Arc 42From the Azores to Rearmament

Germany defeated the American forces in the Azores and devastated East Coast ports and shipyards, forcing the United States to accept a humiliating peace. The years that followed saw Germany pull ahead while the Depression weakened America, prompting Roosevelt to rearm and Joseph to prepare Buru for war and purge his opponents.

  • Wilson left the American troops in the Azores to decide whether to hold their positions or surrender, but German forces attacked and Major General Moore led a mutiny that ended with the Americans surrendering.
  • After the victory in the Azores, Oscar approved attacks on American shipbuilding, and the German fleet destroyed Boston, New York, Baltimore, and Naval Base Norfolk despite American resistance.
  • Facing heavy losses and further attacks, Wilson agreed to Germany’s terms, including a public apology and four billion Marks in compensation, then resigned amid public anger.
  • Germany expanded its economy, centralized its government, and modernized its armed forces while the United States, Britain, the Island Nation, and Buru prepared for future rivalries.
  • Oscar warned the German Cabinet that American overproduction and consumer loans could trigger a crisis, then ordered plans to profit from America’s collapse by acquiring its machinery and recruiting its workers and experts.
  • The 1929 crash devastated the United States, and German and Buru buyers acquired American equipment and talent as Roosevelt’s recovery efforts struggled to close the growing gap with Germany.
  • Roosevelt chose military spending to stimulate the economy and prepare for war, and approved plans to expand the Army’s armored forces and build a large fleet of carriers and battleships.
  • Joseph secured Politburo approval to expand Buru’s military, appointed Yagoda to lead internal security, and ordered him to eliminate opposition, including Trotsky’s followers.
Chapters 1040–1064 Vol. 11 Read

Ch. 1040America's Pride

After Germany demanded an American apology and compensation, President Woodrow Wilson and his officials weighed the costs against the tens of thousands of US troops trapped in the Azores. Unable to afford the terms or persuade Germany to lower them, Wilson chose to leave the troops to decide whether to resist or surrender.

  • Ambassador Davidson reported Germany’s demands to Washington after leaving the German Foreign Ministry.
  • Secretary of State Bryan told President Woodrow Wilson that the demands were unacceptable, but the troops in the Azores made refusal dangerous.
  • Garrison supported apologizing, while Daniels and McAdoo warned that the compensation would strain the government and threaten funding for the Navy.
  • Wilson asked whether Germany could be persuaded to reduce its demands, and Bryan said negotiations were unlikely to succeed.
  • Wilson ordered a Telegram telling the troops they were the pride of the Republic of America and leaving them to choose whether to hold their positions or surrender when Germany attacked.

Ch. 1041The Marine Corps’ Showdown

After destroying the American fleet near the Azores, Germany prepared to eliminate the stranded American and British Marines on the islands. German naval bombardment shattered the defenders’ morale, and the German Marine Corps began landing operations on February 22.

  • Vice Admiral Burdick and Vice Admiral Schmidt briefed Lieutenant General Alexander Linsingen on the American and British Marine deployments across the Azores.
  • The German Atlantic Fleet and Home Fleet bombarded the islands while carrier aircraft attacked the Marines’ positions and defenses.
  • American Marines lost confidence after learning their fleet had been destroyed, and an officer could not reassure them that negotiations would bring them home.
  • The German Marine Corps 2nd Marine Division arrived in the Azores on February 22, beginning the assault alongside the 1st Marine Division.
  • With naval gunfire support, the German divisions landed with minor casualties and began clearing the islands of American Marines.

Ch. 1042Survival

German forces quickly overwhelmed the US Marines on São Miguel Island and swept through the Azores. After home ordered them to keep fighting, Major General Moore led a mutiny, arrested Major General Cameron, and ordered the division to surrender.

