African Entrepreneurship Records 2

Chapter 1722 Opening Up the Central Asian Market
The Slavs will not know the pain unless they are taught a lesson, just like now, the Soviet Union was forced to lift restrictions on the Central Asian road under pressure from Japan.

Joseph said, "Comrade Livinov, you should handle this matter personally. At the same time, we should also discuss with East Africa the issue of economic development along the Central Asian highway between the two countries!"

Livinov is currently the Soviet Union's foreign minister. According to the original historical trajectory, he should have been replaced by Joseph this year, but the situation in Europe has changed, making him more secure in his position.

The core of his foreign policy was "collective security," which meant believing that Germany was the main threat to the Soviet Union and that the Soviet Union had to establish a solid military and political alliance with Western "democratic" countries to confront and deter Germany.

In his previous life, this idea of ​​his did not take shape because of the hostility of countries such as Britain and France towards Soviet ideology, and the Soviet Union's lack of awareness of the threat posed by Germany.

However, since Germany was now at war with Britain and France, and the Soviet Union and Germany had always been clear enemies, Joseph believed that his foreign policy could continue to be implemented.

"Yes, Comrade Joseph, but what are the specific details of our economic cooperation with East Africa?"

Livinov had always supported cooperation between the Soviet Union and East Africa, but now Joseph was clearly not only compromising with East Africa on the Central Asian road issue, but also more openly including economic cooperation, which left Livinov somewhat bewildered.

Joseph's mood became noticeably heavy when the topic was brought up.

"The Central Asian Highway is now involved not only in the issue of military aid from East Africa to the Far Eastern Empire, thus keeping Japan's attention on the Far Eastern battlefield, but this highway may also become a vital lifeline for us in the future."

"So even though we have no good feelings toward East Africa as an imperialist country, we now have to change the way we engage with East Africa."

“Look at the map!” Joseph said, drawing a line on the eastern border of the Soviet Union with a pencil.

“From Finland to the Ottoman Empire, our western outbound routes were almost completely blocked by Germany and its allies. If we were to go to war with Germany, our western foreign trade would be completely cut off by the Axis powers.”

The pencil continued eastward, crossing the Anatolian Peninsula and the Caucasus region, finally stopping near the Caspian Sea in Persia.

"Following last year's Warsaw Conference, Britain made concessions to Germany, which led to a further breakdown in the situation."

"Britain tacitly approved of Germany's diplomatic activities in Persia, and East Africa did not stop the actions of the two countries, which means that Persia could be won over by Germany."

"We had previously obtained intelligence from Persia that there was a strong call for cooperation between the Persian people and Germany, especially since Adolf's racial rhetoric was quite popular in Persia."

"This is an extremely dangerous signal for us!"

Adolf vigorously promoted the theory of Aryan superiority, but there were no purer Aryans in the world than the Persians, even though the two were not the same thing at all.

The Aryan version currently popular in Germany is more accurately described as the Nordic Germanic people, and it also has a distinct characteristic, namely blond hair and blue eyes.

The Persians clearly ignored these issues, much like Japan's "leaving Asia and joining Europe," eager to establish kinship with "higher civilization" nations like Germany.

Based on practical political interests, the German authorities deliberately claimed that Persia was a "Brotherly Aryan State" of Germany.

Even though Germany claimed that the Aryan bloodline of Persia had been "polluted," and that Persia was at most a collateral branch while Germany was the direct line, the Persians clearly didn't care, or rather, deliberately ignored this point.

At the same time, Persia's experiences in modern times have also made the Persians feel favorable toward Germany, such as the economic colonization of Persia by Tsarist Russia, Britain, and East Africa.

Although Persia had never been colonized, it was undergoing severe semi-colonization, so some Persians hoped to get rid of this situation with the help of Germany.

After the collapse of Tsarist Russia, the East Slavs' influence largely withdrew from Persia. Although East Africa and Britain had divided their spheres of influence in Persia, East Africa only focused on Persia's resources and economic interests.

Therefore, in summary, the country that had the most profound influence on Persia over a long period of time was still Britain.

However, at the Warsaw Conference at the end of 1938, Britain tacitly approved Germany's infiltration of Persia, which led to a recent warming of relations between Germany and Persia.

East Africa did not deliberately stop Germany's activities in Persia, which led to Germany's influence in Persia now actually surpassing that of other countries.

