Holy Roman Empire
Chapter 852 - 115, Increasingly Rampant

The Afghanistan battlefield had seen a series of tough battles after which the British Army successfully defeated the main forces of the Afghan government forces.

On July 16, 1888, after suffering over three thousand casualties, the British Army successfully captured Kabul, and the remaining Afghan Government was forced to retreat to the Hindu Kush mountains.

Having won this great victory, the British no longer kept it to themselves; the London Government announced it to the outside world immediately.

Franz too was somewhat worried as he watched the British tout their military achievements; this outcome was truly unexpected. The Afghan Government had not even held out for half a year.

With the British now in control of Kabul, and the Russians still waging war with the Central Asian Khanate, once the British Army broke through Afghanistan and directly connected with the Central Asian Khanate, the Russians would have a harder time in the war that laid behind.

This was completely different from the initial plans. Franz had initially hoped that Afghanistan would drag out the conflict a bit longer, allowing the Russians to push the frontline all the way to British India and really stir up the British.

Without being provoked, it was almost certain that the London Government would not be too harsh in dealing with the Russians and might very well stop after occupying the Afghan region.

As for the Central Asian Khanates, it was primarily a matter of saving them if possible, but if they couldn’t be saved, compromising with the Russians by selling them out was also a possibility.

Perhaps in the coming years, the Afghan region might become a heavy burden for the British, but the Russians hadn’t been significantly weakened.

An aggressive ally such as the Russian Empire is better off not being too strong, otherwise it would cause sleepless nights.

After rubbing his forehead, Franz resignedly said, "The war loans for the Russians have been approved, right? The Tsarist Government needs our support now."

There was no other choice. If he couldn’t influence the British Government, he had to encourage the Tsarist Government. Now he could only hope that the Mao Xiong would be greedy enough to stick it out to the end against the British for India.

Foreign Minister Wessenberg: "Your Majesty, now is not the time to show goodwill, as it appears too deliberate.

"If the Russians want to obtain war loans, it is better to follow the proper procedures and have them present collateral.

"Lest others discover our intention of instigating an Anglo-Russian war and cause unnecessary trouble."

Politics requires a façade. It’s true that Austria wishes to provoke an Anglo-Russian war, but as much as we might hope for it, saying it out loud is absolutely impossible.

From the beginning, the Vienna Government positioned itself as indifferent to the war in Central Asia, supporting the Russians only due to the Russian-Austrian Alliance.

Cheering for the Russians comes from a sense of shared enmity, with absolutely no intention of causing trouble.

Whether others believe it or not, the Vienna Government certainly does.

"Hmm!"

Franz nodded in agreement, acknowledging that Austria was indeed not in a position to do too much in the current situation.

However, it was not possible to do nothing; letting the situation develop on its own would mean Austria’s strategic objectives could not be met.

Prime Minister Carl: "The governments of Britain and Russia are not fools. Given the current development of the situation, achieving our strategic goals from the top down is no longer possible.

"Perhaps we should now shift our mindset. To exacerbate the conflict between the two countries, it is not necessarily required that both governments agree.

"As the war progresses, it’s only a matter of time before Britain and Russia share a border. Once there is no buffer between them, creating conflicts becomes much easier.

"So far, the British have only committed five Indian Colonial Divisions and a small number of home troops to the war, and the combat effectiveness of these forces is very limited.

"They might be adequate against the Afghan Government, but it’s impossible for them to deter the Russians. All we have to do is subtly give the more radical elements within the Russian Army a nudge."

Listening to the Prime Minister’s explanation, Franz suddenly realized that he had fallen into a fallacy; in this era of survival of the fittest, everything had to be dictated by "power."

The British may seem to have the upper hand, but the Indian Colonial Divisions truly aren’t enough to hold the ground. Not only are they unable to deter the Russians, but they may actually bolster Russian ambitions.

Changing this wasn’t impossible; an immediate expansion of the army and transferring hundreds of thousands of regular troops from home to confront the Russians were options.

Although it seemed feasible, the problem was that expanding the army would cost money.

This was not a one-time expense but a long-term one. As long as the Russian Empire did not fall, Britannia would have to deploy a significant force in the Afghan region.

As a result, Britannia would no longer be purely a maritime nation but would also have to develop land power, although this "land" wasn’t home soil, with India’s importance being only slightly less than that of the homeland.

With the army consuming a significant part of the military budget, this would inevitably affect the development of the Royal Navy over time.

But Franz’s concerns went further than that. While it seemed the British occupied Kabul, the resistance of the Afghan people had not stopped.

It wasn’t apparent in the short term, because the British hadn’t occupied much territory yet, but once they controlled the entire Afghanistan, there was a question whether these few Indian Divisions could maintain local order.

Seeing a chaotic Afghanistan, the Russians had no reason not to be tempted, right?

As soon as the Russians made their move, the British Government would have no choice but to respond to the attack. At worst, they would act as a sponsor and fund an Anglo-Russian clash.

