Chapter 333: To Take, One Must First Give
Holy Roman Empire
The addition of a new autonomous province barely caused a ripple in the New Holy Roman Empire, beyond a short notice in the Austrian newspapers.
There was little public reaction, but the Austrian government thought differently. Although the annual revenue of several hundred thousand guilders was not much, their investment was also small!
Despite Austria having numerous colonies, they hardly made any money from them.
By the end of 1861, apart from the West African region which was developed the earliest, yielding a profit of 126,000 guilders due to its gold mines and plantations, all other areas were running at a loss, varying only in the degree of deficit.
The Central American colonies ran at a loss of 2.164 million guilders;
The Nigerian colonial government lost 1.448 million guilders;
The Congo region colonies lost 684,000 guilders;
The Southeast Asia colonies lost 682,000 guilders;
Cameroon colony lost 342,000 guilders;
Libya lost 216,000 guilders;
The Sinai Peninsula lost 205,000 guilders;
Cyprus, Crete, and the other Mediterranean islands lost 186,000 guilders;
The Patagonian Plateau outpost lost 28,000 guilders;
Several other colonies in various regions combined lost a total of 128,000 guilders.
In total, Austria’s colonies incurred a loss of 5.957 million guilders in 1861, even without significant military actions abroad. If a war were to break out, this figure could increase several times, or even tenfold.
The huge deficits were the key factor limiting Austria’s colonial expansion, especially in the initial settlement stages which were pure expenditure.
Although the addition of the Lanfang Autonomous Province may seem insignificant, in the year-end assessment of 1861, they shouldered 580,000 guilders of military expenses.
The nominal sharing of military costs to protect member states was in reality no different from direct payments to the central government.
This is only the beginning. As time progresses, there will be circulation of guilders and potential revenue from a coinage tax.
With these revenues combined, starting from 1862, Southeast Asia will transition from the investment phase to the return phase.
Considering the added industrial and commercial markets, as well as the industrial raw materials provided for the domestic market, the value becomes even higher.
The Austrian government only needs to provide them protection, which goes without saying. Protecting their source of income is a natural necessity.
Finance Minister Karl excitedly proposed: “Your Majesty, should we change our colonial model? The returns from indirect rule are no less than directly controlling everything ourselves.
If we were to forcibly occupy Kalimantan, we may not see profits for at least five years, and the subsequent profits may not increase by much.”
Austria’s colonial expansion overseas may seem glamorous on the surface, but in reality, there are untold hardships.
As Minister of Finance, Karl can responsibly state that even with the calculation of increased tax revenues from various sources, the Austrian government is still operating at a deficit.
Of course, the nobles and capitalists involved in colonial activities have made money, and Austria’s domestic economy has benefited as a result.
The sudden emergence of a model where profits can be made without investment, only by providing protection, naturally interests Finance Minister Karl.
Franz shook his head and said, “Don’t daydream. Situations like the Lanfang Autonomous Province don’t happen every day.
There are many native kingdoms overseas, but most can barely govern themselves without going bankrupt, how can we expect them to aid us?
The Lanfang Autonomous Province itself is a company, mistakenly perceived as a republic by outsiders. It’s only able to assist us because Kalimantan Island produces gold.
Moreover, if we were to incorporate several indigenous kingdoms into the empire, are you certain that the member states and domestic nobles wouldn’t cause trouble?”
The hopeful crowd’s unrealistic idea was instantly dispelled. Even if several indigenous kings were to enter the empire, many wouldn’t agree to it.
The Lanfang Autonomous Province was originally a group of commoners, and Franz had only appointed a few low-level nobles among them to appease them. Their political status was limited, but they could provide financial support to the government, so no one minded.
If a few kings were to emerge, each with a higher status than these people, it would likely cause feelings of resentment.
This situation is different from the European context, where hereditary nobility is widely accepted and acknowledged.
Of course, there’s still a chance for government officials to become kings. As long as they had significant achievements, Franz wouldn’t mind appointing them as colonial kings.
However, these kings would mostly be in name only, as theoretically, every feudal lord could establish their own country. However, in reality, most nobles couldn’t afford to do so.
Only undeveloped, unclaimed lands would be given out, not existing colonies.
Good development meant a barony, marquisate, duchy, or even principality or kingdom, while poor development meant relying on state power to rule, remaining a noble fiefdom.
During this era, titles and even noble positions were tradable commodities. It was possible to purchase titles from the king, although at a very high price. Typically, only non-hereditary titles were available for sale.
For instance, the several non-hereditary titles granted to the Lanfang Autonomous Province were likely bestowed as a result of “gifts”. Otherwise, they might have received lower titles, such as honorary knighthood.
This was because their bribes were insufficient. If someone offers a high enough price, hereditary nobility titles could be granted as well.
Anyway, as long as Franz isn’t granting territorial titles, everything is negotiable.
He’s not the only one selling these titles; you can buy titles from almost every European king, provided you have enough money.
The price varies, though. For instance, titles in the New Holy Roman Empire are very difficult to obtain.
To ensure the nobility’s honor, Franz imposed limits on the number of nobles each state’s king could confer, and approval from the emperor was required.
People who haven’t contributed to the state usually won’t get approved. There are exceptions for those with good backgrounds, like a king’s son, who would definitely get approved.
