Chapter 517: Benefits Move People’s Hearts
Chapter 505: Interests Move People’s Hearts
Ever since the Anglo-Boer War, Benjamin’s Cabinet had been caught in a political maelstrom. Not to mention considering a second term, trying to serve out this term would require effort.
The Colonial Ministry took the blame for this, with Colonial Secretary Louis and Cape Town Governor Delphi resigning at the same time, and the opposition still refused to rest, catching on to the issue.
Had it not been for the “Triple Alliance”, which attracted public attention and shifted the focus of public opinion, Downing Street would probably have changed hands by now.
This is not enough, if you want to cover up this stain, the cabinet must also make greater achievements in politics and diplomacy.
Relations with Russia were also part of this; the capitalists needed to open up the Russian market and make more profits.
Against this background, Alexandrovich’s visit to London was naturally welcomed by the London government.
……
“Your Highness the Crown Prince, we agree in principle with your country’s desire to borrow money. As long as you are able to convince the bankers, how much to borrow is not a problem.”
Foreign Minister MacLean said with poise, this was his true thought. As long as the Russians could convince the bankers, no matter how much they borrowed the London government would not interfere.
Alexandrovich frowned, if he could convince the bankers, he wouldn’t have to deal with the British Foreign Office.
“Your Excellency the Minister, right now we are in trouble and need the help of your government.”
As he said this, Alexandrovich was intensely irritated deep inside, for a loan, he actually had to ask him, the Crown Prince, to stoop low and beg.
There was no way around it, one had to bow down under the roof. If not personally, Alexandrovich was sure that the bureaucrats in the Ministry of Foreign Affairs would never be able to talk about the results.
This is not their incompetence, mainly because the British want to come to a political show, improve the government’s reputation in the public.
Talking to him, the Crown Prince, would add more to the conversation than the officials at the Foreign Office.
Aleksandrovich likewise needed the credentials to increase his prestige at home, and both sides kind of got what they wanted.
Foreign Minister McLean smiled faintly and said calmly, ”We are also happy to help our friend, only now there is a little trouble.
The tariff barriers set up by your government have seriously affected the normal functioning of the relationship between the two countries. If your country can join in the free trade system, then none of this will be a problem.
This is a win-win choice, once you join the free trade system, your country’s agricultural exports will not be subject to any restrictions. It will be very helpful for your country to solve its financial problems.”
The free trade system, which was proposed by the British in order to open the markets of European countries. While expanding the market for British goods, it was accompanied by the pound-gold settlement system, or the introduction of monetary hegemony.
At present, the Russians are still promoting the gold and silver compound standard system, and once they join this system, they will have to carry out the gold standard monetary reform.
The Tsarist government’s reform of the monetary system had already begun long ago, except that it had always been carried out with the help of Austria. With the cold relations between the two countries, the monetary reform of the Russians also came to a standstill.
This allowed the British to see the opportunity and wanted to take advantage of it to replace them. Pulling the Russians from the S.H.I.E.L.D.-gold system, which they had half a foot in, into the sterling-gold system, thus distancing themselves from their competitors.
Now on the international currency market, there are three popular systems: the pound – gold system, the shield – gold system, the franc – gold, silver system.
There is no doubt that the British have Canada, Australia, two major gold origin, coupled with so much colonial plunder accumulation, the pound – gold system naturally prevailed.
Followed closely by the Shield – gold system, Austria’s domestic gold production is not low, coupled with the African continent gold supplement, also in the international currency market occupies an important position.
But there is still a long way to go before the British, and in order to make up for this gap, the Vienna government has always pulled the Russians into the fold.
Only Alexander II was not willing to be a little brother, this issue has never been negotiated. After the financial crisis of the Tsarist government broke out, the two sides once again began negotiations, but the gap between the bottom line of the two sides is too large, still no end.
In contrast, the French gold and silver compound standard system is more tragic. France’s gold production is too low to meet the demand, had to take the compound standard system.
Although most countries were on a mixed standard in this era, it made settlement very difficult because the value of gold and silver coins changed from time to time.
The French also struggled to keep the value of the franc stable. However, this still did not stop the fact that silver was devalued.
There was insufficient capacity with the gold standard and excess capacity with the silver standard. Silver production in this era had begun to skyrocket, growing much faster than the wealth of society.
Aleksandrovich was silent, joining the British-led free trade system was too far-reaching to be a decision he could make.
Don’t look at Maclean’s statement that loans are not a problem, it sounds like a very good idea, in fact, there is a much bigger problem here.
Not to mention, once the loss of tariff protection, Russia’s fragile industry and commerce, can survive?
The British free trade system, why no industrial powers to join? It is not because of the fear that the domestic industry and commerce will be impacted, this era of British manufacturing is a guarantee of quality.
