African Entrepreneurship Records 2

Chapter 1637 Western Regions Management
In 1936, the Far Eastern Empire's foreign trade was interfered with by Japan and was in a state of great collapse. As a result, normal international trade in some sensitive materials was also hindered by Japan.

In some border areas of Northeast and North China, Japan's aggression clearly severed the trade arteries between the Soviet Union and the Far Eastern Empire, which also forced the Northwest region to increase its share of trade between the Soviet Union and the Far Eastern Empire.

Regarding this, a regime in the Northwest attempted to open up a supply route with the Soviet Union through a westward expedition, but it was unsuccessful.

Secondly, Japan continuously eroded the Far Eastern Empire's market through large-scale smuggling trade in the northern regions.

Japanese merchants transported large quantities of goods, such as rayon, sugar, cigarettes, kerosene, and opium, from Japan, Korea, and the northeastern part of the Far Eastern Empire to the northern demilitarized zone by sea. They then escorted these goods with armed force, forcibly breaking through customs and smuggling them into the inland market.

It impacted the national industries of the Far Eastern Empire and the finances of the Nationalist government.

Because smuggled goods evade tariffs and are priced low, they severely impact legitimate domestic businesses.

At the same time, customs duties were one of the most important sources of revenue for the Nanjing government, and smuggling caused huge losses to its tax revenue.

Trade between the Far Eastern Empire and Japan had largely broken free from the Far Eastern government's regulatory and taxation system, becoming an unequal and predatory trade under the protection of Japanese military force.

Under these circumstances, Japan would naturally restrict the Far Eastern Empire's access to some key war materials.

Sivag said, "The Empire's past trade arrangements with the Far East Empire have completely disintegrated, especially the Huaihai Economic Zone, which is now practically defunct."

“Regions including Jiaozhou Port were under military threat from the Japanese government, forcing the center of imperial capital to shift to other places or even withdraw directly.”

Without a doubt, East Africa was the region most affected by Japan's smuggling trade, as it was once within the economic sphere of influence of the Far Eastern Empire and was at the forefront of the Japanese threat.

Sivag continued, "Now the core of our trade with the Far Eastern Empire has shifted to Zhuhai in the south, but Zhuhai's trading capacity is certainly not as great as the once vast Huaihai market."

“We do not have an advantage there and will face competition from countries such as Britain, France, the United States and Germany.”

"Moreover, as Japan's war of aggression against the Far Eastern Empire continues to develop, the trade routes between the Far Eastern Empire and other countries in the world may become increasingly scarce."

"Under these circumstances, the importance of the Northwest Route has been greatly enhanced, and we have already established two new trading ports in the western regions of the Far Eastern Empire."

"This will become one of the important links in the trade between the Empire and the Far Eastern Empire in the future."

In early November 1936.

Shule is an important town on the northwestern frontier of the Far Eastern Empire. It is located on the northeastern foothills of the Pamir Plateau and the western edge of the Taklamakan Desert. It is known as the "Pearl of the Silk Road". Today, Shule has become the new "Pearl of the Northwest".

The airport built in Shule, East Africa, has been fully completed and has been in operation for some time, making Shule an important link between East Africa and the Western Province.

Most planes flying from Gwadar or Qatar to the Far Eastern Empire will first land here for maintenance and adjustments before continuing their journey to Dihua and other parts of the Far Eastern Empire.

Thanks to the construction of Shule Airport, the ancient city of Shule has been revitalized and has become a new commercial hub.

During the construction of Shule Airport, East Africa also paid a certain price. In order to realize this trade port chosen by East Africa, the first thing to do was to solve the local security problem.

As a border region, Shule was a place where foreign powers such as Britain and the Soviet Union were very active. Therefore, with the help of East Africa, in early 1936, the Western Regions Province launched a large-scale military operation against Shule, clearing away the tentacles of foreign powers such as the Soviet Union in the area.

The Western Regions Provincial Government has absolutely no objection to this cooperation with East Africa.

Admittedly, East Africa was also a foreign power to the Far Eastern Empire, but the threat was far less than that of the Soviet Union and Britain. The Soviet Union's territory directly bordered the Western Regions, while Britain's most important colony was located there.

Therefore, introducing East Africa as an external force could not only balance the relationship between Britain and the Soviet Union, but also reduce the dependence of the Western Provinces on the Soviet Union and Britain.

