Japan had been longing to expand their empire, and found the perfect oppourtunity to do so when a Japan owned railway was destroyed in Manchuria (China). The railway was ran by the Japanese army, and when it was destroyed in 1932, Japan accused China of sabotaging it.
This influenced the Japanese army to take over Manchuria by force, and set up a "puppet" governnment there. They even renamed Manchuria and called it Manchukuo.
China appealed to the league. Japan told the league that they hadn't been aggressive, and were acting in self-defense to keep peace with China.
It took the year over a year to asses the situation, which gave Japan enough time to advance more in Manchuria. The league had no army to send in to control the situation, and without the support of America, their sanctions were ignored. Japan was a leading member of the league and so the league had to tread carefuly with the situation.
This event showed how powerless the league was. Britain and France were focused on keeping good relations with Japan. The event showed that the league was useless for dealing with strong nations, and dictators like Mussolini and Hitler took notice of this.
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