African Entrepreneurship Records 2

Chapter 1627 Melilla
The arms trade is a highly profitable industry; achieving a monopoly can yield enormous profits, so these industrialized East African nations naturally desire fewer competitors. However, among these industrialized nations, the Soviet Union was an outlier. The Soviet Union's arms trade was characterized by two main features: low prices and a penchant for giving away arms for free.

Compared to economic gains, the Soviet Union valued political gains more, thereby disrupting normal market prices. This was clearly demonstrated in the arms trade markets of the Far Eastern Empire and Central Asia.

The Soviet Union's "low-price" or even "free" strategy became even more prominent during the Cold War. In order to compete globally with the West, the Soviet Union often engaged in unprofitable deals, resulting in huge losses and imposing a huge economic burden on the Soviet Union, thus foreshadowing its later economic difficulties.

Moreover, this model is very unpopular. Even countries that received Soviet military aid may not appreciate the Soviet Union's "goodwill," as was the case in some African countries in my previous life.

The Soviet Union made many ineffective investments in Africa, and its allies often turned against it when aid was cut off.

……

Melilla is a small city on the Mediterranean coast, facing mainland Spain across the sea. In 1497, Queen Isabella I of Spain sent Duke Pedro to occupy Melilla, and since then it has been under Spanish rule for a long period of time.

By the late 19th century, Spain's influence in the region had expanded, and Melilla became the only official trade center on the Rif coastline between Tetouan and Algeria, leading to a relatively prosperous commercial sector in Melilla.

Melilla is also one of the core bases of the Spanish Afrika Korps, and in addition, a regular Spanish force is stationed there.

The latter are nominally still under the control of the Republican government, and their funding, supplies, and supreme command come from the Republican People's Army in Madrid.

Colonel Valdes is now the highest military commander in Melilla, serving as the commander of the Melilla garrison. His deputy, Lieutenant Colonel Lara, reports to him.

"Colonel, our troops have now been fully re-equipped, and we have also successfully won over the First Infantry Regiment of Melilla. The vast majority of officers and soldiers are now on our side."

"If war breaks out, we can immediately take control of the vast majority of Melilla's forces."

Colonel Valdes nodded and said, "Louis, you did a good job. The government is really getting more and more outrageous these days, otherwise we wouldn't have been driven to such a dead end."

"The military is the cornerstone of the nation and an important guarantee of Spain's interests, and our African Legion is an indispensable bottom line for Spain's interests in Morocco."

"However, they actually turn a blind eye to the contributions of us, the heroes who have worked for the country in North Africa under the scorching sun, and even attempt to suppress us."

"Ultimately, the government is completely corrupt and has been infiltrated by the Soviets. We absolutely cannot allow them to continue sitting in high positions and eroding the future of Spain!"

Lieutenant Colonel Lara also hates the current Republican government with a vengeance. He said, "The Republican government is completely reckless. Whether it is economic reform or the destruction of religious traditions, it is all detrimental to the interests of the Spanish people."

"This unhealthy trend that originated from the Soviet Union must be corrected."

Whether it's Colonel Valdes or Lieutenant Colonel Lara, they and their families are all members of traditional interest groups in Spain, and therefore, they have long harbored resentment towards the Spanish Republican government.

Colonel Valdes was very satisfied with his subordinates' performance. He said, "This incident is a right given to us by God. Although the power of the government is now controlled and infiltrated by treacherous people, God will protect us."

"After all, we are the faithful believers of God, and besides, the Republican government is acting against the tide of history, and there is already widespread resentment towards them in Spain."

"We have the support of righteous countries such as Germany and Italy behind us, so the chances of victory are very high. As long as His Excellency Mora and others give the order, we can overthrow the current Republican government and restore Spain's fine traditions."

Currently, the conservative group in Spain does not have a single leader and is divided into many factions. Among them, the most influential people are Mora, Sanhuljo, Llano and Franco.

Mora is one of the most senior members of their group and one of the main planners of the coup, so he is now considered the leading spokesperson for the conservative group.

