50. The Anglo-German Naval Treaty
"Smile for the camera~"
Click.
While tending to the domestic economy, I was also actively maneuvering in the political arena. After the Enabling Act passed, the state of national emergency effectively continued, creating a rift between Hindenburg and me. But I staged a show of reconciliation with him to reassure the public.
"So, Prime Minister Falkenrain. When will this national emergency end?"
"Just bear with us a little longer, Mr. President. I will lift the national emergency at noon on August 2, 1934."
"That's another year, then?"
"Yes, one more year—but I promise you, no longer than that."
Of course, August 2, 1934, was the day Hindenburg would die. He had no way of knowing the future, but I'd openly planted a time bomb. He would never suspect a thing.
In any case, amid the reporters snapping photos, I made a point of shaking hands with Hindenburg outside. That image made the newspapers and spread nationwide. I turned it into prime propaganda material.
Hitler was a genius at this sort of thing, I'll give him that...
The original idea, naturally, came from Hitler. Once the image of the old Junker acknowledging the young one spread through the papers, support for me solidified even further. People gazed at my rule and reminisced about the strong days of the Empire.
"Who knows? Maybe Prime Minister Falkenrain will be another Bismarck and make Germany great again."
"If only His Majesty the Kaiser would return. The nation's getting back to normal."
Of course, sadly for them, I had zero intention of handing power to Kaiser Wilhelm II—not even a nanometer's worth. I wasn't loyal to the Kaiser. The Kaiser wasn't the state. The state was Germany. I was loyal to Germany. I wasn't Bismarck—I was Lucas von Falkenrain.
The economy was rapidly normalizing, the nation was regaining its vitality, and with the party system dismantled, we entered the most politically stable era in history. But behind it all, debt in the form of promissory notes was piling up. This was all just a fleeting illusion propped up by those notes.
December 1933, winter. I flew to Britain myself to meet Prime Minister Ramsay MacDonald. With domestic politics and the economy stabilized, it was time for diplomacy.
At this time, heads of state generally traveled abroad by ship. Airplanes were seen as less safe. But I took a plane and slipped into Britain quietly, without even tipping off the newspapers.
Britain welcomed me more warmly than expected.
"If it isn't Germany's savior, Prime Minister Falkenrain."
"Prime Minister MacDonald. For you to come greet me personally—I'm touched."
"Hahaha. When you consider the friendship between our nations, it's only right. The Great War was regrettable, but now we're comrades looking to the same future, aren't we?"
He had a way with words. Germany and Britain had never been comrades, not since the days of Napoleon.
"By the way, Prime Minister Falkenrain. Your English is so natural, I haven't even had a chance to ask—when did you learn it? Hardly a trace of that distinctive German accent."
"It's part of a Junker's education. English alone lets you communicate with Americans and Indians alike—very convenient."
"Well now... As a Briton, I'm embarrassed. Thank you for such high praise of our language. This way, Prime Minister."
MacDonald said this as he led me to the car waiting at the airport. My entourage would handle formalities separately and follow slowly. That was day one in Britain.
From day two, we dove into serious talks. Since I'd come all this way, there had to be results.
"The naval gap between Britain and Germany is already as wide as it can be. I'd like to discuss easing the naval restrictions stipulated in the Versailles Treaty."
"Any basis for that?"
"Germany's faithful adherence to the Versailles Treaty and our shared front against Soviet Russia—the Red Napoleon. Britain and Germany are no longer enemies, Prime Minister MacDonald. You know well there are no eternal friends or eternal enemies in international affairs, even if we were foes in the last Great War."
"That's true enough."
"It's like the Napoleonic era. Prussia and Britain were allies against Napoleon then. Shouldn't we stand together now against the red plague infecting all of Europe?"
"There's logic in that. But we can't simply erase the loser's obligations without compensation."
"We'll arrange imports of British steel and rubber. Will that suffice?"
"More than enough."