Joseph tapped the tip of his pencil on Tehran, the capital of Persia, and said.

"If Germany wins over Persia, our situation will only become more difficult, which will directly lead to our interests in the Caspian Sea, the Caucasus and Central Asia being further squeezed by the Axis powers."

"If the two countries sign a military alliance, then Germany will block almost all of our country's channels of communication with the outside world in Europe, from the Barents Sea all the way to the steppes of Central Asia."

The northernmost part of the Soviet Union, the Barents Sea in the Arctic Ocean, would have been directly under German surveillance and military threat if Finland had completely sided with Germany.

This is the northernmost sea outlet of the Soviet Union.

Needless to say, the Baltic Sea to the south was impossible to bypass Germany, and the Baltic Sea was also one of the two most important foreign trade routes for the Soviet Union.

The other route was the Black Sea route, but the situation there was no better. Germany and its allies had influence extending all the way to the Black Sea coast, and the Ottoman Empire, Germany's ally, directly controlled the Black Sea straits, a vital strategic point.

Therefore, the lifeline of maritime foreign trade in the European part of the Soviet Union was effectively in the hands of Germany.

The situation was equally dire for the land routes in the European part of the continent, as the European side was completely cut off by the Axis powers, while the Caucasus region was controlled by the Ottoman Empire.

In fact, by this point, the Soviet Union's land-based foreign trade lifeline was essentially under German control.

The Volga River, which forms the dividing line between Europe and Asia in the Soviet Union, eventually flows into the Caspian Sea. This means that the entire European part of the Soviet Union could only connect with the outside world via the Caspian Sea and then through Persia.

Even if this route is considered part of the Soviet Union's European foreign trade routes, it can only be considered a secondary route, and now, due to the relationship between Persia and Germany, it is only half alive.

This is precisely what Joseph is very worried about.

"If Persia were to side with Germany, our direct communication routes with the outside world would be completely cut off, and we would only be able to communicate with other countries in Asia and the world."

"From this perspective, the Central Asian Highway becomes a strategic route that is in no way inferior to the Trans-Siberian Railway."

The advantage of the Trans-Siberian Railway was that it was entirely in the control of the Soviet Union and had connections to ports in the Far East.

However, the Central Asian Highway was obviously closer to the core of the Soviet Union, that is, the European part, and was relatively safer.

The terminus of the Trans-Siberian Railway was directly threatened by Japan, which had extremely poor relations with the Soviet Union and was an ally of Germany.

Although the Central Asian Highway passes through Afghanistan, Afghanistan is also a region traditionally influenced by the Soviet Union, and the Soviet Union's control over the region is manageable, especially since Germany finds it difficult to extend its reach. Joseph stated directly, "Now, the Trans-Siberian Railway and the Central Asian Highway can be seen as channels connecting us with the United States and East Africa."

"Especially the Central Asian Highway, which is controlled by us and East Africa and is not affected by third countries."

Afghanistan is clearly being overlooked here; if Afghanistan had even half the strength of Japan, Joseph wouldn't have said that.

"In other words, if we go to war with Germany in the future, all other routes except the Central Asian Highway could be cut off by Germany and its allies."

"Therefore, from a strategic point of view, the Central Asian Highway has become the most important foreign trade and communication channel for us."

"We must abandon our prejudices against East Africa and build and operate this almost only safe land route. At the same time, as we prepare for war, the Central Asian Highway can also be fully connected to our strategic rear."

The Soviet Union's strategic rear mainly referred to the area on both sides of the Ural Mountains, which happened to be closer to the Central Asia Highway.

After listening to Joseph's analysis, Livinov exclaimed, "Assuming war breaks out, the Central Asian Highway would be of immense strategic value to our country!"

Joseph nodded: "The only drawback of the Central Asia Highway right now is that it's just a highway, and the road conditions aren't very good."

"Moreover, the main purpose of building this highway in East Africa is to connect with the Far Eastern empires. Our country is not very important in the eyes of East Africa."

"We must correct these problems, otherwise, they will greatly affect our future war with Germany."

Joseph was no longer considering the negative impact of the Central Asian Highway on Soviet sovereignty as he had in the past; on the contrary, he was somewhat dissatisfied with the construction standards of the Central Asian Highway.

Livinov asked, "Comrade Joseph, do you mean that we should increase East Africa's attention to the Central Asian Highway through economic cooperation with East Africa?"

