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Chaim Kaufmann

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#s 1-4 used Armageddon. Called skimpy because few pictures, no dialogue, and some attention to gameplay lessons.

AoD 1.08, hard/aggressive. The obvious question for this one is: can you get a serious enough (or odd enough) challenge to make the U.S. interesting?

History takes strange turns: the central problem of modern society was best explained by a woman; who grew up under Communism; whose real name is Rosenbaum; and was not a U.S. citizen before four years ago.

As for the recent crisis, Andrew Mellon had it right: “Liquidate labor, liquidate stocks, liquidate farmers, liquidate real estate. .… People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people." All the country really needed was the nerve to stick to fiscal rectitude. True heartlessness would have been to give in to the demands for relief, condemning the country to valueless currency and destroying incentives for industrious and lazy alike. Any economy functions best when the most capable of directing industry are allowed to do so. Government need not, must not, do more than maintain freedom of contract against those who agitate the rabble to “redistribute” the means of producing wealth.

Fortunately one party is led by men most of whom do understand the needs of business; unfortunately the public is easily confused by those who oppose a free economy, so recent electoral results have not been good. Although Herbert Hoover’s fascination with ‘relief’ handouts in Europe after the war led some to doubt his instincts, when it mattered he did the right thing and stuck to it. Hoover is already being recognized as one of our truly great Presidents, perhaps the greatest since McKinley or even Hayes.

By contrast the current occupant of the office was obviously unfit from the start, and was further weakened even before inauguration by Guiseppe Zangara’s bullet meant for Anton Cermak. Although some initially wanted to force the issue, those seriously frightened of the ‘traitor to his class’ proved overwrought. Between the lack of ideas of his own and his physical and political weakness, we have not found it difficult to provide responsible men to provide guidance, preventing his more radical supporters such as Hugo Black from implementing any part of their proposed revolution. Three years later it seems unbelievable that Cordell Hull, whom he wanted for State, proposed normalizing relations with the Bolsheviks! It helped that all that was needed of him was nothing rather than something; indeed, we can see now that elevating Garner would have gained little. We have also been fortunate to lose no one from the Court; several are aging and the ’32 and ’34 Senate classes include many unreliable men. Still, the contrast between the country’s health and his illness, together with well-laid work with good men in the other party, allows us to be as confident this year as in 1920 after Wilson’s incompetence and two years of outright incapacity. Soon ‘that man’ will concern us no more.

Indeed this administration provides a good model for governance going forward. Presidents should be figureheads steered by men who have the talent and vision necessary to design the country’s future. Such men cannot be expected to neglect our private affairs merely because policy also depends on us.

The U.S. has now gone from Gilded Age to Roaring Twenties to a New Gilded Age with only a slight overfed belch. The question is: from where is new profit growth now to come? Wild-eyed men talk of a far-off day when ever more ingeniously leveraged securities, arcane mathematics, and markets across the globe linked by wireless will allow fortunes to made from financial trading alone, regardless of the state of industry. Any sound man can see that that way lies disaster—another, larger Crash, perhaps even one that could produce the revolution that we have just averted. The latest cheap thrill for women is ‘futurist’ horror tales, for instance one about an election in 2008.

Profit means—must mean—what it has always meant: the difference between costs and sales. It goes without saying that we must maintain sound money and stable prices, and with the healthy reserve pool of labor that the country now enjoys we cannot hope for much further reduction in wages. New gains must therefore come from reduction in costs of materials, based on overseas investment protected by national strength as other imperial powers do. The most important theater of opportunity is the Americas; instability in Europe ensures that no major power will interfere as we establish ownership of the important resources. There are prospects in Asia as well. Japanese plundering, being both undeserved and inefficient in its methods, cannot go on indefinitely, although that matter is not urgent.

Policy:

The U.S. will prioritize formal and informal empire throughout the Americas until every place from which profit in the form of IC or resources can be had is an ally or puppet, or—in the Caribbean and perhaps parts of Central America—benefiting from long-term U.S. stewardship (i.e., annexed). This will require frequent use of the military; even some ‘allied’ countries may not prove sufficiently tractable without closer guidance. Non-aggression pacts with irresponsible regimes are of course meaningless. Even if forced into war with a major power effort on these imperial projects will not be reduced. If this provides opportunity for an overseas enemy to take advantage of a Latin American regime that needs replacing anyway, that will just improve our justification.

Profitable spots elsewhere, as long as not actually on the continents of Eurasia or Africa, will also be annexed/occupied long term, e.g. Japan, Taiwan, or anything lost by a European power (e.g. Hong Kong, Singapore, perhaps Curacao). Locations of strategic but not economic value (e.g., Iceland, Azores) will not be objectives in peacetime nor retained when not in use in an ongoing major war.

No IC or infrastructure will be built as war preparation and not much as reinvested profits. There will be plenty at home and—especially—in territories gained overseas as ‘encouragement’ to ‘deserving’ enterprises, and sometimes as part of domestic political maneuvers. These will not stop no matter what else is going on.

We will sell anything to anyone. The United States has never been a raw materials importer and will not become one, except from U.S. owned firms in the Americas.

The U.S. must ultimately defeat Japan, Russia, and Germany (preferably in that order), but will not fight any of them until forced to by one of them. Will not make serious preparations for major war—except large warships for national prestige and corporate welfare—until the Indochina/Embargo events or something at least equally serious (Japan attacking Russia or Germany seizing British isles would not qualify; German presence in the Americas would).

We will not confront the Allies, nor join or help them. If they can't defend themselves or their colonies that's their problem.

We don’t want a mass army, which would draw down the labor pool and complicate holding the line on wages, nor will casualties be affordable politically given limited public understanding of the economics of foreign policy. Therefore ground operations will rely as heavily as possible on naval and artillery bombardment and air power. The low professional quality of our military, though, will take a long time to change.

Idea changes:
-Imperialist World View (+10% colonial IC, release puppet -150, etc.).
-Libertarian Individualism (+10% colonial IC, dissent growth +20, etc.).
['Colonial’ IC use doesn't seem to apply to anything, so I edited these to +10% foreign IC use. This will also benefit UK, and could imaginably help a few minors such as Sweden who have IWV although not LI.]

Slider changes:
-Interventionism: locked at 10 (vs. 1), but see restrictions below.
-DoWs vs. Central/South American countries >1 province cost 5% if SD/SL, 3% if ML, 1% otherwise. Single province mainland (and all Caribbean islands) cost 1%. No DoW belligerence for countries we have assisted previously--Cuba 1898-1922, Nicaragua 1912-33, Haiti 1915-34, Dominican Republic 1916-24.

Minister changes:
-Foreign: Arthur Vandenberg (Iron-fisted Brute, influence -100, annex 0).
-Armaments: Charles F. Wagner (Laissez-faire Capitalist, consumer goods -20%). Morgenthau’s short term fix of “expanding the pie for all” would be worth 14 effective IC, but nearly half the gain would go to higher wages, undermining discipline and work ethic for the future.
-Navy: Claude A. Swanson (Decisive Battle, CV/CVL/BB/CA/CL combat).

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Future:
We will win all the elections, but Landon and Willkie will not do—too independent (and too powerful in Willkie’s case) and, in different ways, wrong-headed. We’ll see about Dewey. Each victory after the first will move the democratic slider one to the right. If at war with Russia or Germany for two successive elections, democratic will move an additional one to the right and political_left will move one, direction depending on the enemy. We should gradually progress to Market Liberal, then Social Conservative, and eventually Paternal Autocrat.

Ministerial appointments will favor +foreign IC, influence/ally/coup/annex, -consumer goods, +IC, and +industrial research in that order.

Behavioral rules:
-During major war, any LA country with which we are at war or which leaves an alliance with us will ally with our enemy.
-We must guarantee every country in LA and ally with, coup, puppet, or annex all of them.
-Outside LA, we may not guarantee, influence, coup, ally with, assist (in ANY way beyond ordinary operational coordination if/when fighting the same opponent), or DoW anyone except:
--Must promptly DoW Japan once done in LA or when Japan attacks anyone besides China or Russia.
--After Japan is defeated, must promptly DoW Russia (if standing and not as far right as us) and then Germany (if this brings war with Italy, accept white peace or better).
-May not use allied/puppet forces for anything but their own internal security.
-May not build (or research, unless nothing else to do) anything (except a battle fleet) more useful for major war than for imperial projects, e.g., rockets, mech, mars, paras, mils, logistics, heavy tanks, AA, AT, TD, rocket art, ftrs, ftr escorts, navs, strs, subs, CVLs, convoy escorts, certain naval and air doctrines, defensive installations, or any installations in the Pacific. Agriculture is iffy; we don't need or much want the manpower, but it comes with $. So are DDs; the battle fleet will need a minimum, but we will not be providing for ASW patrols or escort conversions.
The 1940 events lift restrictions relevant to war with Japan, and actual war the others.
-Each 300 battle deaths in LA costs 1% dissent. Counting 1/3 of permanent losses as dead, with one hospital tech at start this means 1,800 reported casualties.

Initial actions:
- +1 professional_army.
-Discard all the subs (we’re not in that business); complete the new SS-3 (a contract is a contract), then discard; the DD-1s (range too short to reach Brazil and we have enough other CLs/DDs), and nine TPs (leaving 15, more than enough for our needs).
-Concentrate adequate bombardment and transport fleets at Miami, move the Army and Air Force there, and upgrade the cav division.
-Guarantee everyone and start influencing most. Although action will have to wait for the next administration, initial deployments will restore order in the four countries that we should not have left. The Brazilian regime, which is practically Communist, also must go. In Chile, Colombia, Ecuador, and Mexico we will aim at alliance (via coup if necessary); as SDs or SLs these would be the least popular to deal with militarily. All others as convenient.

