What's wrong with building a steel torrent in a dungeon?

If you only sign an equal treaty, then why are you fighting? This is simply ridiculous.

The elves didn't think Katarina would be so kind.

Seeing that the elf didn't believe her, Catalina said, "We don't want the colonies you proposed! We also don't want your compensation! We can also return all the cities we occupied before, including Luna Harbor. How do you think?"

"This... this." McMahon had no idea what the girl was up to, so he said, "You don't want so many favorable conditions, but I don't know what you want?"

"Our Lord Fran is a person with noble aspirations. She is not interested in gold, silver or land." Catalina said.

Pooh!

Pooh!

Both the elves and Christina behind the scenes were disdainful. Fran, on the other hand, was very pleased. I'm so extraordinary.

"So, what is Lord Fran interested in?"

Katarina said, "Peace!! City Lord Fran loves peace the most... Her goal is to work towards national unity and racial reconciliation. For this goal, she is willing to give up all the substantial benefits mentioned above."

McMahon thought for a moment, then said, "Um... Lord Fran is such a good man. I just don't know how Lord Fran wants to achieve the so-called peace."

He had seen a lot of posturing in diplomacy, and the elves were masters in this area. So of course he wouldn't be stupid enough to believe that Fran really came for peace.

"It's very simple!" Katarina said, "The city lord believes that the hatred and wars between races and countries in the past were all due to the inability to understand each other. As long as we strengthen understanding and increase communication, we will be able to eliminate hatred and eradicate war. So in order to enhance communication, City Lord Fran suggested establishing a free trade zone to allow the elves and the entire Vienna Alliance to have extensive and in-depth exchanges."

free trade zone

All the elves felt a sinking feeling in their hearts.

McMahon asked, "Where should this free trade zone be placed?"

"After our thorough discussion, we feel that the most suitable place to establish a free trade zone is your country's Luna Port!" Catalina said.

"What!! You!! You want to turn our country's Luna Port into a free trade zone?"

"Well... it's really difficult for a port to become a zone." Catalina said, "After referring to the scale of Bieson Port, we think that with Kaguya Castle, everything will be safe. At that time, all products sold in the sub-free trade zone will be exempt from tax! Isn't it wonderful to have a peaceful country and a peaceful people?

Chapter 395 I'll Help You Raise Money

McMahon had obviously heard Katarina's true intentions.

He frowned, and then said, "Luna Port becomes a free trade zone? No tariffs at all? What's the difference between this and ceding Luna Port to your country?"

"Of course there is a difference!" Catalina said, "We are not seeking sovereignty over Luna Port. In other words... Luna Port still belongs to the Elf Empire. You can think of it as the Vienna Alliance leasing this port."

"What about taxes!! What does that mean!!"

"It means that our country and your country are mutually tax-free in this area." Catalina said, "Your country cannot impose tariffs on any goods that flow out of the free port. Of course, in return, Orila City will not collect tariffs on goods that flow out of this port."

This treaty sounds like it is mutually beneficial and very fair.

However, McMahon immediately heard the trap.

The Elf Empire has always been self-sufficient in goods, and rarely exchanges with the outside world. Before this, except for textiles, weapons, artworks, and luxury goods, there were basically no products to sell. And after the city of Orila became the world's factory, the export volume of textiles, weapons and other commodities has basically hit the bottom.

Nowadays, the only things that the Elf Empire can sell are artworks and luxury goods. Although the unit price of these things is high, the quantity is too small, and they are basically just a small addition in the huge trade.

But the goods in Orila City are different. They can produce everything from heavy artillery to oil, salt, sauce and vinegar, and they are all good quality and cheap. Once there is no tariff protection, Fran will make a lot of money, and the Elf Empire will not be able to withstand the impact of these cheap goods.

"This is simply naked plunder! It's so unfair!!" McMahon immediately waved his sleeves and said, "If this continues, our country will become a dumping ground for your products, and the entire Elf Empire's industry will only be doomed! And we won't get a penny."

