Drang nach Osten

In OTL, the Second World War ended in a victory for the so called United Nations, lead by the "Big Three" (Britain, America and the USSR). Since then, much ink has been spilt on how it could've ended differently: What If Germany won the War? Although people point to PoD's during the war such as a hypothetical German victory at Stalingrad or Kursk, as moments when the war could have swung in Hitler's favour,  there are also moments before the war that could've sent history down a much darker path.

This Alternate History will confront the world created by one such pre-war event, a small episode in New York, involving a speeding taxi, and a future Prime Minister of Britain...

Introduction
This will be my first major Alternate History. As a result, I would ask that people hold off the editing until I have had a chance to lay the ground work for my history. YES, I understand that Churchill being killed by a taxi is one of the oldest and probably most used ATL's there is; however, while Churchill's death is the PoD, the premise of this Alternate History is to show what might have happened after an Axis victory in WWII. With Europe and Asia divided between the Western Axis Powers (i.e. Germany, Italy) and the Eastern Axis Powers (i.e. Japan), there is a gradual break down in relations between the European Confederacy headed by Germany and the Asian Co-Prosperity Sphere headed by Japan; this is for political and ideological reasons. As a result, there is still a Post-WWII 'Cold War', with the nuclear arms of Germany and Japan poised for ultimate destruction. However, unbeknownst to Japan, Germany and her Allies are already preparing for a show down, and this 'Cold War' won't stay 'cold' for long!

Detail of events
In OTL, Winston Churchill was in New York in 1931, when he was hit and very nearly killed flagging down a taxi outside of his hotel. Looking back, it is very fortunate that he was not killed; without his dynamic leadership, the British people may not have been able to rally following the disasters in France and Norway, and with only Halifax to lead them, the Allied cause may very well have been stillborn.

In the ATL, Churchill is killed, although his death receives surprisingly little publicity. In 1939, Germany invades Poland, and the war continues very much as it did. However, without Churchill's dynamic and agressive leadership as First Lord of the Admiralty, the Royal Navy is slow to react to the threat of the German U-boats and surface raiders, and warships such as the Graf Spee savage British shipping in the Atlantic. Without Churchill's proposing of an expedition to Norway, Germany's subsequent invasion of that country is over much sooner, and important German surface warships, such as Scharnhorst, Koenigsberg, Karlsruhe, Lutzow and Admiral Hipper, are able to join their sister ship Graf Spee (in OTL, all of the previously named ships were sunk by the Royal Navy within the first few months of the war, with the exceptions of Scharnhorst and Admiral Hipper, which were severely damaged) in attacking British supply lines and their Royal Navy defenders.

On May 10th, 1940, the Invasion of France and the Low Countries, Fall Gelb, took place, as in OTL; However, with Chamberlain still in power (in ATL, there was no Norway debacle, and as a result, Neville Chamberlain is still PM when the Nazis invade the West) the BEF is not allowed to be evacuated when the Dunkirk situation presents itself. Instead, an unsuccesful attempt by the BEF and the French armies to break through the German cordon south of Dunkirk is launched, and the result is a confused blood bath which ends in the surrender of the entire BEF. To make matters worse, Chamberlain also ignore's Air Marshall Dowding's pleas not to deploy the reserve squadrons of the RAF to France (in OTL, Churchill listened to Dowding); Advancing Panzer spearheads overwhelm French airfields, and with them, the last of Britains' air defenses. In the face of plummeting morale on the home front, the collapse of Britain's armies and airforces in the field, and with the Royal Navy faltering in the face of tenacious attacks by the German Kriegsmarine, Neville Chamberlain resigns in disgrace, and is succeeded by Lord Halifax. At home, there are riots and demostrations against the government's handling of the war, and support for Mosley's British Union of Fascists rises considerably.

On June 22nd, 1940, Marshall Phillipe Petain and a French delegation meet with a German delegation, lead by Hitler, at Compiegne, France; here, an armistice is signed, ending french resistance. An unsuccessful attempt by French Generals, lead by Charles De Gaulle, to prevent these negotiations, ends in the arrest and execution of all those involved by the Germans. Days later, on June 30th, just when Goering's Luftwaffe was preparing to begin it's campaign against Britain, Prime Minister Halifax met with Hitler and Ribbentrop at Jersey, in the Channel Islands, to conclude an armistice. Troops from the German 16th Army cross the Channel on transports and land in southern England, as part of the negotiations. German Naval and Air forces converge on Scapa Flow, to ensure the demobilization of the Home Fleet (along with much of the Royal Navy, now restricted to port). In a scene reminiscent of the German Admiral Scheer's decision, at the end of WWI, almost all of the British warships scuttle themselves, before the Germans can intervene. Halifax returns Germany's WWI African colonies, and broadcasts news of the British surrender across the Empire. King George VI, along with the Royal Family and some loyal Military leaders and Politicians, flees to Canada, and calls upon the Empire to continue resistance. Within a few months, George VI's brother returns from the Carribean with his wife, Wallis Simpson, and reclaims his title of King Edward VIII. In order to appease Germany, Halifax and the Conservatives form a coalition government with Oswald Mosley's British Union of Fascists (as well as other right-wing parties), a decision lauded by many more hardcore conservatives like Lady Astor.

German troops and administrative personnel are deployed to the former German colonies of Togo, Kamerun, Southwest Africa and East Africa in the following months. German forces also annex Walvis Bay from South Africa; However, South Africa's Nazi Sympathizing Prime Minister, General Barry Herzog, does not oppose this: Most South Africans are generally Pro-German or Anti-British, and the Germans appease the South Africans, by permitting them to annex the British colonies of Bechuanaland, Southern Rhodesia, Basutoland and Swaziland; although wary of an alliance with Germany, South African Statesman Jan Smuts support the annexations, having been a supporter of appeasement and South African Expansionism in the past. On July 4th, Italian forces enter Sudan and French Chad unopposed, followed by Malta on the 9th, British and French Somaliland on August 4th and Egypt on September 11th. Previously, Italy had declared war on France and Britain on June 10th, and Mussolini's forces in Libya had occupied French Tunisia.