[In two ways AoD is not set up for this scenario:
-Democracies can't DoW anyone with <1 Belligerence, so we will have to attribute that. After all, for inferior political systems to resist leadership of the hemisphere by a superior one is belligerent.
-Since even minor wars lift peacetime IC penalties but this should not count for our adventures in LA, any extra beyond peacetime effective IC can be used only for:
--offensive supply;
--repair to facilitate movement and org. regain;
--cash for spies for LA coups;
--largely wasted, e.g. on influencing LA countries we're going to take over anyway
--or just discarded.]
 

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Oh, What a Relief It Is

Nov. 3, 1936.

The campaign was not as smooth as some expected; some misguided people persist in crediting the former executive with reducing public concern in early 1933. Some of the credit goes to Charles Schwab for holding the line at Bethlehem Steel—the State Police’s mounted charge down 3rd Street was an inspiring sight! Firing all 18,000 of the trouble makers explained to workers across the industrial belt where their job security lay.

Even so it was a near thing; had not left-wing disappointment with their do-nothing champion split the anti-capitalist vote we could have lost much of the upper Plains and Mountain states—-and absent some wise choices by election officials in California—-re-election might not have been out of the question even despite inability to walk or even sit long enough to conduct serious business. In the end our ticket-—Senator Charles McNary of Oregon and Attorney General John Bricker of Ohio--won all the same states as Coolidge (less Minnesota, New York, Massachusetts, and Rhode Island, plus Virginia) for 316 electoral votes vs. 215 for the other side. Individual ballots were recorded as 50% for McNary, 42% for the opposition, and 8% for William F. Lemke.

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(RL: McNary was Senator 1917-44 (minority leader from 1935) and Republican VP candidate in 1940; briefly supported some elements of the New Deal but in our world did not get a chance to make that lapse. Bricker was Ohio AG 1933-37, Governor 1939-45, Senator 1947-59, and VP candidate in 1944; he was known as a small government libertarian. Lemke, a Republican(!) Congressman from North Dakota 1932-40 and 1942-50, got 2%.)

In the House we regained 66 of the seats lost in the previous three rounds, though with 169 to 266 for the Democrats and far Left parties we will have to accommodate Southerners whose concept of states’ rights is unworthy of G.O.P. traditions. But economics must come first.

In the Senate we gained just one to 23 against 73. We're limited until the ’32 class comes up, although three or four extreme radicals can perhaps be forced out sooner. Still, though far short of a majority, with several available friends across the aisle we’ll be all right, especially since protection of U.S. interests in our own backyard does not require formal Declaration of War.
(RL 1938 result. Republicans lost ground four times running in 1930-36, down to just 88 in the House and 16 in the Senate, the smallest minorities ever except the Democrats after 1866.)

There are pockets of resistance to the outcome, but business confidence has improved. [AoD: 2% dissent, +10 IC. Editing in a minister requires changing availability date; else you get the first in the savefile who fits.]

Sliders: 10/2 (Market Liberal). Contra Landon, interventionism remains locked.

New ministers:
-Head of State: Charles McNary (Insignificant Layman, money +5%, dissent growth +5%).
-Head of Government: John Bricker (Corporate Suit, +10% money, dissent growth +10%, +10% retooling and unit costs).
-Security: Charles E. Hughes (Efficient Sociopath, foreign IC +10%, manpower -10%). Murphy would be better at keeping things quiet, but investment requires risk.
-Intelligence: Frank B. Rowlett (Naval Intelligence Specialist, naval intel +20%). Friedman had the wrong affiliations. (So does Wagner, but his policies are right.)

Policy progress has been slow, given the huge shipyard backlog and just 64/285 IC available. [On Normal U.S. would have 123 even without Morgenthau, but what fun would that be?] Even with only 5-6 tech teams working, we have had to trade all available resources for $ and the $ for supplies, so diplomatic efforts have not even begun. It was August before we had any free IC, which went on a line of BB-4s; in October we started to upgrade inf. By April will we have another 12.5 IC, which will allow recovering money growth for diplomatic efforts (fortunately a number of LA countries have been helping). Other priorities include art brigades, gars, and a handful of IC, but it is unclear when these can be funded.
 

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Slow and Steady

January 1, 1938.

The Twentieth Amendment turned out useful after all. Our country’s earliest-ever inauguration had the fitting effect of making our country's worst administration also the shortest.


A series of strikes by sore losers occupied much of last March and April. They yielded some benefit, however, in ridding us of the worst troublemaker in Congress, Robert Follette Jr. of Wisconsin. Although elected as a Republican back in ’28, by ’32 he was the main organizer of support for the vetoed ‘Anti-Injunction Bill’ that would have destroyed most existing labor contracts because based on individual, not, collective bargaining, and stopped courts from restoring order in strikes. Now he calls himself ‘Progressive.’ How ironic that he was convicted of violating just such an injunction in the Cleveland rolling mill strike. Fortuitously, during the trial his brother Robert died of bad liquor in a house of ill-repute and the new Governor appointed a good man. We didn’t make any progress on the other radicals—although quite a few Democrats could see reason on the economy they put party over principle when it came to individual men.

By May we were able to get to work. We have improved relations with the whole region and allied with Guatemala, Peru, and Venezuela. We had high hopes for Argentina and Uruguay but thus far both regimes refuse even to consider a text. Unfortunately the others have internal political weaknesses that prevent them from even formulating a foreign policy—except for insignificant Paraguay and a few, such as DR, Nicaragua, and El Salvador, from whom we would not take ‘yes’ for an answer. We are building an intelligence network in Colombia but have no progress yet on political change. Maybe improving our ability to read their communications will help.


Finally, real action. On the 22nd Generals Craig and MacArthur re-entered the Dominican Republic with all five divisions (we have upgraded our infantry equipment, including new artillery, but have not been able to afford expansion). The people welcomed the return of stable government; we suffered just 160 losses (unfortunately a few corrupt Dominican officers and yet another radical Haitian strongman sent more than 11,000 of their own people to die). The real resistance was the rain in the mountains, which held out until late July.

The muscular nationalism displayed has been popular at home, although the island is not proving as lucrative as expected. Even when fully assimilated, the poor infrastructure will limit the island to less than half its potential [5.3/11 base IC, net with peacetime penalties 1.2]. At least it is self-funding in raw materials.

Assimilating the island has also been slow, as Congress could not be persuaded to fund the new Assistance Force until after the operation. Two units been deployed thus far.

Economic progress has also been slow; we have usually been able to afford just 5 tech teams. Advanced Machine Tools made a nice Christmas present, but—unexpectedly 3/5 of the benefit was lost to an increased peacetime penalty. We’re now at 71 effective IC rather than c. 80 as expected. The green eyeshade men say infrastructure won’t help much, but some of our Texan friends were persuasive that the hurricane damage at Galveston justifies improving the Houston port facilities. By June we’ll see how that works out.

This year’s projects will be Cuba (once the third A.F. reaches Hispaniola in February); when all is calm there, Nicaragua and one or two others. Brazil will require expansion of the Army and possibly upgrading the Air Force, but we won’t be able to start until the carriers are fully paid for; there will not be much progress this year. We’ll keep working with friends in Colombia and Mexico, and hope that the Southern Cone countries see reason.

1937 and 1938 sliders: +1 professional_army each. This brings max. org. to 49%, enough for short–term needs.
 
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Cuba Libre

November 9, 1938.

In April and May Craig and MacArthur were again successful, liberating Cuba in about a month. [Stacking in AoD is tough—fortunately for them as well.] Eaker’s First Bombardment Wing, flying from Miami, helped to deter the foolish. Unfortunately—as we have learned before—many of that race persist in foolishness, which got over 3,000 of them shot. 178 American lives were lost, which faint-hearts at home considered shocking. Agitators took advantage, but the protests were thinly attended. Clearly the public must be educated on the necessities of policy.

Infrastructure limit will be about half of potential [4.1/8; 1.0 effective for now]; self-funding in resources except for a very small rares deficit.

By early August we had deployed sufficient police for regular administration of Cuba and were able to bring the Army home for recruiting and retraining. In five weeks in September and October, our command team did their magic again in Panama, Costa Rica, and Nicaragua. Mac wanted to start with Nicaragua as politically the most important (some say that he also though that amphibious operations are more heroic than just walking in), but was over-ruled because of the risk.

Then disaster struck. In the midst of the most serious combat encounter of the campaign Eaker grounded all air support, claiming that lightning storms made it too dangerous. While Craig and Mac screamed, Oscar Westover flew down to make an emergency investigation and was lost on a mountainside in Costa Rica. 130-odd soldiers also died that week, and over 400 in the operations overall (professional complainers claim 18,000 natives). Although burials were in the field, opposition political parades re-named ‘funerals’ continued for over a month, and in places the police could not be made to keep order.

None of this helped on election day. We gained one more seat in the Senate, making 25, but lost nine in the House for 152.

Nevertheless we succeeded in organizing both houses. It happened this way: 22 ‘Dixiecrat’ Senators bolted to form a new State’s Rights Party. The Houston port and Birmingham rail loans had already moved a few, and some of us had showed foresight in explaining to President McNary that the two Court openings were not his at all, but had to be given where they would do the most good. By choosing Congressmen Martin Dies of Texas and John Rankin of Mississippi we established bona fides that is paying off now. (RL: Dies was the first chairman of what became the House Un-American Activities Committee; Rankin, an initial member, helped re-direct its efforts from the German-American Bund and the KKK to Communists.)

