The German Peace

by Derek Pennington

  O’Donnell wasn’t finished. “There is another scenario I would like to put to you”. He paused to finish his cognac. “My family and I have a minority shareholding in a small bank based in San Francisco. The Mercantile bank of California. As you probably know, San Francisco is considered to be a well-established financial centre in the States, with a first class reputation. Not a single San Francisco based bank failed in the wake of the 1929 stock market crash.

  Mercantile Bank has been in existence for nearly a hundred years. In that time it has managed to accomplish - nothing! The family that has the majority shareholding, recently suffered a personal tragedy. Their two sons died in a yachting accident. Their business holdings have also been in decline for many years. Victims of the same inertia and mismanagement that is characteristic at the bank.

  I acquired twenty percent of the bank’s stock five years ago. I now have been asked if I would like to buy the rest.

  What would you think of the idea of your bank, and perhaps also Deutsche Bank, partnering me in taking over Mercantile and making it the best goddamn asset finance bank on the west coast?”

  James was speechless. He had been overwhelmed on this business trip. O’Donnell’s propositions had his brain racing. What opportunities! He was sold on the ideas. As always, he would have to present a detailed and well prepared proposal to the board of directors, but he was sure it would be given serious consideration. All he wanted to do now was get back to London.

  O’Donnell signed for the bill and called for a taxi to take them to their hotel. James’ excursion to America had turned out to be both profitable and unbelievably exciting. He loved his job!

  NURBURGRING - AUGUST

  The competitors were lined up on the grid waiting for the start flag on this beautiful summer day. The tension was palpable. An excited crowd of over one hundred and thirty thousand had paid to watch this, the first German grand prix since 1939.

  The French had re-introduced grand prix racing the previous month. The only official team entrant had been one car from Maserati, the rest of the field was comprised of private entrants with various makes of 1930s single seat racing cars. In the actual event the Maserati’s engine blew up half way through the race while comfortably in the lead. The race was cheekily won by a previously unknown Englishman driving like a mad man in a small but extremely fast ERA (English Racing Automobile).

  The British had also wanted to stage a grand prix this year, but the favoured circuit, Donnington, the scene of exciting pre-war races, had been requisitioned by the war department at the onset of the European War and used as a vehicle park, resulting in considerable damage. Next year they would be ready.

  In the 1930s, two German automobile makers, Mercedes-Benz and Auto-Union, had dominated grand prix racing. Although no development work had been done on their racers since 1939, both of them gamely fielded two cars each for the German grand prix. Driving for Mercedes were their pre-war drivers, the three times European champion in 1935, 1937, and 1938, Rudolf Caracciola, and Hermann Lang, the winner of the most grand prix races in 1939 before the war stopped the series. The Mercedes reserve driver was Manfred von Brauchitsch, nephew of the famous Field Marshall. Germany’s leader was at the circuit today in the hope of seeing his nephew race.

  Also driving for their pre-war employers, Auto-Union, were Hans Stuck, the 1936 European champion, and Rudolf Hasse, a previous grand prix winner.

  The Italians were represented by two famous makes, Maserati and Alfa Romeo. Both of the Italian makes had spent the previous months putting as much development as was possible into their now ageing cars. They were definitely fast, but were they reliable?

  Driving for Maserati was the highly experienced Luigi Villoresi, supported by a gifted newcomer to racing, Alberto Ascari. Ascari was being openly touted as a future world champion.

  Alfa Romeo had retained the legendary Tazio Nuvolari. Although now fifty two years old, ‘The flying Mantuan’ as he was known, was European grand prix champion in 1932. Long before that, in 1925, he had been a European motorcycle champion. Nuvolari had managed an impossible win in the 1935 German grand prix when, in an outdated Alfa Romeo, he had defeated the powerful and all conquering German cars. Even more impressive was the fact that the Alfa Romeo was not a works car, but part of a private team. The team belonged to a man called Enzo Ferrari.

  One, elderly, French Delahaye was entered, and another dozen private entrants in the smaller class completed the field.

  The three hour spectacle of noise and power was over. Unbelievably, the oldest driver in the race, Nuvolari, had actually led the race briefly before his outclassed Alfa Romeo gave up the unequal struggle and spewed its engine all over the track. Both Maseratis also succumbed to the pace, as did the Delahaye. The race was won in an impeccable display of driving, by Lang in the Mercedes. His team mate was second, and the Auto-Unions finished third and fourth.

  An impressive show of speed and reliability from the silver arrows. The German cars looked set to dominate the grand prix scene, as they had done before the war.

  KOREAN - SOVIET BORDER

  Lake Khasan is a small lake situated on the Soviet side of the demarcated Korea-Soviet border. It is only about one hundred and thirty kilometres from Vladivostok, the Soviet Pacific Fleet naval base and a strategically important Soviet centre.

  For fifty years there had been tension along the common border between the Soviet Union and the Japanese occupied territories of Korea and Manchuria. In the 1930s there had been a series of battles and skirmishes. Collectively these were known as the Soviet–Japanese border war. But things had been quiet for the past five years, even though the two powers still greatly mistrusted each other.

