Chapter 1426: Busy Holidays
Talleyrand quickly interjected:
"Your Highness, Naples has also sold over 6,000 tons of wheat to Britain.
As you know, the grain harvest along the Mediterranean coast was abundant this year, which would naturally drive down wheat prices.
The Ministry of Trade estimates that if Britain acquires an additional 26,000 tons of this affordable wheat, domestic bread prices there could drop by 7% to 9%."
Joseph turned his head to him. "Do you recall why we aimed to inflate Britain's food prices?"
"To force the British treasury to spend hundreds of thousands of pounds sterling on 'bread subsidies'."
"That's merely a secondary effect. Our primary goal is to drive up inflation in Britain," Joseph added. "Imported inflation."
Talleyrand looked puzzled. "But you seemed to imply earlier that we wouldn't stop Salem III from selling affordable wheat to the British?"
Joseph calmly nodded. "There's more than one way to fuel inflation, and directly targeting the pound sterling would be more effective."
"As long as Constantinople insists that the British pay in gold coins, we can achieve that effect."
Talleyrand blinked. Though he didn't fully grasp the underlying principle, if the Crown Prince said so, it must be correct.
He then looked troubled again. "Your Highness, the Ottoman Empire's finances are currently very tight. I fear it will be difficult to convince them to refuse pound sterling banknotes."
Without hesitation, Joseph outlined a financial attack strategy employed by a certain Western empire in later generations against smaller nations:
"First, we must use various channels to publicize the depreciation of the pound sterling. Then, rating agencies will downgrade the pound sterling banknotes."
Talleyrand appeared even more perplexed. "Your Highness, neither the Security Bureau nor the Ministry of Trade is likely to have precise information on the pound sterling's situation..."
Joseph mused for a moment, then stated, "Estimate it based on the price increases in London over recent years. Remember to find some renowned economists to write papers that are as technical as possible—the kind ordinary people won't understand.
Oh, and make sure to exclude subsidized goods like sugar and bread."
"Yes, Your Highness."
Joseph continued, "Secondly, I will have the Ministry of Trade release news that our nation is considering no longer accepting pound sterling banknotes in all trade with Britain.
Finally, you will send someone to Constantinople to discreetly reveal that the French Reserve Bank plans to acquire a batch of 'issue reserves,' and that the purchase price will be significantly higher than the market rate at that time."
These 'issue reserves' refer to the gold held by central banks in gold-standard nations to back the value of banknotes before they are issued. Central banks typically acquire additional gold in secret to avoid driving up its market price.
Given France's strong economic growth in recent years, it would be perfectly logical for the French Reserve Bank to introduce more banknotes into the market, and no one would doubt it.
Talleyrand immediately grasped the implication, nodding with a smile.
"I will help Mr. Ziyauddin clearly calculate just how much money they would lose if they accept pound sterling banknotes."
Yusuf Ziyauddin had just been appointed the Ottoman Grand Vizier late last year.
Joseph then instructed, "As for the Two Sicilies, if they also demand payment in gold from Britain, then we need not interfere. Otherwise, arrange to intercept their merchant ships in the Mediterranean."
"Yes, Your Highness."
As they spoke, the group arrived at the carriage waiting in the Marble Courtyard.
Not far away, Queen Marie, disguised as a guard, saw her son arrive and eagerly prepared to greet him. However, she watched as the Foreign Minister, Chief of the General Staff, and others boarded the Crown Prince's carriage without a moment's hesitation.
She pouted, muttering softly to her lady-in-waiting, who was also dressed in men's clothes:
"Don't these gentlemen know it's incredibly rude to disturb someone's holiday?"
The lady-in-waiting glanced at the high-ranking members of the Senate, too intimidated to respond, practically bowing her head to her chest.
Ah, the Countess of Debeninac was meant to remain at Versailles as a cover, so Queen Marie had to bring a "newcomer" with her this time.
Inside the Crown Prince's carriage, Berthier began his report:
"Your Highness, last month, the Ottoman and Persian armies achieved significant success near Tbilisi.
Currently, Mustafa has nearly encircled the southwestern side of Tbilisi. At this rate, they are very likely to capture it before the end of the year."
Joseph expressed some surprise. "Have the Russian forces encountered some issue?"
Estimating based on the Ottoman army's combat strength, even reaching Tbilisi by mid-next year would be swift for them. Joseph thus surmised that a shortage of Russian supplies or a similar problem had given them this opportune moment.
La Valette, who was beside him, interjected, "Your Highness, according to the intelligence we've gathered, Mustafa's corps gained their battlefield advantage using a large number of advanced heavy cannons.
However, recent reports from Mysore indicate that only one shipment of weapons and equipment we provided arrived in Mangalore.
Constantinople claims the other ship sank in the Gulf of Oman during a storm."
Joseph's expression immediately darkened. "The Security Bureau must verify this matter as quickly as possible.
Will Mysore's battle readiness be affected by this incident?"
La Valette explained, "Your Highness, after the Mysore army advanced south of Chitradurga, they encamped there.
Recently, infighting has erupted within the Maratha Confederacy, so Tipu Sultan might be waiting for them to wear themselves out before commencing battle."
Before Joseph could speak, Berthier frowned. "That doesn't sound like Tipu. He used to be a strong proponent of aggressive offense.
Currently, the East India Company's forces haven't fully assembled, making it the optimal time for operations. He should at least have captured Bellary by now."
Joseph instructed La Valette, "Please ascertain the situation in India as quickly as possible.
Additionally, send another shipment of weapons to Mysore. Ensure that the Ottoman transport ships are closely monitored."
At this point, Joseph's eyes narrowed. The Ottomans had recently sold affordable wheat to the British and now dared to 'appropriate' French aid supplies. They were truly getting a bit too bold.
'Perhaps it's time to stir things up in Egypt.'
"Yes, Your Highness," La Valette affirmed, then continued, "Your Highness, there's another matter. Due to Franz II's implementation of reform measures, our operations in Vienna have been severely weakened.
Specifically, organizations like the 'Constitutional Study Society' and 'Vienna Student Corps' have almost disbanded, and even the core membership of the Stieler Society has decreased by over 70%."
Joseph had only seen reports of Vienna's reforms previously, but without the details. He now nodded and stated:
"Please elaborate on their reform measures."
"Yes, Your Highness."
This time, it was Talleyrand who replied. As the Minister of Foreign Affairs, he had studied the matter in the greatest detail.
After speaking for over twenty minutes, Talleyrand finally concluded:
"Those are essentially the main points, Your Highness. It must be said that their measures concerning taxation, law, industry, serfdom, and other areas are quite comprehensive."
Comments