Persian Empire 1845

Chapter 430 Draft of the Economic Cooperation Plan between Iowa and Austria
Bismarck and Wilhelm I left Prague, and Prussian troops were withdrawing from Bohemia. But Naserdin had not yet left; he awaited the Austrian Emperor's investiture.

Among the Iranian soldiers who assisted the Austrian army, 29 received the Order of the Opold and 158 received the Iron Crown. All of them received salaries, which they deserved.

Naserdin was awarded the Order of St. Stephen, the highest diplomatic honor, for his outstanding contributions to Austria. It was also Franz's way of expressing gratitude to Naserdin.

With the Austro-Prussian War over, it's time to settle the score between Iran and Austria. Austria borrowed 6000 million rials (9000 million crowns) from Iran for the war. Half of this loan was used for weapons and ammunition before even leaving Iranian banks, and the 6.5% annual interest rate means Austria had to pay 5850 million crowns in interest in addition to the principal. Repaying this loan within ten years is a challenge for Austria.

In addition to loans, Iran also acquired a significant amount of Austrian state-owned assets at extremely low prices. In Austria and Venice, Austria sold off 2 million kronor worth of state-owned assets, and Lion Corporation stepped in, acquiring half of these assets through investment returns in the Americas and capital inflows from West Munroyal.

On the stock exchange, Iran earned 4000 million rials through short selling. This money did not go into private pockets but was invested in Austria. By the end of the war, Iran owned two-thirds of Austria's 3 million crowns of foreign capital, meaning Austria was essentially tied to Iranian capital.

With the influx of massive capital, Austria's development is better than in previous periods. This is mainly due to rapid development in mining and railways. Hungary originally had only two railway lines, but now it has increased to eight. Local agricultural products are exported to Iran via the Danube River and the Black Sea. Conversely, Iranian products such as kerosene are also entering Austria.

Aside from Britain, which had just completed its Industrial Revolution, and France, with its many speculators, you won't find a third such patron. Of course, such a move also attracted the attention of some.

"We don't know why Iran is so rich. Perhaps we've underestimated the East. Their gold reserves are inexhaustible. Perhaps that Iranian Shah acquired his fortune somewhere. We can't miss this opportunity. I have a feeling an investment in Austria is about to begin!"

Baron Anselm Rothschild finished writing the letter and handed it to the family courier to deliver to his lord, James. As a nobleman, he would be attending the banquet in Prague today, having heard that Iran was planning a large-scale economic partnership in Austria—a lucrative opportunity for them.

Upon hearing that the Shah of Iran had arrived in Austria, he hurriedly took a train from Vienna to Prague. He arrived just in time for the banquet to begin. The Bohemian nobles, who also knew of the Rothschilds' reputation, greeted them warmly, but none of this was Anselm's target.

Finally, he saw it—the Austrian Emperor and the Iranian Shah walked together into the banquet hall. Behind them were diplomats from both countries, and a banquet celebrating the end of the war officially began. Everyone began to feel relieved that their possessions and loved ones were still there.

“After war, peace is the most reassuring thing,” Nasser al-Din said.

“Yes,” Franz agreed, “Fortunately, now is the time to get the country started.”

After much persuasion from his old friends, His Majesty the Emperor decided to promote the Empire's industry. This was not only to increase revenue but also necessary to maintain the Empire's international standing.

"I have met His Majesty!"

Anselm bowed to Franz, who then introduced him to Naserdin.

“Naserdin, please allow me to introduce you to Baron Anselm Rothschild. I haven’t introduced you to him before when you came.”

“Ah, hello! Your family is spread all over Europe.” The two shook hands, and Anselm replied, “Shah, please don’t be offended. Bankers’ work requires constant travel; we are responsible for managing the flow of funds throughout the country.”

“That must be very hard!” Naserdin said. “Perhaps you can help me.”

"I am willing to serve Shah."

Anselm knew that economic ties between Iran and Austria were very close, and if they continued to develop, even a 1% fee would amount to an astronomical sum.

They went out onto the balcony and looked out over Prague. "It is indeed prosperous here, but it can be even more prosperous."

Franz's ambition began with railways; Austria's railway network exceeded 6000 kilometers. However, this still paled in comparison to Prussia's over 1.1 kilometers. Despite the existence of a state-owned railway company, development remained slow.

Iran has already acquired a 35% stake and will inject an additional 1500 million crowns. This will give Iranian capital a 48% stake, but it's still insufficient for the massive railway construction. Therefore, bank financing must be utilized. Among Austrian banks, Rothschild Bank is undoubtedly the most powerful.

"If I were to say that I want to invest in a credit bank or cooperate in opening a bank, I wonder if the Baron could help me?"

Anselm would certainly agree to this request; who wouldn't want more money? Of course, the influx of funds into Iran might also help his family bank penetrate the Iranian market. Currently, there are no foreign banks in Iran—what a huge market! They could practically monopolize Iran. Such temptation seemed worthwhile to Anselm.

However, the ensuing conversation made Anselm feel that there was no hope of infiltrating. The Shah was extremely wary of any foreign bank; if you wanted to trade or do business, you were welcome, but if you wanted to open a bank, sorry, impossible!

However, as an alternative, Nasser al-Din proposed seeking profits further east. The East's vast population and vibrant economy could generate more revenue for finance, making the Far East, with its 500 million inhabitants, a more attractive investment than Iran's 30 million.

Of course, the industrial level of the Far East is still far behind that of Russia. It needs some guidance; Japan's situation is good, we could try that approach.

Amir has already finalized the specific terms with Austrian officials, and Austria will certainly cooperate fully with such a major investor. A draft agreement of up to 3.5 million kronor has been drafted.

In addition to existing investments and loans, Iran will provide an additional 6000 million kronor. This will be channeled into several sectors, including military industry, railways, colonialism, and finance. This includes establishing a large Austrian bank, laying the Hungarian railway network, and promoting the colonization of the Congo.

In trade, the two countries agreed to reduce tariffs on each other, enabling the free flow of goods between them. Since the two countries are already so close, there shouldn't be any problem with getting even closer, right?

(End of this chapter)