Persian Empire 1845

Chapter 530 Ottoman Trade
Constantinople has developed rapidly in recent years, becoming arguably the largest city in the Near East. As the capital of the Ottoman Empire, it was also the place where reforms were most implemented. Simultaneously, it was the place most significantly impacted by trade.

The two Ottoman heads of the Sepa Trading Company, Serzh Sarkisyan and Geral Bayar, were doing the math in their office. After deducting costs, they had earned a total of 652 million riyals last year. They still needed to work harder.

Saipa Trading Company is now a multinational trading company spanning Eurasia and Africa. It initially accumulated capital through trade, then invested in and built factories such as textile and carpet plants, transforming into an investment and trading company. With the support of the Shah, the company has grown increasingly large, even showing signs of exceeding 100 million.

Their business dealings in the Ottoman Empire were naturally very lucrative. One of them was an Iranian-Armenian, and the other was an Ottoman comprador. Both were extremely loyal to Iran; without Iran, they would not have achieved their wealth.

Besides making money, the trading company also served as a source of intelligence, as its location in Constantinople made it easy to detect the actions of the Sultan and the Ottoman government.

Sargsyan began, "Have you heard? The Ottoman Sultan is now considering selling all the railways in Anatolia to Iran in exchange for loans to build palaces."

"What? The palace has been under construction for ten years, why does it need to be repaired again?"

In response to Bayar's question, Sarkisyan replied: "It is said that they are going to rebuild one, which is larger and more magnificent than the British palace. It is said that it will cost hundreds of millions of rials."

Bayar felt nothing but contempt for the Sultan. Look at the Shah, spending his days handling state affairs and inspecting the army, schools, and factories, receiving a warm welcome from the people wherever he went. Look at the Sultan, except for certain periods, he's practically invisible, and incredibly lazy in governing. It's as if nothing in the country matters to him.

"What do you think the future of the Ottoman Empire will look like?"

"It's hard to say. The best-case scenario is that things are as they are now, with the Ottomans continuing to linger on. The worst-case scenario, I'm afraid, is Poland's fate."

Poland's fate was predictable, so the Ottoman Empire's current state isn't surprising. After all, it was bordered by Russia to the north, Iran to the east, Austria to the west, and a lurking Egypt to the south. Once Constantinople fell, they would all rise up and attack, tearing at this prized possession.

"This country has no shortage of talented people, but it lacks a monarch with great vision and ambition. If Suleiman were alive, which European country wouldn't be utterly respectful?"

This can only be said here; where is Suleiman now, except...

"Alright, hurry up and prepare the goods for this year. We've been selling a lot of fabric lately, so we need to send a message to Baghdad to have them ship more."

These printed fabrics are bestsellers; they sell out in just a few days once they hit the shelves. Not only are the colors vibrant, but they're also durable. And the price is cheaper than in Britain and France, leading people to buy large quantities of Iranian-made fabric.

Not only textiles, but also canned goods, furniture, and ironware produced in Iran were in high demand. They also purchased large quantities of agricultural products such as tobacco, wool, and cotton. And in this situation, were the Ottomans the most angry? No, it was the French.

Trade between France and the Ottoman Empire dates back to the reign of Francis I, with ships from both sides visible in Marseille and Izmir. As European power grew, France began to leverage its relationship with the Ottomans to significantly expand its trade influence.

In 1860, 65% of Izmir's cotton exports went to France. Besides cotton, Izmir also exported various raw materials needed for the textile industry and food to France. At the same time, Izmir became a major source of French goods for the Ottoman Empire. From the Tulip Mania onwards, Izmir began importing Western-made fabrics, dyes, sugar, and coffee, laying the foundation for its commercial development.

But it's important to remember that Europe wasn't just France. Britain, the Netherlands, and other countries followed suit. With the signing of the Anglo-Ottoman Trade Convention of 1838, Britain became the Ottoman Empire's most important trading partner. Large quantities of raw materials were exported to Britain.

France was angry, but helpless. After all, it couldn't defeat Britain. However, it couldn't accept Iran's entry into the market; due to its price advantage, even lower-quality goods could sell well. French exports plummeted.

The nearby Trafalgar Trading Company, one of the largest trading companies in France, has seen its sales decline year after year since Iran began trading with it. Last year, sales even fell below two million, with a turnover of only 198 million francs.

The boss, Beiru, has been so anxious lately that he's been suffering from a toothache. He regrets that his business once achieved annual sales of 1600 million francs at its peak, and now, just a few years later, it's turned into this.

"Damn it, those Iranians are stealing our business!"

Besides Beirut, other French traders also came here. They were angry about Iran's trade expansion; they argued that as nations, why couldn't there be some leeway?

“What can we do? I’ve seen their goods, and they are indeed good. The colors are also quite rich; they say they’re made with dyes from their dye factory in Baghdad,” said one trader, because Iranian dyes are indeed of good quality. The cost is only half that of domestic manufacturers.

"Are we just going to stand by and watch Iran steal our customers?"

Everyone felt immense pressure. The Ottoman Empire was rich in resources and highly profitable. If they left, they wouldn't know where to find new trading partners. But they couldn't just ignore it either. Iranian trading companies were expanding too rapidly and had already begun acquiring some bankrupt European trading companies. If this continued, one day Iran would drive them out of the Ottoman market.

“Let’s go talk to the ambassador. Our interests have been harmed, and he can’t ignore it, nor can the imperial government. Napoleon III needs our funds to secure his position.”

Napoleon III wanted to support them, partly because of financial resources, and partly because he was a proponent of industrialization and strongly supported trade expansion. Since they had suffered losses in the Ottoman Empire, Napoleon III had to try to win them over if he hadn't given up on his ideals.

"This is the only way! Iran is truly our enemy!"

Not only French merchants, but even British merchants had to withdraw from Syria on a large scale, leaving only a few trading posts in Beirut. But Britain had deep pockets; if the Ottoman Empire didn't work out, they would go to Canada, where these merchants were needed to revitalize the economy.

Although France also had colonies, their ambition was relatively small. Furthermore, Napoleon III favored his relatives and sycophants in Louisiana, giving them all the business while he remained in the Ottoman Empire. Then, they were utterly defeated by Iran, and could only beg the French ambassador to seek justice for them.

(End of this chapter)