"Mr. McMahon is confused." Catalina said, "Even if we weren't there, wouldn't there be cheap goods entering the Elf Empire? Which of the twelve Elf Kings didn't use the ports of their fiefdoms to secretly transport goods here and then resell them at a high price? The Elf Kings wouldn't give a penny of these profits to your Queen! Your country's tariff system has long been in name only! Are you unwilling to exchange benefits for something that is in name only?"

McMahon was stunned when these words came out.

It was an open secret within the empire that the twelve elven kings were blatantly smuggling. However, because the elven queen needed them to send troops temporarily, they could only turn a blind eye to such matters.

"So! This so-called free trade zone will not harm the Elf Queen. What are you worried about?" After Katarina finished speaking, she added in a low voice in her heart that although it would endanger the entire Elf Empire.

"Okay!" McMahon said helplessly, "I will convey this matter to Her Majesty the Queen. I just don't know what else your country requires."

"No more! I've said it before! We in Orila City will only sign an equal treaty! So we only put forward the request of the free trade zone." Catalina took out a thick book from in front of her and handed it to McMahon, saying: "The rest are all about the details of the construction of the free trade zone. Of course, we also hope that your country will cooperate more in this process. After all, the free trade zone belongs to both sides of our country."

McMahon took the notebook, but after reading only a few pages, his expression changed instantly.

The security of the Free Trade Zone is maintained by Orila City

All criminal convictions and sentencing within the Free Trade Zone are handled by the City of Orila.

Don't underestimate these two lines of text, but in fact, aren't they the right to station troops and extraterritoriality?

However, McMahon had already anticipated these two points. Although he was angry, it was not unexpected.

However, when McMahon saw the next clause, he could no longer hold back.

Since the infrastructure level of Luna Port and Kaguya City is very low at this stage and cannot meet the daily work needs of the Free Trade Zone, the two places need to be renovated. In view of the fact that the Elf Empire is not good at engineering construction, the renovation is jointly completed by Aurora City and the elves.

At first glance, there was not much problem with this clause. After all, this was the division of labor when the elves and dwarves supported Margaret. However, immediately afterwards, the following line appeared in the clause:

According to accurate estimates by experts from Orila City, the production funds required are approximately 99.99 million magic crystal coins.

99,990,000 magic crystal coins? Why don't you go and rob them? What kind of infrastructure would cost so many magic crystal coins? Do you think you're building a wonder?

McMahon was about to argue, but he soon realized that this money was not production funds at all, it was clearly war reparations, just called in a different way. Although the essence was the same, it at least gave the Elf Empire enough face.

At this point, McMahon understood.

The cession of territory, indemnities, tariffs, and garrisons were all things that should be in an unequal treaty, but they were just covered with the skin of a free trade zone.

But a full 100 million magic crystal coins, this is really asking for too much. The empire has been fighting for so long that there is no money in the treasury. Even if there is money, it is in the pockets of the nobles. At this critical juncture, they can't even hold on to their pockets, and it is impossible for them to help the empire pay the war reparations with all their strength.

McMahon sighed, and then said, "Other terms can be negotiated, but 100 million magic crystal coins, this amount is a bit too exaggerated."

"That's not an exaggeration at all." Katarina said, "When we seized the dwarven warships, the dwarves bought them back for 10 million per Ironwall-class ship. Now our army has reached your capital, and your compensation... I mean the construction costs, can't be worse than the dwarves', right?"

"But our country really doesn't have that much money!" McMahon looked embarrassed.

"That's easy. I can find a way to help you raise money," said Catalina.

"Oh?" McMahon was slightly surprised: "I wonder if Miss Catalina has any good ideas?"

"If I remember correctly, your country spent a lot of money to buy firearms from the dwarves. So far, you still owe 20 million magic crystal coins. Since you have lost the war, why bother to pay it back? It is better to regard this money as compensation."

Blame it on the dwarf? McMahon's eyes widened.

"Not only that, there are many open-pit mines along the Luna River." Katarina said, "The elves' ore mining capacity is limited. If you give us these mines, it will be worth a lot of money. According to the current market price, these minerals are worth about 20 million."

