Persian Empire 1845

Chapter 125 Government Meeting
In his office, Amir received the texts of the Treaty of Saigon and the Treaty of Tuoyan, which contained the greatest benefits Iran had not received in years: not only land, but also a protectorate.

"I never expected we'd have so much to show for it. Now we can head straight to Hong Kong."

Pezeshkian addressed the ministers at the cabinet meeting, outlining the benefits of the treaty, including access to markets for goods, diplomatic privileges, and a continuous flow of wealth.

"According to the Governor, we have acquired an excellent port in the East, and the next step should be to trade with Qing China. The department will provide all support to our merchants so that they can establish a foothold as much as possible."

Iranian businessmen, under the protection of the government, ventured out into the world, leaving their mark in Central Asia, the Caucasus, the Ottoman Empire, India, and Somalia. They even reached as far as Batavia (Jakarta) and recently arrived in Hong Kong, officially entering East Asia.

"Now that this is Iranian territory, we must protect it. This is crucial to our strategy."

Furthermore, according to this account, a major upheaval is about to occur within the Qing Dynasty.

This information was provided by an Iranian businessman in Hong Kong. He said that there was a man in the area who claimed to be the son of God. He claimed that God had sent him to solve problems, and many local people believed in him.

Local officials had planted spies within this group. The spies reported that they were different from previous rebellions; these people were steadfast in their beliefs, highly motivated, and their military training was well-organized—they were not a disorganized mob. This was extremely serious, so measures had to be taken; otherwise, a major disaster would ensue.

Local officials devised two strategies: first, to report to the imperial court and request that it send troops to suppress them; second, to directly offer them amnesty, granting high-ranking positions and generous salaries to their core members, and instructing their followers to disarm and submit to the imperial court.

However, it seems that things are no longer going to work out. Their leader sensed the danger and decided to revolt. They could all feel the atmosphere was different in Hong Kong.

"So next, our country must improve its shipbuilding capacity as soon as possible. Currently, our merchant ships are completing domestic production, the Abbas shipyard has started building ships, and two government shipyards will be built in Bushehr and Chabahar. The government will reduce taxes for private shipbuilding for up to seven years and provide interest-free loans."

Currently, Iran has over 100 merchant ships, less than one percent of the number in Britain. With the expansion of foreign trade, ship orders have increased, and the country currently owns a private shipyard in Bushehr, as well as a shipyard under construction in Bandar Abbas. Furthermore, some are preparing to invest in the shipbuilding industry, driven by favorable incentives and the profitability of shipbuilding.

“I said Hussein, your department talks about subsidizing this industry and giving preferential treatment to that industry every day. If this continues, the government might as well support all industries and stop investing in other areas.”

Rouhani voiced his dissatisfaction with the business sector, arguing that even though the military accounts for the largest share of government spending, its low starting point and perceived threat to Russia necessitate further increases in military spending.

"Your Excellency Rouhani, you are well aware of the state of our country's industry. We are basically lacking in everything. Industries like textiles and papermaking can rely on private investment, but steel, military industry, and railways all require government subsidies and investment to develop. Private individuals simply will not invest in such industries."

Hussein explained the importance of subsidies and incentives from the perspective of the government, but Rouhani, not one to be stubborn, simply said, "However, the government cannot subsidize and incentivize all businesses; wouldn't that just increase the burden on the government?" Hussein had also considered this point: "After these businesses turn a profit, a portion will be allocated to the government as revenue, and loss-making businesses will be sold to merchants to operate. But some industries must continue operating even at a loss, otherwise the government's power will diminish, and it will eventually become a slave to foreigners."

This is a different path in the world. Iran has weak capital and naturally needs government support. Once the private sector grows, they can then take on a part of the economic development.

"That would be best, otherwise the government would just be their babysitter."

Everyone laughed, knowing Rouhani was joking, but Iran's economy was indeed not doing well. It lacked the preemptive colonial power of Britain, the wealthy aristocracy of France, and the massive population of Russia. Everything required hardship for the Iranian people and government.

“Recently, the Shah is going to visit the shipyard in Bandar Abbas and Tabriz, both of which are to visit local factories, but the threat from Russia is also looming, so we need to move forward in tandem.”

Shah will only make inspections, but the government has many other considerations. If things don't go well, they'll at least go to jail.

The government incorporated the two treaties into its diplomatic achievements and formally established the position of Governor-General of Indochina, preparing to expand trade eastward.

At this time, domestic newspapers and propaganda machines were everywhere extolling the benefits of industry and the news of the Shah's upcoming visit to factories, giving the impression of a strong push for economic development. This made even their nemesis, Russia, lower its guard.

Nearly 1000 million rials of capital flowed into the shipbuilding industry, the most promising sector, all personally funded by the Shah. Nasser al-Din planned to leverage his own funds and government policies to develop Iran's shipyards from both internal and external perspectives, aiming to make the shipbuilding industry bigger and stronger. Although this approach might lead to industry monopolies, the benefits outweighed the drawbacks.

Besides shipbuilding, the use of steam and machinery was also what he paid the most attention to, because it was one of the core aspects of the Industrial Revolution. These were industries that Carlo had to pay attention to, and they were also money-devouring beasts that cost him a lot of money.

Besides the aforementioned industries, the royal family has also invested in Iran's currently weak heavy industries, such as steel and machinery manufacturing. However, due to limited funds, these industries are primarily supported through policy measures, with the Shah's investment serving primarily as a form of support. Although the individual investments are small, the costs are substantial, given the large number of industries involved and the accumulated expenses.

However, while heavy industry is important, Nasser al-Din also invested heavily in new technologies such as petroleum, chemicals, improving the efficiency of steam engines, and telegraphs, and focused on training talent in these areas, believing that only talent could bring continuous progress to Iran.

As the royal family invests in these industries, it will inevitably have a significant impact, affecting the lives of many and drastically changing their destinies. This is precisely what the Shah can foresee.

(End of this chapter)