In return for several chairmanships and promises of further internal improvements, the Dixiecrats agreed to caucus with us. A railroad loan helpful to the Pennsylvania oil interests of Joseph Guffey (of Teapot Dome ill-fame) brought him in, putting Vice President Bricker in the driver’s seat. It was even easier in the House, where so many serve particular constituencies.

Someone had to pay. The President and MacArthur wanted Eaker’s head, while Westover’s deputy, Henry Arnold (Carpet Bombing Doctrine), defended him. Arnold was unacceptable, not only for that but because of his commitment to the bizarre “industrial web theory” under which four-engined superbombers would someday damage an electric power station or two and thus collapse Germany—a country not an enemy. Charles Lindbergh fit the bill, being both politically reliable and a good fighter man like Westover. After Arnold, his lack of military experience may be an advantage; the Air Corps Tactical School is clearly in need of some different colonels. But Lindbergh surprised not a few by agreeing with Arnold on one thing—Eaker kept his job.

In the end it was Rowlett who rolled, for focusing on naval reconnaissance against regimes that lacked even torpedo boats. Vincent Astor promises better, which is well since our political intelligence has also been poor. By June we had 30 useful contacts in the Columbian business and officer classes, and State rated the chance of productive change at 8%. We decided to wait for better cryptography, which turned out not help, nor have we been able to advance our networks further. It is time to make something happen.

Although we have work to do in restoring calm both at home and in Southern Central America, it has been a good year overall. At times we have been able to fund as many as nine tech teams, although meeting regional obligations to our new political partners will crimp that for the next two years. Still, soon we will be able to upgrade the infantry and artillery to 1939 standard and the bombers to 1938. Even more important, we must expand the Army to ten divisions at least.

After all, if we are now a three party system, there must be one party too many somewhere. It won’t be hard to nominate Getulio Vargas’ Brazilian Liberal Alliance, especially after he aborted this year’s election. We can’t let him go on for another year.

Ministers:
Intelligence: Astor (Dismal Enigma, intel advantage +30%, send spy +5%, counter-esp. +5%).
Air Force: Lindbergh (Air Superiority).

[AoD observation: IC for the Caribbean and Central America are quite inconsistent. IC is not the only measure of economic size but it is important—and the only one for minor countries whose resources are simply matched to their IC. IC/$ bn 1950 GDP:
Mexico: 19 IC, $4.0 bn, 4.8.
Colombia: 10 IC, $2.5 bn, 4.0.
Dominican Republic, 6 IC, $1.6 bn, 3.8.
Haiti: 5 IC, $1.5 bn, 3.3.
Nicaragua, 6 IC, $1.9 bn, 3.2.
Guatemala, 7 IC, $2.3 bn, 3.0.
Honduras, 6 IC, $2.1 bn, 2.9.
El Salvador, 7 IC, $2.8 bn, 2.5.
Panama, 5 IC, $2.3 bn, 2.2.
Cuba: 8 IC, $4.2 bn, 1.9.
Costa Rica: 5 IC, $3.0 bn, 1.7.
Puerto Rico: 1 IC, $3.0 bn, 0.3. P.R. may have been the fastest growing of these during the 1940s, but not 470% faster (the differential needed to make the scaling equivalent to Costa Rica’s). Source: University of Washington Institute for Health Metrics and Evaluation, http://www.healthmetricsandevaluati...estic-product-gdp-estimates-country-1950-2015.
 
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First a Jump to the Left

Or right.

Jan. 1, 1940.

The new Congress promised an opportunity to restore sensible economic policy at the national level—sound money, non-interference in labor and financial contracts, freedom in industrial combinations, and an end to punitive taxation of investors. The best guarantee of efficiency, quality, safety, and productive work for all for is for each man to run his company as he sees fit, setting wages, work practices, and prices as he will, and let the market tell him whether he is right or wrong. (Some of the newer industries do need uniform standards but they can agree on those among themselves.) Our other priorities were expanding the Army, new bomber models, and long range destroyers for our somewhat top-heavy fleet.

We knew that our new partners would have their price. We paid as cheerfully as we could, in ports, rails, dams, and assorted lesser boondoggles, and in unfortunately distortive tariff changes protecting cotton, tobacco, rice, and sugar at the expense of industry (the increasing diversion of Europe’s best companies to military production helped take the sting out of the latter). It was also deemed politically helpful to support West Virginia coal and Pennsylvania oil. Finally, our nation’s business capital was in sore need of bridges and tunnels as well as essential aid to the telephone and telex companies serving the Street.

These costs were not small. We had to settle for bombers less capable than European standards, just six destroyers, delay of Army expansion (we won’t reach 11 divisions until next year), and a slowdown of research and intelligence.

But no sooner had the Dixiecrats been fed than they bit our hand. In February they brought in bills to replace federal enforcement of laws on liquor, firearms, counterfeiting, and lynching (admittedly the last toothless) with pure state independence, as well as making the Bill of Rights a matter of state sovereignty. For three months our party, the rump Democrats, and the public were in an uproar; government and business were nearly paralyzed. At first we expected to be able to deal individually as in 1937-38, but they showed remarkable discipline for a new party, led improbably by a South Carolina judge (they elect their judges there) barely into his 30s named James S. Thurmond. Has any major party ever been led by a man so young holding no national office?

We had to give in, getting only a commitment to keep Congress out of officer promotion.

The results have been worse than feared—twelve states (all but one of the former disloyal states plus Missouri and Oklahoma, while Tennessee and Kentucky remain on knife’s edges) have become racist theocracies run by Thurmond’s Southern Baptist friends and local business cabals. Several legislatures have been induced to invent new regulations favoring local enterprises, while out of state investors are being pressured to issue shares to local favorites. If this goes on the sacred principle of non-interference in interstate commerce will die, and with it the national economy.

For the moment nothing can be done. The commerce issues (and the Bill of Rights complaints) came before the Court but it deadlocked 4-4. McNary’s two appointments last term seemed necessary at the time but in fact Dies and Rankin have not kept the wolves out; they are the wolves. Under current conditions it is best not to try to fill the open seat.

We will not allow unscrupulous men to reverse what our grandfathers died for. Though we may have to grit our teeth for the moment, meetings are being held and plans laid.

In foreign policy it was an eventful year. As we could not address Brazil, in August the Craig-MacArthur-Eaker team was sent to stabilize El Salvador and Honduras. After four outings they have become quite efficient, although Mac never seems to stop complaining about Eaker [skill +1; Mac 95 exp]. This time there no one resisted long; only 139 men lost versus around 2,000 enemy.

Then the world caught fire. In August Japan, which already occupies all of China East of the Nationalist redoubt around Chongqing and the Communist one further North, attacked Russia—a true case of “a plague on both their houses”—while Germany and Russia invaded and carved up Poland. France and Britain, along with Canada and the Empire, hypocritically declared war on one offender but not the other. It is strange to realize that the Montrealer can now take you in just seven hours to a country at war.

Both the Dixecrats and Defense Democrats (as they call themselves now) panicked, demanding massive re-armament. The three-sided negotiation afforded room to maneuver, so we were able to hold the line at just three large CVs, eight more DDs, and promises of continued Army expansion into 1941—the latter two desirable anyway. Later, in the reconciliation conference, we were able to swap some of the projected infantry mass for three ‘high altitude’ divisions, genuinely modern artillery, and additional Assistance Forces to allow MacArthur’s men to come home and re-train.

The Dixiecrats got a third round of improvements, now styled ‘defense preparations,’ although we slipped in a little for Illinois, New Jersey, and New York, which should help us politically.

For the national interest we were able to get substantial investment in modernizing industry (for the first time, all 10 tech teams), trade designations comparable to British ‘imperial preference’ (the conservatorships now yield 21 IC, over 10% of the national total, which will rise to 25 when Northern Central America is regularized), and more intelligence funding. In November the Colombian government was re-organized and in December acceded to the Americas Pact, which now has thirteen members including the eight conservatorships. New intelligence efforts are under way in Uruguay and Chile.

Sliders (Social Conservative, in the worst way—maximum anarchy with maximum foolishness):
Democratic: 10 (unchanged).
Political_left: 1 (event 5018 option c -1).
Freedom: 10 (unchanged).
Free_market: 10 (unchanged).
Professional_army: 6 (1939, 1940 +1 each, event 5018 +1, events 56 and 57 -1 each). Max. inf org 61%.
Defense_lobby: 6 (event 56 +2, event 57 +1, +1 from some 1937 event).
Interventionism: 10 (event 56 +2, event 57 +1 irrelevant).

Ministers:
Navy: William Leahy (Decisive Battle), replacing Swanson who passed away.

Infrastructure built and building:
South (42): Houston, Dallas, Lubbock, Birmingham, Chattanooga, Louisville, Clarksburg: 6 each.
Other (18): New York 6, Harrisburg, Charleston (WV) 4 each, Chicago, Newark 2 each.
 
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E Pluriibus Unum

November 6, 1940.

During the first half of the year it may have appeared that both domestic and international politics were disintegrating, but only the outside world actually was. In March the Germans attacked Denmark and soon the rest of Western Europe, conquering it all but for a rump of France. In June Italy attacked Britain, Russia seized the Baltic States, and the Tokyo imperialists tried to coerce the new French government to surrender Indochina and Madagascar, though it resisted. If they continue like this we may have to fight them, sooner or later. (Some hawks wanted to embargo oil sales, a self-defeating idea if ever there was one—Japan is our best customer.)

