Daftpanzer
canonically ambiguous
Apologies for the delay and thank you for your patience 
Normal update service will now be resumed, I dearly hope.
1st July 1938 to 1st October 1938
The Situation in South America
With the US public unhappy over the mounting casualties, and undecided about whether to support the war with Argentina, US President Franklin D. Roosevelt was probably glad to see a swift end to this war. Peace coincided with an upswing in the economy to raise the President's approval rating.
The Argentine government agreed to recognise the country of Uruguay once again. Brazilian troops withdrew, while US marines stayed to help set up a democratic, pro-USA government. The Uruguayans are grateful to the US for their liberation, and large amounts of material aid have also helped relations...
Meanwhile, Argentina's government is weakened. It has lost respect among hard-line patriots, while moderates are still upset over the damage to the country's economy. However, the ruling generals still have a grip on the country, and it seems unlikely that they will be ousted from power anytime soon. The economy is already recovering as trade restrictions have been eased. The UK in particular seems eager to restore important trade links with Argentina.
(Argentina: +$1/turn)
The region is not at peace, however. Bolivian troops continue to fight an undeclared war against Paraguay. While still officially a 'border incident', things are more like full scale war, if the number of casualties are anything to go by.
Peru still remains on the sidelines, no doubt to Argentina's annoyance. The Peruvians probably fear the US pacific fleet appearing off their own shores.
Japan, USA and USSR: Conclusion of the Admiral Golovko Incident
Franklin D. Roosevelt officially granted asylum to the soviet sailors and troops who had fled to the Aleutian islands onboard the cruiser 'Admiral Golovko'.
This was potentially damaging for US-Soviet relations, such as they were, but it seems Stalin has chosen to completely ignore the issue. The US press has generally supported the President's decision. As for the ex-soviet sailors, they face an uncertain future in the US, knowing they can never return to their homes and families while Stalin is in power...
However, this was not the end of the story. Perhaps unwisely, the President ordered the ship itself to be towed back to Soviet territory. But Japanese vessels were shadowing the vessel...
Once the Admiral Golovko was taken beyond US territorial waters, at midnight local time on July 12th, the Japanese opened fire. The ship was struck by several torpedoes and quickly sank, causing the death of 2 US navy personnel who were onboard at the time and were unable to escape.
Now it is US-Japanese relations which are under threat. Japan has taken a slightly apologetic stance. But the US public are outraged, and scathing anti-Japanese articles have been running almost continuously in US newspapers.
The Soviet-Japanese War
Things continued to grind on in the same fashion. The Soviets conscripted countless thousands more troops, and launched another major offensive in the summer. Again, more ground was gained, with human waves of Soviet conscripts surrounding and overwhelming enemy strongpoints. And again, the conscripts suffered badly, with casualties from the last three months alone estimated at somewhere near the five-hundred-thousand mark...
Soviet superiority in vehicles and artillery was still not having as great an impact as hoped. The tactics on both sides were not very refined, either. Though it was much easier for the Japanese to dig-in and defend, than it was for the Soviets to organise an offensive across vast stretches of wild and road-less terrain. As the dreaded Purges continued, the Red Army's leadership was further damaged by the arrest and execution of any officer involved in any defeat or failure - of which there were many. On top of which, many successful officers were executed for no other reason than being 'political opponents' of the regime.
Japan had the edge in aircraft quality, particularly with the new generation of fast and manoeuvrable fighters that were being rushed into service. The Soviets could counter with sheer numbers for a while - especially as Japan's air force was widely spread out - though this advantage was steadily worn away.
Despite his recent naval disasters, Stalin ordered the last of his navy into harassing attacks against the Japanese. Courageous submarine crews did some damage to Japanese shipping before being wiped out. At which point, the Soviet navy basically ceased to exist.
Japan continued to have superior infantry weapons (including the excellent Type-90 infantry machine gun, and Type-5 semi-auto rifle) and had concentrated its most experienced soldiers into elite units, which were used to plug holes in the lines. But Despite the best Japanese efforts, the front line moved steadily south-eastwards towards Korea. The Soviet base at Vladivostok held out under constant sea and air bombardment, and the Japanese toe-hold in Kamchatka had to be abandoned.
