Ch. 516A Strong Nation Depends on Research; Strong Research Depends on Education

Arthur approved Australasia’s military expansion while acknowledging that new recruits would need extensive training to gain combat experience. He also backed greater funding for civilian research and plans to expand the country’s universities, leaving the government with a goal of more than 50 formal universities by 1923.

  • Arthur accepted Minister Raul’s warning that newly recruited soldiers would be less combat-ready and said training was the practical solution.
  • Arthur approved Prime Minister Kent’s plan to expand the regular forces to more than 250,000 by the following National Day.
  • Prime Minister Kent proposed smaller science awards and research funds, and Arthur agreed to the plan and offered funding from the Royal Consortium.
  • Arthur supported expanding universities, particularly in New Guinea and Australian Timor, with a target of more than 50 formal institutions by 1923.

Ch. 517Surpass France in Four Years, Catch Up to England in Eight

The chapter outlined Australasia’s Four-Year Plan, including its economic ambitions and investments in infrastructure, water, and medical services. It argued that postwar weakness in France, Britain, and Russia gave Australasia an opportunity to rise among the world’s leading powers, while Russian immigrants increasingly identified with Australasia.

  • Australasia regulated medical licensing and clinic inspections while expanding its network of large and small hospitals.
  • Prime Minister Kent projected continued growth in government revenue and the economy, with Australasia expected to join the world’s top five industrial, economic, and military powers.
  • The government planned to continue building roads and railways and to develop reservoirs and hydroelectric stations to address future water and energy needs.
  • The chapter contrasted France’s devastated industry and Britain’s wartime industrial growth with slowing global production and postwar labor shortages.
  • Intelligence reports estimated that Russia’s annual steel output had plunged from 4.23 million tons before the war to about 400,000 tons, as revolution, civil war, occupation, and influenza wrecked its industry.
  • Russian immigrants began declaring themselves Australasian and supporting the Australasian Government amid Russia’s political chaos.

Ch. 518Public Security Department Reform; Expanding the Staff Department

Arthur reorganized Australasia’s Public Security Department and separated the Staff Department from the Ministry of Defense as part of his plans for national security and military expansion. The chapter ended with the new institutions assigned distinct peacetime and wartime responsibilities, while military finances remained under the Treasury Department.

  • Arthur outlined plans to develop Australasia during the postwar recovery and future economic crises, aiming to strengthen the country while other powers weakened.
  • Arthur told Minister Robert that the Public Security Department would expand into the Police Department, Rescue Department, Armed Guards Department, and General Police Department.
  • Arthur planned for the Armed Guards to protect Australasia’s land and maritime borders, with the Maritime Armed Guards operating patrol boats and gunboats.
  • Arthur separated the Staff Department from the Ministry of Defense, assigning Thomas as Chief of Staff and Raul as Defense Minister.
  • Arthur assigned the Staff Department responsibility for military appointments and wartime command, while the Ministry of Defense handled logistics and peacetime military administration.
  • Arthur kept military finances under the Treasury Department to prevent the armed forces from gaining control over the monarchy and government.

Ch. 519Russian Capital Influx

Australasia began its Four-Year Construction Plan, drawing rapid investment from Russian capital fleeing the civil war. Arthur welcomed the investment while keeping foreign capitalists under government control, and personally received a Russian count to reassure investors.

  • The Cabinet set the military budget and prioritized naval expansion as Australasia launched its Four-Year Construction Plan.
  • Russian nobles and capitalists invested in Australasian industries, attracted by political stability, commercial opportunities, and ties to Russian communities and royalty.
  • Russian investors established or acquired businesses in heavy, chemical, light, and food industries, with some planning to sell goods into Russia.
  • Arthur welcomed the influx of capital, expecting it to boost economic growth, while warning that disobedient investors could lose their businesses to the Royal Consortium.
  • Arthur received a Russian count with influence in financial circles, reassuring Russian investors about Australasia's commitment to their capital.

Ch. 521The Influence of Capital

The influx of Russian investment accelerated Australasia’s Four-Year Plan while prompting the government to enforce labor protections and steer new businesses toward underdeveloped industries. Arthur welcomed the economic boost but remained wary of capital’s political power, relying on the Royal Consortium and control over currency to keep it in check.

  • Foreign investment in Australasia rose to more than 27.35 million Australian dollars in the month after the Four-Year Plan was announced.
  • The government required Russian-funded factories to meet Australasian labor laws and worker-protection standards before opening, while offering limited tax reductions for priority industries.
  • Russian investment and acquisitions were expected to expand large enterprises, circulate money through society, and help close gaps in Australasia’s industrial development.
  • Arthur judged that capital could influence governments and drive wars, so he remained wary of capitalists despite welcoming their investment.
  • Arthur relied on the Royal Consortium, Royal Bank, and control over currency issuance to limit capital’s influence over the Australasian government.

