@oberstbrooksy: Im pretty sure it was to the PSA since they didn't send volunteers until the PSA joined the war.
@Asalto: Not yet at least. Right now they are under canadian control but they are not full parts of Canada...yet. Of course I want to keep them, but that depends on what happens with the ACW. If MacArthur wins he may very well let Canada keep both Alaska and New England. If MacArthur loses and the USA dies, then Canada won't have any qualms about joining the war to make sure neither the CSA or AUS win, as well as to take off some more strips of land from the dead United States.
As for Japan, it would be nice if Canada could revive the old Anglo-Japanese treaties of friendship or something, but we shall have to see how things go from here.
@SovietAmerika: They do have more industries, I think an event post independence gives them an industrial boost, which is further increased by industries taken from US territory. IIRC at the point I am ingame they sit at something like 50 base IC.
@Nikolai: Its not so much the resources I want, its the manpower...
@everyone: thanks for the comments!
By late December, 1936, MacArthur's regime is hard pressed from all sides in the 2nd American Civil War. PSA troops are marching eastwards sweeping aside all resistance in their path. In the south, Huey Long's army has overrun nearly all of Texas and Missouri, and has surrounded pockets of US federal resistance along the Mississippi River and in Tennessee. To the North, CSA militias and syndicalist International Brigades units have taken over Indiana and more importantly, have marched victoriously into Washington DC, hoisting the CSA flag high over the White House. MacArthur meanwhile has fled by airplane to the far away city of Denver, all the way in Colorado, vowing never to give up the fight.
Events in America have forced Canada to greatly re-evaluate its overall foreign policy goals. In the past British royalists have argued strongly for all of Canada's energies to be devoted to destroying the Union of Britain, but now, Canada needs also to make sure it does not ignore the home front or events in the America's. Canada will not abandon its objective of liberating the British Isles, but it is now less of a priority.
Next, Canada establishes an initiative to pool the scientific resources of its allies under the Imperial Scientific And Academic Council program, to result in better research efficiency for many of Canada's allies.
On to international news, the governments of Egypt and Hashemite Arabia form a military alliance with the goal of stripping territory from the Ottoman Empire and changing the balance of power in the Middle East.
In Europe, the Austro-Hungarian empire goes through its 1937 Ausgleich negotiations on the status of the various states that make up their empire. After some discussions, all of the members of the group decide to form a somewhat tighter federal union, short of all out absorption into Austria. (so now all of those countries are puppet states of Austria ingame.)
Back to the Middle East, Persia joins the Cairo-Riyadh Axis greatly strengthening their alliance against the Ottomans. Meanwhile, the Germans announce that they do not consider the Middle East to be of strategic importance, declaring that they will not get bogged down in the region if the Middle Eastern Axis attacks the Ottoman Empire. The Ottoman regime is therefore alone should the Arabs and Persians attack.
In America, things for MacArthur start to get desperate. PSA troops take control of Denver, forcing MacArthur's regime to flee the city. In response, the US government comes forward to the PSA asking for peace talks. A delegation of American representatives travels to Sacramento, where they are given the PSA's demands: territorial gains encompasing the entire Rocky Mountains, as well as a US recognition of PSA independence and a treaty of non-aggression. Desperate for peace with the PSA, MacArthur accepts the terms, ending the war in the Western United States. Citizens all over the PSA celebrate their impressive victory and newly won independence.
Meanwhile, in Germany, German elections for the Reichstag result in the leftist Social Democratic Party winning the majority of seats, resulting in the leader of the SPD, Otto Wells, becoming the new Chancellor of the German Empire. It appears that Germany is becoming a more open and democratic society over time, even though the staunchly conservative German Kaiser is still effectively in total control of the country.
Finally, the status of the American Civil War by March 1937, where things seem to have reached a turning point for the US government. Peace with the PSA has allowed MacArthur to secure his western flank, resulting in thousands of soldiers being shipped back east to battle the CSA and AUS forces for the rest of the country. This move appears to have changed the momentum of the entire war, especially in the northeast where the CSA seems to be buckling. Although CSA militias and international brigades control the important cities of Chicago, Detroit, Pittsburgh, New York, and Washington DC, their forces are being cut off and encircled by MacArthur's strengthened federal army, which is surrounding CSA strongholds from the countryside. To the south, Long appears to have experienced some setbacks, losing Arkansas to CSA forces and being stalled in Texas by US forces. Meanwhile, anarchist, ultra nationalist, and various other independent rebel militias have taken control of other parts of American territory, such as parts of Texas, Oklahoma, New Mexico, and most of the state of Wisconsin. The war is far from over, but it appears that MacArthur's troops may have finally turned the tide.