(USSR: -19 land, -5 air, -1 navy. Japan: -$1/turn, -9 land, -3 air)
As winter sets in, the Soviets have overrun most of 'Manchukuo' but are bogged down in the mountainous borders of Korea. The toll on human life has been appalling, yet the world hardly seems interested anymore. The remoteness of the region and the repressive nature of the regimes on both sides has not allowed much in the way of journalism. The onset of interesting events in europe has dominated headlines in the west.
China
Even while some Japanese troops remained within Chinese territory, Chiang Kai-shek ordered his Nationlist forces to renew hostilities with the Communists. Efforts were made to mobilise the population in a 'great struggle for freedom'. Theoretically, one in every ten men would report for training with the army, though the Nationalists hardly had the arms to equip such numbers. Instead they focused on improving their air force, which relentlessly bombed the communist strong holds in the north.
The Communists resisted. They were well entrenched in some areas, and newly equipped with some Soviet arms and advisors. The Nationalist ground offensive had stalled long before the onset of winter. Territory was taken in the north-east, but the Communist core areas held out defiantly.
(Nationalist China: -5 land, -1 air)
Nationalist forces also renewed their attack on the southern warlords, with undoubted success, but allegedly with great brutality also. It is claimed that whole villages were torched and their inhabitants massacred, as there was a brutal crackdown against communist sympathisers in the region.
(Nationalist China: +$1/turn, -1 land)
Ironically, all this has increased the general population's support for the Communists - or at least, made people choose one side over another. Chiang Kai-shek is gaining an unfortunate reputation as a Japanese puppet. Japanese war crimes, including the brutal bombing of Chinese cities by Japan's air force, are still fresh in people's minds. The efforts to demonise Communism have had little effect, and in some cases have backfired. And Chiang's recent moves to seize more power for himself and postpone democratic elections have only enflamed things further.
More 'Soviets' are rising up across China, leaving Nationalist territory flanked by pro-Communist areas, while Chiang can no longer count on solid support from within. And the USSR is exerting greater influence in the region as it captures more of Manchuria...
Rebellion in the USSR
Over the past few decades, Soviet citizens had put up with far greater hardships than most. Stalin was not exactly popular, put few were willing to see civil war return.
Even so, by late July, the growing anger over the extreme brutality of the state, combined with the extra hardships due to the war with Japan, had boiled over into several full-scale uprisings across the western Soviet Union - particularly the Ukraine, where it is rumoured that large quantities of supplies and arms were shipped in from Germany and/or Italy or Romania to supply the rebels.
The Red Army still had enough force in the west to crush the rebels, though it was not easy. Tanks, aircraft and artillery turned portions of Kiev, Odessa and Minsk into rubble. Order was restored by the start of October. The Purges have only intensified as a result - already, it is rumoured that a million civilians have died in recent reprisals by the Soviet regime. The only rebels still fighting are those in the troublesome regions of the South Caucasus.
(USSR: -$1/turn, -4 land)
Riots in Cyprus
Ethnic-turks have been rioting and protesting against British rule in Cyprus since late July. One incident on the 10th August saw three Turkish rioters shot dead by British troops. This grabbed the attention of the press, particularly in Turkey, where nationalist sentiments are on the rise.
Things show little sign of calming down, but the British navy and air bases on the island are not under any real threat at this point.
The British Empire is also facing more unrest in the middle east and along the northern regions of India. But British armoured vehicles, artillery and air power are allowing small garrison forces to keep things under control.
Riots in Norway
Anti-fascist riots took place in Oslo throughout the late summer. The public showed their anger at signs of increasing German and Fascist influence in the Norwegian parliament. The pressure was such that several new laws were passed to prevent abuses of power by politicians and ministers in the government.
However, Norway's diplomatic stance remains unchanged. Norway is maintaining its links with Germany, its part in European anti-Comintern pacts, and is still the most outspoken of all the Scandinavian countries.
