Round 3: Japan's air attacked Pearl Harbor and damaged the U.S. Navy.
Germany continues to push east. Germany's income (170) and Soviet income (171) are now virtually tied. In the research phase Germany gained a star towards Panther tanks tech. One star left to go.
In the Soviet research phase, the Soviet player gained Advanced 1 tech. A very good advance for later. It also had a randomly chosen tech give it one star towards Improved Sub. Useless. The Soviets must withdraw from Smolensk, as the Germans in that area are too strong. If the Germans stack Smolensk, they will be only two moves away from Moscow. The Soviet Union loses all its cash when Moscow falls for the first time. But after that, the Soviet Union is allowed to collect income normally. All the same, the Soviets would strongly prefer not to lose Moscow. If Moscow does fall, the Soviet Union would be reduced down to one research center, at least until it can be restored.
Japan continues conquering southeast Asia and building factories there. However, Tonkin is under pressure from the British. Japan chooses not to build a factory there as it would be too much risk. Japan has finished off the fleet at Pearl Harbor. Also it has conquered Manila, despite the trenches the U.S. had been building there. This was important, because now the U.S. no longer has a good spot to build a factory in that region. The U.S. is prevented from building any factories while at peace, which is why there was no American factory built there thus far. Japan continues to make slow progress in China. It conquered Hong Kong. It would have liked to begin its invasion of the East Indies, but its local transports were needed to ship units to Tonkin, or to invade Manila. Japan built four more transports, because there were too many units not being shipped off Japan.