It seems that during the attack, Orila City also found out the mineral resources along the Luna River. This was well prepared.

"But even so, there are still more than 60 million left!" McMahon said.

"If the Elf Empire really can't pay it back, it's not a big problem! After all, our Aurora City is not a demon." Catalina said: "We fully understand your country's difficulties and will never ask for a one-time payment. You can mortgage the customs duties to us. We will pay back the money slowly according to the customs duties collected at that time..."

Chapter 396 The Last Request

"Tariffs?"

"Yes. We can set up a company that is responsible for collecting taxes." Catalina said, "Your country will outsource the customs duties to this company, and it will help Majesty Lucy Antiriel collect the customs duties. The money collected will be divided into 30% and 70%."

"What! You want to take 30% of our tariffs?"

"Um...you're wrong. We want to take away 70%." Catalina said.

"This! This is ridiculous!!"

As the Queen's Hand, McMahon knew very well what tariffs meant! They were the economic lifeline of the Queen! Without money, who would be willing to be a royalist, who would be willing to work for the Queen? This was digging his own grave.

"Sir, please be patient," Catalina said. "This tariff is not just for the Queen, but for the entire Elf Empire."

"You want to control the taxation of the entire Elf Empire, including the taxation of the Elf King?" McMahon looked at Katarina with a shameless look.

"Yes." Katarina said, "I know that the Elf King stole from his own company and used the ports in his territory to smuggle, causing the Elf Empire to lose a lot of tax revenue. The Queen is very troubled by this, but she doesn't have many solutions."

"Do you have a way to eliminate smuggling?"

"Sir, you are joking. How can smuggling be completely eliminated?" Katarina said, "But as long as we get rid of the big guys like the Elf King, the rest won't matter. So, give us the customs duties and leave 30% to the Queen. Not only will the Queen not suffer any losses, she may even make a profit from it. Am I right?"

McMahon began to think.

He knew very well how rampant smuggling was in the Elven Empire. If Katarina could really eliminate most of the smuggling and only take 30%, they might still be able to make a profit. But the key was, did Katarina have the ability to do so?

If the attack fails and the Elf King continues to smuggle, how much will the Queen have left after 70% of the tariffs are withdrawn? Although tariffs are only a part of the empire's financial resources, this part should not be underestimated.

So McMahon asked: "How are you going to ensure that the Elf King listens to you? Continue to use force to coerce? Or simply occupy the Elf King's port?"

"It's not that troublesome." Katarina said, "The goods smuggled by these Elf Kings are basically all imported from the Port of Bieson. We just prohibit them from buying them from the source. We call it trade sanctions."

“What if they buy from someone else?”

"The source of the goods on the surface can always be traced." Katarina said, "Once it is discovered that a certain chamber of commerce is reselling to the Elf King, they will also be put on the sanctions list. In this way, if the Elf King wants to buy from others, he can only purchase them at a high price on the black market, which will inevitably reduce a lot of profits... and in order to avoid being detected, the amount of smuggling will be greatly reduced."

McMahon still hesitated.

Of course, this is not because he does not believe in the ability of Orila City, but because he does not understand this area!!

What sanctions list, what black market, what second-hand resale. The Elf Empire hardly participates in the economic and trade system of the main plane. Most of its products are produced and sold by itself. The nobles of the Elf Empire are self-proclaimed and elegant, and they disdain trade, which is full of the smell of money.

McMahon was overwhelmed by all the sudden business terms, which made him unable to judge whether this plan was good or bad.

"Since Mr. McMahon doesn't trust us, we have another option." Catalina said, "We will give the Queen a stable amount of money every year as tariff compensation. The amount is about 80% of the tariffs in recent years. The remaining tariffs, no matter how much, will be given to Aurora City. Even if there is a loss, we will bear it ourselves. How do you think?"

This plan was understandable to McMahon and his team. He nodded and said, "Let us discuss this plan first."

"Okay, the elves can go back and decide which plan to choose first. As for the quantity details, we can talk about it slowly." Katarina said.

