Holy Roman Empire

Chapter 67: Friends and Foes Indistinguishable



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Although the British Government did not follow suit directly, their noisy mode of operation in Parliament still frightened many.

Anyone with a slight political acumen knew who that intimidation was aimed at.

Once the grain consumption markets of England and France were lost, Austria's total export volume would drop by one sixth.

For the predominantly agrarian Russians, it would be a blessing to keep half of their trade exports.

Under fierce market competition, Russian agriculture, lagging in productivity due to production costs, would lose its market competitiveness.

The Tsarist Government even dared not promote new agricultural techniques, because production capacity doesn't equate to revenue; unsold grain nullifies even the highest yields.

Even industrial upgrading was something the Tsarist Government dared not touch, similar to what Austria had faced during the last agricultural crisis.

Constrained by the domestic economic development level, Franz had to cautiously develop animal husbandry, fearing a repeat of a surplus in livestock productivity.

The significant development in Austria's livestock industry had only emerged in the past two or three years, primarily because of economic growth and increased purchasing power.

Demand in the market must exist before the production of goods. This sequence cannot be reversed, or else it will lead to great chaos.

The Tsarist Government was desperate, and so was the Vienna Government, although the Russians were genuinely concerned, while Vienna only pretended to be.

Slogans roared in diplomacy, the government's actions were fierce like a tiger, but the actual results were a mere 0.5, appearing to be caught in a fluster.

For instance, following the announcement of the large farm project by the French, the Vienna Government declared a suspension in the accreditation of agricultural product processing enterprises.

Upon learning that the British Parliament had begun discussions on whether to follow suit, the Vienna Government again issued a notification for agricultural transformation, advising the public to reduce their grain cultivation areas in response to the agricultural crisis.

The direct consequence was a significant drop in domestic agricultural company share prices, and even some food production companies not greatly affected also ended up implicated.

Of course, since the economic crisis had just ended not long ago, the stock prices were already low and could not fall much further.

Essentially, the French had merely announced a plan, and even the Paris Government had yet to figure out the specifics of its implementation.

Capitalists refusing to invest meant the government had to step in and manage money-losing ventures; it was not so simple merely to talk about it.

No one has the experience of how to operate it. Direct management by government officials would significantly increase administrative costs, and corruption would be a major issue.

If it ended up producing exorbitantly priced grain that the populace couldn't afford, that would be a huge problem.

Contracting to capitalists seemed easy, but the integrity of capitalists was hardly reliable.

Swindling the government's subsidies with a shell project, then importing cheap grain from abroad to fill the gap, would make the Paris Government the big sucker.

Mentioning regulation is easy, but the problem lies in the fact that the farms are built in the colonies, which, although directly governed by the French Government, are too far removed from the Central Government's control.

Beyond administrative issues, the natives of the colonies were another headache. French African territories weren't like the Austro-African ones; most land had owners.

It was inevitable to confront them; it wasn't possible to establish farms in desolate deserts, right?

Desert farming, still in the research phase in the 21st century, was not something the French could achieve with cheats at that time.

Direct displacement was also not an option, as missteps could lead to uprisings in the colonies. With the precedent of the Egyptian rebellion, the French Government had to be cautious.

After all, native rebel armies are easy to deal with, but those supported by external forces are another matter. If there were a few more incidents like the Egyptian rebellion, the French Government wouldn't have the money for their large farm project.

With so many issues to consider, if not handled properly, the large farm project of the French could turn into a farce.

As for the British, anyone with a basic understanding of the British Parliament knows that it would be an exceptional performance to unify opinions within a year and a half.

Such a major strategy could spur debates for three to five years. Especially since all major grain-producing countries have already deployed their power to lobby the British Parliament.

Many still hoped for a turnaround, even presuming England and France were just biding their time with the "grain self-sufficiency plan" to force concessions from Russia and Austria in international politics.

There were quite a few supporters of this theory, including many from within England and France.

In the Vienna Palace, as news of the "grain self-sufficiency plan" of England and France spread, Franz also felt the pressure. Read the latest on empire

From the public to the government insiders, there was a rising call for negotiations with England and France to resolve the conflicts.

After all, it was a secret plan, and aside from a few high-ranking officials, no one had knowledge of it, so such reactions were almost inevitable.

Influenced by this, on August 16, 1885, the Vienna Government also communicated with the English and French envoys stationed in Austria for an in-depth discussion.

After Vienna deliberately showed a hint of willingness to compromise, the presumptuous England and France, believing they had found Austria's weakness, naturally made exorbitant demands.

And then there was no follow-up, for the talks came to a standstill. The Vienna Foreign Ministry was in a state of tension while treading water, filled with superficial activities but remaining firm in substantial negotiations.

Franz asked incredulously, "Are the Russians going to exit the free trade system, is the information confirmed?"

The French had already exited the free trade system, and so had the United States; if Russia were to exit as well, it seemed that free trade was coming to its end.

Foreign Minister Weisenberg nodded, "To be exact, the Russians have only shown signs of exiting, and it could also be a bluff by the Tsarist Government.

Yesterday afternoon, Alexander III summoned the British envoy to Russia to discuss Britannia's grain self-sufficiency plan, ending the talks conclusively dissatisfied.

