Time flows like water, and as such, March of 1925 swiftly arrived. With the National Defense Force's size increasing, Akado found himself deeply concerned about how to covertly sustain such extensive military expenditures. The existence of the Coalition Arms Control Committee meant that the German government was restricted from allocating substantial funds to military spending. Although the budget set for a 100,000-strong force was sufficient to support over 200,000 troops, the actual numbers had swelled to nearly 320,000, stretching the National Defense Force's finances thin.
To alleviate some of the financial strain, Akado's internal German Merchant Group had generously donated tens of millions of Deutsche Marks to revitalize the German Wehrmacht. Additionally, Akado's private company had supplied the military with nearly 1,000 cars and 3,000 motorcycles. Despite these contributions, the financial demands of maintaining a 300,000-strong force were immense.
During this period, Chiang Kai-shek, leading the Huangpu Military Academy Teaching Corps, organized the first eastward expedition, placing a substantial order with Germany for 200 million rounds of rifle and pistol ammunition and an additional 30,000 m25 steel helmets to support future military expansions. This transaction was partially settled using scarce rubber and brass from China, a country embroiled in perpetual warfare and heavily reliant on loans from nations like the United States and Britain for arms purchases. However, the creditworthiness of China had been stretched thin, and the flow of funds was not as robust as before.
The German Defense Force, a staunch supporter of the Chinese Kuomintang group, found itself unable to provide further financial aid due to its own pressing developmental needs. Germany was grappling with its own financial challenges, including long-standing war reparations owed to France and Britain and even domestic expenses. In light of these difficulties, Chiang Kai-shek and Akado engaged in private telegrams to discuss their respective predicaments, leading to the arms deal that involved bartering with rubber and brass.
Amidst these complexities, Akado received a visit from a notable diplomat from the Japanese Empire, Kosuke Yamashita. The meeting was arranged in a private apartment in Berlin, a location chosen by Akado for its confidentiality, given the sensitive nature of their discussion.
"Hello, Mr. Kosuke Yamashita," Akado greeted, ensuring the setting remained informal yet secure.
"Hello, General Akado," replied Yamashita, who as a senior aide to the Japanese Foreign Minister, was well-versed in diplomacy and fluent in German. His polite bow, a deep 90-degree angle, was a mark of respect although somewhat out of place in Germany.
"Mr. Yamashita, bowing isn't common etiquette here in Germany. A handshake would suffice for our next meeting," Akado suggested with a smile, subtly hinting at a more casual interaction the next time they met.
"The handshake signifies equality, and given my position, I wouldn't presume such familiarity," Yamashita responded humbly, his head still bowed.
Laughing, Akado waved off the formality. "No, Mr. Yamashita, we can surely be friends in private, can't we? You Japanese tend to overdo formalities, which I'm not accustomed to."
"Etiquette is simply that—etiquette. How could it be considered hypocritical?" Yamashita inquired, looking puzzled.
"My friend, to be blunt, if I lacked strength, you wouldn't respect me regardless of how much you bowed. Conversely, if I were powerful enough to instill fear, you would be nervous even to shake my hand, wouldn't you?" Akado remarked, half-joking yet candid.
"General Akado, you are quite the character. You seem to understand our Japanese ways very well. If you weren't such a distinguished Westerner, I might even mistake you for one of us," Yamashita said, nodding in agreement.
Internally, Akado was frustrated by the comment, thinking to himself about the absurdity of being compared to a Japanese. Yet, he maintained a diplomatic smile, choosing to steer the conversation towards the purpose of Yamashita's visit without revealing his irritation.
"We Germans prefer straightforwardness. What brings you to Germany, Mr. Yamashita?" Akado asked, his tone light yet expectant.
Yamashita lowered his head again, a gesture of deference when asking for assistance. "It's no secret. I am here concerning the situation in the Far East and the trade between your country and China," he admitted.
"The Chinese market is vast and appealing. I believe companies from any nation would desire to engage with such generous Chinese businessmen," Akado responded thoughtfully.
