Uwe A. Redjac
So the rules seem to indicate that France can be neutralized by imposing Case Yellow and making Vichy a neutral inactive. This seems to be the only way to share a border with Spain for the purposes of trying to activate them with some kind of political influence.
If you refer to the use of a Treaty card on Spain then you are correct. For that one you will need to turn Occupied France into a German Dependent to be allowed to select Spain as the target of your Treaty card.
There are other effects though (certain Conditional Events for instance)that allow to apply the Influence Event without such “border restrictions”. Far and few in between, but they exist.
The normal vichy rules (if case yellow is not in effect) seem to imply that France is simply never conquered, and unless every city is garrisoned it can just start rebuilding troops. Of course, occupied france also needs to be garrisoned to present the France rises event, so the net result is a few (3 or 4?) extra detachments or 1 step garrisons. It also seems that the German player would need to occupy the areas in/adjacent to the rough hexes in Vichy territory to prevent partisan base placement. Is all this correct? Am i missing any other consequences of these Vichy rules?
What you seem to miss that if you create Vichy through Case Yellow, it will become a Neutral Country. That means their African Colonies become off limits unless someone decides to declare War on Vichy. And of course that all Vichy units stay idly off the map and not bother you. And you may even be able to seize its Fleet for Axis use.
If you create Vichy thru the Conquest of France on the other hand, Vichy will fight on right away as an Active Allied Country. So the garrison “requirements” are considerably heavier if you take into account that Vichy then can go on and raise colonials in its North African Dependents to bother you. And its Fleet will also be available for the Allies.