Time flies, and with the leisurely ringing of the New Year bell, time enters 1938.

The war in the Far East continued. Under pressure from the Soviet army, the Japanese army gave up Xia Ujinsk in the Far East and retreated to the east of the Greater Xing'an Mountains, but refused to give up the territory of Outer Mongolia that had been occupied. The Soviet army confronted the Japanese army on the Far East and Mongolia, which instead restrained the Japanese army's great military strength.

The Soviet army simply stopped its military operations against China, watched the tiger fight, and even began to negotiate with the Beiyang government behind the scenes. Due to the sudden reduction of pressure on the Soviet Union, Beijing was able to transfer its troops south, which temporarily formed a stalemate with the Japanese army. After the Japanese captured Nanjing, the Japanese navy was blocked due to the blockage of the waterways between Jiangyin and Zhenjiang, and the Japanese navy was temporarily unable to move upwards. After the attack on Dangtu was blocked, it also stopped its attack.

Beijing has recruited more than three million new recruits in various provinces, and its current total strength is close to 5 million, which is basically three times that of the Japanese invading China. However, the newly formed part still needs adjustment and training, and there is no ability to counterattack at present. With the arrival of the New Year, except for local battles, the entire frontline began to become silent.

Due to orders from the East, the tank production lines of the four Austro-Hungarian tank factories that have been relocated after the war: Linz Imperial Standard Automobile Tractor Manufacturing Company, Steft Automobile Company, Isleia Internal Combustion Engine and Automobile Manufacturing Company, Steyr-Disier Engine and Automobile Manufacturing Company have all started again.

Since the post-war collapse, the Austro-Hungarian Army only retained the army organization of 550,000 troops of four armies, so only seven armored divisions were retained. Although countries realized the importance of tanks and armored vehicles during the European War, in fact, military equipment technology developed slowly in the twenty years after the war. So far, the performance improvement of tanks equipped by the Austro-Hungarian Army was not obvious compared with that during the European War. Except for the use of welding technology to replace the riveting process with body and turret manufacturing. The engine and armor performance improved, the firepower and main gun caliber were almost no improvement compared with that during the European War.

The Austro-Hungarian Army did not attempt various multi-turret tanks like other countries. Currently, there are two main tanks equipped: the PT-25 light tank equipped with 37mm/l43 tank guns and the PT-28 medium tank equipped with 57mm/l45 tank guns.

Unlike the tanks of various countries at this time, the tanks of various countries were equipped with gasoline engines. Austro-Hungarian tanks and armored vehicles have been using Steyr diesel engines from beginning to end. Although the maximum power is only 310 horsepower, due to the large torque, the maneuverability can meet the maneuverability of 46 kilometers of roads and 28 kilometers of off-road requirements required by the Army Department. Relatively speaking, the maneuverability is still excellent among tanks of various countries.

The entire Austro-Hungarian army, including the Marine Corps, was equipped with about 2,600 tanks, not a large number. In Europe, the number of equipment was less than that of Germany and France. The Germans were equipped with about 3,100 tanks. However, they were equipped with about 2,000 various tank destroyers and other transformed tanks, which actually hindered their tank equipment.

The Germans were always able to create some strange but not very practical armored weapons. Lee Haydn had no choice but to do so. He could only try his best to prevent the Austro-Hungarian Army from being disturbed by German equipment.

What worried Lee Haydn was the rapid increase in the Soviet-Russian armed forces.

Although the heavy industrial bases in Ukraine and Donets and oil fields in the Baku region were lost during the European War, the Russians lost 40% of their heavy industry and population. Their strength was greatly weakened. But Russia was large and wealthy after all, after two five-year plans. Especially after 31 years, with the large-scale introduction of Western industrial technology and machinery and equipment, Russia successively built five emerging steel bases in the Ural region and the Kazakh Republic. With the discovery and development of the Siberian oil fields and the Turkmen oil fields in the lower reaches of the Ural River, the Soviet industry, especially the heavy industry, has developed rapidly.

