Not really true.
The French were used to the British being the number 1 power on the continent.
Depends on whether or not you count them as part of Europe. There were (and actually still are to some degree nowadays) trains of thoughts about the British Isles being apart from Europe itself, somewhat similar to how there was/is debate on whether or not Russia counts as part of Europe.
If it makes you happier, though, simply amend "continent" to "continental mainland", instead. The overall meaning, I hope, should have been clear enough.
And? I really don't understand why my outlining the real French politics and concerns means that Germany can't also have real politics and concerns.
My issue was with your phrasing, which as I pointed out read as rather severely pro-French, anti-German, making it sound like the Germans were bloodthirsty barbarians who had to be taught the meaning of diplomacy by the poor, gentle French. Hence why I pointed out that many of those points work in reverse, as a reminder that from the German perspective, it's the French who also have a history of military aggression.
I really do not see how the Brits and French can end up in a war with the Soviets without Germany getting pulled in also. At which point Germany becomes the battlefield of Europe and that is really, really bad for the German people.
How about instead we work for world peace and get filthy rich by selling people machine tools instead?
Stalin has a pretty extensive list of irredentist claims in Europe alone. If the French ally with Poland - which would not be an unlikely move for the French to make against a resurgent Germany; for example if Austria, the Sudetenland, or Danzig are annexed, even via plebiscites - and the Soviets move against it or its neighbors, France could easily be drawn into a collision course with the USSR, bringing the UK with it.
On the UK's side, they had a fairly long history of conflicting strategic priorities with Russia, and a fair number of the latter's priorities will be inherited by the USSR. For example, Russia wanted control over the Dardanelles, while the British priority was to keep the Dardanelles out of Russian hands. Similarly, both had a habit of competing for influence in Central Asia.
Overall, there are quite a number of potential points of conflicts between the Soviets and the Entente.
As for working for world peace... while it'd be nice, I simply don't see it happening. There's simply too many points of contentions or conflicting interests around the world; in Spain civil war is brewing, Italy and Japan both want to build/expand their own empires, Stalin is looking to extend his influence and weaken the western powers, the locals in southeast Asia want independence from their colonial overlords, and so on, and so forth.
The best we can do, in my opinion, is try and stay out of it for as long as possible, and benefit from it as much as we can. If we can also prevent some potential conflicts from breaking out, then all the better.
Germany in OTL was so strong because it got hella lucky and got to look all of Europe for an astoundingly low cost in loss of life, then looted it thoroughly, then enslaved the working population to keep his mad war going and turned all its export industries over to arms production!
And it might've benefited from it in the short-term, but what you and others seem to forget is the long-term cost. Simply trying to fend off Allied bomber raids alone tied up more than a million men, tens of thousands of guns and searchlights, and hundreds of millions of shells. Not to mention the thousands of aircraft with their pilots and ground crews, and their expenditures in ammunition, fuel, and spare parts.
Overall, according to some sources nearly 25% of the Nazi's total war production was devoted to protection against Allied air raids. And even with that massive expenditure of resources, they still suffered significant damage to their industry and infrastructure, with the production of tanks, trucks and aircraft dropping by about a third, and the production of aviation fuel almost stopping entirely.
And all of that is without considering the additional hundreds of thousands of men tied up with occupation and anti-partisan duties, resources invested into the Atlantic Wall, resources invested into the navy, or the troops assigned to campaigns in North Africa or the Balkans.
Altogether, the conquests might've made Nazi Germany stronger in the short-term, but in the long-term the war against the Allies made the whole thing a net loss. Without those conquests, Germany might be weaker on paper, but not being at war with the Allies means it would be able to focus the entirety of its strength on the Soviets, with said strength potentially being comparatively higher than what the Nazis could bring to bear at the Eastern Front OTL.
Japan was behind the tech curve in 1945 after fighting WW2 since 1938. Funnily enough, that meant they had a lack of resources to keep up in R&D. Also, they weren't able to import the needed alloying metals to make good steel for tank armour. At the point we are in the quest, Japan is producing tanks competitive with those being used by European powers and are powering ahead in military technology. If they don't end up at war with either the USSR or the USA, there's a good chance they'll be able to get nuclear bombs in the 50s as they have some very good nuclear physicists.
Of course, if Germany isn't ratcheting up tensions in Europe, then the border clashes the Japanese and Soviets had in OTL could well end up turning into a big war as Stalin sees if he can run the Japanese out of Manchuria and Korea. Odds are he will, but the Japanese can give the Soviets a tough fight.
