Chapter Two, Part Two: Gearing Up!
Jul 1937 - May 1938
As expected, in the latter half of 1937 Japan announced that it no longer wanted to be crippled by the Treaty's restrictions. This move, while diplomatically unpopular, should greatly aid Japan's technological developments. Imperial diplomats made sure that our trade agreements with the USA and the UK were safe and as a result, the negative impact was not as big as it could be.
The German Reich annexed Austria in January 1938. Again, this bold move was met with little resistance from the western powers. Stalin, on the other hand, continues his maniacal purges of the Soviet officer corps. These facts finally convinced the Emperor that Germany will be the biggest player in Europe in the following years and that it should grow powerful enough to counter the rising threat of the Soviet Union. As a result,
the Empire of Japan signed the Anti-Comintern Pact.
The Imperial engineers were very pleased that they no longer had to concern themselves with the "stupid piece of paper". Technological development in the naval department should be quicker now.
Additionally, many new industrial techniques were researched and the Japanese supply network is currently being reorganised.
*Technical note
Many naval techs/doctrines take longer to research than the army ones, hence the disparity between the number of naval and army technologies that are currently being researched. However, you can rest assured that I kept the correct ratio (50:50) throughout the session.
*
During the last two years, the Imperial Army underwent massive expansion and intensive modernisation. The sheer number of infantry divisions is now 77, not including cavalry formations and garrison troops. However, military experts say that many Japanese divisions still lack artillery and that the Army's success may be heavily dependant on maintaining air superiority. This would be especially important in the event of war with the Soviet Union, the Commonwealth or the USA.
It should also be noted that this rapid expansion has taken its toll on the Japanese industry. Considerable amounts of equipment and supplies have to be produced every day just to maintain the troops in the state of partial readiness. It is expected that the situation will only become more difficult in the future. Also, since the bulk of the Army is stationed overseas, most of the goods have to be transported by sea, which means that the Japanese merchant marine will need to be expanded greatly.
In regard to the Empire's economic situation, it should also be stressed that half of our imports of rare materials are being supplied by the United Kingdom. Since the Japanese businessmen have recently secured several trade agreements with the Dutch authorities in the Dutch East Indies, the diversification is greater than it was a year ago. Even though the Imperial logisticians have managed to maintain a steady stockpile so far, it is still quite unsettling.
All non-essential trade agreements with various Asian countries have been cancelled. In the light of Japan's dire fiscal condition, this was a necessary move.
On the bright side, strategic crude oil and fuel stockpiles are already considerable and are growing every day. The main goal is to make the most of the current neutral relations with the United States, since it is unknown how they will respond to our future moves.
The construction of two impressive warships - a battlecruiser and a carrier - was finally completed in the early 1938. The Emperor wants to know which task forces these ships will reinforce, as He intends to inspect the newest additions to the Imperial Navy personally.
Japanese shipyards immediately got new orders for a new battleship (IJN Yamato), which should be constructed by April 1940. Additionally, the production rate of the new transport ships for the merchant marine was increased by 100%.
The Japanese industry continues to expand. It is expected that new factory complexes should be established in December 1938 and should be able to start production from late January 1939, after the testing and maintenance phases are taken into account.
Artillery production is becoming more and more important. The Army will need more heavy equipment and additional firepower for its infantry divisions in order to increase their fighting capabilities.
The Emperor is pleased to see that the Japanese airforce is no longer so neglected in the production plans. It is rumoured that the news was so pleasant for Him that it calmed His anger after one of the most important generals did not appear at the latest staff meeting and after He saw that the "plans" brought before Him by the representatives of the Navy and the Army were terribly unprofessional, unclear and inconsistent.
Despite lower budget, the Japanese intelligence network is still expanding. The Emperor gave the authorisation for the establishment of new nodes in the United Kingdom, although at the lowest priority.
The Cliques are gradually becoming more sympathetic to our cause. The Emperor accepted the fact that all foreign actions in China are a long-termed process, but he warned the generals that if their plan do not work, they will be discredited in His eyes and the Navy will gain more authority in the foreign matters.
The Japanese troops were organised in four Army Groups in Manchuria - one responsible for securing Mongolia, one tasked with the protection of northern Manchuria, one responsible for security in the Vladivostok Area and the largest one stationed on the Japanese-Chinese border. There are plans to split the Kita-Shina Ichigun in two in order to ensure greater flexibility. It is believed that the army group stationed in northern Manchuria will need to be reinforced in order to perform its duties proficiently. The Emperor is eager to hear what the Army generals have to say in these matters.
The stability in Manchuria is crucial especially when the latest events are taken into account. The Japanese government received reports of hostile actions against Japanese minority in the Soviet-controlled part of Sakhalin. The Japanese Prime Minister publicly expressed his outrage about this "incident" and he had full support of the Emperor in the matter. Shortly thereafter, a retired general was found dead in his house and the police was unable to find the murderer.
The Emperor is greatly concerned about security of the region. He has recently requested the opinion of the Army generals on the possible course of events in case of conflict with the Soviet Union. He especially wants to know whether the Army is ready to engage in a prolonged conflict with the communists and how costly could it potentially be.