Persian Empire 1845

Chapter 190 Diplomacy of Economic Extension

"Shah had already said that no one should discuss this topic unless they have his permission."

Amir's tough stance silenced the Minister of Commerce and Industry, but the prospect of private banks has certainly attracted many. Looking at the US and UK, their rise has been largely aided by their financial industries; Iran, too, needs to encourage private banks if it wants to rise.

"However, we can discuss another matter: the opening of a stock exchange can be put on the agenda."

The development of modern factories brought not only new factors but also the emergence of the joint-stock system. Companies began to appear among private enterprises, and joint-stock companies needed to issue shares to raise funds, which required stock exchanges.

In 1602, the Netherlands established the world's first stock exchange: the Amsterdam Stock Exchange, to raise funds for the Dutch East India Company. Subsequently, the Paris Stock Exchange, the London Stock Exchange, and the U.S. Securities and Exchange Commission were established.

Following its economic development, Iran should establish a stock exchange to better utilize social capital. Through public offerings of stocks and bonds, companies can raise funds needed to expand production and conduct research and innovation, thereby promoting economic growth and development.

"Okay, that's good news too."

As things stand, the existing banks are sufficient; setting up a private bank is indeed difficult for them to compete with state-owned banks. However, they can still afford to dabble in the stock market.

What Amir didn't mention is that the government now has another major source of revenue waiting to be developed: oil. Iran's oil extraction in Baku is on a fast track; relying on the sale of kerosene, the company achieved profitability that year and continues to provide revenue to the government.

Kerosene lamps spread rapidly, and this efficient lighting method quickly drove candles out of the market. To encourage more people to use them, some shops even gave away free kerosene so that customers could try them out first.

Not only in Iran, but also in Russia, the Ottoman Empire, and Europe, the use of kerosene lamps increased. Apart from Galicia, only Baku, Iran, had kerosene processing facilities. As a result, kerosene exports began to gain a place in trade.

The company plans to further increase oil and refining production, a plan supported by the government, which allows them to obtain low-interest loans from banks for expansion. They intend to increase annual oil production to 2000 tons, enough to meet all market demand.

"Grand Vizier, this is the treaty our army signed with Siam, along with letters from Prince Abdullah and Governor Bahram."

Amir was satisfied with the treaty, but he was also troubled by the need to allocate funds to the colonies, because the map looked rather ugly. He thought it would be better to take Vietnam as well, which would make it look better.

Abdullah's letter stated that Iran and Qing China had reached a diplomatic agreement, establishing diplomatic relations and granting Iranian merchants the same treatment as British and French merchants.

This was also a reward for Iran's "abandonment of darkness and embrace of light," as they hadn't expected that the country's weapons could cause so many loyal and virtuous officials of the Qing Dynasty to suffer defeat. After intercepting the weapons intended for the Taiping rebels, they began equipping their own army. Zeng Guofan highly praised the weapons after using them, believing that the suppression of the rebellion was imminent. In his reply to the court's memorial regarding borrowing foreign aid for suppression and transporting rice to Tianjin, he pointed out: "If these two matters can be properly planned, both the immediate need to rely on foreign forces for suppression and transportation can alleviate temporary worries. In the future, learning from foreign wisdom to build cannons and ships can bring lasting benefits."

"Most of our expedition expenses were reimbursed by the Banque de l'Indochine, in addition to the indemnity from Siam. The governor said they were short 200 civil servants and hoped the government could send them over as soon as possible."

Amir nodded. "Just do as he says. It seems the Qing side is unwilling to give up its rights in Vietnam."

During the negotiations between Abdullah and Prince Gong, the issue of Vietnam was also discussed. Iran offered to exchange a sum of money for Vietnam, but the other side refused, saying that Vietnam had been a tributary state for hundreds of years, and it was absurd to exchange a country for a mere large sum of money.

Clearly, the Qing Dynasty lacked modern diplomatic awareness and remained trapped in its outdated system of investiture. But times had changed, and they needed external forces to propel them forward.

There were indeed some people within the Qing Dynasty who were aware of the world, but their power was somewhat weak, and coupled with the central government's distrust, they were unlikely to gain significant influence. The only option was to wait for them to make a change and see if an opportunity arose.

"We cannot take the initiative now. If Japan or Vietnam attacks our people, then we will retaliate directly."

Amir grew bolder. His repeated victories made him realize that Iran was no longer the impoverished and weak country it once was. Before the world was fully divided, Iran wanted to claim its own land.

Unlike those who commit murder in Europe, they did so to spread Allah's mercy and teachings. Look at places that once prospered because of Allah, but in the struggles after Muhammad's death, a group usurped the position of Ali and his descendants, and now they are in ruins. This is the price of their betrayal.

More and more people believe that Nasser al-Din is the messenger who will lead them to prosperity, and some even believe he is the reincarnation of Ali. Previously it was said to be Ismail, but now it's Ali, demonstrating the extent of their worship.

When news of Japan's actions reached Japan, everyone was stunned by the shamelessness of the Japanese. How could such a country exist in this world? Ah, Japan exists in the same way that Britain did.

The government departments unanimously agreed to teach Japan a lesson, and Governor Bahram proposed a strategy against Japan. On the surface, Japan is a single country, but in reality, it comprises hundreds of lords of varying sizes. Among them, the Satsuma lords in the southwest are the most enlightened; they possess advanced steam warships, a relatively good military industry, and a large army loyal to them. Conquering this region would suppress Japan's arrogance and, incidentally, teach them a lesson.

The Iranian Navy has also hired instructors from Britain to teach and opened a naval school in Bandar Abbas. The most difficult times are finally over; hopefully, Britain won't overreact.

(End of this chapter)