Ch.154The Great Depression (4)

# Meanwhile in Russia

Meanwhile, Russia approached Hispano-Suiza directly at the national level, beyond just approaching the British government or Churchill.

The reason was clear.

“You want to establish an Hispano-Russia subsidiary in Russia?”

They didn’t mince words—they were directly asking for a subsidiary to be established.

The one who received Russia’s proposal was Mark Birkigt, co-founder of Hispano-Suiza along with Castro de la Cuadra.

Mark Birkigt was the very person who had previously supported Russia’s automotive-related requests.

Back then, he had felt some sympathy because Russia’s automotive business had failed, and he thought Hispano-Suiza could influence the United States of Greater Russia’s automobile industry.

But he never expected such a direct request to establish a subsidiary.

“Yes. We are in particular need of Hispano-Suiza’s assistance.”

“I’m aware that Russia is passionate about developing automobiles and aircraft. But we’ve already achieved great success in France. Our French corporation has even become independent. I’m not sure if establishing a subsidiary in Russia is necessary…”

“Even if France is at risk of turning communist?”

“!!”

Hispano-Suiza certainly wasn’t fond of communism.

That aside, while he knew the Commune had been acting up recently, the government hadn’t been overthrown yet, so why move to Russia?

There really wasn’t a reason to establish in Russia for something that wasn’t even certain yet.

“We are preparing for war. Therefore, we particularly need Hispano-Suiza’s help.”

Russia was preparing for war as if being chased by something.

How long had it been since they started producing cars, and now this?

A country that remained intact during the Great Depression alongside communist nations.

And communist countries were enemies of the Russian system.

“I’ve heard that Germany has been talking about going to war lately. Is that why?”

“Yes. Additionally, with the Commune growing in France, it would be extremely inconvenient for us if Hispano-Suiza were to fall into the hands of a communist France.”

“Hmm.”

They had built factories in Paris and Geneva, but establishing a company seemed a bit much.

Come to think of it, while France suffered less from the Great Depression than other countries, the Commune was gaining momentum there. It wasn’t impossible that the regime might be overthrown. On the other hand, he had heard that Russia had barely been affected by the Great Depression.

Mark Birkigt punched numbers into his calculator.

If France turned communist, Spain would likely be in danger too. In that case, foreign help would be needed. Russian assistance would be welcome.

It would be good to earn Russia’s favor, and at the same time, it would be beneficial to develop weapons in Russia and officially enter the weapons sector.

Then, in France, they could continue producing only automobiles as before.

Since they were already producing aircraft engines and weapons, there was nothing stopping them from deliberately targeting weapons development.

Moreover, the Russian Tsarina reportedly wielded tremendous authority.

Rather than forcing people to buy, she simply advertised lightly herself, and citizens would drool with desire to purchase the cars.

To receive the Tsar’s support?

It would be no challenge for Hispano-Suiza to achieve massive success in Russia.

Fundamentally, with the Great Depression making things difficult, receiving investment would make things much easier for Hispano-Suiza.

“Our Tsar will also provide support.”

Well, that settles it then.

They couldn’t produce weapons in France, which might turn communist.

Birkigt smiled with satisfaction.

“I understand. Let me review this positively for now.”

Shortly after, Hispano-Suiza established Hispano-Russia, a subsidiary in Russia for developing weapons including aircraft engines, while continuing to produce automobiles in France.

# Japan

While every country was struggling with the aftermath of the Great Depression, Japan was no exception.

During the Great War, when European countries were at each other’s throats, Japan had seized German concessions and colonies in Asia, away from the main battlefields.

They sold weapons to Europe and almost monopolized trade in China thanks to Russian concessions.

During this period, wealthy individuals called “narikin” emerged, and Japan enjoyed prosperity.

Although there was a temporary recession due to trade wars between European countries, the economy was still growing.

Later, the Great Kanto Earthquake triggered a disaster-related depression, and after wavering between suspending or continuing the gold standard, they eventually returned to it.

The result was a financial panic that created a perfect storm with the Great Depression, hitting Japan like a tsunami.

