The Prague Accords
With the defeat of the Axis and Communist alliances, thoughts turned to a final restructuring of Europe. What was to become of all the lands now occupied by Czechoslovakia, France and Great Britain? To answer this question, the United Nations* convened a special session in Prague with representatives from all member countries and territories in question.
First Agreements
On the first day of the conference, Czechoslovakia made several shocking announcements. First, the occupied territories ajacent to Japan were no longer under the supervision of Czechoslovakia. Tannu Tavu had been incorporated into Russia and the state of Mongolia had been recreated as a democracy.
Second, all countries liberated by Czechoslovakia would now be able to independently determine all aspects of their countries governance, including foreign policy, and Czechoslovakian election monitors were to be replaced by an international force. The only exception to this decree was Romania, which was experiencing a resurgence of rightist elements. Third, the fate of the former Nazi territories was determined once and for all. The territory would be split three ways, with Germany getting the largest share. In addition to the area around Elbing already given, Poland would also receive Oppelin and its environs. Germany would be given the remaining corridor consisting of Stettin, Kustrin, Breslau and the surrounding areas. Czechoslovakia would keep the port of Königsberg. This agreement was arrived at to appease Polish fears of German invasion for access to East Prussia, as well as to satisfy the Czechoslovakian need for a port. Finally, and most surprising, Czechoslovakia announced the creation of a free trading block consisting of Czechoslovakia, Germany, Poland, Romania, the Baltic Republics and all former Soviet territories (Russia, Ukraine, Belarus, Armenia, Azerbaijan, Georgia, Kazackstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbeckistan, and Mongolia). Many speculated that this had been the price of complete independence from Czechoslovakian control, but it was officially declared to assist in the "rebuilding of these countries which had borne the brunt of the physical fighting."
Within a week, the fate of millions living in the French occupied territories were determined. Under pressure from Czechoslovakia and its client states for quite some time, France announced that the states of Greece, Bulgaria, Italy, Spain and Portugal were to be recreated as very liberal democracies along the line of France itself. This did not sit well with Great Britain, led by the Tory Churchill, who accused France of lackluster performance against the Soviets and of turning creating a "new red menace with outposts throughout Europe." Although the allies recognized these new governments, Britain refused to return any territory that it had occupied to them. Thus, Crete, the Azores and all other colonies of Portugal remained under British occupation for the time being. This Anglo-Franco non-cooperation returned over the matter of Spain. France wanted to create yet another liberal democracy that could be easily swayed by decisions made in Paris, yet the British again refused to turn over their area of occupation to such a state. With key areas of southern Spain thus unavailable to the new state, the entire project was shelved until further negotiations could find some sort of compromise.
Final Agreements
After the first week, there remained the sticking points of Spain, occupied by French and British forces, and the lands of Austria and Hungary, occupied by Czechoslovakia. Though the summit would end without a resolution to the Spanish question, by mid-April, 1942, a solution to the only remaining Czechoslovakian quandary was found. Since the defeat of Germany, there had been many prominent groups in Czechoslovakia and the former country of Austria advocating for a creation of a single, strong country to act as a bulwark against any future threats in the region. This had the tacit approval of the French government, which had also favored a larger Poland for the same reasons. At the Prague Summit, these vague hopes became a concrete plan and the basis of the Czechoslovakian platform for the areas of Hungary and Austria. Debate raged for months, as Britain was wary of recreating a major power, Germany balked at the lack of national self determination, and the representatives of Austria and Hungary held out hope for countries of their own. As time wore on, however, fears were allayed by the revealing of a plan for a federal state, based on the countries of Germany, Switzerland and the United States. This new country would consist of four states: the Czech Republic, Slovakia, Austria and Hungary, all with reserved powers and elected congresses. They would be united by a federal government, which would have all power over foreign and military affairs and some overlapping domestic powers, and consist of a Senate, based on equal representation among all the states and a congress which would be elected from the country as a whole. With much negotiation and reassurance, this plan won the approval of the Austrian and the Hungarian delegates and was announced on April 16th, 1942. This would be the beginning of the Federation of Central Europe as we know it today.
*The Allies had by this point begun referring to themselves as the United Nations.