Oil troubles

Negotiations with Smith were going nowhere, a fact well-known among German diplomats. Even Akado's personal involvement could not sway the German Navy's fleet of destroyers to extract a sincere apology from the British. However, recognizing their misstep, the British offered Germany a concession: 100,000 barrels of crude oil at a 50% discount, contingent upon Germany's commitment to the east. After the agreement was reached, Akado hurried back from the Ministry of Foreign Affairs to his official residence, as he was scheduled to meet with two significant figures. One was Boss, the de facto head of the Krupp plant.

Upon arriving at his residence, Akado handed his coat and gloves to his aide, Gore, and immediately inquired of his head secretary, Sindra, "How long has Mr. Boss been waiting?"

"He has just arrived, Head of State," Sindra responded promptly.

Both parties, pressed for time, were unwilling to waste a moment on trivialities. Led by Sindra, Akado proceeded directly to the designated meeting room. Upon entering, Boss stood and greeted him with a salute, exclaiming, "Long live the Head of State!"

"How is the factory doing?" Akado asked, gesturing for Boss to dispense with the formalities.

"Head of State, the company has initiated mass production of synthetic rubber across various locations. Though slightly inferior to natural rubber, it suffices for part production," Boss reported with a mix of pride and humility, proud of his team's research efforts.

"And the production volume? Is it sufficient for our troops?" Akado inquired, his expression tinged with concern.

"I'm afraid not, my head," Boss replied cautiously. "We've optimized the entire industrial chain to mitigate the rubber shortage, but the demand remains exceedingly high."

"I'm aware," Akado said with a hint of frustration. "We've even reduced the tire width standard for civilian cars twice to conserve rubber, and there are ongoing studies for smaller urban car tires. I've heard unofficial reports that the military vehicle tires have also been reduced by 1 cm in width, correct?"

"Yes, sir. According to your directives, we need to double our military equipment to outfit additional infantry divisions, but our production capabilities are stretched thin," Boss explained.

"Is there no alternative?" Akado pressed.

Boss shook his head, "The tires and other rubber components are consumables, my head. We could dip into our spare parts reserves to boost the number of rubber products in active service, but that would leave us vulnerable when it comes to replenishment."

"Allocate one-tenth of the spare rubber products," Akado decided firmly. "It's better to use them now than to have them sit idle."

Boss nodded in agreement. "That should allow us to increase the output of vehicles and tanks over the next two months. Fortunately, the British Navy's blockade only affects Middle East oil imports and has not significantly impacted rubber material supplies."

Reflecting on his earlier decision to dismiss the Coalition Arms Control Committee, Akado realized the conservative diplomat Streysman's opposition might not have been entirely misguided. But it was too late for regrets.

After concluding his meeting with Boss, Akado met with Krupp, who had arrived from Berlin amidst the turmoil. The two entered the meeting room, and Akado reminisced about the days of easy camaraderie with Krupp, feeling a pang of nostalgia amidst the rush of years.

"Recent events have led to some local disruptions, but thankfully, there's been no major impact on military production. Your efforts on behalf of the German people are deeply appreciated," Akado said, pouring drinks for both himself and Krupp.

"My head, you've been quite decisive lately," Krupp began, a note of concern in his voice. "Declaring war against the Junker nobility and dismantling some major monopolies was a bold move, one not even the German emperor would have dared. Why didn't you consult me?"

"It was a necessary decision," Akado replied with a rueful smile. "They were undermining the party and threatening our unity. The SS had to take drastic measures."

Krupp nodded, understanding the political necessity. "The cleaning process has begun, and it's too late to stop now. But it's had some positive effects—commodity prices are falling, and the market has become more dynamic."

"That's exactly what we needed," Akado said, pleased. "The Great German Party is here for industrious businessmen like you."

"However, our current oil situation is dire, and our enemies are exploiting this weakness to incite unrest," Krupp added, his frustration evident.

"What's the status of oil drilling in Austria?" Akado inquired, changing the subject to a more pressing issue.

Krupp brightened, "The funding of about 200,000 US dollars is secured, and operations are fully underway. But it will be some months before we see substantial oil output."

"Our success hinges on Romania then," Akado concluded, nodding gravely. He then shifted the conversation to military advancements, specifically the improvements to the Tank 4 model.

"The upgrades are going smoothly," Krupp reported. "The new tanks are equipped with 75 mm extended-barrel cannons capable of penetrating any active tank's armor. We've also enhanced the observation and targeting systems without complicating the design."

"What about converting the older tanks?" Akado asked.

"It's more about quantity than quality right now," Krupp explained. "Our focus is on equipping as many tanks as possible for both the eastern and western fronts."

"That makes sense," Akado agreed. "Let's prioritize deploying these tanks to the troops. The older models can go to the SS, and the newer ones to the National Defense Force. How are the gun productions coming along?"

"Very smoothly," Krupp smiled. "The G43 rifles are being produced rapidly. We've already supplied about 110,000 to the National Defense Forces, primarily to paratroopers and squad leaders."

Satisfied, Akado concluded the meeting. "Visit the oil fields in Hanover. They've been operational for some time, though output is low. See if improvements are needed, then report back to me."

Krupp saluted and exited, "Long live the Head of State!"

After the First World War, the nations of Eastern Europe were eager to reclaim their legendary ancestral lands. Poland and Romania were prominent examples, both receiving special attention from Britain and France due to their proximity to the Soviet Union. In an attempt to bolster these nascent Eastern European states against Soviet influence, Britain and France supported territorial expansions for Poland and Romania. However, this strategy inadvertently weakened these nations by expanding their borders into areas dominated by other ethnic groups.

