Chapter 629 Trade War and Deterrence

Chapter 630 Trade War and Deterrence

The day after Talleyrand went to Russia to attend Potemkin's funeral.

On the second floor of the Tuileries Palace.

Joseph frowned and looked at Briand and Mirabeau, who looked solemn, and finally his eyes fell on Trade Minister Bailly: "So, which countries support Salzburg's proposal?"

Bai took a breath and said: "At present, except for Baden, which has sent people to seek our opinion and has not yet expressed its position, other contracting parties should agree to vote on Britain's joining the Rhine-Seine Treaty."

Briand said angrily: "Britain has no need to join the trade agreement between France and Germany. This is obviously manipulated by someone behind the scenes."

With the scale of Britain's colonies and industrial capacity, how could it be willing to open its market to these small countries in southern Germany and do good things?

Bailly nodded: "I think the southern German countries want to put forward other conditions during the negotiations. In fact, Bavaria and Salzburg have repeatedly requested to renegotiate the tariffs, but we have rejected them."

Mirabe said: "Your Highness, there have been large-scale protests by workshop owners in the southern German countries recently. It is mainly aimed at competition from our country.

"In the past two years, under the pressure of our products, they are losing a lot of market."

Bailey worried: "According to the current trend, if a vote is held, the countries that agree with Britain's joining should account for an absolute majority."

The room was quiet for a moment. Brian hesitated and said: "Your Highness, perhaps we can negotiate with Austria and Bavaria in advance and agree that they will appropriately increase tariffs.

"As long as these two countries oppose, Britain's joining the trade agreement will definitely not pass."

The southern German countries basically act according to Austria's face, and Bavaria is the second largest country.

Joseph shook his head in thought: "Archbishop Brian, how much tariff do you think they should add to achieve the desired trade pattern?"

Brian turned his head and looked at Bailly.

The latter said hurriedly: "Your Highness, I have estimated that Austria will have to increase tariffs on our advantageous industries by at least 40%, and other industries by about 15%, before it will be barely satisfied. Other countries will need to be even higher."

Joseph smiled: "This will be higher than the tariffs before we signed the Rhine-Seine Treaty."

"At present, our industry is in a period of rapid development. If we suddenly lose the southern German market, it will lead to a wave of bankruptcies in factories. It will take at least 3 to 5 years to restore the upward momentum."

This is the law of economic development. The faster the development speed, the more confident investors will be, and they will borrow a lot of money to expand production.

At this time, if the market can digest the output of goods, it will earn several times more than before. On the contrary, if there is a problem in the market, there will be a large backlog of goods immediately, and the previous large investment will become a terrible debt.

Brian sighed: "Your Highness, but it is difficult for us..."

Joseph narrowed his eyes and said in a deep voice: "When we signed the agreement, we gave them enough preferential conditions.

"After that, we relied on hard work to develop and win the competitive advantage of our products, so we should never compromise with their lack of ambition!"

He brought a lot of advanced technologies from later generations, as well as concepts such as standardized production. Then he carried out financial reforms, tax reforms, abolished domestic market barriers, and even built a large number of rail transit.

After this series of combined punches, how could the southern German countries relying on "natural evolution" compete with France?

Not to mention them, now even Britain has been surpassed by France in many aspects of industrial production technology and domestic systems. It can only maintain its industrial advantage by relying on the huge colonial market.

Bai carefully reminded: "Your Highness, even if our country boycotts, as long as most of the contracting parties vote in favor, the British will still join the Rhine-Seine Treaty."

Brian exhaled and said with great momentum: "If this is the case, then we can only use war to make them make the right decision."

Joseph shook his head immediately.

France's current development momentum is very good, and war will inevitably interrupt this trend.

Moreover, judging from the fact that Britain is eager to get involved in the trade dispute between France and Germany, it is obvious that it hopes that France can fight with the southern German countries.

Several ministers looked at each other in surprise.

Brian said with some difficulty: "Your Highness, we must choose between compromise and war now..."

Joseph was recalling the era in the 21st century when major powers were reluctant to start a war easily, and how to deal with similar situations.

After a moment, he smiled: "Between compromise and war, there is actually another model, that is deterrence."

"Deterrence?"

Joseph nodded and looked at Bailly: "Mr. Bailly, when is the voting date proposed by Salzburg?"

"Two months later, Your Highness, vote in Munich."

Joseph thought for a while and ordered: "Please notify other countries to vote in Karlsruhe in 20 days."

Karlsruhe is the largest city in northern Baden, and it is also the only way from eastern France to southern Germany.

Although Baiyi didn't know the Crown Prince's intention, he still bowed and said immediately out of absolute trust in His Highness, "Yes, Your Highness, I have to leave immediately so that I can notify 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."

Bai Yi 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."

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.