At home the priority was to escape the deadly Dixiecrat embrace by finding new partners, even among those whose socialist economics drove us to that bad bargain in the first place. Then the cession of Iceland to the Germans created a momentary panic before the British seized the island for themselves. We quickly acted on a long year of effort to identify the more sensible—and the more biddable—among the Defense Democrats to re-align Congress on a program of promoting manufacturing across the North. With unemployment declining we were able to resist demands for outright giveaways and preserve fiscal rectitude. Over half the new revenues went to expand the budget surplus to $900 million for the year [AoD: +$18k]—by far a record. Wage pressures are appearing, but expanded imports from the Americas should hold that down.

We were also finally able to fill the three Court seats that had been left open—one for over a year.

By June, fifteen divisions were ready with more working up. Army intelligence pegged the Brazilians at 47 albeit with poor training and morale. The problem was entry. Uruguay would have been perfect but Astor’s efforts showed little sign of bearing fruit. The Upper Amazon route would have taken more than a year at incredible expense. MacArthur proposed landing at Portaleza, but against corps-strength coastal garrisons this risked military failure and political disaster. In the nick of time Bolivia’s and then Paraguay’s accessions to the Americas Pact—the latter while the first convoy was actually at sea—provided a way. The expedition landed at Arequipa, then crossed the mountains to Cuidad del Este where it halted to rest and re-supply—slow but safe.

By September Craig and MacArthur pronounced themselves ready, but an investors’ committee who spoke to younger officers on the scene came away convinced that the river crossing into the Curitiba mountains would be too dangerous to leave anything to chance. We prevailed on the President to give command to the newly promoted Courtney Hodges, who waited until he had 23 divisions all at peak readiness, including the High Altitude Corps under a comer named Patton, as well as new long range planes that allowed Eaker to fly from Asuncion.

This also had the advantage of postponing combat until two weeks before the election, just time for the people to rally around an initial success but not enough for the bill to rise too high. The declaration of war debate on October 20th took until nine in the evening but passage was not in doubt, with ultimately only 16 ‘nays’ from the Progressive Democrats and five scattered Dixiecrats and Defense Democrats. It was delivered in Rio at two o’clock the next morning (four o’clock their time) and the attack jumped off six hours later. Well prepared as it was, the initial battle cost a week of hard fighting and nearly 3,000 casualties, 463 of whom died, which probably did cost us yesterday.

A professional raconteur named George Will once said “I don’t belong to an organized political party; I’m a Democrat.” With the help of the Almighty and, it must be said, exceptionally businesslike operation on our part, they have done it again as in Douglas’ and Bryan’s times. By the Fall the opposition had split into three named parties—those willing to work with us (Defense Democrats), the Dixiecrats (States’ Rights Democrats), and the die-hard class warriors (Progressive Democrats) who united with the minor leftist groups such as Labor, Farmer-Labor, Liberal, and Progressive.

We formed a pact with the D.D.’s to field the same national ticket, fighting everything else separately except in Tennessee and Kentucky where we combined out of necessity. Of course we had to give them the Vice-Presidency, nominating Alben W. Barkley of Kentucky. (RL: Senate majority leader 1937-49, VP 1949-53). We would have moved up Bricker, who understands the economy better than McNary does, but the D.D.’s would not have him. So we re-nominated McNary. At least he now understands even better than he did who he works for.

We also had to accept a new ‘Workplace Safety’ bureaucracy and injury insurance, which will interfere with managerial freedom and industrial discipline.

Domestically, the D.D.’s promised further restriction of industrial freedom, although on a less damaging scale than their party’s former platforms; for the Progressives former Agriculture Secretary Henry A. Wallace (RL: 1948 candidate) trotted out the same old confiscation of wealth; while Judge Thurmond and the Dixiecrats (RL: 1948) promised further destruction of governance.

Abroad, the Progressives called for a shameful climb-down in Brazil in order to confront Germany, the Dixiecrats wanted to continue as well as fight Japan and Russia—sometimes, it seemed, both at once—while the D.D.’s, afraid to criticize the boys in Brazil, wanted to stay neutral globally while using massive mobilization as a make-work scheme.

All this might not have been enough if not for the help of Clem Whitaker and his brilliant lady, Leone Baxter—the folks who defeated the California income tax last year. Campaigns, Inc. has made politics a science. They demanded complete control of advertising and immense funding; nineteen of us had to put up a half million each, five times what we paid for Hanna’s help with McKinley. They used it for newspaper and radio on an amazing scale, as well as working with editors to get us more than two thirds of all endorsements in the 41 states we contested. Government costs more than it used to, but the certainty makes up for it.

Thurmond carried eight of the disloyal states for 79 electoral votes, while Wallace took only Minnesota, Wisconsin, and Iowa for 34 and the joint ticket the other 422. Our cultivation of key men in Texas, Tennessee, and Virginia paid off nicely. We got 44% of the individual ballots, while the D.D.’s difficulties explaining their complicated position netted them just 15%. The Dixiecrats got 17% and the Progressives did well with 24%. The opposition’s disorder was critical; our own line polled majorities in just 10 states. Lindbergh’s behavior was an appalling surprise. He has always held strange ideas for a Michigan and Minnesota man, but no one expected that he would ignore party instructions and endorsed Dixiecrats over D.D.’s in several races. Popular, we could not fire him during the campaign, but he will be retired shortly.

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In the Senate the coalition has a comfortable majority of 59. We gained three to 28 while the D.D.’s lost eight to 30 (had all their Senators been at risk probably not twenty would remain). The Dixiecrats lost one to 19, and the Progressives gained six to 19. In the new House we face a 212-223 deficit. We lost seven to 162, while the D.D.’s sank like a stone, losing seventy to 50. The Dixiecrats lost three to 89. The new power is the Progressives, up an incredible eighty to 134. The D.D.’s are in trouble, and indeed are stuck to us now. (RL Republican popular vote share and House and Senate results; the 10 states were Willkie’s plus OR—McNary’s home—minus IA—Wallace’s.)
 

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Get a Map!

January 1, 1941.

In December Ernest J. King set out with the first U.S. battle fleet to include carriers to take advantage of the imminent fall of Curitiba by escorting four divisions of reinforcements direct to the front. They had not got half way before Captain John S. McCain of USS Ranger pointed out that the tiny port of Paranagua lacked refueling facilities adequate to allow the force to return. Leahy was replaced with Chester W. Nimitz, who had wisely stayed at base in Miami during the debacle.

Hodges, enjoined to proceed carefully in the terrible roads and frequent rain, has so far taken only Mato Grosso, Curitiba, and Campanis, but is preparing to seize Sao Paolo’s valuable port and airport. Porto Allegre is now an isolated backwater. Clearing Curitiba took several more sharp fights; casualties approach 10,000 including 1,571 dead—not low but acceptable for what has been achieved. (Few enemy bodies or graves have been found, nor many captured. They must be dumping the seriously wounded in jungle ravines to prevent them undermining morale.) The D.D.’s keep quiet, while the Dixiecrats object only that it is cowardly to let blacks hold us up. The Progressives are stirring up all the trouble they can, borrowing an old line to call it a “rich man’s war but a poor man’s fight.” The Great War sedition laws are still on the books, but after what we gave the Dixiecrats back in ’39 we can’t use them in the states where the trouble is.

Economically we are all right. As we no longer owe the Dixiecrats anything, certain projects can be cancelled. Instead some of Barkley’s friends in Kentucky and New Jersey are in line, as well as Bricker’s in Ohio. It is also high time that our earliest backers get the Caribbean port expansions needed to get their produce out. The conservatorships provide 25 IC, 10% of our peacetime total; that must be increased.

We can’t pass legislation, but thankfully the new Court upheld old precedents in striking down Office of Industrial Safety and compulsory insurance. Some D.D.’s are furious, but they can do nothing. It is true that, with the reserve army shrunk to almost nothing, labor costs have crept up nearly to the 1928 high, but with expansion both abroad and at home profits are good.

Across the ocean the Germans are apparently satisfied; likely they will soon evacuate Western Europe so that normal commerce can resume (it is not obvious which French government we should prefer, so we have held off recognizing the new one). The British, by contrast, have hurt themselves by aggressing in all directions—against French Syria (without success), their own protectorate in Mesopotamia (where fighting continues), and by seizing Italian Abyssinia. The Italians have chased them entirely out of Egypt, Palestine, and Transjordan, and press Southward to recover their African colony.

The only really important news has come from Asia, where the Red Army has rolled over the Red Sun in Korea, Manchuria, Mengkukuo, and Northeast China, and is still rolling. The Japanese also face renewed resistance from the Chinese Nationalists in the West and local groupings in the South. Reasonable men now differ on which of the two aggressors may prove the greater threat, though certainly neither is immediate.

Dissent: 2.34 (+1 DoW Radical Left, +5 casualties, re-election bonus and minister penalties ignored, -3.66 worked off).

Sliders (Market Liberal):
Democratic: 9 (Campaigns, Inc. -1).
Political_left: 3 (event 5003c +2).
Freedom: 10 (unchanged).
Free_market: 10 (event 5003c -1, 1941 slider +1).
Standing_army: 6 (unchanged).
Defense_lobby: 7 (event 581 +1).
Interventionism: 10 (event 581 +1. Peace March -1, “No” to Lend-Lease and to Arsenal of Democracy -1 each, all ignored).

Ministers:
Head of Government: Barkley (Silent Workhorse, IC +5%, diplomacy cost +20%).
Navy: Nimitz (Power Projection, CV/BB/CA/CL combat bonus, DD/TP production penalties).
Air Force: Ira C. Eaker (Carpet Bombing, str and esc ftr bonuses).

