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Don't know in Armageddon France never has started war right after DoWing Luxembourg. Though they'll time to time then like to start war on june 19 1938. But seems influencing them and moving some more troops to the Magginot line avoids calling the war before the 1939. Anyways don't really care how much they get their sliders moved as they will be annexed later anyway.
 
... So if you ask wether to take down Lux or not I would say go all the way when playing Arma.
Why? What's the point? What benefits do you feel that you derive from it?

Compare the "Take Luxembourg in 1936" plan to my usual "Anschluss of Everybody" plan for 1936... and the Luxembourg plan seems both inefficient, rather trivial, and basically a waste of the early game-years. The Anschluss plan is more interesting, more exciting to play, and offers far more "bangs-per-buck".
 
How true. :)

Bought Doomsday years ago, but actually started playing it only recently. (curse World of Warcraft ... :p ). Had my first successfull run as Germany this weekend (after a couple of failed attempts getting the buildup years right).

As for the status of Luxemburg. I've kept it out of the war entirely until vichy formed. In fact, I've Dow-ed Holland and Belgium separately too. First Holland, and pushed the panzers in to corner and eliminate all opposing forces. And only then, with the panzers all stacked in Rotterdam, I dow-ed Belgium to have an almost entirely clear path into the plains of north west France. Worked like a charm. By keeping Luxemburg neutral through all of this, I basically forced France to go around it to counter my invasion forces.

Although I was helped by Franco's Spain that kept a lot of French divisions busy in soiuthern France. Alas, it also pushed up the timetable of the strike in the west. Spain was losing ground, so I launched the western offensive in december 1939, before France would completely overrun it.