As for why Mora couldn't compete with Franco in his previous life, one very important reason was Franco's outstanding performance in the war, as well as the support from Germany and Italy.

One of the main reasons why Germany and Italy supported Franco was that Mora appeared too conservative, or rather, extremely conservative.

Although Germany and Italy seem extreme, it is undeniable that these two countries also possess a certain degree of progress and are able to drive national development at this stage, even if it is unsustainable.

If Mora becomes the ruler of Spain, Spain will most likely follow the same path as neighboring Portugal, with no significant changes and perhaps even a certain degree of regression.

Colonel Valdes and Lieutenant Colonel Lara, among others, are still unclear about the situation, so they can only choose the most representative figure to speak for, and Franco is not yet particularly prominent in the camp.

However, Franco's influence was considerable when it came to the Afrika Korps. There were many of Franco's confidants in the Afrika Korps, such as Lieutenant Colonel Bluga of Melilla's Foreign Legion, who was a staunch Franco loyalist.

The Foreign Legion was also Franco's elite force and would become the main force of the rebellion in the future.

The relationship between the Afrika Korps and the Foreign Legion is unique. The former is a temporary combat unit composed of multiple military forces, including the Foreign Legion.

Moreover, despite the word "foreign" in the name of the Foreign Legion, it is actually composed of 90% Spanish. In comparison, the Moroccan regular army under the West African Legion is more in line with the definition of "foreign." This force is actually composed of Moroccan soldiers hired locally, with only the officers being Spanish.

In addition to the two units mentioned above, the African Corps of Melilla also has the First Detachment directly under its command, which should be considered the direct military force of the African Corps. Therefore, the African Corps itself is a very complex force.

However, the Afrika Korps is undoubtedly a professional, battle-hardened mercenary force, known for its formidable fighting prowess and ruthlessness. They are also the most elite force in the Spanish army today.

Even the subordinate Moroccan regular troops, composed of local Moroccans, are equally brave and skilled in battle. Colonel Valdes has great confidence in the Afrika Korps, telling Lieutenant Colonel Larra, "Our troops are far more effective than the conscripts on the mainland, and once logistics and equipment are replenished, they will have a significant advantage over the homeland."

The Afrika Korps are primarily organized as mercenaries, making them highly professional. For this type of force, combat effectiveness is directly linked to funding.

Since the Afrika Korps is stationed outside of its home territory, it has a relatively independent financial system and enjoys great autonomy in the use and management of its funds.

Senior commanders of the Afrika Korps, through their control of funding and resources, have been able to establish local military systems centered around themselves and loyal to them, effectively creating "independent kingdoms."

When the conversation turned to logistics, Colonel Valdes suddenly remembered something and turned to Larra, asking, "Have the Italian supplies arrived at the port this week?"

Lieutenant Colonel Lara replied, "Not yet. Normally, ships arrive in Melilla on Tuesdays to replenish our supplies, but recently it seems the Italian side has made some adjustments."

Valdes asked, "What changes have they made?"

Lieutenant Colonel Lara said, "I heard it's due to a change in shipping routes. At least in Italy, goods are usually shipped from their own ports and then transported to Melilla, but a month ago, they changed the shipping point to the port of Benghazi."

Valdes was familiar with the port of Benghazi and asked, "Isn't Benghazi an Italian colony in North Africa?"

Lara answered truthfully: "Benghazi is the capital of Italian Libya, and it is not too far from Melilla, although it is certainly not as close as it was to mainland Italy."

"From Italian Libya to here, there are French Libya, Tunisia, and Algeria in between."

Using the sea between the Apennine Peninsula and Tunisia as the dividing line, the port of Benghazi is located in the Eastern Mediterranean, while Melilla is in the Western Mediterranean, and is naturally farther away.

Colonel Valdes frowned and asked, "I also know a bit about Italy's Libyan colony. It's not exactly a good place; even agricultural development is extremely difficult. Do you think Italy can provide us with material support from Benghazi?"