1940 infrastructure appropriations:
South 0: Houston, Lubbock 2 each, Chattanooga, Clarksburg -2 each (two year total 42/35 complete).
Other U.S. 60: Newark 8, New York, Atlantic City, Chicago, Philadelphia, Pittsburgh, Cleveland, Detroit 6 each, Cincinnati, Los Angeles 4 each, Charleston WV 2 (78/41).
Conservatorships 28: Port-au-Prince, Santo Domingo, Havana, Tegucigalpa, San Salvador, Managua, San Jose 4 each (28/0).
Grand totals: 148/76.
 
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Mayberry R.F.C.

July 5, 1941.

On June 7th Germany and Russia went to war, and on the 12th Britain and Japan. Of late German policy has become confusing. Bedeviled by British meddling in Yugoslavia, they established order there; that may also explain why normal trade has not yet been restored in Western Europe or across the Atlantic. Meddling in Mussolini’s spat with Greece is harder to understand—unless English agents were at work there too? The Bolsheviks must now fight on two continents, which is surely good for all of us in the long run. In the short run it may help the Japanese militarists most.

Japan’s behavior is even harder to understand. The sun may be setting on the British Empire (earlier this Spring they had the temerity—and desperation—to ask us for surplus warships!) but the Japanese have now committed themselves to fight a world power while fully committed on two other fronts. They won’t last long, and Siam has made the mistake of joining them. All the same, we will have to pull men from South America to garrison the Philippines, Guam, and Hawaii.

As anyone might have guessed, Congress panicked for what is now the fourth time in two years. The D.D.’s, seeing a chance to regain popularity, fairly leapt joined the opposition on a ‘Global Strength’ bill that provided for conversion of the three carriers on the stocks, at fantastic expense, plus three more to follow them; two more battleships after Indiana; sixteen destroyer flotillas; troop transports; special ‘merchant defense vessels;’ expansion of the heavy ship modernization program already begun after Todos Santos; and loans to the merchant marine. By 1943 the Navy will stand at 11 CVs—surely excessive for any eventuality—20 BBs; 25 modern and 8 interwar cruisers; and 30 long range and 3 interwar DD flotillas. In addition the bill authorized nineteen divisions and eight long range pursuit and eight bomber groups to bring the Army to 60 divisions (36 with up-to-date heavy guns) and 22 air groups; fortification of the Pacific islands; and rocket and radar research.

An otherwise inconsequential D.D. Senator named Harry Truman introduced a resolution to go further by using the fleet for ‘undeclared’ war to stop German interference with Atlantic commerce, but as the D.D.’s, Dixecrats, and Progressives were all divided it did not pass.

Global Strength, however, was too popular to veto, so we had to let McNary sign it (although with Eaker’s help we got the bombers postponed). This ended hopes of another budget surplus this year; rather the problem became avoiding government borrowing. The solution was a new ‘Re-armament Finance Corporation’ to fund defense-related capital expenditures, paying back its bonds from an increased levy on imports from beyond the hemisphere (desirable anyway), a small national sales tax to be phased in over five years (also desirable, to prevent higher wages under full employment from putting pressure on prices, starting a vicious circle), and its own investments in industry. R.F.C. has already proved a great success, helped along by issuing denominations as small as $5, the public confidence inspired by the company head, a handsome and folksy young man called ‘Andy’ Taylor (formerly sheriff of Mayberry, North Carolina), and executive controls on non-business credit, savings, and foreign exchange.

R.F.C. has also come in handy in funding continued infrastructure investment from Pennsylvania to the Midwest as well as in California, Texas, and even Louisiana where there are deserving oil producers. As New York, Northern New Jersey, and Chicago are by now well provided, we have initiated direct loans to chemical companies willing to go into artificial rubber as well as others with proven records of success or who are willing to start up artificial rubber [AoD: synthetics, IC]. Orthodox economists object to this, but it is hard to see any harm besides inspiration of jealousy. It is worrisome, though, that combined federal and R.F.C. spending will be nearly triple the federal budget five years ago.

The war in Brazil took less than half a year, helped by the enemy’s strategy of all-around defense, which kept half their army defending the Upper Amazon and Northern Coast against attacks that we never mounted. In early January, finding Sao Paolo lightly defended, Hodges launched Eisenhower’s and Patton’s corps in a two-pronged attack. Patton’s muleteer climbed their hills faster, arriving on the 11th. Vargas, that wily survivor, came over to us with a number of friends, although a rump radical command continued to resist without hope.

Our forces then overran Rio, Vitoria, Goias, Salvador, and finally Recife and Belem. On April 9th the rump cabinet dissolved and we accepted the accession of the Vargas Estada Novo to the Americas Pact. We suffered 16,000-odd battle casualties, more than half in Curitiba, including 2,629 dead. The records of the former Brazilian government show about 24,000, but are no doubt incomplete or falsified. Domestically, the Progressives kept the pot boiling throughout the war, but within a month after its end their campaign lost its steam.

Salvador provided the occasion for MacArthur to try out his “small boat” ideas; although his landing was not completed until after resistance in the province had collapsed, his men beat Marshall’s to the city, infuriating the latter. Just two weeks at Recife later a young Major General named Clifton B. Cates returned the favor to Mac himself.

Our team performed admirably. Hodges, now our country’s first Field Marshal, who introduced scientific techniques for the special conditions of jungle as well as mountain operations [AoD: 2 traits]; Badoglio, Graziani, and Bock are not the only military geniuses of our era. MacArthur, now General, shattered the enemy at Curitiba with heavy artillery [+1]. Eaker seemed to be everywhere all the time despite having to operate from improvised bases and, between missions, replace all his aircraft with new models twice [+1]. [Most (all?) leader effect seem to have been halved since Arma.]

It was a good outing for the Navy too. The new air-led sea combat is a very different age than we are used to. For six days in February the sides hunted each other across the Baia de Todos Santos. They never sighted a U.S. ship at all, while we could find the enemy only for brief moments as our pilots struggled with navigation, weather, and engine reliability, especially in the BT-1s . Captain McCain distinguished himself, flying ten missions personally, although the family suffered tragedy when his son, John Jr. of Scouting 6 (USS Enterprise) disappeared with all nine planes of his section (McCain has a grandson, also of the same name, a cute toddler; one wonders what he will grow up to be). Altogether 69 airmen were lost accidents but not one to the enemy.

Despite the problems, old Billy Mitchell was proved right—more or less. It was not high altitude bombing but a new ‘dive technique’ used by the SBC crews that sank Sao Paolo, Minas Gerais, and, later on, a cruiser and some dozen destroyers. The TBD torpedo attack planes that have already entered service with the West Coast Fleet promise even greater things. One lesson was applied immediately. USS Arkansas being not much newer or much different in design from the two British-built battleships, as well as expensive to maintain, was transferred—along with USS Omaha, USS Trenton, and twelve interwar destroyers—to help our new friends reconstitute their fleet. The sale price paid for a new DD flotilla.

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Although Astor made contact with everyone important in Montevideo, he could not persuade enough of them, so Hodges had to go to explain matters. The instrument of accession was signed June 10th. Since Buenos Aires also refuses to accede, he goes there tomorrow. Mexico, Chile, and Ecuador—the last friendly to us but furious at the Peruvians for seizing Iquitos—remain as holdouts. These three will pose real difficulties, as their Social Democratic regimes are effectively allied with the Left opposition at home—unless Astor can again work the magic that he did in Colombia.
 

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Musical Chairs

August 20, 1941.

Today the last resistance ended in Bahia Blanca. A new government will be formed that will take Argentina into the Pact as the 18th member. The campaign was short and sharp: we suffered some 11,000 casualties including 1,684 dead in just 44 days. At times the fighting was confused; Cates’ division was beaten in a small engagement in the mountains; later on Eisenhower’s corps, having landed from boats, had to retreat overland to the Plate. None of our generals distinguished themselves especially and the Navy embarrassed itself. Although the carrier boys found the enemy several times they scored just one bomb hit, which did not sink Rivadavia, while one of our destroyers was destroyed by fire after being machine-gunned by a fighter.

None of this went down well at home; the opposition criticized us for reporting only battle deaths, since more than twice that number died of other causes. This is ridiculous, since soldiers die in peacetime and civilians at any time. Nevertheless the professional pot-stirrers have been at it almost continuously since we went into Brazil, and at this rate we cannot expect calm before November at the soonest. Astor must do better in Chile and Mexico—soon.

The Germans have done well in Russia, and are said to be within 100 miles of Moscow. The British have lost Malta to the Italians and Malaya to the Japanese. Retiring Chamberlain has steepened the rate of decline, since Churchill has obviously learned nothing from his mistakes in the Great War. When the Army was needed in Egypt he had it Malta; when needed in Malaya he had it Hong Kong. In China the war grinds on.

At this rate Tokyo may soon have the Philippines surrounded, which we cannot allow. On the other hand, reduced British buying power and the high cost of insurance because of the blockade have made Japan our largest trading partner.

Americas Pact members (18):
Simple accessions (7): Guatemala, Columbia, Venezuela, Peru, Bolivia, Paraguay, U.S.A.
Peace accessions (3): Brazil, Uruguay, Argentina.
Conservatorships (8): Haiti, Dominican Republic, Cuba, El Salvador, Honduras, Nicaragua, Costa Rica, Panama.
 
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Christmas in the Summer

January 1, 1942.

