Reaping the rewards
Germany's recent policy changes have allowed for the unrestricted production of tanks and aircraft, a development that has been met with enthusiasm across the nation, particularly among the arms dealers. The German Wehrmacht has announced an expansion to include an additional 100,000 troops, all of whom will require mechanized equipment. This substantial increase in military personnel and equipment represents a lucrative opportunity for businesses involved in the production and supply of military goods, ranging from firearms, ammunition, and artillery to vehicles, uniforms, and even the construction of barracks.
The economic implications are vast. The demand extends beyond weaponry and vehicles to include everyday necessities such as food, paper, and fuel for the expanded forces, translating into significant financial expenditures. Consequently, many of Germany's leading businessmen, sensing the opportunity, have begun positioning themselves to capitalize on this expansion. Some had the foresight to align with the Grand German Party early on, almost guaranteeing themselves a part of the forthcoming contracts. Others, less prepared, scramble to curry favor with party officials in hopes of securing a piece of the lucrative pie.
In the midst of these developments, Akado, a high-ranking official, received a visitor introduced by Dr. Einstein—Sir Merkel, a businessman specializing in cotton and its derivatives. Sir Merkel, an early supporter of Einstein's research and one of his close confidants, had approached Einstein to facilitate this meeting. Though Akado had little interest in the cotton merchant's business propositions, he saw the visit as an opportunity to mend his strained relationship with Einstein.
Einstein, for his part, was pleased with the warm reception from Akado and used the occasion to express both his appreciation and his concerns. Over lunch, they engaged in light academic discussions and reminisced about past times, which helped to restore their friendship. Einstein commended Akado's diplomatic efforts to safeguard German interests but cautioned him against the expansion of the national defense forces. Akado, in turn, assured Einstein of his ongoing efforts to rally German scientists to the cause, promising continued support for the nation's defense initiatives.
When Sir Merkel was finally admitted to Akado's office, the general was direct and to the point. "Sir Merkel, my time is tight. You'd better speak straight," Akado stated, not even bothering to look up from his paperwork. Merkel, aware of the rarity of such a meeting, chose his words carefully. He expressed his desire for an opportunity to demonstrate his loyalty, ideally through securing a service contract with the Defense Forces, citing recent financial difficulties.
"Allegiance? There are many loyal to the Grand German Party, and you are not the most prominent," Akado replied dismissively, suggesting instead that Merkel could serve as a party representative at his factory. He then advised Merkel to attend an upcoming open bidding meeting if he was interested in defense procurement.
Undeterred, Merkel declared his personal loyalty to Akado, not the party. "I am determined to be loyal to you alone! I have nothing to offer but my loyalty," he pleaded, asking for a private conversation. Sensing the seriousness of Merkel's request, Akado instructed his secretary, Anna, to bring coffee, signaling a private discussion was about to take place.
Once alone, Merkel confided that he could be a valuable servant to Akado, handling sensitive affairs discreetly and faithfully. "Even if the whole world betrays you, I will stand firm behind you," he assured. Akado, intrigued but skeptical, questioned how he could trust Merkel's promises. Merkel responded passionately, citing his father's past association with Prime Minister Bismarck and professing his belief in Akado's superior leadership.
After Anna returned with the coffee and overheard Akado directing her to escort Merkel to the logistics department for a contract involving the supply of cotton uniforms for the Defense Forces, it became clear that Akado had decided to give Merkel a chance, albeit cautiously. This decision wasn't rooted in complete trust but rather in Akado's acute need to build his own cadre of loyalists within the party and the military, recognizing the strategic advantage of having devoted allies.
Meanwhile, the broader expansion of the German Wehrmacht continued unabated, buoyed by the diplomatic successes and the promise of increased ranks and resources. The addition of ten new divisions necessitated significant procurements: hundreds of cannons and mortars for the army, and an assortment of artillery for the navy's new vessels. The Krupp factory, once idle, buzzed with activity, its workers galvanized by the surge in orders. Innovations in military equipment design, such as a new machine gun mount and a versatile military-civilian vehicle, were set into motion, showcasing German ingenuity and industrial capability.
In this atmosphere of fervent nationalism and economic revival, Akado's strategic maneuverings within the party and the military positioned him as a central figure in shaping Germany's future. His interactions with figures like Merkel and Einstein highlighted the complex interplay of personal ambition, political power, and scientific integrity that defined this pivotal period in German history.