Spending money now to weaken two competitors at once was better than spending even more in the future and personally entering the fray.

"The Prime Minister is right; we do need to shift our thinking now and take the grassroots route. The task of stirring up the Anglo-Russian conflict will be left to the intelligence department.

"The Finance Ministry should prepare in advance, in addition to the current loan of 50 million divine shield, we must arrange 300 million divine shield in funds for the Russians over the next three years. This time, we’re going to support the Russians all the way to the end."

Not all the money for the war was coming out of Austria’s pocket; the vast majority of the war costs still had to be resolved by the Tsarist Government itself.

For example, when it came to common necessities like food, the Tsarist Government’s warehouses had plenty, which just needed to be transported to where they were required.

In comparison, grey livestock was quite economical, and as long as the food issue was handled, each soldier could head into battle with just a rifle.

The funds raised by the Tsarist Government, combined with Austria’s significant contribution, were already sufficient to support the tens of thousands of Russian troops for a number of years.

"Yes, Your Majesty!"

…

Foreign Minister Weisenberg: "Not only does the Central Asian Battlefield require attention, but the European Continent is also at a critical moment of change.

Since the alliance between England and France, the French have become increasingly aggressive. Just last week, the French Government bought off the UK Coal Association.

The UK Coal Association has deviated from the International Coal Export Alliance and has already taken the lead in lowering the coal prices exported to France by 20%, equivalent to the average international market price for coal exports.

The French are currently pressuring Belgium and the North German Confederation, demanding that they increase their coal export volume to France by thirty percent and also reduce the price by 69%.

This price is not only far below the international coal price, but it is even lower than the domestic coal prices of several coal-producing countries in Europe.

Taking into account additional expenses, some coal mines with difficult mining conditions are likely to fall directly into a loss.

In fact, the average price for international coal exports, which has been raised due to sanctions against the French by the International Coal Export Alliance, is already about 20% higher than the average domestic coal price in Austria, and about 50% higher than the price paid by France."

With such high export prices, plus various miscellaneous expenses, the final cost to the consumer could exceed the original price by half.

Coal is a product in high demand, and since the Anglo-Austrian led action, the French previously had no power to resist.

After the alliance between England and France, the encirclement was broken, the international situation improved, and the French government couldn’t resist taking action.

After buying off the British, they relied on their own strong fists to bully Belgium and the North German Confederation.

As for Austria, another country in the coal export alliance, its market share in the international coal export market was tiny, and it was outright ignored by the French.

Even without a calculator, Franz knew that the purpose of the French was to break the continuous high energy prices in their own country, and probing European countries took a secondary priority.

Even without a calculator, Franz quickly reached a conclusion, using Austria’s average retail price for finished coal as a baseline of 1, the previous price paid by France was 1.5.

1.5*(1-0.69) = 0.465

The French intended to purchase coal at 46.5% of the retail price. Including miscellaneous taxes, freight, wholesale, and retail profits, this price allowed French enterprises to essentially match Austrian energy prices.

And this was just matching Austria, in fact, the average domestic coal price in Britain, a major coal-producing country, was even lower; about three to five percentage points lower.

These data show the lack of competitiveness of French industrial goods is not without reason.

The coal industry is indeed highly profitable, but it is not so profitable that domestic suppliers can obtain coal at such low prices.

At the pricing currently offered by the French, unless Belgium and the North German Confederation exempt all coal production enterprises from taxes, the majority of companies would suffer losses.

The French wanting to reduce energy costs is one thing, but the issue now is that the French government wants Belgium and the German Federation to foot the bill.

Prime Minister Carl exclaimed in surprise, "Have the French gone mad? How can Belgium and North Germany accept such prices?

Even if both governments choose to comply due to military threats from the French, I fear the capitalists will not agree."

It’s not a matter of "fear", they definitely will not agree. Capital has started to internationalize, and for example, in the coal mines of the Rhineland region, a significant number has fallen into the hands of Anglo-Austrian capitalists.

How could these capitalists possibly accept terms that harm their own interests?

They rather not do business with the French at all; being backed by foreign investment, they’re certainly not afraid. In the end, those who will really be affected are probably those without such backing...

Franz nodded, "Those who wish to destroy, must first drive mad. If the French are truly this rampant, it could also be a good thing for us.

These terms have already surpassed the bottom line of Belgium and North Germany; it’s impossible for the two countries to agree.

If the French dare to use force, Belgium and the North German Confederation will lean towards us, and I wouldn’t mind sending troops to fight a war on behalf of our allies.

However, the French are not that foolish, they aren’t ready for war yet, and turning hostile now would bring them no benefit; this is likely just a probe on their part.

Their current exorbitant demands only aim to test the limits of Belgium and Germany, to lower their psychological expectations.

If things go as expected, in the following negotiations, the French will likely show a slight goodwill, and the two countries will choose to compromise."

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