Chapter 630 Trade War and Deterrence
Talleyrand traveled to Russia to attend the day after Potemkin's funeral.
Second floor of the Tuileries Palace.
Joseph frowned and looked at Brian and Mirabeau, who looked solemn, and finally his eyes fell on Trade Minister Bayi: "So, which countries support Salzburg's proposal?"
Bayi took a breath and said: "At present, except for Baden who sent people to seek our country's opinions and has not expressed its position, the other contracting countries should all agree to vote on Britain's accession to the Treaty of the Rhine-Seine."
Brian angrily said: "The UK has no need to join the trade agreement between France and Germany. This is obviously someone behind the scenes."
With its colonial scale and industrial capabilities, how could Britain be willing to open its market to these small countries in South Germany and do good things to others?
Bai nodded: "I judge that the South German countries want to put forward other conditions during the negotiations. In fact, Bavaria and Salzburg have repeatedly requested to renegotiate the tariff amount, but we have rejected them."
Mirabeau said: "Your Highness, large-scale protests by workshop owners have recently broken out in the southern German countries. They are mainly aimed at our country's competition.
"In the past two years, under the pressure of our products, they are losing a lot of market."
Baiyi worried: "According to the current trend, if a vote is held, the countries that agree with Britain's accession should account for an absolute majority."
The room was quiet for a moment. Brian hesitated and said: "Your Highness, maybe we can negotiate with Austria and Bavaria in advance and agree to them increasing tariffs appropriately.
"As long as these two countries oppose it, the UK's entry into the trade agreement will definitely not pass."
The South German countries basically act based on Austria's face, and Bavaria is the second largest country.
Joseph thought and shook his head: "Archbishop Brian, how much tariff do you think they can add to achieve the desired trade pattern?"
Brian turned his head and looked at Bai Yi.
The latter hurriedly said: "Your Highness, I have estimated that Austria will have to increase tariffs on our country's advantageous industries by at least 40% and other industries by about 15% to be barely satisfied. Other countries will need higher tariffs."< br>
Joseph smiled: "This will be higher than the tariff before we signed the Treaty of the Rhine-Seine.
"Currently, our country's industry is in a period of rapid development. If we suddenly lose the South German market, it will lead to a wave of bankruptcies in factories. It will take at least 3 to 5 years to resume the upward momentum."
This is the law of economic development. The faster the development, the more confident investors will be, allowing them to borrow large amounts of money to expand production scale.
At this time, if the market can digest the goods produced, you will earn several times more than before. On the other hand, if there is a problem in the market, there will immediately be a large backlog of goods, and the previous large investment will become a terrible debt.
Brian sighed: "Your Highness, but it's difficult for us..."
Joseph narrowed his eyes and said in a deep voice: "When we signed the agreement, we gave them sufficient preferential conditions.
"After that, we relied on hard development to gain the competitive advantage of our products, so we should never compromise because they don't want to make progress!"
He brought a lot of advanced technologies from later generations, as well as concepts like standardized production. Subsequently, financial reforms, tax reforms were carried out, domestic market barriers were removed, and a large number of rail transits were even built.
After this series of combinations, how can the South German countries that rely on "natural evolution" possibly compete with France?
Not to mention them, even Britain is now surpassed by France in many aspects in terms of industrial production technology and domestic systems. It is only with the huge colonial market that it can maintain its industrial advantage.
Bayi carefully reminded: "Your Highness, even if our country boycotts, as long as most of the contracting countries vote in favor, the British will still join the Treaty of the Rhine-Seine." Brian exhaled and said with great momentum: "If so If so, then we can only use war to make them make the right decision.”
Joseph immediately shook his head.
France is currently developing very well, and war will inevitably interrupt this trend.
Moreover, judging from the fact that Britain is impatient to get involved in the trade dispute between France and Germany, it is obvious that it hopes that France can fight with the South German countries.
Several ministers suddenly looked at each other.
Brian was a little confused: "Your Highness, now we must make a choice between compromise and war..."
Joseph was recalling the era in the 21st century when major powers were reluctant to start war, and how to deal with similar situations.
For a moment, he smiled: "Between compromise and war, there is actually another mode, and that is deterrence."
"Deterrence?"
Joseph nodded and looked at Bayi: "Mr. Bayi, when is the voting date proposed by Salzburg?"
"Two months from now, Your Highness, the vote will be held in Munich."
Joseph thought for a while and ordered: "Please inform other countries and vote in Karlsruhe in 20 days."
Karlsruhe is the largest city in northern Baden and the only way from eastern France to southern Germany.
Although Bai Yi didn't know the Crown Prince's intention, out of absolute trust in His Highness, he immediately leaned forward and said: "Yes, Your Highness, then I have to set off immediately so that I can inform so many countries."
Joseph continued: "You also need to conduct secret negotiations with Baden, Württemberg, Augsburg, and Hesse, and provide low-interest loans as a condition for them to vote against the motion to accept the United Kingdom."< br>
Bayi was stunned for a moment and said carefully: "Your Highness, with all due respect, the South German countries obviously hope to take this opportunity to change the trade pattern, so it is difficult for them to change their attitude with a small loan."
Joseph smiled: "Then lend them a little more. Oh, 4 million francs for Baden and Württemberg, 6 million francs for Augsburg, and 10 million francs for Hesse. I believe they will seriously consider it."< br>
This time, it was Brian's turn to turn pale, and he waved his hands hurriedly: "Your Highness, we can't afford so much funds now..."
Joseph interrupted him and said: "No, we do. Print 24 million francs in banknotes and give them to them. As long as the money can buy goods from France, they will be willing to accept it."
Brian again dissuaded: "Your Highness, the influx of so many banknotes into our country will seriously affect the stability of the currency value."
He recalled the horrific scene during the Mississippi Incident, when French banknotes lost more than half their value every day.
It was that crisis that caused France to change its attitude towards paper money in the following decades. It was not until the Crown Prince took control of the French banking industry that people were able to build confidence in paper money again.
If a serious devaluation of banknotes occurs again, it will surely bring back painful memories among the people, and may even lead to boycotts of banknotes.
(End of chapter)