The situation with Poland
Poland has joined the list of countries signing up to Germany's anti-Comintern pact. But Poland's position is unclear, and there are still tensions with Germany, especially over the Danzig corridor issue. Reports suggest that Poland has been strengthening its border defences in the west, as opposed to the east.
Spain and Portugal make alliances
The two countries have drawn even closer together. But Franco's suggestions of a unified Iberian state have no gone down well in Portugal. Though pro-fascist, the country is clearly unwilling to give up its sovereignty to Spain.
Germany in the Pacific
On the 3rd of July, 1938, Japan's brief but brutal occupation of Hainan ended with a handover to German control - ostensibly as part of a German 'humanitarian' mission in the far east. The ongoing violence in the region - especially the cruelty of the Chinese Nationalist forces in southern China - played right into this. Aid ships from the US and other countries were allowed to visit the island, which was soon inundated with refugees.
The German navy also established a presence in Hainan. And it has also been rumoured that Japan is granting the German navy access to several pacific islands (of course, many of these had been part of the German Empire before the onset of the First World War).
Foreign reaction has been predictably hostile. None of the established players in the Pacific wish to see a newcomer disturbing the balance. The UK, Australia and France have been particularly outspoken.
It seems Japan has been receiving large amounts of material aid from Germany in return for all this. Germany has also formally recognised Japan's puppet-state of Manchukuo - or what is left of it - after the League of Nations denounced it as an occupation, a move which has angered Chinese on both sides, but recieved little attention elsewhere.
Trade between Japan and Germany has increased sharply. Though Germany's position in the far east remains rather fragile, especially as the situation in europe deteriorates...
The Monaco Crisis
Throughout July, diplomats from France, UK, Spain, Italy, Germany, Poland and the USSR had been meeting in neutral principality of Monaco, to discuss the future of europe. Top of the agenda - and the only point on which any kind of agreement was reached - was the redrawing of German-Czechoslovakian borders. Various leaders and Head-of-States were due to arrive by July 20th, to pose for the cameras and make various public statements, as the conference drew to a close...
On the night of the 19th, however, France had other plans. Elite French soldiers and intelligence agents stormed the Chalets on the Monaco hillside belonging to the German and Italian delegations. The secret plan - devised by the French minister of security, Antoine Henri Queuille, with the backing of the President and other ministers - was to kidnap both Hitler and Mussolini, crippling the fascist leadership and preparing the way for a massive pre-emptive strike...
Things quickly degenerated into a chaos. Mussolini was captured, after a shoot-out killed two Italian guards, and was taken into custody in France. But Hitler was still in Germany, having suffered a blow to the head in an unspecified accident, and had sent von Ribbentrop in his place, who was captured instead.
During the previous days and weeks, French generals had made only half-hearted attempts to prepare for an attack across the border. Germany had been watching the French army manoeuvring behind the strengthened Maginot line. The top-brass on both sides of the border assumed this was just a show of force, to pile on pressure during the conference. French generals were horrified on the night of the 19th to receive the official order to start a world war. So horrified, in fact, that they refused to carry it out.
The chiefs of the army mutinied, as did large segments of government who were equally appalled by events, not to mention angered by the President's illegal actions. None wanted to see France's honour to be lost by such actions, and none wanted to be the aggressors in a world war. After all, Germany had not yet proven to be a threat to anyone, and diplomacy still seemed a promising route forwards.
As well-intentioned and far-sighted as the Minister of Intelligence's plan may have been, it left France in turmoil. Mussolini and Ribbentrop were soon released by a deeply apologetic French government, and were flown home at once - but not before Italian and French warships exchanged fire in the mediterranean. Italians were rioting in the streets on their cities, calling out for French blood to avenge the insult to their beloved Duce.
On the 21st, tanks and armoured cars rolled onto the streets of Paris, as a new provisional government took control of the country. Marshal Petain, the legendary hero of Verdun in the First World War, was later sworn in as the new President, and vowed to restore France's honour. Reparations were promised to Germany and Italy, and those involved in the plot were offered up to an international criminal trial.