Joseph said, "It's not just about getting attention in East Africa, but more importantly, about making East Africans aware of the enormous economic value behind this highway."

“For capitalist countries like those in East Africa, they value economic interests more. If we can offer them that, I think they will definitely increase their attention to the Central Asia Highway.”

“They are even willing to upgrade this highway, or even build a railway between the two countries.”

"Therefore, after you go to East Africa this time, you can personally talk to the East African government. We can trade energy, minerals, commodities, food and other materials with East Africa around the Central Asia Highway."

East Africa did not pay much attention to the Central Asian Highway. In fact, the original purpose of building this highway was to support the Far Eastern Empire.

However, aid is undoubtedly a losing proposition, so East Africa has tried its best to keep construction costs low for the Central Asian Highway project.

This is not what the Soviet Union wants to see now.

Joseph planned to use incentives to get East Africa to invest in the Central Asian Highway, or even to build a railway directly.

He went even further, saying, "When you go this time, you can directly tell the East Africans that we can open up East African investment in Central Asia, including commodity imports, mineral mining, and industrial investment."

His words directly shocked the entire Soviet leadership, essentially meaning that the Soviet Union had completely opened up the Central Asian market to East Africa.

Livinov had not expected Joseph to be so bold, after all, for a long time, both the Soviet Union and Tsarist Russia regarded Central Asia as their "heartland".

In its past, Russia dared not easily allow the Far Eastern Empire and the United States to extend their reach into Central Asia.

Joseph said with a serious expression, "We have to prepare for the worst. If we can't resolve the German threat in the future, then our country has no future."

"Therefore, comprehensive cooperation with East Africa is necessary for us at this stage."

"If war breaks out in the future, we will need to obtain oil, rubber, food, and various industrial products from East Africa. The Central Asian Highway is far from meeting our needs. Therefore, during your trip to East Africa, you should do your best to facilitate the construction of the Central Asian Railway."

Clearly, as the world's third-largest oil producer (excluding Venezuela), the Soviet Union itself did not lack oil, but Joseph's statement was obviously based on consideration of extreme circumstances.

For example, the Soviet Union's oil extraction is concentrated in the Caucasus region, accounting for about 70% of the country's output. However, this region is too close to the border and is especially influenced by the Ottoman Empire.

If Persia were to side with Germany, it would further increase the threat to Soviet oil fields in the Caucasus region.

The same principle applies to food. Ukraine, the Soviet Union's most important grain-producing region, was also directly threatened by the Axis powers.

If Germany had launched a war against the Soviet Union, the Soviet Union would have been highly likely, if not inevitable, to face food shortages.

Therefore, Joseph would only say this if he were considering the worst-case scenario.

If this were to happen, and the Soviet Union were to face a blockade by the Axis powers, the Central Asian Highway would become its only lifeline for obtaining external supplies.

With his explanation, the Soviet leadership once again recognized the importance of the Central Asian Highway to the Soviet Union.

Chief of the General Staff Shaposhnikov said, "It seems that cooperation with East Africa is inevitable, and if we want to win over East Africa, we can only offer them great benefits and give them a bargaining chip that they cannot refuse."

"Compared to these bargaining chips, even fully opening up the Central Asian market to East Africa is not that important."

The Soviet Union was such a large country that it was also one of the world's largest markets, with total consumption power ranking at least fourth in the world, after Europe, North America, and East Africa.

Since the Soviet Union implemented its industrial program, its market has been highly closed. Therefore, if the Soviet Union opened up the Central Asian market, it would be equivalent to opening up trade with East Africa, and the Soviet Central Asia region would become a transit point in this major process.

After all, if East African industrial and commercial goods were exported to the Soviet Central Asian territories, they would inevitably be resold and circulated to other parts of the Soviet Union.

In the past, Joseph would naturally not have dared to allow East African industrial products to enter the Soviet market on a large scale. After all, given the level of industrialization and the quality and diversity of goods from East Africa, it would inevitably have a huge impact on the Soviet Union's current industrial system.

However, the Soviet Union is now facing a life-or-death crisis. If war breaks out, the question will be whether it will be able to buy supplies.

Just like the Far Eastern Empire today, facing Japanese aggression and blockade, even obtaining international aid is difficult.

For this reason, Joseph had no choice but to open up the Central Asian market, so as to test the waters first.

(End of this chapter)