Persian Empire 1845

Chapter 414 The Development and Problems of Colonies
With the government's intervention, Iranian banks were naturally willing to provide loans to the navy, although the Ministry of Finance would have to repay the loan, albeit at a very low interest rate.

Other fiscal expenditures are gradually being implemented, with the most important being in the army, education, and industry. Without revenue from oil companies, Iran's development speed would be halved.

Of course, colonial finances were also an important part of the government's revenue. Qinistan could contribute 1200 to 1400 million rials annually, but after the Second Vietnam War, this figure dropped to 400 million. Besides governing the vast territory, it was also necessary to suppress local uprisings and improve local transportation to generate more revenue for the government.

For example, the North-South Railway, currently under construction, has its first phase running from Saigon along the coastline to Hanoi. Prior to this, Iran had already built a railway from Saigon to Phnom Penh, which contributed to Cambodia's rapid economic development.

Besides rice, Iran cultivates other cash crops such as pepper, cotton, and tobacco locally. The King of Cambodia also sends some of his noble children to study in Iran, cultivating pro-Iranian groups, since Iran is practically their only support.

The governor of Qinistan reported to the government that if railways could be built across most of Qinistan, the future revenue remitted to the government could increase to 3500 million rials. This was only a preliminary estimate; with further investment, 5000 million rials was not out of the question.

In this planning map, the governor thoughtfully included explanatory notes. Currently, the most important development for Cinnestan is connecting Vientiane, Hanoi, and Luang Prabang, which will accelerate the region's development.

Currently, most capital is flowing into this region. Additionally, some bolder individuals are investing in the middle reaches of the Mekong River, hiring people to develop forest resources and cultivate various tropical cash crops. However, such development takes a very long time, and only those with substantial funds dare to undertake this project.

Of course, such people are a minority, because the risks are too great; they could become rich overnight or lose everything.

Moreover, the government won't have to cover the entire investment this time; Crédit Agricole will contribute a portion, and the Iranian Chamber of Commerce and Industry, led by Sepa Commercial, will also contribute. This way, the Finance Minister won't be so furious, since it's not a massive investment.

Moreover, their situation is considered relatively good. East Africa is a true bottomless pit, even though its development is also quite good.

With the help of the Indian Ocean trade routes, the colonies expanded ports in Zanzibar and Mogadishu, built docks to provide maintenance and repair services for passing ships, and provided essential supplies such as food, water and coal for ships, enabling East Africa to grow stronger by leveraging the trade routes.

One of the most important tasks was to subjugate or force the tribes to relocate. After a series of combined tactics, the local tribes were completely subservient to the governor.

While Qinistan might have had some economic foundation, here it's all about starting from scratch. Clearing land, building towns, expanding railways, and exploring new frontiers all require capital. You'll also need to interact with local animals from time to time, such as lions, rhinos, hippos, giraffes, or even killer bees and wild men. Immigrants who manage to survive here typically possess some skills.

The East African colonies also required an annual expenditure of 650 million riyals for maintenance, especially in landlocked areas where unpredictable events necessitated additional funds for defense. This expenditure directly resulted in a negative balance for the colonies' income. And a dismal one at that.

And this doesn't even include aid from South America; Araucania alone needs 100 million riyals. It's fair to say Iran is barely maintaining its fiscal balance. Unlike Britain and India, whose aid is truly exorbitant, receiving at least £1500 million annually—something many envy.

"East Africa needs to subsidize a large amount of expenditure every year, but its income has not increased. Why is that?"

Nasser al-Din summoned the governor-general's envoy for questioning, which he had been waiting for, and began to brief the Shah on the situation in East Africa. In terms of population, the East African colonies consisted of 13 immigrants from mainland Iran, 3 Chinese laborers, and hundreds of thousands of indigenous Black people. These constituted the colony's social structure.

Local development was indeed quite rapid; farms were developed, followed by various workshops, shops, and the rise of cities. Although bureaucracy was in place, local tax revenue remained stagnant. Further investigation revealed a common problem: land consolidation.

Although Iran practices a large estate system, taxes must still be paid in full. The royal family is quite obedient, but the local nobles are the ones who face difficulties.

They were mainly composed of Zanzibar nobles, merchants who had made their fortunes through trade, and some vested interests. These people bound native and immigrant workers to the land through the so-called indentured labor system, while the actual taxes paid were minimal.

For example, the Zanzibar Trading Company they established controlled 70% of the local clove cultivation. Not to mention, they used even more land to make money, and the governor was powerless to do anything about it.

“They even formed a private army,” the envoy added. “The tax collectors sent by the governor’s office couldn’t even get through the gates of the estate.”

Naserdin shook his cane. "I was too lenient with them. I thought they would behave themselves in the local area, but they pulled this trick on me."

Did people in ancient times flee to the mountains because the emperor was far away? Or perhaps, because there was no emperor in the mountains? Like the East African colonies today, the ruling center in the mountains was too far away, and the governor's office alone could not effectively counter the local forces.

Furthermore, Iran didn't completely destroy the Zanzibar forces; they merely sought the Sultan and nobles' submission and demanded taxes. And this is what they did.

"That's not right, why didn't the governor report this earlier?"

“Shah, there’s something you might not know. Those people actually have a hundred ways to shut the governor up. If things go well, then all is well and he can get through his term. But if he’s a troublemaker, there are countless tricks waiting for them.”

Nasserdin stared wide-eyed at the other man, slamming his cane heavily on the table. "These people are incredibly audacious. What do they want, money, or independence?"

He should have realized that without a thorough cleanup, the local area would always leave behind lingering problems. They would grow unchecked until they reoccupied the area.

"You go down first."

With a single word from the Shah, the envoy left the office. Naser al-Din thought for a long time before issuing an order to Lieutenant General Xerxes, saying that the Sultan of Zanzibar's brother missed him, and that the Shah couldn't bear to see them separated, so he should bring the Sultan of Zanzibar and his family to Tehran to meet him.

(End of this chapter)