(France: -$1/turn)
Constant negotiations took place throughout August and September, as France tried to repair some of the damage to its european relations. France avoided war for now - if only because Germany was already looking to the south - but France's diplomatic position was crippled. In the aftermath, the only strong voice left in opposition to the Fascist bloc was that of Britain, whose government was now taking a more hostile stance towards Germany.
Still, it seemed Germany almost had a free hand to act as it wished, with the support of Spain, Italy and Hungary, and nominal support from Norway and even Poland, all of whom had now signed up to the anti-Comintern pact.
The French people, meanwhile, were left bemused and frightened by these events. They, like most of their neighbours, are still hoping for peace above all else...
Germany and Hungary invade Czechoslovakia
Before the Monaco Conference ended in shambles, it seemed that a rough consensus had been reached regarding the issue of the Sudetenland. Most were in favour of its annexation into Germany. As the scandal of the 19th of July held the attention of the world, and with France consumed by internal trouble, Germany took advantage by piling the pressure on Czechoslovakia, sending a sudden torrent of threats and demands.
According to Czechoslovakian sources, what followed next was a deliberate act to provoke war. Apparently, German forces crossed the border before any official decision had been made by the Czechoslovakian government. As a result, their forces fought back along the heavily-fortified border. Germany claimed its forces had been attacked on German soil. In any case, Germany declared war on the 21st of July.
At first, nothing more than border skirmishes took place on the ground - and German troops suffered the most casualties. But the Luftwaffe was fighting for control of the skies overhead. German pilots, with their experience gained from the Spanish Civil War, made short work of their Czechoslovakian opponents, despite the descent quality of the Czechoslovakian fighter planes. Massed formations of BF-109 fighters, Stuka dive-bombers and JU-88 medium bombers were soon in control of the skies and were relentlessly bombarding Czechoslovakian troops and fortifications.
On the 24th of July, Hungary entered the war, and a large joint German-Hungarian invasion had soon overwhelmed Slovakian lands - not without some fierce battles, however. Czech-made tanks proved superior to many of the older Panzers in service, and Czechoslovakian army units proved more than a match for the still relatively-inexperienced Germans. Total casualties for the Germans and Hungarians were soon numbering in the tens of thousands.
But with Czech lands being attacked from the south east, completely bypassing the fortifications, and no foreign assistance in sight, the Czechoslovakian government decided the game was up. Surrender was signed on the 28th of July. The eastern territories were annexed into Hungary - which doubled in size as a result - with German approval, while Czech lands were reorganised as the 'Republic of Bohemia'.
(Germany: +$1/turn, -2 land, -1 air)
Hitler surprised the world by not annexing these lands into the Reich. Bohemia was unmistakably a puppet nation, but its pseudo-independence was enough to counteract some of the criticisms coming from Britain and elsewhere.
Things were surprisingly quiet for the next two months. It seemed that europe was in shock over recent events. But tensions had been raised to the point where war was not just a possibility, but was looking almost inevitable...
Miscellaneous:
July 14th, 1938 - Howard Hughes sets a new record by completing a 91 hour airplane flight around the world.
September 1st, 1938 - German physicists Otto Hahn and Fritz Strassmann publish their latest findings, proving what earlier experiments had suggested - the bursting of the uranium nucleus, IE nuclear fission.
*Nuclear research is now possible!* (it will of course take vast investments over many turns to get a nuclear bomb)
Notes:
This was a hard one to work out, I know some people aren't going to like the way I handled it. Please feel free to criticise/complain etc.
@ Daniel_Khan, ive sent a PM to you.
@Gelion, dldnjstjr has said he will give up the USSR, so it is open if you are willing to be responsive to diplo etc. Im not going to get to deep into the ideologies, you can change it to suit, so long as there are no major contradictions with stuff that's already happened. At the moment the historical purges have been going on, and actually worsened by war with Japan and etc.
@ Head Serf, i missed your orders (only got online a few minutes ago) but the NPCage was pretty much the same.
