The Spanish invasion of Brazil rocks the capitals of latin america. After seeing how easily spanish ground and sea units defeated one of the most powerful nations in south america, the different countries of the new world put aside their differences, and start banding together. After all of the diplomatic talk was over, the nations of Latin america were now arranged into 3 different military alliances.
First, the Ascunsion pact. Signed in Ascunsion, the capital of Paraguay, it is made up of 4 nations. Leading the alliance is Argentina, under the rule of Agustin P Justo. Next is Chile, as the second most powerful of the alliance, and finally followed by Paraguay and little Uruguay. This alliance is militarily the most powerful, especially at sea, sporting a combined 3 battleships (2 Argentinian 1 Chilean), and at least a dozen different types of cruisers.
Next is the Andean Tripartite. Led by Peru, and including Bolivia and Ecuador. Their main advantage is their terrain, made up of mostly mountains, and defended by a fairly robust army. Their naval forces are insignificant however.
And finally, the league of Caribbean states, led by Mexico, and incorporating all of the different nations (except Haiti) that are either located in, or have a shoreline on the Caribbean sea. They are the largest of the three alliances in terms of the number of states involved, and are boosted by both American aid and Venezuelan petroleum. However, individually, only Mexico, Columbia, and Venezuela could put up a real fight.
Spanish scientists and technicians continue their research. One of the newer things to be researched is the aircraft carrier, which Franco believes could tip the balance of power drastically on the sea.
To help brighten Spain's image abroad, Franco decides to grant partial independence to two of Portugal's former colonies.
Both Angola and Mozambique are now independent states, however, they still take their orders from Madrid, and are ruled by former Portuguese colonial governors.
Meanwhile, back in Europe events begin to unfold that could very well change the world forever.
In the Soviet Union, Joseph Stalin begins purging the red army of officers and commanders that he thinks are conspiring against him.
And in central Europe, Germany peacefully annexes Austria, inhereting its industry and armed forces. "Too bad I couldn't do that in the new world!" Franco remarks. Spain congratulates Germany on this achievement.
New Naval and Airbases are finally completed in Macapa, giving Spain the ability to strike into the Caribbean.