Wind Rises in North America 1625

Chapter 599 Compromise (Part Two)

The Alcázar Palace, Privy Council meeting room.

King Philip IV of Spain stood before a tall arched window, the afterglow of the setting sun casting dappled and dim light on his solemn black robes through the stained glass.

The ruler, known as the "King of the World," appeared somewhat lonely against the backdrop of the grand palace, a loneliness that seemed incongruous with the vastness of his empire.

He inherited a vast empire, but also took on countless thorny problems.

The quagmire of the European war, the secessionist movements in Portugal and the Netherlands, the economic devastation at home, and the loss of his trusted chief minister... all of this left him feeling utterly exhausted.

Inside the hall, the tapestries embroidered with gold thread, the huge oil paintings from Flanders, and the intricate gilded carvings on the ceiling all showcased the ultimate luxury of the Habsburg dynasty. However, at this moment, this luxury was suppressed by an almost suffocating atmosphere of solemnity.

Marquis Padilla, Chairman of the West Indies Commission, recounted the devastating news from across the ocean in a tone as calm as possible, yet unable to conceal its grim nature.

His voice echoed in the empty hall, each word falling like a heavy lead weight.

The defeat of the American colonial army, the loss of control of the Pacific Ocean, the disruption of the Peruvian silver transport route, and the risk of large-scale rebellion by the natives throughout the colonies.

Finally, he used almost all his strength to utter the most shocking news: "...According to newly confirmed intelligence, Panama...fell two months ago."

He concluded by mentioning the West Indies Affairs Commission's reluctant proposal for negotiations.

As the discussion deepened, Philip IV's expression grew increasingly grim.

His fingers gripped the edge of the windowsill, the veins on the back of his hands bulging.

When he heard that Panama had been lost, he abruptly closed his eyes, his body swaying almost imperceptibly, as if struck by an invisible hammer.

"Sigh..." Philip IV sighed inwardly.

He slowly turned around, his face still bearing the distinctive dignity of the Habsburg family, but the fine lines at the corners of his eyes and the deep-set eye sockets revealed his weariness and the heavy pressure he was under.

He did not respond immediately, but instead swept his deep eyes over the two ministers in front of him.

"So..." The king's voice was calm, yet carried an undeniable air of authority, "You mean that the holy and great Kingdom of Spain, in the new continent bestowed upon us by God, was utterly defeated by a country that... had never even appeared on our maps before, to the point that they have to cede the land we conquered with sword and cross, and pay them enormous reparations they could never have imagined, in exchange for... peace?"

Marquis Padilla lowered his head deeply, his cheeks burning with shame, and dared not meet the king's gaze.

At this moment, Baron Cruz took a deep breath, stepped forward, and bowed, saying, "Your Majesty, it is not that the Kingdom lacks strength or courage, but rather that the strategic predicament is caused by the obstruction of the ocean and the cunning of the enemy. The strength of the American colonies has been nearly exhausted under repeated blows, while the resources of the homeland are deeply entangled in the European battlefield."

He raised his head and bravely met the king's gaze: "Your Majesty, Governor Pacheco said something extremely harsh to me in Mexico City, but after careful consideration, I believe it may reveal a cruel truth."

"He said that we now have only two paths: either to devote the entire nation's resources to organizing an unprecedented transoceanic expedition, which could cripple our foundations in Europe; or to engage in painful negotiations, exchanging temporary and partial concessions for the survival of the colonies and... a respite for the kingdom's finances."

"Any hesitation, procrastination, or unrealistic fantasies will only cause us to bleed more and lose more."

"The fall of Panama is the latest proof. It's not just about losing a port, but about having the throat connecting two oceans strangled."

"If... if we lose Mexico City, or if the Cichua people of Peru or the Araucan people of Chile are inspired by the victory of the new Chinese and launch a large-scale rebellion... then we will lose not only gold and silver, but the rule of the entire new world."

Philip IV frowned deeply, lost in thought.

He was not a foolish ruler; he was fully aware of the kingdom's predicament.

The resignation of Chief Minister Olivares in January last year was itself his response to the current crisis.

He walked to his desk, where a map of Europe was spread out, representing immense pressure from another direction.

"The Portuguese are stirring, the French are deploying troops on the border, and the Dutch fleet is provoking us at sea..." The king seemed to be talking to himself, yet also to his two ministers, "Now, in the Americas, which we consider our backyard, a monster has appeared, ready to devour our flesh and blood..."

He fell silent. For several long minutes, the only sounds in the hall were the crackling of the burning wood in the fireplace and the soft tapping of the king's fingers on the table.

A fierce internal struggle was raging within him: the dignity of the empire versus the harsh reality, the life-or-death game in Europe versus the financial lifeline of the Americas, the pride of a monarch versus the rationality of a strategist—all were constantly being torn apart.

Today, the Spanish army is suffering repeated defeats in the Southern Netherlands, Catalonia, and Italy. In particular, in the last two years, due to the military threat from Xinhua, its supply lines from the Americas have been intermittent, leading to its growing decline on the European battlefield.

