Reborn as King of South America

Chapter 523 Peace talks reached, war ends

“Britain made several demands to the Empire:
1 The Empire immediately stopped all military operations in Paraguay and the Republic of Brazil, and the border between Paraguay and the Republic of Brazil was restored to the pre-war line.

2. Maintain Paraguay's independence and autonomy, while recognizing and respecting the empire's special rights and interests in Paraguay.

3 The Empire needed to maintain British commercial interests in Paraguay and the occupied areas of the Republic of Brazil, send troops to restore order, and stop local rioters from damaging British interests.

4 The Imperial Army will gradually withdraw from the areas occupied by the Brazilian Republic. The withdrawal of all troops will be completed by May at the latest. The Brazilian Republic may provide compensation at its discretion, but the State of Sao Paulo is not included in the compensation.

In the Xianghe City (Posadas) War Headquarters, Tang Jingsong, Director General of the Ministry of Foreign Affairs who came from afar, explained the armistice conditions proposed by Britain to a group of senior officials.

"After losing two southern states and eight northern states, Sao Paulo State became the most populous first-level administrative region in the Republic of Brazil, with a total population of 200 million, accounting for one-third of the total population. Moreover, Sao Paulo State is adjacent to Rio de Janeiro. If the Empire forces the cession of Sao Paulo State, the Republic of Brazil will not only lose about one-third of its population and the most prosperous core area of ​​the economy, but the capital Rio de Janeiro will also become a frontier area, facing military threats at all times.

The Brazilian Republic cannot afford to lose the state of São Paulo, and neither Britain nor the United States will agree to armistice conditions that would allow the Empire to permanently occupy São Paulo.

"General Tang is inclined to return the state of Sao Paulo to the Republic of Brazil?"

asked Lt. Gen. Zhao Yongzeng, chief of the Army General Staff.

"The bottom line of the Empire is to actually control Paraguay and cede Paraná. Because the war is going well, Sao Paulo, southwestern Goiás, southern Mato Grosso, southern Rio de Janeiro and other areas have also fallen into the hands of the Empire. However, these areas are additional gains. The Empire has obtained excess results in this war. Continuing to increase the price is likely to anger the British and destroy the diplomatic relations between the Empire and Britain, which have finally eased. It is unwise."

"The British must also respect the legitimate rights and interests of the Empire. Will they turn against the Empire again because of the Republic of Brazil? The lesson of the Anglo-Chinese War of 1879 is not far away. I don't believe that the British will send army troops to fight the Empire again."

An Army officer disagreed.

"Britain does not need to send its army to land on the Empire's mainland. It only needs to send warships to block the Empire's external communication channels to deal a heavy blow to the Empire's overseas commercial trade, industrial product exports, immigration transportation and other fields. Turning against Britain is a lose-lose behavior. The Empire's current main goal is to digest the fruits of victory, continue to increase immigration intensity, improve industrial technology, and consolidate the Empire's overall strength. There is no need to break with Britain because of the ownership of São Paulo State."

"Actually controlling Paraguay and ceding Paraná State can bring the Empire nearly one million square kilometers of new territory. It will take about ten years to digest and develop the two territories. Sao Paulo State, including the Republic of Brazil, can be put off for ten years. When the Empire has completely digested the two places, its comprehensive strength will be greatly improved again. For the Empire, it will not make much difference whether it fights one more Sao Paulo State or one less Sao Paulo State."
"General Luo, how is the war going in Sao Paulo State?"

Li Mingyuan looked at Luo Linshan, the Chief of the Army, and asked.

"Major cities in the eastern coastal areas, such as Peruibe, Santos, Sao Paulo, and Campinas, have all been occupied by our army. Part of the enemy has retreated to the west and north. In Sao Paulo State, 70 percent of the industry and population are under our control."

“How is the progress of the removal of machinery and equipment and the confiscation of enemy assets in the occupied areas?”

"The statistics of various lathes, machinery and equipment, factory areas, enemy warehouses and assets have been completed. It is estimated that it will take 3 to 4 months to complete the demolition and relocation of all the equipment."

