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Chapter 1318: Financial Warfare I

Chapter 1318: Financial Warfare I

Talleyrand shrugged, then smiled slightly. "However, you will most likely not get the repair facility, because I am quite confident that British bonds will collapse."

Frederick was clearly regretful, but still nodded. "At any rate, I will gain France's friendship, and that is enough."

Denmark was considered one of the top second-tier powers in Europe. Over the years, it had successively purchased seven to eight hundred thousand Pounds Sterling in British national debt. Even selling off half of it would have a significant impact on British finances.

While this would certainly offend Britain, France had previously elevated Denmark's international status with the International Maritime Convention. More recently, France had arranged for Prussia to return the occupied Schleswig-Holstein region to Denmark. Therefore, Frederick felt he absolutely had to help with this small favor.

Furthermore, if British bonds truly collapsed, selling some off early would also reduce losses.

Talleyrand glanced sidelong at the Danish Regent's expression, then feigned a look of difficulty. "Actually, if you are willing to do me a small favor, I can try to persuade Count Mirabeau to bypass all assessment procedures and establish the repair facility directly in Kiel."

Frederick's eyes lit up instantly. "Please tell me more."

"You see, the war between our nation and Russia has not yet concluded," Talleyrand stated. "I must do something to curb Russia, so I can report back to His Royal Highness the Crown Prince."

Frederick frowned and shook his head. "You know, our nation has a traditional friendship with Russia; it would be difficult to make a strategic shift."

Denmark needed Russia to balance the threat from its old rival, Sweden. In the previous Russo-Swedish War, the two nations had even formed an alliance.

Talleyrand quickly said, "Oh, you've misunderstood my meaning. I'm not asking you to sour relations with Russia. You only need to declare a ban on Russian merchant ships passing through the Øresund Strait. It won't be for too long; resuming navigation after two or three months would be fine."

The Øresund Strait, located east of Copenhagen, was a vital choke point connecting the Baltic Sea to the Atlantic Ocean. Most Russian goods sold to Western Europe were transported via the Baltic Sea.

Frederick immediately fell into an internal struggle.

The benefits of a steam engine repair facility were indeed immense, but blockading the Øresund Strait would seriously offend Russia. This was an incredibly difficult choice.

Talleyrand waited for a moment. Seeing that Frederick was slow to make a decision, he sighed and "compromised." "How about this: if you simply detain all Russian merchant ships scheduled to pass through the Strait in the Baltic Sea for one month, I will fulfill my promise."

This time, Frederick hesitated for only a few seconds before looking at the French Minister of Foreign Affairs. "While this will cause considerable trouble, if it can help you, I can try to find a way."

If it was merely a temporary detention of Russian ships, Denmark could find many excuses, such as needing to 're-examine the strait's transit fees' or 'combat smuggling vessels'. Afterward, they would just need to send someone to Saint Petersburg to explain.

Talleyrand immediately bowed with delight. "Thank you so much! At last, my performance review this year won't lack any highlights. Oh, I'll go straight to Count Mirabeau once I return to Paris."

Of course, his painstaking efforts to incite Denmark to detain Russian merchant ships were absolutely not for a performance review. Rather, it was to complete the "final box of ammunition" for His Royal Highness the Crown Prince's financial warfare against Britain.

Yes, Frederick had consistently focused on whether he would offend the Russians, but he had overlooked the fact that nearly every Russian merchant ship passing through the Baltic Sea carried goods destined for Britain.

Furthermore, raw materials such as timber, flax, oils, furs, and ropes were all extremely crucial for the British.

A shortage of raw materials would quickly drive up Britain's production costs, pushing commodity prices higher and consequently triggering inflation.

...

The North American continent.

Pittsburgh, 180 kilometers east of Ohio.

Inside a brick-red villa on Hunkton Estate, American Secretary of State Pickering clenched his fists under the table, yet maintained a facade of complete composure. "Baron, trade with Britain is our nation's financial lifeline, and we absolutely cannot accept its interruption."

Before the French Special Envoy of the Governor of Louisiana could say a word, Lucien Bonaparte, seated beside him, spoke first in a cold voice. "His Excellency the Earl of Baton Rouge would not object to personally leading troops to the ports of Boston and Richmond to supervise outgoing merchant ships."

The so-called "Earl of Baton Rouge" referred to Napoleon.

As a reward for his series of great victories in North America, Joseph had formally bestowed a noble title upon him—the Earl of Baton Rouge, located east of the Mississippi River. From now on, if Americans wished to cross the Mississippi River again, they would first have to conquer Mr. Bonaparte's territory.

Indeed, that would be a task of epic difficulty.

Concurrently, Joseph had promoted Napoleon to the rank of Brigadier General, placing him directly under the administration of the Governor of Louisiana to command the colonial army.

To allow Napoleon more energy to manage military affairs, the General Staff Headquarters had also dispatched his former aide-de-camp, his brother Lucien, to North America.

Samuel Dexter, the newly appointed American War Minister, immediately declared in a loud voice, "Then let them try!"

"Our militia was able to defeat the British back then, and we wouldn't mind letting the French taste our prowess as well..."

Pickering's expression changed dramatically, and he quickly restrained the outspoken general, offering a conciliatory smile. "Ahem, General Dexter means that America and France were also friends who fought side-by-side to drive out the British.

"You see, letting this war continue benefits no one, does it?"

Was it truly the American Continental Army that defeated the British back then?

They lost to the French Expeditionary Force!

Although the United States was now much stronger than when it was founded, Britain was currently being beaten extremely wretchedly on the European front, utterly unable to spare forces to reinforce America.

The United States alone genuinely lacked the confidence to take on Louisiana.

Furthermore, before coming to the negotiations, Pickering had thoroughly researched the opposing commander, Bonaparte, and knew full well that he was absolutely not an easy opponent. He had once been a peer to generals now renowned in Europe, such as Masséna and Moreau, having used inferior forces to crush a hundred thousand Austrian troops, leaving them utterly incapable of resistance.

Continuing to fight against such a man, even if America could hold its ground through numerical superiority, it would undoubtedly suffer immense losses.

Baron Lamothe, the Special Envoy of the Governor of Louisiana, smiled. "I thought you had forgotten who helped you drive out the British."

He exhaled, his expression haughty. "Alright, the benevolent Governor also doesn't wish to see Americans starve. So I will extend a bit more leniency: an annual export limit to Britain of 30,000 barrels of asphalt/pine resin, 10 million feet of timber, and 3 million pounds of cotton. Wheat is strictly forbidden for sale. Furthermore, sugar smuggling must be severely investigated."