Mercedes-Benz was instructed to commence mass production of 300 No. 3 assault guns while simultaneously accelerating the development of No. 3 tanks equipped with turrets. The National Defense Force declared that 100 of these assault guns would be reserved as stock and for spare parts. Furthermore, the skewed international public opinion regarding the "New Versailles Peace Treaty" meant that this flagrant excess in production went unchecked and unpunished by the Joint Arms Control Committee. The No. 3 assault guns, which blatantly exceeded the limitations set by the "New Versailles Peace Treaty," weighed 21 tons and were outfitted with slanted, thickened front armor and the latest short 75 mm caliber cannon, capable of supporting infantry and engaging enemy tanks.
According to the vision outlined by Akado in the "Pluto Plan," the German armored forces were to be structured around the armored division as the core unit. Each division would have two armored regiments, each consisting of two battalions, and each battalion would be equipped with four armored companies. Each company would be equipped with 21 tanks, meaning a standard armored division of the German Wehrmacht would possess 336 tanks. However, the National Defense Force currently possessed 370 No. 2 tanks (accumulated over the past year) and 41 No. 3 assault guns. These over 410 tanks were allocated to the 25th Armored Division led by Guderian and Rommel to form the 26th Cavalry Division. In terms of quantity, the two IDF tank divisions were not at full strength; for instance, Guderian's 25th Armored Division had only one regiment fully equipped with tanks, while the other regiment had just one armored training battalion. Rommel's forces faced a similar situation.
However, this situation was soon to improve significantly. Daimler-Benz was set to equip these troops with openly produced tanks. The units of these two divisions would also mostly replace their tanks with No. 3 assault guns and the forthcoming No. 3 tanks. The obsolete No. 2 tanks were simply dismantled; their 20mm caliber cannons were removed and replaced with machine guns to mimic armored vehicles, and they were reassigned to another unit, the 27th Armored Division, which the Defense Force had recently secretly established.
Consequently, the German Wehrmacht now boasted three tank divisions, all equipped with advanced combat capabilities and under Akado's control. This did not include several mechanized divisions equipped with armored vehicles and automobiles: Divisions 1, 2, 3, 4, 15, and 22. Nearly one-third of the National Defense Forces had been motorized, giving them superior overall mobility compared to their neighbors, France and Poland. Although the weight, protective capabilities, and caliber of the tank guns differed from those of France and Britain, German tanks excelled in maneuverability. Apart from some of the earliest No. 2 tanks, all German tanks were equipped with radio equipment, which significantly enhanced command and cooperation capabilities, making them far superior to French tanks in these aspects.
This revision of the new peace treaty proved even more beneficial for the German Navy. Akado had deceived the British authorities with the ambiguous "Pluto Project," resulting in the replacement of two fictitious 10,000-ton armored ships with three actual light cruisers, and launching the X general cruiser plan—a new weapon for the Navy featuring long range and high speed. The British remained oblivious to the true intentions of the German Navy. Apart from a few old battleships and cruisers left from World War I, the German Navy primarily comprised of only three ships over 10,000 tons: "Luzov," "Count Spey," and "Admiral Sher." The remainder of the newly-commissioned naval warships were all destroyers with a displacement of merely 4,000 tons. Ironically, these destroyers were all identically designed with comfortable living conditions and ample internal space, armed only with several modest 88mm caliber cannons and dozens of 37mm anti-aircraft guns. The newly equipped three X-class light cruisers were similar to these destroyers and, in the eyes of the British, appeared merely as enlarged Z1 class destroyers. The three cruisers, constructed in Kiel, utilized the same parts as the Z1 class destroyers. Most of the weapons and equipment on board were interchangeable, except that these three cruisers were equipped with three single-barrel 150 mm main guns and had many more anti-aircraft guns. Compared to British cruisers of the same era, these three vessels posed no significant threat.
However, the Germans were clever in their design. By equipping these ships with smaller caliber artillery, they saved space that was used to store additional food and fuel, allowing for longer voyages—sufficient for future operations involving larger vessels. The most dramatic change occurred within the Luftwaffe. At its peak, the Luftwaffe could deploy thousands of fighters for combat. Even after World War I, the Luftwaffe still maintained 14,000 fighters. However, post-war treaties forced Germany to dismantle its air force, leading to countless fighters being transported away or destroyed, leaving German airspace undefended. But the situation had now changed; Germany was permitted to retain its air force, albeit a modest one—it consisted of only 50 aircraft of various types. In terms of numbers, even the Chinese air force, stationed far in the East, was more formidable. Nonetheless, this marked a significant leap from having no air force at all, a development that was quite uplifting.
