Chapter 965: Chapter 228: Entangled…
The British Governnt was not only troubled by the international situation but also by the accompanying economic issues.
If nothing unexpected occurred, the markets abandoned by the French would largely be taken over by Austrian industrial and comrcial products, leaving Britannia to pick up only scraps and leftovers.
The law of “the strong get stronger” applied here as well. Austria, already an industrial powerhouse, now captured the French markets, ensuring further developnt of its dostic industry and comrce.
Anyone with a bit of common sense knew that the more industrial and comrcial products were produced, the lower the cost would be, thus strengthening market competitiveness.
The market being finite, the further developnt of Austria’s industry and comrce was bound to compete with Britannia.
Not to ntion other regions, Britannia’s market share in Europe would definitely be squeezed.
With the market shrinking, corporate profits would decrease and the money invested in product research and promotion would also be reduced, forming a vicious cycle.
Of course, these were long-term issues. Britannia had the world’s richest colonies and could hold up for a short period.
At worst, they could slowly transition economically, moving away from the low-profit manufacturing industry to vigorously develop finance and services. This had been done in the original tiline and could naturally be done now.
The long-term problems were for the next or the following Pri Minister to address. Gladstone need not worry about them, as he already had enough imdiate troubles.
As the world’s leading financial empire, high-interest loans were inevitable. Everyone knew that those who played in finance were audacious and utterly unscrupulous.
As long as the profit was substantial enough, regardless of the risks, there would always be takers.
Britannia, which promoted a free economy, did not interfere in private lending. During the European wars, these speculators were inevitably active.
While so made a killing, others suffered great losses. Following the end of the European wars, financial groups that bet on the French governnt were now trapped.
If it were the consortium’s money that was trapped, Gladstone would only be popping champagne and celebrating, not bothering about the survival of these vampires.
Regrettably, the vampires were shrewd and had ticulously planned everything, profiting themselves while losses were solicited from the public.
From the end of the European wars until now, over three hundred financial institutions in Britannia had declared bankruptcy, conveniently dumping the ss onto the governnt’s lap.
Recovering debts was impossible. From the current situation, even if the French governnt had money, it was looted clean by the Anti-French Alliance. It seed unlikely they could pay these debts for decades.
The French rotten debts had yet to be dealt with when the German Federation exploded with a debt default, delivering another blow to the London Governnt.
This ti, it wasn’t just private loans—many of the loans had the British Governnt’s assurance of safety.
With no other option, the German Federal Governnt declared bankruptcy. In an effort to save on expenses, they even closed the London embassy, entrusting their affairs to the Austrian embassy in London.
It wasn’t that the German Federal Governnt intentionally “defaulted”; they genuinely had no money. The sub-states withheld taxes, the central zones were destroyed, the governnt lost all its inco, and even public servant salaries had to be fronted by Austria, let alone repaying debts.
Approaching year-end accounting, unable to et its debts, the governnt had no choice but to declare bankruptcy.
Indeed, it wasn’t just the German Federation that went bankrupt. The governnt of Belgium, devastated back ho, also declared bankruptcy at this ti.
Being broke ant being broke; they didn’t even pretend to be poor. It wasn’t a specific move against Britannia but rather a default on all debts. But since Britannia had lent out the most, it beca the biggest victim.
“Have the governnts of the Prussian and German countries given any explanation?”
Gladstone directly ignored the French governnt; obviously, he did not believe he could extract money from under the nose of the Anti-French Alliance.
The governnts of Prussia and Germany had no money, which was a well-known fact, and Gladstone did not expect them to imdiately produce money.
Having no money was fine; Britannia had a professional financial team. As long as there were enough collateral assets, securing another loan wouldn’t be a problem.
The key was the attitude toward resolving the issue, whether it was a temporary cessation of paynt due to lack of funds or an outright refusal to pay.
“The Belgian governnt proposed a plan to delay paynts for five years, using the French war indemnities as security and prioritizing the reimbursent of war indemnities paid by the French after five years toward us,”
The German Federal Governnt proposed a debt transfer, directly deducting from the war indemnities, making the French bear this debt.
Theoretically, the proposals from both the Prussian and German governnts could work. The only issue was whether the French possessed the capacity to pay.”
It wasn’t that George was soft-hearted; it was just that the situation was special. Belgium was now destitute with governnt coffers so empty they needn’t even have a front door; extracting oil by bombing them was impossible.
The German Federation seed to be in a slightly better state, but its governnt was too weak, potentially closing down at any mont.
If the debt issue wasn’t resolved quickly, and Austria declared the restoration of the Holy Roman Empire and dissolved the illegal German Federation, then the creditors themselves might disappear altogether.
No country would pay for an illegal governnt established by rebels unless Britannia could persuade Austria to recognize the legitimacy of the German Federal Governnt.
This was obviously impossible. Recognizing the legality of the German Federal Governnt ant the division of the Empire. Vienna resisted the pressure thirty years ago and now it wouldn’t venture such recognition.
“Problematic indeed!”
“From the current situation, the Anti-French Alliance will definitely extract a hefty sum from the French. The war reparations are unlikely to be one billion British pounds,
Belgium made great sacrifices in this war, and logically Austria should offer so consolation, ensuring a significant proportion of the compensation isn’t low.
With five years as a buffer, the French should have also recovered sowhat, and even if unable to pay the full amount of indemnities annually, the portion accruing to Belgium should be enough to cover our debts. If there was a shortfall, Belgium could make up for it.”
The proposal from the German Federal Governnt is problematic; the debt transfer might seem lossless, but the risks we must bear are imnse.
