The Brussels Conference and Panay Incident both took place in 1937 against the backdrop of rising tensions between China and Japan. China appealed to the Nine-Power Pact signatories for help, leading to the Brussels Conference. The Panay Incident nearly escalated into a global conflict but showed the world's reluctance to confront Japan.

• Background
  • China sought support against Japan.
  • Nine-Power Pact signatories agreed to hold a conference in Brussels, October 1937.
• Britain's Stance:
  • Had high investments in Shanghai, yet reluctant to confront Japan due to rising tensions in Europe.
  • Considered economic sanctions against Japan but only if the U.S. participated, which did not happen due to U.S. isolationism.
• Other Countries
  • Minimal support: e.g., Spain sent a solidarity note.
  • No concrete actions taken.
• Real-world Example
  • When a country has vested economic interests (e.g., Britain in Shanghai), it may be hesitant to engage in conflicts that could disrupt these interests.

• Background
  • December 1937: USS Panay, an American patrol boat, bombed by Japanese forces.
  • British gunboat HMS Ladybird also attacked in the Yangtze River.
• British Response
  • Considered a display of force, but only if the U.S. joined.
  • U.S. indicated minimal willingness, only if Japan committed an "outrageous" act.
  • Showed Britain's increasing awareness of U.S. isolationism and minimal support.
• Real-world Example
  • When an ally is attacked (e.g., Britain's gunboat), countries may consider joint military responses but may be hesitant if it could lead to broader conflict.