influence the USSA could potentially have in the region.
(Cuba, Hispaniola, Puerto Rico: -3% Dissent)
Centroamerican Elections
Tegucigalpa, Federal Republic of Central America
The people of the Federal Republic of Central America went to the polls this year in order to determine who would run their country for the next four years. Juan Sagasta Batista's conservative administration had seen a deterioration of the FRCA's former economic competitiveness thanks to a breakdown of the the country's once thriving trade relationship with the United Socialist States of America. In the first round of voting, no candidate won a majority, with Sagasta and the socialist candidate Augusto Cesar Sandino finishing one-two. In the run-off election, after a heated battle, Sandino emerged victorious. The election of yet another socialist leader in the Americas is worrying to quite a few countries, but result is most concerning to the fledgling Yucatan Republic, which is now completely surrounded on land by socialist-friendly states. Sandino has promised to push for better relations with Chicago, and work to improve the lives of the Centroamerican people.
(+5% Dissent)
Elections in Colombia
Bogota, Colombia
The Colombian people went to the polls in the first half of 1938. Opinion of the social democratic government going into the elections was generally favorable, although there was moderate opposition to involvement in the Mexican Civil War, and Alfonso Lopez Pumarejo was easily re-elected. However, he did face some conservative opposition, from a pro-Brazil, anti-socialist lobby, who spent the election less trying to seriously win and more trying to be a general annoyance. The elections were also marred by a degree of violence at polling stations, especially in the southern and eastern parts of the country, against the government.
(+5% Dissent)
War in Ecuador
Quito, Ecuador
The Brazilian invasion of Ecuador continued in earnest this year. At the end of last year, the Brazilians had reached the outskirts of Quito, where Ricardo Paredes, the bulk of his government, and the remnants of the Ecuadorian military had holed up. In January, Brazil again called for the Ecuadorians to surrender their arms. Some Ecuadorian units, seeing that the fight was hopeless and not wanting to risk further death, did surrender, but most remained. The assault on Quito began earnestly; a brutal Brazilian bombing campaign against the city in order to smash its defenses. The army in the south rapidly moved up the coast to surround the capital. The Ecuadorians, even with Brazilian air superiority, were able to inflict significant casualties, thanks to superior weaponry, but it was in vain as the Brazilians made a slow but steady advance through the outskirts of the city, and by April it had fallen. With the fall of Quito, most of the rest of Ecuador was quick to collapse, although some scattered pockets of disorganized resistance remain.
Ricardo Paredes and some of the upper echelons of his government were able to escape to Colombia before Quito fell, and before they could be captured by the encroaching Brazilians. The Brazilian military has created a rough provisional government out of anti-communists from the lower echelons of the Ecuadorian civil service; Eloy Gaspar Ureta, one of the generals who led and was imprisoned after last year's failed coup against Paredes, has been given the country's leadership, for now. In Rio de Janeiro, President Vargas unveiled a monument to the Ecuadorian War, and to the lives lost in the defense of democracy against Communism.
(Brazil: -6 Infantry II Brigades, -2 Infantry III Brigades)
(Ecuador: -5 Infantry III Brigades, -2 Infantry IV Brigades, -2 Artillery II Brigades)
Crackdown on Peru-Bolivian Communists
Lima, Peru-Bolivia
The Peru-Bolivian government began campaigns against the "Communist threat" within the country. The campaign was twofold: one, the arrest of the leadership of all Communist groups within the country; and two, the distribution of anti-Communist propaganda. When the first was attempted, most targets had already gotten word of what was coming and were able to go underground in time. Several managed to be arrested anyway, and several Soviet nationals in the country were detained as well. Although they are now underground, the Communists pose even less of a threat than before. Some within the Liberal Party however are upset at what they see as an unlawful breach of civil liberties.
(+3% Dissent)
EVENTS IN EUROPE
Tensions Along Franco-German Border
Brussels, France
After last year's swift invasion and annexation of Belgium by the French Fourth Republic, tensions along the now extended border between France and Germany have continued to escalate rapidly. The events had already begun in late January when several thousand Belgians attempting to flee the country and seek asylum in Germany attempted to cross the border. The French couldn't have this, and the French army swiftly moved to block the refugees from crossing the border before the bulk of them could get there. Some made it, but most did not, and dozens of Belgians were even shot and killed in their bid to reach Germany. This event will likely not repeat, as the colossal French military presence in Belgium is discouraging such activities. Additionally, the French government froze and nationalized all assets of German nationals within the country.
(France: -3% Dissent)
France Completes National Factories
Paris, France
The French government's "National Factories" program, a nationwide effort to put millions of previously unemployed Frenchmen back to work with the construction of new factories, was announced by Eugene Deloncle to have been completed this year, well in advance what many experts had predicted. The economic boost from the program's completion already has been noticeable, going so far as to rival the Soviet Union's, although it is likely that this is just one-off growth.
Spain Builds Forts in Pyrenees
Bilbao, Spain
Noting the French aggression towards Belgium, and the rapid cooling of Franco-Spanish relations, the Spanish have begun the construction of a line of fortifications along the heavily mountainous border between the two countries. Placed along strategic locations, incuding mountain passes and the coastline, the fortifications, once complete, will hopefully allow the Spanish military to repulse a French land invasion should such an event occur.
Portugal to Hold Elections
Lisbon, Portugal
The new Portuguese president, Domingos Oliveira, has declared that his country will be holding parliamentary elections in the autumn of 1938, on an effort to help bring an end to the turmoil that has wracked the country ocer the past several years. Oliveira has already declared that all Communist or Communist-affiliated parties will be barred from the elections, which has angered a small section of the populace. Regardless of what the Communists have to say, the decision has been met with much approval from the people, although some elements of the military are decidedly unpleased with the new developments.