Ch. 522Six Great Military Regions

Australasia’s Staff Department divided the country and its territories into six military districts, assigning troops and air forces to each while strengthening key naval regions. Arthur retained ultimate control over military plans and senior officers, and the chapter left the new system poised for deployment as aircraft became common across the armed forces and government.

  • The Staff Department replaced the homeland-and-colonies arrangement with six military districts, each with its own headquarters and staff.
  • The Homeland, New Zealand, Pacific, New Guinea, Northern, and Persian Gulf Military Districts received designated forces, with 135,000 troops stationed in the Homeland Military District.
  • The Ministry of Defense and Staff Department assigned naval forces chiefly to the Homeland, Pacific, and Persian Gulf districts and distributed aircraft across all six districts.
  • Australasia planned to raise district commanders to lieutenant general and the Minister of Defense and Chief of Staff to general as the expanded command structure took shape.
  • Arthur retained approval over major military plans and command authority in exceptional circumstances, keeping the military and its newly created nobles under his rule.
  • Military and government use of aircraft spread, prompting the establishment of airfields to improve communication between military districts.

Ch. 525Agricultural Planning

Arthur inspected Timor’s agricultural development and colonial indigenization efforts, while Robert and Philip reported on rising crop output and population. He left Timor’s officials with a four-year target for indigenization and ordered Governor Frank to report progress every two months.

  • Arthur backed Robert’s Four-Year Plan to expand Australasia’s arable land to 42 million acres and grain output to 20 million tons.
  • Arthur visited Australian Timor in August 1919 to inspect the colony’s indigenization and agricultural development.
  • Robert told Arthur that Timor had about 440,000 acres of arable land and expected grain production to reach 95,000 tons that year.
  • Philip reported that Timor’s population was about 123,000 and could grow to 300,000 within the Four-Year Development Plan.
  • Arthur reviewed Timor’s immigrant housing arrangements and ordered its government to complete indigenization within four years.
  • Arthur instructed Governor Frank to report Timor’s situation every two months and coordinate with the Cabinet Government if problems arose.

Ch. 526Interference

Arthur toured Timor’s livestock and transportation industries before the chapter shifted to the World League’s decision to intervene in Russia’s Civil War. The meeting approved an 850,000-strong coalition, leaving the powers preparing to support Tsarist Russia against Soviet Russia.

  • Arthur toured Sir Henry’s ranch, praised the honored rancher, and inspected Timor’s growing roads, railways, and automobile use.
  • Arthur considered the profits from Benz automobiles and the rising value of oil, as Australasia prepared to explore and extract petroleum in the Persian Gulf Territory.
  • At a September 1919 World League meeting, Russia’s representative Glen Vasilyevich appealed for aid in the Russian Civil War.
  • Billy Grey and John Yandali backed intervention, and the World League voted overwhelmingly to send forces against Soviet Russia.
  • The coalition assigned troop commitments totaling 850,000, with Britain pledging 200,000 troops to land at Danzig within three months.

Ch. 527The Way Out

The World League intervened in the Russian Civil War, blockading Russia and bombing Moscow while its coalition forces prepared to arrive. Soviet Russia mobilized for a desperate defense, while Nicholas II relied on promised aid and secured a retreat route to Siberia.

  • On September 13, 1919, the World League announced it would send 850,000 troops to intervene against Soviet Russia and began blockading Russian ports.
  • On September 20, World League aircraft bombed Moscow and dropped leaflets urging Soviet citizens to surrender to Nicholas II's government.
  • At a Five-Person Presidium Meeting, Lev Davidovich Bronstein estimated Soviet Russia had less than a thirty percent chance of victory, and Alexei Ivanovich Rykov reported that food could last a little over a year.
  • The Soviet leadership ordered the army and government to mobilize and prepare for the World League's attack.
  • Nicholas II learned that World League aid would arrive within three months, confirmed that food supplies could last until the next summer, and checked that his escape route to Siberia remained secure.

Ch. 528Technology Research

Arthur discussed the Russian Civil War and Australasia’s plans for its currency and scientific research. The chapter ended with the Royal Academy of Sciences pursuing projects including nuclear research and missiles, which Arthur considered vital to the nation’s future strength.

  • Queen Dowager Marie asked Arthur when Australasia’s army could reach Russia, and he told her it would take at least two months.
  • Arthur considered how foreign powers, including Australasia, benefited from the Russian Civil War and how the Australian dollar could gain strength from gold reserves.
  • Arthur planned a currency reform and commemorative coins for Australasia’s fifteenth anniversary, aiming to make the Australian dollar independent and backed by gold.
  • Arthur met Einstein and Tesla in late September 1919 and asked about the Australasia Royal Academy of Sciences’ research.
  • Einstein led nuclear research while Tesla oversaw power transmission projects, as the academy pursued hundreds of studies across civilian and military fields.
  • Arthur prioritized nuclear, missile, and rocket research as essential to Australasia’s military deterrence and technological development.