Map:
Normal update service will now be resumed, I dearly hope.1st July 1938 to 1st October 1938
The Situation in South America
With the US public unhappy over the mounting casualties, and undecided about whether to support the war with Argentina, US President Franklin D. Roosevelt was probably glad to see a swift end to this war. Peace coincided with an upswing in the economy to raise the President's approval rating.
The Argentine government agreed to recognise the country of Uruguay once again. Brazilian troops withdrew, while US marines stayed to help set up a democratic, pro-USA government. The Uruguayans are grateful to the US for their liberation, and large amounts of material aid have also helped relations...
Meanwhile, Argentina's government is weakened. It has lost respect among hard-line patriots, while moderates are still upset over the damage to the country's economy. However, the ruling generals still have a grip on the country, and it seems unlikely that they will be ousted from power anytime soon. The economy is already recovering as trade restrictions have been eased. The UK in particular seems eager to restore important trade links with Argentina.
(Argentina: +$1/turn)
The region is not at peace, however. Bolivian troops continue to fight an undeclared war against Paraguay. While still officially a 'border incident', things are more like full scale war, if the number of casualties are anything to go by.
Peru still remains on the sidelines, no doubt to Argentina's annoyance. The Peruvians probably fear the US pacific fleet appearing off their own shores.
Japan, USA and USSR: Conclusion of the Admiral Golovko Incident
Franklin D. Roosevelt officially granted asylum to the soviet sailors and troops who had fled to the Aleutian islands onboard the cruiser 'Admiral Golovko'.
This was potentially damaging for US-Soviet relations, such as they were, but it seems Stalin has chosen to completely ignore the issue. The US press has generally supported the President's decision. As for the ex-soviet sailors, they face an uncertain future in the US, knowing they can never return to their homes and families while Stalin is in power...
However, this was not the end of the story. Perhaps unwisely, the President ordered the ship itself to be towed back to Soviet territory. But Japanese vessels were shadowing the vessel...
Once the Admiral Golovko was taken beyond US territorial waters, at midnight local time on July 12th, the Japanese opened fire. The ship was struck by several torpedoes and quickly sank, causing the death of 2 US navy personnel who were onboard at the time and were unable to escape.
Now it is US-Japanese relations which are under threat. Japan has taken a slightly apologetic stance. But the US public are outraged, and scathing anti-Japanese articles have been running almost continuously in US newspapers.
The Soviet-Japanese War
Things continued to grind on in the same fashion. The Soviets conscripted countless thousands more troops, and launched another major offensive in the summer. Again, more ground was gained, with human waves of Soviet conscripts surrounding and overwhelming enemy strongpoints. And again, the conscripts suffered badly, with casualties from the last three months alone estimated at somewhere near the five-hundred-thousand mark...
Soviet superiority in vehicles and artillery was still not having as great an impact as hoped. The tactics on both sides were not very refined, either. Though it was much easier for the Japanese to dig-in and defend, than it was for the Soviets to organise an offensive across vast stretches of wild and road-less terrain. As the dreaded Purges continued, the Red Army's leadership was further damaged by the arrest and execution of any officer involved in any defeat or failure - of which there were many. On top of which, many successful officers were executed for no other reason than being 'political opponents' of the regime.
Japan had the edge in aircraft quality, particularly with the new generation of fast and manoeuvrable fighters that were being rushed into service. The Soviets could counter with sheer numbers for a while - especially as Japan's air force was widely spread out - though this advantage was steadily worn away.
Despite his recent naval disasters, Stalin ordered the last of his navy into harassing attacks against the Japanese. Courageous submarine crews did some damage to Japanese shipping before being wiped out. At which point, the Soviet navy basically ceased to exist.
Japan continued to have superior infantry weapons (including the excellent Type-90 infantry machine gun, and Type-5 semi-auto rifle) and had concentrated its most experienced soldiers into elite units, which were used to plug holes in the lines. But Despite the best Japanese efforts, the front line moved steadily south-eastwards towards Korea. The Soviet base at Vladivostok held out under constant sea and air bombardment, and the Japanese toe-hold in Kamchatka had to be abandoned.
