Hell, have another part of the update.
Fall and Winter of 1938
The world went into turmoil in the past six months.
The Spanish Civil War has had a ceasefire declared and some territory swapped between them. France, Russia, and The Hegemony of Plokhoy Ostrov have thrown their support behind Republican Spain, who holds much of eastern and northern Spain, along with most of the outlying territories. The Axis-backed Nationalist Spain holds the remainder.
Speaking of the Axis, it officially formed with a set of treaties between Germany, Brazil, and Italy.
The Brazilians went on a military adventure against the Argentinians over claims that they where harboring Communist agitators that have been operating within Brazil. After a comparatively short campaign, helped along by a military rebellion within Argentina, a new fascist government has been erected and now rules the nation. Rumblings are already afoot about their joining the Axis powers.
And now, what you have all been waiting for. The home front.
Late in the year, in one of the worst storms in a good long time, the Brazilian fleet attacked. Nearly every vessel in its fleet kept our navy from attacking a swarm of transports and incurred heavy losses in the process. Six CDV M1933s where lost completely, another four badly damaged. Two Vorishkas where damaged, along with the Bychok-Pesochnik. Seven Shockwaves where lost, another six damaged to various degrees.
Thankfully, the foe suffered some losses of their own. The battleship they sent, likely the Minas Geraes herself, was badly damaged. The Skat managed to corner and sink the Humaytá, and three Pará-class vessels where sunk or damaged aswell.
From what our aircraft have been able to tell once the weather cleared the enemy has landed atleast three times the initial number of supplies and material, including tanks and aircraft, now operating from their airstrip. While the aircraft they do have are horribly inferior to our own craft, they are backed up by surprisingly large batteries of anti-aircraft guns newly emplaced in the north of the island.