July 1938-January 1939
"Wait," said MacArthur curiously, snatching the documents from his adjutant "You said it 'was pretty much all bad news': What did you mean by that?"
"Well..."said Smith, trailing off as if looking for the right words
"Sir, do you remember those Mexican military officers we gave our support to in hopes that they would topple the red government?" began Smith
"Oh, let me guess," replied MacArthur angrily "The reds caught them and finished them off, right?"
"A good number of them applied for asylum, but with the Union State and PSA in control of the border regions, they were pretty much out of luck."
"Also the Germans had been fighting Vietnamese syndicalists for months," continued Smith "However, the poor state of their economy and ongoing preparations for war with the French forced them to abandon the area."
"Dammit," snarled MacArthur "If they had just concentrated their bombing raids on their supply depots and industrial facilities, as well as sent massive troop numbers into their strongholds instead of just propping up the local colonial government and letting them do the fighting, this never would have happened."
"Also," resumed Smith "The war in Spain has ended in a decisive defeat for BOTH the legitimate government and the Carlists. Those who could went into exile in Portugal, Free France, or Germany, but our sources there tell us that the reds are eying Portugal as well. The only silver lining to the situation is that the German puppet regime of Mittleafrika and the exiled French government seized the Spanish colonies before the reds could set up puppets."
"Unbelievable," groused MacArthur "Just unbelievable! Could 1939 be a worse year on the international front?"
"Actually sir," said Smith, unsure whether or not the question was rhetorical "It could."
"Our remaining sources in red France tell us that the Internationale is preparing for war with Mittleuropa any month now. While we're confident that the Union of Britain and the Commune can be defeated by the Germans alone, if the Russians join the war on the French side, all bets are off: The German eastern flank is the weakest one."
MacArthur sighed exasperatedly:
"For now with Europe, we'll just have to keep our fingers crossed and hope for the best," he said "Smith, I want you to keep me posted on any new developments out of Europe. For the time being, we've got our own red trash to take out."
"Of course, sir," replied Smith dutifully
"Also send word to the commanders in Texas and the Southwest: Preparations for Operation Cortez are to begin immediately. Timeline for completion is by October of this year."