(USSR: -19 land, -5 air, -1 navy. Japan: -$1/turn, -9 land, -3 air)
As winter sets in, the Soviets have overrun most of 'Manchukuo' but are bogged down in the mountainous borders of Korea. The toll on human life has been appalling, yet the world hardly seems interested anymore. The remoteness of the region and the repressive nature of the regimes on both sides has not allowed much in the way of journalism. The onset of interesting events in europe has dominated headlines in the west.
China
Even while some Japanese troops remained within Chinese territory, Chiang Kai-shek ordered his Nationlist forces to renew hostilities with the Communists. Efforts were made to mobilise the population in a 'great struggle for freedom'. Theoretically, one in every ten men would report for training with the army, though the Nationalists hardly had the arms to equip such numbers. Instead they focused on improving their air force, which relentlessly bombed the communist strong holds in the north.
The Communists resisted. They were well entrenched in some areas, and newly equipped with some Soviet arms and advisors. The Nationalist ground offensive had stalled long before the onset of winter. Territory was taken in the north-east, but the Communist core areas held out defiantly.
(Nationalist China: -5 land, -1 air)
Nationalist forces also renewed their attack on the southern warlords, with undoubted success, but allegedly with great brutality also. It is claimed that whole villages were torched and their inhabitants massacred, as there was a brutal crackdown against communist sympathisers in the region.
(Nationalist China: +$1/turn, -1 land)
Ironically, all this has increased the general population's support for the Communists - or at least, made people choose one side over another. Chiang Kai-shek is gaining an unfortunate reputation as a Japanese puppet. Japanese war crimes, including the brutal bombing of Chinese cities by Japan's air force, are still fresh in people's minds. The efforts to demonise Communism have had little effect, and in some cases have backfired. And Chiang's recent moves to seize more power for himself and postpone democratic elections have only enflamed things further.
More 'Soviets' are rising up across China, leaving Nationalist territory flanked by pro-Communist areas, while Chiang can no longer count on solid support from within. And the USSR is exerting greater influence in the region as it captures more of Manchuria...
Rebellion in the USSR
Over the past few decades, Soviet citizens had put up with far greater hardships than most. Stalin was not exactly popular, put few were willing to see civil war return.
Even so, by late July, the growing anger over the extreme brutality of the state, combined with the extra hardships due to the war with Japan, had boiled over into several full-scale uprisings across the western Soviet Union - particularly the Ukraine, where it is rumoured that large quantities of supplies and arms were shipped in from Germany and/or Italy or Romania to supply the rebels.
The Red Army still had enough force in the west to crush the rebels, though it was not easy. Tanks, aircraft and artillery turned portions of Kiev, Odessa and Minsk into rubble. Order was restored by the start of October. The Purges have only intensified as a result - already, it is rumoured that a million civilians have died in recent reprisals by the Soviet regime. The only rebels still fighting are those in the troublesome regions of the South Caucasus.
(USSR: -$1/turn, -4 land)
Riots in Cyprus
Ethnic-turks have been rioting and protesting against British rule in Cyprus since late July. One incident on the 10th August saw three Turkish rioters shot dead by British troops. This grabbed the attention of the press, particularly in Turkey, where nationalist sentiments are on the rise.
Things show little sign of calming down, but the British navy and air bases on the island are not under any real threat at this point.
The British Empire is also facing more unrest in the middle east and along the northern regions of India. But British armoured vehicles, artillery and air power are allowing small garrison forces to keep things under control.
Riots in Norway
Anti-fascist riots took place in Oslo throughout the late summer. The public showed their anger at signs of increasing German and Fascist influence in the Norwegian parliament. The pressure was such that several new laws were passed to prevent abuses of power by politicians and ministers in the government.
However, Norway's diplomatic stance remains unchanged. Norway is maintaining its links with Germany, its part in European anti-Comintern pacts, and is still the most outspoken of all the Scandinavian countries.
