In September 1931, the Japanese Army—acting on its own without government approval—seized control of Manchuria, an anarchic area that China had not controlled in decades. It created the puppet government of Manchukuo. Britain and France effectively controlled the League of Nations, which issued the Lytton Report in 1932, saying that Japan had genuine grievances, but it acted illegally in seizing the entire province. Japan quit the League, Britain took no action. The US Secretary of State announces that it would not recognize Japan's conquest as legitimate. Germany welcomed Japan's actions.