"Director Tang, besides sending a formal diplomatic note to the Empire, what other actions have the British taken?"

"Your Majesty, the British fleet stationed in Guyana and the Caribbean is on its way to the coast of the Republic of Brazil. The fleet stationed in the Falkland Islands is also showing signs of being dispatched."

"What are the moves on the American side? What conditions have they put forward for a ceasefire?"

"The Americans have been quiet recently. Apart from sending some landing troops to assist the Brazilian army in defending the eastern defense line of Rio de Janeiro, and the expeditionary fleet patrolling the central and northern waters of the Brazilian Republic from time to time, there have been no major moves."

Tang Jingsong replied respectfully: "However, the Americans' price for an armistice is still very high, and they continue to insist that the Empire unconditionally withdraw from the entire territory of Paraguay and the Republic of Brazil."

"Is the United States still clamoring for an all-out decisive war with the Empire?"

"No, the Americans no longer mentioned a total decisive battle."

"Americans are still calculating."

Li Mingyuan smiled slightly.

"Your Majesty, the war has lasted for nearly half a year, and the total fiscal expenditure of the empire has exceeded 6000 million Han Yuan. The empire's foreign trade and immigration transportation have been affected to a certain extent. At the same time, the intervention of Britain and the United States has made the situation in South America more complicated. I suggest that we should accept Britain's mediation and end the war under certain conditions."

Finance Minister Zhao Yan suggested.

"The fiscal expenditure is not small, but the Empire has gained more from the war. Not to mention the newly occupied territories and mineral resources, the shipyards, machinery, lathes, enemy assets, and captured warships, merchant ships, weapons and equipment relocated from the occupied areas such as São Paulo State and Rio de Janeiro alone, add up to more than hundreds of millions of Han Yuan. The current battlefield situation is very good, and it is not necessarily a bad thing to continue to persevere."

Li Mingyuan did not make a clear statement, and the commander of the 55th Division, Ye Chenglin, refuted, "War cannot only consider immediate interests, but also long-term interests, as well as international influence and the impact on the country's subsequent development. The Americans are trying their best to win over Chile, Peru, Bolivia, Brazil and other countries in the surrounding areas of the empire. The Chilean army is gathering and mobilizing to the southern border area, and the navy fleet is also conducting frequent military exercises in the Pacific Ocean.

Moreover, there are voices in Britain that are compromising and easing tensions with the United States. If the British are pushed to the side of the United States because of disputes over the division of territories in occupied areas such as Sao Paulo State, the external situation of the empire will become extremely bad.

"What Chief Tang, Chief Zhao, and General Ye said all make sense."

Li Mingyuan spoke up and stopped the argument.

"Britain's interests need to be taken seriously. The blockade formed by the United States, Chile, Bolivia, Peru, Brazil and other countries is also a major threat. It's time to end the war.

General Tang, formally replied to the British that the Empire agreed to end the war on the premise of ensuring the Empire's special rights in Paraguay and ceding the state of Paraná. "

"Your Majesty, what about compensation and the sovereignty of the state of São Paulo?"

"The state of São Paulo can be returned to the Republic of Brazil as a bargaining chip for territorial exchange after the Republic of Brazil and the United States make concessions. The amount of compensation can be further negotiated. In short, the principle of negotiation is to gain as much benefit as possible for the empire."

"Yes, Your Majesty."

On February 2, Tang Jingsong returned to Chang'an and responded to the British ambassador to the Han Dynasty's request for a ceasefire.

On February 2, after several days of intensive consultations and negotiations, Britain and the Kingdom of Han reached an agreement on the terms of the armistice.

On February 2, Britain issued an armistice announcement to the Republic of Brazil, the Brazilian Empire, and the United States, demanding that the U.S. expeditionary fleet withdraw from South America, while refusing to recognize a series of garrison treaties signed between the United States and the Republic of Brazil.