"Speaking frankly, General Akado, your country's arms trade with China has come to our attention. We have information that a German Hercules-class transport ship loaded with ammunition recently docked in Guangzhou, which affects the strategic interests of the Great Japanese Empire in the region," Yamashita stated, his tone turning serious.
"And where did you get this information? We do supply arms to China, but I'm not aware of the specifics of recent transactions. Are you sure your sources are accurate?" Akado feigned confusion, probing for more information.
Yamashita nodded confidently. "Our intelligence networks in China are quite robust. This information is precise. We even know that the Kuomintang forces under Sun Yat-sen and Chiang Kai-shek possess more than 900 artillery pieces, not the mere 100 reported externally. Additionally, they have sold close to 500 cannons to various warlords. Most of these are advanced howitzers manufactured by your own Krupp factories. Chiang Kai-shek has also secretly amassed dozens of aircraft and is constructing an airfield near Guangzhou. Shall I continue, General Akado?"
Akado felt a surge of frustration at the Japanese's extensive knowledge of Chinese affairs. It seemed there were no secrets the Japanese couldn't uncover, making him question the effectiveness of Chiang Kai-shek's counter-espionage efforts. It was almost as if the Japanese had a window into every confidential military development in China.
"Mr. Yamashita, while it's true that Germany has sold some weapons to China, your country has no right to meddle in our commercial activities, including arms trading," Akado stated firmly, his displeasure evident. "Even the Coalition Arms Control Committee cannot curb the profit-driven actions of our arms dealers."
"Japan could potentially collaborate with Germany on many fronts. We are prepared to purchase significantly more arms and materials than China," Yamashita proposed, presenting his strongest argument yet.
"And how do you know we would sell to you? Our Great Japanese Empire is capable of producing its own weapons!" Yamashita countered, his voice filled with a mix of pride and challenge.
Akado smirked, unimpressed. "Your weapons are inferior; German weaponry is the finest in the world."
Yamashita, taken aback by the blunt dismissal, shifted tactics. "What if the navy of the Great Japanese Empire increased patrols along the southeastern coast of China, intercepting suspicious smuggling vessels, and happened to seize some of your country's transport ships?"
"Ha! Why don't you try it? What can you really do to us?" Akado laughed heartily, his confidence in German ingenuity and the strength of their international alliances clear.
Yamashita, frustrated yet unable to express his annoyance openly, knew that German interests were intertwined with those of Britain, the United States, the Soviet Union, and even the Netherlands. Open confrontation would be akin to political suicide.
"So, General Akado, how can we prevent Germany from exporting weapons to China?" Yamashita finally asked, his tone a mixture of resignation and inquiry, as he sat back down.
"Don't always focus on China's issues. Does Japan not have its own allies in the West?" Akado replied, his smile masking his strategic thinking.
"Yes, General Akado, you are a true friend of the Great Japanese Empire in the Western world," Yamashita managed to say, though the words nearly choked him.
"So, there's nothing left to discuss among friends, right?" Akado pressed further.
"Absolutely, General Akado," Yamashita agreed, his emotions a whirlwind of frustration and amusement.
"Then let's move on to discussing Chinese weaponry," Akado suggested, extending his hand with a friendly smile.
Yamashita, feeling cornered yet obligated, shook Akado's hand firmly, sealing the complex interplay of diplomacy and strategy that had unfolded between them.
The bustling naval dock at Kiel Port was a hub of activity and strategic discussions. "The German naval dock in Kiel port requires four cruiser orders. If Japan doesn't buy them, maybe the Chinese will be interested in naval construction," Akado remarked, a hint of strategy lacing his tone as he addressed Yamashita Konosuke, who sat across from him.
