Counter-proposal...
Serfs would form primarily INF with some MTN and MAR units as needed. Their equipment is inferior to Citizen formations, but comparable to or better than most competing armies. Citizens form MOT, MEC, ARM, and PAR and are generally equipped and trained to a higher standard than any other troops, pound for pound, in the world. It would be assumed that the "leg" formations aside from paratroopers are going to be serf formations with Draka officers while the elite arms are all-Draka with no type overlap (no serf ARM divisons, etc.).
At game start 1936, there ought to be a nation-specific event (or an equivalent starting tech) for the Draka.
Effects would be, roughly:
+250 TC to simulate dirigibles and mass rail traffic
Manpower production modifier to be decided
Production time and cost -10%
For land units:
+2 speed for INF (to simulate the motorization of Serf formations in general)
+2 soft and +1 hard attack for INF, MOT, MEC, PAR, MTN, MAR (to simulate superior small arms and portable AT weapons)
+2 soft and +3 hard attack for ARM (to simulate superior gun size, armor, and heavy machine guns for Hond III tanks)
Increase in IC cost by 50% for MOT, MEC, ARM, and PAR (due to the mass of equipment carried by civilian formations)
Increase in 20% IC cost for INF, MTN, MAR (to simulate the additional equipment, trucks, artillery, etc. carried by Serf formations)
Increase of supply consumption for all land units of 20%
Decrease in manpower trickleback to be decided
Increase in attrition for INF, MTN, MAR of 20%
Increase in morale for all land units 15%
Increase in org for all land units 15%
Decrease in build time for land units by 20 days
Increase in toughness and defensiveness for all land units to be decided
For air units:
25% increase in IC cost for all types
Increase in air defense +3 for all types
10% decrease in build time
15% increase in supply and fuel consumption
Increase in range of 150 for INT and FTR and 300 for all other types
Increase in speed of 100 for INT and FTR and 50 for all other types
+2 air attack for INT and FTR due to larger caliber guns
+3 soft and +1 hard attack for CAS and TAC due to better handling and fire control
I'm beginning to think Japan may need something similar as well, to simulate the fact that they would be using Japanese officers to command hordes of Chinese infantry in most of their operations. Obviously, the elite formations would be all Japanese, and generally of higher quality.
I'm willing to mod this if everyone else is willing to abide by it. Thoughts? Questions? Insults?