(-4 % Dissent)
Skirmishes Along Polish-Soviet Border
Warsaw, Poland
A brief round of fighting occurred in May 1938 along the Soblieki Line between Poland and the Soviet Union, after shots were fired across the border. It was reported that the Soviets fired first, but these reports have been disputed, both by Moscow and several observers. The border incident has both governments - and many of their neighbors - increasingly on edge, especially as the situation in Western Europe continues to deteriorate.
Hungary Builds Border Defenses
Budapest, Hungary
Concerned about the threat the unfriendly right-wing states of Austria and Croatia might pose to Hungary in the event of war, the Hungarian government has begun the construction of fortifications and other defenses along its borders, especially along the borders with the aforementioned two countries. While border defenses already exist, the new ones are being designed to be of the most modern standard. The Hungarian government hopes that this will give the Hungarian military the critical edge if the country is invaded.
Elections in Slovenia
Ljubljana, Slovenia
The Slovene people went to the polls in 1938 in order to determine their leadership for the next four years. The country had effectively been in a state of national panic for the last few months, after the Croatian coup, with fears that an invasion might happen tomorrow. As a result, turnout was significantly lower than expected. Andrej Gosar encouraged all parties to form a "Unity Coalition" as this was clearly not a time for political bickering. The Conservative Party took up the offer, and agreed to join forces with the Liberals. Most other parties did the same, such that there was no real unified opposition, and Andrej Gosar easily ended up as the leader of Slovenia, again.
(+3% Dissent)
Slovenia Builds Border Defenses
Ljubljana, Slovenia
The tiny country of Slovenia, especially after last year's Croatian coup, has effectively become an island in a sea of unfriendly neighbors. In the increasingly likely event that Slovenia is invaded, it will indeed be quite difficult to defend it for long. To attempt to at least partially rectify this, the Slovenian government has passed a measure that provides for funding for the construction of border defenses around the entirety of the country. Some experts however believe that it is too little, too late, and that the resources could best be used elsewhere.
Croatian Leftists Flee to Serbia
Budapest, Serbia
With the recent purges of Communists in newly dictatorial Croatia, many Communist leaders were forced to go underground. This also soon became unpractical thanks to the spread of Croatian secret police, and in order to keep their movement alive, in early 1938, many Communists were somehow able to escape across the border and into Serbia. Serbia seems willing to tolerate their presence, and has refused demands by Ante Pavelic to extradite them, as it gives them a potential weapon to use in case Croatia and Serbia go to war.
(Croatia: -4% Dissent; Serbia: +2% Dissent)
Failed Military Coup in Romania
Bucharest, Romania
As the new Communist government in Romania set about collectivizing and socializing the economy, there was decided. One general, backed by anti-Communist elements in the military, attempted to lead his soldiers into the capital in an attempt to overthrow Stefan Foris and restore "legitimate rule" to the country. Fighting erupted in the streets, but the general in question was killed before he reached the parliament building, causing the coup to fall apart. This is not the only item of note in Romania; one of King Boris III's aides revealed that the king fears for his safety, and several violent altercations have broken out in Parliament. It is clear that the current "dual system" arrangement is a temporary one at best.
(-3 Infantry III Brigades, -1 Infantry IV Brigades, -1 Artillery II brigades)
King Boris Takes Absolute Power
Sofia, Bulgaria
Seeing as both Greece and Romania have fallen to communist governments, and as the Communist movement within Bulgaria continues to grow in strength, King Boris III has elected to intervene and take a more heavy-handed approach to maintain order; he dissolved the country's legislature and took absolute power himself. Boris, supported by much of the military, quickly began the process of rounding up Communist-affiliated groups within the country, and most have been forced to go underground. There was significant concern that a repeat of America or South Africa might occur in Bulgaria; however, it did not. Despite some minor fighting and widespread mutiny, by June order reigned supreme. Boris has promised a new, brighter future for Bulgaria, free from the "twin evils" of liberalism and communism.
(+8% Dissent; -3 Infantry III Brigades, -2 Artillery II Brigades)
The Epirus Conflict
Ioannia, Greece
The Communist regime in Athens continued to attempt to solidify its control over the country, especially in Epirus, where an anti-communist insurgency had been brewing for the better part of a year. The year began with an all-out propaganda war against the Italians, who the Greeks claimed were supporting the insurgency. Government media portrayed the Italians as evil imperialists who oppressed the Greeks and stole from Greek culture, from the days of the Roman Empire all the way to the present day. In Epirus itself, anti-Italian marches were held in the cities, in an effort to show Italy that Greece would not bow down to them.
On the battlefield, the government took a far more direct approach, ramping up their military forces and raiding insurgent strongholds. The government forces took no prisoners, shooting all insurgents on sight, even those who attempted to surrender. While the insurgency continues in the region's rugged terrain, it has drastically decreased in scope.
(-5% Dissent, -3 Infantry III Brigades, -1 Artillery II Brigade)
Ivan Smirnov Under Fire
Moscow, Soviet Union
A number of intense political debates have erupted within the leadership Communist Party of the Soviet Union regarding Ivan Smirnov and his approach to foreign policy. Smirnov has come under attack by two factions, one of whom supports alignment with the LDN over alignment with the Axis, and the other of whom supports the reverse. This is unusual for the traditionally rather opaque Soviet leadership, as the current arguments are quite public. It also shows that there is significant distrust of Ivan Smirnov within the Party, even from some of his former supporters, and his days in his current position may be numbered.
(+3% Dissent)