A section of the Japanese controlled Southern Manchuria Railway track was damaged in an explosion that the Japanese then used as a pretext to invade Manchuria and occupy the resource rich area. The USA refused to recognize Manchuria as Japanese territory and tried to go about the situation diplomatically. In December the League of Nations found Japan guilty of aggression and tried to imply economic sanctions as punishment but realized that would be harmful to more than one economy. This event was a contribution to the buildup in conflict between Japan and the US and other countries in general.