It has been an excellent year. With nearly as many projects funded this year as the previous two combined, industrial expansion continues apace. The new advanced chemical complex at Newark already supplies 4% of the country’s rubber production using just 9% of available crude oil. Early investors have reaped great rewards, which will only increase with greater efficiency and output. They say that even artificial oil is possible, though there would be no money in it.

The only important cloud has been the decline in the federal cash position, as R.F.C.’s activities have grown so large as to require the Treasury to subscribe some of the bonds. Some of our fellows in business are irate that the government is running a ‘deficit,’ but this is so only in a niggling accounting sense. Nor are we ‘distorting’ the economy by favoring certain investors; concentration of capital’s bargaining power is necessary to save the economy from the wage-price spiral that will destroy us all if we loosen our grip. In any case the purchases are a purely temporary effect of British distress due to their many wars. Forced selling of their investments here and throughout the Americas has depressed securities prices, creating opportunities that R.F.C., like anyone, would be foolish to ignore.

The Chilean campaign jumped off a little before 2 P.M. on December 7th (local time; an hour earlier in Washington). It was a Sunday and we achieved complete surprise. The infantry fighting lasted just two days, at negligible cost, after which the infantry had a refreshing walk in the mountains, which are beautiful this time of year. Hodges secured the signatures the accession in Santiago on the 21st. Having done this in four countries by now he is on his way to becoming a wealthy man.

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The Navy, as is becoming routine, kept trying to sink the Chilean ships but could not do it until Eaker intervened; then Almirante Latorre and a cruiser went straight down [+1]. One has to wonder whether there is something wrong with this floating air base concept, but Eaker says they just need good planes like his. They will be expensive, but we’ll have to; Army men don’t ask things for the Navy, let alone right after the 14-6 drubbing Army took this year.

Astor has had three strikes and is out. Army intelligence will now be run by William J. Donovan, who had better do better in Mexico.

The Germans entered Moscow at the end of October and have advanced far to the East, approaching some place named after a novelist. The Russians have lost some ground in China and have opened a third front in Persia. The contest in Sudan continues indecisively. The British seized Syria on their second try but lost Malta to the Italians and Burma to, of all people, the Siamese. Everybody seems to be at war with everybody else.

Refugees from occupied Russia, and even from Poland, tell of the Germans committing incredible atrocities, but Bolsheviks routinely say whatever is useful to them that week—and at the moment they are desperate. The English are selling the stories too, but then they tried that trick in 1914. Some of the Progressive Democrats are agitating for us to help the Russians, which we certainly will not. Others keep quiet on the issue, realizing that it only exposes their own ideological extremism to the public.

Japanese behavior in the Indies makes no sense. Ignoring the Dutch oil, over the last half year they have gradually absorbed a number of places nothing of value beyond exotic names like Kuching, Makassar, and somewhere called Arare which is supposedly on the coast of New Guinea but does not appear on most maps. They seem to be aping the German fascination for dangerous hikes, only with steam instead of snow.

The Army and, especially, the Navy brass keep pointing out that these places lie Southwest, South, and Southeast of the Philippines. Vandenberg sent Tokyo a stiff note, which brought assurances that they have no intention to disturb our countries’ co-prosperity. Certainly they would not find us unprepared like the English or Dutch. But there are real threats: reduced demand for our metals once they fully integrate Malaya, and for oil if they seize the rest of the Indies. More men must be sent to the Pacific, quickly. We could use a fast liner like Queen Mary. Fortunately one can be had; SS Normandie has been laid up in New York for a year and a half now, and the French need cash.

Dissent: 2.69 (+3.89 DoW Social Democrat, +0 casualties, minister penalty ignored, -1.20 worked off).

Sliders (Social Conservative):
Democratic: 8 (1942 slider -1).
Standing_army: 6 (event 58 -1, unrecorded event +1).
Hawk_lobby: 8 (event 58 +1).
Interventionism: 10 (several events ignored).

Ministers:
Intelligence: Donovan (Political Specialist, manipulation/influence/coup etc. bonuses).

1941 infrastructure appropriations:
South 34: Dallas 8, Houston, Lubbock, Monroe, Louisville 6 each, Clarksburg 2 (three year total 76/56).
Other U.S. 73: Newark 10, New York 8, Chicago 7, Philadelphia, Pittsburgh, Cleveland, Detroit, Cincinnati, 6 each, Atlantic City, Charleston WV, Los Angeles 4 each (149/104).
Conservatorships 16: Havana, San Salvador, Tegucigalpa, Managua 4 each (44/17).
Grand totals: 269/177.
Industry 6: New York, Newark, Chicago 2 each (6/0).
Synthetics 10: Newark 10 (10/2).
 

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Patience

April 1, 1942.

Business remains good. In February we pushed through another round of infrastructure and industrial investments, although with such large unfulfilled Army, Navy and merchant marine programs scale had to be reduced compared to previous years. In New York, New Jersey, and Chicago efforts have been re-directed from infrastructure to production, since there would be little point to more roads and bridges beyond Sunday pleasure driving. Even if we imagine that in the future half of all households might have an automobile of their own, traffic can never approach capacity.

The P.D.’s complain that we are over-investing in the Caribbean but don’t understand that conditions there compel careful planning. Likewise Dixiecrats complain that the South is being punished for political independence, but the real barrier is local regulation hindering interstate commerce. Alabama and Tennessee leaders must learn the lessons that the Texans have.

In Europe and Asia matters continue along the same lines. In February the Germans took Leningrad and they approach the Volga; the Bolsheviks have moved their capital again, to some unpronounceable town between the river and the Urals. They are retreating in China but advancing in the Middle East, possibly to secure a bolt-hole once they are driven out of Russia. The Italian have overrun Ethiopia and Syria, and are now fighting both the British and the Russians for Mesopotamia. The British have collapsed almost everywhere; little remains of the Empire except India and Hong Kong, some bits of West Africa, and some islands in the Caribbean (if they dissolve entirely, we shall become responsible for those), and a rock that looks impressive on postcards.

The Ecuadorians gave us the run-around; by last week patience had run out. Hodges broke their resistance promptly and is taking the papers to Quito.

Our patience with the Japanese has also expired. In February the seized a few Dutch wells in Borneo. Then they crossed the border into Australian New Guinea where they surrounded and captured over 1,000 men, as well as sailing a fleet near the coast of Australia itself. The prospect of two trade partners interfering with each other’s commerce with us is intolerable. Operations will begin in two weeks, once a group of transports returning from the Philippines has safely passed the Mandatory islands.

This campaign will not be as difficult as those in Cuba or Brazil, let alone Argentina. It is true that they have overrun some territories of the decrepit British and Dutch empires, but only when practically undefended. Against the teeming Chinese and the Bolsheviks’ prison army they have barely held their own. And they have practically no fuel.

The armies are simply mismatched; our infantry has heavier guns while the high-altitude divisions have proved themselves from glaciers to jungles. Nothing matches our bombers or long range pursuits. As for personnel, there is no comparison; our officers show initiative while theirs slavishly do anything they are told. Our men are loyal while theirs are sullen—and mostly sickly. And everyone knows that with those eyes they cannot see in the dark.

The Imperial Navy does not amount to much either. They have wasted effort on submarines, which war experience shows are practically useless. The Germans’ best efforts have only created business for underwriters of hazard insurance, nor have the British been able to disturb Italian commerce much.

Their actual fleet has few modern ships, while practically all of ours are new or modernized, and sturdier too; the quality standards of American shipyards simply can’t be matched elsewhere. It is no coincidence that the three South American battleships that sank were British-built while the two from Quincy’s Fore River survived. We lack only a fast liner; unfortunately Normandie was destroyed accidentally by fire while under conversion.

Other than that we are ready. 17 divisions have been sent to the Pacific islands, the fleet is on its way to the West Coast, all eight fleet air groups have received their Devastators, and the advanced base on Guam is nearly complete. Since the Army has been too occupied to consider the matter, we will follow the Navy plan, called “Grapefruit,” which calls for a strong force to defend Manila while the fleet works its way West. Since most of the Army is still in South America, this may take a while but there is no hurry.

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Betrayal

April 16, 1942.

The reason that Donovan could not decipher the tangle in Quito has come into the open. The Ecuadorian and Colombian regimes were secretly negotiating with each other! On April 9th the two signed an Act of Union, creating ‘Bolivarian Grand Colombia.’ Hodges, arriving days later, was furious at the lost opportunity—as are we all—and is already preparing to save the peoples of these countries from their rapacious overlords.

We rushed war with Japan through the Senate 78-12 and the House 301-102, all of the D.D.’s and S.R.D.’s with us and not a few P.D.’s abstaining. But immediately afterward the extremist and anti-patriotic element denounced us for sending American boys into “a quarrel with a far away country over issues of whom we know nothing.” Radical labor agitators went further, telling otherwise loyal citizens that the “fat-cats” planned to “use Japanese labor to enrich themselves and impoverish you.” They succeeded in co-ordinating strikes on a scale never seen before; just now nearly 8% of the industrial work force is refusing to work. The high pay rates of the last couple of years, by create household cushions, have helped enable this trouble; we must not forget the lesson.

Last year’s deal to suspend States’ Rights can now be seen as no mere convenience but the salvation of freedom. With the ring-leaders silenced by indictments for Sedition and replacements deterred the danger point appears past, although the Pacific Campaign will be slowed. Three A.F.’s and nine divisions and were already engaged domestically because of the trouble over Ecuador; three more en route to the Pacific will have to be re-directed.