  • German destroyers and carrier aircraft battered US Marine positions as German Marines landed, broke through the defenses, and secured a beachhead.
  • The German Marine Corps' two divisions advanced through the Azores, while many US soldiers surrendered.
  • Major General Moore urged Major General Cameron to surrender, but Cameron said he would seek permission from home to do so.
  • US leaders rejected Cameron's request and ordered the troops to keep holding the Azores, promising help that Moore and the officers did not believe would come.
  • Major General Moore secretly gathered officers and proposed a mutiny to save the troops from further losses.
  • Two hours later, officers and soldiers arrested Major General Cameron, and Moore ordered the division to stop fighting and surrender to the Germans.

Ch. 1043Punishing America

After Germany took the Azores and captured the remaining American and British forces, the United States faced domestic backlash and turned public opinion against Germany. On March 4, Qin Tian heard Admiral Reinhard Scheer’s plan to attack the American mainland and cripple its ports and shipyards, leaving the decision to launch the assault ahead.

  • The remaining American Marines surrendered, and the British 7th Marine Brigade surrendered as German warships gathered near Pico Island, ending the Battle of the Azores in Germany’s favor.
  • The United States suffered heavy military losses and faced public criticism, but its propaganda blamed Germany and fueled hostility toward Germans and German Americans.
  • Qin Tian rejected the idea that retaking the Azores was enough and visited the Naval Ministry on March 4 to hear a plan for punishing the United States.
  • Admiral Reinhard Scheer proposed combining the Home Fleet and Atlantic Fleet to attack American coastal cities, focusing on ports and shipyards, while the Carrier Fleet bombed coastal targets.
  • Qin Tian saw an attack on American shipbuilding as a chance to extend German naval supremacy, though it could make reconciliation impossible and trigger war.

Ch. 1044Oscar's Objective

Oscar discussed the risks and preparations for attacking American cities, then confirmed his plan to cripple the United States’ East Coast shipbuilding capacity. The Imperial Navy accepted the mission to destroy more than half of that capacity while minimizing its own losses.

  • Oscar warned Admiral Scheer that American warships and submarines could threaten the German fleet during attacks on U.S. cities.
  • Admiral Scheer said the fleet would withdraw at night and use destroyers, light cruisers, and new Sonar to defend against torpedo and submarine attacks.
  • Oscar noted that German Sonar was ready for combat and that Radar research was still underway.
  • Chancellor Bülow asked whether attacks on the United States would trigger a full-scale war, and Oscar said Germany should strike while it held the advantage.
  • Oscar ordered the Imperial Navy to destroy important East Coast shipbuilding bases and more than half of America's shipbuilding capacity at the smallest possible cost.
  • The Imperial Navy's generals agreed to carry out Oscar's mission.

Ch. 1045The First Target

The German Combined Fleet planned attacks on the American East Coast, selecting major ports and shipbuilding centers while requesting approval to strike Washington. Oscar rejected the Washington attack, and Boston became the fleet’s first target as it approached the city on March 12.

  • Admiral Hipper and the other commanders selected Boston and New York for attacks, while assigning Baltimore to the Carrier Fleet and ruling out Philadelphia.
  • The commanders debated attacking Washington and agreed to seek approval from home before deciding.
  • Admiral Hipper argued that Naval Base Norfolk had to be attacked, and the commanders agreed to include it in the plan.
  • Oscar refused permission to attack Washington, so the fleet abandoned that target.
  • The Combined Fleet approached Boston on March 12, with the Americans unaware of its arrival.

Ch. 1046Destroy

The German Navy Combined Fleet arrived off Boston and launched a devastating bombardment on the harbor and shipyards. Boston’s harbor was left in ruins, and the American warships under construction were destroyed.

  • American dockworkers and sailors initially mistook the approaching fleet for their own, then realized it was German when they saw the Iron Cross flags.
  • Admiral Hipper ordered the German fleet to prepare to fire as its capital ships aimed at Boston’s harbor.
  • Admiral Hipper ordered the fleet to destroy Boston’s harbor and shipyards.
  • The German Navy Combined Fleet’s bombardment reduced the harbor to ruins and destroyed American warships under construction.

Ch. 1047Shock

President Wilson and his officials responded to news that the German fleet was shelling Boston Harbor. They concluded that declaring war could expose the United States to blockade and further attacks, leaving the country in no position to fight Germany.

