13th January 1658
"Your Excellency Jaishankar, 15% is not fair. You have given a discount of 30% to the Venetians and the Russians. Why the partiality when it cos to us, the Spanish, your closest friends?" Pedro asked with a hurt expression as if he were heartbroken.
However, Jaishankar did not fall for the trick. "I am sorry, Your Excellency Pedro, but our deal with the Venetians and the Russians is strategic in nature, and we have peace agreents and treaties with both nations, so so exclusivity is expected. You cannot demand that we do the sa for you. If we did, how would the Venetians and the Russians feel?"
Jaishankar finally let out a sigh, as if he was losing a lot. "Alright, we will make concessions. The discount will be increased to 20%, and the ti will extend from three years to five years. This is the best we can do."
Pedro Santiago looked towards Don Álvaro, who nodded in acceptance. "Alright, the Spanish Empire can accept this deal. We are looking forward to purchasing your famous military equipnt at a 20% discount."
"Next, coming to the workforce, our Spanish Empire would require up to 10,000 skilled workers for a decade."
"No, that’s too much. Even we don’t have that many workers, but since we promised, we can provide 50% of that—5,000 skilled workers for the next five years."
"Alright, we can work with that. Then, regarding the fifth point, how about the tariff agreent?"
Jayashankar consulted with Jagannath Mohan and replied, "The Spanish Empire will receive a five-year tariff agreent with the Bharatiya Empire to buy goods at a 30% tariff discount."
"No, that’s too low—at least 50%."
"Sorry, Your Excellency Pedro, there can be no negotiation on this. It’s a 30% discount, five-year deal, or no deal at all."
"You Bharatiyas are really stingy," Pedro sighed. "Alright, we agree."
14th January 1658
"Your Excellency Jaishankar, we Spaniards do not have much understanding of the industrial layout you speak of, so could you please lay down the deal and the potential benefits we would acquire from it?"
Jaishankar was prepared; He had inquired about various details from Rajesh, the Minister of Trade, Comrce, and Industry.
"Your Excellency, the main reason why your empire is in an economic crisis is because you are unable to retain the silver you get from your colonies. All the silver you obtain from your colonies is used to buy products from your European neighbours, who have developed industries.
In the end, the Spanish Empire has beco a glorified mining company." Of course, Jaishankar didn’t ntion the extravagant lifestyles of the nobles in Spain in the early 17th century, which had caused significant damage.
"Hence, for the next five years, the Bharatiya Empire will be willing to support the Spanish with industry chain exports from our textile manufacturing industry, tal manufacturing industry, shipbuilding industry, and other technical support, all for the price of two tonnes of gold."
Pedro Santiago and Don Álvaro de ndoza discussed for a while and agreed to the deal. "We can work with that. Thank you for being kind on the price."
Vinod and Jaishankar simply nodded and did not reply, as the price of two tonnes of gold was actually very cheap. The reason for this low price was that the Bharatiya Empire wanted the Spanish to control the ambitions of the Dutch, the English, and the French in the Aricas.
"Alright, for the last condition, the Bharatiya Empire will build 10 ships of 1,500-ton capacity, capable of sailing the Pacific Ocean on the Manila to new spain route. The Bharatiya Empire will be responsible for all cargo transportation to the New Spain colony of the Spanish, for a price of 40% over the cargo value."
Pedro Santiago did not have much objection to the deal, nor did Don Álvaro, but there was a small doubt. "Mr. Jaishankar, how is the value of the cargo calculated? Haven’t we agreed to procure military supplies at a 20% discount and civilian supplies at a 5% discount from the Bharatiya Empire? Now, with the additional pricing of 40%, how will this work?"
Jaishankar nodded and explained, "Your Excellency, our previous agreents remain valid. Military supplies will indeed be sold to you at a 20% discount off the market price, and civilian supplies will be sold at a 5% discount. But this is the price if you handle the shipping yourself."
Pedro Santiago nodded, understanding this part, but was still confused about how transportation charges would be applied.
"As for the transportation charges, they will naturally be added after the discounts you deserve."
"For example, if you purchase a military product worth 100 Varaha or a civilian product worth 100 Varaha, then after the discounts, the military product would be worth 80 Varaha, and the civilian product would be worth 95 Varaha."
