Early diplomatic triumphs
Alliance with Japan
Main article: German–Japanese relations
In February 1938, Hitler finally ended the dilemma that had plagued German Far Eastern policy: whether to continue the informal Sino-German alliance that had existed with the Republic of China since the 1910s or to create a new alliance with Japan. The military at the time strongly favoured continuing Germany's alliance with China. China had the support of Foreign Minister Konstantin von Neurath and War Minister Werner von Blomberg, the so-called "China Lobby" who tried to steer German foreign policy away from war in Europe.[156] Both men, however, were sacked by Hitler in early 1938. Upon the advice of Hitler's newly appointed Foreign Minister, the strongly pro-Japanese Joachim von Ribbentrop, Hitler chose to end the alliance with China to gain an alignment with the more modern and powerful Japan. In an address to the Reichstag, Hitler announced German recognition of Manchukuo, the Japanese-occupied puppet state in Manchuria, and renounced the German claims to the former colonies in the Pacific held by Japan.[157] Hitler ordered an end to arms shipments to China, and ordered the recall of all the German officers attached to the Chinese Army.[157] In retaliation for ending German support to China in its war against Japan, Chinese Generalissimo Chiang Kai-shek canceled all Sino-German economic agreements, depriving the Germans of raw materials such as tungsten that the Chinese had previously provided. The ending of the Sino-German alignment increased the problems of German rearmament, as the Germans were now forced to use their limited supply of foreign exchange to buy raw materials on the open market.
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