German and Soviet diplomats meet in Warsaw, capital of the autonomous kingdom of Poland within the Habsburg empire. German units are already disembarking at Helsinki and the German Baltic Fleet has moved as far as Riga to pose an additional threat. State of the art German fighters and dive-bombers are also cross-flying the Baltic to land at Finnish airbases.
German and Soviet negotiators come to a compromise. This is condemned by Finnish Prime Minister Mannerheim who resigns in protest. The incoming Prime Minister, the relatively inexperienced Juho K Paasiviki bows to the wishes of the king and the Germans and authorises his representatives to sign the Warsaw Peace.
Finland cedes Viborg and much of Karelia as well as areas of its Eastern frontier but retains Pechanga/Petsamo and its important gateway to the Arctic Sea. Paasiviki soon afterwards signs an agreement with the German Empire to allow the establishment of a German naval base in this region, hoping in so doing to guarantee its future security.
In Helsinki, and on a speaking tour of the kingdom, former Prime Minister Mannerheim condemns the new government's growing dependency on Germany, and accuses them and the ailing King of being puppets for the German Empire.
The Japanese ambassador to London , Shigemitsu Mamoru , meets with Lloyd George and his Foreign Secretary, Sir John Simon, to discuss the growing sense of crisis in the Far East ; resources from Malaya and Borneo are vital to Japan's industrial economy and the government in Tokyo is seeking a guarantee of their availibility as it stands off against increasing military-nationalist pressure. Britain refuses to do any more than reaffirm her stance on non-entanglement; remaining outside of the alliance systems beginning to grow up in the area is Britain's primary aim.
Mamoru is recalled for crisis talks with Prince Fumimaro Konoe's government in Tokyo; his meeting with Britain's Liberal leadership is regarded as a failure and increasingly the voices of the ultra-nationalists are beginning to make themselves heard in political circles.
U.S. President William J. Donovan makes a state visit to Australia, meeting with Australian premier Robert Menzies in a series of meetings designed to strengthen the U.S.-Australian alliance. President Donovan tours the building works underway at Sydney designed to give Australia a first class naval base, and goes on board the small carrier Australia on a journey up the Eastern coast to Darwin. Met everywhere by enthusiastic crowds President Donovan returns to the U.S.A. after three weeks, his visit having been a resounding success.