Recaps

At Germany’s naval auction, Brazil, Chile, the Ottoman Turkish Empire, and the Austro-Hungarian Empire drove prices for the warships sharply upward. Crown Prince Karl eventually secured three Moltke-class Battlecruisers for the Austro-Hungarian Empire, while Germany profited from the sales and planned to reinvest the money in its navy.

• Admiral Anton Haus failed to win the Oldenburg after Brazil bought it for seventy-five million Marks with financial support from Argentina.
• Crown Prince Karl bid against the Ottoman Turkish Empire and Chile for the East Prussia as the four Helgoland-class Battleships fetched a total of two hundred and eighty-five million Marks.
• The Ottoman Turkish Empire withdrew from bidding for the Moltke, and the Austro-Hungarian Empire bought it for sixty-eight million Marks.
• The Austro-Hungarian Empire also bought the Goeben for sixty-nine million Marks and the Seydlitz for seventy million Marks.
• Crown Prince Karl secured three powerful Battlecruisers, while Germany collected funds to develop its navy.

The auction of five Kaiser-class Battleships drove fierce bidding among the Austro-Hungarian Empire, the Ottoman Turkish Empire, and the Republic of Chile. Crown Prince Karl and Fatih Pasha battled over the final ship, Regent Leopold, as the price continued to rise.

• Crown Prince Karl won the Kaiser for eighty-eight million Marks after the representative of the Republic of Chile and Fatih Pasha withdrew.
• The Republic of Chile won Frederick the Great for ninety-four million Marks, outbidding Crown Prince Karl and Fatih Pasha.
• Crown Prince Karl won Catherine for ninety-two million Marks after Fatih Pasha withdrew to deplete his rival’s funds.
• Crown Prince Karl won Prince Albert for ninety-five million Marks, while Fatih Pasha withdrew believing Karl was running out of money.
• Fatih Pasha and Crown Prince Karl drove the bidding for Regent Leopold past ninety million Marks, reaching ninety-three million Marks without a winner being named.

The German Navy's auction of eighteen capital ships and other retired warships ended with proceeds exceeding 1.62 billion Marks. The Austro-Hungarian Empire emerged as the biggest winner, leaving Germany to consider the growing naval balance in the Mediterranean Sea.

• Crown Prince Karl outbid Fatih Pasha for the battleship Regent Leopold at ninety-seven million Marks, and the Austro-Hungarian Empire secured it.
• The eighteen capital ships sold for a total of 1.221 billion Marks, enough to fund the later construction of Germany's twelve battleships and ten battlecruisers.
• The armored cruisers, light cruisers, and destroyers sold for another four hundred million Marks, bringing the auction total to more than 1.62 billion Marks.
• The Austro-Hungarian Empire acquired eight capital ships and became the world's second-largest naval power after Germany.
• Germany recognized that the strengthened Austro-Hungarian navy could threaten its Mediterranean Fleet, though Ottoman ships and future German carrier groups could limit its advantage.

Oscar learned that Germany had sold retired warships for 1.6 billion marks and discussed how the buyers could shift naval power. He approved plans to support the Ottoman Turkish Empire and prepare for possible conflict in South America.

• Grand Admiral Count Tirpitz told Oscar that the warship sales had brought in 1.6 billion marks, which Oscar planned to use for the navy’s upgrades.
• Tirpitz reported that the Austro-Hungarian Empire had bought eight Capital Ships for 657 million marks, and Oscar worried about the pressure on Germany’s Mediterranean Fleet.
• Tirpitz said the Ottoman Turkish Empire had bought three ships after competing fiercely with Crown Prince Karl, and Oscar approved building more powerful ships for the Ottomans if they paid.
• Tirpitz reported that Chile had bought four Capital Ships and proposed paying with mineral resources, while Brazil and Argentina had bought one ship each.
• Oscar warned that Chile’s naval expansion could spark a South American war and ordered preparations to protect German interests.

On New Year's Day 1915, Oscar held a promotion ceremony for the German Empire's military leaders, elevating Tirpitz and Falkenhayn to Imperial Marshals and promoting numerous other officers. The next day, Oscar announced new appointments and the army began replacing aging commanders as it prepared for reform.