The armed forces in the areas under the jurisdiction of the Western Regions Province even formed a motorized infantry regiment equipped with standard East African weapons. Furthermore, East Africa sent a professional military advisory group to guide the Western Regions army in training, tactics, and the use of weapons and equipment.

The Third Battalion of the Second Border Defense Regiment stationed in Shule County is a unit built entirely according to East African standards.

Of course, just like the so-called German-equipped divisions of the Far Eastern Empire, this army controlled by the Western Regions provincial government could not possibly be exactly the same as the East African army due to budget constraints.

The Third Battalion of the Shule Border Defense Force.

East African military advisor Talshi is discussing security issues in Shule County with Battalion Commander Zhang of the 3rd Border Defense Battalion.

"Battalion Commander Zhang, after a period of cooperation, I believe that your unit has initially acquired the ability to operate independently and has grasped some of the thinking behind modern warfare."

"With the support of our weapons and equipment, there is basically no force in the Shule region that can oppose you anymore. So I suggest that while the enemy is still catching their breath, we should completely annihilate them in the yellow sand."

Battalion Commander Zhang frowned and said to Talshi, "Advisor Talshi, is there any need to make a mountain out of a molehill regarding the security issues in the Shule region?"

“We have completely eliminated the rebels and separatists, and they have no chance to make a comeback even if they want to.”

Talshi said, "I'm just offering you advice, but if we want to maintain long-term stable cooperation between the two countries, there can be no lapses in the security situation in Shule."

"Although those reactionary forces have been defeated by us, they have not disappeared, but have gone into hiding."

"Of course, I am not worried about these remnants making a comeback, but I am worried about them reconnecting with some extreme populist forces in the Soviet Union, Britain, or Central Asia."

“Once they find new financial backers, they could be rearmed and then pose a threat to your country’s security.”

"Therefore, now that your department has gained an absolute advantage in the Shule region, you should go all out to prevent a resurgence."

Battalion Commander Zhang naturally understood this principle, but he also had his own difficulties, which he shared with the East African military advisor.

"Advisor Talshi, thank you for your reminder, but you must also understand our difficulties. As the saying goes, when the cannons roar, gold pours in."

"Our Western Regions province has spent a great deal of money to establish two East African standard motorized infantry regiments." "The Western Regions is, after all, a harsh and cold place, so its finances are far inferior to those of our eastern provinces. Moreover, the weapons and equipment in East Africa are too expensive."

"So, Advisor Talshi, you can't hold our troops and soldiers to the same military standards as East Africa. We were already exhausted by the previous counterinsurgency campaign in Shule."

Battalion Commander Zhang was naturally very satisfied with the weapons and equipment in East Africa, as they were of better quality than the Soviet and British weapons he had encountered before.

The problem is that even if the quality of weapons in East Africa is good, the cost is not something that the Western Regions Province can afford. If feasible, the Western Regions Province would not mind converting all its troops to East African style, rather than just forming two "elite" motorized infantry regiments.

Regarding this, Advisor Talshi was also helpless. He was well aware of the financial situation of the Western Regions Province, so he said, "I don't have a good solution to your financial pressure."

"The Imperial Government has made as many concessions as possible regarding the export of weapons and equipment to you, but we cannot make a losing deal."

"The biggest pain point in transporting weapons from East Africa to the Western Regions is the high cost of transportation, since air transport is the most expensive mode of transportation."

That's what Talshi said, but in reality, East Africa's arms exports to the western regions of the Far Eastern Empire were essentially a losing proposition.

Because the weapons and equipment exported here are already at cost price, plus shipping costs, the East African government has to provide a subsidy.

Battalion Commander Zhang said, "Having dealt with your country for so long, I am well aware of your country's tireless efforts in helping our country, so we are filled with gratitude for East Africa."

"Unlike the British and Soviets, and some extremist populists in Central Asia, East Africa is not filled with covetousness and wolfish ambitions toward the Western Regions."

"If possible, I also hope that the government will strengthen cooperation with your country."

"But our country is currently in a period of unprecedented weakness, and the Western Regions Province needs the support of the eastern core area to achieve stability. However, the east is also facing various crises and is unable to take care of the Western Regions. This is the helplessness of us soldiers in the Western Regions Province."

Although the Western Regions are currently considered a relatively separatist region within the Far Eastern Empire, this is only because the Far Eastern Empire lacks a strong government, and the Nanjing government is indeed unable to gain the support of the people.

However, no matter how incompetent the Nanjing government was, the Western Regions Provincial Government had to maintain basic principles. After all, without the support of the Nanjing government, the Western Regions would only have one fate: to be completely devoured by the Soviet Union and Britain.

