A determined campaign of assassination and coup attempts by ultranationalist junior officers left the Japanese leadership cowed by 1936. The budget for fiscal year 1937 proposed a 40 percent increase in spending, and a war was required to justify this increase to the Japanese public. Despite the alliance with Germany, the army leaders had no stomach for war with the Soviets. Instead, they suggested war with China, whose army was not nearly as formidable. The Nationalists and the Communists responded to the threat by forming a "Second United Front" in December 1936. All the same, China was ill-prepared when the Japanese finally launched their offensive in July 1937. Japan quickly overran a vast region and cut off China's access to seaports. The Nationalists retreated to Chongqing in the southwest, the Communists to Yan'an in the northwest. A puppet state led by Wang was set up in Nanjing in 1940. | A determined campaign of assassination and coup attempts by ultranationalist junior officers left the Japanese leadership cowed by 1936. The budget for fiscal year 1937 proposed a 40 percent increase in spending, and a war was required to justify this increase to the Japanese public. Despite the alliance with Germany, the army leaders had no stomach for war with the Soviets. Instead, they suggested war with China, whose army was not nearly as formidable. The Nationalists and the Communists responded to the threat by forming a "Second United Front" in December 1936. All the same, China was ill-prepared when the Japanese finally launched their offensive in July 1937. Japan quickly overran a vast region and cut off China's access to seaports. The Nationalists retreated to Chongqing in the southwest, the Communists to Yan'an in the northwest. A puppet state led by Wang was set up in Nanjing in 1940. |