The German and Italian leaders may be more than a match for their counterparts in Russia and England, but they are no geniuses. The moment we broke relations with Japan, they—and the new French regime—broke relations with us out of some confused notion that anti-Communist and anti-imperialist states ought to stick together. Of course, there will not actually be an ‘Atlantic War.’ They could not cross the ocean even if the remains of the Royal Navy were not in the way, and if they could we would just bring back part of the fleet. Their ungrateful behavior does resolve one question. For months Vandenberg had been pressing for a decision on recognizing the new governments in Europe as well as the German border rectifications. He has been told to drop the matter. Non-recognition was good enough for President Hoover ten years ago and is not obsolete today.

The Army and Navy presented long wish lists including a dozen-odd capital ships, re-equipment of practically the whole Army, and such exotic ideas as non-combat units to be called ‘Army Groups’ and expanding the Marine Corps to entire divisions. The Dixiecrats, D.D.’s, and the less disloyal P.D.’s wanted to give them everything, paying for it all but stopping ‘wasteful’ improvements at home and in the Caribbean. We will do no such thing; with the votes to sustain a veto we consented only to 11 destroyer flotillas and 4 bomber groups. Even that will require a nearly 30% expansion of R.F.C.’s assets, which are already growing too fast.
 
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Back to Work

June 24, 1942.

Business conditions overseas remain good, at home fair; in a few areas infrastructure projects have exhausted their funding and it has not been possible, with the economy running below capacity, to fund continuation.

Successful sedition prosecutions have broken the labor agitators and the disruptions are calming, with employment up to 96%. The Leftists sued against use of the Army as supposedly violating the 1878 Posse Comitatus Act, but the Court shot them down. Without Dixiecrat support the issue can go nowhere politically either. In fact 19 divisions are being brought back from South America for temporary duty.

The people of Grand Colombia did not fight for their overlords, so our men had little to do besides walking through the mountains. Today Hodges obtained the accessions of Colombia and restored Ecuador, under new management of course. Mexico is the last holdout, but not for long if its leaders understand their interests or if Donovan can find others who will.

Churchill whirls fast and faster as the Empire he is supposed to preserve goes down the drain. Still retreating in Iraq and East Africa, Britain has seized Tripoli to no obvious purpose. The Germans are across the Volga in places, but overall their offensive has slowed. In China the Japanese are advancing against the Russians while retreating from the Chinese.

In the Pacific matters everything is under control. The Japanese have occupied some lesser Philippine islands but have not dared to challenge us on Luzon. Though they have been able to mount little threat to our trade, Nimitz has taken a full scale battle fleet to Hawaii to put a stop to it. Soon we will be ready to operate against the Mandatory islands, relieve the Philippines, and then replace the Tokyo aggressors with men competent to run a modern economy.
 
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Inevitable Victory

August 3, 1942.

We have won the largest naval air battle in history. Our main fleet, sent to stop submarine interference with trade, ran head on into the main enemy carrier fleet. For eight days 8 CVs of each side hunted each other between Wake and Midway before the Japanese fled, utterly defeated. We sank Akagi, Hiryu, Shokaku, and Amagi, seriously damaged the others, sank or damaged 5 cruisers and several destroyers, and destroyed more than 30 submarines. The I.J.N.’s main operational assets now—whereabouts unknown—are just two carriers, Soryu and Junyo [2 x CV-3], and six old battleships, while the submarine threat has declined from minor to practically nonexistent. Supposedly they have nine more CVs under construction, but they lack the shipbuilding capacity to complete so many.

We did not lose a single ship, nor many pilots. USS Saratoga will require extensive repair; Ranger, San Francisco, New Orleans, Quincyand a few DDs will need lesser work. For now three of our newest battleships, light cruiser Savannah, and some fresh DDs will take their places. The victory can be attributed to three factors: first, the IJN’s insistence on unsustainable operational tempos, including ineffective raid on Hawaii less than month before. Although their combined air groups were nominally about 500, they may not have had 300 operational planes on board, while we sailed with every one of our capacity of 617.

Second, superior radar and anti-aircraft guns. The decision to ignore the advocates of specialized anti-submarine destroyers has been fully vindicated by the sinkings of so many enemy subs by regular fleet DDs and aircraft.

Most important, superior planes and pilots. Commander John Waldron’s Torpedo 8 (USS Hornet) sank two carriers themselves and shared the remaining two with other squadrons. Low, steady, and unstoppable, the Devastator is what it is called. Waldron lost only one plane and one man, an ensign who was seen in his life raft but not found after the battle. The enemy 'Zero' is also what it is called--good at running away but not dangerous.

The battle exposed only one weakness on our side--Admiral Leahy’s indecisiveness, which allowed the enemy enough initiative to strike us several times, albeit to little effect; he will not command at sea again. A second weakness identified in planning for our next operations is the short endurance of the two oldest CVs, Lexington and Saratoga. Nimitz wants three replacements beyond the three already on the slips as well as a dozen new anti-aircraft cruisers. We have authorized two and five, which can be cancelled if not needed.

Landings in the Marshalls will begin as soon as the fleet finishes re-fueling, re-arming, and some minor maintenance.
We have won the largest naval air battle in history. Our main fleet, sent to stop submarine interference with trade, ran head on into the main enemy carrier fleet. For eight days 8 CVs of each side hunted each other between Wake and Midway before the Japanese fled, utterly defeated. We sank Akagi, Hiryu, Shokaku, and Amagi, seriously damaged the others, sank or damaged 5 cruisers and several destroyers, and destroyed more than 30 submarines. The I.J.N.’s main operational assets now—whereabouts unknown—are just two carriers, Soryu and Junyo [2 x CV-3], and six old battleships, while the submarine threat has declined from minor to practically nonexistent. Supposedly they have nine more CVs under construction, but they lack the shipbuilding capacity to complete so many.

We did not lose a single ship, nor many pilots. USS Saratoga will require extensive repair; Ranger, San Francisco, New Orleans, Quincy and a few DDs will need lesser work. For now three of our newest battleships, light cruiser Savannah, and some fresh DDs will take their places. The victory can be attributed to three factors: first, the IJN’s insistence on unsustainable operational tempos, including ineffective raid on Hawaii less than month before. Although their combined air groups were nominally about 500, they may not have had 300 operational planes on board, while we sailed with every one of our capacity of 617.

Second, superior radar and anti-aircraft guns. The decision to ignore the advocates of specialized anti-submarine destroyers has been fully vindicated by the sinkings of so many enemy subs by regular fleet DDs and aircraft.

Most important, Third, superior planes and pilots. Commander John Waldron’s Torpedo 8 (USS Hornet)sank two carriers themselves and shared the remaining two with other squadrons. Low, steady, and unstoppable, the Devastator is what it is called. Waldron lost only one plane and one man, an ensign who was seen in his life raft but not found after the battle. The enemy 'Zero' is also what it is called--good at running away but not dangerous.

The battle exposed only one weakness on our side--Admiral Leahy’s indecisiveness, which allowed the enemy enough initiative to strike us several times, albeit to little effect; he will not command at sea again. A second weakness identified in planning for our next operations is the short endurance of the two oldest CVs, Lexington and Saratoga. Nimitz wants three replacements beyond the three already on the slips. He will get two—after the current class is complete.

Landings in the Marshalls will begin as soon as the fleet finishes re-fueling, re-arming, and some minor maintenance.
 
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Full Steam Ahead

November 4, 1942.

The second great battle of war was even more decisive than the first. In September our forces captured the key ports in the Marshalls, then moved forward to Guam before and captured their main overseas base, at an atoll in the Carolines. Forced into battle, the enemy Second Fleet was quickly defeated and the survivors gradually hunted down among the islands and rain clouds over three weeks. Our victory in the Battle of the Carolines was even more decisive than that of Central Pacific three months before. The whole enemy force--both remaining operational carriers, five battleships, about fifteen cruisers, and twenty-odd destroyers were sunk or forced to scuttle. We lost only nine destroyers; some more, and five larger ships—South Dakota, Lexington, Yorktown, Wasp, and Minneapolis—will need repair.

This leaves us just three carriers fit for duty immediately, although by January we will back up to 7 and sooner after 11. The I.J.N. can now be ignored, being reduced to Mutsu, an interwar battleship, two large and two small carriers, none of them operational, some cruisers of various sizes, and one or two submarines still skulking somewhere. As planned, we will next seize the remaining Japanese ocean bases, then relieve Manila, and then go to Tokyo.

If the Navy’s war has been a large live-fire exercise, the Army’s has been a smaller one. In three fights they have suffered just 1,300 battle casualties, including just 196 dead. (The lost destroyers took down more men than that, but as Navy dispositions are secret those numbers do not have to be released to the public.)

With the strikes well over and wide enthusiasm for patriotic policy and a string of victories, the campaign went well though it cost just as much as Presidential election two years ago. The coalition now has a 66-30 majority in the Senate. We gained nine to 37 while the D.D.’s, having backed the right horse this time, held 29 of their 30. Our gains came mainly at the expense of the Dixiecrats, who lost five to 14, and the P.D.’s, who had to defend five seats open due to convictions and lost three to 16.

We hold the House too by 264-171 after we gained 47 to 209 and the D.D.’s five to 55; repeating—and extending—the practice of allocating border state districts between us and them paid off excellently. The Dixiecrats lost more than half their Congressmen to 43, while the P.D.’s were down six to 129. We even polled more than half of the individual ballots nationwide, offering the prospect of winning a majority in our own right next time. (RL 1942 Republican seats; House vote share 50.6%).

For the first time we have a relatively free hand, and can restore the sensible policies of McKinley’s time or at least Coolidge’s. Anti-trust will go and freedom of contract return, and the odious ’39 States’ Rights Law can finally go from limbo to final burial. East Tennessee and Northern Alabama will come off of the ‘do not fund’ list.

