Persian Empire 1845

Chapter 407 Two Cabinet Meetings
Excluding the expenses in Qinistan, the investment in East Africa was much less, totaling no more than 400 million. One-third of that was for exploration of the surrounding areas.

In the African interior, one must not only be wary of disease, animals, and climate, but also of unknown tribes that are extremely aggressive; many members of Iranian expeditions have been injured or killed. Since the current sphere of influence is sufficient for the time being, investment in East Africa is gradually decreasing.

Not only Iran, but other countries also slowed down their colonization efforts in Africa. Strong local resistance, the rainforests, swamps, and the ensuing malaria and other diseases, such as sleeping sickness, made it difficult for Europeans to settle there. Western powers were initially unwilling to colonize the region without clear economic benefits.

“Shah, we and Austria will jointly explore the Congo River basin, and Sicily has also joined in. We expect to complete the formation within two months.”

This was the first joint exploration by the three nations. Their goal was to explore the interior of the Congo River and occupy the estuary as a colony. The first group of immigrants included 300 Austrians and 150 Sicilians. They planned to build a town at the estuary, which would be Austria's first colony. The profits would be shared by all three parties. Once the investment was recouped, Iran would withdraw, and trade between the colonies would resume.

Franz, preparing to seize colonies, began to free up resources after essentially resolving the Hungarian question. He even pawned some real estate to raise funds and formed the Austrian-Iranian African Company with Iran. For this expedition, Franz hired David Livingstone as captain at a price of £5000 per year, and hoped for a smooth voyage ahead.

"That's good. Austria has always been an important trading partner of our country. The economic exchanges between the two countries are very frequent and will definitely deepen in the future."

Everyone agreed that Austria was Iran's largest European investor and most important trading partner. Austria ranked first in exports to Europe with a 22% share, followed by the Ottomans at 20%, Prussia at 17%, Britain at 14%, and France at 10%. Iran's assistance during the Venetian turmoil further fostered goodwill towards Iran among many Austrian nobles and officials. Consequently, Austria provided a negotiating platform and mediated during the Malayan crisis.

Through these interactions, trust and mutual benefit gradually increased between the two sides. Iran didn't want their investments to go to waste, and Austria needed Iranian investment to develop its economy. With mutual interests at stake, they naturally joined forces.

Meanwhile, in Vienna.

Franz Joseph was also holding a cabinet meeting to discuss future plans.

“Your Majesty, we can have a surplus of 200 million crowns this year, but we still have 17 billion crowns in debt, so we need more revenue.”

Finance Minister Pleiner reported to the Emperor on Austria's financial situation. Although the currency had been changed to the gold standard, the debts would not disappear into thin air and would still have to be repaid.

Although Austria is a vast and resource-rich country, its tax system remains based on a traditional agrarian society. Agricultural taxes still account for the majority, around 40%. Furthermore, noble and church lands enjoy tax exemptions or reductions, resulting in significant tax revenue losses for Austria.

As for industrial taxes, because industry is not very developed, the revenue is not high, and coupled with the government's inefficiency, it will require long-term reform.

"I have already separated Transylvania and Croatia; their tax revenue should be substantial."

Shah's plan was indeed brilliant; the taxes paid by Bohemia, Transylvania, and Croatia significantly offset the expenses. Hungary, after losing two-thirds of its territory, became more docile, but its inherently rebellious nature remained unchanged.

In 1861, Franz issued another decree, severing Upper Hungary and renaming it Slovakia, which means "Slav" in Hungarian. This ethnic division was intended to counterbalance the Hungarians, but current revenue still couldn't cover expenses. Nevertheless, Franz managed to raise funds to establish a colony on the Congo River.

"Yes, Your Majesty, the Hungarians still want to resist, but they have no chance. Their history of arrogance and disrespect will soon come to an end."

Interior Minister Kremsel immediately stated that there had been many Hungarian resistances over the years, but they had all been suppressed. In exchange, the Imperial government abandoned its policy of forcefully promoting German and courted local industrialists and merchants, who would represent Hungary in the Imperial Diet, rather than the stubborn nobles.

"Hopefully, the exploration of the Congo River will go smoothly. Historically, it had colonies, and now..."

Franz thought about his family history. During the reign of Charles V, the Habsburg Empire was arguably the most powerful, wealthiest, and most expansive empire in Europe. But due to a series of wars and divisions, it now only had Austria, and no colonies whatsoever. Even Portugal, at its worst, had Angola and Mozambique, and Spain had Cuba and the Philippines.

At this point, any major power that hadn't expanded its territory would be a laughingstock. Austria had failed before, but now it had to.

"Now I hope the Congolese expedition will set off as soon as possible. You know, Iran has invested 100 million crowns in this, and I don't want our allies and families to lose their money."

“Your Majesty, as far as I know, the Portuguese and French have already begun to establish trading posts. Our visit at this time may cause disputes,” said Foreign Minister Reichberg.

“Your Excellency Reichberg, colonization is something every country does. It’s a race against time; it’s not a matter of who gets there first,” said Prime Minister Schmorlin.

“But this expedition cost us 250 million. If it fails, what a huge loss that will be.”

"We know that there have been countless failures in history, so we are confident that we can succeed. By simply controlling the Congo River, we can gain access to vast local resources. The trees and fisheries there have great potential, and we can recoup our investment simply by investing in their development."

Despite the opposition of the nobles, the emperor's mind was made up. Moreover, the bureaucracy remained steadfast in its support of His Majesty, emerging merchants desired more markets and raw materials, and the rapidly growing domestic population needed to be dispersed. Therefore, colonies were inevitable.

"Yes, the former empire once established the East India Company, but unfortunately it went bankrupt. Now that it's starting anew, it must succeed."

Franz silently prayed. Austria had finally escaped the mire of deficits, and the colonies had to succeed so he could continue to get the nobles to invest, collect more taxes, and thus counter Prussia. He also planned to go to Iran to discuss further economic cooperation with Nasser al-Din. He prayed to God for help.

(End of this chapter)