Does this apply to the conquest of both major and minor countries?7.29.3. Morale Bonuses and Penalties
When a country surrenders there is a unit morale bonus for all units of the conquering country as well as for all similarly aligned fully active Majors, and a corresponding morale decrease for all fully active opponent Majors.
For example, if the allies conquer Syria, Tunisia etc, does it mean that all axis major countries (GE, IT, JP) will receive a morale penalty at their units? But not the axis minors (Romania etc)?
Similarily, if Germany conquers Luxemburg in '42, does Russian and Chinese units receive a morale penalty because of that?