  Now some clever person in the Soviet army had decided it would be a good idea to send reinforcements to the Lake Khasan area, the site of a battle between the Japanese and Soviets only a few years earlier.

  In response to this move the Japanese felt they had no option but to beef up their own forces.

  It had only taken one nervous Russian sentry to start things. A twenty year old poorly trained conscript, Ivan Lushnikova, was half asleep as he patrolled alone in the early hours of the morning. Unwittingly he strayed ten metres or so, inside Korea. Two Japanese soldiers, equally tired, bored, and undertrained, were also on patrol and were walking towards Ivan, who, unfortunately for him, had been indoctrinated by Soviet stories of sneak Japanese attacks and ruthlessness.

  On noticing them as they materialised in front of him, Ivan jerked awake, levelled his rifle and fired. A pure knee jerk reaction. His bullet missed. But those of the Japanese soldiers didn’t. Private Lushnikova had two bullets in him before he could even reload. He was quite dead, and would never see his parents in his home town of Tolyatti again.

  Those three shots stirred up a hornets nest. Alarms sounded and shouting started on both sides, quickly followed by bullets. Then a Soviet machine gun opened up. This was answered by two Japanese machine guns. Within minutes the incident escalated totally out of control. It rapidly spread along a front of three kilometres. Soon artillery joined in. All the pent up hatred between the opposing forces was unleashed.

  By mid-morning, fire was being exchanged along a six kilometre front. It was only due to a shortage of artillery and shells on both sides, that the conflict remained essentially a small arms duel up to this stage. That would only last until the combatants could bring up more equipment and ammunition. Tanks were already on their way.

  By now, the ambassadors in Tokyo and Moscow were exchanging furious protest notes. An ominous development was the delivery of a note to the Chinese President by the Japanese ambassador, reminding China of their mutual defence treaty.

  Chiang Kai-Shek reluctantly accepted that he had no option but take some sort of action. He had no wish to be dragged into a war with the Soviet Union, but neither did he want to provoke the Japanese into yet another war of aggression against China. The Chinese had a mutual defence treaty with the Japanese, and
they had to be seen to be prepared to meet their obligations. He would go through the motions - slowly of course - of mobilising some troops. He sent for his army chief-of-staff, General Cheng. The Japanese ambassador was accordingly informed.

  Chiang also dictated a polite note to the Soviet ambassador, suitably expressed in diplomatic doublespeak, so that the Soviets would understand his meaning.

  Stalin understood. Basically Chiang Kai-shek was saying that China would be slow to act. The country was very concerned about events in Korea, and in terms of a defence pact with Japan was bound to support them. He avoided the use of the words ‘military support’, and made no mention of speedy action. The Chinese government hoped that the ‘border incident’ would be resolved to everyone’s satisfaction quickly.

  Stalin now ordered his army commander-in-chief to teach the Japanese a lesson they would not forget quickly. The stage was set for an enlarged conflict, with the potential for an all-out war between Japan and the Soviet Union, into which China could be dragged .

  BERLIN - THE NEXT DAY

  An emergency meeting of the Governing Council was debating the Japanese-Soviet conflict. Unbeknown to them, it was the subject of similar debates in Britain and the United States.

  Since German involvement in the Sino-Japanese war in 1941, the German Foreign Ministry and intelligence services, had maintained large Far East Sections. Their Soviet Sections had been always been large, and for a lot longer. There was considerable in-depth knowledge and expertise within these sections. It was the head of the Foreign Ministry Far East Section, Horst Steiner, who swiftly, and correctly, identified the Chinese response for what it really was. Procrastination. This caused some short-term relief about the situation. The British and Americans were accordingly informed of the German interpretation.

  The Japanese claim was that that a Soviet soldier had entered their territory and fired on one of their patrols. In the return of fire the soldier had been shot dead. The Japanese still had his body. Steiner now asked if this could possibly be a starting point for negotiation?

  It took five hours before the German ambassadors to Japan and the Soviet Union had some clarification. Two Japanese soldiers on patrol in the early hours of the morning, had come across a young Russian soldier sleepily plodding along, about ten metres inside the Japanese frontier line. As they approached him, he seemed to come awake and in what appeared to be a panic reaction, shot at them. The Japanese returned the fire and killed him. This simple accident had resulted in the current altercation.

  The Soviet Section confirmed that the stories put out by the Soviets could all easily fit in with the Japanese story, if only they would stop spewing out propaganda. Was the ever obtuse Stalin spoiling for a fight for reasons of his own?

  “That is our angle”, von Brauchitsch told the Council. “I propose a strong note from ourselves to the Japanese and the Soviets telling them that we believe it is all a big mistake, brought about by the needless build-up of troops by both sides in the area. We can also let the British and Americans know what our conclusions are.