Ch. 529Britain's Government Crisis

Prime Minister Lloyd George discussed Britain’s domestic and colonial unrest with Foreign Secretary Grey, including the Egyptian uprising and the weakening loyalty of British troops. He ordered efforts to win Australasia’s support, pressure France, and watch Japan, leaving Britain reliant on Australasia to help contain its mounting crises and Japanese ambitions.

  • Lloyd George and Grey reviewed unemployment and unrest in Ireland, Egypt, and other parts of the British Empire, while British soldiers’ grievances weakened the government’s ability to suppress uprisings.
  • Grey told Lloyd George that Egyptian leaders would not cooperate and the garrison lacked fighting spirit, so Lloyd George ordered emergency funds to stabilize the troops and propaganda efforts to support the government.
  • Lloyd George instructed Grey to establish contact with Australasia and secure its support in the World League, seeing it as Britain’s most valuable ally.
  • Grey explained that France was occupied with its own economic and colonial problems, and Lloyd George ordered him to increase pressure on the French until Britain resolved its crises.
  • Grey warned Lloyd George that Japan was drawing closer to the United States and expanding its influence in the Russian Far East, and Lloyd George hoped Australasia could help contain it.

Ch. 530Policy toward Germany

Britain sought to reduce Germany’s reparations so the country could recover enough to counter France, and proposed the cut at the World League meeting. France rejected the proposal, while Britain tried to win over smaller nations by arguing that a weaker reparations burden would make payments more reliable.

  • British officials identified Germany as the only European power capable of restraining France and planned to reduce its reparations from twenty billion pounds to roughly fifteen billion pounds.
  • At the October 1919 World League meeting, the British representative proposed the reduction, while the Australasian representative remained indifferent and the Russian representative hesitated over the choice between reparations and British support.
  • The French representative rejected the proposal, arguing that Germany’s financial troubles did not justify reducing the compensation owed to the victorious nations.
  • The British representative urged smaller and medium-sized nations to support the cut, warning that Germany might otherwise go bankrupt and stop paying reparations.

Ch. 531Pension Insurance

John urged small and medium-sized countries to support reducing Germany’s reparations, while Arthur left the decision to the World League. Arthur then focused on creating pension insurance for Australasia’s aging population and avoiding the population and social problems he saw in Britain and France.

  • John argued that the World League would protect smaller countries’ reparations and persuaded some representatives to consider the proposal to reduce Germany’s reparations from 20 billion pounds to 15 billion pounds.
  • The first meeting ended without a decision, as the representatives needed instructions from their governments, and the British Government expected negotiations to continue for some time.
  • Arthur received the meeting report and maintained his position of neither supporting nor opposing a reduction in Germany’s reparations.
  • Arthur and the Ministry of Civil Affairs focused on establishing pension insurance so workers and the government could fund support for the elderly.
  • Arthur considered Britain and France’s falling birth rates and harsh working conditions, and aimed to prevent Australasia from suffering similar problems or falling under the control of large capital.

Ch. 532Philippines in Action

Australasia began construction on Leonora Industrial Base Phase IV, using Indigenous labor to expand its industrial capacity. In the Philippines, Manuel weighed his position among the independence factions as he awaited news from Australasia and planned how to secure its support.

  • Australasia began building Leonora Industrial Base Phase IV, a vast project designed to employ more than 750,000 workers and strengthen the country’s industrial output.
  • The government conscripted hundreds of thousands of Indigenous people from Sulawesi for backbreaking labor at the construction site.
  • Edmund reported to Manuel that his Philippine Revolutionary Army had gathered more than 2,000 men and was better armed than during the Philippine-American War.
  • Edmund identified Walid Jadali’s Philippine Free Army and Sandro Botticelli’s Philippine Independent Legion as rival factions, with about 500 and 1,000 men respectively.
  • Manuel considered how to win Australasia’s backing and gain the greatest influence in the Philippine Government after independence.

Ch. 533Suburban Conference

Australasian intelligence officer John met with Manuel, Walid, and Sandro to secure their cooperation in a Philippine War of Independence, offering weapons and international backing. The leaders left with confidence in the plan, though the shipment’s division among their factions remained unsettled.

  • John told Manuel, Walid, and Sandro that the world powers were distracted and the Philippines had an opportunity to declare independence.
  • Manuel asked what support Australasia would provide, and John promised 50,000 rifles, machine guns, artillery, ammunition, and shells for the revolutionaries.
  • Manuel worried that the three factions would compete over the weapons shipment, while the other leaders also considered how to secure their share.
  • John said Britain and France would support the Philippine War of Independence through the World League, which he expected to deter the United States.
  • Sandro learned that the weapons shipment would reach Manila within a week, and John urged the leaders to recruit in secret.
  • Walid asked how the revolutionaries would counter the American fleet, and John promised that Australasia’s fleet could intervene after they defeated the American garrison.

