Persian Empire 1845

Chapter 402 Vienna Agreement

Lord Russell and Abdullah negotiated at Schönbrunn Palace for over 33 days, and there were still some areas where they failed to reach an agreement. Of course, it's impossible to say there was nothing at all; for example, they agreed to jointly promote progress in South America, Korea, and Japan. Beyond that, nothing more.

“I don’t think we have any solutions here at all,” Lord Russell told Abdullah.

"It's actually very simple, Your Excellency. As long as your country recognizes Prince Muhammad's status, our country is also willing to recognize Johor as yours. This should be a worthwhile deal."

“If that’s the case, then our country can accept it. But I hope your country can guarantee that Prince Muhammad’s rule will be limited to Perak and Kelantan and will not extend to other places.”

"What about Pahang, Terengganu, and Selangor?"

"My suggestion is that they maintain the status quo, and both countries guarantee their independence."

Abdullah nodded. "If that's the case, I think we can reach a final agreement."

Russell also agreed, stating that reaching an agreement on the 34th day would end the month-long tensions between the two countries. The world would be at peace again.

Meanwhile, a telegram from London reached Vienna, containing Prime Minister Palmerston's negotiation agreement with Russell. The terms weren't unreasonable; they could reach a good deal with Iran.

On July 6, 1863, the United Kingdom of Great Britain and Ireland and the Shah of Iran reached the Vienna Agreement, which stipulated that:
1. Britain recognized Iranian Prince Mohammed as the ruler of Perak and Kelantan, while Iran recognized Johor as a British sphere of influence.

2. Pahang, Terengganu, and Selangor are jointly protected by the two countries.

3. The two countries will jointly promote progress in South America, North Korea, and Japan; specific measures are yet to be determined.

4. Britain imposed sanctions on the Jehsal Khanate in Central Asia.

5. Both countries' warships withdrew from the Strait of Malacca, and the two sides maintained a state of peace.

The photo of Russell and Abdullah shaking hands spread to every corner of the world through the newspapers. The happiest people were undoubtedly the governments, who had successfully defended their interests without war.

Of course, the most disappointed were those who wanted to profit from the war. On the stock exchange, all war-related stocks plummeted, and quite drastically.

The stock price plummeted from a few pounds or even a dozen pounds, prompting people to sell their shares. This led to an unexpected consequence: Overgrowth Bank, one of the UK's largest discount banks, went bankrupt.

In fact, Overreng Bank had already been experiencing an increase in bad debts due to various crises, but the collapse was delayed due to accounting fraud and other means. In an attempt to reverse the situation, the bank invested its own funds in stocks, and initially made a considerable profit. However, when news of the Vienna Agreement came, the stock price immediately plummeted, and it was a precipitous drop, like an avalanche.

Shouts spread like a plague through the trading hall. Gentlemen in tuxedos, no longer caring about decorum, jostled and pushed their way to the price boards. Some lost their shoes, others tore their suits, and gold-rimmed glasses were crushed in the chaos, shards of glass mixed with sweat and ink creating a mess on the floor.

"No, why!"

A stock market investor knelt on the ground, shouting that he had invested all his savings in the stock market, and after only two days of comfortable living, the market suddenly crashed. All his money was gone! Outside the window, a group of angry investors were waving extra editions of the Vienna Agreement, smashing them against the carriage of the Ovoreng Bank executive. The coachman had already fled, leaving only two frightened horses dragging the empty carriage wildly through the street.

"Someone jumped off the building!"

People rushed to the window, where they saw a twisted body lying by the fountain at the entrance of the exchange, its blood staining the inscription that read "Trade Brings Prosperity".

Some people went over to take a look and saw that it was the head of the Overgrow Bank, who was holding a recently delivered liquidation notice in his hand:

"The Bank of England has refused to discount your £29 bill of exchange that is due today."

Upon hearing the news, the trading floor fell silent instantly, followed by an even more frenzied wave of selling: an elderly gentleman with white hair slumped on a bench, his £8000 bank draft now worthless; a young stockbroker tore up his trading slips, scraps of paper falling like snowflakes onto his muddy boots; ironically, Overeur's own shares plummeted from £3 to £7 shillings per share in half an hour—not even enough to buy a glass of absinthe.

In a corner of the hall, a few figures stood out with an air of calm incongruity. They were buying up large amounts of stock in tin mines, banks, and other industries; in this crisis, they were the ultimate victors.

“Look at that old fox,” Gahraman whispered to his companion, pointing to a hunched figure in the corner—Charles Wilson, president of Overrun Bank, was surrounded by creditors. “He was very arrogant three days ago, and he’s been brought down in a day.”

When the closing bell finally rang, the exchange floor was littered with torn stock certificates, crushed glasses, and someone else's wig. Several bankruptcy brokers sat blankly on the steps, mechanically chugging gin. Meanwhile, across the Thames, workers were tearing down the sign of the Overlord Bank.

“That’s the norm in London. Every diplomatic incident results in a group of losers,” Lionel told Gahraman.

"It can only be said that life is unpredictable. They were so eager to make money that they ended up losing all their remaining savings."

This stock market event earned Iran £188 million, through large-scale acquisitions of tin mining contracts and shorting shares of several corporate banks. Rothschild Bank also seized the opportunity to acquire a number of high-quality properties.

"I hope we can have more cooperation in the future, such as in North Korea and Japan."

"That's for sure. Shah would very much welcome your firm to jointly develop the local area."

The joys and sorrows of those at the bottom are irrelevant to those at the top. Following this stock market storm, other banks were also significantly affected. And to avoid collapse, they once again turned to the dominant force in London, Rothschild Bank.

The financial world was thrown into turmoil, and so was the political arena. Queen Victoria agreed to the agreement, but the Conservatives disagreed, believing the kingdom was invincible and that agreeing to it would be tantamount to surrendering to Iran.

Conservative leader Earl Derby demanded that the government reject the agreement, calling it a humiliating defeat that Britain could never agree to.

Prime Minister Palmerston argued forcefully in Parliament, declaring it a victory. He claimed they had not only gained Johor but would also launch large-scale offensives against Japan and Korea, from which they would reap substantial benefits. Ultimately, the Vienna Agreement passed by a vote of 333 to 302, with some Liberal Party members voting against it. Regardless, the 77-day Malayan crisis had finally come to an end.

(End of this chapter)