In response to Colonel Valdes' question, Lieutenant Colonel Larra explained: "The colonel probably hasn't been following an important news story this year, which is the North African Railway, which was quite a hot topic internationally and officially opened at the beginning of this year."

"That means this railway has been in operation for three or four months now, and I think that's probably the main reason why the Italian side made the adjustment."

The North African Railway is actually quite well-known in Europe. After all, it is the world's first railway to cross the Sahara Desert and a major land transportation artery for trade between East Africa and Europe. Both aspects are quite impressive to Europeans.

In terms of engineering difficulty, the construction of the North African Railway is undoubtedly one of the greatest engineering projects of our time. It symbolizes mankind's "conquest" of the Sahara Desert, which, as the world's largest desert and the closest desert to Europe, is itself a topic of great interest.

From an economic perspective, the opening of the North African railway also presents enormous business opportunities, given that East Africa's current economic size is not to be underestimated by the rest of Europe.

East Africa alone, without exaggeration, is equivalent to half of Europe. Europe has a population of 500 million, while East Africa has a population of 200 million. Moreover, East Africa is slightly larger in area than Europe, and its economy and industry are also on par with continents.

Colonel Valdes then realized the importance of the railway, saying, "This completely changes the importance of Benghazi to Italy. Previously, Italian Libya was a place that nobody cared about. Now, with the opening of trade routes through the North African railway, Benghazi has instantly become a hot commodity."

"Of course, even so, Benghazi's development should focus on commerce, not industry and agriculture. Now that Italy is actually transferring supplies to us from Benghazi, it can only mean that Italy is getting goods from East Africa and then sending them to us!"

Lieutenant Colonel Lara agreed with his assessment, saying, "Recently, Italy has been responsible for providing us with aid supplies, mainly food, medicine, and ammunition."

"It is actually more convenient to purchase these things from East Africa, since East Africa can produce everything. There is also a key issue, namely ammunition. Italy's weapons system is not compatible with ours, but East Africa can. Although we are equipped with German weapons, East Africa itself is also a German country, and many standards are actually common with Germany."

"Of course, the only reason Italy would exchange its supplies for East African goods is that East African goods are cheaper, which makes it profitable for Italy."

"Putting aside other factors, Italy itself is an importer of food, and they also need to import food from East Africa. Therefore, it would be better to simply transfer the aid supplies from Benghazi to us and save some intermediate links."

Benghazi Port has become one of the important distribution centers for goods from East Africa and Europe, and Italy can therefore earn a lot of money from the price difference.

The supplies transported via the North African Railway and finally from the port of Benghazi may not all reach Italy. They may also be sold by Italian ships to other countries in Europe or along the Mediterranean coast. Therefore, it is not surprising that some aid supplies were also sent to Melilla.

Colonel Valdes was somewhat envious of the opening of the North African Railway, saying, "The opening of this railway may not necessarily be a good thing for us."

Before the opening of the North African Railway, there were only two routes for goods from East Africa to the Mediterranean: either through the Suez Canal or through the Strait of Gibraltar.

“Most East African merchant ships passing through the Strait of Gibraltar used Spain as a transit point. Now, East Africa can do this through the North African Railway, which means that Italy has taken away a part of our country’s business.”

Lieutenant Colonel Lara disagreed, saying, "The North African railway is indeed a new route, but land transport can never compete with sea transport, especially for cities on the west coast of East Africa. It is still more cost-effective to take the route through the Strait of Gibraltar."

"Therefore, the North African Railway could only capture a very limited market, not to mention that it was closer to the Suez Canal. So, if we were to talk about the threat posed by this line, it was the British who were more concerned."

Lieutenant Colonel Larra's judgment was correct. After all, the main source of goods for the North African Railway is the Great Lakes region of East Africa, which is actually located in the eastern part of East Africa. Before the North African Railway, most of the goods sold from the Great Lakes region to Europe were transported by the Northern Railway, sailing from Mombasa to the sea, and then via the Red Sea route to the Mediterranean.

Therefore, the business that North African Railways actually competes for comes more from the Suez Canal direction than from the Strait of Gibraltar direction.

(End of this chapter)