  • A duty officer woke President Wilson and reported that German ships were attacking Boston Harbor.
  • President Wilson summoned senior military and political officials to an emergency meeting at the White House.
  • Minister Daniels apologized for the Navy’s failure to detect the German fleet, but President Wilson set aside the question of blame.
  • Secretary of War Garrison argued that the United States could still defend itself, while Secretary of State Bryan questioned why Germany had attacked.
  • General Benson warned that war could bring a German naval blockade and attacks on coastal cities, and McAdoo urged the government not to fight.
  • President Wilson agreed that the United States was too weak to go to war with Germany and risk further decline.

Ch. 1048Endurance

President Woodrow Wilson and senior US officials concluded that the United States could not risk an all-out war with Germany and would have to endure the attacks while seeking negotiations. Wilson publicly condemned Germany but did not declare war, leaving the country to swallow the humiliation and hope to grow strong enough to retaliate later.

  • President Woodrow Wilson and his officials discussed whether Germany's attacks were retaliation or the start of an all-out war, and General Peyton March and General William Benson judged that Germany meant to weaken the United States rather than invade it.
  • Secretary of the Navy Daniels reported that German forces had destroyed Boston's harbor and shipyards, including nearly all the warships under construction there.
  • President Woodrow Wilson instructed Bryan to summon the German Ambassador, protest the attacks, and offer to accept Germany's previous ceasefire terms if Germany stopped attacking the United States.
  • President Woodrow Wilson told officials to remember the humiliation and vowed that the United States would repay Germany's blood debt when it became stronger.
  • President Woodrow Wilson delivered a speech condemning Germany's attack and demanding that it stop, but he did not mention declaring war.

Ch. 1049Escape from the East Coast

After German naval attacks devastated Boston, New York, and Baltimore, Americans lost faith in President Wilson’s assurances and began fleeing the East Coast. The mass exodus threatened to cripple the country’s economy and create widespread social problems.

  • President Wilson assured reporters and citizens that the US government would negotiate with Germany, but angry Americans condemned his response to the Boston bombardment.
  • As panic spread along the East Coast, the US government tried to persuade residents to stay, while many people began fleeing inland.
  • The German Navy attacked New York’s harbor and shipyards, deepening public fears that negotiations had failed.
  • German carrier-based aircraft destroyed Baltimore’s harbor and shipyards, showing Americans that moving a short distance inland would not keep them safe.
  • Vast numbers of Americans fled at least two hundred kilometers from the coast, leaving the US government worried about economic collapse and social unrest.

Ch. 1050Target Norfolk

The German Navy Combined Fleet advanced toward Naval Base Norfolk, intending to bombard the base with its Capital Ships while carrier-based aircraft supported the attack. After an American seaplane spotted the fleet, Admiral Hipper ordered preparations for torpedo attacks as the Germans pressed on.

  • Major General Pratt inspected Naval Base Norfolk's new anti-aircraft defenses, which had been reinforced after German attacks on other American cities.
  • Admiral Hipper reviewed the plan to enter Chesapeake Bay and attack Norfolk, while General Fiers defended the risks and described their preparations.
  • Admiral Hipper learned the fleet would reach Chesapeake Bay in two hours and that the Carrier Fleet was fifty nautical miles behind.
  • An American Navy seaplane spotted the German Combined Fleet about forty nautical miles from Norfolk.
  • Admiral Hipper ordered the fleet to prepare against American torpedoes and urged the anti-submarine destroyers not to fail.

Ch. 1051The Americans’ Counterattack

The American Navy prepared to ambush the German fleet at Chesapeake Bay with destroyers, Light Cruisers, and submarines. Admiral Hipper sent anti-submarine forces ahead, and the battle began with a German destroyer sinking an American submarine.

