Under the agreed terms of the Twenty-One Demands with China, the Japanese government had the right to station its troops in the area around the South Manchurian Railway, a major trade route between the two countries, in the Chinese region of Manchuria. In September 1931, a section of the railway was lightly damaged by the Japanese Kwantung Army as a pretext for an invasion of Manchuria. The Japanese army claimed that Chinese soldiers had sabotaged the railway and in apparent retaliation (acting contrary to orders from Tokyo, ) occupied all of Manchuria. They renamed the area Manchukuo, and on 9 March 1932 set up a puppet government, with Pu Yi, the former emperor of China, as its executive head. This new entity was recognised only by the governments of Italy, Spain and Nazi Germany; the rest of the world still considered Manchuria legally part of China.