"The 40% charges are added to this discounted price, not the original price. So, the military product will now be worth 112 Varaha, and the civilian product will be worth 133 Varaha."
"I hope that clarifies things."
Pedro Santiago, Don Álvaro de ndoza, and the treasurer discussed for a while and agreed the price was fair.
"Alright, Your Excellency, you’ve convinced us. The Spanish Empire is willing to make this deal with you."
Jaishankar looked through his notebook and confird that all the conditions were t.
He turned to Vinod and inford him of the conclusion of the negotiations.
Vinod, feeling relieved, stood up and greeted Count Don Álvaro de ndoza, "We had a pleasant negotiation session. I look forward to the continued cooperation between our nations. For now, I will take over the duty of preparing the treaty agreent according to the conditions we discussed."
"Absolutely, Pri Minister. I wouldn’t want anything else."
At the end of the eting, all the delegates greeted each other, and the negotiations concluded with the historic Bengaluru treaty between the Bharatiya Empire and the Spanish Empire.
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Treaty of Bangalore
Date: 14th January 1658
Location: Bangalore, Bharatiya Empire
Parties:
The Bharatiya Empire, represented by:
Pri Minister Vinod
Minister of External Affairs Jaishankar
Minister of Finance Jagannath Mohan
The Spanish Empire, represented by:
Ambassador Pedro Santiago
Don Álvaro de ndoza
Treasurer Fernandez
Treasurer Curt Lopez
Preamble: Recognizing the mutual benefits of cooperation between the Bharatiya Empire and the Spanish Empire, this treaty aims to strengthen trade relations and ensure a prosperous future for both nations.
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Article I: Purchase of the Philippines
The Bharatiya Empire agrees to purchase the Philippines from the Spanish Empire for a total paynt of 29.65 tons of silver.
The paynt is to be made as a one-ti paynt, with a deadline set for March 6, 1668.
Article II: Paynts in Precious tals
All imports from the Spanish Empire to the Bharatiya Empire will be conducted in silver tal for a duration of five years. The minimum transaction per year will be 5 tons of silver.
The Spanish Empire agrees to make direct paynts to the Bharatiya Empire in Varaha currency, with no minimum or maximum limits specified, for a period of twenty years.
Article III: Discount on Purchases
The Spanish Empire will receive a discount of 20% on military supplies procured from the Bharatiya Empire.
Civilian supplies will be provided at a 5% discount from the market price.
Article IV: Workforce Recruitnt
The Spanish Empire shall recruit a maximum of 5,000 skilled workers from the Bharatiya Empire over the next five years to assist in various sectors.
Article V: Tariff Agreent
The Bharatiya Empire will provide a 30% discount on the original 10% tariff, resulting in a 7% tariff on goods exported to the Spanish Empire for a period of five years.
Article VI: Industrial Technology
The Bharatiya Empire agrees to support the Spanish Empire in developing its textile and tal manufacturing industries, as well as shipbuilding supporting technology, for a fee of two tons of gold.
Article VII: Pacific Ocean Trade Developnt
The Bharatiya Empire will construct 10 ships of 1,500 tons capacity, capable of sailing the Pacific Ocean and serving the Manila trade route.
The Bharatiya Empire will handle all cargo transportation to the New Spain colony at a cost of 40% above the cargo value.
Conclusion:
This treaty represents a significant step forward in strengthening the ties between the Bharatiya Empire and the Spanish Empire. Both parties pledge to adhere to the terms set forth herein and work collaboratively for mutual prosperity.
Signatures:
Emperor Vijay Devaraya
Bharatiya Empire
Pri Minister Vinod
Bharatiya Empire
Emperor Baltazar de Habsburg
Spanish Empire
Valido Count Don Álvaro de ndoza
Spanish Empire
Witness:
Spanish Empire:
Ambassador Pedro Santiago
Treasurers Fernandez and Curt Lopez
Bharatiya Empire:
Minister Jaishankar
Minister Jagannath Mohan
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P.S. In case of doubt Discount on Purchase 1 is different from a discount on Tariff 2
1 is a normal discount on goods and services ( The governnt Reimburses the private businesses to their sales at a discount )
2 is a discount in the tax taken on export goods
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