  • General Mayo told Daniels and the American commanders that forty destroyers, twenty Light Cruisers, and more than twenty submarines were ready to defend Norfolk and Chesapeake Bay.
  • Daniels ordered the American forces to meet the German fleet, and Naval Base Norfolk went on combat alert.
  • Admiral Hipper learned that American warships were waiting inside Chesapeake Bay and ordered five Light Cruisers to escort ten anti-submarine destroyers in a search for submarines.
  • At ten in the morning, German destroyers used sonar to locate an American submarine outside the bay.
  • A German destroyer dropped depth charges and sank the American submarine.

Ch. 1052A Brutal Battle

The German Navy destroyed nearly all American submarines outside Chesapeake Bay before Admiral Hipper led the fleet into the bay. American cruisers and destroyers then charged the German Capital Ships under heavy fire, and the battle continued with the American attackers suffering severe losses.

  • German anti-submarine forces sank nearly all the American submarines outside Chesapeake Bay, reporting twenty-four confirmed results to Lieutenant General Richter Fiers.
  • Admiral Hipper ordered the anti-submarine forces to stay alert and sent the German fleet into Chesapeake Bay, with destroyers and Light Cruisers leading.
  • American Light Cruisers and destroyers charged the German Capital Ships to launch torpedoes, but German ships intercepted them while the Capital Ships fired their heavy guns.
  • German shellfire destroyed an American destroyer's bow and set an American Light Cruiser's superstructure ablaze.
  • An American destroyer captain ordered his crew to force-draft the boilers and charge a German Capital Ship, but dense German fire sank the vessel.

Ch. 1053Failure at the Final Step

The German fleet routed the American forces in Chesapeake Bay and destroyed Naval Base Norfolk. Admiral Hipper then sailed the fleet out across the Atlantic after completing its mission.

  • American destroyers and cruisers launched torpedoes from long range and fled as German defenses sank most of the attacking fleet.
  • The battle ended in under an hour, with only five of twenty American light cruisers and fewer than ten of forty destroyers escaping, while the German fleet lost several destroyers.
  • Admiral Hipper ordered the German fleet to attack Naval Base Norfolk and assigned smaller warships to guard against American ships and submarines.
  • Sixteen German capital ships bombarded and destroyed the base’s coastal fortifications, while American personnel evacuated.
  • After two hours of bombardment by naval guns and carrier-based aircraft, the German fleet left Chesapeake Bay and sailed across the Atlantic.

Ch. 1054Must End

After the American Navy failed again to stop the German fleet in Chesapeake Bay, President Wilson ordered it to cease attacking and decided the United States must seek a diplomatic end to the conflict. The chapter left Wilson prepared to accept even severe German demands rather than suffer further losses.

  • Minister Daniels reported that the failed Chesapeake Bay counterattack had cost the United States more than twenty submarines, over ten light cruisers, and more than thirty destroyers.
  • President Wilson ordered the Navy to stop attacking the German fleet and said he wanted to preserve its surviving officers and sailors.
  • General Benson warned that the United States must not challenge the German Navy again without thorough preparations.
  • President Wilson summoned Secretary of State Bryan and concluded that Germany would not negotiate until it had destroyed East Coast shipbuilding capacity.
  • Wilson told Bryan that the United States had to end the conflict, even if Germany's demands were high.

Ch. 1055President Steps Down

After the German fleet devastated American shipyards and ports, Germany and the United States ended the conflict with an apology and four billion Mark in compensation. Public anger over Woodrow Wilson’s capitulation forced him to resign, and the Vice President succeeded him as President.

  • The German fleet destroyed ports and shipyards in seven East Coast cities, further crippling American shipbuilding capacity.
  • Oscar authorized Foreign Minister Wachth to negotiate peace, and Wachth secured a public apology and four billion Mark in compensation from US Ambassador Davidson.
  • Germany and the United States signed a memorandum ending the conflict, after which the US government publicly accepted responsibility for starting it.
  • Woodrow Wilson’s apology provoked demonstrations and drove his approval rating down to five percent.
  • Woodrow Wilson resigned, and the Vice President succeeded him as President.