Post-war, Romania acquired Transylvania, a region primarily inhabited by Hungarians and Germans; Bukovina and Bessarabia, areas with significant populations of Rosenians and Ukrainians; and South Dobrogea, which was predominantly Bulgarian. This expansion left Romania surrounded by resentful neighbors: a vengeful Soviet Union, a disgruntled Hungary, and an embittered Bulgaria. These neighboring states would eventually play significant roles in what would become a dramatic transformation for Romania.

In the aftermath of the war, Romania swiftly rebuilt its economy, particularly in the oil sector, but politically, the situation was dire. Although it had established friendly relations with Poland, Czechoslovakia, and Yugoslavia—the so-called "Little Allies"—political instability was brewing. In 1924, Codreanu, a former student movement leader, founded the Iron Guard, a radical nationalist organization. The Great Depression from 1929 to 1933 provided a fertile ground for radical groups like the Iron Guard, which attracted support with its populist "one person, one acre" slogan. Despite its growing popularity among dispossessed farmers and disaffected urbanites, the Iron Guard's influence in parliament remained minimal for some time.

However, the geopolitical threat intensified. Hungary and Bulgaria were manageable, but the Soviet Union, aided by German engineering, was slowly regaining its strength across the Transnistria River. Though its military efficiency improvements were modest, the scale and equipment of the Soviet forces were undeniably formidable. Meanwhile, Romania was still in the midst of modernizing its armaments. The Soviets, however, were hesitant to directly confront Romania, which was shielded by its British and French allies, particularly as they were wary of German intentions.

The rapid rise of Germany post-war took Romania by surprise, especially its eagerness for foreign intervention, which exceeded the expectations of the Romanian king. When German envoy Merkel arrived, many Romanian politicians anticipated making concessions. However, Merkel was preceded by an unexpected visitor from Hungary, a nation that had inexplicably shifted its allegiance to Germany. Whether this was due to the Hungarian leader's folly or foresight remained unclear.

Merkel's visit was not a sudden move but the culmination of two decades of strategic German efforts involving numerous institutions. These efforts had established a significant pro-German influence in Romania, particularly through Antonescu. With Antonescu's assistance, Merkel easily persuaded the Romanian king, leading to a staggering deal: 80% of Romania's oil reserves were sold to the British at double the price, while the remaining 20% and the rights to future oil purchases for two years were secretly sold to Germany.

The British, having invested heavily, were furious when they discovered they had been outmaneuvered by Romania at the last minute. In retaliation, they seized the first shipments of oil from Romania. The Germans, seizing the opportunity, advanced the funds to cover the British payment, delighting the Romanian king. Moreover, Germany detained two British customs battleships at the Kiel naval port, pressuring the British government for an explanation of recent provocations.

Ultimately, the British capitulated, focusing on consolidating their gains from Middle Eastern oil while recognizing Germany's eastern ambitions. Britain declared non-interference in Romanian affairs and apologized for the incident with the German ships. In response, Germany continued to strengthen its naval capabilities, commissioning the construction of two super battleships and outfitting them with 16 381mm caliber cannons from the Krupp factories. Meanwhile, two Zeppelin-class aircraft carriers were also being assembled nearby, their construction sites bustling compared to the quieter areas where the British ships were being built.

This series of events significantly altered Romania's military landscape. Germany compensated Romania with early models of tanks and the world's most advanced ME-109C high-altitude fighters, in exchange for oil. The Romanian army rapidly modernized, incorporating equipment such as the 38t tanks from Czechoslovakia and various small arms. Even outdated German equipment like old gas masks and complex-design armored vehicles represented a significant upgrade for the Romanian forces.

Antonescu, who had been the Minister of the Army since 1933 and was initially considered pro-British, had shifted allegiance to the pro-German Iron Guard. Influenced by German penetration and persuasion, Antonescu believed that aligning with Germany was Romania's best guarantee of protection in the impending war. Upon taking office, he swiftly signed a treaty allowing German troops into Romania under the guise of military training, thereby binding Romania closely to Germany's war chariot.

However, the international political landscape was quirky, with each leader adopting grand titles: the Japanese leader called himself the Emperor, Mussolini was the Duce, Franco the General, and now Antonescu proclaimed himself the "Leader" of Romania. This alignment of titles underscored the absurd theater of power playing out across Europe.

The British, upon learning of German military shipments to Romania, were dismayed to find Romanian troops being equipped with German M25 steel helmets and Mauser 98k rifles, integrating them into the German defense forces of a decade earlier. This large-scale rearmament in Romania led to shortages in the German supply lines to the Far East, frustrating Chiang Kai-shek's efforts to strengthen his forces.

Amidst these developments, Akado Rudolph, reflecting on his challenging circumstances, mused on the relative ease with which other nations seemed to navigate their geopolitical challenges. He envied the simplicity with which some could reclaim lost territories or manipulate international relations. Yet, despite the complexities and pressures of his position, Akado was relieved that Romania's alignment with Germany offered a clearer path forward, allowing him to focus on strengthening the German defense forces without external constraints.

As he looked to the future, Akado was determined to use his knowledge to spur the development of German military technology, ensuring that the war machines under his influence would be as formidable as possible. This strategic focus was not just about achieving military superiority but about securing a future in which Romania, under German influence, could navigate the turbulent waters of international politics with strength and resilience.