Chapter 664: Diplomatic action
Chapter 649 Diplomatic Actions
Stockholm, since becoming the capital of the Nordic Federation, this ancient city has once again taken on a new life, and the “Venice of the North” is well deserved.
Beautiful scenery, unique Nordic style, for the city to add a special flavor, memorable.
No matter how pleasant the scenery was, it did not move Philip Francis Thomas. As an official of the Ministry of Foreign Affairs of the Russian Empire, Francis has never been arrogant.
However, his so-called arrogance was still defeated in front of reality. Since accepting this mission, his entire heart was gone.
In order to win a new round of the Russo-Prussian War, the Tsarist government not only tried to raise money from Britain, France, and Austria, but even the Nordic Confederation, which was a part of the same country, was not spared.
Of course, Francis’s main task was not to raise money, but more to stabilize the Nordic Confederation, lest this old enemy stab them at the critical moment.
The unification of the three Nordic countries, the comprehensive national strength is not a matter of 1+1+1=3. After the three countries complement each other’s strengths and weaknesses, the Nordic Confederation has become a system of its own, the comprehensive national strength of Prussia twenty years ago.
Reminiscent of the old days and Sweden’s struggle for hegemony in Northern Europe, the tsarist government did not dare to underestimate this potential rival, and ultimately decided to first appease this old enemy.
For diplomats, this is undoubtedly a chore. There is no way, in front of the cruel reality of not give in.
Having personally experienced the last war, Francis was clear that the Russian Empire’s advantage over the Pupo Federation was not as great as the government propaganda made it out to be.
To a certain extent, the Nordic Confederation already possessed the strength to sway the inclination of the scales. In order to win this war, the Tsarist government could no longer care less about losing face.
Not only appeasing the Nordic Confederation, but all of their neighbors were the ones they were pulling for. Not asking these neighbors to support them, but just to make them neutral.
With a depressed mood, Francis, as the Czar’s special envoy, stepped into the Nordic Federation’s Foreign Ministry. Unlike the last time he came here, he no longer had the capital to be high and mighty.
……
Francis: ”Your Excellency the Count, this time we are very sincere. The Russian Empire is willing to take the Finnish region as collateral in exchange for a loan of 800 million kroner.
We can make a promise that half of this loan will be used to import your country’s goods. The interest will be six percent per annum in accordance with international commercial lending practices, and the interest will be repaid in annual installments.”
Denmark, Norway, Sweden, the three currencies are krona, the value is the same (1 krona is about 0.4 grams of gold), the Nordic Federation was established, naturally, there is no need to change the name of the currency.
“Your Excellency the Envoy, you overestimate us. The Nordic Confederation is just a small country, not as rich as your country, not to mention 800 million kroner, even 100 million kroner we can’t get it out.” The Nordic Confederation’s Foreign Minister Carla Valenti decisively refused
Francis didn’t get angry, the attentive one had already sensed that just now when he heard about taking Finland as collateral, Kara Valenti’s eyebrows twitched and quickly covered it up again.
This is to be expected, after the formation of the Nordic Confederation, the call for the recovery of Finland in the country is growing.
It was unrealistic to take back Finland by force. The Russian Empire is not the Nordic Confederation can challenge, the gap between the strength of the two sides is too large.
In addition, the Nordic Confederation within the pro-Russian Denmark, the risk of provoking a war, or this fragile new government, and give the split.
If the other way, using economic means to take back Finland, the situation will be very different.
The Danish government will not refuse the return of Finland, a strong Nordic Union, to help them regain the lost two duchies.
That’s right, the Nordic Confederation was a union of countries that came out of mutual compromise. It was created while the Russian Empire was in a period of weakness and only with the support of the Great Powers.
Against this background, the government had to take into account the interests of all parties when conducting domestic and foreign affairs. For example, Sweden supported Denmark in recovering the two duchies in exchange for Denmark’s support for Sweden’s recovery of Finland.
Of course, the precondition is that the strength is enough to do so. Although the Nordic Confederation is a small country, but also has a historical heritage, coupled with a comfortable natural environment, the strategy of everyone tends to be conservative.
In other words: strength is enough, the opportunity comes, then recover the lost land; strength is not enough, then hold back first!
The Russo-Prussian War was the opportunity they were waiting for, and Oscar II formulated the strategy: whoever lost, fall on whoever lost.
This was the obvious question. If the Pupo Federation loses, maybe the country is gone, naturally, can not block the action of the Nordic Federation; Russian Empire loses the war, not much better, the Finnish region is certainly can not be saved.