At this time, Spain's greatest enemy was the French. Large swathes of territory in the Southern Netherlands had been occupied by the French, and the Catalans, who were fighting for independence, had also sided with King Louis of France. The Portuguese rebellion, supported by France, could not be quelled. If the situation deteriorated further, Spain would be in danger of disintegration.

Under these circumstances, the Kingdom of Spain desperately wanted to avoid any interference from the Americas, lest it be defeated in its life-or-death struggle with France. The consequences of defeat to France would be catastrophic; not only might the Southern Netherlands fall, but Catalonia might also be seized by the French, and Naples might even be occupied. In that case, Spain would be reduced to a completely defeated nation at the mercy of others, something His Majesty Philip IV could not tolerate.

Now, the wealth of the Americas is under deadly threat, with less and less gold and silver flowing into the country, plunging the kingdom's finances into crisis once again.

It's hard to say whether the Kingdom of Spain will face bankruptcy again after being unable to repay its huge debts on time.

Finally, Philip IV turned around, his face bearing a complex expression that mixed pain, humiliation, and helplessness.

"Marquis Padilla"

"Your subject is here," the Marquis replied hastily.

"In the name of the King of Spain and the lords of his overseas territories..." The King's voice was low and slow, each word seemingly carrying the weight of a century of imperial glory, "I hereby formally authorize your West Indies Affairs Committee to make initial contact with that... New Continent China Republic for ceasefire and peace negotiations."

"Yes, Your Majesty!"

Marquis Padilla and Baron Cruz felt a sense of relief, as if a heavy burden had been lifted, but then a deeper sense of weight, concerning the future of the empire, weighed on their hearts.

This is by no means a victory, but rather a helpless attempt to cut losses after a defeat.

“But…” The King’s tone suddenly turned stern, a hint of unwillingness flashing in his eyes, “The bottom line for negotiations must be strictly defined. Territorial cession… is limited to parts of California that are no longer effectively under our control. Indemnities… are absolutely impossible and must be cancelled. Trade terms… must guarantee Spain’s priority and tax benefits. As for the specific terms and details, they shall be drafted in detail by the committee and then submitted to me for my personal approval.”

"Yes, Your Majesty!" Marquis Padilla bowed and accepted the order, but a chill ran down his spine.

He knew perfectly well that the "bottom line" drawn by His Majesty the King out of dignity and to maintain his negotiating position was worlds apart from the initial conditions demanded by the new Chinese.

The future negotiating table is destined to be a long and arduous game filled with humiliation and compromise.

Baron Cruz.

"The minister is here."

"You are familiar with American affairs. In this negotiation, you will serve as the royal deputy representative (the representative for Spanish foreign negotiations is usually a higher-ranking nobleman, but the deputy representative is often responsible for specific matters). After the committee formulates the preliminary negotiation strategy and bottom line, you will immediately return to New Spain with the credentials... Do your best, use all your wisdom and means to strive for conditions that can save face for the kingdom as much as possible."

When the words "to save face" were uttered, the corner of the king's mouth twitched slightly.

“Yes, Your Majesty.” Baron Cruz bowed his head deeply, a barely perceptible bitterness flickering across his lips.

He knew that this was destined to be a thankless task, and might even bring him infamy in the future.

But he had no choice.

"Furthermore..." Philip IV waved his hand wearily, as if trying to dispel the unpleasant gloom before him, "By royal decree, Diego López Pacheco is hereby formally relieved of his post as Governor of New Spain, and is ordered to immediately relinquish his authority and return to Madrid to report on his duties."

"He must bear primary responsibility for this series of disastrous failures. The committee needs to discuss the selection of a new governor as soon as possible and put forward a suitable list of replacements for my consideration."

This order was entirely expected.

Count Pacheco, the governor of Mexico, will be the perfect scapegoat for this imperial defeat, using his political life and even his personal freedom to quell the anger of the king and the country.

"You may all leave," the king said finally, his voice filled with utter weariness. "I need to see a feasible negotiation proposal as soon as possible."

Marquis Padilla and Baron Cruz bowed and left the ceremony hall.

They all remained silent as they walked through the empty corridors of the palace.

Although they secured authorization to begin peace talks, thus averting the most direct military collapse of their American colonies, this was by no means a victory, but rather a helpless compromise following a complete defeat.

This marked the breaking point in Spain's unchallenged dominance in the Americas, a wound that may never heal.

As he boarded the carriage waiting outside the palace, Baron Cruz couldn't help but turn back again to gaze at the magnificent yet oppressive Alcázar Palace, his heart filled with uncertainty and heaviness about the future.

On the vast lands of the Americas, a new and powerful adversary is rewriting the fate of the Kingdom of Spain in the New World in an irresistible way.

The empire's sunset seemed irreversibly sinking towards the horizon.

It remains to be seen whether this compromise and concession can completely dispel the deep crisis looming over the empire.
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(End of this chapter)