Holy Roman Empire - Chapter 333

Chapter 333: Chapter 20, If one wants to take something, one must first give something.

The addition of an autonomous province made hardly a ripple in the New Holy Roman Empire, apart from being reported in the Vienna newspapers.

The public did not react much, but the Vienna Government was different. Although the income of several hundred thousand Divine Shield a year was not much, their investment was even smaller!

Do not look at how many colonies Austria had; in reality, they barely made any money.

By the end of 1861, aside from the earliest developed West Africa region, which profited 126,000 Divine Shield thanks to gold mines and plantations, all other regions were in a state of loss, with just the amount of loss differing.

The colonies in the Central American region lost 2,164,000 Divine Shield;

The colonial government of Nigeria lost 1,448,000 Divine Shield;

The colonies in the Congo region lost 684,000 Divine Shield;

The colonies in the Southeast Asia region lost 682,000 Divine Shield;

The colony in Cameroon lost 342,000 Divine Shield;

The colony in Libya lost 216,000 Divine Shield;

The Sinai Peninsula lost 205,000 Divine Shield;

Islands in the Mediterranean such as Cyprus Island and Crete lost 186,000 Divine Shield;

The outposts in the Patagonian plateau lost 28,000 Divine Shield;

Several other colonial outposts combined suffered a loss of 128,000 Divine Shield.

All in all, Austria’s colonies combined for a total loss of 5,957,000 Divine Shield in the year 1861.

This was still without the expenses of large-scale military operations abroad; should a war break out, that number would increase several times, even by more than tenfold.

The massive losses were a core factor in restraining Austria’s colonial expansion, especially at the early stages of opening up a colony, which was purely a state of investment.

The newly added Lanfang Autonomous Province was not worth mentioning, but at the end of 1861, in the annual accounting, they shared the burden of 580,000 Divine Shield in military expenses.

Nominally, this was a share of the military expenditure to ensure the security of the state, but in reality, it was no different from making direct payments to the Central Government.

This was just the beginning; over time, with the circulation of the Divine Shield, a Coinage Tax could also be collected.

These incomes combined and starting from 1862, the Southeast Asia region would move from the investment stage to the repayment stage.

If considering the additional industrial and commercial market and industrial raw materials provided for domestic use, the value was even higher.

The Vienna Government only had to provide safety protection, which was a given since where the treasure lies, it must be guarded.

Finance Minister Karl, brimming with excitement, suggested, “Your Majesty, should we change our method of colonization? The profits gained from indirect rule are not lower than those from our direct control.

If we were to occupy Kalimantan Island by force, at the very least, we wouldn’t be profitable for five years, and the profits that could be brought in later might not increase by much.”

Austria’s overseas colonial expansions were only superficially impressive; in reality, they had their untold hardships.

As the Finance Minister, Karl could responsibly say that even taking into account the increased revenue from all sides, the Vienna Government was still operating at a loss.

Of course, the Nobility and capitalists engaged in colonial activities made money, and accordingly, Austria’s domestic economy benefited.

Suddenly, there was a model where one could profit by only providing security without any investment, and naturally, Finance Minister Karl became interested.

Franz shook his head and said, “Don’t dream, we can’t encounter a good situation like the Lanfang Autonomous Province every day.

There are many indigenous kingdoms overseas, but if these countries themselves are on the verge of bankruptcy, can we expect them to offer us aid?

The Lanfang Autonomous Province itself is like a company, simply mistaken by outsiders for a republic, and it’s because Kalimantan Island is rich in gold that we can get help.”

Moreover, if a few indigenous kings were to join the Empire, are you sure the states below, the Nobility within the country, wouldn’t create a disturbance?”

All the hopeful people immediately discarded this impractical thought. If a few indigenous princes and kings were to enter the Empire, they would not agree either.

The Lanfang Autonomous Province was originally a group of commoners, and Franz had only appointed a few lower-tier Fief Aristocrats, whose political status was limited and who could provide financial resources to the government, so everyone would not mind.

If a few kings emerged, each with a status higher than theirs, probably everyone would feel unbalanced inside.

This differed from the states in Europe, where they were recognized as established Nobility, and everyone had long since accepted this.

Of course, for these high-ranking officials in the government who wanted to become kings, there were opportunities. With significant contributions, Franz would not mind conferring a few Colonial Kings.

These kings would be merely nominal at best; in theory, every Fief Aristocrat could establish a country, but in reality, most Aristocrats could not build a country.

Already developed colonies wouldn’t see large titles granted, only the undeveloped and unclaimed territories would.

If the development went well, it could be an Earl Country, Marquess Country, or even a Duchy or Kingdom; if it went poorly and required the power of the nation to govern, in the end, it would still only be a Fief Aristocrat.

In this era, countries could be traded, titles could be sold, or one could buy from a King, but the price was very high, and what was usually sold were only hereditary titles.

For instance, the few hereditary nobles enfeoffed in this case of the Lanfang Autonomous Province were because people had given gifts. Otherwise, what might have been conferred was not Baron or Viscount, but Honorary Knight.

The gifts were not generous enough—if someone offered a high enough price, the succession of nobles could still be granted. After all, as long as Franz didn’t have to grant any fiefdoms, everything was negotiable.

He wasn’t the only one selling; almost any European King could sell titles, provided you were wealthy enough.

The price also varied, for instance, titles from the New Holy Roman Empire were exceedingly difficult to purchase.