On February 2, the US government issued a statement reaffirming the Monroe Doctrine, emphasizing that the United States stationed land and naval forces in the Republic of Brazil to maintain peace and stability in the Republic of Brazil, and firmly opposed Britain's unreasonable demands.

On February 2, the Republic of Brazil, which was supported by the United States and believed that it had made a profit, echoed the US statement and opposed the negotiation conditions of ceding Paraná and Mato Grosso do Sul states and paying compensation.

On February 2, in order to deter the United States and the Republic of Brazil and end the war in South America as soon as possible, the US Caribbean Fleet and the fleet stationed in the Falkland Islands arrived at the port of Rio de Janeiro to use force to deter the central government of the Republic of Brazil. At the same time, with the support of Britain, the Han army resumed its attack on Rio de Janeiro.

On February 2, the British government and investors sold off a large number of U.S. stocks, leading to a run on the New York Stock Exchange. The stock market value evaporated by more than $25 million, and the stocks held by U.S. investors also depreciated by more than $5 million compared to normal market conditions.

Because the financial crisis caused by the stock market crash spread to other industries, after suffering a heavy blow, the fanatical war atmosphere that had originally permeated the United States quickly cooled down, and the US government's attitude and demands for a ceasefire gradually softened.

On March 3, after several rounds of negotiations, the five countries of Han, the Republic of Brazil, the Brazilian Empire, the United States, and Paraguay signed an armistice agreement under the witness of the United Kingdom. The main contents include:
1. Paraguay regains its independence, the signatory countries respect the special rights and interests of the Han State in Paraguay, the border between the Republic of Brazil and Paraguay is restored to its pre-war level, and the sovereignty disputes in Mato Grosso do Sul, southeastern Goiás, southern Mato Grosso and other areas are temporarily shelved.

2 The Republic of Brazil ceded the State of Paraná to the Kingdom of Han as compensation for starting the war. In exchange, three months after the signing of the armistice agreement, the Kingdom of Han returned the occupied State of São Paulo and the eastern part of Rio de Janeiro to the Republic of Brazil.

3. The United States was allowed to lease a military base with an area of ​​no more than 5 kilometers in the port of Rio de Janeiro, the capital of the Republic of Brazil. The number of troops stationed shall not exceed 600, and US warships shall not be allowed to dock in the port of the leased area.

4. In terms of foreign trade of the Republic of Brazil, the United Kingdom receives the same best trading nation treatment as the United States, including tariff reductions, investment incentives, and priority for mineral and railway investment.

5. Exempt the Republic of Brazil from economic compensation to the Kingdom of Han and Paraguay.

The armistice agreement initially met the demands of all parties. Although the Republic of Brazil ceded the state of Paraná, it was exempted from a huge amount of war reparations, which was of certain benefit to post-war economic development and recovery.

On the American side, it stabilized the situation in the Republic of Brazil, successfully acquired its first overseas military base, and acquired the Republic of Brazil as an economic colony.

As for the United Kingdom, the balance of power in South America was temporarily restored, and it obtained the same preferential trading nation treatment as the United States within the territory of Brazil. However, the wars in Paraguay and the subsequent war in Brazil also affected the strategic decision-making of the United Kingdom, and the senior government officials in the United Kingdom have already made a decision.

The United States will gradually shrink its sphere of influence in South America, push the Han Kingdom to the forefront, and let the Han Kingdom serve as the main force to resist the expansion of the United States in South America.

As for the Han Kingdom, due to the military intervention of the United States and the interference of Britain, it failed to eliminate the Brazilian Republic regime in one battle and occupy the entire Brazilian Plateau. However, it gained control of the entire Paraguay and ownership of the Paraná State, and completely destroyed the Brazilian Republic’s naval fleet and paralyzed the Brazilian Republic’s technological accumulation in shipbuilding, machinery, textiles and other industrial fields. It is still considered the biggest winner in this war.

As for Paraguay and the Brazilian Empire, they were completely reduced to background boards. No one cared about their interests, and no one was willing to speak up for their interests. This was a true portrayal of the survival of the fittest and the law of the jungle in the 19th century.

(End of this chapter)