Persian Empire 1845

Chapter 348 Process
The events in Venice caused some stocks on the Iranian stock exchange to plummet, resulting in heavy losses for some people. Fortunately, good news came and the prices rebounded; otherwise, several people would have jumped off buildings.

That's about all the strength the US-backed organizations have, mainly due to insufficient funding during the war. However, with the start of peace talks between the two sides, it's estimated that the negotiations will end soon.

However, the Confederate States of America (the South) brought in six other nations—Britain, France, Prussia, Austria, Mexico, and Iran—to bolster their own confidence. Since the North hadn't made any concessions in previous secret contacts, they had no choice but to seek external support. Balancing the power of the North and South was a shared desire of Britain and France; the Northern government, with its stronger overall national strength, was naturally the target of suppression.

Of course, he also tried to win over people from the north, such as the Russian Empire, which he wooed. The two countries were in dire straits and needed to support each other when necessary.

Of course, even the weakest Native Americans had their own seats, but they were merely there to listen and wait for the outcome; they still had no say in the negotiations.

From the very beginning of the meeting, the North and South were locked in a bitter legal dispute. Their private, clandestine meetings were kept secret by both sides.

To demonstrate their sincerity, both the North and South ceased military operations, including the ongoing military mobilization. Not only was the North facing the problem of separatism, but the Confederate States of America also discovered with alarm that its only weapon, cotton, was being challenged by other nations.

Countries realized that the economic impact of a single nation controlling a single commodity was too great, and thus began cultivating cotton in various regions. Britain cultivated it in Egypt and India; France attempted to expand its planting area in Algeria and West Africa; and Iran grew it in Transoxiana and East Africa. Furthermore, countries like Brazil also began expanding their planting areas, and the share of cotton production in the Confederate States of America was declining.

To prevent losing control, ending the war as soon as possible became the only option. Currently, this was the only factor affecting cotton. The Confederate States of America had exceptionally favorable geographical conditions, and their cotton yields per acre were generally higher than in other regions. Of course, insufficient yields per acre could be compensated for by expanding the planting area, although this would still increase labor input. But none of this mattered; all that was needed was to end the war.

"The United States is preparing for peace talks, and the Allied Powers have invited our country to participate. Gentlemen, let's all have a talk."

At the cabinet meeting, Nasser al-Din looked at his ministers and asked them to talk about their plans for the future of the Americas.

"Shah, this peace talks between the North and South are because both sides are at their wits' end and want a dignified ending, but as things stand, that's unlikely. They won't reach an agreement on the most crucial issues of slavery and unification, and it's estimated that fighting will resume soon."

Abdullah shared his insights, and Amir continued, "We just need to act towards Britain and France; they have invested heavily in the South. They certainly won't let the South suffer, but we don't know if the Northern government can hold on."

The other ministers nodded. They didn't know much about diplomacy and could only follow the words of the Foreign Minister and the Grand Vizier to express their support.

"That's the only way. We also need to be careful with our investments in the Americas. We mustn't let other unexpected events cause damage."

Once the war ends, the cotton market will definitely experience a sharp drop. I wonder if our cotton farmers can withstand it. Cotton cultivation in Iran is concentrated in East Africa and the Transoxiana region, and has developed rapidly due to the profits from the cotton textile industry.

Currently, Iran has hundreds of thousands of workers in its cotton textile industry, representing hundreds of thousands of families and millions of people. With so many people relying on this industry for income, the government must provide support. Protecting farmers is, of course, a matter of great importance to the Shah. Iranian agriculture is significantly more vulnerable than that of other Western countries, and protection is essential for the stability of farmers and society as a whole.

“Shah, we have made thorough contingency plans. Our textiles are currently sold to Austria, Russia, the Ottoman Empire, and the Far East, and maintaining our current market share should not be a problem. In order to improve the market competitiveness of cotton textile products, we believe that we can provide policy support to these front-line production factories when necessary.”

This approach, though simple, is highly effective. Since everyone's production technologies are roughly the same, product quality is indistinguishable, and there's little advantage in production costs, gaining an edge in market competition hinges on policy. Manufacturing is all about cost and quality; once technological advantages are lost, competition becomes brutal.

The Minister of Agriculture and Forestry immediately stated, "Cotton cultivation and the textile industry are closely intertwined. Although cotton production is not abundant, it is a vital economic product for the region and must be protected. We can reduce cotton taxes and establish a cotton reserve. If necessary, the government can step in to stabilize cotton prices."

"Then setting up a cotton reserve must cost a lot of money, right?" Musharraf asked.

"We don't need much, just enough to get through the beginning. This cotton crisis has also prompted many factories in the country to start building cotton warehouses. They are definitely preparing to buy up cotton at a high price. We just need to ensure the income of cotton farmers."

Hearing this, Musharraf breathed a sigh of relief. He wouldn't have to pay, but the Shah indicated that further spending was still needed.

"How is the construction of Baghdad progressing?"

When Shah suddenly asked a question, Amir immediately reported, "The main buildings in Baghdad are now two-thirds complete, with only some final touches left. The population has also increased to 120,000, mostly local construction workers, but also some merchants and students who have settled there. The city of Tashkent that we built was completed last year, and those people have expressed their gratitude to Shah."

"No need to thank me, I'm just trying to protect the culture. Baghdad's construction is progressing faster than I imagined. I wonder if there's enough funding?"

“Shah, don’t worry. The current cost for the entire city is 5825 million riyals. The Ottoman reparations and special appropriations from the Ministry of Finance have been invested here. In addition, people have been organizing fundraising and have raised more than six million riyals. Overall, there are no problems.”

Musharraf opened the financial statements and explained to the Shah. Baghdad, as the future capital, needed a thorough renovation. Railways needed to be built, telegraph lines needed to be laid, and numerous houses, factories, and government buildings all needed to be constructed. Only after these were completed could the country have a brand-new look to welcome tomorrow. Of course, there were also significant profits to be made, and everyone wanted a share; after all, they wanted the future capital as well.

(End of this chapter)