If I understand your rules correctly, then it sounds pretty darn overpowered for the Allies to me, Schmidty.
The French start Anniversary 1941 with French West Africa, French Equatorial Africa, French Madagascar, and, if you’re being generous Trans-Jordan (representing Syria).
The Australians start Anniversary 1941 with Australia, New Zealand, and New Guinea.
That means each minor power is only earning 4 IPCs…but you’re letting them build a bomber and a battleship every turn, which are worth 36 IPCs. Yes, eventually they’ll run out of pieces, and then they’ll have to build fighters and cruisers instead…but that’s still worth 22 IPCs. Worse, there is really nothing the Axis can do about this – as long as the minor power controls even one territory, they can still dump their free units onto the board each turn.
So you’re giving the Allies a boost of about 50 IPCs per turn, every turn, all through the game. That’s enough to break the balance of the game beyond repair.