Persian Empire 1845

Chapter 630 The Middle East in August 1872
In August, Bosnia's first autonomous parliament elections were underway. Of all the residents, only 49000 were eligible to vote. They elected 81 members of parliament, and to ensure fairness, three members were elected to form a presidium, from which one person was then elected as the governor of the autonomous region.

This election system is ostensibly for equality, but in reality, it's for checks and balances. Because according to the system, the three members of the presidium are elected from Orthodox, Catholic, and Sunni parliamentarians respectively, which inevitably leads to conflict over religious matters. In such cases, government intervention is necessary.

But hardliners attempted to prevent the vote, creating chaos to keep those with voting rights at home. They even set fire to polling stations in Sarajevo.

This was directly reported in the newspapers, which stated that terrorists supported by certain forces were hindering the process of Bosnia's autonomy. This aroused dissatisfaction among the local people, who, having already obtained what they wanted, did not want to fight anymore.

Now you still say you want to stick to your guns, which means you don't want them to make peace and are acting entirely for your own selfish interests. Therefore, support for hardliners is decreasing, and consequently, goodwill towards Serbia and Montenegro is declining.

Murad handled government affairs in Baghdad. After the signing of the free trade treaty between the Ottoman Empire and Iran, a large number of Iranian goods entered the Ottoman Empire, and the trade volume between the two countries steadily increased.

Iran is now partially opening visas to Ottomans, as the booming industrial sector across the country has increased the demand for labor. Besides Ottomans, people from Egypt and Afghanistan are also coming to Iran to work.

"Your Highness, our country's economy is still on the rise. Major construction projects have already begun, and it can be said that our country has eliminated the impact of the economic crisis."

Prime Minister Musharraf briefed Murad on Iran's economic situation, noting that the vast markets of the Ottoman Empire and Egypt provided Iranian industrial goods with more markets. Low transportation costs directly squeezed French and British goods into small coastal areas, prompting protests from the British and French ambassadors.

"We cannot relax too much, Prime Minister. Osman borrowed 2.4 million rials from Iranian banks, which is a large sum of money."

Not to mention the funding for construction projects and the repayment of national debt. The treasury is already strained. Russia is also eyeing the country from the north, and even more critically, the Ottoman Empire, Egypt, and Tunisia owe a combined $22 billion—an unprecedented amount.

Murad also understood his father's pressure; if you add Iran's current debt, it totals 2.5362 billion rials. Even if Iran didn't spend anything, it would still take ten years to pay it off.

"Your Highness, please don't worry. According to the telegram from Constantinople, Egypt plans to use development bonds to negotiate with Europe regarding its £5000 million debt, which also includes Tunisia's £1000 million. This money is not a concern for the time being."

Although we don't know how much help this African development company can provide, how will we know if we don't try?

The Suez Canal Company's financial report last year showed that expenditures and revenues barely balanced out. This was also thanks to the demand for Asian goods from Mediterranean countries; raw silk, tea, and even British ships chose to travel via the Suez Canal to reach their destinations as quickly as possible.

Based on this year's situation, we should be able to achieve a profit, with a dividend of approximately 1.52 riyals per share. Things should be quite different in five years.

"We've reviewed the Colonial Department's documents; this tax increase is unavoidable. However, the local Chinese don't seem to have any objections."

"They just want a stable environment. They're willing to pay more taxes as long as it allows them to settle down."

Currently, there are over 50 Chinese in Qinistan. Some have become wealthy through their intelligence and business acumen, while others have joined the Immortal Legion or been selected by the local government to become officials and soldiers. It can be said that the Chinese in the Iranian colony are the most fortunate.

As a result, large numbers of Chinese migrated to the Dutch East Indies and the Philippines. Without this intermediary, commerce naturally declined significantly. "The Chinese are just as capable in business as we are, but fortunately they don't make demands like Europeans."

After saying that, Murad brought up several banks and companies in which the royal family was involved.

“I’ve looked at the recent reports. Companies like Peninsula, oil companies, and Crédit Agricole have maintained stable revenues. These are all important taxpayers for the country, and we need to ensure their continued operation.”

Especially for oil companies, he contributed more than half of their revenue.

The kerosene business is improving, but the company is also becoming more aware of the potential crisis. They believe that relying solely on kerosene is not enough; they need a variety of products to increase revenue.

They have begun developing advanced petroleum products and are collaborating with the Academy of Sciences to see which petroleum products can be used.

"As ordered!"

These companies have also begun their own business expansions. Al Jazeera, for example, is currently driving the development of the Dubai port and has also taken out a loan from Crédit Agricole. These companies have stakes in them, involving royalty, Arab nobles, and the government; collapse is impossible, only restructuring can break them.

"By the way, Prime Minister, I think we also need to conscript 18 people to prevent the Russian army from advancing south."

“Your Highness, this will increase expenditures significantly, and Russia is also suffering from an economic crisis; they may not send troops.”

This economic crisis affected Russia more deeply than other countries. The global contraction in demand and the collapse in prices dealt a devastating blow to Russian agriculture. Mountains of grain piled up in Black Sea ports with no buyers, and prices fell below cost. The income of the aristocratic landowners, who relied on exports, plummeted, and they passed on the losses at each level, ultimately crushing the already impoverished peasantry.

Under the leadership of Finance Minister Reiten, Russia was painstakingly embarking on its industrialization process through state investment and foreign investment. The crisis led to a contraction in international capital, and many railway and factory projects that relied on foreign loans and technology came to a standstill. Russia's nascent industrial products were unable to compete in the international market, and domestic demand was lacking due to the depletion of purchasing power among farmers.

Unlike Iran's proactive reforms and the Ottoman Empire's complete paralysis, Tsar Alexander II's government adopted a more traditional approach, distinctly Russian in character. To cover the fiscal deficit and maintain massive military spending, the government increased agricultural taxes and raised prices for state-monopolized goods such as vodka.

When domestic conflicts proved unsolvable, they would divert attention through external expansion or the creation of external conflicts. Naser al-Din's rise in the Ottoman Empire provided Alexander II with the perfect "enemy."

"Caution is the right thing to do. The more this happens, the more risky the Russians will be. They will not give up any opportunity to expand their territory."

Faced with the Crown Prince's insistence, the Prime Minister had no choice but to say he would discuss it with the Cabinet. Under these circumstances, expanding the military is indeed difficult.

(End of this chapter)