• Oscar praised the Empire's servicemen at the imperial palace before Chancellor Bülow read the promotion list.
• Oscar promoted Count Tirpitz and Falkenhayn to Imperial Marshal, while several army corps commanders and Reinhard Scheer became service marshals.
• Lieutenant General Seeckt, Ludendorff, Hipper, Spee, and more than fifty other officers were promoted to general.
• Oscar appointed Reinhard Scheer as Imperial Navy Minister, retired Tirpitz, and assigned Hipper and Spee to command the Home Fleet and Pacific Fleet.
• The army retired many aging corps commanders and appointed younger generals as Army Group Commanders to begin reforms.

Germany began expeditions to reclaim British colonies while Oscar assessed the nations that could threaten its new dominance. He left Germany preparing for future conflicts with the United States, Buru, Island Nation, and others, while Britain remained sheltered in Canada.

• On New Year's Day of 1916, the 3rd Army Corps and 8th Army Corps launched joint expeditions toward South Africa and Egypt, while the 4th Army Corps prepared for overseas combat.
• Germany planned to take over colonies already handed over by France and Italy, and expected to build colonial forces to maintain order and protect supply lines.
• Oscar identified the United States and Buru as Germany's greatest future threats, but refused to suppress Buru's industry and chose instead to profit by selling it machinery.
• Buru sold agricultural products and mineral resources to Germany to fund industrial development, while its people endured hunger and famine.
• Oscar viewed the Austro-Hungarian Empire as vulnerable to eventual breakup and saw Island Nation as a threat to German interests in India and the Pacific.
• The British Empire remained in Canada under United States protection, while Germany held off from war because of the Atlantic Ocean and the risk of fighting the United States.

Joseph arrived in Berlin as Buru's envoy and sought a meeting with Oscar to ask Germany to stop suppressing Buru-backed guerrillas and Bolshevik Party members in Eastern Europe. Oscar suspected the request concerned the crackdown and remained determined to eliminate the guerrillas as a threat to Germany.

• Joseph, under pressure from Moscow and Ulyanov, ordered his aide to contact the Germans again and secure a meeting with the German Emperor.
• Wachth told Oscar that Joseph had requested an audience three times in one day and speculated that Buru wanted German grain or help with its guerrillas.
• Oscar rejected the idea that Buru sought grain, saying its leaders prioritized industrial development over feeding peasants.
• Wachth suggested that Joseph wanted Germany to end its campaign against the Buru-supported guerrillas and Bolshevik Party members in Eastern Europe.
• Oscar agreed that the envoy likely sought help and said Germany needed to eradicate the guerrillas before a future war with Buru.

Oscar ordered Marshal Hindenburg to intensify the campaign against guerrillas in the Eastern European Plain while agreeing to meet Buru envoy Joseph. Joseph asked Oscar to stop the killings and spare guerrillas connected to his party, but Oscar remained firm and the meeting ended without agreement.

• Oscar ordered Wachth to telegram Marshal Hindenburg to speed up the extermination of the guerrillas, then agreed to meet Joseph the following afternoon.
• The Director of the Bolshevik representative office told Joseph that Oscar had accepted his request for an audience.
• Joseph arrived at the Imperial Palace and met Oscar and Foreign Minister Wachth.
• Joseph asked Oscar to halt the military operation, but Oscar said the Empire would continue eliminating rebels.
• Joseph admitted that some of his party's members were among the guerrillas and pleaded with Oscar to spare them.

Oscar confronted Joseph over Bolshevik activity in German-held Eastern European territories and offered a spring withdrawal of party members to preserve relations between Germany and Buru. Joseph agreed to report the proposal to Ulyanov and sought German help rebuilding Buru’s industry.

• Oscar accused Buru of violating the Treaty of Brest-Litovsk, and Joseph insisted that his government recognized the treaty.
• Oscar warned that Germany would respond harshly to further covert activity, and Joseph promised that Buru would not tear up the treaty.
• Oscar offered to let Bolshevik members and other Russians leave German territory for Buru next spring, provided they never returned.
• Joseph approved the proposal in principle and said he would report it to Ulyanov, while Oscar warned that anyone who remained and acted against Germany would be wiped out.
• Joseph asked Germany for industrial support for Buru, and Oscar agreed to provide whatever assistance Germany could.

Oscar offered Germany’s help rebuilding Buru’s industrial system and transportation network in exchange for payment, while Joseph accepted the industrial proposal but recognized the danger behind the transport offer. Joseph said he would report the proposal to Comrade Ulyanov, leaving Germany’s plan awaiting Buru’s response.