Well, I said that they were "behind the tech curve", but it's probably more accurate to say that they had differing priorities. The tanks they had were good enough to deal with the forces of the Chinese, and ships and planes were more important for their naval war against the Allies. As a result, tank development received a lower priority until later in the war, at which point the Allies' strategic bombing and naval and aerial dominance quickly made such efforts fairly moot.
If their main enemy is the USSR instead, then yeah, I could see them coming up with some better tank designs. I'm less convinced of Stalin's capability to throw the Japanese out of Manchuria and Korea, though. Even with the Trans-Siberian Railway, the Soviets would be fighting at the end of a very long supply line, while the Japanese supply line would be a great deal shorter. Additionally, the mountains in the north of the Korean peninsula make for great defensive terrain.
I could see the Soviets driving the Japanese out of Manchuria, but whether they'd be able to do the same with Korea would be much more of a toss-up, in my opinion, and heavily depend on what sort of outside factors (such as additional belligerents on either side) might be in play.
So where are the Japanese getting the money to buy in any bulk? Because the US sure isn't going to be offering them any loans. The UK can't afford to offer any large and risky loans and in any case, doesn't want to upset the US by being too friendly with Japan. France will be busy with internal troubles and worrying about us.
So that leaves Germany. Now what do you think our chances are of seeing any loans to Japan repaid? And do you really want to risk pissing off one of Germany's few allies at this point?
The main possibility would be barter trade; exchanging military supplies for raw materials, manufactured goods, or the like, for example. That's how Germany conducted a fair amount of its trade to circumvent its financial difficulties OTL, from what I remember, with a fair amount of success.
Credit is another option; Japan is rather unlikely to win the war, yes, but even if the Soviets drive them out of both Manchuria and Korea, it's very unlikely that they would be capable of staging a successful invasion of the Japanese home islands.
I agree that we don't want to alienate the US by being too close with Japan, but if the main confrontation in East Asia is between them and the Soviets, it might make the US a lot less anti-Japan, because it'd halt and even reverse Japanese encroachment into China (which was one of the biggest contributors to deteriorating relations OTL, from what I remember). It might even turn the US somewhat pro-Japanese, because they wouldn't want for the Soviets/Communists to take over all of China, either.
It would be very difficult to visibly reverse the effects of the Treaty of Versailles without doing something about Alsace-Lorraine, especially since the far right will remain a very large power in the Reichstag for the foreseeable future, but by the same token, France has fought extremely hard for this land and the idea of making any concessions to the Germans regarding it would be extremely problematic, maybe even to the left of French politics.
Getting any sorts of concessions from France regarding A-L is going to be pretty much impossible in the near future.
The Sudetenland is tricky. It is again, quite blatantly German, something like 90% if I recall, plus an uncomfortable German majority exclave in Brunn. They wanted to unite with Germany in real life, and I don't see that being different here. Accepting this would be impossible for the Czechoslovak state to accept for the same reasons as in real life. It leaves them almost indefensible and deprived of a sizeable amount of their industry. I'm honestly of the mind of going for a plebiscite. The Czechs have made no friends of the Poles or Hungary. Their French ally probably wouldn't be able to deny a plebiscite, since this is an actual legitimate concern of the Czechoslovaks potentially oppressing the Sudeten Germans. This would be a very good diplomatic victory, perhaps soothing the right and showing the populace that we can stand up for ourselves through peaceful means.
I think our best bet in this regard would be to push for something akin to a nation-wide plebiscite. It would make the whole thing a less obvious land-grab than if we only asked for a plebiscite in the Sudetenland, could lead to an earlier Czech-Slovak split that might save some headaches in the long run, and it might actually net us some points with the Poles, because IIRC there were some small strips of Czechoslovakian land inhabited by Polish majorities or large minorities. The possibility to gain those lands via plebiscites might make Poland more inclined to agree to plebiscites in other areas, or other treaties we might want from them, at some later point.
On the extremely off chance that Austria attempts Union with us, why not?
Honestly, I consider it pretty much a given that the Austrians will concede to or seek unification with Germany at some point. It even named itself "The Republic of German-Austria", before the Entente explicitly forbade a union between Germany and Austria in the Treaty of Versailles and the Treaty of Saint Germain, and forced it to rename itself into the "Republic of Austria". Austria's national identity as separate from German only really came into its own post-WW2.
The main issue will be to actually get the chance to hold a plebiscite in the first place, since while most of the populace would be in favor, the Entente, Italy, and the fascists poised to take power in Austria would all be opposed to a unification between Germany and Austria. We'll have to do a lot of sucking up to the Entente/UK and Italy, and work to undermine the Austrian fascists and get them out of power, before we'll have a chance to pull this off.