Persian Empire 1845

Chapter 368 Austria's Plea for Help
As the new year began, the first news we received was that Denmark, Prussia, and Austria were in peace talks. How could a small country like Denmark withstand the attacks of two great powers? It was best to make peace as soon as possible.

Prussia and Austria secretly reached an agreement to each have one of the two duchies, Schleswig and Holstein. This seemingly fair decision was actually disadvantageous to Austria, as the duchies were too far away, effectively making them its exclaves.

The cost of this war also devastated Austria's recently recovered finances, forcing Franz to write to Naserdin again to discuss the future direction.

Nasser al-Din's expression upon receiving the letter... was just like that of the old man on the subway. He's the Shah of Iran, not the regent of Austria. Why does he act like he's in his own home when discussing state affairs?

"Austria has written again, this time about a financial crisis."

Amir and Abdullah felt this was expected; they had both crammed on Habsburg history and discovered it was essentially a history of debt. Starting with Charles V of Spain, they had a history of debt and bankruptcy, followed by a cycle of debt-bankruptcy-debt-bankruptcy. Things were a little better under Queen Maria Theresa, but now it's started again. And then there's the Two Sicilies.

“Shah, Austria’s financial situation has never been good. Our country’s financial situation is also somewhat tight, and we probably don’t have much in the way of loans.”

"I know that, but we need another way. I'm almost the regent of Austria, and the Austrian emperor is a good friend of mine. We can't just be completely without any solutions."

Uncle, do you have any good ideas?

Nasser al-Din asked Abdullah if he had another idea, but he wasn't sure if it would work.

“Shah, according to our information, there are very few banks in Austria right now. Is there any way to find a solution here?”

Apart from the central bank, only a few private banks in Austria support commercial activities, rural areas rely on usury, and industrial financing is difficult.

Furthermore, Austria's central bank, the Austrian National Bank, is practically a government ATM. The bank relies primarily on printing money and lending, offering absolutely no contribution to stimulating the economy.

"This... I should have made him change sooner."

Naserdin felt he should have discussed Austria's financial and monetary issues with Franz during his initial visit, but he didn't. This has led to a somewhat dangerous situation now.

"Alright, I'll write to him to explain. Also, we can't let anything affect the kerosene trade between the two countries."

"Yes, we will monitor the situation in Austria. It will not affect trade between the two countries."

Naser al-Din waved for the two to leave. He then took out some stationery and began to write a letter.

"Dear Franz, your dearest friend sends his greetings from Tehran. I am very sorry about your loan request. I suggest you start with domestic banks; Britain and Prussia have both reformed their banking systems to support industry, and I think Austria could do the same..."

In the long corridor of the Gulestan Palace, Abdullah and Amir began to talk. One was the Shah's uncle, and the other was the Grand Vizier of the country. The two most powerful men were naturally discussing important matters.

"You mean Austria's sudden letter to the Shah was really just about a loan?" Abdullah shook his head. "I don't think it's that simple. Austria's debt situation has been going on for quite some time; it's not like it's suddenly urgent. I think they must be seeking our country's diplomatic support."

Amir began to ponder, “Diplomatic support? Austria doesn’t really need Iran’s support lately. Even the Ottomans only promised him the Bosnian region.”

"How could the Grand Vizier forget that there is another place, Austria, that must be contested?"

Amir realized what was happening and said, "You mean, with Prussia."

Abdullah nodded and said, "The Habsburg family has ruled the German Confederation for hundreds of years, and naturally they are unwilling to relinquish it now. Prussia's rapid development makes them feel threatened, which is why they wrote a letter to test our attitude by mentioning the loan issue."

Austria was initially at a disadvantage in its struggle with Prussia, but the German Customs Union, established in 1833, provided a degree of economic unity among the German states. Politically, the German Customs Union consolidated Prussia's hegemonic position and facilitated the formation of the so-called "Little Germany" scheme.

Initially, Austria was unimpressed. Metternich was not particularly interested in trade, merely condemning Prussia and its practices. However, Austria's situation worsened after adopting protectionist trade policies. After 1848, Schwarzenberg succeeded Metternich, and Austria was determined to join the customs union, but was repeatedly rejected by Prussia.

If that's the case, then Iran will also have to choose sides. If Prussia and Austria go to war in the future, Iran will have to choose one side, and given the current friendly attitude, it will definitely support Austria. But Austria's situation... is truly appalling.

Austria had a standing army of 40, and half of its fiscal revenue was spent on military expenditures. However, a quarter of their army was needed in Italy; while Prussia's conscription system meant that, despite having a population less than half that of its several enemies, Moltke the Elder could deploy almost the same number of frontline troops.

The Austrian army was already underfunded, lacked a proper staff system, and was under incompetent leadership; no matter how valiant individual units fought, they would die in open field battles at the hands of the superior Prussian rifles.

“So, we still have to help Austria,” Amir said.

“I’m afraid so,” Abdullah nodded. “There’s so much trade between the two countries that if Austria fails, it could have a significant impact.”

"But Austria's situation is also deeply entrenched and difficult to change, unless... they fight each other internally."

Amir offered the most likely solution, but it was clearly impossible for Austria. They could only watch and see what the Shah would do.

"Given the current situation in Austria, I suggest you engage in peace negotiations with Prussia. Extricate yourself from this quagmire as soon as possible. German unification is inevitable, but your Austrian approach is no longer viable. You must change your thinking and consider other methods."

This was the best advice Naserdin could give Franz: under Bismarck's leadership, the unification of Germany by Prussia was unstoppable. Austria was no match for him, unless Franz, like him, was possessed by a time traveler; otherwise, there was nothing he could do.

Of course, Nasserdin cannot provide Austria with strategies in the long term, but a large amount of investment has already been made here, and even if he doesn't think about the Austrian government, he has to protect his own investment.

(End of this chapter)