Intelligence efforts in Mexico show promise so far, but 30 divisions stand ready if that does not work out. A number of business have pointed out that Guatemala too—although nominally a Pact member—remains very inefficiently run compared with the great strides in the Conservatorships.

The world’s various other wars go interminably on. The fronts in Russia and China move back and forth with little net movement. The Italians are losing Syria not to the British but to the Russians. They have also nearly eliminated the bridgehead in Libya, recovered Somaliland, and are advancing into East Africa and even the Belgian Congo.

The Germans have sunk three American merchant ships on the trans-Atlantic route. At this stage it is an annoyance, but not one that can be tolerated indefinitely.

Recent Senate and House majorities (bold holds Presidency):
1921-31 R R (five consecutive terms)
1931-33 R (tie) D/R (changed after opening of Congress)
1933-35 D D
1935-37 D D
1937-39 D D
1939-41 R+SRD (tie) R+SRD
1941-43 R+DD SRD+PD
1943-45 R+DD R+DD
 
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The Sky’s the Limit

January 1, 1943.

The economy is humming along although investment had to be reduced from last year because of the high cost of the war. R.F.C.’s growing assets have drawn criticism from opposition ‘experts’ who claim that revenue projections for repaying the bonds are too rosy and that it will end like the infamous Blue Sky Corporation in the Crash.

There is, however, a problem. During the lame duck session an odd bedfellows coalition from all parties insisted on a new ‘atomic energy’ factory which they say will produce power more cheaply than coal. That may be, but what got it through was a wild speculation that it might also yield a weapon. We don’t need that; heavy artillery was, is, and will remain the Queen of Battle. This one white elephant will take federal and R.F.C. expenditures from some 280% of the 1936 level to 360%, which cannot be funded by the general public as heretofore. Entrepreneurs will have to change from putting R.F.C. funds to productive use to lending to it themselves. A special class of bonds tied to the energy project has been created; these will carry high coupons in recognition of the risks.

In the Pacific we have taken six more islands; Army battle deaths remain very low at 614. In December we met the Japanese Third Fleet in the Marianas, which once again entailed tedious hunting among islands, small ports, and rain. We sank only Haruna, a large cruiser, before the rest, though badly battered, slipped away. In lesser engagements we finished off the rest of their submarines and some small warships. Our next task is to clean up the minor Philippine and Dutch islands that the enemy holds, then Taiwan and Japan itself.

The Germans are advancing again; they seem to have broken the Don Basin redoubt that held them up for so long. The Italians continue to advance in Africa, though the fighting in Libya continues and they have lost Syria to the Russians. China remains China.

Sliders (Social Conservative):
Hawk_lobby: 9 (1943 slider +1).

1942 infrastructure appropriations:
South 32: Tulsa 8, Monroe 6, Lubbock, Birmingham, Chattanooga, Louisville 4 each, Houston 2 (four year total 108/89).
Other U.S. 48: Pittsburgh 9, Chicago, Philadelphia, Cleveland, Detroit, Los Angeles 6 each, Atlantic City 4, Cincinnati 3, Harrisburg 2 (197/171).
Conservatorships 22: Havana, Managua 4 each, Santo Domingo, Port-au-Prince, Tegucigalpa, San Jose 3 each, San Salvador 2 (66/46).
Grand totals: 371/306.

Industry 6: New York, Newark, Chicago 2 each (12/5).

Synthetics 0 (10/6).
 
So Far from God

April 22, 1943.

This ‘energy plant’ has been ruinously expensive and has crowded out more productive investment. In parts of New Jersey, Pennsylvania, Ohio, Louisiana, and Texas existing projects have run their course but it has not been possible to fund extensions. Maybe in the second half of the year. We have at least been able to keep the Caribbean humming.

Intelligence operations in Mexico proceeded slowly. Many in business and in the Army backed us and Astor organized two serious moves against the regime, but radical forces beat back both. On February 16 we re-assigned the problem to Hodges.

The campaign presented no real difficulties besides terrain; the only officers to distinguish themselves were Eaker (again) and Henry Arnold [+1 each]. We will have to give those two their big bombers—when finances allow. There were also attempts to foment disorder at home, but as the butcher’s bill was light—just 539 battle dead—these did not amount to much. Today the last Mexican resisters crossed the border into Guatemala and surrendered. We discovered several dozen American traitors among them; they will be hanged.

Of course, the reactionary regime in Guatemala itself will not be allowed to stand; Hodges and Eisenhower with about 20 divisions are re-deploying to address that problem, while perhaps a dozen others will be sent West.

In the Pacific the flyboys had a frustrating Spring, shuttling around between the Carolines, the Marianas, and the Philippines. Port strikes especially were ineffective. Torpedoes are useless in shallow water and dive bomber pilots become disoriented while upside down, sometimes turning toward land instead of open water. The pilots required frequent rest, often leaving just three or four carriers available. At a point when none were, North Carolina, Washington, South Dakota, Indiana, and the new super-battleship Massachusetts hunted down the enemy Third Fleet between Borneo and Celebes.

Eventually, after several landings to flush out refugee ships, the carriers wiped out the First and Second Fleets. Then four ad hoc surface forces, one based on Massachusetts and Honolulu, one on three heavy cruisers, another on the old light cruisers, and still another of all destroyers hunted down the remnants from the Banda Sea to the Bonins to Hainan. Naval Intelligence reports that the I.J.N. no longer exists.

Tomorrow we will occupy Tokyo, and then the rest of the ‘home islands.’ It is not clear whether we will face any full-strength infantry divisions. (The Assistance Forces will obviously have to be expanded.) [One Q of this AAR has been answered: if you don’t let the U.S. prepare for Japan before 1940, and then not seriously, and keep most of the Army in Latin America, and divert lots of effort to marginally useful infrastructure and useless synthetics, can Japan provide a challenge? No—at least not while at war with Russia. So far we have seen only four divisions besides gars—two were easily killed OOS in New Guinea and the others sunk trying escape from Tinian.]

We shall have to capture Malaya and its resources before the Siamese surrender it back to the British.

The Army and Navy continue to demand more toys for their excellent adventure, but we have held firm. Army equipment upgrades. ‘Army Groups,’ Marine divisions, ‘mechanized’ forces, ocean patrol planes, and additional capital ships have all been denied or postponed, while last year’s emergency destroyer program has been stopped. We did consent to eight new air groups, split between long range pursuits and bombers.

The Italian/Russian contest in Syria continues indecisive, as does that in Libya. In Africa the Italians have taken much of Congo and nearly all of East Africa; Northern Rhodesia may be next. In Western China the Nationalists are advancing but it impossible to say who has the upper hand in the Northeast.

The important foreign news is from Russia where the Germans are on the move again, well across the Volga everywhere and rapidly overrunning the Caucasus. Between their military successes and unwillingess to allow normal commerce in Western Europe or the Atlantic, it is beginning to seem that they may one day become as dangerous as the Bolsheviks to world peace and free trade.
 
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Help Wanted: Executive Secretary

June 1, 1943.

“That son of a bitch! I have not introduced myself into this narrative before now, but that muck-raker has left me no choice. That dumb committee was only supposed to help us out when we needed to deflect complaints from the brass that they needed this or that expensive wonder-thing. Instead the bastard has used it to go after ‘profiteering!’

Worse, he’s come after me—me!—on Haitian sugar, asking why the prices the Army pays me for syrup and molasses used in Army rations are more than double the grocery store prices, and more than the Louisiana growers asked—as if the special quality and delivery schedule requirements for the military were of no importance. I have never been insulted like this!

His term does not end until 1946, so Campaigns, Inc. can’t help right away. Fortunately he has gone after several of us and even his own party leader, so it will be possible do something before that report of his gets far. If we have to there are people we can use to make things disappear.

Ah—Mary, don’t type that up. In fact, give me your pad.”
 
U.S. Senator Resigns

June 23, 1943.

Washington, D.C., Wednesday—Associated Press—Yesterday the U.S. Senate voted 76-19 to censure Senator Harry Truman of Missouri for diversion of political funds to personal use during his 1940 re-election campaign. With most of his own party deserting Senator Truman, only five Defense Democrats and the fourteen Progressives voted in his defense. Senator Truman has resigned his seat.

Truman was the chairman of the Committee on Conduct of the War, formed this past January to investigate the effectiveness of military leadership and defense training and equipment programs. Last month he announced the results of an inquiry into bribery and over-charging in defense contacts, accusing dozens of prominent businessmen and Republican and Defense Democrats political figures, including Vice President Barkley, Governors Dewey of New York, Martin of Pennsylvania, and Bricker of Ohio, and members of Congress. The full Committee did not vote on the report and, it appears, will not.

Yesterday both houses passed a War Emergency Act which stiffens civil penalties for slanders or libels ‘tending to undermine the war effort’ and adds criminal penalties as well.

Congress also authorized R.F.C. to expand its programs to support infrastructure and industrial projects in the forty-eight states and in the Conservatorships.

Today Siam surrendered after several U.S. Army divisions occupied the capital and several provincial cities. The Kingdom will retain its independence, but cedes former British Malaya and Singapore to the United States and returns Burma to India. Also today, the 105 U.S. nationals captured when the last Guatemala rebels surrendered two weeks ago and convicted of treason by military tribunal on Monday were executed in Guatemala City. Field Marshal Courtney Hodges promulgated the Act of Conservatorship for Guatemala and will serve as Reconstruction Administer in addition to his Army duties and those as Finance Minister of Colombia, Ecuador, and Argentina.