By 1937, the Soviet Union's steel production exceeded 10 million tons, surpassing Britain to become the fourth largest industrial country in the world. With the development of industry and the strengthening of the economy, the Soviet Union's military strength was also growing rapidly.

At present, the Soviet army has maintained a huge army of 2.4 million people. With the rapid development of industry, especially military industry, the Soviet army has equipped nearly 8,000 tanks and more than 12,000 combat aircraft of various types, with an astonishing scale and number. With the increase of military power, Zhuyashvili's ambitions are gradually expanding. The war in the Far East was actually a military temptation, and the Soviet Union was testing Germany and Austria's reaction. Unfortunately, Germany and Austria did not have any substantial actions except for verbally expressing resentment of the Soviet army's invasion of the Far Eastern Republic.

This further encouraged Zhuyashvili's arrogance.

Under the instigation of the Soviet Union, civil strife broke out several times in Ukraine, the Don River, the Caucasus Federation and the Ottoman Empire. Although the situation was calmed down, the above-mentioned countries were not stable, and strikes or demonstrations were often initiated by the Social Labor Party. Over time, the various countries became increasingly unstable.

Especially the Ottoman Empire, the Anatolian region and the Mesopotamia were actually semi-independent, and the Istanbul regime barely maintained its dominance with only German support.

The news of American aircraft appearing on the Chinese battlefield made Li Haidon attach great importance to it. It seems that Roosevelt is still back on the old path of improving his arms to enhance his domestic economy. The Americans hope to instigate a war and sell arms to achieve the goal of recovering the economy. In the Far East, behind them, they inevitably faced the German and Austrian forces and the American forces. The British were helpless to watch the Japanese destroy their carefully built sphere of influence in the lower reaches of China's Yangtze River. At the same time, they hoped that Japan and Germany and Austria would directly break out in conflicts, but they did not want to harm their own interests. They were in a contradictory and complicated mood.

Marshal Holty, the Minister of Navy, arrived at Rhodes, and the emperor spent most of his time in the manor on Rhodes every month. The emperor revised the shipbuilding plan for the second half of 1938 submitted by the Admiralty, canceled the construction plan for all six heavy cruisers, hoping to convert them into medium-sized aircraft carriers.

"Marson, a heavy cruiser with a displacement of 15,000 tons is costing 90 million kroners, and a medium-sized aircraft carrier with a displacement of 25,000 tons is costing the same. If that's the case, why should we waste money to build these heavy cruisers? Do you think a heavy cruiser can be stronger than a medium-sized aircraft carrier?"

"This is not, it's just that the Admiralty believes that aircraft carriers need escort warships."

"But what the aircraft carrier fleet needs is air defense cruisers, not heavy warships equipped with 210mm naval guns. I don't think 210mm naval guns can be used as anti-aircraft guns. We already have plans to build 10 large air defense light cruisers. The construction of these heavy cruisers is still caused by traditional thinking. Some people still think that our aircraft carrier fleet will fight the enemy within the range of the naval guns."

"Well, your majesty, I accept your point of view. But how is that special Navy funding done?" Marshal Holty refers to the gold that General Yankeel intercepted from the Soviets in Biscay. At the beginning, Lee Haydn promised to use half of them as special Navy funding and reward the Navy. However, he was obstructed by the parliament.

"There is no way, the Imperial Parliament cannot pass, but I have reached a compromise with the MPs, and mortgaged them to the Imperial Bank, which can be allocated to the Navy first, but the return of principal and interest must be returned from the Navy construction funds after 1947."

"Will that affect the future construction plan of the navy?"

"But I think the current situation is still more tense, Marshal, we need to quickly increase the strength of the navy." Lee Haydn said, "The current world situation is very dangerous, and we may be involved in a big war again."

Holtie was shocked. This was the first time he had heard the emperor clearly mentioning that the empire might be involved in war. Although the naval intelligence department had mentioned the danger of war many times, most senior military generals believed that no one in Europe currently had the ability and courage to challenge the new order established by Germany and Austria.

"Your Majesty, although this is possible, the situation is not that critical, right?"
Chapter completed!