The advisor, Talshi, said, "I believe your country will eventually be revived. After all, the Far Eastern Empire is the only ancient civilization that has survived to this day."

"In fact, many people are well aware that the Far Eastern Empire has the foundation for revival. Your population is the largest in the world, and your land area and resources are also among the world's top. As long as you can reshape the country's political ecology and restore effective governance, like the Soviet Union today, there will be no problem in achieving rapid economic and industrial development."

Since the Soviet Union launched its industrial program, it has become one of the countries most admired by the world in the field of development.

Before the Soviet Union, it was East Africa, but now East Africa is considered a "long-established power," after all, East Africa was established decades earlier than the Soviet Union.

Battalion Commander Zhang said helplessly, "Thank you for your guidance, Advisor Talshi. I also believe that our country will once again stand at the top of the world!"

Unlike many insecure people in the Far Eastern Empire today, Battalion Commander Zhang is a man of vision, which is one of the reasons why he became the commander of the "modern" Third Battalion of the Border Defense Battalion.

Battalion Commander Zhang then said, "Advisor Talshi, although I am not optimistic about your previous suggestion, I will still send a telegram to Dihua, hoping that the higher-ups will approve your suggestion."

"Shule region is, after all, an important area of ​​cooperation between our two countries, and I think the higher authorities must attach great importance to its security."

Dihua and Shule are the only two trading ports in the Western Regions Province and East Africa, so the importance of Shule to the Dihua Provincial Government is self-evident.

However, the Dihua Provincial Government also needs to carefully consider military actions, and the Provincial Government's thoughts are beyond the control of Battalion Commander Zhang.

As Battalion Commander Zhang had predicted, the Western Regions government in Dihua did indeed not want to launch another large-scale military operation in the Shule area in the short term due to financial problems.

Of course, if East Africa could provide some free support to the Dihua government, that would be a different story. For this reason, the Western Regions Provincial Government and the East African Consulate in Dihua communicated.

The East African Consul General at the Dihua Consulate did not directly agree to the request from the Western Regions Provincial Government.

East African Consulate in Dihua.

Consul General Blaine told officials in Dihua Province, "The Empire has no plans for large-scale military aid to the Western Regions Province at the moment. However, we can have some detailed discussions on economic cooperation between the Western Regions Province and the Empire."

"This may be one of the important ways for the Western Regions Province to solve its financial problems."

In fact, starting in early 1936, East Africa relaxed restrictions on military transactions with the Far Eastern Empire, and even provided the Far Eastern Empire with some free and low-interest military loans or aid.

However, Western Regions is not a priority area on the list of countries providing aid to East Africa.

The reason is quite simple: Ernst did not want East Africa to interfere too much in the Western Regions. If it was about dealing with the Soviet Union and the British, East Africa could help the Western Regions government.

The problem is that the Western Regions are now a semi-separatist region, and its own security has not reached Ernst's red line.

The Soviet Union and Britain may have had designs on the Western Regions, but they obviously did not covet the lands of the Far Eastern Empire like Japan did. Of course, in Ernst's eyes, the Soviet Union was not necessarily reliable, so East Africa's strategy in the Western Regions was to keep an eye on the Soviet Union. If the Soviet Union had any bad intentions, then East Africa's military aid could be arranged immediately.

Blaine stated clearly: "The overall security crisis for the Western Regions Province has now passed, and the Soviet Union and Britain will not go too far. Therefore, your provincial government should focus its efforts on combating extremist separatists and terrorist organizations, as well as on economic development."

"Combating extremist populists and terrorist organizations is indeed not easy for Western Regions Province and requires long-term investment. However, in terms of economic development, East Africa can provide your province with financial and technical support."

East Africa's arrangements for the Western Regions Province of the Far Eastern Empire, or rather Ernst's arrangements for the Western Regions Province, were twofold: to maintain its basic stability and to develop it into one of the logistical bases for future military aid from East Africa to the Far Eastern Empire.

Therefore, it can help the Western Regions Province develop agriculture and industry, which can also reduce the Soviet Union's infiltration into the Western Regions Province. After all, if East Africa does not do this, the Soviets will do it, and the Soviets will only be more demanding than East Africa.

The current Soviet leader, Joseph, is a very pragmatic and shrewd man, so he expects something in return for his aid and will never show leniency because of any personal feelings.

(End of this chapter)