Military Modernization and Shifting Diplomacy
Diplomatic relations were changing by the minute. The international landscape of this world was unfolding in a completely different manner from both my second loop and the original history.
First off, Italy had crossed an irreversible river. In March 1937, Italy announced the "Romance Tripartite Non-Aggression Pact" in alliance with Romania and France. This treaty prohibited Italy, France, and Romania from waging war against each other. In essence, it was aimed squarely at Germany. With Germany as a common enemy, they had promised not to fight among themselves.
In April 1937, the "German-Austria Agreement" was signed. It stated that Germany would protect Austria against the great powers like Italy and France, guaranteeing their independence.
"This is an act tantamount to provocation! Germany must explain itself immediately!"
The Italian ambassador ranted about the agreement, but both Germany and Austria were sovereign nations with the right to form pacts as they saw fit. In other words, they could tell Italy, "What can you do about it?"
On top of that, I summoned Goebbels to explore ways to support the "Austrian Third Reich Workers' Party"—known as ADRAP—within Austria.
"Goebbels. As you know, there's an ADRAP in Austria advocating for the construction of the Third Reich, just like us. They want to unite with us to form one Third Reich, one unified national state. Shouldn't we support them?"
"A most righteous observation, my Führer. The wave cannot be stopped. If Austria's brothers wish to join us, we must be ready to aid our brethren at any time."
"I'll entrust this task to you, Goebbels. If needed, you can collaborate with experts in this field like Amann and Göring."
I decided to leave support for Austria's ADRAP in Goebbels's hands. The reason for backing political forces in Austria was simple: Anschluss.
Original-history Hitler hadn't even considered Anschluss at this point, they say. Straining relations with Italy was a risk, and he was content with just having a nation that supported Germany. But I had Anschluss in mind from the start...
"Austria is part of the German nation, tracing back to the Holy Roman Empire, isn't it? It's time for these two forcibly separated nations to become one."
I openly declared my ambitions for annexing Austria. It was time to lay the groundwork.
In May 1937, all 3,500 troops, including the volunteer air squadron still in Spain, returned to Germany. During the withdrawal, we left all outdated weapons behind in Spain. The Heinkel He 51 was a prime example.
I ordered the military to modernize the Luftwaffe as well, specifically directing them to make the Bf109—which had shone in the Spanish Civil War—the main fighter force by August 1937.
Thanks to the Great Depression's milder impact compared to original-history and second-loop Germany, and our greater economic and production capacity, I received reports that Luftwaffe modernization would be complete by June 1937. As a bonus, we donated the Heinkel fighters that the volunteer squadron had used right up to the end to the Spanish Nationalists.
"This has helped the Spanish Nationalists, and we've secured promises for German companies' involvement in their postwar reconstruction."
"Well done, Brauchitsch."
And so, the He 51 retired after its brief history. Given the era, it had been hastily mass-produced as a stopgap biplane without much scrutiny, making it unsuitable as a mainstay fighter.
We provided about 200 He 51s to the Spanish Nationalists, along with spare parts and armaments, leaving virtually none in Germany. The fewer than 200 remaining were repurposed for training.
"But we're still short. In the future, the Luftwaffe and Kriegsmarine will become more important than the army. We must redouble efforts on rearmament and modernization."
The power of air superiority is immense. Just look at the Gulf War. Iraq's hundreds of tanks were shredded by American fighters and attack aircraft, stripping their bloated army bare.
Before World War II erupts, we need at least 2,400 Bf109s and over 800 Ju 87 Stuka dive bombers. We should also prepare enough bombers to dominate British skies. Fortunately, Dr. Haber's efforts have accelerated coal liquefaction research, so we can sustain a massive air force somehow.
Beyond that, I received multiple updates on the Kriegsmarine—what was once the Imperial Navy—or visited shipyards myself.
"It's been a while, Erich Raeder. How are preparations coming?"
"Of course, my Führer. But as always, we're short on budget and resources. The New Deal and rearmament have expanded shipyards, but the skilled workforce shortage has them in an uproar."
"We'll sort that out somehow. What's the current naval status?"
"A few months ago, the Admiral Hipper-class heavy cruiser was completed. It bolsters our firepower significantly, but we still need more battleships."
"How far along is the new Bismarck-class battleship?"
"At least another year until launch."
I nodded at Erich Raeder's report. Our capital ship strength is lacking for now, inevitably. But battleship-centric doctrine had been questioned since late World War I.
The new naval trend is aircraft carriers, submarines, and screens maximizing anti-air firepower. Traditional sea powers like Britain and Japan would never accept it...
"How about the aircraft carrier construction program? If we build one, can the German Navy operate it?"
But carriers don't fall from the sky. Even starting now, launch would take at least three years—even if we cancel other projects and go all-in on carriers. So, I needed to ask the admiral directly about feasibility.
As expected, Erich Raeder shook his head.
"It's difficult, sir. We'd have to downsize it and reach agreements. What the German Navy needs is powerful battleships that can strike land. I don't grasp your intent."
"Admiral Raeder, submarines and battleships alone can't seize sea control. Ultimately, sea control is won not by gunfire, but by air superiority."
"I understand. I know that, but isn't it theoretical?"
Theory and reality differ, sure. But we can't abandon carriers. To subdue Britain and America, overwhelming naval power is essential. Overwhelming sea control without carriers? Even Japan, fueled by Yamato spirit, failed—let alone resource-poor Germany.
"We'll discuss it again later. If there are changes to the light carrier program or Plan Z, I'll summon you for talks."
"Understood, sir."
Navy and air force. Germany was currently all-in on the army, but in the future, national defense would center on navy and air power. Global hegemony is built on naval might, sustained by air power.
That said, we can't neglect the army.
Next up was the army. Franz Halder, Brauchitsch's successor, oversaw army modernization. He was exceptionally capable—far superior to Walter von Brauchitsch, especially in planning.
Lacking boldness, he was like a mild-mannered Manstein. I assigned him army modernization because I valued his World War I experience as a supply officer.
Handling paperwork, inspecting front lines, ensuring timely supplies, and building sustainable systems—that was Franz Halder's expertise.
"Chief of Staff Halder, how's it going? Current army status?"
"Rearmament is proceeding smoothly. Our military industry advances daily. With full support from Armaments Minister Albert Speer, Germany is ready for war at any moment."
"Rearmament aside, what about modernization? Panzer divisions, medium tank research?"
"Panzer divisions rely on Panzer II light tanks and motorized infantry. Army Group 1 has four distributed army-wide. Army Group 2 will get the new Panzer III D, but suspension reliability issues prevent immediate deployment."
"Which company is developing the Panzer III D?"
"Daimler-Benz."
"Krupp. Commission Krupp for medium tank design. Daimler-Benz suits light tanks better."
I shifted new tank research from Daimler-Benz to Krupp. They'd proven themselves producing war materiel, but if memory serves, they'd never fix suspension issues.
Even if produced, small size and busted suspension would make later upgrades problematic—hence why Panzer III quickly yielded to Panzer IV.
Daimler-Benz excelled at light tanks, though. Krupp for mediums, Benz for lights, Porsche for heavies—divide production lines accordingly.
"Understood, my Führer."
We'd continue Panzer III improvements, but prioritize Panzer IV over III, Tiger over IV. Faster tech advancement and stronger tanks are always better.
Thus, I accelerated military modernization, preparing for the impending World War II.