New Chapter time...
Chapter 22 (1930-1931)
The new decade began with Germany in a bad place. The Economic Crash in America had destroyed the economy of almost every major country on earth in a global recession that was now being referred to as the Great Depression. Meanwhile the Allied nations of the Great War met in London to agree on a new Naval Treaty that would further reduce and regulate the size of their navies. Interestingly Italy did not attend this conference as their defeat by Austria-Hungary four years ago and their earlier split with the Allies left them increasingly isolated. Many wonder what the weakened Fascist State will do as Mussolini's ambitions to recreate the prestige of the old Roman Empire seem to not have been tempered by this isolation.
Meanwhile in Germany the Government was continuing to do everything they could to combat the unemployment rate that was continuing to rise dramatically. The long-term program known as the 'Battle against Unemployment' continued while several public works programs were created as well. Neither of these policies have stopped the rise in unemployment but it is early days yet.
In November the latest round of Elections in Austria-Hungary saw a Conservative Coalition gain power in Vienna. Ever since the reestablishment of the Habsburg Monarchy their government was controlled by a selection of nobles but now power has shifted to actual political parties. Germany hoped that this Conservative Coalition would seek to retain Austria-Hungary's good relations with Berlin as the powerful Dual Monarchy remains an important potential ally for Germany's ambitions to regain her old power at the expense of the Allies.
Not long after an agreement was signed in Italy between Mussolini and Pope Pius XI regarding the status of the Vatican, where the Popes had resided ever since the integration of Rome into the Kingdom of Italy in 1870. This Treaty recognised the Independence of the Vatican from the rest of Italy and also agreed that the Italian Government would compensate the Catholic Church for their annexation of the Papal States.
In the United States, a series of dust storms ravaged much of the American Midwest. These dust storms, which collectively became known as the 'Dust Bowl' occurred as a result of severe droughts in the hotter inland states and as the year ended there didn't seem to be an end to them, it is possible they will continue to rage in the Midwest for several years yet.
The year of 1931 started with a bang in Germany as another border skirmish on their western border with the Republic in the Rhineland. This two-day battle, known as the 'New Years Day Skirmish' resulted in 40 deaths for the Republicans and 24 Imperial deaths, there were also over 50 wounded on each side before the fighting ceased. Clearly the volatile Inter-German border is far from being settled. Although it is still hoped in Berlin that neither this border nor the upstart Republicans on the other side of it will still exist by the end of the decade.
Meanwhile in Italy the Fascist Government was doing its best to reverse the effects of the Great Depression and had begun implementing widespread public works programs. It wouldn't be long before these programs bore fruit as the unemployment rate in Italy dropped for the first time since the Wall Street Crash. At this rate Italy could be the first country to properly pull itself out of the Depression. Maybe Germany ought to take some lessons from the Italians as their own public works schemes had failed to reverse the still rising unemployment.
In Japan there was a Military Coup by an Ultranationalist Secret Society known as the Sakurakai who seeked to install a new Head of the Government in Tokyo. However, this coup ended in failure after the Sakurakai and their allies failed to gain enough public support to carry out their plan. Far-Right political factions continue to cause trouble in Japan in a situation that has only grown worse since the Depression started.
Back in Europe there were dramatically rising political tensions in Spain and after a landslide victory for the Republicans in a series of local elections the Spanish Monarchy was abolished and King Alfonso XIII fled into exile with the Second Spanish Republic being proclaimed not long after. Now this new Republican Government, which was led by Niceto Alcala-Zamora, has the tough job of passing the reforms demanded by the Left-leaning Republicans while also trying to pacify the Right-leaning traditionalists. It will not be an easy job and the situation is something that could potentially be exploited by Germany as well as others.
Meanwhile back East the Philippines, which had been under US control since the end of the Spanish-American War, was finally granted self-governance as the so-called Commonwealth of the Philippines. The islands remain under heavy US influence and their naval bases there will continue to allow them to project their naval power across the Pacific should they need to, which may come in handy especially as their relations with Japan have gradually worsened in recent years.
As for Japan, in Mid-September after a staged border incident the Imperial Japanese Army Invaded Manchuria, which at this point was still under the control of the Fengtian Clique. The well-trained Japanese Military faced little resistance and by the end of the year the entire region had been brought under Japanese control. Not long after the puppet state of Manchukuo was established. This aggressive action by the increasingly militant Japanese was condemned by their former allies and Japan soon withdrew from the League of Nations after protests against their conduct. This was the final break between Japan and the Allies of the Great War. Judging by the performance of the Imperial Japanese Army they could potentially become a useful ally to Germany in the future. Although there are many politicians in Berlin who remember that it was Japan who took possession of Germany's pacific colonies during the Great War and their political shift to the right is also of concern to the more traditionalist Germans.
Not long after their conquest of Manchuria the Japanese Government decided to allow Manchukuo to reform the Qing Dynasty in their territory. The former Emperor Pu Yi was soon crowned in the city of Yanji which would operate as the Qing capital for the time being. The Japanese are clearly hoping to gain the support of Chinese Monarchists as they continue to engage in skirmishes with Nationalist China on the border with Manchuria. It will be interesting to see if this strategy helps Japan to defeat the Chinese and fulfil their ambitions to reduce the once powerful Chinese to vassals of Tokyo.
As the year of 1931 came to an end, the economic situation in Germany remained dire. Although Government programs had managed to somewhat stabilise the situation it may be some time yet before a proper recovery can begin. This situation is very reminiscent of the situation after the Great War, particularly in 1923 when things got so bad the Monarchists were able to gain power. It is hoped that that particular part of history doesn't repeat as Anti-Monarchist groups within the Kaiserreich have begun to grow in strength since the Depression happened. Who knows what the next few years will bring for Germany...