All MacDonald wanted was a pretext. He couldn't lift naval restrictions without cause—he needed some crumb to justify it. Then he could spin it for the public. That's politics. Even if you want something, without a justification, you can't act—not with the whole nation watching.
"Let's discuss the specifics."
And so, we made solid progress on naval restrictions. But on economic cooperation or security alliances, there was no headway. Especially when I pushed joint vigilance against France, MacDonald drew a clear line.
"Even if France is communizing internally, it's not for Britain or Germany to interfere right now. I know you Germans are deeply wary of communism, but Britain will remain cautious on this."
"Aren't you afraid of communism?"
"Of course we are. Then why is Germany imposing trade sanctions on Poland? We should be uniting against communism, not bickering. Doesn't add up, does it?"
"It seems you misunderstand the Polish situation, Prime Minister."
"Spare me the lip service. That's how it is. Even with communism rising, Germany and Poland are at odds—interests come before anti-communism. We have no intention of escalating conflicts with France further."
"Understood."
That was the tone. Still, the trip yielded results. Several Versailles restrictions Britain had imposed on Germany were lifted—most notably, drastic easing of armaments reductions and naval power limits.
Late 1933: The "Anglo-German Naval Agreement." To distinguish it from the later London Naval Disarmament Treaty, it would be called the Anglo-German Naval Treaty.
The key provision: Germany could increase its capital ships to 35% of Britain's total capital ship tonnage. Naval limits were essentially gone. Armaments restrictions were also greatly relaxed, and reparations to Britain were effectively ended.
That was plenty. I even signed the treaty on the spot, then returned to Germany with the news and propagandized it.
"Britain has bowed to Germany's voice! A Germany that makes Britain tremble and France seethe!"
Mixed with a healthy dose of national pride...
With capital ship limits lifted by the Anglo-German Naval Agreement, I immediately kicked off warship construction. To fund it, I issued more promissory notes. Building warships was enormously expensive—and poured that money straight into circulation.
The ports and shipyards I'd expanded in advance proved invaluable. For a brief moment, per capita income in shipyard-heavy Mecklenburg and Hanover surpassed even Brandenburg's. Shipbuilding created massive jobs.
"Let's implement the German Third Reich Five-Year Industrial Development Plan."
The "German Third Reich Five-Year Industrial Development Plan"—or simply the "Five-Year Economic Plan."
Expanding infrastructure alone wouldn't revive the economy. Money had to circulate, consumer goods had to flow. So I drafted and executed an economic growth plan.
"The harder life gets, the cheaper food must be."
Called an "industrial plan," it really encompassed the whole economy, so agriculture came first. I built chemical fertilizer plants in every city and invested in ag research. To keep food prices low, I supported food processing and factories, and launched farm machinery drives. Most farms still plowed with oxen-tethered plows, so I started tractor rental programs for them.
"Domestic production alone won't cut it."
I imported grain via trade with former foes like Yugoslavia and fascist Italy.
"But we have to protect domestic agriculture, of course."
Just enough imports. I also created the "National Food Commission." Under its lead, we ran rye bread consumption campaigns, potato drives—focusing on crops viable in poor soil. Fertile lands got high-yield wheat; marginal ones, potatoes and rye. Nationwide soil surveys restarted, with calculated chemical fertilizer allocations per field.
"Your Excellency. Food prices are stabilizing."
Production hadn't spiked yet, but it was enough to shift suppliers' mindsets. Even without more supply, the psychological effect rippled through markets. News of imports from Italy and Yugoslavia spread nationwide, driving down overall food prices.
With food prices tamed, next was real estate. I designated development zones on Berlin's outskirts and launched massive construction. Roads grew denser and more efficient. Public schools and hospitals sprang up; people built homes and moved in. The state built rental housing for workers, letting it out for a pittance.
Increase supply, but no price controls. Real estate bounces back harder the more you squeeze it. I just punished the scammers defrauding with it.
And so time flowed on—to August 2, 1934. President Hindenburg passed away.