• Oscar told Joseph that Germany could rebuild Buru’s industrial system, but required payment, and Joseph agreed that Germany should earn a profit.
• Joseph asked Germany for a loan, but Oscar said the project would cost more than ten billion marks and proposed payment in agricultural products and mineral resources instead.
• Joseph accepted the barter arrangement, and Oscar offered to build Buru a railway and highway network for payment.
• Joseph realized the transportation proposal could help Germany invade Buru and said he would report it to Comrade Ulyanov.
• Oscar reaffirmed Germany’s friendship with Russia and said he hoped it would last forever.

Joseph proposed that Buru buy battleships from Germany, and Oscar agreed to sell it the world’s strongest ships in exchange for agricultural products and minerals. Oscar welcomed the deal because he expected a costly Buru navy to weaken its army before a future war with Germany.

• Joseph thanked Oscar for Germany’s offer of assistance and said he would report it to Ulyanov.
• Joseph asked Oscar whether Buru could order warships from German shipyards because it lacked the ships and expertise to build a powerful navy.
• Joseph said the battleship proposal was his own idea for now, but he expected Ulyanov to approve it.
• Oscar agreed to sell Buru battleships, seeing the trade as profitable and a way to divert resources from the Buru Army.
• Joseph asked for the strongest battleships in the world and offered agricultural products and mineral resources as payment.
• Oscar promised ships of more than forty thousand tons with 410mm main guns, and Joseph gladly accepted.

Joseph returned to Buru believing his successful mission would win Ulyanov’s favor, while Oscar’s Imperial Council revealed that Germany had secretly designed its aid to prepare for a future war against Buru. Germany intended to use industrial assistance, intelligence gathering, and Battleship construction to weaken and eventually defeat Buru.

• Joseph returned home pleased with the agreements he had secured in Germany and hoped Ulyanov would reward him over Trotsky.
• Oscar told the Imperial Council that Germany had to prevent rival powers such as Buru and the Austro-Hungarian Empire from threatening its dominance in Europe.
• Oscar explained that German aid would give the Empire influence in Buru, help it assess Buru’s strength, and prepare for a future attack.
• Falkenhayn warned that Buru would recognize the danger of Germany’s proposed transportation network, but Oscar said even limited railway and road construction would aid a German invasion.
• Wachth proposed bribing Bolshevik Party members to advance Germany’s plans against Buru.
• Scheer worried that German-built Battleships might threaten the Empire, but Oscar revealed that Buru’s ships lacked anti-aircraft defenses and could be destroyed by German aircraft and submarines.

Joseph returned to Moscow after securing German support for Buru’s industrial development, but the agreements divided the Bolshevik Party and drew accusations from Trotsky’s faction. Joseph told Ulyanov that Germany was so powerful Buru could not repel an attack, leaving the country’s security as an urgent concern.

• Joseph returned to Moscow and learned that Trotsky’s supporters had accused him of betraying the Party and Buru through his German agreements.
• Chicherin greeted Joseph and told him that Ulyanov wanted to see him at the Kremlin.
• Joseph waited while Ulyanov slept, then reassured him that he would make up the time by working overtime.
• Ulyanov asked Joseph about his impressions of Germany, and Joseph described its military as overwhelmingly powerful.
• Joseph told Ulyanov that Buru’s forces could not hold back a German attack, and Ulyanov considered the resulting threat to national security.

Ulyanov and Joseph discussed Germany’s offer to rebuild Buru’s industry and transportation network, weighing the benefits against the risk of Germany using the new infrastructure to invade. Ulyanov accepted the industrial assistance in principle but left the transportation proposal for the Politburo to consider.

• Ulyanov argued that Buru should strengthen itself and resist Germany if attacked, while Joseph agreed that German support could help rebuild its industry.
• Ulyanov suspected Germany had hidden motives, but Joseph said Buru could monitor the factories and take control of them if necessary.
• Ulyanov approved the industrial rebuilding proposal in principle, and Joseph felt relieved that the agreement could pass.
• Ulyanov objected that Germany’s proposed transportation network could aid an invasion, while Joseph argued that it could also help Buru develop and move troops quickly.
• When Ulyanov asked whether Buru’s army could stop a German attack, Joseph admitted he did not know, so Ulyanov sent the transportation proposal to the Politburo for discussion.

Joseph argued that Buru needed a powerful navy and sought Ulyanov’s support for battleship construction, partly to strengthen his standing against Trotsky. Ulyanov agreed to have the plan discussed at the Politburo and arranged for Joseph to leave the Foreign Affairs post and become Commissar for the Navy.

