Arc 59Rival Powers and Coming Crises
East Africa expanded its influence while preparing for an economic downturn, as Ernst warned the Habsburgs and directed the empire’s overseas strategy. The arc left East Africa stronger, with its industry and population growing, while war in South America and rivalries among major powers threatened to reshape its position.
- Rudolf authorized Clavel’s recommendations for Hungary, but German forces entered the country to suppress the rebellion as Yosef began evacuating Soviet personnel and Hungarian resources.
- Friedrich inspected Bella’s transport and chemical industries, where officials described growing production, German technical ties, and East African research and training.
- East African soldiers and civilians discussed colonial campaigns and immigration, while Ernst planned to exploit Japan’s ambitions and expand East African influence in Asia, including through a secret partnership with Sikkim.
- Kun accepted responsibility for Hungary’s worsening position and prepared to resign after the crisis, while Ernst warned that restoring the old order could revive unrest and ordered preparations for an economic crisis.
- Japan’s leaders promoted expansion into Nanyang and Australia, while Charsson secured Sikkim’s cooperation and Kemal gained Mehmed VII’s agreement to abolish the Caliphate and pursue sweeping Ottoman reforms.
- As American stock speculation boomed, Ernst ordered overseas assets sold and pursued trade and construction arrangements with the Soviet Union and Ottoman Empire, while Smith maneuvered Bolivia toward war with Paraguay to obstruct the Asuncion-Lima Railway.
- Bolivia occupied North Chaco, and East Africa backed Paraguay with a loan, supplies, and troops, and Gosell’s battalion captured a Bolivian outpost, after which Friedrich proposed further regional measures against American influence.
- Ernst warned Rudolf of an approaching economic crisis and urged stronger administration and state intervention, while census reports showed East Africa’s population, urbanization, and industrial output rising rapidly.