Manchukuo was now far too important to the economy of Japan for them to surrender it readily.
The large island of Taiwan, had been ceded by China to Japan in 1895 following China’s defeat in the first Sino-Japanese war. Japanese immigrants accounted for roughly ten percent of the island’s current population.
The talks were now deadlocked over these two territories.
It was combined pressure from the United States and the European powers that finally engineered an acceptable compromise, the main points of which were:
All Japanese forces in China would be withdrawn by no later than the end of November. Scattered units of troops throughout the country meant that the logistics of withdrawal were not straightforward, hence the reason for the delay.
Taiwan would be returned to China by Japan, in return for a treaty limiting the number of Chinese military on the island to twenty thousand defensive personnel. A period of one year would be required for an orderly withdrawal of all Japanese civilians from the island.
China would recognise the state of Manchukuo in return for a non-aggression treaty limiting the Japanese military there, to two hundred thousand, the bulk of which had to be stationed in the north of the state, i.e. on the border with the Soviet Union. Generalissimo Chiang was not entirely unhappy with the thought of a buffer state between China and the Soviet Union.
Japan and China would enter into a mutual defence pact. No third country was mentioned here, but there was no doubt in anybody’s mind that this was specifically aimed at deterring aggression by their common northern neighbour, the Soviet Union.
Finally, Japan would pay war reparations to China. The amount agreed was not excessive and could be paid in the form of deliveries of raw materials and farm produce. This would help China pay her debts accumulated as a result of the war.
The actual peace treaty would be signed one week after all Japanese troops had vacated Chinese territory.
The United States had already given an undertaking not to impose sanctions of any kind on any country provided the peace treaty was respected by the signatories.
Presidents and Prime Ministers around the world breathed a collective sigh of relief. The danger of a major war in the far east had ended.
Von Brauchitsch addressed the council. “Gentlemen we have successfully accomplished everything we set out to do. We now have a strong anti-communist ally in China. We even managed to engineer an anti-communist alliance between the far east’s two strongest powers. We know that there is currently some Japanese feeling of antipathy towards Germany because of the part we played in re-arming and training the Chinese, but at least they are still talking to us. I believe relations with Japan will quickly normalise now that the extreme militarist elements have lost their influence. All in all, I think we can be proud of our achievements.”
The Foreign Affairs Minister added to this. “This is a perfect example of maximum effect with minimum cost and effort. One year ago China was in chaos. Today, thanks to our timely assistance they are a great nation. And our friend.”
Schacht, the Economics minister also had something to say. “I only hope they now manage their economy sensibly. It is vast country with diverse factions. I wish them great luck.”
The governing Council were immensely satisfied with themselves.
It was Winston Churchill’s last cabinet meeting of 1941. He had the feeling that the National Government originally formed in 1931 to counter the depression, and later extended to fight the European war, would not last much longer. The politicians in the individual political parties were now seeking power for themselves. Churchill was sad but at the same time content with a job well done.
In the year and a half since the end of the war the British economy had held up well. The world was a safer place. Japan’s aggression had been halted, and, most unexpected, they were now in an anti-communist alliance of sorts, with China.
Churchill offered his silent thanks to Germany for having the fortitude to take on the task of sorting out the China/Japan mess.
His last act this year would be to sign the detailed document that was Britain’s application to join the European Alliance. He had to admit the Germans had done a magnificent job when they put the alliance together. They had rehabilitated all the countries they had conquered in 1939 and 1940. Even that difficult case, France, now seemed to be able to govern itself effectively.
That rogue in Spain, General Franco, had reluctantly ratified the centuries old British ownership of the Rock of Gibraltar, and introduced a much enlightened form of government in his country. All at the insistence of the Germans as a condition of joining the European Alliance. The Alliance then accepted his country as a new member. Portugal had joined at the same time. The European Alliance now stretched from Norway in the north, to Spain in the south.
The demented — in Churchill’s opinion — dictator in Rome, continued to sulk at the exclusion of Italy. Opposition to his oppressive rule seemed to be building. Churchill expected Mussolini to be removed violently before very much longer. And justly so!
Germany had literally banged the heads together of the leaders of Hungary, Romania and Bulgaria. Each was wary of the Soviet Union and wanted to join the Alliance, but they had historical territorial claims on each other that created a lot of animosity and endless quarrelling between themselves. Churchill had heard that the German Foreign Minister, von Altendorf, had called them together and read the riot act to them. He told them to put their house in order or be permanently excluded from the Alliance. What is more, if this happened, he would formally advise the Soviet Union that their three countries were no longer regarded as belonging to the German sphere of influence. An open invitation to Stalin to meddle in their affairs! That concentrated their attention wonderfully!
‘I would love to have been a fly on the wall at that meeting’, He gleefully thought.
Von Altendorf’s tactics had worked. The three central European countries quickly resolved their main differences and re-distributed some land between themselves. Three months later they were formally admitted into the European Alliance.
Greece, scenting free security, which meant they could reduce spending their own money on their armed forces, had applied for membership. It had been vetoed by Germany whose view was that Greece, as it always had been, was politically and economically a mess. The old man chuckled. He loved Greece and its history, but their corrupt officials and politicians….
The Articles of Peace between China and Japan were to be signed today on board the American battleship, USS Arizona, which had been provided by their hosts as neutral ground. Around the harbour were gathered great warships from the nations with an interest in the peace process.
Germany was represented by their newly commissioned aircraft carrier, Graf Zeppelin. Great Britain had sent the well-known battleship, Hood. France’s battleship Richelieu, was there, and the Dutch were represented by the cruiser, Tromp.
China’s new battlecruiser, formerly the German battlecruiser, Scharnhorst, and now renamed Nanking, had a prominent berth near the Arizona.
Towering over all of them was Japan’s pride, the mighty Yamato, the biggest battleship ever built. It was armed with nine massive eighteen inch guns. A truly fearsome beast.
On Yamato’s bridge Admiral Yamamoto gazed at the naval might around him. He was relieved that Japan had pulled back from war. Nobody in their right mind would willingly go to war against the combined fleets of the western nations. In the case of the United States it would have awoken a sleeping giant!