The situation with Poland
Poland has joined the list of countries signing up to Germany's anti-Comintern pact. But Poland's position is unclear, and there are still tensions with Germany, especially over the Danzig corridor issue. Reports suggest that Poland has been strengthening its border defences in the west, as opposed to the east.
Spain and Portugal make alliances
The two countries have drawn even closer together. But Franco's suggestions of a unified Iberian state have no gone down well in Portugal. Though pro-fascist, the country is clearly unwilling to give up its sovereignty to Spain.
Germany in the Pacific
On the 3rd of July, 1938, Japan's brief but brutal occupation of Hainan ended with a handover to German control - ostensibly as part of a German 'humanitarian' mission in the far east. The ongoing violence in the region - especially the cruelty of the Chinese Nationalist forces in southern China - played right into this. Aid ships from the US and other countries were allowed to visit the island, which was soon inundated with refugees.
The German navy also established a presence in Hainan. And it has also been rumoured that Japan is granting the German navy access to several pacific islands (of course, many of these had been part of the German Empire before the onset of the First World War).
Foreign reaction has been predictably hostile. None of the established players in the Pacific wish to see a newcomer disturbing the balance. The UK, Australia and France have been particularly outspoken.
It seems Japan has been receiving large amounts of material aid from Germany in return for all this. Germany has also formally recognised Japan's puppet-state of Manchukuo - or what is left of it - after the League of Nations denounced it as an occupation, a move which has angered Chinese on both sides, but recieved little attention elsewhere.
Trade between Japan and Germany has increased sharply. Though Germany's position in the far east remains rather fragile, especially as the situation in europe deteriorates...
The Monaco Crisis
Throughout July, diplomats from France, UK, Spain, Italy, Germany, Poland and the USSR had been meeting in neutral principality of Monaco, to discuss the future of europe. Top of the agenda - and the only point on which any kind of agreement was reached - was the redrawing of German-Czechoslovakian borders. Various leaders and Head-of-States were due to arrive by July 20th, to pose for the cameras and make various public statements, as the conference drew to a close...
On the night of the 19th, however, France had other plans. Elite French soldiers and intelligence agents stormed the Chalets on the Monaco hillside belonging to the German and Italian delegations. The secret plan - devised by the French minister of security, Antoine Henri Queuille, with the backing of the President and other ministers - was to kidnap both Hitler and Mussolini, crippling the fascist leadership and preparing the way for a massive pre-emptive strike...
Things quickly degenerated into a chaos. Mussolini was captured, after a shoot-out killed two Italian guards, and was taken into custody in France. But Hitler was still in Germany, having suffered a blow to the head in an unspecified accident, and had sent von Ribbentrop in his place, who was captured instead.
During the previous days and weeks, French generals had made only half-hearted attempts to prepare for an attack across the border. Germany had been watching the French army manoeuvring behind the strengthened Maginot line. The top-brass on both sides of the border assumed this was just a show of force, to pile on pressure during the conference. French generals were horrified on the night of the 19th to receive the official order to start a world war. So horrified, in fact, that they refused to carry it out.
The chiefs of the army mutinied, as did large segments of government who were equally appalled by events, not to mention angered by the President's illegal actions. None wanted to see France's honour to be lost by such actions, and none wanted to be the aggressors in a world war. After all, Germany had not yet proven to be a threat to anyone, and diplomacy still seemed a promising route forwards.
As well-intentioned and far-sighted as the Minister of Intelligence's plan may have been, it left France in turmoil. Mussolini and Ribbentrop were soon released by a deeply apologetic French government, and were flown home at once - but not before Italian and French warships exchanged fire in the mediterranean. Italians were rioting in the streets on their cities, calling out for French blood to avenge the insult to their beloved Duce.
On the 21st, tanks and armoured cars rolled onto the streets of Paris, as a new provisional government took control of the country. Marshal Petain, the legendary hero of Verdun in the First World War, was later sworn in as the new President, and vowed to restore France's honour. Reparations were promised to Germany and Italy, and those involved in the plot were offered up to an international criminal trial.
