The government, represented by Lord Irwin, decided to negotiate with Gandhi. The Gandhi–Irwin Pact was signed in March 1931. The British Government agreed to free all political prisoners, in return for the suspension of the civil disobedience movement. According to the pact, Gandhi was invited to attend the Round Table Conference in London for discussions and as the sole representative of the Indian National Congress. The conference was a disappointment to Gandhi and the nationalists. Gandhi expected to discuss India's independence, while the British side focused on the Indian princes and Indian minorities rather than on a transfer of power.
Support for the Rivera regime gradually faded, and Miguel Primo de Rivera resigned in January 1930. He was replaced by General Dámaso Berenguer, who was in turn himself replaced by Admiral Juan Bautista Aznar-Cabañas; both men continued a policy of rule by decree. There was little support for the monarchy in the major cities. Consequently, King Alfonso XIII gave in to popular pressure for the establishment of a republic in 1931 and called municipal elections for 12 April of that year. The socialist and liberal republicans won almost all the provincial capitals, and following the resignation of Aznar's government, King Alfonso XIII fled the country.
Luciano decided to eliminate Masseria (Lower Manhattan gang boss) . The war had been going poorly for Masseria, and Luciano saw an opportunity to switch allegiance. In a secret deal with Maranzano, Luciano agreed to engineer Masseria's death in return for receiving Masseria's rackets and becoming Maranzano's second-in-command. On April 15, Luciano invited Masseria and two other associates to lunch in a Coney Island restaurant. After finishing their meal, the mobsters decided to play cards. At that point, according to mob legend, Luciano went to the bathroom. Four gunmen then walked into the dining room and shot and killed Masseria.
Creditanstalt, Austria's premier bank with major stakes across a variety of industries, becomes insolvent after being forced to assume liabilities from three other insolvent banks, triggering a cascading effect of bank failures across Central Europe. Creditanstalt represented 16% of Austria's GDP, and could not find another institution to guarantee liquidity. 140 million Austrian schillings were lost. The collapse of Creditanstalt caused the Bank of France, the National Bank of Belgium, the Netherlands Bank, and the Swiss National Bank to begin a run on the U.S. dollar for their gold reserves, and forced the Federal Reserve to raise interest rates from 1.5% to 3.5% to maintain the gold standards, which in turn contributed to the deepening of the Depression and the second round of banking failures in the U.S. during the summer of 1931.
She arrived in India in 1929 and began her novitiate in Darjeeling, in the lower Himalayas, where she learned Bengali and taught at St. Teresa's School near her convent. Teresa took her first religious vows on 24 May 1931. She chose to be named after Thérèse de Lisieux, the patron saint of missionaries; because a nun in the convent had already chosen that name, Agnes opted for its Spanish spelling (Teresa).
According to Akira Fujiwara, Hirohito endorsed the policy of qualifying the invasion of China as an "incident" instead of a "war"; therefore, he did not issue any notice to observe international law in this conflict (unlike what his predecessors did in previous conflicts officially recognized by Japan as wars), and the Deputy Minister of the Japanese Army instructed the Chief of staff of Japanese China Garrison Army on August 5 not to use the term "prisoners of war" for Chinese captives. This instruction led to the removal of the constraints of international law on the treatment of Chinese prisoners. The works of Yoshiaki Yoshimi and Seiya Matsuno show that the Emperor also authorized, by specific orders (rinsanmei), the use of chemical weapons against the Chinese.
By September 1931, Maranzano realized Luciano was a threat, and hired Vincent "Mad Dog" Coll, an Irish gangster, to kill him. However, Lucchese alerted Luciano that he was marked for death. On September 10, Maranzano ordered Luciano and Genovese to come to his office at the 230 Park Avenue in Manhattan. Convinced that Maranzano planned to murder them, Luciano decided to act first. He sent to Maranzano's office four Jewish gangsters whose faces were unknown to Maranzano's people. They had been secured with the aid of Lansky and Siegel. Disguised as government agents, two of the gangsters disarmed Maranzano's bodyguards. The other two, aided by Lucchese, who was there to point Maranzano out, stabbed the boss multiple times before shooting him. This assassination was the first of what would later be fabled as the "Night of the Sicilian Vespers."
The internecine warfare in China provided excellent opportunities for Japan, which saw Manchuria as a limitless supply of raw materials, a market for its manufactured goods (now excluded from the markets of many Western countries as a result of Depression-era tariffs), and a protective buffer state against the Soviet Union in Siberia. Japan invaded Manchuria outright after the Mukden Incident in September 1931.
Britain leaves the gold standard, and the pound sterling depreciates by 25%. Despite warning of disaster, the departure proves beneficial to the British economy, as exports become more competitive. Additionally, the Bank of England was now free to engage in money creation, and reduced interest rates from 6.00% to 2.00%.
The October 1931 general election was a landslide victory for the Conservatives Churchill nearly doubled his majority in Epping, but he was not given a ministerial position.
The Commons debated Dominion Status for India on 3 December and Churchill insisted on dividing the House, but this backfired as only 43 MPs supported him. He embarked on a lecture tour of North America, hoping to recoup financial losses sustained in the Wall Street Crash.
Fascism remained a reactive threat, helped by controversial reforms to the military. In December, a new reformist, liberal, and democratic constitution was declared. It included strong provisions enforcing a broad secularisation of the Catholic country, which included the abolishing of Catholic schools and charities, which many moderate committed Catholics opposed.