"Thank you, Miss Katarina." McMahon felt that this human lady was very kind. She even prepared two plans for them.

The major issues such as cession of territory, compensation and sovereignty have already been discussed.

McMahon also breathed a sigh of relief.

Although he had been showing anger and pain during the meeting, he was actually quite satisfied with the result. At least compared to the unequal treaty signed between the elves and the colonies, the one signed by Aurora City was more conscientious. If he were to preside over it, he would definitely give them a good beating.

With this agreement, he can finally give an explanation to the Queen.

"Then... please allow us to report all these matters to Her Majesty the Queen, and then proceed to the next step of the peace talks. What do you think?"

"Don't be impatient, sir. We still have one last request regarding the free trade zone."

"One last request?" McMahon was a little confused.

In ordinary unequal treaties, all the necessary contents are already included. What other requirements are there?

Peace and marriage??

But now there are not many people suitable for marriage in the Queen's family, and we can't ask the Queen to go and marry in person.

"The last request is very simple." Catalina said, "As you know, before starting a large-scale project, a groundbreaking ceremony is usually held to bring good luck. The renovation of Luna Port and Kaguya Castle is no exception. In order to make the ceremony look solemn, we would like to invite Her Majesty Lucy Antiriel to attend."

"I'll take care of that," McMahon said. "I think your Majesty would also be happy to attend such an occasion."

"Please allow me to finish." Catalina looked at McMahon meaningfully: "I have heard that Her Majesty Lucy Antiriel plays the harp very well. Lord Fran has also admired her for a long time. I hope Her Majesty can play a song for everyone at the ceremony."

"Everyone?"

"Of course, it's the distinguished guests who will be attending the ceremony. This is an important ceremony. In addition to Lord Fran, we have invited the leader of the Troll Empire, Lord Jinzaka, Prince Sankara, Lord Beast King of the Orc Empire, Lord Allende of the Eagle Empire, and many leaders of the Inya continent..."

After hearing this, McMahon's face became more and more gloomy, because many of these so-called leaders were leaders of the resistance army under the elven colony.

And the queen had to play musical instruments for these so-called leaders in public.

This time, McMahon was really angry. He stood up and pointed at Catalina tremblingly and said, "At your groundbreaking ceremony, you want our noble Majesty to play the piano for the people in the colonies like a singing girl..."

"This... Mr. McMahon, please don't say such harsh words. How can this be a singer? This is an artistic exchange! This is a good opportunity to promote the art of elves!"

"What kind of art exchange is this? This is so rude and arrogant! You are insulting the noble queen! You are insulting the entire Elf Empire!" McMahon slammed the table hard and said angrily.

After hearing this, Catalina's face turned cold, and behind her, a dozen soldiers stared at McMahon.

These soldiers were not honor guards, but real warriors who had fought in the battlefield and killed the enemy. Their stare immediately made McMahon feel the deep killing intent, and cold sweat instantly flowed from his back.

Chapter 397 A Profitable Deal

"Mr. McMahon, you only care about the dignity of the Queen, but not our face." Catalina said, "We in the Orila layer lost tens of millions of magic crystal coins and suffered millions of casualties. We finally won the battle, but we did not take advantage of the situation, did not burn, kill, plunder, or ask you to cede land or pay compensation. We even returned all the occupied cities to you. Just to exchange for a little dignity of the Queen, isn't this worthwhile?"

"It's worth it?" McMahon said righteously, "The Queen's dignity is priceless! It can't be exchanged at all!"

"Great! Dignity is priceless!!" Catalina also slammed the table heavily.

Although Katarina was much smaller than McMahon in both size and age, her aura instantly overwhelmed McMahon. It was not because of anything else, but because there were tens of thousands of Aurora warriors waiting behind her.

Katarina stared at McMahon, and then said, "Back then, the elves broke through the Troll Empire! They forced Lord Jinzaka to retreat south and lost a lot of land. In recent years, the Elf Empire has been burning, killing, looting, persecuting local people, and extracting local raw materials in the Inya continent. I would like to ask these countries, how much is the dignity of these civilians worth?"