  Simultaneously, we can help defuse the situation and give the Chinese a way out of their own dilemma by telling them that the aggressor nation cannot be determined at this stage. The first trespass appears to be by a young Russian soldier on Korean soil in error, but the first casualty was the same Russian. The unclear situation should be enough of an excuse for Generalissimo Chiang to keep China out of the conflict for the time being. He should accordingly convey that message immediately to the Japanese.

  With no early prospect of Chinese support, perhaps the Japanese will be more amenable to a ceasefire while the politicians carry on the battle with words. I propose that we advise the Japanese and the Soviets simultaneously, that they should stop fighting, reduce troop levels in the vicinity, and act a little more maturely in the future. That last bit could be put more diplomatically, of course,” he said with a wry smile.

  “If they are reluctant to stop squabbling, we could remind them we have a large volume of trade with both countries. We would not like to see it jeopardised or disrupted. Again, I am sure the Foreign Minister could word things much more diplomatically than I.”

  There were a few chuckles around the table.

  The German iron fist in the velvet glove approach worked. The Government of Japan despatched a new army commander to Korea and he quickly brought the army there, into line. The politicians agreed on a ceasefire. Casualties had been heavier on the Japanese side than on the Soviet side. The Japanese had also been pushed back nearly a kilometre into their own territory before they were able to stabilise the line.

  The Japanese army delivered Ivan’s body back to his unit showing great respect. They also handed over a letter of regret from the Japanese Field Commander. The Soviets withdrew back to the pre-conflict line, and also, very reluctantly, issued a similar letter of regret. It had all been unnecessary, but it was the Russians who had put up the best performance on the battlefield.

  Stalin had enjoyed his little game of toy soldiers! His only regret was that it was over before his soldiers could battle test the new T34 tank!

  LONDON

  Winston Churchill was having a short respite from affairs of state. He was relaxing at his country home for the weekend. His slippered feet were resting on a padded stool in front of him. There was a whisky on a small table next to him, and he was enjoying one of his favourite cigars. It was late afternoon and his thoughts drifted.

  The turnaround in the economies and security of Europe in the last four years continued to amaze him. To think that one man, his old enemy Adolf Hitler, had brought the continent of Europe, and indeed, the whole world, to the brink of the abyss! Thank God that wiser heads prevailed! He silently saluted those few Germans who had foreseen the impending cataclysm and had the courage to act. The world owes them a great deal!

  The slick way the German government defused the Japanese-Soviet border earlier this month had Churchill’s admiration. He was certainly gratified that they were so very keen on co-operating with Britain.

  The joint aircraft project, the Flightstar, had gone smoothly and was an unqualified success. The next project, the jet airliner, promised to be even bigger and better.

  The Anglo-German atomic power project was a reality.

  Churchill was content. It was time for another whisky!

  WASHINGTON

  Coincidently, Franklin Roosevelt was having similar thoughts to his opposite number in Britain. He had just finished breakfast and was having a quiet cigarette before starting his working day.

  One of his greatest fears as President, was the prospect of taking America into a foreign war. The exceptional group of men now governing Germany had saved him from this. In early 1940 he had seen no way of avoiding it. The militaristic and totalitarian regimes in Germany, Italy and Japan were hell bent on a collision course with the great democracies.

  Roosevelt lit another cigarette. He made up his mind that in his speeches during the forthcoming re-election campaign for the Presidency, he would make specific references to the ‘special relationship’ that America now had with the greatest economic power in Europe, Germany.

  ENGLAND & EUROPE

  Jamie and Katherine were in England. After Jamie had left the navy in January, they had taken a sabbatical and gone sailing. Katherine had a twelve metre sailing yacht which she had purchased and restored after leaving the Royal Navy at the end of the war.

  They had sailed from Falmouth in South West England on a blustery winter day in mid-January. They made their way across the channel and down the coast of France to an enclosed anchorage at the village of Camaret, near Brest. They remained at anchor there for a few days to allow the weather to settle. They also found some really excellent French wines at incredibly cheap prices. When they eventually left, every bit of spare space in the boat was filled with bottles of wine!

  They were lucky. In January the weather could be extremely unpleasant for sailing in the Bay of Biscay.
By the time they left Camaret, conditions had improved considerably. They followed the planned route that took them into Biscay and to an anchorage at Royan, in the Garonne river estuary near Bordeaux, for a one night stay. The next day the second part of their course was to the port of Coruna in northern Spain. After two nights in Coruna they had a brisk run down to Figuera de Foz, a small port on the Portuguese Atlantic coast. Here they rested for a couple of days, during which time they had a truly memorable barbecue of all the freshly caught sardines they could eat, for the cost of a few pennies.

  They left Figuera de Foz in light winds, but by the time they were off Cape Trafalgar a day later, and in the middle of the night, the wind had strengthened considerably. Both of them were now dressed in their foul weather gear and sitting in the cockpit anxiously keeping an eye on the deteriorating weather. The wind continued to increase in strength, and they decided to reduce sail before things got any worse. Unfortunately that is when the halyard decided to jam, and the mainsail stayed where it was.