Under the stipulations of the "New Versailles Peace Treaty," the aircraft designated for German reconnaissance had to be bi-winged, with no restrictions on speed. Consequently, a new type of combat reconnaissance aircraft was designed by Henkel to re-arm the German air force. This aircraft, faster than the British active fighter "Bulldog," was equipped with powerful machine gun firepower. The HE-51 fighter, a pinnacle of biplane design, became the fastest fighter in Central Europe once it was deployed. The command of the Air Force was assigned to Major Kesseling, who had recently returned from the Soviet Union. The 40 combat reconnaissance aircraft were divided into two squadrons: the first combat reconnaissance squadron was led by Captain Dick, and Captain Bill Hof commanded the second Fighter Reconnaissance Squadron.
This extensive military expansion naturally stimulated the entire German industrial sector. Akado personally flew to the Ruhr area in western Germany to represent the military of the National Defense Forces in negotiations with the German heavy industry capitalist group, led by Krupp. The two parties signed the "Ruhr Agreement," which would later be known as Germany's first five-year plan. This agreement detailed the production scope and purchase volumes of weapons and equipment for each factory, and even included Germany's entire economic plan for the next five years.
The "White Pigeon Project," a sub-project of the "Pluto Project," continued to expand. Germany planned to construct an additional 400 kilometers of highways and 350 kilometers of railways to connect the entire German territory, facilitating the rapid deployment of forces across the nation. As an ambassador to Akado, Merkel visited the Soviet Union, offering low-cost assistance for the construction of 3000 kilometers of railways and 3000 kilometers of highways. These financial aids were all signed in the form of secret cooperation agreements with Stalin, the new leader of the Soviet Union who had not been in power for long, to help him stabilize his position. In return, the Soviet Union provided Germany with oil worth US $4 million and a substantial amount of food. Furthermore, the number of German soldiers secretly trained in the Soviet Union was increased to 1,000. Subsequent German aid to the Soviet Union's heavy industrial bases in Kiev and Minsk also included equipment from Germany. These valuable industrial foundations supplied the Soviet Union with steel and its derivatives, including tanks and armored vehicles.
An even more audacious plan was proposed by the Germans to Soviet leader Stalin: German engineers would assist the Soviet Union in constructing a brand-new battleship. Named the "Soviet" class by Stalin, this battleship, equipped with nine 406 mm caliber cannons, could be dubbed the supreme sea overlord. Stalin was particularly fond of this superweapon and ordered the "Baltic Shipyard" in Leningrad to immediately begin construction of the first "Soviet Union" with the assistance of German engineers, followed by the second ship at the large "Navy Shipyard" in Leningrad.
In Stalin's plan, a total of 15 Soviet-class battleships were to be built to counter the Japanese threat from the Far East and the British warships from Europe. With the aid of German engineers, Stalin believed it was entirely feasible for the Soviet Union to compete with the British Empire at sea. Thus, a peculiar scenario emerged: while the Germans were continuously building small-tonnage cruisers and destroyers as **** warships, the Soviets, with German help, were constructing super battleships with displacements exceeding 45,000 tons.
With the influx of funds from the Soviet Union, the German industry exhibited unprecedented vitality, transforming the entirety of Germany into a massive arsenal and construction site. The social unemployment rate briefly dropped to nearly zero, and prices remained stable. The populace lived in peace and contentment, and Germany shook off the gloom of defeat to become the most economically dynamic country in Europe. Under the fervent propaganda of the German newspaper, the latter half of 1925 was heralded as the year of Great Germany. The Great German Party, through the "New Versailles Peace Treaty," delivered an unprecedented Christmas to the German people.
In September 1926, just one year after the signing of the Ruhr Agreement, Hindenburg, on behalf of the government, commended Major General Akado Rudolf. A bonus and an additional 4 million marks were generously allocated as secret funds for the National Defense Forces. By the end of 1926, Germany's military had expanded significantly, albeit secretly, to include 42.5 million Army troops (fewer than expected), a total of 633 tanks of various models, 60 Air Force aircraft, and the Navy boasted 21 new Z1 class destroyers among several other older vessels (the 3 X-type light cruisers were still not in service during the trial phase).
When the group of capitalist businessmen, flush with money, finally decided to take a break, they remembered that there was another important matter yet to be implemented, prompting them to hurriedly commence work once again.