To guarantee the nobility’s honor, Franz restricted the number of titles the Kings of the states could grant and required approval from the Emperor himself.

Those with no contributions to the state were usually not approved, exceptions were made for those of good birth, such as a King’s son, whose approval was certain.

The people from Lanfang Autonomous Province were awarded titles because they facilitated Lanfang’s incorporation into the New Roman Empire, thus they were considered meritorious servants.

If one wanted to purchase a title with money, any offer below 1 million Divine Shield would not be entertained by His Majesty Franz. That was his reserve price, which continued to increase along with his fortune.

As a direct consequence, Franz had not sold any titles since his ascension. Many believed that the Emperor held the honor of the nobility in high esteem and scorned money, which enhanced his prestige among the nobility.

People often crave what is hardest to obtain. The policy of not awarding titles without merit did not deter everyone’s enthusiasm for nobility; on the contrary, it made them more addicted.

In order to obtain noble titles, many Austrian nobles and capitalists organized expeditions to expand the colonial territories, then exchanged their feats for titles.

Ordinary citizens, lacking such financial resources, could only enlist in the army to earn their merits on the battlefield.

Against this backdrop, in just the year 1861, Franz conferred titles on 286 individuals, 61 of whom were fief aristocrats.

These fiefs were naturally the overseas colonies, as there were not many fiefs left within the emperor’s own domain to sustain such distribution.

Colonial Minister Yózsef Jellacic suggested, “Your Majesty, the Colonial Department has summarized the basic data of each colony and discovered through analysis that the Southeast Asia region is most suitable for colonization.

The land there is fertile, the resources are abundant, and it hardly takes any investment to receive generous returns. The Colonial Department suggests we should increase our expansion in the Southeast Asia region.”

Franz glanced at the map, hesitating. In the short term, the Southeast Asia region indeed seemed like the most appropriate colony, with its abundant resources, pleasant climate, and ease of governance.

The downside was that it was too far away, and the blended influence of England, France, Spain, and the Dutch made further expansion likely to provoke diplomatic conflicts.

It wasn’t that Franz feared conflict; what concerned him was the issue of cost versus benefit. As long as Austria didn’t seize colonies from other nations and targeted unclaimed territories, conflicts should be within a controllable range.

Austria’s power was not unlimited; its commitments were already expansive, just behind the British and on par with the French.

To guard against the rise of the United States, a strategic presence in the Central American region was indispensable; from the perspective of long-term development, control over the African continent was also necessary.

The strategy in Southeast Asia had always been a last priority; even with some effort spent during the past year or two, the investment there remained limited.

Franz directly addressed all the issues, “What places is the Colonial Department eyeing? Who are our competitors? How much investment is needed? What risks might we face and how significant are they? What is the expected return, and how long will it take to materialize?”

Colonial Minister Yózsef Jellacic responded, “We have many potential targets, including the Indochina Peninsula with the Phnom Penh Dynasty, Thailand, and Vietnam; as well as the Malay Peninsula, Sumatra, Sulawesi island, and several small to medium islands.

These places are quite suitable; though various nations have begun their infiltration, none have yet established a colonial regime, and according to international convention, they are still in a free competition stage.

England, France, Spain, the Dutch, and ourselves could all potentially be competitors, with each nation having colonial footholds in these regions.

The Dutch appear to have set their sights on Sumatra, as they have already occupied many areas of the island. However, their limited power is insufficient to deal with the local regimes on the island for now.

Due to the Strait of Malacca, the British influence has extended deeply into Malaysia, and they may become our most formidable opponent.

The French seem interested in the Indochina Peninsula; should our chosen targets overlap, a conflict will be unavoidable.

The investment and risks depend on the target chosen. Generally, the areas with richer benefits require larger investments and face more brutal competition.

The rate of return in these regions is quite favorable; theoretically, after establishing a colonial regime, we could achieve financial break-even within three years.”

Without a clear understanding of the number of competitors involved, accounting for costs is exceedingly difficult.

Colonization itself is an uncertain investment; many regions that appear lucrative might actually turn out to be unworthy expenses.

After some hesitation, Franz made a decision, “The established strategy remains unchanged; although the Southeast Asia region is tempting, in reality, there is not much we can consume.

The Colonial Department can focus on uninhabited small to medium islands, and for other regions, we may try within our capacity. If we encounter other nations, we can engage in the exchange of interests.

We cannot be involved everywhere; once we exceed our limits, the colonies will no longer be supplements but rather deadly poisons.

The Kingdom of Prussia wants to join the colonization efforts? Let’s give them a hand and guide the Prussians into the Southeast Asia region to offer them a good start.”

Overseas colonization depends not only on national power but also on the level of investment. After committing substantial efforts in Central America and the African continent, Austria’s capacity to invest in the Southeast Asia region had considerably diminished.

With insufficient power, blindly charging in could lead to losses. Rather than being chased away in humiliation, it’s better to be conservative from the beginning to prevent fruitless exertion and disgrace.

As for assisting the Kingdom of Prussia, that would merely be an act of convenience, to help the Prussians advance further on the path of a colonial empire.

To receive, one must first give.

If the Prussians do not see the benefits, why would they invest heavily?/>

With limited Prussian national power, if they invest too much in their navy, their army will inevitably receive less, thus reducing the difficulty for Austria to unify the Germany Region in the future.

On this point alone, it would be worthwhile for Austria to sacrifice interests in the Southeast Asia region. After all, once Germany is unified, all these gains will remain in the pot, ensuring no loss.