I'm the Dauphin in France

Chapter 821 New Back Garden

Joseph smiled and said, "In fact, given that we can exert great influence on Northern Italy, military occupation is the least effective means."

He had already sorted out the tactics of Europe and America in the 21st century before Napoleon finished fighting in Alexandria. Now, facing the expectant and suspicious eyes of Talleyrand and Ségur, he spoke:

“We will start from two aspects – economic and publicity.

“Let’s talk about the economy first.

"For example, if we want to strengthen our control over Milan, we can first provide them with a high loan..."

The eyes of the two chief officials of the financial system twitched.

Conquerors have always made huge amounts of money from occupied territories. This is the first time I've heard of a loan being given to the occupied territories in return.

Segur asked carefully, "Your Highness, are you saying that we should force them to accept loans with extremely high interest rates?"

If the interest rate is over 35% and physical objects are used as collateral, it can be considered a good business.

Joseph shook his head: "No, no, if the interest rate is too high, it will only cause resistance. Well, 3% interest is about right."

"3%? How can this be possible?" Segur exclaimed. You know, the interest rate of the French central bank on deposits is more than 3%. If it lends money at such a low interest rate, wouldn't it lose as much as it lends?

Joseph smiled and said, “Actually, I wanted to get an interest-free loan, but doing so would alert others, so I set it at 3%.”

"But……"

Joseph signaled him to calm down and explained: "We will use low interest rates to attract northern Italian states to actively request loans, and use this as a kind of 'special care' from France to make them more willing to turn to France.

“These loans will all be provided using paper money and will not put too much pressure on our finances.

"Countries that receive loans can only use the money to buy goods from our country or the Caribbean. This will effectively make them a dumping market for our country."

Joseph paused and said in a more serious tone:

“At the same time, these loans are subject to certain conditions.

“First, the recipient country must accept franc banknotes for domestic circulation, or at least be able to freely exchange them for its own currency in banks.

“Secondly, these loans can only be used to invest in certain industries, and these industries must have a certain percentage of French shares.

"Finally, the use of the loans is subject to our country's supervision."

Talleyrand and Ségur were both smart men. They soon understood something of what was going on, and the suspicion in their eyes gradually turned into admiration.

Once this loan is invested, a large market will be available almost immediately, and it is a market regulated by France.

With such a low interest rate, the northern Italian states would certainly rush to take out loans. France could even add some political conditions and it would not be rejected.

As for the conditions mentioned by His Royal Highness the Crown Prince, except for the use of paper money for circulation, they are all common loan requirements of this era.

However, this method can only be used within France's sphere of military influence, otherwise others can default on their debts.

Joseph continued:

"In addition to loans, we also want to help the northern Italian countries develop their industries."

This time, Talleyrand and Ségur seemed a little numb. They just looked at each other and waited for the next step. "For example, Milan has some silk and steel forging industries. We can provide them with textile technology and smelting technology, and even sell steam engines." Joseph immediately added, "Of course, it is limited to crude silk and primary smelting.

"These primary processed products will go to France for finishing, such as making into fashion and iron products, and then be sold back.

"If they want to obtain my country's industrial and technological support, they must first accept my country's Patent Law. Secondly, they must recognize the assessments made by my country's rating agencies on their industries and credit."

In fact, after France achieved financial control over these small countries through loans, patent laws and the like no longer mattered.

If there is a problem, we can directly use domestic laws to judge it - if you dare to have any opinions, we can use some financial means to deter them. If it really doesn't work, there are French troops watching you.

Even if France punishes such a small country that is in the wrong, it will not be opposed by surrounding countries, and they may even join France in criticizing it.

Talleyrand and Ségur felt they understood, but not quite comprehended it, so they just kept nodding.

It was difficult for Joseph to explain it to them in too much depth at this time. If he really wanted to explain it thoroughly, it would probably take one or two months of courses.

This is actually the "vertical division of labor system" of later generations.

Use finance, patents, credit ratings and other things to lock dependent countries into the low-end industrial chain.

But this is far better than letting them continue to serve as a source of raw materials. After all, low-end industries also have small profits.

With this part of profit, the purchasing power of these countries can be enhanced, so that they can better play the role of French market.

At the same time, their industrial development will be complementary to that of France. Once they leave France's upstream industries, they will soon go bankrupt.

In this way, these countries will be tied even more firmly to France.

On the other hand, under Joseph's deliberate deployment, the industrial development of these Italian states would be heavily biased towards a certain field, while completely abandoning other fields.

This is the requirement he had previously added to the loan conditions: "Loans can only be used to invest in specific industries."

Even if this "biased" industrial model develops, the country as a whole cannot significantly improve its national strength. It is just like a certain "great cosmic country" in the future, which seems to be very strong in several industries, but the national economic system is extremely fragile and can never get rid of its dependence on the great country across the ocean.

Moreover, the industrial systems of these Italian states were required to have French shares from the very beginning, and France could exert influence on them at any time.

In the end, this place will only become France's "back garden".

Joseph waited until Segur finished recording, then continued:

"Economic means can ensure that the Italian countries have the same interests as our country, but if we want them to follow France willingly, propaganda is the most important thing.

"Even if the propaganda is good enough, their people will be seriously dissatisfied if you don't let them serve France."

Talleyrand's brain was overloaded by what he heard, and he subconsciously asked, "Your Highness, how can propaganda have such a great effect?"

Joseph motioned to Emang to change a new cup of tea for him, and then said: "The basis of all this is to abolish the strict news censorship mechanism in Italy.

"At least it is to relax the control of news in our country."

Talleyrand said with some concern: "Your Highness, it should not be difficult to do this for countries like Genoa and Lucca, but I am afraid there will be great resistance in Parma and Sardinia."

(End of this chapter)