Chapter 791: Political isolation

  Chapter 774 Political Isolation

On June 18, 1883, forced by the effects of the economic crisis, the United States of America announced its withdrawal from the free trade system and imposed tariff barriers.

Not waiting for Britain and Austria to react to take action, on June 20, 1883, the French government similarly announced its withdrawal from the free trade system.

As a result, the free trade system that Britain and Austria had worked so hard to establish was suddenly in jeopardy.

France and the United States are not the same, the latter’s influence is limited, even if the withdrawal of the free trade system will not have much impact, but France is different.

As one of the three great powers of the world, the impact brought about by the withdrawal of the French government from the circle was undoubtedly enormous.

After receiving the news, the government of Vienna is naturally furious, only less than half of the harvest, leeks so quickly run away, it is ……

Economy Minister Reinhardt Haldgen: “By the two countries to withdraw from the free trade system, the Vienna stock market plunged five point four percent, the London stock market plunged seven point three percent.

Industries engaged in import and export trade were hit the hardest, generally falling more than fifteen percent, and overnight the Austrian stock market evaporated 310 million guilders and the British stock market evaporated 520 million guilders.

Financial fluctuations will inevitably affect the real industry. Things happen too suddenly, domestic enterprises are not prepared.

Many enterprises that trade with the two countries are ready to lay off employees and cut production capacity to cope with the impact.

France is our third largest trading country, with import and export trade totaling 64.58 million Shendian in the first half of this year, and due to the impact of tariff barriers, this figure may be reduced by two-fifths in the second half of the year.

The United States of America, our seventh-largest trading nation, with trade totaling 10.76 million shillings in the first half of the year, could be reduced by one-third in the second half of the year.

The withdrawal of the two countries from the free trade system has given us little material impact; the trouble is that it has caused panic in the markets.

If there are other countries to follow behind, the panic will be further amplified and may even induce another stock market crash.

The Ministry of Economy suggests taking countermeasures immediately to deter other countries and avoid the collapse of the free trade system.”

With the establishment of the free trade system, the capitalist world economy has become more and more closely linked, and the world economy has become a matter of concern.

Trade protection is contagious, and when everyone has adopted trade barriers, the two major import and export countries, Britain and Austria, will become the biggest victims.

Countermeasures are necessary, but how to countermeasure has become a problem.

Foreign Secretary Weissenberg: “It’s a big problem, but the British should be more anxious than we are.

The United States and France withdrawing from the free trade system will cost them at least three times as much as us.

The Foreign Office does not recommend too much more than raising tariffs against both countries, and it would be better to wait for the London government to take action before we follow up.”

Wimpy?

The answer is no!

International politics is the most realistic, talking about gain and pay equal. You can’t take the money for cabbage and worry about pork.

What’s more, Austria can’t really do anything about them except raise tariffs tit-for-tat.

After rubbing his forehead, Franz made a decision: “Stop the dumping strategy, and then continue to offend the public anger. The French want trade protection, so let them!

International competition also has its advantages and disadvantages, it may seem that the French economy has been hit, but in recent years, the scientific and technological progress of France is also evident to all.

If it continues, our technological head start advantage will soon be smoothed out. If they want to shut the door and play by themselves, then so be it.

The Foreign Ministry’s next task is to isolate them politically and make them an alternative that is doubly wary of the European nations.”

This is both self-congratulatory and true. In the face of international competition, French companies have been forced to turn on technological innovation in order to survive, and have made breakthroughs in many areas.

This is something that could not have happened in the era of trade barriers. It’s hard to generalize about the pros and cons of this, but the fact that the French have retreated from the ring has been very helpful in promoting political isolation.

Countries are similar to people; when everyone is in a circle and you wander off alone, it’s natural to receive strange looks from others.

If someone stirs it up a bit more, you’re going to be isolated, even hostile.

It’s easy to say that you don’t care about the stares of others. If you do, you will slowly realize that it is as if the whole world is against you.

……

London.

As the biggest beneficiary of the free trade system and the biggest victim of the French exit loop, it is only natural that the British government can’t ignore that this is happening.

Economy Secretary Cornell Borchers said grimly, “The actions of the French and the Yanks have dealt another blow to our newly recovering economy.

The worst thing is that they have shaken the free trade system, and if we don’t find a way to remove the effects, more countries will withdraw in the future because of their interests.”

Britain was the first country to start playing with free trade, and for a long time they implemented free trade unilaterally to the outside world in order to show good faith.

Of course, that was based on Britain’s strong industrial system. Before the completion of industrialization in Fao, the total amount of industry in Britain exceeded that of the rest of the world combined.

Even with open trade, everyone could only sell food and industrial raw materials to them, as for industrial and commercial products they simply couldn’t sell here.

It appeared that they were competing on a level playing field, but in fact there was no competition at all. It can be said that before the Second Revolution, British industry and commerce had no rivals of sufficient weight in the world.

Foreign Secretary George proposed: “We can pull Austria together to impose trade sanctions on France and the United States.

When the free trade system collapses, the interests of not only us but also Austria will be damaged, and the government in Vienna should not refuse.”

Finance Minister Xiaoji Childers shook his head, “Unless the Royal Navy is able to blockade all ports in France and the United States, I don’t think a trade embargo will have any substantial effect.

Sure, we could block their goods from entering Britain. But there’s really no technical difficulty in changing the labeling of the merchandise, we can barely recognize it.

I can guarantee that the embargo would see no effect other than a reduction in government revenue.”

There’s no way that the capitalists’ modesty can’t be tested. There’s no way to regulate at the source, just by people’s self-consciousness, and you’ll know what to expect when you think about it.

“What is the reaction of the Vienna government?” Prime Minister Gladstone asked

Foreign Minister George shrugged, “Their response was very negative, other than a tit-for-tat increase in import tariffs to both countries, the Austrians didn’t move.

It looks like the Vienna government’s energies are all focused on the great cause of destroying the Ottoman Empire, and is not very interested in the United States and France withdrawing from the free trade system.”

“The extermination of the Ottomans” is another trouble, without the Ottoman Empire as a buffer, the next pressure of Britain in Persia will be greatly increased.

Hearing this bad news, Gladstone’s frown tightened. After looking at the map, said helplessly: “restart the Anglo-Austrian negotiations, we need the Austrian security guarantees for Persia.

As for the United States and France, these two unruly guys, first write down this account, and then have the opportunity to slowly settle with them.

The Ministry of Economic Affairs can formulate countermeasures in addition to the embargo, and can cooperate with the Austrians if necessary.

The Ministry of Foreign Affairs continues to do a good job of stabilizing other countries, we must ensure the stability of the free trade system.”

Since it was not possible to stop the fall of the Ottoman Empire, the only alternative was to retreat and secure the Persian region first.

The British and Austrian countries had already talked about this issue not long ago, only that the issue had been put on hold for the time being because there was no agreement on the interests.

Now can not be delayed, such as the fall of the Ottoman Empire, and then negotiations on Britain will be more unfavorable.

In comparison, the United States, which is still a small child, and France, which is ambitious, are secondary issues.

(End of chapter)