The Tsarist government was willing to use Finland as collateral for the same reason. Anyway, if you lose the war, you won’t be able to keep Finland, so you might as well use it to stabilize the Nordic Confederation first.
Francis: “His Excellency the Count is too modest, with your country’s economic strength, a mere 800 million kroner is simply not a matter of concern.
As far as I know, your government’s revenue this year alone is as high as 320 million kronor, and the liquidity in Stockholm’s financial market alone is more than 840 million kronor.
Your bank is fully capable of taking on this loan.”
800 million kronor is about: 87.43 million shillings, or 43.715 million pounds. That’s a huge amount of money for any country.
Francis had a basis for proposing this figure. Although Finland was not small in size, it was after all a bitterly cold part of Northern Europe, and in this day and age belonged to a proper rotten land.
The Russians had a lot of similarly bad land, and the Tsarist government wouldn’t have paid so much attention to it if it wasn’t of high strategic value.
In this era of the strongest and weakest, the European continent is not peaceful, small countries simply do not feel safe, everyone in as strong as possible.
The Nordic Confederation has set its sights on Finland, and apart from the factor of nationalism, there is still no better alternative.
Kara Valenti shook her head, “Your Excellency the Envoy, loans are a risk to be considered. Your government’s finances have always been in a bad shape, and there is also the possibility of war breaking out with the Pupo Federation at any time.
Once the war breaks out, your country’s ability to repay its debt will definitely be in trouble, and in the end, it can only rely on collateral to cover it.
The Finnish region is too barren, the revenue is only enough for expenses. How long will it take to recoup the costs of selling wood, since there are not enough minerals?
A hundred years, or two hundred years, people can’t wait that long.”
Being rejected is no surprise, some talk even half successful, indicating that the Nordic federal government moved.
Francis’s task was to stabilize the Nordic Confederation, not really how much money to borrow. Want to raise funds for the war, or only from Britain, France and Austria to think of ways, other countries are too poor.
After the tentative inquiries were fruitless, Francis excused himself and left, leaving Carla Valenti with a secret headache.
Although the pie in the sky is good, but also have to consider whether there is poison. The Russians are not easy to deal with, want to take advantage of them, it is easy to be reversed.
……
In the royal palace, after receiving the good news, Oscar II’s first reaction was not surprise, but shock.
After contemplating for a few moments of effort, Oscar II voiced the doubts in his mind, “What if the Russians win the war and in the end refuse to fulfill their obligations?”
There was no way around it, the tsarist government’s credibility was that good. Losing the war, the Russians would surely perform, because they had neither the money to pay their debts nor the strength to keep the Finnish regions.
But winning the war was a different story, even though the Tsarist government most likely still didn’t have the money to pay the debt, but it couldn’t help that they dared to renege on the debt!
When the Tsar refuses to pay the debt while at the same time refusing to hand over the Finnish regions, they are going to be dumbfounded.
You can’t collect the debt by force, can you?
That’s just a proprietary means of debt collection by a strong country against a weak country, and it simply doesn’t work by a weak country against a strong country.
Foreign Minister Carla Valenti said uncertainly, “I don’t think so! The Tsarist government is raising funds for the war, and is borrowing money not only from us, but also from Austria.
If the tsarist government were to default ……”
Before the words were finished, Count Carla Valenti herself didn’t believe it. Borrowing money from Austria and borrowing money from the Nordic Confederation were two completely different concepts.
To renege on the Austrian debt, the Tsarist government would have to think twice, and would have to consider the political risks behind it, as well as the possible countermeasures taken by the government in Vienna.
Not so with the Nordic Confederation, reneging on a debt is just as good. At least Carla Valenti didn’t find out that there were any countermeasures available to them.
There was no way to say that the risk of lending money to the Tsarist government was just too great, and had far exceeded the Nordic Confederation’s risk tolerance.
After half a dozen moments of effortless silence, Oscar II: “Keep talking to the Russians, it’s an opportunity no matter what.
Can rely on economic means, to recover the Finnish region, we simply can not refuse, now the most important thing is to bring down the risk.
Since the Russians have made a request for a loan, there must be other measures that we can be assured of. For example, there is a third party guaranteeing the loan.
If the Tsarist government can persuade one of Britain, France or Austria to provide a guarantee for the performance of the debt, it is not impossible to consider it.”
The Tsarist government could care less about credibility, that’s because they themselves have bad credibility. Not so with Britain, France, and Austria, all three of which have a solid economic reputation that can’t be bought off with a mere 800 million crowns.
……
(End of chapter)