Persian Empire 1845

Chapter 393 Negotiation
The atmosphere at Downing Street was tense again, and Prime Minister Palmerston convened another cabinet meeting. This time, it wasn't just about Argentina, but also about Malaya.

"The Iranians are too domineering. Do they think that defeating Russia makes them invincible?"

The Colonial Affairs Secretary, the Duke of Newcastle, also felt that Iran should be taught a lesson, not just for the sake of saving face, but because if Malaya were to fall into trouble, then their Singapore would be in danger.

"But what should we do? Should we just sail the warships into the Persian Gulf?" Lord Russell, the Foreign Secretary, suggested.

"I can guarantee that Iran will see the might of the Royal Navy!" the Duke of Somerset, First Lord of the Navy, confidently assured.

"That's true, but what would it take to teach Iran a lesson? Would it mean starting a war?" Russell asked.

"No, what we need to do is send the navy to Bushehr and Muscat. Iran will understand that Britain may not be aware of what's happening on land, but at sea, we are king."

Perhaps Britain had forgotten its invincible navy for too long. At this time, they were building ironclad warships, aiming to complete their modernization by 1870. They had once defeated Russia and Napoleon's French navy, so they didn't need to pay much attention to Iran; sending a few warships would suffice.

Besides military deterrence, Palmerston also plans to cripple the Iranian economy, such as banning imports of Iranian-made kerosene and replacing it with American-made kerosene. Since over 40% of Iran's exports to the UK are kerosene, this will undoubtedly cause Shah Joaquí a major headache.

Two days after news of the Malayan crisis reached London, the situation took another turn. The Austrian Empire announced an invitation to all parties to Vienna to peacefully resolve the issue, which surprised Britain. Why was Austria getting involved?
This can actually be seen from Austria's economic situation in recent years. Among the foreign investments flowing into Austria, Iranian investment has increased from 2000 million rials in 1858 to 1.2 million rials today, surpassing Britain to become Austria's largest foreign investor. Major investments are concentrated in railway ports, machinery, and petroleum industries in Venice, Bohemia, and Hungary.

The influx of capital spurred rapid economic growth in Austria. Railway construction doubled in speed, and the throughput of ports on the Danube and Adriatic increased. This boosted trade between Austria and Iran, gradually improving the country's finances. The emperor also implemented a gold standard reform, switching from the silver standard (Taylor) to the gold standard (Krone). Austria's economy was far better than it had been in its history.

With a thriving economy, Austria naturally sought to revitalize its influence. Logically, the German region should have been Austria's sphere of influence, given the Habsburg rule over it for over 400 years. However, the rise of Prussia and its refusal to join the German Customs Union made it difficult for Austria to regain its former power. It was forced to settle for a less desirable option: seeking alliances with southern states like Bavaria.

In 1861, Austria and Bavaria signed an alliance agreement to strengthen their cooperation in trade and military affairs. At the same time, Austria signed a mutual defense treaty with Romania, using the Danube River as a connecting link, to further expand its influence.

Following the outbreak of the Malayan crisis, Austria sought to strengthen its influence and extended invitations to Britain, Iran, and the Netherlands, proposing a meeting in Vienna.

"Shah, how should we respond to Austria's proposal?"

By this time, Nasser al-Din had returned to Tehran and was prepared for the crisis in Malaya. After all, having three countries in one place was far too crowded, and Malaya's geographical location, combined with that of the islands, made it coveted by everyone. This place had to come to an end.

"We intend to resolve the Malayan issue peacefully. This is something we absolutely do not want to see, and for this reason, we are willing to go to Vienna to participate in the negotiations with the utmost sincerity."

Southeast Asia has seen quite a few landmines, and the Dutch still resent Iran's takeover of West Kalimantan. Therefore, when the situation in Malaya arose, the Netherlands immediately expressed its support for Britain, hoping to curb Iran's arrogance.

“I never imagined this would escalate to this extent. It looks like the British are about to invade our country,” Nasserdin joked. “Shah, Malaya and Singapore are very close, and Singapore is a crucial hub connecting the Far East. No wonder the British are acting this way; this has really touched a nerve with them.”

Abdullah outlined the current situation and proposed a solution: delay the negotiations in Vienna as much as possible, ideally to persuade them to change their minds, or at least to get them to recognize Iran's special rights in the region.

"Shah, we shouldn't provoke Britain for now. If Russia and the Ottomans take advantage of this, Iran could be in real danger."

This was unanimously agreed upon, and Ambassador Stafford first approached the Foreign Office to propose the British solution.

1. Recognize Malaya as part of the British sphere of influence.

2. Iran withdrew all support and pledged not to support local forces.

3. Compensate the UK for losses of £20.

The ambassador said that if Iran agreed to this, Britain would forgive these past transgressions and would also persuade the Netherlands to recognize them. The three countries would demarcate their spheres of influence and agree not to invade each other's territory.

“Money isn’t the issue, the main problem is… do we really want to give up Malaya?” Nasserdin asked.

“Shah, sometimes giving up is to regain what you have,” Amir comforted him. He had discussed the matter with the First Lord of the Navy and concluded that the Iranian navy had no chance against the British navy at the moment. The other side was too powerful; unless they fought for another twenty years, it wouldn't work.

“That’s true, but we can’t let the British get away with this so easily.” Nasserdin’s gaze left the desk. “Since the Dutch want to join in the fun, let’s make it even more exciting.”

Naserdin didn't want this to happen, but since the Dutch were so tactless, he had no choice but to go along with it.

Three British warships are currently sailing in the Muscat waters. Iranian representatives have spoken with the captains, and no conflict has occurred so far. In Southeast Asia, the situation is more complex.

Hai San and Yi Hing are each backed by indigenous forces, and this renewed conflict has plunged them into chaos once more. Singapore has declared a state of emergency, and the Netherlands, eager for further conflict, has stated that it will send 4000 troops to support Britain if Britain agrees.

Siam, meanwhile, made no move, though it sent 4000 mercenaries to join Ghee Hin's cause. In tiny Malaya, all sorts of forces have come to the fore. It remains to be seen who will ultimately emerge victorious.

While everyone was focused on Malacca, Iranian merchants and intelligence agents were shuttling between Songkhla and Aceh on the north and south sides, preparing for the day's events.

(End of this chapter)