Navy: Go for submarines and naval bombers, with subs having priority over the bombers. As for your surface navy, forget about upgrading it with attachments. Not worth the IC, since even fully upgraded you won't stand a chance against the big British fleets. Use them to repel an invasion, or better yet, use them to escort your transports further and further south along the African coast. Enemy naval presence is probably light around there, allowing you to eliminate the Belgian and Free French holdouts in the Congo. Who knows, maybe you can get to South-Africa. Awful terrain and infrastructure though.
Air Force: Very expensive to build interceptors and CAS. Should be low priority given that their use is situational. Really, Air Force in these games is a toy for the big boys. Lesser powers shouldn't even try.
Army: while converting your manpower into infantry, (or MTN) is often the best strategy for any country, in this case it is not so clear-cut. Your main challenge could well be to actually engage your enemy, since a Spanish invasion of Britain is out of the question for several years at least. Building more INF with your limited industry would then be unwise. One trick you could do is to build militia to guard your beaches, freeing up INF for offensive duties. You can always upgrade the MIL to INF.
Re: Navy, sounds reasonable enough. While I have techteams with the Submarine Design specialty, I don't have any techteam with the Submarine Tactics component, so doctrinal research will be slow unfortunately. I'll benefit from German and Italian blueprints though.
I think you and The Brazilian Slaughter are right regarding CAS. On the other hand, the reason why I want to research interceptors technology is that I'm afraid British strategic bombers will further reduce my IC since I'm in range of their bases. The good news is that Spain is far enough from Britain and other British-held territories so that they won't be able to provide fighter cover for their bombers. As a result, even a small-size relatively modern interceptor fleet protecting northwest Spain should be able to intercept incoming unescorted bombers, inflicting serious losses and helping mitigate the IC cost of potential British strategic bombings.
Also, once I've researched Interceptor 1937 and Interceptor 1940 technologies, I'll be able to upgrade my starting 121 Fiat CR.32 (Interceptor 1930) to newer models - if I can't afford the IC cost, at least they will get some automatic upgrade when reinforcing. In the end, I could find myself with three wings of modern interceptors, which should be enough to cover the northwestern approaches to Spain.
Good idea with the Militia but I think I'm actually going to use mostly Garrison units to guard beaches since I will also be in need of their high suppression capabilities - I also benefit from a -15% Garrison build time and cost bonus (see 1st post).
I actually need to post something about that since I've decided to slightly revise my land forces OOB to include some regiment-sized guarrison units, both for better historicity and for game-balance reason.
I think that would depend where he will go.
North Africa seems like a given (get the damn English off the Med!), but what's next?
- Help the Nazis through Crimea or the Caucasus?
- Middle East and India?
- Invade Turkey and other neutralfag minor country if they remain neutral?
- Grand Armada II, The Revenge?
So far, my goals are limited to conquering my claimed territories. Then, we'll see if I can maybe go beyond that and give a hand to the Italians in the Eastern Mediterranean and/or expand further into Africa.
But the most likely outcome is that, with my limited forces, I'll have to switch to a mostly defensive position to protect the territories I've conquered. In that situation, my role would simply be to keep the Gibraltar strait closed, harass British naval units with my submarines and naval bombers, and generally attract as many Allied units as possible so the big boys (Germany and Italy) find less opposition on their way to conquer the UK and Egypt.