• Joseph urged Ulyanov to approve battleships paid for with Agricultural Products and Mineral Resources, arguing a Baltic fleet could threaten German shipyards.
• Ulyanov worried about the cost and the strain on Russian peasants, but agreed to submit the naval plan to a Politburo meeting.
• Ulyanov considered Joseph’s rivalry with Trotsky and asked whether Joseph would relinquish the post of Commissar for Foreign Affairs.
• Joseph accepted Ulyanov’s arrangements, and Ulyanov directed him to resign as Commissar for Foreign Affairs and concurrently serve as Commissar for the Navy.

Joseph gained Ulyanov’s public support after negotiating agreements with Germany, including a role as Commissar for the Navy. At the Politburo meeting, leaders debated the costs and risks of Germany’s proposed assistance in rebuilding Buru’s industry.

• Joseph left the Kremlin pleased after Ulyanov agreed to make him Commissar for the Navy.
• Ulyanov praised Joseph at a Politburo meeting for securing agreements with Germany, while Trotsky grew concerned about Ulyanov favoring Joseph.
• Ulyanov said Germany would allow Russians in occupied territories to return in spring, and the Politburo accepted the agreement as a limited success.
• Ulyanov outlined Germany’s offer to help rebuild Buru’s industrial system in exchange for agricultural products and mineral resources.
• Kamenev warned that the trade could worsen shortages, and Joseph argued that future industrial production would raise grain output and strengthen the country.
• Trotsky questioned Germany’s motives, and Joseph replied that Germany might not consider Buru a serious threat.

Ulyanov weighed whether Buru should accept Germany’s offer to build a transportation network, balancing security risks against economic development. He approved Krestinsky’s plan to set the railway standards and make roads and tracks destructible, then assigned Krestinsky to carry it out.

• Ulyanov told the others to cooperate with Germany on industrial reconstruction while guarding Buru’s interests and moving quickly.
• Trotsky argued that Germany’s transportation proposal would let its forces penetrate deep into Buru, while Kamenev cited Russia’s transport difficulties as a defense against invasion.
• Joseph supported building the network to strengthen Buru’s industry and economy, and argued with Trotsky until Ulyanov ordered them to stop.
• Krestinsky proposed retaining Imperial Russia’s railway standards and making roads and railways easy to destroy if war broke out.
• Ulyanov approved Krestinsky’s proposal and put him in charge, while Trotsky suspected Joseph had maneuvered Krestinsky into taking responsibility.

Joseph persuaded the Politburo to approve four German-built battleships and then resigned as People's Commissar for Foreign Affairs. Ulyanov appointed Chicherin to replace him and made Joseph responsible for the battleship plan and the navy, while Trotsky reluctantly accepted the loss of authority.

• Joseph argued that four powerful battleships would threaten German industry in the Baltic Sea, and Trotsky questioned the plan's value and Germany's willingness to help.
• Joseph cited the German Emperor's guarantee and described the battleships' specifications, prompting Ulyanov to approve the construction of four.
• Joseph submitted his resignation as People's Commissar for Foreign Affairs, and Ulyanov nominated Chicherin as his replacement.
• Ulyanov put Joseph in charge of the battleship plan and named him Commissar for the Navy.
• Trotsky objected to Joseph taking over the navy but ultimately yielded to Ulyanov's decision.

Oscar’s government approved cooperation with Buru and discussed building warships for Buru and the Ottoman Turkish Empire. When the German Mediterranean Fleet lacked a secure naval base, Admiral Reinhard Scheer proposed capturing Gibraltar from Britain.

• Wachth told Oscar that Buru had agreed to cooperate, and Oscar ordered the agreements implemented.
• Oscar instructed the navy to design Buru’s four Battleships with flaws that would let Germany sink them in a future war.
• Oscar approved the Ottoman Turkish Empire’s request for two Mackensen-class Battleships, provided Germany made a proper profit.
• Scheer told Oscar that the Mediterranean Fleet needed a secure naval port while the bases on Corsica and Sicily were still under construction.
• Scheer proposed attacking British-held Gibraltar so the fleet could use its naval port and control the Mediterranean’s vital route.

Oscar ordered Germany to seize Gibraltar Fortress for control of the Mediterranean entrance and dismissed Spain’s claim to the territory. Admiral Reinhard Scheer presented a plan for the operation, and Oscar warned him to prepare for possible Spanish interference.