Ch. 534Naval Arms Limitation Treaty

As the third wave of influenza spread worldwide, Britain proposed a naval arms limitation treaty at the World League, along with demands for German reparations relief and American compensation. The powers agreed to investigate industrial, economic, and naval strength before setting limits, delaying the treaty for at least two years.

  • Arthur ordered Australasia's departments to prepare for influenza's return, while the government planned to expel Sulawesi's indigenous people gradually, including some infected people sent to the Dutch East Indies.
  • The third wave spread through Europe, the United States, the Dutch East Indies, and the Philippines, causing deaths and intensifying anti-American resentment among Filipinos.
  • Britain proposed reducing Germany's reparations, limiting the world's navies, and demanding an American explanation and compensation for the influenza outbreak.
  • Most World League members supported seeking compensation from the United States, while the naval limitation proposal divided the great powers and left France wary.
  • Arthur did not oppose the proposal, and the powers agreed to assess each country's industrial, economic, and naval strength before setting proportions, making a treaty unlikely for at least two years.

Ch. 535Chapter 518

Arthur reviewed Australasia’s 1919 development data, which showed that the influenza had slowed immigration and construction but caused far fewer infections and deaths than overseas. The figures also revealed strong population, industrial, and economic growth, though the chapter left Australasia facing the challenges of integrating recent immigrants and expanding markets for its industry.

  • The influenza forced Australasia to suspend much of its immigration and halt the fourth-phase construction of the Leonora Industrial Base, while fewer than 100,000 people were infected and just over 600 died in the final three months of 1919.
  • Australasia canceled its 1920 National Day activities and encouraged people to stay home, and the government released national development statistics to reassure the public and attract immigrants.
  • Arthur reviewed a population of 21,694,618, noting that immigration accounted for most of the growth and that the government was limiting Russian arrivals while encouraging newcomers to identify with Australasia through land, housing, and jobs.
  • Australasia reported increased steel production and growth in its chemical and civilian light industries, while the government looked to the Dutch East Indies, the Philippines, Europe, and East Asia as markets for its industrial output.
  • Australasia recorded a 1919 Gross National Product of 2.758 billion US dollars, economic growth above 10%, and fiscal revenue of 188.7 million Australian dollars.

Ch. 536Football King's Cup

Arthur planned an international football tournament in Australasia to increase the country’s influence and the Royal Family’s popularity. He tasked FIFA president Hisshoeman with preparing a plan and promised substantial funding, leaving the event’s organization to move forward.

  • Arthur reviewed Australasia’s growing public spending and the Royal Family’s wealth, then decided to use a major sporting event to boost the country’s international influence.
  • Arthur chose football because the World Cup did not yet exist and asked FIFA to organize an international tournament in Australasia.
  • Hisshoeman met with Arthur and explained that European and American football associations could be attracted by substantial prize money.
  • Arthur instructed Hisshoeman to prepare a plan, offered the National Stadium and possible new stadiums, and pledged an initial budget of five to ten million Australian dollars.

Ch. 537The Wanderer in the Desert

Arthur organized the first Australasia Football King's Cup, setting its format, prizes, schedule, and FIFA-based entry rules while Australasia prepared for naval investigations and oil exploration. The chapter ended with Rig's expedition settling into the Persian Gulf Territory desert to begin searching for oil.

  • Arthur established the King's Cup as an international football tournament, offering generous prizes and planning a sixteen-team main event in October 1920.
  • Arthur ordered Butler Kent to publicize the competition abroad, and FIFA became responsible for approving participating national football associations.
  • Arthur welcomed foreign teams investigating Australasia's industrial and economic capacity while keeping important military industries off-limits.
  • On January 27, 1920, Rig led an armed exploration team into the Persian Gulf Territory to survey its oil reserves and prepare for development.
  • Rig's team set up camp at a promising site, and Rig voiced confidence that they would find oil.

Ch. 538Exploration and Secrecy

Rig's exploration team discovered oil near the Persian Gulf coast, prompting Australasia to continue surveying while limiting extraction and keeping the find secret. The team received five days of leave as the government weighed the discovery's strategic value against regional control and relations with Britain.

  • Rig ordered his team to survey the oil field and Kyle to report the discovery to headquarters and request assistance.
  • The Australasian Government and Cabinet decided to continue exploration, conduct limited extraction, and conceal the oil discovery as much as possible.
  • Australasia's leaders sought to confirm the region's reserves and secure control of the territory while avoiding unrest and damage to relations with Britain.
  • Rig's team received about five days of leave to rest in nearby cities before continuing its exploration work.
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