Holy Roman Empire - Chapter 165:

Chapter 165: Chapter 52, Monopoly System on Tobacco and Alcohol

Translator: 549690339

After entering 1851, the situation in the Near East became increasingly tense. Russia and Austria eyed the Ottoman Empire with covetous gazes, and the Sultan Government invited England and France to mediate the conflict.

Regardless of the price the Ottoman Empire paid, the issue now was that the French government was busy with internal struggles, and the British alone were simply not enough to intimidate Russia and Austria.

In the eyes of the British, the core of this Near East crisis lay with the Russians; as long as they didn’t cause trouble, persuading Austria would be easy.

Under this judgement, negotiations between England and Russia began. Undoubtedly, the British didn’t believe that the issues could be resolved at the negotiating table, and the main purpose of initiating these negotiations was to buy time.

The London Government and Louis-Napoleon-Bonaparte had already teamed up, and to deal with the increasingly severe Near East crisis, the British decided to support Napoleon III’s rise to power.

The British wanted to buy time, and the Russians were also unprepared, so the negotiations began under these circumstances.

Vienna

The Austrian Government was discussing the English-Russian negotiations, which affected Austria’s next strategic move. If the British managed to cheat Russia, Austria’s western strategy would fall through.

Metternich analyzed, “The contradictions between England and Russia have a long history, and the conflicts of interest between the two are very severe. From the Near East to the Far East, everywhere is a focal point of their contradictions.

Unless one side can make significant concessions, the conflict between the two countries is inevitable.

The current Near East crisis is mainly caused by Russia’s core strategy. Having prepared for so long, asking them to stand down now would be as difficult as ascending to heaven.”

After the decline of the Ottoman Empire, a voice emerged within Russia advocating for the swallowing of this old empire and inheriting all its legacies.

Because their ambition was too great, Russia’s plans were naturally resisted by other countries. Although they failed to swallow the empire, in the recent Russo-Turkish wars, the Russians still reaped considerable benefits.

Perhaps feeling that swallowing the Ottoman Empire in one gulp was too difficult, the Russians set two smaller goals to complete this plan step by step.

The first step, control the Black Sea, advance south to the Balkans, and occupy the Two Straits;

The second step, firmly grasp the protection rights of Orthodox Christians within the Ottoman Empire, and then gradually erode the Ottoman Empire.

The core of the first step in the strategic plan was to occupy the Two Straits. Only by controlling this Golden Waterway could the Russian Empire ensure its strategic security and not worry about being blockaded by the Ottoman Empire.

This was also the first step for the Russians towards the sea, a core element in their maritime strategy.

However, this most critical step was cut off by the British in 1841 with the signing of the London Strait Treaty.

The Russians saw the fruits of their half-century struggle go down the drain, and the Tsarist Government refused to let go of the protection rights of the Orthodox Christians. The spark that ignited the historical Crimean War was religious conflict.

Now with the Russian-Austrian alliance, the European diplomatic situation, which had collectively suppressed Russia, had changed; the French were out of action, and if the Russians didn’t seize the opportunity to occupy the Two Straits region, they would never have another chance.

The Holy Land crisis provided the Russians with a sufficient excuse for war. The reason they had not yet launched was that they were preparing for war.

Was the Ottoman Government unaware of these issues? Obviously, that’s impossible. As an old enemy, the Ottoman Government had never let down its guard against the Russians.

The problem is, even if they are fully aware, aside from being forced into reactive combat, they can only hope for international mediation.

Going on the offensive was out of the question; the Russians were not ready for war, and neither was the Ottoman Empire.

Nominally, they had no shortage of troops, and they seemed strong and well-equipped. But the people within knew the real situation; the ostensibly strong Ottoman Army was actually just a facade.

Whether against the Russians or fighting Austria, they were timid. This couldn’t simply be swept away by calling the government corrupt and incompetent. The gap in national strength isn’t something that can be bridged overnight.

Prime Minister Felix thought for a moment and said, “It’s inevitable that the Russians will make a move; what we’re uncertain about is whether they’ll do it in the second half of this year or wait until 1852.

Not only is the timing of the outbreak of the war uncertain, but the duration of this inevitably large-scale war is also an unknown factor.

Most concerning is whether England and France will join the war and, even if they do, how much effort they will put in.

Before these issues are clarified, any action we take is risky. Now, we must find ways to keep the risk within a manageable range.”

This is the difference between great powers and small ones. Small countries don’t need to consider the aftermath when devising strategies; if they win, all’s well, if they lose, it’s over.

Austria is different. As long as they don’t act recklessly, they can come back from a failure and have another go, so advance risk management is essential.

