Persian Empire 1845

Chapter 558 Iran Suez Canal Company

Not far from the Abbasid Palace, Ali Ahmed Street is home to many company headquarters and government agencies. One three-story building, however, is not particularly eye-catching, except for a sign that indicates its significance: the Suez Canal Company of Iran.

After acquiring a majority stake, the French company transformed into an Iranian enterprise. The lower and middle-level employees all received a severance package of 3 francs. Meanwhile, all outstanding project payments were settled, and everyone marveled at the new owner's wealth and power.

"We need to find a new construction company to carry out the project. It's just one step away, and we absolutely cannot let this canal fail in our hands."

The company's new chairman, Ali Ismail, issued orders to the new management team that they had completed their understanding of the situation regarding the Suez Canal.

The Port Said area still requires the submergence of 57,802 stone bricks, of which 33,031 are still under construction. Simultaneously, 1.65 million cubic meters of earth need to be excavated in the basin and estuary, of which 1.23 million cubic meters have already been excavated. The offshore section of the canal requires the excavation of another 12 billion cubic meters of earth.

In the Timsa Lake-Bitter Lake section, 300 million cubic feet should be dredged, and 160 million cubic feet have already been dredged; eleven dredgers are in operation, capable of dredging 882500 cubic feet per month; laborers should dredge 45.6 million cubic feet, and 24.5 million cubic feet have already been dredged by hand; in the Bitter Lake-Charlof section, more than 21 miles have been dredged by hand, with 2.48 million cubic feet still to be dredged.

Although it's the final leg of the project, calculations show that an additional £800 million will be needed on top of the current £180 million investment from France. Of course, this amount is insignificant to the Shah; he'll pay whatever it takes to get the canal open.

"The French construction companies have agreed to sell those dredging vessels to us. In addition, according to telegrams from our people in Port Said, the local laborers are paid only 1 riyal a week, and sometimes they are even fed rice, millet, dates and onions."

The living conditions were appalling; laborers were forced to sleep on rafts. According to them, 10 people had died from this project in the past few years, and the French had covered it up.

Why is the new company suddenly concerned about workers? No, it's mainly trying to make a good impression on Egyptians. After all, they need to use the canal, so Iran needs to maintain a positive image locally. Improving local conditions is also essential.

Salaries need to increase, and working conditions must at least improve. Even a slight improvement will make those people extremely grateful.

"The Shah has indicated that he wants the canal opened as soon as possible; the canal's value is immeasurable. The French are gone, but the British are still eyeing it covetously. If anything goes wrong, the British will act immediately."

Now, execute the order immediately, quickly, and don't be afraid to spend money!

The various managers, having received their instructions, began their work, as Iran had acquired land use rights along the banks of the Suez Canal while France was transferring ownership of the company. These areas, if developed into other facilities such as hotels, would certainly be profitable. With the canal in place, who would want to sail to the Cape of Good Hope? Local town planning could be improved; the coastal area could be utilized more fully, and more open space could be created in the town center. The design of streets and buildings needed refinement to ensure both shade and sea breeze access. Therefore, the company would generate more revenue through land use.

The Shah continues to inject capital into the company without touching government funds, as the government aims to persuade the Shah to purchase government bonds for further investment plans. With previous funds already invested, Iran will be transformed again in the next decade.

Not only the Suez Canal Company, but also acquiring French industrial technology amidst the chaos of the Franco-Prussian War was a mission for Iran. Hajizadeh's National Security Agency began using its intelligence network in France to acquire French industrial technology, particularly low- and mid-level technologies that could quickly fill gaps in its capabilities.

Before the complete encirclement of Paris, the Security Service had acquired 77 industrial technologies, covering industries such as textiles, machinery, and papermaking, which would be of great importance to Iran's domestic industry. While more could be acquired, the risks were also significant, so for security reasons, the acquisition was temporarily halted.

Of course, this wasn't something Ismail should be thinking about. He was thinking about the British actions. Even with the canal, it wouldn't stop British infiltration because Egypt had sold the construction rights for the Cairo-Alexandria railway to Britain.

From Britain's perspective, its primary concern was strategic. The British government believed the canal would permanently destroy India's independence and become a spear in France's hand, piercing British armor. If France seized the canal, it could blockade British ships, occupy Aden and Mauritius, and reach the Malabar coast. In doing so, all of Britain's deployments in the Indian Ocean would be rendered useless.

Therefore, after France built the Suez Canal, Britain also forced Egypt to sell the rights to build a railway, thus gaining control of this waterway, often referred to as the Suez Canal on the railway. Even with France controlling the Suez Canal, Britain could indirectly control the waterway. As for Nasser al-Din, the British would settle accounts sooner or later; for now, he wanted to open the canal first and then consider other options.

The Iranian company's branch in Port Said announced new regulations: workers' weekly wages would increase to 15 rials, plus a monthly food allowance of 5 rials, and living conditions would be improved. To prove the claims were true, the company personally paid these workers four weeks' wages.

When the workers saw that the new boss was actually paying them, they almost cried. They remembered the miserable lives they had endured before: low wages, terrible accommodations, and even life-threatening situations. Now, good fortune had arrived, and their good days were finally here.

The company decided to lease out sections of land along the canal, attracting Iranian businessmen with a three-year tax exemption. The company would also operate shops, hotels, textile businesses, ports, and livestock farms. These would generate more revenue for the company.

Such a significant move naturally alarmed the British. After Disraeli learned the details, he angrily confronted the British in his office. He regretted not having sensed Iran's movements and thus squandering the opportunity to control the canal.

At this point, Britain held less than 5% of the company's shares, and those were mostly held by individual shareholders. The British government was powerless to do anything about it. Besides, had Iran suddenly become incredibly wealthy? Otherwise, how could they have undertaken such a large-scale acquisition of companies in such a short time? This would require at least £800 million, a sum that even the incredibly wealthy Britain couldn't possibly come up with all at once. One can only say that Iran is incredibly powerful.

(End of this chapter)