If the economy is affected, the politics will also be affected. After joining the British-led free trade system, the reaction of Austria must also be considered.
Do not look at the relationship between the two countries in the cold, that is only political, civil business contacts are still very close.
The Second Russo-Prussian War was already in its infancy, and both sides were making preparations for the war, at which time the importance of Austria became irreplaceable.
Even if you join the British free trade system, the London government is not likely to support the Russian Empire in the Russo-Prussian War, Prussia and Poland are the people’s loyal little brother.
Of course, as long as the Tsarist government was willing to give up its hatred and not take revenge on Prussia and Poland, then the British could also mediate the conflict between the two sides.
This kind of thought flickered in Alexandrovich’s mind. It was not true that he was a pacifist, but he was definitely not a saintly mother who would be so brainwashed that he would even put himself in the wrong position.
After thinking for a while, Alexandrovich opened his mouth and asked: ”Your Excellency the Minister, I am also clear about the benefits of free trade.
Your country’s industrial strength is number one in the world, once there are no more tariff barriers, I’m afraid that it won’t take long for our fledgling national industry to be crushed.
Currently the industrial population of the Russian Empire, has already exceeded six million, once problems arise it will trigger a wave of unemployment, and in serious cases it will also jeopardize national security. How can these problems be solved?”
Marquis McLean unhurriedly explained, “Your Highness the Crown Prince, you are really overthinking it. There may be many industries that will be impacted, but your country also has many advantageous industries.
For example, agriculture, your country’s agriculture is the most promising in Europe, and once it joins in the free trade system, surpassing Austria is a matter of time.
Austria’s agricultural processing industry, how big is the scale, I think no one knows better than you.
If your country relies on the advantages of local food production and develops supporting processing industries, it is not afraid of competition from anyone.
Agricultural exports alone, your country can create hundreds of millions of pounds of exports, which profits, not enough to make up for the lack of other industries?
Not only agriculture, your country is rich in resources, is also an inherent advantage. As long as it is integrated, there is no fear of competition.”
Alexandrovich’s face did not show, but deep inside he was already very disgusted. Apart from having provoked the Russian-Austrian relationship, all the other contents were false and empty.
The international grain market was already saturated, and now that the Russian Empire was joining in, at best it would get a piece of the pie. If you want to reach the level that McLean said, crush Austria first!
The family knows its own business, agricultural production technology in Russia and Austria there is a serious gap, which can not be made up overnight.
Poor natural conditions, but also to limit the export of Russian agricultural products is an important factor. Not to mention, the high cost of shipping alone increases the cost.
In addition to these problems, the technology for processing agricultural products is also a problem. The machinery and equipment, first of all, would have to be imported, and the quality of locally produced machinery and equipment was not up to scratch.
Secondly, there was a lack of skilled workers, which led to a high rate of defective products being produced. This is a common problem of Russian industry and commerce, even if the same mechanical equipment, they produce a higher rate of defective products than European countries.
So many problems, all added together, have increased the cost substantially, which makes them how to compete with their rivals in agricultural exports?
The Russian Empire is rich in resources, and should be followed by the phrase – backward transportation. What’s the point of not being able to transport even the richest resources?
It was fine to join the free trade system, but that was only if the British came up with favors. Alexandrovich needed tangible benefits, not a nebulous pie in the sky.
“Your Excellency the Minister, what you say is only a future development, in the short term the Russian Empire will not gain any benefits by joining the free trade system.
But the price we will have to pay is very heavy, not only will domestic commerce and industry be affected, but it will even lead to the breakup of the Russo-Austrian alliance. This is not a reciprocal transaction, and one should not be so hypocritical in dealing with friends.”
Aleksandrovich purposely increased his tone of voice and expressed his heartfelt dissatisfaction to MacLean.
……
In the first round of exchanges, the two sides failed in their mutual attempts to test each other, and the negotiations came to an end for the time being.
However, Alexandrovich did move, regardless of whether the British are not in the pie, but can obtain the dominant position in the agricultural export market, is indeed very tempting.
Just thinking about the competition made him despair. In this era, the Russian Empire only exported grain to the outside world, but not other agricultural products, not so much because of the transportation problem.
Things like fruits and vegetables, shipped from the Russian Empire to European countries for sale, rotted pretty much halfway.
Wheat, potatoes, beans, corn, are the Russian Empire’s fist products. The area planted with cash crops is too small and the export share is very small.
For example: cotton. Because of the production technology, geographic conditions, transportation of many factors, resulting in the Russians cotton lost competitiveness.
These problems can not be solved overnight, innate deficiencies, want to make up for the latter is too difficult.
……
(End of chapter)