Marshal Radetzky shook his head and said, “If we want to control the risk, then after the Russo-Turkish war breaks out, we can only wait for the war to escalate. Before the French send troops, we cannot make a move.

What if the French don’t join the war? Are we going to give up on this plan?”

Prime Minister Felix affirmed, “This will depend on the determination of the British. As long as they are willing, there will surely be a way to drag the French into action.”

This conclusion was the same as that reached by Franz, who would say that Louis-Napoleon-Bonaparte came to power with the help of the British?

Historically, he himself had a severe phobia of the British and often echoed their sentiments. During his rule, it was rare to see the French government stand firm against the British.

After pondering, Franz said, “The key to the success of this strategy lies in secrecy, launching surprise attacks on various nations to create a fait accompli and force England and France to acknowledge it.

As long as the plan remains undisclosed, the initiative is in our hands. When to act and whether to act at all will be entirely our own decision.

Whether England and France will participate in the war after the outbreak of the Russo-Turkish War is beyond our control, but the Ottomans are likely more anxious.

Coaxing England and France into the war is their only option to escape the crisis. If necessary, we can let the Ottoman Empire know that our goal is solely the Danube Basin.”

Deceiving the Ottomans posed no moral dilemma for Franz. If he told them that the Austrian Government had no interest in them this time, he guessed that, no matter how eloquent the Sultan Government, they would not dare believe it.

Better to leak false information that the Ottomans would take as true. Compared to the Russians who wanted to swallow them whole, the appetite of the Austrians was undoubtedly much smaller.

Having distinguished between the main and secondary enemies, the Ottoman Government would not have many choices. A bite from Austria was but a minor irritation, but a bite from Russia would leave them crippled if not dead.

Finance Minister Karl proposed, “Your Majesty, to cope with the upcoming war, the Ministry of Finance suggests implementing a monopoly system on tobacco and alcohol to raise more funds for the war.”

Austria did have a war fund that was sufficient to unify the South German Region, but it might not suffice once foreign intervention was at play.

The Austrian Empire was too large and too established to take risks. Franz, who also disliked risks, would not foolishly start a war with just a few months’ worth of funds.

Thus, from the beginning, the strategic plan accounted for intervention by major powers, with the worst case scenario being war with England, France, and Prussia simultaneously.

Of course, this was predicated on a joint effort with Russia. Franz was not rash enough to take them on alone, nor did the Austrian Government have such confidence.

In war, the side with more soldiers always has some advantages, especially when facing the possibility of waging a two-front or even a three-front war.

The more troops there are, the greater the military spending. Hence, it was vital to raise as much war money as possible.

The most direct method would be to levy war taxes. Franz, a man of principle, would not resort to this unless the war had already begun.

“How much revenue can we gain after implementing the monopoly system on tobacco and alcohol?” Franz inquired, interested.

After some thought, Karl answered, “Considering the current state of our domestic economy, implementing the monopoly system on tobacco and alcohol can increase our income by at least 35 million shields annually.”

On top of the existing tax revenue, an additional 35 million shields in income reflected the substantial profits from tobacco and alcohol.

“Prime Minister, what do you think?” Franz asked.

The amount of 35 million shields was enough to sway Franz, who had internally agreed to the plan. Now, by asking for the Prime Minister’s opinion, he was seeking the Cabinet’s commitment to implement this plan.

Prime Minister Felix replied without hesitation, “Your Majesty, special circumstances require special treatment. The government will work on persuading the capitalists, and I am sure they will understand.”

Clearly, everyone’s threshold was so high that they did not mind sacrificing certain interests for an increase of 35 million shields in financial revenue.

Whether the adversely affected capitalists could see reason was no longer important, as they did not wield political influence.

Historically, the Austrian Government instituted monopolies on salt and tobacco. However, the conscientious Franz had already included salt and grain as essential items in previous welfare legislation.

To ensure the populace had enough to eat and were not driven to rebellion, the government tightly controlled the prices of these essentials.

Unable to increase prices, incorporating salt into a monopoly would not add much to the income, so naturally, the Ministry of Finance turned to the more profitable alcohol.

Neither of these products was a necessity, so their higher prices mattered little. Consuming less tobacco and alcohol could even benefit one’s health.

This was Franz’s true thinking, although he himself smoked and drank. Nevertheless, this did not prevent him from guiding the citizens towards healthier habits.

After thinking, Franz said, “If that’s the case, then the government should legislate and implement the monopoly on tobacco and alcohol as soon as possible.”

“Yes, Your Majesty!” Prime Minister Felix answered.