Yamashita Konosuke, feeling somewhat cornered by the circumstances, responded with a resigned nod, "This is no problem, as long as the quality passes, Japan is willing to purchase 4 German cruisers." He had previously agreed to provide Akadol with US $5 million in funds to compensate for the profits Germany would lose by ceasing the export of helmets and bayonets to China. In addition, he had agreed to purchase 100,000 Mauser rifles at twice the international price, which were to be equipped for a local garrison in North Korea composed of local people. The ammunition for these rifles would also be sourced from Germany. Consequently, Japan would import a bullet production line to be installed on the outskirts of Pyongyang City, along with another 100 million rounds of German standard 7.92 mm caliber bullets. Akado had also "generously" offered 30 outdated Makqin heavy machine guns to Japan. With no other choice, Japan had to purchase 70 obsolete biplanes, because if they did not, Akado threatened that Germany would sell the new Fokker biplanes to China. Although the old aircraft would be modernized by Germany to carry small torpedoes, they were hardly better than the aircraft currently in use by Japan.
Yamamoto's visit to Germany had thus turned into a reluctant concession to Akkado, who had negotiated and extracted a much-needed $17 million from Japan. At least on the surface, Japan had completed the arms trade blockade against China, further crippling the already lagging Chinese industry.
"Don't be so pessimistic, Mr. Yamashita," Akado said with a reassuring smile. "We will send engineers to Japan to help the Japanese Imperial Navy manufacture the world's most advanced submarines. I personally assure you that these engineers are the finest experts in Germany."
Kosuke Yamashita's expression brightened slightly upon hearing this. After all, another crucial purpose of his visit to Germany was to secure German support to develop the submarine technology of the Imperial Japanese Navy.
"We want your engineers in the Netherlands!" Yamashita stated after a moment's thought, specifying, "It must be a technical engineer who has participated in the production of frontline submarines."
"Three," Akado extended three fingers. "We will send 30 technicians to support your submarine construction, but our technical engineers in the Netherlands can only number three."
"We need 70 submarine manufacturing technicians, at least half of whom have participated in submarine construction in the Netherlands," Yamamoto countered, determined to secure the best for his country.
Akado pondered for a moment, then stretched out five fingers. "Five. A technical expert group of 50 people, with 5 technical backbones involved in the construction of submarines in the Netherlands. There can be no more."
"We..." Yamamoto started to protest but was cut off by Akado.
"We in Germany deeply regret the affairs of the Jiaozhou Bay in Far East China. Many Germans now have resistance to Japan. These are already the limits we can provide, and there can be no more," Akado stated with a hint of dissatisfaction.
Yamamoto Kosuke felt an impulse to explode in frustration. In this negotiation, Akado had leveraged the Japanese act of sending troops to Shandong as a matter of fact. Yet, Japan was in a position of needing to ask for help, and the irony of being disadvantaged by a victory they had fought for was both infuriating and laughable.
"Okay! Five! There can't be fewer! When I go back to Japan, these people will go with me," Yamashita said, his expression one of resigned acceptance.
"It's no problem, but since these engineers and designers are valuable resources, we don't recommend them to take the same boat. After all, don't put all your eggs in one basket, right?" Akado remarked with a knowing smile.
"In addition, we also need cooperation in the field of aviation," Yamashita continued. "We want to cooperate with German airlines to produce new torpedo attack aircraft. This will also require General Akkado's assistance."
"Which company do you hope to work with?" Akadomin asked, feigning ignorance of the answer.
"We intend to cooperate with Henkel, as we have previous experience working together," Kosuke Yamashita replied, smiling.
Akado nodded. "Henkel is a very good aircraft manufacturing company and is also very famous in Germany." Ernst Henkel's aircraft production company, established in 1921, had stayed in Germany following the war. Henkel, a successful aircraft designer during World War I, had founded the company which openly violated the Versailles Peace Treaty. It had signed cooperation agreements with the United States and Japan to produce a type of equipment suitable for waterborne reconnaissance, which could be equipped on board ships in these countries. Parts of these aircraft were produced at a factory in the small town of Warnemünde on the Baltic Sea, then shipped to Sweden for assembly.
"But I think we should have more extensive cooperation," Akado suggested with a sly smirk, like a devil tempting someone into a trap. "Only in this way can we demonstrate the friendly and mutual trust in technical cooperation between our two countries."