“Haha, we’re screwed.”

Japan’s economy was reeling from the one-punch knockout of the Great Depression.

For Japan, which had been growing through export-driven expansion, this was a shocking development.

With major export destinations like the United States and Europe also struggling, demand plummeted. Naturally, Japanese exports piled up in inventory while export values decreased daily, falling by half by the early 1930s.

Rural households also became poorer as silk exports, their main source of income, decreased.

China had been a lucrative market for weapons sales, but under federalism, warlords universally avoided dealings with Japan for fear of becoming Japanese puppets.

Unlike China, which was accustomed to devastation from being beaten by Western powers, the impact on Japan—which had been on a winning streak—was severe.

With foreign currency income drastically reduced, raw material import costs collapsed as well.

As the domestic economy plummeted, companies went bankrupt one after another.

In this situation, political instability followed.

Political instability and economic depression—even in Japan, such conditions inevitably give rise to something new.

“At this rate, we might turn red too!”

“Imperial subjects turning red? Suppress all these rioters!”

Communists were gradually becoming visible within Japan.

With communist Germany weathering the Great Depression successfully, more imperial subjects were inclined to turn red.

Naturally, Japan responded with typical Japanese suppression.

After all, how could the Emperor’s subjects possibly be communists?

“This cannot continue. Communism is beginning to spread in our empire.”

“Let’s follow Russia’s method.”

Russia’s method was to openly and thoroughly kill communists.

But this was only possible because the White Army had unified present-day Russia.

It worked because the White Army soldiers were embittered from fighting the Bolshevik revolution, and public sentiment had turned against the Bolsheviks to the point where ordinary Russians didn’t care whether they lived or died.

However…

“His Majesty the Emperor would never abandon his subjects!”

“The government must step down!”

Things became more complicated as they shot and suppressed citizens who were turning red.

The situation escalated because they were doing to their own country what they normally did in colonies.

The military began forming factions internally, advocating for returning all power to the Emperor.

Eventually, the Japanese government came up with one solution.

“This won’t do. Let’s try this instead.”

As a solution to the Great Depression, they decided to exploit their colonies.

This would temporarily pacify the military and satisfy the imperial subjects.

They could deal with the Great Depression gradually afterward.

They first looked at Korea, which they had “legally annexed through treaty,” but apart from rice, there wasn’t much to exploit there unless they were conscripting Koreans for future war with China. Taiwan had slightly more resources, but not enough to make a significant difference.

Eventually, they decided to exploit Southern Manchuria, where Renya Mutaguchi was governor-general, to extract whatever they could. This highly imperialistic approach was enough to strengthen the military’s position, even in a situation where maintaining the status quo was difficult.

Additionally, China—though under federalism—had adopted the silver standard and hadn’t yet felt much impact from the Depression, making it an object of Japanese resentment.

Of course, Japan also despised communists, as would later be reflected in the “Anastasia Declaration” speech about the Great Depression, which blamed communists. But when you’re hurting and your neighbor seems fine, wouldn’t you feel envious?

Russia was also such a neighbor, but they were in a different league and too strong for Japan to provoke.

Anger management issues naturally resolve themselves in the presence of stronger powers.

At this point, Japan hadn’t yet gone berserk enough to advance northward and fight millions of Russian troops—that would clearly bring more losses than gains and victory wasn’t guaranteed.

So what about China?

China, which appeared relatively intact on the surface, seemed to be taunting Japan, and the Japanese military burned with enthusiasm for expansion into China.

“Let’s consume China. Let’s advance into China and solve this Great Depression!”

“We must suck the backbone of that vast continent to survive!”

The self-proclaimed imperial subjects, now impoverished, also supported the military, and the Great Depression made a significant contribution to militaristic regimes taking control of Japan.

# Beria’s Mission

Beria felt like his head was about to explode.

His recently befriended friend, Frank Whittle.

This former Royal Air Force member was an extremely noisy British friend.

“Mr. Beria, about engines…”

“Ah, I see, yes.”