Not only do we have to worry about the French’s ability to pay, but we also have to consider political risks. If Russian-Austria ddles and causes the French to deliberately delay, or places the transferred debt last in line for settlent, I estimate we won’t see the money by the end of the century,”
Gladstone couldn’t help being concerned, as Britannia had played similar tricks before, and now the tables have turned, putting them in a reactive position.
Accepting the debt transfer from the German Federation ans taking on high risk; rejecting the debt transfer ans missing even the chance to take risks.
The current German Federal Governnt is like a limited liability company about to go bankrupt, registered with the minimum required capital.
Anyway, everyone is only liable within the registered capital, and both legal persons and shareholders have opted to cut losses promptly, with no intention of rescuing the company.
As the creditor, Britannia faces a tragedy; they must either press for collection of the company’s bad debts from abroad or wait for bankruptcy liquidation.
Foreign Minister George added, “Not just us; other creditors of the German Federation are receiving the sa treatnt, including the Austrian Royal Bank.
George I has already closed his doors, leaving all matters to the German Federal Governnt, and the Kingdom of Hanover and the German Federation have completed their separation.
In order to stop losses, the Foreign Ministry proposed using colonies as debt paynt, but they were rejected. Ewald even boasted that if we dared touch their colonies, they would declare war on us.”
None of them are easy to deal with, even Britannia’s own offspring are now rebelling. Regardless of past relationships, they are not going to take on the debts.
Even though they know this would offend Britannia to death, they are now fearless. After all, the revived Holy Roman Empire is the master of Europe, and with the Central Governnt to support them, there’s really no need to show submission.
…
It’s not only the British Governnt that is in a quandary; the Japanese Governnt in Tokyo is also having a hard ti. Even though the Japanese Army has occupied the Philippine Islands, it brings no comfort to Emperor iji.
There’s no helping it; plans do not change as quickly as circumstances do. They were ready to take a chance once the situation clarified, but unfortunately, due to communication difficulties, the Japanese Governnt’s news was delayed by several days.
However, just in those few days, the French surrendered, making it impossible for the Japanese Governnt to even deliver the prepared declarations of war.
They can’t even make a forced issue. The French Indochina Peninsula was snatched up by the British, and several small islands in the Southeast Asia region fell into Austrian hands; there wasn’t a single one they dared to provoke.
The speculative failure has put Japan in a particularly awkward position, especially unfavorable given the coming Vienna Peace Conference.
Spain is a European country and a mber of the Anti-French Alliance; it’s clear whom everyone will support at the Vienna Peace Conference.
Without international recognition, their occupation of the Philippine Islands is like duckweed without roots, vulnerable to being taken at any mont.
In the days to co, they not only have to worry about a Spanish counterattack but also be wary of underhanded moves by Anglo-Austria.
The reason Spain managed to hold onto the Philippine Islands previously wasn’t just because of its strength; looking solely at strength, neither Spain, the Netherlands, nor Portugal were qualified to hold onto their colonies; it was more about political factors.
Now, with the major changes in the situation in Europe and the Philippine Islands falling into Japanese hands, the previous political factors are no longer applicable.
Having missed the chance for speculation, the Japanese Governnt can only rely on its strength to hold onto the Philippine Islands.
“Pri Minister, what is the stance of European countries?”
Ito Hirobumi looked tense and with so difficulty said, “The situation is not optimistic; I personally visited the envoys of various countries. Even when the Empire made concessions, we received clear support from none of these countries.
Among the major powers, the British are ambiguous, as if completely indifferent to our occupation of the Philippine Islands; the Russians also lean more towards Spain, and after the Empire made concessions, we still didn’t get their assurances.
Austria’s stance is the most unfavorable for us; Ambassador Antonio explicitly conveyed their wish for us to give up the Philippine Islands and stop our expansion into Southeast Asia.
The only good news is that Austria’s stance is not too firm, with no intent of military intervention. Their opposition to our occupation of the Philippine Islands is probably because Spain is their ally.
According to news from Europe, the Spaniards have already begun assembling an expeditionary fleet, currently comprising three new battleships and ten ironclads, all from the French Navy,”
Minister of the Navy Saigo Tsugumichi asked doubtfully, “Weren’t all French warships supposed to be auctioned off? How did they end up in Spanish hands?”
Ito Hirobumi explained helplessly, “The French warships are trophies of the Anti-French Alliance, and Spain is a mber of the alliance. Borrowing them before the auction is not a big deal.
Even if they were to be auctioned, it would just be a formality; these warships would still end up in Spanish hands. The really purchasable warships by the outside world are just what’s left over by the countries of the Anti-French Alliance.”
Backdoor deals are only natural. As a mber of the Anti-French Alliance, it would be strange if they did not have privileges.
Saigo Tsugumichi fell silent. The century’s navy is not to be underestimated; despite Spain’s decline, their naval heritage is still intact. As long as there is money and warships, a fleet can be quickly assembled.
The Japanese Navy’s resources are limited, their most advanced warships being a few ironclads or cruisers, and their most advanced battleships are virtually non-existent.
Warships are not common weapons and cannot be purchased simply with money. Warships available on the international market are all second or third-rate, and might even be simplified versions – sothing the British excel at.
Putting a pre-dreadnought of over ten thousand tons against a cruiser of a few thousand tons is less a battle and more a slaughter. The navy relies not on braveness but on technological gaps that can’t be bridged with a few slogans.
However confident, Saigo Tsugumichi did not believe that the Japanese Navy’s few decrepit ships could compare to the cream of the French Navy.
Seeing the navy cower, the Imperial Japanese Army’s General Ozan quickly interjected, “Don’t worry, Your Majesty. The Imperial Japanese Army fears no challengers, and with us present, we will definitely hold onto the Philippine Islands.”
Unlike the navy’s concerns, the army was brimming with confidence. In the prior battles for the Philippine Islands, the Japanese Army had soundly defeated the Spaniards.
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