This morning, the Russian Ministry of Foreign Affairs issued a notice to Britannia, warning the London Government not to play with fire, accusing the British of severely undermining the free trade system with their grain self-sufficiency plan.

If the British do not abandon their grain self-sufficiency plan, then the Russian Empire will impose trade sanctions on Britannia."

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The potential for undermining the free trade system might exist, but that would depend on whose stance you take.

In theory, as long as the British do not raise tariffs or suppress competitors through administrative measures, but instead adopt fair competition to achieve their grain self-sufficiency plan, it is in accordance with the spirit of free trade.

Of course, it could be argued that the British Government's financing of agriculture interferes with normal market development and violates the principle of "freedom."

After all, Britannia is the one that boasts of "absolute freedom," so they must be responsible for their own words.

However, only the Russians might have something to say about this matter; Austria has even less right to speak.

From beginning to end, Franz never spoke out on this issue. It's not that he didn't see it, but that Austria was doing something even more excessive.

State-owned farms? Austria is hardly lacking in such enterprises. Did people really think that the rapid decrease in Austrian grain production capacity during the last agricultural crisis was due to a voluntary cutback in planting area by the populace?

Naïve!

Millions of farmers cut back a tenth of their production capacity at most when the government called for it; the rest continued as usual.

It's not a matter of obedience; the question is, if not grain, what else would they plant?

Economic crops might sound simple, but they require technology. Sowing seeds doesn't always guarantee a harvest.

Grain prices might fall, but unsold grain can be kept for personal consumption or fed to livestock.

With economic crops, a miscalculation that leads to unsellable produce means it can only rot in the field.

The government's promotion efforts extended only to the cultivation of vegetables in areas surrounding cities, with remote mountainous regions being completely ignored.

It's not about willingness; Austria operates a market economy, not a planned one, so the government doesn't even know the market demand for each economic crop.

Rather than leaving decisions to bureaucrats and arousing public resentment, Franz would prefer to let the people continue growing grain.

At worst, adjustments to production capacity could be handled by state-owned farms. And if there's confusion about what to plant, it's not a problem to let the land lie fallow for a few more years.

After pondering for a while, Franz asked, "How likely is it that the British will compromise?"

Franz had spent much effort coaxing the British to the edge of the cliff and was just one step away from pushing them over; he didn't want them to be pulled back.

One thing was certain; once the British embarked on their plan for grain self-sufficiency, they would have to enter a long-term mode of deficit, suffering even more losses than the French.

Bound by the free trade system and needing to import grain equally from all nations, Britannia must continue its current strategy of nearly zero tariffs.

This means Britannia cannot support a minor player to become the granary and push Austrian agricultural products out of the market.

While establishing farms in the colonies might seem trivial for the British, the actual costs cannot be lowered.

Population is the first challenge; regions like Australia, New Zealand, and Canada are classic examples of vast lands with sparse populations.

Even with mechanized agriculture, significant labor is still needed. At least until irrigation and transportation improvements, the demand for labor will not decrease.

Recruiting domestic labor would result in costs that could make the British Government wince, driving the production costs of grain up to astronomical levels.

Without barriers, the more such grain is grown, the greater the losses. After losing money for a few years, British citizens would probably realize that growing grain has no "future prospects."

Once the opposition party gains power, they would likely cut this loss-making strategy and leave a trail of incomplete projects to demonstrate the incompetence of the previous administration.

India certainly has a large population and fertile land suitable for agricultural production; the problem is there are just too many people, and feeding the locals is already challenging.

Before even considering supporting the homeland, the produce might get consumed locally. It wouldn't be a problem to prioritize domestic needs, but when people start going hungry, rebellion becomes inevitable.

The previous cultivation of cotton already sparked a major uprising, and now with Russia and Austria established as new neighbors, the British Government surely wouldn't dare to disrupt things carelessly.

After pondering for a brief moment, Weisenberg slowly answered, "Fifty-fifty, I suppose."

The Russian market, although seemingly vast, possesses very limited purchasing power. Of this limited market, nearly seventy percent is already occupied by us, leaving only scraps for the British.

Even if they lose the Russian market, the total volume of British exports would at most drop by a silver or two percentage points, a fluctuation the British can withstand.

But the British Government is not enthusiastic about the grain self-sufficiency plan; Gladstone has left the decision to Parliament, and the lack of a clear position from the Cabinet is enough to illustrate this point.

This answer amounted to nothing; fifty-fifty was less an analysis than a gamble.

It must be admitted that though the Russian methods may be a bit crude, they are indeed very effective.

The Tsarist Government has made the British consider abandoning their plan by half. Under normal circumstances, a little push from Austria would result in the British Parliament rejecting or indefinitely shelving the proposal, and the matter would pass.

Several strategies floated through Franz's mind, only to be dismissed by him.

"At this point, we are no longer suited to do anything.

Next, we'll see how the French perform. Napoleon IV surely won't miss this opportunity."

As soon as he said this, Franz felt something was amiss. He didn't know when it started, but Austria seemed to spend more time cooperating with enemies than with allies.

Whether this represented a moral decline or a distortion of human nature was a question worth pondering.

What was certain was that if this approach continued, Franz would even start doubting whether he could still tell friend from foe.

"There are only permanent interests, no permanent enemies among nations." Franz's actions seemed to exemplify this maxim.


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