Ch. 1056Ten Years of Development

Over the ten years after Germany defeated the United States, Oscar strengthened the German economy, absorbed former territories, centralized the government, and prepared the military for another world war. In 1929, Germany remained dominant, but Oscar anticipated rising international tensions and pressed ahead with preparations for the coming conflict.

  • Germany used its overseas colonies to drive rapid economic growth and surpassed the United States in industrial output by 1921.
  • Germany absorbed northern France, Belgium, and Austria, while its policy of divide and conquer reduced resistance to integration.
  • Oscar gradually stripped the German states of most of their autonomy and concentrated authority in the central government.
  • Germany upgraded its mechanized army, began Blitzkrieg exercises, built carrier strike groups, and developed advanced aircraft and long-range bombers.
  • Oscar expected international tensions and economic crises to push rival powers toward expansion, so he urged Germany to finish preparing for war.

Ch. 1057The Empire’s Enemies

The chapter described how Germany’s enemies—the United States, Britain, the Island Nation, and Buru—had rebuilt their military strength and prepared for future conflict. It left Germany facing a growing coalition of rivals, with its Pacific Fleet rising in importance as the Island Nation expanded its forces.

  • The United States rebuilt its ports and navy, prioritized aircraft carriers, and continued to regard Germany as an inevitable future enemy.
  • Britain cooperated with the United States and developed its own navy and air force, shifting from battleships toward aircraft carriers.
  • The Island Nation expanded its navy with American support, while its government squeezed its impoverished population to fund military ambitions.
  • Germany strengthened the Pacific Fleet in response to the Island Nation’s growing military power.
  • After Ulyanov’s death, Joseph defeated Trotsky, developed Buru’s military, and pursued ties with Germany’s enemies.

Ch. 1058Economic Crisis

Emperor Oscar reviewed the Empire’s strong economy and warned his Cabinet that America’s credit-fueled boom was likely to end in a crisis. He ordered the government to prepare for the fallout and exploit the opportunity to weaken the United States, as the crisis soon arrived.

  • On April 14, 1929, Prime Minister Wachth convened a Cabinet meeting that Oscar attended.
  • Trade Minister Hans and other ministers reported on Germany’s economic strength, while Count Puhl said its annual revenue totaled about fifty billion Marks including colonial income.
  • Oscar warned that American consumer loans and overproduction had created false prosperity that could collapse when goods went unsold.
  • Oscar ordered the Cabinet to prepare plans to shield the Empire from the crisis and weaken the United States.
  • The German government began preparing contingency plans, while Americans remained confident in their booming domestic market until the economic crisis arrived.

Ch. 1059Buying the Bottom in the United States

After the 1929 stock market crash plunged the United States into economic crisis, Oscar and his ministers planned to exploit the collapse to strengthen Germany and further weaken its rival. Germany began buying American machinery, ships, and raw materials while recruiting scientists, engineers, and skilled workers, leaving the story with its industrial strength growing at America’s expense.

  • On October 24, 1929, the U.S. stock market crashed, wiping out fortunes and triggering bankruptcies, bank failures, and unemployment.
  • On October 31, Prime Minister Wachth told Oscar that Germany had escaped the worst effects but might struggle to export goods beyond its controlled territories.
  • Oscar asked how Germany could deepen America’s losses, and Hans proposed buying its idle machinery and recruiting its unemployed experts and workers.
  • Oscar assigned the Ministry of Trade to acquire American machinery, raw materials, and talent at the lowest possible cost.
  • Starting in 1930, German companies bought American industrial equipment, raw materials, and merchant ships while German institutions and factories recruited American specialists and skilled workers.

Ch. 1060Buru's Ambitions

In 1919, Joseph learned that a major economic crisis had crippled the United States and saw a chance for Buru to acquire advanced industrial equipment without relying on Germany. The Politburo approved sending buyers to the United States, leaving Buru poised to strengthen its industry amid growing concern about Germany.

