Persian Empire 1845

Chapter 572 Disagreement
With less than six months until the charter is promulgated, both the government and the Shah are on high alert, determined to demonstrate freedom while preserving the Shah's power. The Prussian constitutional text is ideal, but it cannot be copied verbatim, as that would be a mere copy-paste.

Along with the charter, a parliamentary law and an electoral law were also promulgated, defining the formation and responsibilities of the legislative body. At the same time, the functions of the courts were redefined, creating a separation of powers among the executive, legislative, and judicial branches.

“Shah, here are also the draft proposals put forward by various members of parliament…”

“I’ll take my time to look at these. Also, Speaker…” Nasserdin looked at Rafsanjani. “Go to St. Petersburg for me.”

Rafsanjani was caught off guard; why had the Shah sent him on this trip?

"Emperor Alexander of Russia has invited our country to send someone to participate in the celebration. You can go in my place. Consider it a trip."

Since it was the Shah's order, Rafsanjani naturally couldn't refuse. Besides St. Petersburg, he was also to visit Stockholm, Oslo, and Copenhagen to strengthen relations between the Swedish-Norwegian alliance and Denmark. The mission would consist of 150 people, selected from government and business circles.

The Shah's order reached the Prime Minister's residence, which was just two streets away, and Musharraf convened a cabinet meeting to finalize the upcoming constitutional arrangements.

"These are the situations you'll encounter. Is everyone clear on this?"

"Clear."

To ensure that protests do not occur in various places, police officers need to take significant risks, and the government will allocate special funds for their welfare and increase their salaries.

The newly appointed Interior Minister Sangi assured Musharraf that there would be no protests, but Musharraf had a feeling that something was off, though he couldn't quite put his finger on it.

"Grand Vizier, these are for you from the Shah."

Musharraf looked at the thick draft and felt like he was about to collapse from exhaustion. He wondered how his predecessor had managed to persevere for over a decade, but thankfully, he wasn't the only one experiencing this; many of his ministers had gone through the same thing.

The meeting room fell silent, save for the rustling of pages turning. But the draft document inside caused Shahriari to furrow his brow.

"Who drafted this bill? Don't they know the country has just emerged from a deficit?"

He then explained to everyone: "As you can see, whether it's military expansion or industrial construction, we need to increase our expenditure by 4500 million riyals every year. Last year, our country's fiscal surplus was only 1200 million riyals, not to mention that we still have 1.5 million riyals of national debt to continue paying interest. We cannot increase expenditure at this time."

The Finance Minister's words seemed to have sealed the deal, but Sadiq had some differing opinions. The Minister of Industry and Commerce was absent; he represented the Ministry as Vice Minister.

"You can't say that, Your Excellency. Haven't you seen the benefits? Improving agricultural and livestock breeds, encouraging land reclamation and resource exploration, and holding regular expositions—these policies can make our country's economy even stronger."

Moreover, military spending isn't just about expenditure; consider how much consumption it generates. Think of the jobs created by industries like textiles, steel, and leather. Take the bicycle factory in Tabriz, for example; it now employs over 3000 people, half of whom are on orders from the military. The military discovered that these bicycles were indeed faster than walking, and thus purchased them in large quantities for rapid movement and communication. Coupled with consumption by the wealthy, the bicycle factory expanded rapidly.

“Vice Minister Sadiq, I’m saying this from a fiscal perspective,” Shahryari continued. “Most of the previously issued government bonds are due to mature, and we need to redeem them. In addition, the trade instability caused by the recent international situation will take time to resolve. Under these circumstances, we cannot launch such a large-scale program all at once, especially two of them.”

After two decades of development, Iran's economy is beginning to show signs of decline. Bank lending growth has slowed, trade with France has dropped significantly, and while some stocks have hit new highs, the companies behind them are not performing well, causing some to panic and begin withdrawing from the stock market.

On July 30, the Tehran Stock Exchange fell by more than 4%, causing shockwaves. The government intervened urgently to stabilize the situation. Shahryari felt a more cautious approach was necessary at this time and therefore opposed the move.

"It is precisely because the economy is in trouble that these measures are needed to boost it. You cannot deny the benefits they bring; each one can benefit the country."

“These expenses are far too high; the Ministry of Finance simply cannot afford them. You know the situation at the Tehran Stock Exchange, and I suspect there are even more dangers awaiting us.”

Shahryarri is now afraid of bank runs and stock market crashes, which are major signs of an economic crisis.

What should we do if Iran encounters this situation? The atmosphere in the meeting room suddenly became tense. "Does Your Excellency know what the interest rate was in yesterday's London telegram? 5.5%! Our national bonds issued three years ago are due next month, and they were issued at 3%!" He trembled as he pulled out a telegram. "Just renewing this debt will require paying an extra 400,000 rials in interest every year!"

Sadiq, however, calmly unfolded a map: "Look, this is a map of tariff growth. Last month, customs revenue in the Persian Gulf increased by 17% year-on-year, two-thirds of which came from entrepot trade. If the ports of Abbas and Basra are expanded according to the draft, this alone could generate an additional two million next year."

The differences are escalating, with neither side willing to back down. Although Sadiq is the Vice Minister, he also represents the Ministry of Commerce and Industry. Directly contradicting him would damage relations between the departments.

"Alright, alright," Musharraf interrupted the discussion. "It seems the draft still has a lot of disagreements among you all. Let the various departments discuss it first, and then we can talk about the rest."

"That's it, meeting adjourned!"

He didn't want to stay any longer. The situation here still needed Shah's decision; otherwise, it would be embarrassing if someone resigned.

Musharraf left the meeting room, followed by the ministers from various departments. Sadiq and Shahriari walked last, continuing their conversation in voices only they could hear.

“Sadig, please remember your current position. When you take charge of the finance department, you will know how difficult this place is.”

"I understand, Your Excellency, but I also have something to say to you. The purpose of public finance is to promote national economic development; if we only seek to maintain stability, there is no development to speak of."

These two draft bills caused quite a stir within the government. The military naturally supported them, as they would greatly benefit their military strength. However, the Ministry of Finance explicitly opposed any increase in spending at this time and insisted on waiting for a more appropriate time to discuss it.

(End of this chapter)