"What do you mean?" Yamashita asked, slightly puzzled by Akado's insinuation.
"We have many advanced weapons factories, all under the surveillance of the Joint Arms Control Committee, which makes our cooperation full of difficulties," Akado explained, spreading his hands in a gesture of helplessness. "And you happen to be members of the Joint Arms Control Committee, aren't you?"
"What do you mean? Do you hope that our Great Japanese Empire will withdraw from the Joint Arms Control Committee? This is impossible," Yamashita responded, shaking his head.
"Of course not, but we hope that the Japanese military officers in the Joint Arms Control Committee will provide intelligence to several of our companies to provide enough information to deal with surprise inspections," Akado clarified, looking intently at Yamashita Kosuke.
"This is no problem. We can provide information to Henkel for the benefit of both of us," Yamashita nodded, then added his own condition: "But we only provide intelligence for companies that have military cooperation with us. You yourself can't control it."
"Then let's discuss what equipment you are interested in," Akado immediately said to Yamashita, eager to explore further opportunities for collaboration.
"Our navy needs a high-speed reconnaissance aircraft. Henkel provided some data. This is an export version of a high-speed reconnaissance aircraft he secretly developed for you. We are very satisfied and plan to order a physical machine," Yamashita revealed.
"No problem at all," Akado responded generously. "We also need 30 luxury cars produced by Daimler Benz Motors and 500 high-powered car engines. High-powered! Large enough to drive a very heavy car."
"No problem! I will provide you with five more of the latest models of Mercedes-Benz luxury cars in private," Akado offered, not skimping on his own bribe, and extended a hand, saying, "Not on the account."
Yamashita nodded and said with satisfaction, "Thank you for your generosity! General Akado! I very much hope to be your friend without words! Tomorrow afternoon, I will have my naval attaché in Berlin come here as a guest, and whatever he needs to do, you speak."
After sending off Yamashita Kosuke, Akado's face seemed to be filled with a smile as if wearing a mask, and he waved frequently to the car going down the mountain. On the side, Gore asked, squinting, "Sir, do you really intend to abandon such a large arms market in China? General Sikter is still on the Chinese side."
"Sickert suggested that Mr. Chiang Kai-shek build a military industrial enterprise in China, so in the next step, our export to China will not be based mainly on weapons and equipment, but on exporting simple military production equipment," Akado waved and smiled, saying, "They're fooled."
"What about the two transport ships still in port? The bullets are all ready to be shipped to China. There are about 200 million rounds, and there are 2,000 Mark Qin heavy machine guns," Gore leaned to Acador's ear and asked, "Cancel it?"
"Are you stupid? Cancel it? We refunded the money we received to our other Chinese friend Mr. Yan Xishan?" Akado froze, then reproached, "Is the handling fee cheap? Do you want to pay the bill?"
"What should I do?" Geer asked in a daze.
"Of course, they continue to sell to China!" Akado pretended to be displeased. "Change the departure time of these two ships. They left the port last night, didn't they?"
"Yes!" Geer smiled.
In the car, looking at the retreating Akado, the eyes of Kosuke Yamashita also became sharp, and he snorted coldly: "Ba Ga, this damn German."
"Yamashita, since this German is very unfriendly, why do you still agree to his later request?" Yamashita's lieutenant turned back and asked from the co-pilot seat.
"I promised that Japan would keep an eye on the Allied Arms Control Committee for him, and in turn, they could not keep an eye on how many weapons and equipment were produced in Germany?" Kosuke Yamashita sneered, "The more companies he works with, the more detailed information we get about Germany."
"Well, that makes sense," the adjutant nodded suddenly, understanding the strategic depth of Yamashita's decision.
On the other side, after smiling, Gore asked again, "Sir, then our companies let the Japanese help to keep an eye on the Coalition Arms Control Committee. Isn't the number of Japanese weapons and equipment we have in mind?"
"How many?" Akado laughed loudly after he could no longer see the car of Yusuke Yamashita: "How big are the real Henkel and Daimler Benz? I lend the information to the Japanese. None of them will believe it. Hum."