• Oscar declared that Germany had to seize Gibraltar Fortress because it was vital to the Empire’s Mediterranean strategy.
• Foreign Minister Wachth warned Oscar that taking Gibraltar could anger Spain, which had long claimed sovereignty over it.
• Oscar argued that Spain had failed to reclaim Gibraltar even after Britain’s defeat and said Germany did not need to heed Spanish objections.
• Admiral Reinhard Scheer said the Mediterranean Fleet would bombard Gibraltar while a Marine Corps regiment landed to capture it.
• Oscar warned Scheer that Spain might interfere if the British stirred it up, and Scheer agreed to prepare for that possibility.

Churchill’s government focused on rebuilding British strength in Canada while avoiding direct conflict with Germany. Facing the likely loss of Gibraltar, Churchill decided to offer it to Spain in hopes of keeping it out of German hands and creating resentment toward Germany.

• Churchill said Britain was recruiting an army in Canada and rebuilding its navy and shipyards with plans to build capital ships and aircraft carriers.
• Sir Edward Grey reported that Governor Glad had asked to withdraw from Gibraltar because Britain had no ships there and could not resist a German attack.
• Churchill agreed that Britain could no longer defend Gibraltar and ordered Governor Glad to withdraw at an appropriate time.
• Kitchener suggested returning Gibraltar to Spain to prevent Germany from taking it and to preserve the chance of reclaiming it later.
• Churchill ordered Sir Edward Grey to have the British ambassador offer Gibraltar to Spain immediately, provided Spain guaranteed the safety of the British personnel stationed there.

Spain’s King Alfonso XIII accepted Britain’s offer to return Gibraltar in exchange for protecting its garrison, despite the risk of provoking Germany. Spain announced that Gibraltar had returned to Spanish rule, while Foreign Minister Preto celebrated the completion of his British-funded task.

• British Ambassador met with Foreign Minister Preto and offered to return Gibraltar if Spain guaranteed the safety of the British garrison.
• Preto urged Alfonso XIII to accept, while Alfonso XIII worried that recovering Gibraltar would anger Germany.
• Prime Minister Count Romanones warned Alfonso XIII that Germany might declare war, but Preto argued that Germany would accept the change once it was an accomplished fact.
• Alfonso XIII chose to accept Britain’s proposal, hoping to fulfill the ambition of generations of Spanish kings.
• On January 24, 1916, the Spanish government announced that Gibraltar had returned to Spanish rule.

British troops withdrew from Gibraltar under an agreement, and Spanish forces took control before the German Mediterranean Fleet arrived. A telegram from Berlin ordered Vice Admiral Mauff to halt his planned bombardment and await further orders.

• The British Governor of Gibraltar handed the territory over to Major General Donald, and British troops left for camps in Spain.
• Major General Donald accepted Gibraltar but planned to leave only a small garrison and return to camp.
• Vice Admiral Mauff brought the German Mediterranean Fleet toward Gibraltar and ordered preparations to bombard the fortress.
• A telegram from Berlin reached Mauff after Spanish troops had taken Gibraltar.
• Mauff ordered the fleet to halt and await instructions, saying Spain had taken Gibraltar from under Germany’s nose.

Oscar and his ministers debated how to respond after Spain retook Gibraltar, threatening Germany’s Mediterranean strategy. Oscar left diplomacy as the preferred option but ordered preparations to seize Gibraltar by force if Spain refused.

• Oscar met with Germany’s ministers after Spain announced that it had retaken Gibraltar.
• Bülow and Wachth discussed the risks of invading neutral Spain, while Falkenhayn and Scheer argued over Germany’s position among other nations.
• Oscar rejected letting Spain keep Gibraltar because the strait was vital to Germany’s global strategy.
• Wachth proposed negotiating a lease, and Oscar demanded a ninety-nine-year term for one Mark in rent.
• Oscar ordered the ministers to prepare military action if negotiations failed, saying Germany would take Gibraltar by whatever means necessary.

Spain’s King Alfonso XIII worried about Germany’s response after Spain recovered Gibraltar, then accepted Prime Minister Count Romanones’s advice to seek reconciliation while preparing for a limited defense. The chapter left Spain bracing for Germany’s decision without knowing whether it would attack.

• Other countries watched for Germany’s response to Spain’s recovery of Gibraltar and debated whether Germany would resort to force.
• Alfonso XIII panicked when Germany’s fleet arrived at Gibraltar, but Romanones and Foreign Minister Preto argued that Germany was unlikely to attack.
• Alfonso XIII celebrated the possibility of keeping Gibraltar and gaining prestige, then agreed that Spain should mend relations with Germany.
• Romanones advised preparing the army to defend Gibraltar and limit any fighting to that area, and Alfonso XIII approved his plan.