But despite being noisy, he couldn’t be ignored.

Not only was it his Tsarina’s order, but Whittle had been court-martialed and was now cut loose, focusing solely on engine research.

After spending so much time together, Beria could confidently say he had become an expert on engines himself.

He probably would have researched jet engines on his own even without Whittle’s input.

“Are you alright, though? After what happened at the court-martial.”

In actual history, Whittle nearly faced court-martial for low-flying and aerobatics that caused public complaints. In this world line, however, he was court-martialed for reckless flying, found guilty, and dismissed, leaving him to focus solely on engine research.

But Frank Whittle didn’t mind. He wasn’t even slightly upset.

After all, he could now devote more energy to engine research.

Moreover, a suspiciously wealthy Russian was providing all sorts of support for him.

“It’s disappointing, but it’s better to focus on engine research.”

Though smiling bitterly, Whittle researched diligently.

‘Is it about time?’

He had built enough rapport that Whittle shared all his research, and he was focused on his work.

From Whittle’s perspective, going to Russia directly would be impossible as it would require identity laundering.

“I suppose it can’t be helped. Hmm. Then, may I take your materials?”

“To Russia? I know you’re Russian, Mr. Beria, but are you in a high position?”

“The person above me is in a high position. I mentioned you to them, and they were pleased.”

“Hmm. I’d be happy for my work to be used anywhere, but you seem to understand it well already, don’t you?”

Frank Whittle knew that Beria had studied a lot from Whittle’s research papers and materials.

He knew it was for Russia’s benefit, but Russia wasn’t an enemy, and Beria had supported him.

“Oh, really? Is that alright? We’ve been focusing on engine development in our country recently.”

“I’ve received a lot of help from you, Mr. Beria. Half of my research could be attributed to you.”

Yes. If he said so himself, that was good enough.

Beria inwardly rejoiced as he shook Frank Whittle’s hand.

“Thank you. I’ll send your materials to that person first.”

Isn’t this enough?

Beria decided to send the materials Whittle had handed over to Russia first.

Come to think of it, the Tsarina was a person who made prophecies.

So she must have known about Trotsky and ensured the civil war ended in White Russia’s victory.

If so, she must also know that Frank Whittle cannot go to Russia.

In other words, this mission was a test.

To directly obtain Frank Whittle’s research materials. To learn about them.

That’s why he had worked hard to befriend Frank Whittle and learn from him.

Beria’s mouth corners rose to his ears.

This should be enough for the still-beautiful Tsarina to favor him.

# The Great Depression Continues

The Great Depression continued to damage countries around the world.

Information coming from Japan indicated that exactly what had happened in Imperial Russia was happening there.

They were suppressing those showing signs of turning red with guns.

They were copying what they had learned from somewhere else.

Yes, the mass execution of Bolsheviks in Russia. They were imitating that.

Are they fools? That was only possible in a country like Russia.

It was possible because public sentiment had turned against the Bolsheviks, and the White Army’s hatred for the Bolsheviks had grown.

Japan’s island geography and communist Germany’s preoccupation with its own affairs, making it unable to foment communist revolution in Japan, seemed to be working in Japan’s favor.

“Asians are truly barbaric. Killing their own citizens, not just colonized people.”

Maria assessed Japan in this way.

Well, Imperial Russia wasn’t much different, honestly.

Maria probably doesn’t remember well because she was young then. Well, it’s fine now since Russia is the United States of Greater Russia.

“Well, that’s the kind of country it is. They’re the kind that starts wars without declarations, like the Russo-Japanese War.”

“Amid all this, some communists are inciting people by asking if the government is actually Korea’s government, claiming Japan is developing its colony Korea.”

“Development, huh? That’s all for their advance into China.”

They’re using the Korean peninsula and extending to Southern Manchuria as a forward base for advancing into China.

“When do you think Japan will invade China?”

“Probably before 1940?”

I’m honestly not sure about the Second Sino-Japanese War.

The problem is that history has changed so much. I do know for certain that Japan has its eyes on China, but when will they make their move?