Persian Empire 1845

Chapter 603 Cooperation in Far Eastern Trade and Economic Relations

The rise of the Renaissance Brotherhood has always been a good thing for Iran. Yes, they are collaborators, as the Brotherhood has consistently received covert funding from Iran. Iran has invested considerable manpower and resources in this group, and the mastermind behind it all is the great Shah Nasser al-Din.

He needs the situation in the Ottoman Empire to become even more chaotic, including Syria and Palestine, so that he can control access to the Mediterranean Sea. Only then will Iran's territory be considered perfect.

This year has been truly eventful, with Iran fully committed to combating the economic crisis. However, the results have been relatively good; at least it hasn't experienced the large-scale unemployment seen in Britain and France.

The fiscal situation has not deteriorated to an unimaginable degree; after appropriate tax increases and spending cuts, revenue has fallen to 1.68 million riyals. However, if expenditures for construction programs are included, total expenditures this year will exceed 4 million riyals.

Most of these expenditures came from the Shah's private treasury. How fortunate Iran is to have such a generous and patriotic monarch!

Currently, Iran's economy is being artificially boosted by increased government investment. However, this funding comes from newly printed banknotes, and the government's reaction to this currency issuance has led to a general rise in domestic prices, with many items increasing by 5% to 9% compared to pre-economic crisis levels.

The Shah, of course, could not ignore this situation. Public discontent could easily lead to a search for outlets for their frustrations, and whatever they did to vent would harm the country. Since the people needed to vent their anger, let him help them find those outlets.

Yes, everything you've suffered is a conspiracy by Russia in the north. They want to throw Iran into chaos so they can seize the opportunity to annex it. Then everyone will be a slave to the Russians.

This certainly doesn't mean we should go to war with Russia; we just need to guide things appropriately. Once the economy improves, the public will stop complaining.

That's one aspect; the other is continuing to seek out export markets. This is also why Nasser al-Din arranged for the Prime Minister to meet with the Far East ambassador to Iran.

Guo Songtao's appointment as minister to Iran was also influenced by the butterfly effect. The court highly valued Iran's assistance from both the northwest and southeast, making this ally a very attractive option. Agreements concerning trade and economics were generally approved.

In an effort to strengthen bilateral relations, Abdullah had already urged the Far East to send a minister to Iran. This would both enhance mutual understanding and deepen friendship between the two countries. Unfortunately, a series of events delayed this process, and it wasn't until last year that the Far East finally appointed Guo Songtao as its first ambassador to Iran.

"Your Excellency, Iran and your country have close relations, and exchanges between the two countries are increasing day by day. Therefore, the main purpose of inviting Your Excellency to come here today is to deepen the economic and trade cooperation between the two countries."

Musharraf stated Iran's demands directly.

In response to Prime Minister Musharraf's words, Guo Songtao said, "Our country is also willing to see economic and trade cooperation between the two countries. Everyone knows the sincerity of your country's feelings towards us. Your country's assistance in the Northwest is something His Majesty and Empress Dowager will remember. Therefore, our country is indeed willing to strengthen economic and trade cooperation between the two countries." These words reflected the ambassador's true feelings. In his view, buying from whomever is irrelevant; as long as the quality and price difference is not significant, why not buy from a friendly country? His sentiments not only represented his own but also those of many in his country who were currently focusing their attention on Iran, attempting to learn from its path to national strength.

Musharraf unveiled a trade cooperation plan specifically tailored for Iran's Far East. This plan primarily involves exchanging Far Eastern products for Iranian goods. To expand sales of other civilian products, the Prime Minister also hinted at further price reductions. Essentially, this involves dumping Iranian products at low prices to seize market share from similar British and French products currently available in the country.

Not only in the Far East, but also in Iran, a Japanese diplomatic mission arrived. The Ministers of Commerce, Industry and Construction met with Iwakura Tomomi and his entourage, and showed them around a factory in Basra. The workers stared intently at the machines as if they already belonged to them, like misers.

Regarding economic cooperation between the two countries, the delegation indicated that they would purchase machinery from Iran, but since they needed to visit other countries, the agreement would be signed upon their return.

However, the delegation also brought a dozen or so people to Iran; they were there to study. According to the plan, they would study and take exams at universities in Baghdad and Tehran, and Japan had extremely high hopes for them.

While this was the case for Japan and its neighboring countries in the Far East, other countries were not so fortunate. Especially in the Qinistan region, which had already been brought under Shah control, the Shah realized he had to improve their lives so they could afford Iranian products. They also needed a group of Persian-speaking intermediaries. These factors accelerated local development.

Iran plans to build a university in Saigon to train intellectuals, primarily enrolling children of the local upper class. The university will be taught in Persian, with a curriculum focusing on practical subjects such as administration, accounting, and agricultural technology, while also providing education in Persian culture. Graduates will enter the bureaucracy or become mid-level managers in Iranian companies.

At the same time, the government will build a large number of north-south highways to improve transportation between them. They will also be encouraged to cultivate various cash crops.

In Vietnam, coffee and tea cultivation was forcibly promoted; in Cambodia, rice cultivation was vigorously expanded; and in other places like Luang Prabang, the focus was simply on developing forest resources. Most of the colonies' import and export trade was controlled by Iranian state-owned companies or large trading houses, with local merchants acting as intermediaries and subject to Iranian control. As for the lower-level farmers, they all went to work on plantations or elsewhere.

Cooperation with neighboring Siam became the governor's mission. Leveraging its geographical advantage, he aimed to secure agreements with Siam ahead of time, bringing it into Iran's economic sphere while preventing it from completely aligning with Britain. These regions combined had populations in the tens of millions, ensuring Iran wouldn't have to worry about exports.

Iran's Eastern strategy has always been central to its operations. Even the British have had to admit that in the East, their primary adversary is Iran, not France.

The Strait of Malacca has become one of the world's busiest straits, with goods from both the East and West unloading here. British Singapore prospered as a result, and it could be said that half of this success was due to Iran. The British had a love-hate relationship with this; they couldn't live without trade with Iran, yet they worried that Iran would steal too much business. They could only try to expand their sphere of influence by relying on London, hoping this would be successful.

(End of this chapter)