The people of the Lanfang Autonomous Province who obtained titles are considered to have contributed to Lanfang joining the New Holy Roman Empire, making them meritorious officials.
Those hoping to simply buy titles had to offer at least 1 million guilders before Franz would grant them an audience, and his standard kept rising as his net worth grew.
The direct consequence is that since Franz ascended the throne, no titles have been sold. Many believe this indicates the Emperor’s profound respect for noble honor, showing disdain for mere wealth, thereby enhancing his reputation among the nobility.
People often pursue things that are difficult to attain. The principle of “no merit, no title” did not deter everyone’s desire to become nobility but intensified it instead.
To obtain noble titles, many offsprings of Austrian nobles and capitalists organize expeditions to expand colonies, converting their achievements into titles.
Ordinary citizens lacking such wealth can only join the military and gain distinction on the battlefield.
Against this backdrop, Franz granted 286 noble titles in 1861 alone, including 61 with fiefs.
The fiefdoms were naturally overseas colonies as domestically, the Emperor did not have much land to spare and could not afford to divide them further.
Minister of the Colonies, Josip Jelačić, proposed, “Your Majesty, the Ministry of the Colonies has compiled basic data from various colonies and concluded that the Southeast Asian region is most suitable for colonization.
The land is fertile, abundant in resources, and requires minimal investment for substantial returns. Therefore, the Ministry suggests increasing expansion efforts there going forward.”
Franz hesitated after examining the map. In the short term, Southeast Asia did indeed appear to be the most suitable for colonization, with its abundant resources, favorable climate, and ease of governance.
However, its drawback was its distance and the presence of mixed influences from Britain, France, Spain, and the Netherlands, making further expansion likely to trigger diplomatic conflicts.
It’s not that Franz is afraid of conflict; he’s concerned about the balance between investment and returns. As long as Austria doesn’t seize colonies from other nations and focuses on unclaimed territories, conflicts remain within manageable limits.
Austria’s strength is not unlimited; it already has a significant presence, second only to the British and on par with the French.
To counter the rise of the United States, strategic control over Central America is essential, while from a long-term perspective, the nearby African continent must also be controlled.
The Southeast Asian strategy has always been at the bottom of the priority list. Even if there has been some recent effort, it has been limited in scale.
Franz directly raised all kinds of questions: “What are the areas the Ministry of the Colonies are eyeing? Who are the competitors? How much investment is required? What are the potential risks? And how long before we can expect returns?”
Minister of the Colonies Josip Jelačić responded, “There are many potential targets, including the Indochinese Peninsula, which comprises the Kingdom of Cambodia, Thailand, Vietnam, as well as the Malay Peninsula, Sumatra, Sulawesi, and several smaller islands.
These areas are all promising; although various countries have begun infiltrating them, no colonial regime has been established yet, and according to international conventions, they are still in the stage of free competition.
The Netherlands, Britain, France, Spain, and Portugal are all potential competitors, including ourselves. All these countries have colonial outposts in these regions.
From our initial assessment, the Dutch seem to have set their sights on Sumatra; they have already occupied many areas on the island. However, their resources are limited, and they may face difficulties in establishing control over the indigenous regimes in the short term.
Due to the importance of the Malacca Strait, British influence has extended deep into Malaysia, posing perhaps the most significant challenge we may encounter there.
The French seem interested in the Indochinese Peninsula, so if we choose the same target, some conflict seems inevitable.
The level of investment and risk depends on the chosen targets. Generally, the more lucrative the area, the greater the investment required, and the fiercer the competition.
The return rates in these areas are promising. In theory, after establishing colonial rule, we can achieve a balance between revenue and expenditure within three years.”
There’s no way to accurately calculate costs when they’re unsure how many competitors will join in.
Colonial ventures are inherently uncertain, and many seemingly promising areas could turn out to be mediocre at best.
After hesitating for a moment, Franz made a decision: “Our established strategy remains unchanged. While Southeast Asia may seem enticing, in reality, how much we can bite off is limited.
The Colonial Ministry can focus on unclaimed small to mid-sized islands. In other regions, we’ll explore opportunities as far as our resources allow, and we can engage in negotiations with other nations if conflicts arise.
We can’t have our hands on every pie. Once we exceed our limits, colonies cease to be a tonic and become deadly poison instead.
Wasn’t the Kingdom of Prussia looking to join the colonial fray? Let’s give them a hand and facilitate their entry into the Southeast Asian region, giving them a chance for a grand entrance.”
Overseas colonization isn’t just about national power; it’s more about investment. After Austria heavily invested in Central America and the African continent, its capacity to invest in Southeast Asia has significantly diminished.
With insufficient strength, blindly pushing ahead will only lead to losses. It’s better to be conservative from the beginning to avoid wasting resources and losing face.
As for helping the Kingdom of Prussia, it’s just something to do on the side, allowing the Prussians to advance further on the path of colonialism.
To take, one must first give.
If there’s no visible benefit, how can the Prussians be willing to invest heavily?
Prussia’s power is limited. If they heavily invested in the navy, naturally, there would be less investment in the army, which would decrease the difficulty of Austria’s unification of the region of Germany in the future.
Based on this, it’s worth it for Austria to sacrifice the benefits of the Southeast Asian region. After all, after the unification of Germany, the meat will still be in the pot, and there will be no loss.
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