(France: -$1/turn)
Constant negotiations took place throughout August and September, as France tried to repair some of the damage to its european relations. France avoided war for now - if only because Germany was already looking to the south - but France's diplomatic position was crippled. In the aftermath, the only strong voice left in opposition to the Fascist bloc was that of Britain, whose government was now taking a more hostile stance towards Germany.
Still, it seemed Germany almost had a free hand to act as it wished, with the support of Spain, Italy and Hungary, and nominal support from Norway and even Poland, all of whom had now signed up to the anti-Comintern pact.
The French people, meanwhile, were left bemused and frightened by these events. They, like most of their neighbours, are still hoping for peace above all else...
Germany and Hungary invade Czechoslovakia
Before the Monaco Conference ended in shambles, it seemed that a rough consensus had been reached regarding the issue of the Sudetenland. Most were in favour of its annexation into Germany. As the scandal of the 19th of July held the attention of the world, and with France consumed by internal trouble, Germany took advantage by piling the pressure on Czechoslovakia, sending a sudden torrent of threats and demands.
According to Czechoslovakian sources, what followed next was a deliberate act to provoke war. Apparently, German forces crossed the border before any official decision had been made by the Czechoslovakian government. As a result, their forces fought back along the heavily-fortified border. Germany claimed its forces had been attacked on German soil. In any case, Germany declared war on the 21st of July.
At first, nothing more than border skirmishes took place on the ground - and German troops suffered the most casualties. But the Luftwaffe was fighting for control of the skies overhead. German pilots, with their experience gained from the Spanish Civil War, made short work of their Czechoslovakian opponents, despite the descent quality of the Czechoslovakian fighter planes. Massed formations of BF-109 fighters, Stuka dive-bombers and JU-88 medium bombers were soon in control of the skies and were relentlessly bombarding Czechoslovakian troops and fortifications.
On the 24th of July, Hungary entered the war, and a large joint German-Hungarian invasion had soon overwhelmed Slovakian lands - not without some fierce battles, however. Czech-made tanks proved superior to many of the older Panzers in service, and Czechoslovakian army units proved more than a match for the still relatively-inexperienced Germans. Total casualties for the Germans and Hungarians were soon numbering in the tens of thousands.
But with Czech lands being attacked from the south east, completely bypassing the fortifications, and no foreign assistance in sight, the Czechoslovakian government decided the game was up. Surrender was signed on the 28th of July. The eastern territories were annexed into Hungary - which doubled in size as a result - with German approval, while Czech lands were reorganised as the 'Republic of Bohemia'.
(Germany: +$1/turn, -2 land, -1 air)
Hitler surprised the world by not annexing these lands into the Reich. Bohemia was unmistakably a puppet nation, but its pseudo-independence was enough to counteract some of the criticisms coming from Britain and elsewhere.
Things were surprisingly quiet for the next two months. It seemed that europe was in shock over recent events. But tensions had been raised to the point where war was not just a possibility, but was looking almost inevitable...
Miscellaneous:
July 14th, 1938 - Howard Hughes sets a new record by completing a 91 hour airplane flight around the world.
September 1st, 1938 - German physicists Otto Hahn and Fritz Strassmann publish their latest findings, proving what earlier experiments had suggested - the bursting of the uranium nucleus, IE nuclear fission.
*Nuclear research is now possible!* (it will of course take vast investments over many turns to get a nuclear bomb)
Notes:
This was a hard one to work out, I know some people aren't going to like the way I handled it. Please feel free to criticise/complain etc.
@ Daniel_Khan, ive sent a PM to you.
@Gelion, dldnjstjr has said he will give up the USSR, so it is open if you are willing to be responsive to diplo etc. Im not going to get to deep into the ideologies, you can change it to suit, so long as there are no major contradictions with stuff that's already happened. At the moment the historical purges have been going on, and actually worsened by war with Japan and etc.
@ Head Serf, i missed your orders (only got online a few minutes ago) but the NPCage was pretty much the same.
Map:
NEVERMIND 
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