  • Buru and Germany ended their cooperation as both sides sought to limit the other's influence and strength.
  • Chicherin told Joseph that the American economic crisis had shut factories and left machinery idle.
  • Joseph worried that a weakened United States would be less able to restrain Germany, which he knew could overpower Buru.
  • Chicherin proposed buying American machinery and equipment to advance Buru's industry beyond the outdated technology Germany had supplied.
  • Joseph won Politburo approval to send representatives to the United States, and Buru began buying equipment there.

Ch. 1061The New Deal

Franklin Roosevelt’s New Deal began to improve the American economy, but his Cabinet warned that Germany and Buru were exploiting the crisis and widening the gap with the United States. Roosevelt asked his ministers to find further ways to revive the economy while setting aside the contest with Germany for the moment.

  • The prolonged crisis left Americans impoverished and desperate, while Herbert Hoover’s failed measures deepened public disappointment.
  • Franklin Roosevelt won the 1932 election with promises of reform, then launched the New Deal and expanded government intervention and public works.
  • By 1934, the economy had improved and Americans had regained some hope, though the crisis continued.
  • Secretary of Commerce Daniel, Secretary of Labor Francis, and Secretary of State Hull warned Roosevelt that German purchases and recruitment had damaged American industry and widened Germany’s lead.
  • Daniel said Buru had also benefited from the crisis, and Roosevelt asked his Cabinet for ways to further revive the economy.

Ch. 1062Roosevelt’s Decision

President Roosevelt consulted Hopkins about the United States’ worsening economic and strategic position against Germany. Roosevelt decided to expand military procurement to stimulate the economy and prepare for the war he believed was inevitable.

  • President Roosevelt and his Cabinet failed to find a practical solution to the crisis.
  • President Roosevelt summoned Hopkins and described the United States’ predicament against a Germany growing stronger despite the economic crisis.
  • Hopkins warned that the United States had lost ground and that confronting Germany would be exceedingly difficult.
  • President Roosevelt argued that Germany would eventually attack the United States even if America abandoned the rivalry.
  • President Roosevelt proposed increasing military procurement to revive the economy and strengthen the armed forces, despite the risks of debt and an arms race.
  • Hopkins warned that military expansion could trigger a chain reaction, but President Roosevelt said it was the United States’ only remaining chance to prepare for war.

Ch. 1063Expand the Armed Forces

President Roosevelt launched a major military expansion to revive the economy and prepare the United States for possible war with Germany. After securing financing, he approved plans to enlarge the Army’s armored forces and dramatically expand the Navy, including new aircraft carriers and battleships.

  • Roosevelt told Hull, Swanson, Dern, and Morgenthau that the United States would intensify its armaments expansion to stimulate the economy and defend against Germany.
  • Morgenthau agreed to seek financing through government bonds and bank loans, while Roosevelt promised to negotiate with financial conglomerates; Hull warned that expansion could provoke Germany.
  • The government secured loans and sold bonds successfully, and General Douglas MacArthur submitted a five-year plan to expand the Army’s armored forces from three divisions to ten.
  • Roosevelt approved MacArthur’s plan to acquire tanks, armored vehicles, trucks, and more artillery for infantry divisions.
  • Admiral William Harrison Standley proposed building fifteen aircraft carriers and five Montana-class battleships over five years while continuing other battleship construction.

Ch. 1064Joseph's Purpose

Joseph responded to the threat of war by pushing to strengthen Buru’s military and secure control over the country. After appointing Yagoda as People’s Commissar for Internal Affairs, he ordered him to hunt down opposition figures, especially Trotsky’s followers.

  • Litvinov reported that American military spending had revived its industry while burdening the government with enormous debt, and Joseph warned that the United States might seek war.
  • Joseph proposed expanding Buru’s military at a Politburo meeting, where his proposal passed despite opposition from several members.
  • Joseph concluded that internal opponents could threaten his rule and decided to purge them while Germany’s attention was drawn toward the United States.
  • Joseph secured the appointment of Yagoda as People’s Commissar for Internal Affairs and told him to find and eliminate opposition elements.
  • Joseph specifically ordered Yagoda not to spare Trotsky’s followers, whom he feared could weaken his control of the military during a war.
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